NATURAL GAS PIPELINE COMPANY OF AMERICA LLC
ANNOUNCEMENT OF CAPACITY AVAILABILITY
SUBJECT TO RIGHT OF FIRST REFUSAL
NOMINATED FIRM STORAGE SERVICE
Posting Number: ROFRN0921-2
Posting Start Date: September 22, 2021
Posting End Date: October 22, 2021
The capacity set forth in this posting is available for bids, subject to the current capacity holder's right of first refusal (ROFR), as more fully described in Section 22.3 of the General Terms and Conditions of Natural's tariff.
CAPACITY AVAILABLE
Rate Schedule: NSS
Date capacity will become available: April 1, 2022
Available Contract MDQ: 13334
Available MSV (MDQ x 75): 1000050
Available Amarillo Leg MDQ (% of Contract MDQ): 100%
Available Gulf Coast Leg MDQ (% of Contract MDQ): 0%
SFV RATE AND NEGOTAITED RATE FORMS
Bids may be submitted either in an SFV rate form or in the negotiated rate form set forth below.
SFV Rate Form
Bids submitted in an SFV rate form must contain a monthly base reservation rate within the minimum and maximum rates set forth in Naturals tariff which are applicable to the bid capacity, All applicable reservation rate surcharges will be additive to the bid rate.
Negotiated Rate Form
Bids may be submitted in a negotiated rate form which consists of a monthly reservation rate inclusive of all current and any future FERC-authorized reservation surcharges.
Any capacity award to a negotiated rate Bidder will be subject to subsequent FERC approval of the negotiated rate transaction.
QUANTITY LIMITATION APPLICABLE TO DISCOUNTED AND NEGOTIATED RATES
Any award of capacity to any bidder at a rate which is less than the applicable maximum rate, or in a rate form which constitutes a permissible negotiated rate, shall only have such discounted or negotiated rate apply to a total daily storage quantity, including any capacity release quantities, equal to the awarded Contract MDQ, and to a total maximum storage quantity, including any capacity release quantities, equal to the awarded Contract MDQ times seventy-five (75).
CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY:
Peak Off-Peak
$2.79 $2.79
Monthly Base Reservation Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.
EVALUATION OF ACCEPTABLE BIDS AND CAPACITY AWARD PROCEDURES
Evaluation of ROFR bids subject to current capacity holder right to match
In accordance with Naturals Tariff, the current capacity holder may elect to match the NPV of the best bid or bids in order to retain the capacity, which is subject to the following limitation: For purposes of determining the NPV that the current capacity holder must match such NPV shall equal the lesser of: the NPV of the best acceptable bid(s); or the NPV of the maximum base tariff rate for 5 years. Natural may, but is not required to, accept any bid which reflects a discount from the applicable maximum rate.
In accordance with the provisions of Naturals Tariff, Natural will convey the best acceptable bid(s), if any to the current capacity holder, which shall include the NPV that the current capacity holder must match (as specified below) in order to retain the capacity. The current capacity holder, at its election, may match any bid(s) in either an SFV or negotiated rate form.
If the current capacity holder fails to match the best acceptable bid(s), then Natural will award capacity to bidders in this ROFR posting in accordance with the provisions of Naturals tariff, as determined below.
Evaluation of acceptable bids after current capacity holder does not exercise right to match
In comparing bids in the ROFR, the NPV of all acceptable bids received in this ROFR shall be determined in accordance with all applicable provisions of Naturals tariff, as well as the NPV evaluation methodology applicable to Initial Open Season bid evaluations posted on Naturals DART System as of the Posting Start Date (NPV Posting). The discount rate to be applied to the NPV formula, as referenced in the NPV Posting, shall be the currently effective Annual FERC interest rate. Further, bidders may bid any term in this ROFR and the entire term of the bid shall be included in the determination of the NPV of the bid. The acceptable bid or bids that generate the highest aggregate NPV shall be the best acceptable bid(s).
CREDITWORTHINESS REQUIREMENTS
All Bidders must satisfy Naturals creditworthiness requirements, as stated in Section 16 of the General Terms and Conditions of Naturals FERC Gas Tariff, prior to submitting a bid. Any bid submitted which causes Bidder to exceed Bidders pre-determined level of creditworthiness will be deemed an invalid bid. Potential Bidders are encouraged to contact Naturals Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.
BID SUBMITTAL REQUIREMENTS
Bids for the available capacity must be received by Natural no later than 2:00 p.m. Central Time on the Posting End Date in order to qualify for consideration. Bids should be emailed to NGPLMARKETING@KINDERMORGAN.COM using the form of the bid sheet set forth below.
Bids must contain all of the information required by the bid sheet. Incomplete bid forms received by Natural will be deemed invalid.
The respective Available Amarillo and Gulf Coast Leg Percentages set forth in this ROFR posting will apply to the Contract MDQ included in each bid.
Bids which contain any conditions or contingencies which are not expressly permitted by this ROFR posting will be deemed invalid.
Each Bidder must indicate in its bid, as part of the required bid information, whether it is willing to accept a prorated award of its bid capacity in the event that the capacity required for all acceptable bids received exceeds the available capacity and, if so, must also indicate the Bidder's minimum acceptable Contract MDQ. To the extent that the Capacity Available includes both Amarillo and Gulf Coast Leg capacity, a bidder desiring to bid on less than all of the Capacity Available will be required to bid for the capacity in the same leg MDQ ratios, as set forth above for each Leg (Amarillo and Gulf Coast) under "Capacity Available".
Natural Gas Pipeline Company of America LLC
Right of First Refusal
Form of Bid Sheet
BID FOR CAPACITY SUBJECT TO RIGHT OF FIRST REFUSAL
Bidder's Name: ______________________________ GID #_______
Date: _______________________________
Term Start Date: _______________________________
Term End Date: _______________________________
Contract MDQ: _______________________________ Dth/d
Contract MSV (MDQ x 75): ___________________________ Dth
Amarillo Leg MDQ (% Contract MDQ): ______%
Gulf Coast Leg MDQ (% Contract MDQ): ______%
If Bidder will accept less than the Contract MDQ bid, specify the Minimum Acceptable Contract MDQ: _____________________ Dth per day.
Primary Delivery Point MDQ:
Loc No. Loc Name Loc MDQ
__________ ______________________ _________
SFV Rate Form Bid
Monthly Base Reservation Rate (per Dth of Contract MDQ):
Peak Reservation:____________ Off-Peak Reservation:___________
Negotiated Rate Form Bid
Monthly Reservation Rate (per Dth of Contract MDQ) for Negotiated Rate bids:
Is Bidder an affiliate of Natural (Y/N): _________
Bidders Address: __________________________________
__________________________________
Bids for this capacity must be received by Natural before 2:00 p.m. Central Time on the Posting End Date in order to qualify for consideration. Bids should be emailed to NGPLMARKETING@KINDERMORGAN.COM. Bids are subject to the terms and conditions set forth in the applicable ROFR posting and Natural's FERC Gas Tariff.
Bidder Name: ______________________________
By: ______________________________________
Name: ____________________________________
Title: ___________________________________
Phone #/Fax # ( )________________________(__)________________
Email: _______________________________________________________