NATURAL GAS PIPELINE COMPANY OF AMERICA LLC
ANNOUNCEMENT OF CAPACITY AVAILABILITY
SUBJECT TO RIGHT OF FIRST REFUSAL
FIRM TRANSPORTATION SERVICE
Posting Number: ROFRN0922-4
Posting Start Date: September 23, 2022
Posting End Date: October 24, 2022
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: FTS
Date capacity will become available: April 1, 2023
Available Contract MDQ: 50000 Dth/d
Available Primary Point MDQ:
Receipt:
LOC NO.
LOC NAME
SEG NO.
ZONE
MDQ (Dth/d)
48931
WOODFORD/NGPL COX CITY GRADY
2
MIDC
50000
Delivery:
5579
KMTP/NGPL GOODRICH POLK
26
TXOK
PRIMARY TRANSPORTATION PATH/SEGMENT MDQs
Segment
Number
Upstream
Forward/Backward
Haul (Contractual)
Flow Through
Capacity
April - March
1.
0
F
2.
15
3.
17
4.
B
CAPACITY SHAPING REQUIREMENT
A bidder desiring to bid on less capacity than the Available Contract MDQ will be required to bid for aggregate point and segment capacity in the same quantity ratio as the Available Contract MDQ above, if applicable. Such a bid must also reflect the same shaping of capacity by month and seasonal period as the Available Capacity.
Consistent with the Capacity Shaping Requirement above, the aggregate point capacity included in the bid must reflect the following zone ratios, which correspond to the current capacity holder's zone ratios:
RECEIPT:
ZONE(S) REQUIRED ZONE RATIO
Midcontinent Receipt Zone 100%
DELIVERY:
Texok Delivery Zone 100%
Alternate Receipt/Delivery Point Requirements
A bidder may bid receipt or delivery points which are different than the Available Primary Points indicated above, subject to the following requirements:
1. The aggregate receipt and delivery point capacity in the bid must comply with the required receipt and delivery zone ratios set forth above.
2. Any point included in the bid which is not included above as an Available Primary Point must not require more segment capacity than the corresponding Available Primary Point capacity, and must be in the same respective receipt or delivery zone as the corresponding Available Primary Point.
3. The receipt and delivery point capacity in the bid must be available as of the Posting End Date set forth above.
SFV RATE AND NEGOTIATED RATE FORMS
Bids may be submitted either in an SFV rate form or in the "negotiated rate" form set forth below. Any capacity award to a negotiated rate bidder will be subject to subsequent FERC approval of the negotiated rate transaction.
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 Natural's tariff which are applicable to the bid capacity.
NEGOTIATED RATE FORM
The negotiated rate form permitted in this ROFR posting consists of a Negotiated Fixed Monthly Base Reservation Rate and a Negotiated Fixed Base Commodity Rate. No other form of negotiated rate bid will be accepted, including without limitation any negotiated rate form which is based upon a formula. The Negotiated Fixed Monthly Base Reservation Rate and the Negotiated Fixed Base Commodity Rate will apply at all times to service provided to bidder, notwithstanding any changes in Naturals otherwise applicable maximum or minimum tariff base reservation rates.
Negotiated Fixed Monthly Base Reservation Rate. Bids submitted in a negotiated rate form must contain a Negotiated Fixed Monthly Base Reservation Rate which consists of a specified rate for every month included in the bid.
Negotiated Fixed Base Commodity Rate. For any bidder awarded capacity based upon a Negotiated Fixed Monthly Base Reservation Rate bid, the commodity rate to be charged by Natural will be a Negotiated Fixed Base Commodity Rate equal to Naturals applicable maximum tariff commodity rate in effect as of the date of this posting.
DAILY FIRM QUANTITY LIMITATION
For any capacity awarded to a bidder at a reservation rate, which is less than the applicable maximum rate set forth in Natural's tariff, such rate shall apply only to transportation service provided on a firm basis on any day up to a total aggregate daily firm transportation quantity, including any capacity release quantities, equal to the awarded Contract MDQ for such bidder. For any capacity awarded to a bidder under an SFV rate form at less than the applicable maximum rate set forth in Natural's tariff, all additional quantities transported on a firm basis on any day in excess of this daily firm quantity limitation shall be charged the applicable maximum base reservation rate set forth in Natural's tariff, as may be revised from time to time. For any capacity awarded to a bidder under a negotiated rate form at less than the applicable maximum rate set forth in Natural's tariff, all additional quantities transported on a firm basis on any day in excess of this daily firm quantity limitation shall be charged a base reservation and commodity rate equal to the greater of: (a) the 100% load factor equivalent of the Negotiated Fixed Monthly Base Reservation Rate and Negotiated Fixed Base Commodity Rate; and (b) the 100% load factor equivalent of the applicable maximum base reservation and commodity rates set forth in Naturals tariff, as may be revised from time to time.
BID RATE SECONDARY RECEIPT/DELIVERY POINTS
a) Capacity Without System-Wide Service Option (SW Option):
For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum reservation rate set forth in Naturals tariff, and which does not include the SW Option, the bid reservation rate will apply to all secondary receipt points 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 Naturals FERC Gas Tariff, as may be revised from time to time.
For any capacity awarded to a bidder which does not include the SW Option, the bid reservation rate will apply to all secondary delivery points in the zones traversed by the primary path including pooling and storage points.
b) Capacity With System-Wide Service Option (SW Option):
For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum rate set forth in Naturals tariff, and which includes the SW Option, the bid reservation rate will apply to all secondary receipt and delivery points in the zones traversed by the primary path including pooling and storage points.
CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR
AVAILABLE CAPACITY:
Bidders may submit a bid in this ROFR with or without the System-Wide service option (SW Option). The applicable maximum Tariff rates for service with and without the SW-Option are shown below:
Without SW-Option With SW-Option
Peak Off-Peak Peak Off-Peak
$5.74 $5.74 $8.92 $8.005
Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.
EVALUATION OF ACCEPTABLE BIDS AND CAPACITY AWARD PROCEDURES
Bid Evaluation subject to current capacity holders 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. For acceptable bid(s) that include the System-Wide service option (SW Option), Natural shall convey a term sheet to the current capacity holder that includes an NPV for matching purposes with and without the SW Option. The current capacity holder may elect to match the bid(s) either with or without the SW Option. 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.
Bid Evaluation 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. For any bids submitted with the SW Option, the value of the SW Option shall be included in the determination of the NPV of the bid. 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 REQUIREMENT
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 is 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.
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 bidder's minimum acceptable Contract MDQ.
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
Right of First Refusal
Form of Bid Sheet
BID FOR CAPACITY SUBJECT TO RIGHT OF FIRST REFUSAL
Bidder's Name: _____________________________ GID #__________
Date: ____________________________________________
Rate Schedule: ____________________________________________
Term Start Date: ____________________________________________
Term End Date: ____________________________________________
Contract MDQ: ____________________________________________
If Bidder will accept less than the Contract MDQ bid, specify the Minimum Acceptable Contract MDQ: ____________ Dth per day.
Primary Point MDQ:
Receipt/Delivery LOC Name LOC MDQ
__________________ _____________ ___________
Rate Form Bid (check one): SFV Rate ____Negotiated Rate____
Monthly Base Reservation Rate Without SW (per Dth of Contract MDQ):
Peak Off-Peak
_____ _____
Monthly Base Reservation Rate With SW (per Dth of Contract MDQ):
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: