DATE: February 4, 2021 TIME:
8:00 AM CT
TO: ALL KINDER MORGAN LOUISIANA PIPELINE LLC CUSTOMERS
RE: OPEN SEASON FOR INTERIM CAPACITY (“OPEN SEASON”)
(OPEN SEASON #106)
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 (as it may be in effect from time to time, the “Tariff”),
commencing at 8:00 AM CT, February 4, 2021, and ending at 4:00 PM CT, February
4, 2021 (the “Open Season Period”). Unless otherwise indicated, all
capitalized terms that are used but not defined herein shall have the meanings
ascribed to such terms in the Tariff.
The capacity offered in this Open Season
is the subject of a prearranged deal. Therefore, the customer under the
prearranged deal (the “Prearranged Shipper”) has the right to match the highest
net present value (“NPV”) bid(s) received in this Open Season.
April 1, 2021 to April 30, 2021
This capacity is operationally available for the specified interim time period
above and cannot be extended beyond such time period.
Primary Receipt Point(s):
PIN 44403 – Egan Hub/KMLP Acadia
Primary Delivery Point(s):
PIN 45093 – Targa/KMLP TFS
Secondary Receipt Point(s) at
which the Rates
specified below apply:
PIN 44404 – Pine Pra/KMLP Acadia
Secondary Delivery Point(s) at
which the Rates
Monthly Reservation Rate:
Commodity Rate for Primary
*Applicable to Firm Transportation
Service utilizing the Sabine Pass Expansion Capacity under Rate Schedule FTS.
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, for Shippers utilizing the North to South
Without limiting or waiving any other rights that KMLP may
have with respect to this Open Season, KMLP reserves the following rights:
At any time during this Open Season, upon notice and in its sole
discretion, and in accordance with any applicable requirements set forth in the
Tariff, to terminate this Open Season, to extend the Open Season Period, or to
modify this Open Season.
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.
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 this 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.
To reject any bid that does not specify capacity within the path posted
To award capacity to mutually agreeable alternate receipt or delivery
points if capacity is available at alternate meter locations.
To accept negotiated rate bids.
To reject contingent bids.
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 pressures in resulting FTS agreements.
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 #106.
Available capacity volumes are
contingent upon mainline and meter capacity. Bids cannot exceed the stated
Parties interested in this capacity should submit a binding
Firm Transportation request through the DART system or submit a binding bid to TGPBidroom@kindermorgan.com. In accordance with Section
2.1(b)(5) of the General Terms and Conditions of the Tariff, any Shipper
wishing to bid in an open season must satisfy the creditworthiness requirements
in Section 12 of the General Terms and Conditions of the 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 Point(s) and Primary Delivery Point(s). The
bid form must be signed by an officer of the company. Confirm KMLP's receipt of
any bid by contacting Caitlin Harris at 713-420-2915 between 8 A.M. and 5:00 P.M.
CST on any business day during the Open Season Period.
All bids submitted during the Open Season
may be withdrawn and replaced with a higher NPV bid during the Open Season Period.
Bids cannot be withdrawn and replaced with lower NPV bids absent a material
error in the withdrawn bid. Upon completion of this Open Season, all remaining
bids will be considered binding until a successful bid(s) has been awarded.
The prearranged deal and all of its
terms and conditions are subject to KMLP's Tariff 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 Prearranged 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 proposal(s) set forth above. Bids for less than the
minimum contract terms will be rejected.
In the event that, in this Open Season, a potential shipper submits
a competitive bid(s) with a higher NPV/Dth than the Prearranged Deal in total
but for a lower volume than what was specified in the Prearranged Deal, the Prearranged
Shipper, if electing to match, shall be required to match that lower volume,
higher NPV/Dth bid. The remaining volume of the Prearranged Deal that was not
bid on in this Open Season shall be contracted for according to the terms of
the Prearranged Deal.
All final bids for each proposal
received during this Open Season will be evaluated on an NPV basis using the
NPV/Dth = En [R*(1 / (1+i)**n)] / Dth
En = summation
of months 1 through n (Sigma)
n = term in
R = incremental
Dth = MDQ of
I = monthly discount factor of 0.8333%
with Section 30.2 of the General Terms and Conditions of the 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
Name Caitlin Harris
Phone Number 713-420-2915
SHIPPER'S LEGAL NAME (as it will
appear on FTS Agreement):
TERM (Begin and End Dates):
MONTHLY RESERVATION RATE (per Dth): ________________________________
PRIMARY RECEIPT POINT(S): ________________________
PRIMARY DELIVERY POINT(S): ________________________
OTHER TERMS/CONDITIONS REQUESTED FOR