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TSP/TSP Name:  8001703-EL PASO NATURAL GAS CO. LLC Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  06/10/2019 11:35:56AM Notice End Date/Time:  06/25/2019 9:00:00AM
Post Date:  6/10/2019 11:35:56 AM Notice ID: 605594
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  EPNG Benedum to Waha and Keystone O.S.
Notice Text:
Open Season

Open Season Notice of Available Firm Capacity on El Paso Natural Gas Company, L.L.C. (Transporter): Benedum Area to Waha and Keystone

Bid Deadline – 2:00 PM Mountain Time, June 24th, 2019

Portable Document Format (.pdf) file of Open Season: https://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=EPNG&parent=1600

Transporter is conducting a binding Open Season for existing available capacity as outlined below:

Rate Schedule:

FT-1

Volume / TCD:

Varying

Primary Receipt Point(s):

EPNG Benedum area receipts in the Permian Basin

Primary Delivery Point(s):

WAHATRAN – See attached capacity

 

KEYTRAN – See attached capacity

Parties that are interested in capacity from other primary points of receipt or to other primary points of delivery, or for other periods, are encouraged to contact their service representatives or any of the individuals listed below.

Recommended Term:

Transporter does not have a recommended term for this Open Season.  The capacity is available September 1, 2019. 

Open Season Start:

                          End:

Award Notification Date:

11:00 AM MT, June 10, 2019

2:00 PM MT, June 24, 2019

4:00 PM MT, June 26, 2019  

Email attached Bid Sheet to KMWestBids@KinderMorgan.com

NOTE:  Transporter will rely upon the time the bid is received to determine whether the bid was timely.  Bids that are received (as determined by the time stamp on Transporter's email inbox) after the end date and time listed above will be considered invalid bids and will not be eligible for an award of capacity in this Open Season.  Transporter recommends that bids be submitted well in advance of the closing time listed above to minimize the risk that any email delay could cause a bid to be excluded from consideration.

General Open Season Requirements:

Bids must include the bidding party's name, Open Season Name, quantity, term, and rate.

 

By submitting a bid, the bidding party certifies that:

(a) All information contained in the bid is complete and accurate.

(b) It satisfies, or will be able to satisfy, all the requirements of Transporter's FERC Gas Tariff.

(c) The person submitting the bid has full authority to bind the bidding party.

 

The bid rate must be presented as: 1) the reservation rate per Dth/month, 2) the reservation rate per Dth/day (which will be converted to a Dth/month rate for the Firm Transportation Service Agreement (FTSA) by rounding to the fourth decimal the result of the formula (daily rate x 365)/12), or (c) the maximum tariff rate.

 

There will be no contractual ROFR offered with this capacity.

 

In addition to the bid rate, each bidding party shall be subject to the applicable maximum usage rate and maximum usage surcharges, all other maximum rates, charges and surcharges, including ACA, FL&U, and any other authorized surcharges assessed under the applicable Rate Schedule of Transporter's FERC Gas Tariff as may change from time to time.  This includes incremental lateral charges and any third party charges resulting from the use of capacity that Transporter may hold on other pipelines.

 

Transporter reserves the right to reject negotiated rate bids, bids that have rates less than the maximum recourse rate, bids stated as the dollar equivalent of the current maximum recourse rate, bids that are incomplete, contain offers of varying rates within the term, contain additional or modified terms or are inconsistent with the provisions of Transporter's FERC Gas Tariff.  

 

Transporter also reserves the right to seek clarification of bids that have what appears to be an obvious error.  Any clarification by bidders must be provided in writing and within the time requested by Transporter.  Such clarifications shall be incorporated as part of the binding bid submitted by the bidder.

 

Transporter 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.  It appears to Transporter that the restrictions imposed by FERC Order No. 894 will be applicable in this Open Season and FERC recommends that potential bidders review and adhere to the requirements of that FERC Order.

 

Creditworthiness Requirements:

 

The successful bidder(s) must satisfy the creditworthiness requirements of Transporter's FERC Gas Tariff.  Bidders that fail to satisfy such creditworthiness requirements within a reasonable time will have their capacity award withdrawn.  Transporter will treat the financial statements provided by bidders as confidential.

 

Each successful bidder and Transporter shall enter into and execute an FTSA reflecting the terms of its bid as awarded by Transporter.  The FTSA will be in the form contained in Transporter's FERC Gas Tariff.

 

Evaluation Criteria:

 

If Transporter receives acceptable bids for capacity in excess of the actual amount of available capacity, then Transporter 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, Transporter reserves the right to combine multiple bids, 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).

 

PV 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 bid term.

 

The PV for each month will be calculated as follows:

 

PV = (R X Q)/((1+i) to the power of n)

Where:

R = the monthly reservation bid rate

Q = the monthly bid quantity

i = the monthly discount rate of 0.4542% (which is the annual discount rate of 5.45% divided by 12).

n = the number of months from the earliest date the capacity is available in the Open Season to the month the revenue will be received (the first month capacity is available n = 1, the second month n = 2, and so on).

 

Contact Information:

 

Questions concerning this Open Season should be directed to:

 

Randy Barton            (719) 520-4667

Thania Delgado         (719) 520-4482

Mark Iverson             (719) 520-4587

Robin Janes              (719) 667-7555

Damon McEnaney     (719) 520-4472

Dan Tygret                  (719) 520-3765

John Driscoll               (719) 520-4471

Cory Chalack              (719) 520-3769



Open Season Bid Sheet

(See next page)

Open Season Bid Sheet

Benedum to Waha and Keystone Open Season

Form of Service (e.g. FT-1):__________

Email Bid To: KMWestBids@KinderMorgan.com

A.   Shipper Information:

                        Legal Name of Bidder:__________________________

                        Name of Requesting Party:_______________________

                        Title of Requesting Party:________________________

                        DUNS Number:________________________________­

                        Phone:_______________________________________

B.   Capacity Bid:

 

Requested Term Start Date:                              

 

Requested Term End Date:                               

 

TCD:_____________ Dth/day

 

         Will you accept an allocation of capacity if necessary              Yes               No

Available Capacity

2019

Primary

Receipt

Primary

Delivery

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Benedum area

KEYTRAN

 

 

 

 

 

 

 

 

1,000

3,000

45,000

30,000

Benedum area

WAHATRAN

 

 

 

 

 

 

 

 

 

 

17,000

34,000

Total

 

 

 

 

 

 

 

 

 

1,000

3,000

62,000

64,000

 

2020

Primary

Receipt

Primary

Delivery

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Benedum area

KEYTRAN

75,000

94,000

93,000

91,000

89,000

87,000

62,000

58,000

60,000

78,000

87,000

71,000

Benedum area

WAHATRAN

37,000

18,000

17,000

20,000

19,000

19,000

19,000

19,000

19,000

20,000

17,000

34,000

Total

 

112,000

112,000

110,000

111,000

108,000

106,000

81,000

77,000

79,000

98,000

104,000

105,000

 


 

2021 Forward

Primary

Receipt

Primary

Delivery

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Benedum area

KEYTRAN

80,000

99,000

97,000

91,000

72,000

75,000

75,000

71,000

72,000

91,000

99,000

83,000

Benedum area

WAHATRAN

27,000

21,000

20,000

20,000

19,000

19,000

19,000

19,000

19,000

20,000

20,000

37,000

Total

 

107,000

120,000

117,000

111,000

91,000

94,000

94,000

110,000

91,000

111,000

119,000

120,000

Capacity Bid Sheet

 

2019

Primary

Receipt

Primary

Delivery

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

Primary

Receipt

Primary

Delivery

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021 Forward

Primary

Receipt

Primary

Delivery

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

*The sum of the MDQs at the Primary Delivery Location(s) must equal the TCD.

C. Reservation Rate (select one):

  Maximum Recourse Rate

 

  Discounted Recourse Rate:  $ ________ per Dth per Month/Day

 

  Negotiated Rate:  $ ________ per Dth per Month/Day

 

In addition to the bid rate, successful bidders will be subject to the applicable maximum usage rate and  maximum usage surcharges, all other maximum rates, charges and surcharges, including ACA, FL&U, and any other authorized surcharges assessed under the applicable Rate Schedule of Transporter's FERC Gas Tariff as those amounts may change from time to time. This includes incremental lateral charges and any third party charges resulting from the use of capacity that Transporter may hold on other pipelines.

 

*By submitting a bid to Transporter, the bidding party 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 Transporter's FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party.