CAMPO REVERSAL OPEN SEASON NOTICE

COLORADO INTERSTATE GAS COMPANY, L.L.C.

Bid Deadline: April 21, 2025, at 2:00 p.m., Mountain Time (“MT”)

Portable Document Format (.pdf) file of Open Season:

https://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=CIG&parent=1600

CIG is conducting this Open Season for 80,000 dekatherms per day (“Dth/day”) of firm natural gas transportation service that will be available on its system from and after April 1, 2027. The capacity offered in this Open Season is currently subject to expiring Firm Transportation Service Agreements that do not include rights-of-first-refusal. Two capacity options are being offered in this Open Season. Both capacity options include the same primary points of receipt, including the Beaver (BEA) point of receipt and existing locations upstream of CIG's Cheyenne Compressor Station. The first capacity option will provide for deliveries to existing points of delivery downstream (excluding the Campo Lateral Pipeline) of CIG's Campo Yard (the “Option 1 Capacity”). The second capacity option will provide for deliveries to new and/or existing points of delivery located in path (via the Campo Lateral Pipeline and North Raton Lateral Pipeline) to or near CIG's Drennan Road Air Blending Facilities (the “Option 2 Capacity”). The Option 2 Capacity will be made available as a result of the installation and modification of certain auxiliary facilities on CIG's system that will allow gas to flow east-to-west on the Campo Lateral Pipeline, including (i) replacing or modifying certain valves located in CIG's Campo Regulator Station in Baca County, Colorado and Kim Compressor Station and Aguilar Meter Station in Las Animas County, Colorado, (ii) installing a back pressure valve near the intersection of the Campo Lateral Pipeline and CIG's Line 27A pipeline, and (iii) installing and implementing certain other system modifications to CIG's pipeline system as determined by CIG (the “Campo Facilities”).

The purpose of this Open Season is to solicit binding commitments for the capacity from shippers that are willing to commit to such firm transportation service under terms and conditions described below and in accordance with all applicable rules and regulations of the Federal Energy Regulatory Commission (“FERC”) and the terms of CIG's FERC Gas Tariff, Second Revised Volume No. 1 (the “Tariff”).

Option 1 Capacity: No Campo Facilities

Rate Schedule:	TF-1
Volume / Maximum Delivery Quantity (“MDQ”):	80,000 Dth/day
Primary Points of Receipt / Available Capacity (in Dth/day)	(KIN) King Meter Station (291665) / 15,000 Dth/day (ELK) WBI/CIG Elk Basin Park (800229) / 10,000 Dth/day (FLT) Flat Top Receipt RIO (892268) / 8,226 Dth/day (ANA) Anabuttes Receipt (892265) / 20,000 Dth/day (BEA) Beaver (800078) / 26,774 Dth/day
Primary Points of Delivery / Available Capacity (in Dth/day):	(FOR) Forgan Beaver (891044) / 30,000 Dth/day (BIG) Big Blue Moore (800089) / 10,000 Dth/day (BEA) Beaver (800078) / 13,226 Dth/day (TCS) Storage INJ/WTD (800715) / 26,774 Dth/day
Secondary Receipt and Delivery Points:	A successful bidder will have the right to utilize, on a secondary basis, all other receipt and/or delivery points as provided in the Tariff at the same applicable contracted rate, plus all applicable Surcharges, incrementally priced lateral charges, and/or third-party capacity charges as provided in the Tariff.
Recommended Rate:	Maximum Tariff Reservation Rate

Option 2 Capacity: With Campo Facilities

Rate Schedule:	TF-1
Volume / Maximum Delivery Quantity (“MDQ”):	80,000 Dth/day
Primary Points of Receipt / Available Capacity (in Dth/day)	(KIN) King Meter Station (291665) / 15,000 Dth/day (ELK) WBI/CIG Elk Basin Park (800229) / 10,000 Dth/day (FLT) Flat Top Receipt RIO (892268) / 8,226 Dth/day (ANA) Anabuttes Receipt (892265) / 20,000 Dth/day (BEA) Beaver (800078) / 26,774 Dth/day
Primary Points of Delivery / Available Capacity (in Dth/day):	New or existing points of delivery in path on Segments 208, 213, 234, 236, 238, and/or 240 Note: The capacity available at a point of delivery may vary depending on the meter, location, and other factors applicable to such point. Please contact your service representative or any of the individuals listed below for additional details. Gas delivered to points of delivery will be raw gas (i.e., non-air blended), and unless CIG and bidder otherwise agree in writing, bidder will be responsible for any air blending that may be necessary for its use of such delivered gas.
Secondary Receipt and Delivery Points:	A successful negotiated rate bidder will have the right to access, on a secondary basis, all other points of receipt and/or delivery as provided in the Tariff at the negotiated rate, plus all applicable Surcharges, incrementally priced lateral charges (excluding North Raton Lateral Reservation Charges), and/or third-party capacity charges as provided in the Tariff.
Recommended Rate and Term:	To economically justify CIG's capital investment in the Campo Facilities, CIG anticipates that it will require a fixed negotiated rate bid of not less than $11.5583 per Dth per month (which, for illustrative purposes, is equivalent to $0.38 per Dth on a daily basis)1 for quantities of 80,000 Dth/day during a minimum service term of not less than 15 years following the date the Campo Facilities are placed in-service. CIG anticipates the Campo Facilities will be in-service by April 1, 2027. Note: The recommended rate is lower than the combined maximum reservation rates stated in the Tariff for the applicable transportation path for the Option 2 Capacity (including the TF-1 Monthly Reservation Rate, the TF-1 Monthly North Raton Lateral Incremental Reservation Rate (Zone 1), and the TF-1 Monthly North Raton Lateral Incremental Reservation Rate (Zone 2)) (the “Combined Maximum Reservation Rate”), which is currently $17.6768 per Dth per month (which equates to $0.5812 per Dth on a daily basis).

Bidders that are interested in capacity at and from other primary points of receipt or at and to other primary points of delivery (subject to available capacity) should contact their service representatives or any of the individuals listed below.

General Open Season Requirements:

To bid, complete the attached bid sheet and e-mail it to KMWestBids@KinderMorgan.com on or before the Open Season End Date.

Open Season Start Date:         March 24, 2025, at 2:00 p.m. MT

Open Season End Date:          April 21, 2025, at 2:00 p.m. MT

Award Notification Deadline: May 1, 2025, at 4:00 p.m. MT

CIG will rely upon the time an e-mailed bid is received to determine whether a bid is timely. Bids that are received after the Open Season End Date (as determined by the time stamp on CIG's e-mail inbox) will be considered invalid bids and will not be eligible for an award of capacity in this Open Season. CIG recommends that bids be submitted well in advance of the Open Season End Date to minimize the risk that any e-mail delay could cause a bid to be excluded from consideration.

Bid sheets must include the bidder's name, the name of this Open Season (i.e., “Campo Reversal Open Season”), the terms of bidder's bid (i.e., capacity quantity, the term of service, and the rate bidder is willing to pay during the term). The bid rate must be presented as: (a) the reservation rate per Dth/month, (b) the reservation rate per Dth/day (which will be converted to a monthly rate by multiplying the daily rate times 365 and dividing the result by 12, rounded to the fourth decimal place), or (c) the maximum Tariff reservation rate(s). A bidder must select only one of the reservation rate options (per capacity option) provided in the form bid sheet.

By submitting a bid sheet, a bidder certifies that: (a) all information contained in its bid sheet is complete, true, and accurate in all respects; (b) it satisfies, or will be able to satisfy, all the requirements of the Tariff and as set forth in this Open Season; and (c) the person submitting the bid sheet has full authority to bind the bidder.

A bidder may have only one bid sheet pending for evaluation at a time in this Open Season. A submitted bid sheet for this Open Season, however, may be withdrawn by providing written notice of withdrawal to CIG prior to the Open Season End Date and using the same process as submitting bid sheets as described above. CIG will use the time and date stamp on CIG's e-mail box to determine a timely withdrawal. Once a submitted bid sheet is withdrawn, another subsequent bid sheet may be submitted by the same bidder if and only if the subsequent bid is at a higher present value (“PV”). Any subsequent bid with a PV equal to or lower than the withdrawn bid will be considered invalid.

Bids submitted in this Open Season on or before the Open Season End Date that have not been properly withdrawn or considered invalid will constitute a binding irrevocable offer by the bidder to contract for capacity. The award of the capacity in this Open Season will be an acceptance of the offer and the parties shall be contractually bound at that time.

In addition to the bid rate (whether a negotiated reservation rate or the maximum Tariff reservation rate), each successful bidder will pay the maximum applicable commodity charges contained in the Tariff and all ACA surcharges, fuel, lost and unaccounted-for gas retainage (“L&U”), and any other maximum rates, charges, and surcharges which are (a) approved by FERC in or pursuant to any subsequent fuel/L&U filing and/or (b) authorized by the Tariff from time to time (collectively, “Surcharges”). This includes incremental lateral charges and any third-party charges resulting from the use of capacity that CIG may hold on other pipelines.

Bids must provide that, subject at all times to FERC's approval of the particular costs, cost recovery mechanism(s), and manner of recovery in question, CIG shall be entitled to recovery of Greenhouse Gas Emissions Costs incurred by CIG attributable to natural gas transported for bidder. As used herein “Greenhouse Gas Emissions Costs” means (a) the cost of any carbon emissions tax or other greenhouse gas assessment that is imposed on CIG, and/or (b) the cost of any greenhouse gas mitigation efforts, including the costs of credits and offsets that CIG incurs to comply with any greenhouse gas laws, rules, or regulations.

CIG notes that FERC Order No. 894, in some cases, prohibits multiple affiliates of the same entity from bidding in an open season for capacity in which the pipeline may allocate capacity on a pro rata basis. The restrictions imposed by FERC Order No. 894 may be applicable in this Open Season and CIG recommends that potential bidders review and adhere to the requirements of that FERC Order.

 

Creditworthiness Requirements:

Successful bidder(s) of Option 2 Capacity must demonstrate and maintain throughout the term of the applicable FTSA satisfaction of the following creditworthiness requirements:

(a)        If a successful bidder is rated by Standard & Poor's Corporation (“S&P”) and/or Moody's Investor Service (“Moody's”), then such bidder shall be deemed creditworthy by CIG if: (i) such bidder's senior unsecured debt securities are rated at least BBB- by S&P or Baa3 by Moody's (in the event the bidder is rated differently by multiple agencies, the lowest rating shall be used in making such determination); and (ii) such bidder is not under review for possible downgrade by S&P and/or Moody's to a level below that set forth in the foregoing subpart (i).

(b)        If at any time during the term of the FTSA, the successful bidder's S&P or Moody's rating falls below the levels described in paragraph (a) above, or such bidder becomes unrated or otherwise fails to satisfy the requirements of paragraph (a) above, then for the time period bidder's ratings are below that level or bidder is unrated or is otherwise unable to satisfy the requirements of paragraph (a), such bidder shall satisfy its creditworthiness obligation by providing one of the forms of credit support described in paragraph (c) below. If such bidder subsequently becomes able to satisfy the S&P or Moody's rating levels described in paragraph (a) above, such bidder may immediately satisfy its creditworthiness obligations in the manner provided in paragraph (a).

(c)        If at the time of the execution of the FTSA, or at any time thereafter, a successful bidder is unable to satisfy its creditworthiness obligations in the manner set forth in paragraph (a) above, then such bidder shall satisfy its creditworthiness obligations by providing and maintaining, at its option: (i) an irrevocable, unconditional guarantee of its obligations under the FTSA, reasonably acceptable to CIG, and issued by another person or entity which satisfies the creditworthiness standards set forth in paragraph (a); or (ii) an irrevocable letter of credit from a bank reasonably acceptable to CIG, and in either case, in an amount equal to the anticipated monthly charges under the FTSA multiplied by the lesser of (A) 36 months and (B) the period of time remaining in the term of the FTSA.

(d)        To the extent evidence of a successful bidder's creditworthiness is not publicly available, upon reasonable request by CIG, such bidder shall promptly provide evidence to CIG of such bidder's creditworthiness, which CIG may share with its lenders or creditors or any nationally recognized rating agency that is then maintaining a rating of CIG's debt securities.

(e)        If any change in ratings or conditions requires a successful bidder to change how it demonstrates its satisfaction of its creditworthiness requirements, such bidder shall make that demonstration (including, if necessary, the provision of guarantee or letter of credit) within 15 Business Days of the change in ratings or conditions requiring the new demonstration of creditworthiness.

Successful bidders that fail to satisfy the creditworthiness requirements of this section within a reasonable time will have their capacity award withdrawn. CIG reserves the right to seek any and all permitted remedies as a result of the breach of the bid. CIG will treat any financial statements provided by bidders as confidential.

Execution of FTSA:

Each successful bidder and CIG shall enter into and execute a Firm Transportation Service Agreement (a “FTSA”) reflecting the terms of its bid as awarded by CIG. All successful bidders shall execute and return a FTSA within the earlier of the day before the first day of the term of firm transportation service in the bid as awarded by CIG or 30 days following the day CIG tenders the FTSA to the bidder (“Execution Date”); provided, that, CIG will not tender a FTSA to a bidder before the Management Date (defined below) if such bidder elects to condition its bid as provided in Section E of its bid sheet. If a successful bidder fails to fully execute and return the FTSA on or before the Execution Date, then CIG reserves the right to cancel the successful bidder's binding bid without prejudice as to CIG's right to seek any and all permitted remedies as a result of the successful bidder's failure to execute the FTSA. The FTSA will be in the form contained in the Tariff, and may include certain additional non-conforming provisions consistent with the requirements and conditions set forth in this Open Season related to creditworthiness and the construction of incremental facilities, if any, required to provide transportation service. CIG and any successful bidder may mutually agree to enter into and execute more than one FTSA that together reflect all the terms of the successful bid as awarded by CIG. Negotiated rate bidders will qualify for a one-time contractual right to extend the term for five years at the then applicable maximum reservation rate stated in the Tariff, as that rate may change from time to time, plus all applicable Surcharges.

Evaluation Criteria:

If CIG receives acceptable bids for capacity in excess of the actual amount of available capacity, then CIG will award and/or allocate the capacity in a manner that yields the highest total PV as calculated below. In determining which bid(s) yield the highest total PV, CIG reserves the right to combine multiple bids (including bids for both capacity options), in whole or in part, in a manner that results in a total PV of the combined bids that exceeds the highest PV achievable by accepting one or more of the disaggregated bids. This process could result in a bidder being awarded less capacity than requested (unless such bidder elects on its bid sheet not to accept an allocation of capacity) and/or a bidder being awarded only one of its selected capacity options (if such bidder bid on both capacity options).

The PV of a bid will be calculated as the sum of the present values for all of the months beginning with the first month capacity is available through the end date of the applicable bid term.

The PV for each month will be calculated as follows:

Where: R_n = the monthly reservation bid rate during month n

Q = the monthly bid volume

N = the total number of months during the bid term during which revenue will be received

i = the monthly discount rate of 0.6292% (which is the annual discount rate of 7.55% divided by 12)

n = with respect to a month during the bid term during which revenue will be received, the number of months from April 1, 2027 (such date being the earliest date the Capacity is expected to be available in this Open Season) (for example, n = 1 for April 2027, n = 2 for May 2027, and so on)

If CIG receives an acceptable negotiated rate bid for Option 2 Capacity and, pursuant to the Tariff and applicable FERC rules and regulations, CIG is required to calculate the PV of such bid using the maximum reservation rate stated in the Tariff (instead of the negotiated rate provided in such bid), then the rate used in the above PV calculation (i.e., R_n) for such bid will be the Combined Maximum Reservation Rate.

Delivery Pressures and Meter Stations:

Bidders requesting minimum pressure commitments at points of delivery should note that in their bid. As further provided in the Tariff, if construction of new facilities is required to provide service to a bidder under the applicable FTSA (“New Meter Facilities”), such bidder may be required to pay an additional incremental facility charge related to such facilities, which additional charge shall be set forth in the FTSA and/or the applicable interconnect agreement.

Additional Bid Conditions:

CIG will consider bids that are conditioned upon receipt of the approval of bidder's management, management committee, and/or board of directors or other appropriate management structure within 30 days after some or all of the Capacity is awarded to such bidder (such date, the “Management Date”).

Additional Reservations and Conditions:

Bids for some or all of the Option 2 Capacity at rates stated in the Tariff, including for the Combined Maximum Reservation Rate, may not provide sufficient economic justification for CIG's capital investment in the Campo Facilities. Accordingly, CIG reserves the right reject all bids received for the Option 2 Capacity in connection with this Open Season and cancel the proposed Campo Facilities if it does not receive adequate bids for quantities and terms that are necessary to economically justify a capital investment in the Campo Facilities.

CIG reserves the right to reject bids that are incomplete, contain offers of varying rates within the term, contain additional or modified terms, or contain terms that are inconsistent with the provisions of the Tariff or this Open Season. CIG also reserves the right to reject bids that do not reflect the same quantity for the duration of the term.

Construction of the Campo Facilities is subject to the appropriate management, management committee, and/or board of directors of CIG and/or its parent companies and CIG's timely receipt of all necessary regulatory approvals, permits, and other authorizations required for the construction and operation of the facilities, in form and substance satisfactory to CIG in its sole discretion.

CIG reserves the right to seek clarification of any bid (including, without limitation, the rate, quantity, term, or delivery point(s)) but shall not be required to do so. To be considered, any responding clarification by bidders must be provided in writing and within the time requested by CIG. Such clarifications shall be incorporated as part of the binding bid submitted by the bidder and, in the case of conflict with the earlier submitted binding bid, the timely submitted written clarification shall control.

Although this is a binding Open Season, CIG reserves the right, in its sole discretion, to consider requests received after the Open Season End Date, including requests to modify a bidder's validly submitted bid, but will be under no obligation to do so. Requests for capacity received after the Open Season End Date will be subject to the terms and conditions set forth in this Open Season.

CIG reserves the right to, upon notice at any time and in its sole discretion, terminate this Open Season, extend any date or time specified in this Open Season, amend or supplement the terms of this Open Season, or otherwise modify this Open Season. In addition, CIG reserves the right to reject any bid which fails to comport with the provisions of this Open Season in any respect.

Capitalized terms used and not otherwise defined herein shall have the meanings given to such terms in the Tariff.

Contact Information:

Questions concerning this Open Season should be directed to:

Tim Dorpinghaus         (719) 520-4245

Ken Ulrich                   (719) 520-3712

Beth Gerber                  (719) 520-4856

 

Open Season Bid Sheet Follows

 

OPEN SEASON BINDING BID SHEET

** CAMPO REVERSAL OPEN SEASON**

Email Bid To: KMWestBids@KinderMorgan.com

1. Shipper Information:

Legal Name of Shipper:                                                                 

Name of Requesting Party:                                                             

Title of Requesting Party:                                                               

DUNS Number:                                                                             

Address:                                                                                        

Phone:                                                                                           

2. Capacity Bid (Rate Schedule TF-1): (Shipper may select one or both Options)                        

¹ A Requested Term Start Date shall not be earlier than April 1, 2027.

² A “Negotiated Rate” is a fixed rate that is not subject to the applicable maximum or minimum rates stated in Colorado Interstate Gas Company, L.L.C.'s (“CIG”) Federal Energy Regulatory Commission Gas Tariff, Second Revised Volume No. 1 (the “Tariff”), as such rates may change from time to time.

³ A daily Negotiated Rate will be converted to a monthly rate by multiplying the daily rate times 365 and dividing the result by 12, rounded to the fourth decimal place.

⁴ The “Maximum Tariff Rate” is the applicable maximum reservation rate stated in the Tariff, as such rate may change from time to time. If a transportation path includes multiple applicable maximum reservation rates, the Maximum Tariff Rates will be the sum of the applicable maximum reservation rates stated in the Tariff for such path, as such rates may change from time to time.

⁵ The sum of Shipper's Option 1 Capacity MDQ and Option 2 Capacity MDQ should not exceed 80,000 Dth/day.

⁶ By accepting an allocation of capacity, Shipper understands that it may be awarded only a portion of the specified MDQ.

C.                              Points of Receipt and Delivery:

¹ The sum of Shipper's points of receipt quantities should not exceed 80,000 Dth/day.

 

 

¹ The sum of Shipper's points of delivery quantities for Option 1 Capacity must equal the associated MDQ specified above. The sum of Shipper's points of delivery quantities for Option 1 Capacity and Option 2 Capacity (below) should not exceed 80,000 Dth/day.

² Specifying a minimum pressure at a point of delivery may result in the applicable FTSA including a condition that transportation service is subject to the construction of New Meter Facilities as further provided in the Campo Reversal Open Season Notice.

¹ Shipper should list new or existing point(s) of delivery in path on Segments 208, 213, 234, 236, 238, and/or 240. If Shipper lists a new point of delivery, the FTSA for the Option 2 Capacity will include a condition that service is subject to the construction of New Meter Facilities as further provided in the Campo Reversal Open Season Notice.

² The capacity available at a point of delivery may vary depending on the meter, location, and other factors applicable to such point. Please contact your service representative or any of the individuals listed in the Open Season for additional details.

³ The sum of Shipper's points of delivery quantities for Option 2 Capacity must equal the associated MDQ specified above. The sum of Shipper's points of delivery quantities for Option 1 Capacity (above) and Option 2 Capacity should not exceed 80,000 Dth/day.

⁴ Specifying a minimum pressure at a point of delivery may result in the applicable FTSA including a condition that service is subject to the construction of New Meter Facilities as further provided in the Campo Reversal Open Season Notice.

D.                             Applicability of Commodity and Other Charges:

In addition to the bid rate, Shipper will pay the maximum applicable commodity charges contained in the Tariff and all ACA surcharges, fuel, lost and unaccounted-for gas retainage (“L&U”), and any other surcharges which are (i) approved by FERC in or pursuant to any subsequent fuel/L&U filing and/or (ii) authorized by the Tariff from time to time. This includes incremental lateral charges and any third-party charges resulting from the use of capacity that CIG may hold on other pipelines.

Furthermore, subject at all times to FERC's approval of the particular costs, cost recovery mechanism(s), and manner of recovery in question, CIG shall be entitled to recovery of Greenhouse Gas Emissions Costs incurred by CIG attributable to natural gas transported for Shipper. As used herein “Greenhouse Gas Emissions Costs” means (i) the cost of any carbon emissions tax or other greenhouse gas assessment that is imposed on CIG, and/or (ii) the cost of any greenhouse gas mitigation efforts, including the costs of credits and offsets that CIG incurs to comply with any greenhouse gas laws, rules, or regulations.

E.                              Condition to Bid: (Check only if applicable)

Shipper's bid will be subject to receipt of the approval of Shipper's management, management committee, and/or board of directors or other appropriate management structure within 30 days after capacity is awarded to Shipper. Any bid that is made subject to such a condition will be rejected if written evidence of the receipt of such approval is not provided to CIG within such 30-day period.

By submitting this binding bid to CIG, Shipper certifies that (a) all information contained in the request is complete and accurate, (b) it satisfies, or will be able to satisfy, all the requirements of the Tariff and as set forth in the Campo Reversal Open Season Notice, and (c) the person submitting the bid has full authority to bind Shipper.