MIDCONTINENT EXPRESS PIPELINE LLC
FTS TRANSPORTATION
ADDITIONAL OPEN SEASON – AOS 04-23-2021
In this Additional Open Season (AOS), MEP is soliciting bids for firm transportation capacity pursuant to Section 2.1(b)(1) of the General Terms and Conditions of MEP's Tariff.
CAPACITY AVAILABLE (Dth/day) Effective June 1, 2021
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Capacity is available on two paths up to a maximum daily quantity (MDQ) in the following segments:
Path One:
Leased Capacity
20,000 dth/d of firm receipt capacity in the capacity MEP leases on Enable Oklahoma Intrastate Transmission, LLC ("Leased Capacity") from the tailgate of the Rose Valley/Waynoka plant (LOC 44601 and/or LOC 47607).
Zone 1 and Zone 2
20,000 dth/d of firm delivery capacity through all segments in Zones 1 and to, as far East as TRANSCO/MEP (LOC 44451).
Path Two:
Zones One and Two:
22,500 dth/d of firm receipt capacity from Bennington Receipt Points (LOC 44438, 50502 and/or 44606) in Zone 1 through all segments in Zones 1 and 2 as far East as TRANSCO/MEP (LOC 44451). Within this path, Bidders can also request firm receipt point capacity in Zones 1 or 2 other than from Atlanta (LOC 44602), and firm delivery point capacity in Zones 1 or 2 other than to Destin (LOC 44450).
Bids may be submitted for all or part of the MDQ set forth above, subject to the Leased Capacity shaping requirement applicable to Path One, described below; however, the MDQ cannot vary during the contract term. Any bids with contingencies will be rejected.
AVAILABLE TERM: June 1, 2021 – October 31, 2021 or June 1, 2021 – March 31, 2022. This capacity shall not have any contractual rollover rights or right of first refusal at the end of the contract term. Bids may be submitted for all or part of this capacity but any bid submitted for any term other than the Available Term will be rejected.
LEASED CAPACITY SHAPING REQUIREMENT
A bidder desiring to bid on Leased Capacity is required to bid for aggregate point and segment capacity in the following ratios:
Leased Capacity: Receipt Zone - Required Ratio: 100%
MEP Zone 1: Delivery Zone - Required Ratio: 100%
MEP Zone 2: Delivery Zone - Required Ratio: 100%
In other words, bids on Leased Capacity must be for the same quantity across the Leased Capacity, Zone 1 and Zone 2 to be valid.
BID DEADLINE: Bids must be received by MEP by 2:00 p.m. Central Clock Time on May 10, 2021, via submission to the following email address:
Email: FTServiceRequest@kindermorgan.com
DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 4.47%, discounted to June 1, 2021, which shall be the Discount Date as that term is used in this posting.
BID REQUIREMENTS AND AOS TERMS AND CONDITIONS
1. BID RATE SECONDARY RECEIPT/DELIVERY POINTS
For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum reservation rate set forth in MEP's tariff, the bid reservation rate will apply to all secondary receipt and delivery points in the zones traversed by the primary path.
2. BID RATE REQUIREMENTS
Any bid submitted for a specified rate equal to the applicable maximum tariff rate shall be deemed to be a bid at the applicable maximum rate set forth in MEP's FERC Gas Tariff, as may be revised from time to time.
All bids for capacity in Zones 1 and/or 2 must be submitted as a Reservation Rate and must be within the applicable minimum and maximum rates for set forth in MEP's FERC Gas Tariff, as applicable. Bids in the form of a Negotiated Rate or Negotiated Rate Formula for capacity in Zones 1 and/or 2 are not valid and will be rejected.
All bids for Leased Capacity must be submitted with a Leased Capacity Charge. MEP will consider bids for Leased Capacity at less than the currently effective Leased Capacity Charge set forth in MEP's FERC Gas Tariff.
MEP is not obligated to award firm capacity at less than the applicable maximum Reservation Rate and effective Leased Capacity Charge.
3. RESERVE PRICE MATRIX
MEP has established and provided to an Independent Third Party a Reserve Price Matrix for capacity offered in this AOS.
In order to be eligible for a possible award of capacity, the rate bid must meet the applicable Reserve Price as established by MEP in the Reserve Price Matrix for the relevant firm capacity.
4. CREDITWORTHINESS REQUIREMENT
All bidders must satisfy MEP's creditworthiness requirements, as stated in Section 12 of the General Terms and Conditions of MEP's FERC Gas Tariff, prior to submitting a bid. Any bid submitted which causes bidder to exceed bidder's pre-determined level of creditworthiness is deemed an invalid bid. Potential bidders are encouraged to contact MEP's Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.
5. COMMODITY CHARGES, SURCHARGES AND LEASED CAPACITY CHARGES
The Reservation Rate included in any bid must be for the Base Reservation Rate only. Any applicable commodity charges and surcharges and reservation surcharges, as well as the revenue from the Leased Capacity, will not be included in the guaranteed revenue stream considered for bid evaluation purposes. Advance Payments are separately discussed below. In addition to the awarded Base Reservation Rate, the winning Bidder will pay the Leased Capacity Charges, Fuel Rate and Activity Charges, as applicable, and all applicable commodity charges and surcharges, at the applicable maximum rate contained in MEP's FERC Gas Tariff, as may be revised from time to time.
6. FUEL AND GLU CHARGES
The Reservation Rate included in any bid is exclusive of all applicable fuel and gas lost and unaccounted for (GLU) charges. Bidder will be required to pay any and all applicable fuel and GLU charges set forth in MEP's FERC Gas Tariff, including applicable Leased Capacity Fuel charges, as may be revised from time to time.
7. Quantity Limitations/AUTHORIZED OVERRUN SERVICE
For any capacity which may be awarded at a discounted rate, the bid rate shall only apply to firm daily delivery quantities, including any related capacity release quantities, up to Bidder's awarded Contract MDQ. Firm deliveries made on any day in excess of the applicable contract MDQ, including any related capacity release quantities, shall be charged all applicable maximum rates, charges, and surcharges set forth in MEP's FERC Gas Tariff. Without limitation of the foregoing, all Authorized Overrun Service provided to the Awarded Bidder shall be billed at the applicable maximum Authorized Overrun Rate set forth in MEP's FERC Gas Tariff, as may be revised from time to time.
8. ADVANCE PAYMENTS
A Bid may include an Advance Payment. Advance Payments will be included in the guaranteed revenue stream discounted back to the Discount Date for NPV purposes. For evaluation purposes, the NPV of the Advance Payment and the NPV of the bid rate for the relevant capacity may not in the aggregate exceed the NPV at the applicable maximum rate over the bid term.
9. BID EVALUATION METHODOLOGY
All bids for this AOS will be evaluated using the NPV formula which is posted on MEP's DART system on the commencement date of the Posting and Bidding Period. All bids will be discounted to the Discount Date for NPV purposes. MEP's internet website may be accessed at: http://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=MEP. The NPV formula for evaluating bids was posted on August 24, 2010, on MEP's internet website under Informational Postings/Notices/Non-Critical and is titled “NET PRESENT VALUE FORMULA”.
10. BID AGGREGATION
In order to determine the successful Bidders, MEP shall aggregate acceptable bids (including prorated bids to the extent applicable) if aggregation would achieve the highest NPV in relation to the available capacity.
11. DETERMINATION OF HIGHEST ECONOMIC VALUE AND PRORATIONING
In any situation where the capacity associated with acceptable bids exceeds the available firm capacity, including situations in which the highest NPV is determined using bid aggregation, then any available capacity will be allocated among bids, up to the MDQ bid, to achieve the optimal solution (highest aggregate NPV for capacity available). In order to determine the highest economic value of all acceptable bids received, MEP will calculate the NPV of all such bids in two ways: 1) assuming prorationing of bid capacity by one or more Bidders to the extent required to achieve the optimal solution regardless of any bid's stated minimum acceptable quantity and 2) assuming prorationing of bid capacity by all Bidders down to the minimum acceptable quantity set out in the respective bids. If a bid indicates that the Bidder is not willing to prorate to the extent required by the optimal solution, the available capacity will first be allocated (Initial Allocation) among other bids which indicate that the Bidders are willing to prorate to the extent required by the optimal solution. The Initial Allocation shall be consistent with the optimal solution for the Bidders participating in the Initial Allocation. The Bidder(s) not willing to prorate to the extent required by the optimal solution will be afforded the opportunity (irrespective of any stated minimum acceptable quantity) to take any capacity, up to MDQ bid, not allocated to other Bidders under the Initial Allocation. If allocation of capacity among Bidders in the preceding sentence is required, allocation will be implemented in order to achieve the optimal solution for the capacity remaining to be allocated (irrespective of any stated minimum acceptable quantity), provided that the quantity allocated to a Bidder may not exceed the MDQ bid by that Bidder. In applying the above procedures, in the event that MEP receives two (2) or more acceptable bids or sets of acceptable bids for service, which produce the same NPV (and produce the highest aggregate NPV), then available capacity will be allocated prorata based on MDQ bid.
12. NPV TIE BREAKER METHODOLOGY
If a tie for highest economic value between bids or sets of bids of identical value remains at the end of the prorationing process, MEP will apply the Tiebreaking procedures set forth in MEP's FERC Gas Tariff at Section 14.10 (d) of the General Terms and Conditions.
15. BID FORM FOR FTS CAPACITY
In order to be valid, a bid must contain all of the applicable information required by the following Bid Form. Any bid submitted for a specified rate equal to or higher than the applicable maximum tariff rate shall be deemed to be a bid at the applicable maximum tariff rate, as may be revised from time to time.
MIDCONTINENT EXPRESS PIPELINE COMPANY LLC
Additional Open Season
DATE ____________________AOS ___________________
BIDDER/SHIPPER NAME:_________________________________________________
SERVICE TYPE: FTS
Requested Contract MDQ: __________ Dth/day
Leased Capacity Charges, as applicable:
Waynoka and/or Rose - Valley $_________/Dth/day of MDQ
MONTHLY BASE RESERVATION RATE BID, as applicable :
Zone 1 $ ____________/Dth/Month
Zone 2 $ _____________/Dth/Month
ADVANCE PAYMENT AMOUNT (Optional) $________ PAYABLE DATE ___________
TERM START DATE _________________ TERM END DATE ______________________
PRIMARY POINT(S) AND POINT MDQ(S)
RECEIPT POINT NAME
LOC #
Requested MDQ (Dth/day)
Minimum Acceptable MDQ (Dth/day)
DELIVERY POINT NAME
CONTACT NAME: ____________________________________________________
TITLE: ______________________________________________________________
DATE: ______________________________________________________________
Email to MEP at FTServiceRequest@ Kindermorgan.com by 2:00pm on Monday, May 10, 2021.