OPEN SEASON – OS2305-3
SOUTH TEXAS TO SOUTH TEXAS/TEXOK
FTS TRANSPORTATION
AVAILABLE WITH SW OPTION
This is an Open Season (OS) 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 may be submitted in either the SFV Rate Form or a fixed Negotiated Rate Form.
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Firm capacity with a primary receipt point in Natural's South Texas Receipt Zone and primary delivery points in Natural's South Texas and Texok Delivery Zones (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
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SOUTH TEXAS to SOUTH TEXAS/TEXOK
The following firm capacity is available from Segment 20 northbound through Segment 22 to Segment 26 beginning November 1, 2023, through March 31, 2024, as listed below:
November December January February March
Segment 26 176,000 133,340 133,340 133,340 163,340
Segment 22 176,000 176,000 176,000 176,000 176,000
Segment 20 176,000 176,000 176,000 176,000 176,000
The MDQ bid in each month must be in the same ratio of the capacity available in each month. Bids can be submitted in either of the following ways: 1) specify a percentage amount that will be applied to the MDQ available each month or 2) specify the MDQ bid in each month, the percentage of the capacity bid in each month when compared to the amount of available capacity in each month must be the same for all months.
Examples of the acceptable bid submissions are shown below.
Example 1: CONTRACT MDQ BID Percentage % _75%___
OR
Example 2: CONTRACT MDQ BID: (The MDQ bid in each month must be in the same ratio of the capacity available in each month; in this example a 75% ratio)
South Texas to South Texas/Texok:
Example 2:
Segment 26 132,000 100,005 100,005 100,005 122,505
Segment 22 132,000 132,000 132,000 132,000 132,000
Segment 20 132,000 132,000 132,000 132,000 132,000
CURRENTLY AVAILABLE RECEIPT POINTS
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The following receipt point in Segment 20 is available for use as a primary receipt point in this OS:
LOC # Primary Receipt Point Name Segment MDQ
---- --------------------------- ------- ---
54849 WHISTLEP/NGPL WHISTLE REC NUECES 20 176,000
Bidders interested in other primary receipt points should contact their Account Director at Natural prior to bid submission.
CURRENTLY AVAILABLE DELIVERY POINTS
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The following delivery points in Segments 22 and 26 are available for use as primary delivery points in this OS:
LOC # Primary Delivery Point Name Segment MDQ
3352 ETP/NGPL BECKVILLE PANOLA 26 176,000
48530 GULFSTH/NGPL COASTAL BEND WHARTON 22 42,660
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:
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Without SW Option
Peak
South Texas to South Texas $2.97
South Texas to Texok $3.79
Applicable blended maximum rate without SW Option based on Capacity Available ratio:
$3.7900 $3.5912 $3.5912 $3.5912 $3.7310
With SW Option
South Texas to South Texas $6.99
South Texas to Texok $7.40
Applicable blended maximum rate with SW Option based on Capacity Available ratio:
$7.4000 $7.3006 $7.3006 $7.3006 $7.3705
Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.
BID PARAMETERS
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POSTING and BIDDING PERIOD: May 26, 2023 – June 5, 2023.
BID SUBMISSION: Bids must be received by Natural by 2:00 p.m. Central Time on June 5, 2023.
Email bids to NGPLMARKETING@KINDERMORGAN.COM
DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 7.50%, discounted to November 1, 2023, which shall be the Discount Date as that term is used in this posting.
BID REQUIREMENTS AND OS TERMS AND CONDITIONS
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BID RATE SECONDARY RECEIPT/DELIVERY POINTS
Capacity With or Without SW Option:
For any capacity awarded to a bidder at a bid reservation rate that is less than the applicable maximum reservation rate set forth in Natural's Tariff, for capacity with or without the SW Option, as applicable, the bid reservation rate will apply only to the secondary receipt and delivery points in the zones traversed by the primary path.
OPTIONAL SERVICES
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The value of the SW Option is applicable to the bid evaluation of the capacity included in this OS, and therefore, the bid reservation rate for the SW Option will be taken into account for bid evaluation purposes. Bidders that choose the SW Option must include the SW Option for the entire term of the bid.
BID REQUIREMENTS
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Shipper may submit multiple bids, but each bid will be evaluated independently. No contingent bids will be accepted in this OS.
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 may be submitted in the SFV Rate Form that is within the applicable minimum and maximum rates set for in Natural's FERC Gas Tariff or in the form of a Negotiated Rate or Negotiated Rate Formula.
All bids must include a term start date of November 1, 2023 and term end date of March 31, 2024 and a bid MDQ that is the same monthly ratio for the entire term of the bid. Bids can be submitted in either of the following ways: 1) specify a percentage amount that will be applied to the MDQ available each month; or 2) specify the MDQ bid in each month, the percentage of the capacity bid in each month when compared to the amount of available capacity in each month must be the same for all months.
CREDITWORTHINESS REQUIREMENT
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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
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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
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The reservation rate included in any bid is exclusive of all applicable fuel gas (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
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For any capacity that 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, unless otherwise provided. 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 OS.
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);
(2) any bid for a term of one year or greater, under which service is to commence more than twelve (12) months following the close of the open season; and
(3) 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
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All bids in this OS 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
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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 Tiebreaker 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 ____________________ – OS2305-3
BIDDER/SHIPPER NAME _________________________________________________
BIDDER/SHIPPER GID _________
MONTHLY BASE RESERVATION RATE
FTS SERVICE TYPE (SELECT TERM OPTION) PEAK RATE
FTS (with SW Option) _______ _______ _______ ________ _______
FTS (w/o SW Option) _______ _______ _______ ________ _______
CONTRACT MDQ BID as a Percentage of Capacity Available (%) _____________
CONTRACT MDQ BID by month (must be in the same ratio as the Capacity Available):
Segment 26 _______ _______ _______ _______ _______
Segment 22 _______ _______ _______ _______ _______ Segment 20 _______ _______ _______ _______ _______ _______
TERM START DATE _November 1, 2023___ TERM END DATE _March 31, 2024___
PRIMARY RECEIPT POINT(S) AND POINT MDQ(S)
LOC NAME LOC # LOC MDQ
RECEIPT(S) _____________ _________ _________
_____________ _________ _________
PRIMARY DELIVERY POINT(S) AND POINT MDQ(S)
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