DATE: July 6, 2021 TIME: 9:00 AM CT
TO: ALL KINDER MORGAN LOUISIANA PIPELINE LLC CUSTOMERS
RE: OPEN SEASON FOR CAPACITY (“OPEN SEASON”) (OPEN SEASON #107)
Kinder Morgan Louisiana Pipeline LLC (“KMLP”) is holding this Open Season for capacity available in accordance with all applicable provisions of Section 2.1(b)(2) 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 9:00 AM CT, July 6, 2021, and ending at 2:00 PM CT, July 6, 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.
Rate Schedule:
FTS
Maximum Daily Quantity (“MDQ”):
Up to 95,000 Dth/d
Term:
Beginning on the later of (a) November 1, 2021 or (b) the date on which all of the facilities necessary to provide service under KMLP's Acadiana Expansion Project are placed in-service (the “In-Service Date”) and ending on March 31, 2022.
KMLP reserves the right to reject bids with a start date prior to the In-Service Date or an end date later than March 31, 2022.
Primary Receipt Point(s):
PIN 44392 – Tex Gas/ KMLP Acadia (45,000 Dth/d)
PIN 44404 – Pine Pra/KMLP Acadia (50,000 Dth/d)
Primary Delivery Point(s):
PIN 49448 – SPLIQ/KMLP SP Liquefaction Cameron
Secondary Receipt Point(s) at
which the rates
specified below apply:
All secondary receipt points allowed under KMLP's Tariff.
Secondary Delivery Point(s) at
All secondary delivery points allowed under KMLP's Tariff.
Monthly Reservation Rate:
The pre-arranged deal is for $3.02/Dth
Commodity Rate for Primary
and Secondary
Deliveries:
$0.0015/Dth*
*Applicable to Firm Transportation Service utilizing the Acadiana Expansion Capacity under Rate Schedule FTS.
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, for Shippers utilizing the North to South Transportation Path.
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, 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.
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 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.
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 or reject 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 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, a potential shipper 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 #107.
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 TGPBidroom@kindermorgan.com. Any Shipper wishing to bid in this 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. A bidder may confirm KMLP's receipt of its bid by contacting Caitlin Harris at 713-420-2915 between 8 A.M. and 5:00 P.M. CST during the Open Season Period.
Any bid submitted during this 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 any applicable provisions of KMLP's Tariff and to all valid and applicable laws, orders, directives, rules, and regulations of duly constituted authorities having jurisdiction. In accordance with any applicable provisions of Section 2.1 of the General Terms and Conditions of KMLP's Tariff, KMLP is posting this Open Season for competitive bidding, 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 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 = MDQ of Contract
I = monthly discount factor of 0.8333%
In accordance with any applicable provisions of 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 recourse rate.
Name Caitlin Harris
Phone Number 713-420-2915
E-mail Caitlin_Harris@kindermorgan.com
BID FORM
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): ________________________
OTHER TERMS/CONDITIONS REQUESTED FOR BID EVALUATION:
Name:
Title: ___________
Date: ______________________________________