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TSP/TSP Name:  6931794-NATURAL GAS PIPELINE CO. Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  10/16/2020 8:32:06AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  10/16/2020 8:32:06 AM Notice ID: 41578
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  IOS2010-3 TEXOK TO MARKET
Notice Text:

INITIAL OPEN SEASON – IOS2010-3

 

Texok to Market

FTS TRANSPORTATION

AVAILABLE WITH SW OPTION

 

This is an Initial Open Season (IOS) pursuant to Section 5.1(c)(1) of the General Terms and Conditions (GT&C)of Natural Gas Pipeline Company of America LLC's (Natural's or NGPL's) FERC Gas Tariff (Tariff)for firm transportation capacity. Bidders may submit a bid in a manner consistent with NGPL's tariff procedures in GT&C Section 5.1 (d). Bids must be submitted in the SFV Rate Form.

 

TEXOK TO MARKET

--------------

Firm capacity with a primary receipt point in Natural's Texok Receipt Zone and a primary delivery point in Natural's Market Delivery Zone (as further described in the Capacity Available Section below). As described below under Optional Services, the System Wide Option (SW Option) will be included in the evaluation of bids received. 

 

CAPACITY AVAILABLE (Dth./day)/TERM 

----------------------------------

The following capacity is available for northbound flow in the segments and for the periods specified below.

 

Segments 26, 27 and 28 capacity:

 

9,767 Dth/d is available for April through October periods, beginning April 1, 2021.

 

12,033 Dth/d is available for November through March periods, beginning November 1, 2021.

 

Additional capacity available in Segments 26 and 27 only:

 

24,400 Dth/d is available for April through October periods, beginning April 1, 2021.

 

22,134 Dth/d is available for November through March periods, beginning November 1, 2021.

 

  

CURRENTLY AVAILABLE RECEIPT POINTS

------------------------

The following receipt point in Segment 26 is available for use as a primary receipt point in this IOS:  

 

LOC #   Primary Receipt Point Name       Segment      MDQ

----    ---------------------------      -------      ---

49828   ALIGN/NGPL PANOLA                 26          34,167

                                               

Bidders interested in other primary receipt points should contact their Account Director at Natural prior to bid submission.

 

CURRENTLY AVAILABLE DELIVERY POINTS

-----------------------------------

The following delivery points in Segments 27 and 28 are available for use as a primary delivery point in this IOS: 

 

LOC #   Primary Delivery Point Name   Segment         MDQ

----    ---------------------------    -------        ---

10701   ACME/NGPL HOT SPRINGS             27          12,626

900137  NICORGAS/NGPL MAZON GRUNDY        28          12,033           

              

Bidders interested in other primary delivery points should contact their Account Director at Natural prior to bid submission.

 

CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY FROM TEXOK TO MARKET:

-------------------------------------- 

Without SW Option                              

Peak              Off- Peak                                          

$9.22             $7.73                                          

                                               

With SW Option                                 

Peak              Off- Peak

$10.66            $9.00

 

Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.

 

BID PARAMETERS

--------------

POSTING and BIDDING PERIOD: October 16, 2020 – October 21,2020.

BID SUBMISSION: Bids must be received by Natural by 2:00 p.m. Central Time on October 21, 2020. 

 

Email bids to NGPLMARKETING@KINDERMORGAN.COM

DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 3.25%, discounted to April 1, 2021 which shall be the Discount Date as that term is used in this posting.

 

BID REQUIREMENTS AND IOS TERMS AND CONDITIONS 

--------------------------------------------

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 Natural's tariff, either with or without the SW Option, as applicable , the bid reservation rate will apply to all secondary receipt points located in the zones traversed by the primary path, excluding secondary receipt points to the extent permitted under the “opposite leg rights” provision of Section 5.5(a)(2) of the General Terms and Conditions of Natural's FERC Gas Tariff, as may be revised from time to time.

                                                                       

For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum reservation rate set forth in Natural's tariff, either with or without the SW Option, as applicable, the bid reservation rate will apply to the following secondary delivery points: Nicor (LOC 9258), NIPSCO (LOC 909260), PGLC (LOC 909285), MidAmerican (LOC 10568), Northern Natural (LOC 900203), Northern Border (LOC 908090 and 50706), Midwestern (LOC 25400 and LOC 906107), ANR (LOC 904758 and LOC 906104), PEPL (LOC 906103),  Alliance (LOC 37207 and 37208) and Guardian Pipeline (LOC 40400), REX (LOC 44413) and all storage and pooling points within the zones traversed by the primary path included in bidder's bid.

INCREMENTAL RATE SECONDARY DELIVERY POINTS 

In addition to the bid reservation rate, for any capacity awarded to a bidder at the bid reservation rate which is less than the applicable maximum rate set forth in Natural's tariff, either with or without the SW Option, bidder shall pay Natural the following incremental volumetric daily reservation rates for all quantities transported on a firm basis on any day to the Incremental Rate Secondary Delivery Points set forth below. These incremental rates shall be subject to the applicable maximum rate set forth in Natural's tariff for service to such points, as may be revised from time to time. To the extent that bidder is awarded primary point capacity at any of the Incremental Rate Secondary Delivery Points, the specified incremental reservation rate for service to such point shall not apply.  

           

Tier 1 Secondary Delivery Points

$0.03/Dth.

LOC

 

IPLC/NGPL CDP

25250

IPLC/NGPL CDP Clinton

901028

AmerenIL/NGPL  AM CDP

46594

AmerenIL/NGPL  GC CDP

46595

Crossroads

10751

ENABLEMRT

ENABLEIGTC

900169

44941

Horizon Pipeline 

39755/39855

 

Tier 2 Secondary Delivery Points

$0.05/Dth. 

 

 

North Shore Gas

 

9254

Service provided on a firm basis to all other secondary delivery points not specifically set forth in this section will be provided at the applicable maximum rate set forth in Natural's FERC Gas Tariff, as may be revised from time to time, for service to such points.  

 

OPTIONAL SERVICES

-----------------

The value of the SW Option is applicable to the bid evaluation of the capacity included in this IOS, and therefore, the bid reservation rate for the SW option will be taken into account for bid evaluation purposes. 

 

BID REQUIREMENTS

----------------

Shipper may submit multiple bids, but each bid will be evaluated independently. No contingent bids will be accepted in this IOS.

 

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 Tariff rate, as may be revised from time to time.

 

Bids must be submitted in an SFV rate form. 

 

CREDITWORTHINESS REQUIREMENT

----------------------------

All bidders must satisfy Natural's creditworthiness requirements, as stated in Section 16 of the GT&C of Natural's 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 Natural's Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.

 

COMMODITY CHARGES AND SURCHARGES

--------------------------------

The reservation rate included in any bid must be for the Base Reservation Rate only (including the SW Option rate, to the extent applicable), which is exclusive of all applicable surcharges.  Any applicable commodity charges and surcharges and reservation surcharges 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 all applicable commodity charges and surcharges and reservation surcharges at the applicable maximum rate contained in Natural's Tariff, as may be revised from time to time. 

 

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 Natural's Tariff, as may be revised from time to time. 

 

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 the Bidder's awarded Contract MDQ as a result of any segmentation. Firm deliveries made on any day in excess of the applicable contract MDQ as a result of any segmentation, including any related capacity release quantities, shall be charged all applicable maximum rates, charges, and surcharges set forth in Natural's 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 Natural's Tariff, as may be revised from time to time.

 

ADVANCE PAYMENTS

----------------

An Advance Payment will not increase the value of a bid received in this IOS.

 

OBLIGATION TO AWARD CAPACITY

----------------------------

Natural is not obligated to award firm capacity based on the following types of bids pursuant to its Tariff (GT&C Section 5.1(d)(4)):

(1) on any bid for a term of less than one year, under which service is to commence more than sixty (60) days following the close of the open season (e.g., winter only); and

(2) any bid for a term which is not continuous from the commencement of service date to the termination of service date reflected in the bid.

 

BID EVALUATION METHODOLOGY

--------------------------

All bids in this IOS will be evaluated using the NPV formula which is posted on Natural's internet website on the commencement date of the Posting and Bidding Period.  All bids will be discounted to the Discount Date for NPV purposes. Natural's internet website may be accessed at: https://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=NGPL. The NPV formula for evaluating bids was posted on April 17, 2020 on Natural's internet website under Informational Postings/Notices/Non-Critical and is titled “NET PRESENT VALUE FORMULA”.    

 

BID AGGREGATION 

---------------
In order to determine the successful Bidders, Natural shall aggregate acceptable bids (including prorated bids to the extent applicable) if aggregation would achieve the highest NPV in relation to the available capacity.  

 

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, Natural 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 Natural 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.

 

NPV TIEBREAKER METHODOLOGY

--------------------------

If a tie between bids or sets of bids remains at the end of the prorationing process, Natural will apply the Tiebreaking procedures set forth in Natural's Tariff at Section 5.1(d)(6) of the GT&C. 

 

RESERVATIONS

--------------------------

Natural reserves the right to clarify 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 Natural shall have no obligation to do so.


 

NATURAL GAS PIPELINE COMPANY OF AMERICA LLC

BID FORM FOR FTS CAPACITY

 

In order to be valid, a bid must contain all of the applicable information required by this Bid Form. 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 tariff rate, as may be revised from time to time.  

 

DATE  ____________________          – IOS2010-3

 

 

BIDDER/SHIPPER NAME _________________________________________________

 

                                   MONTHLY BASE RESERVATION RATE  

FTS SERVICE TYPE (SELECT ONE)      OFF-PEAK RATE     PEAK          

 

FTS (with SW Option)                _____________   ____________        

 

FTS (without SW Option)             _____________   ____________

 

TERM START DATE  __________   TERM END DATE  _____________

 

CONTRACT MDQ BID  _____________

 

PRIMARY RECEIPT POINT(S) AND POINT MDQ(S)

 

                 LOC NAME          LOC #       LOC MDQ

 

  RECEIPT(S)     _____________     _________     _________

 

                 _____________     _________     _________

 

PRIMARY DELIVERY POINT(S) AND POINT MDQ(S)

 

                LOC NAME            LOC #       LOC MDQ

 

  DELIVERY(S)   _____________      _________     _________

 

                _____________     _________     _________

               

If Bidder will accept less than the Contract MDQ bid, state Minimum Acceptable MDQ _______________ or, as an alternative, the minimum acceptable percentage __________%

Is Bidder an affiliate of Natural (Y/N): _________

 

 

_____________________   _____________________________

          NAME                   TITLE

 

_________________________

        DATE

 

Email bids to NGPLMARKETING@KINDERMORGAN.COM