EPNG to Topock
Open Season Notice of Available Firm Capacity
on El Paso Natural Gas Company, L.L.C. (Transporter)
Bid Deadline – 2:00 PM Mountain Time (MT), April 26, 2021
Portable Document Format (.pdf) file of Open Season: https://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=EPNG&parent=1600
Due to the expiration of one or more existing Firm Transportation Service Agreements, Transporter is conducting a binding Open Season for capacity as outlined below.
Rate Schedule:
FT-1
Volume / Transportation Contract Demand (“TCD”):
See Bid Sheet
Primary Receipt Point(s):
PLAINS 302248
BLANCO 300714
IRYGULCH 43886
KEYSTONE 302132
Primary Delivery Point(s):
DSCALTOP 332503
DPG&ETOP 314604
Flow Path(s):
In this Open Season, Transporter will consider alternative primary receipt and/or delivery points (subject to available capacity) in conjunction with some or all of the flow path and primary receipt and/or delivery points. Parties that are interested in capacity at and from other primary receipt points or at and to other primary delivery points should contact their service representatives or any of the individuals listed below to determine capacity available.
Alternate Receipt Point(s) and/or Delivery Point(s):
The capacity offered in this Open Season will include the right to utilize the following points on an alternate basis at the same contracted rate:
Alternate Receipt Locations:
All receipt points within Transporter's San Juan, Anadarko and Permian
Production Areas (302347 STML SJN; 302344 STML ANA; and 302346STML
PER), 43886 IRYGULCH, 42235 IRXLVRCH, 36100 IGRSWDQP, 40237 IEXMBGRS, 41781 IDRKCNGR, 332569 DAGMOJ
Alternate Delivery Locations:
DSCALEHR 301016, INORBAJA 301693, 314604 DPG&ETOP, 332503 DSCALTOP, 314991 ICPSOUTH, 332554 KRAMER, 332531 SOCWR, 320614 IGRIFFTH, 301881 ITCOLBLA, 300716 BLANTRAN, 300726 BONDTRAN, 41781 IDRKCNGR, 42223 DYELJKPS, 42235 IRXLVRCH, 40379 DAHRCNYN, 36106 ITWBLANCO, 332569 DAGMOJ.
Recommended Term:
Transporter recommends that bids have a proposed term starting May 1, 2021, with no later starting date (although Transporter reserves the right to reject any bid which fails to comport with the provisions of this open season).
Open Season Start:
April 15, 2021 2:00PM Mountain Time
Open Season End:
April 26, 2021 2:00PM Mountain Time
Award Notification:
April 27, 2021 4:00PM Mountain Time
Bid Submittals:
To bid, complete the attached bid sheet and email it to KMWestBids@KinderMorgan.com. Transporter reserves the right to reject any bid which fails to comport with the provisions of this open season.
NOTE: Transporter will rely upon the time an emailed bid is received to determine whether a bid is timely. Bids that are received after the end date and time listed above (as determined by the time stamp on Transporter's email inbox) 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 (“EPNG to Topock”), 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.
Bids submitted in this Open Season will constitute a binding irrevocable offer by the bidding party 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.
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 rate.
There will be no contractual right of first refusal (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, Fuel and L&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 tariff rate, bids stated as the dollar equivalent of the current maximum tariff 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 or this open season.
Transporter also reserves the right to reject bids that do not reflect the same quantity for the duration of the term except as indicated in the Available Capacity table in the Bid Sheet below.
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.
Execution of FTSA:
Each successful bidder and Transporter shall enter into and execute an FTSA reflecting the terms of its bid as awarded by Transporter. All successful bidders shall execute and return the FTSA
within the earlier of the day before the first day of the term of firm transportation service in the bid as awarded by Transporter or twenty (20) business days following the day Transporter tenders
the FTSA to the bidder (“Execution Date”). If a successful bidder fails to fully execute and return the FTSA on or before the Execution Date, then Transporter reserves the 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 Transporter's FERC Gas Tariff. Transporter 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 Transporter.
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 0.2708% (which is the annual discount rate of 3.25% 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:
Cory Chalack (719) 520-3769
Damon McEnaney (719) 520-4472
John Driscoll (719) 520-4471
Randy Barton (719) 520-4667
Robin Janes (719) 667-7555
Thania Delgado (719) 520-4482
Evelyn Spencer (719) 520-4753
Open Season Bid Sheet
(See next page)
Open Season Binding Bid Sheet
**EPNG to Topock**
Email Bid To: KMWestBids@KinderMorgan.com
Legal Name of Bidder:
Name of Requesting Party:
Title of Requesting Party:
DUNS Number:
Phone:
B. Capacity Bid:
Rate Schedule (e.g., FT-1):
Requested Term Start Date:
Requested Term End Date:
Transportation Contract Demand (“TCD”): Dth/day
Will you accept an allocation of capacity if necessary Yes No
Available FT-1 Capacity Summary
(Quantities in Dth/day)
**Delivery location is Topock on all**
2021 Receipt
Path
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
SN2
47,913
50,000
NN1
242,000
107,450
145,000
TCD
2022 Forward Receipt
Jan
Feb
Mar
Apr
60,557
69,853
122,139
120,299
119,858
114,936
117,762
116,499
120,406
121,495
110,966
86,214
265,000
165,000
OPEN SEASON VOLUME BID
2021
Receipt
Delivery
Transportation Contract Demand
2022 forward
*The sum of the monthly Maximum Delivery Quantities at the Primary Delivery Location(s) must equal the monthly Transportation Contract Demand.
C. Reservation Rate (read carefully and select one):
Maximum Tariff Rate (i.e., the applicable maximum rate stated in Transporter's FERC Gas Tariff as that rate may change from time to time)
Discounted Rate: $ _____ per Dth per month or $ _____ per Dth per day (this rate is subject to the applicable maximum and minimum rates stated in Transporter's FERC Gas Tariff as those rates may change from time to time)
Negotiated Rate: $ _____ per Dth per month or $ _____ per Dth per day (this rate will be fixed and NOT subject to the applicable maximum or minimum rates stated in Transporter's FERC Gas Tariff as those rates may change from time to time)
Reservation rates bid as a daily rate (i.e., a rate per Dth per day) 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.
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, Fuel and L&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.
*By submitting this binding 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.
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