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TSP/TSP Name:  809611911-KM LOUISIANA PIPELINE Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  11/14/2018 9:00:03AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  11/14/2018 9:00:03 AM Notice ID: 39314
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Notice Text:

DATE:  November 14, 2018                                                               TIME: 9:00 AM CST



Open Season Timeline

Kinder Morgan Louisiana Pipeline LLC (“KMLP”) is holding this Open Season for capacity available for an interim period in accordance with Section 2.1(b)(7) of the General Terms and Conditions of its FERC Gas Tariff, commencing at 9:00 AM CST, November 14, 2018, and ending at 2:00 PM CST, November 19, 2018  (the “Open Season Period”). The capacity offered in this Open Season is the subject of a pre-arranged deal.  Therefore, the customer under the pre-arranged deal (the “Pre-Arranged Shipper”) has the right to match the highest net present value (“NPV”) bid(s) received in this open season.


Proposed Contract Terms

Rate Schedule:


Maximum Daily Quantity (“MDQ”)

Up to 145,000 Dth/d

KMLP will reject bids with quantities that vary during the term of the bid.




December 1, 2018*, through January 31, 2022

*The capacity start date will commence with the in-service date of the SPL Expansion Project (Docket No. CP 17-22), which is anticipated to be December 1, 2018.

*This capacity is available for an interim time period based on the future development of Compressor Station 760. In accordance with Section 2.1.(b)(7) of KMLP's FERC Gas Tariff, KMLP shall limit the rights of the Shipper awarded the capacity to the interim time period, so that the Shipper has no rollover rights or rights of first refusal which extend beyond the interim time period.


KMLP will reject bids with a commencement date prior to December 1, 2018, or a termination date later than January 31, 2022.

Primary Receipt Point:


PIN 44395 – ANR Acadia and/or

PIN 41392 – Texas Gas and/or

PIN 44404 – Pine Prairie


Bids can select one or a combination of these PINS in the Bid Form


KMLP will specify minimum receipt point pressure in resulting FTS agreements.

Primary Delivery Point(s):


Mutually Agreeable delivery meter(s) in Segments 140 to 100 and 200.


Monthly Reservation Rate:


KMLP will accept bids at less than the maximum Base Monthly Reservation Cost per Dth as specified in KMLP's Tariff.


Commodity Rate:


$0.0015 per Dth


Other Charges


Shipper shall also pay ACA, applicable Fuel and Unaccounted For Gas charges, and all other applicable charges, surcharges, and penalties specified in KMLP's Tariff, as may be in effect from time to time.



Without limiting or waiving any other rights that KMLP may have with respect to this Open Season, KMLP reserves the following rights:

1.            At any time during this Open Season, upon notice and in its sole discretion, to terminate this Open Season, to extend the Open Season Period, or to modify this Open Season.

2.            To clarify and finalize bids containing non-specific and/or ambiguous bid information (including, without limitation, rate, term, and receipt or delivery points) or discrepancies in bid information, provided that KMLP shall have no obligation to do so.

3.            On a not unduly discriminatory basis, to reject any bid or service request that, in KMLP's sole determination, is incomplete, is inconsistent with the terms of this Open Season, contains additions or modifications to the terms of the open season, is otherwise deficient in any respect (including failure to provide credit support as KMLP deems necessary), or requests service outside the scope of this Open Season.

4.            To reject any bid that does not specify capacity within the path posted above.

5.            To award capacity to mutually agreeable alternate receipt or delivery points if capacity is available at alternate meter locations.

6.            To accept negotiated rate bids. 


7.            To reject contingent bids.

8.            To reject bids that do not meet Receipt Point Pressure requirements pursuant to Section 18.1 of the General Terms and Conditions of KMLP's Tariff. KMLP will specify minimum receipt point pressure in resulting FTS agreements.

Submission of Bids

This Open Season is for capacity available for the receipt/delivery point paths specified above. In order to be considered eligible to be awarded capacity following this Open Season, potential shippers must submit a bid that specifies terms, volumes, receipt points and delivery points that are consistent with the respective dates, quantities and associated receipt and delivery zones outlined above.  All Bids should refer to Open Season #101.


Available capacity volumes are contingent upon mainline and meter capacity. Bids cannot exceed the stated maximum volumes.


Parties interested in this capacity should submit a binding Firm Transportation request through the DART system or submit a binding bid to  In accordance with Section 2.1(b)(5), any Shipper wishing to bid in an open season must satisfy the creditworthiness requirements in Section 12 of KMLP's tariff prior to submitting a bid. A bid form must include at a minimum the following information: 1) Company's legal name as it will appear on the FTS Agreement; 2) MDQ; 3) the term including the start and end dates; 4) monthly reservation rate per Dth and 5) Primary Receipt(s) and Primary Delivery Point(s).  Confirm KMLP's receipt of any bid by contacting Stuart Neck at 713-420-2230 between 8 A.M. and 4:30 P.M. CST during the Open Season Period.

All bids submitted during the Open Season may be replaced with a higher Net Present Value (“NPV”) bid during the Open Season Period.  Bids cannot be replaced with lower NPV bids.  Upon completion of this Open Season, all remaining bids will be considered binding until a successful bid(s) has been awarded.


The pre-arranged deal and all of its terms and conditions are subject to KMLP's Tariff, as amended from time to time, and to all valid and applicable laws, orders, directives, rules, and regulations of duly constituted authorities having jurisdiction.  In accordance with Section 2.1 of the General Terms and Conditions of KMLP's Tariff, KMLP is posting this Open Season for competitive bidding as provided, and the Pre-Arranged Shipper shall have a one-time right within 2 business days of notification to match any bids with a higher NPV in order to obtain the capacity.


The above-specified Contract Terms represent the minimum Contract Terms that KMLP is willing to accept for the capacity underlying the respective Proposal.  Bids for less than the minimum Contract Terms will be rejected.


In the event that in the Open Season, a customer submits a competitive bid(s) with a higher NPV/Dth than the Pre-Arranged Deal in total but for a lower volume than what was specified in the Pre-Arranged Deal, the Pre-Arranged Shipper, if electing to match, shall be required to match that lower volume, higher NPV/Dth bid. The remaining volume of the Pre-Arranged Deal that was not bid on in the Open Season shall be contracted for according to the terms of the Pre-Arranged Deal.

Evaluation Method

All final bids for each Proposal received during the open season will be evaluated on an NPV basis using the following factors:

NPV/Dth = En [R*(1 / (1+i)**n)] / Dth

En = Summation of months 1 through n (Sigma)

n = term in months

R = Incremental monthly revenue

Dth = TQ of Contract

i = Monthly Discount Factor of 0.8333%


In accordance with Section 30.2 of KMLP's Tariff, to the extent the revenue level pursuant to any negotiated rate bid exceeds the revenue level at the recourse rate, the bidder bidding such negotiated rate shall be treated, for capacity award purposes, as if the rate paid is equal to the recourse rate.


For further information, please contact:

Name  Stuart Neck     713-420-2230





SHIPPER'S LEGAL NAME (as it will appear on FTS Agreement): 





REQUESTED MDQ: ___________________________________________________



TERM (Begin and End Dates): ___________________________________________



MONTHLY RESERVATION RATE (per Dth): ________________________________


PRIMARY RECEIPT POINT(S):   ________________________     



PRIMARY DELIVERY POINT(S):            ________________________