NOTICE OF BINDING OPEN SEASON

Permian Highway Pipeline LLC

Permian Highway Pipeline Expansion Project April 25, 2022

I.     General

Permian Highway Pipeline LLC (“PHP”) is holding this binding open season (the “Open Season”) for an expansion of the existing PHP pipeline (the “PHP Expansion Project”). The PHP Expansion Project will provide up to 650,000 MMBtu per day of firm capacity for intrastate transportation service and Section 311(a)(2) transportation service (“Expansion Capacity”) at the receipt points identified in Exhibit A, with

(i)   450,000 MMBtu per day available for delivery to the Gulf Coast Market Area (identified in Exhibit B),

(ii)  200,000 MMBtu per day available for delivery to the Katy Market Area (identified in Exhibit B), and (iii) delivery available to the PHP mainline direct connects (identified in Exhibit B). PHP has executed binding transportation agreements with a shipper for the PHP Expansion Project for a total of 325,000 MMBtu per day (“Foundation Shipper”).

The anticipated commercial in-service date for the PHP Expansion Project is October 1, 2023.

The Open Season will commence as of April 25, 2022, and end at 5:00 p.m. CDT on May 13, 2022 (“Open Season Period”).

The Expansion Capacity awarded pursuant to this Open Season will be made available through the installation of new facilities and modifications, as may be required to meet the specific needs of the shippers.

Bids submitted in this Open Season are binding on the shipper.

II.  Open Season/Submission of Bids

To participate in this Open Season, a potential shipper must submit a completed Service Request Form (“SRF”), executed by a company officer, in the form attached as Exhibit C. Upon receipt of the participant's executed SRF, PHP shall provide the potential shipper with the forms of binding transportation agreements.

In order to submit a Qualifying Binding Bid in the Open Season Period, a potential shipper must submit, in addition to the previously submitted and executed SRF: (i) an executed binding transportation agreement for Section 311(a)(2) transportation service with a minimum term of ten (10) years and a maximum term of twenty (20) years at mutually agreeable project rates; (ii) an executed binding transportation agreement for intrastate transportation service with a minimum term of ten (10) years and a maximum term of twenty (20) years at mutually agreeable project rates; and (iii) credit support in a form satisfactory to PHP, in the event the potential shipper does not satisfy PHP's creditworthiness requirements.

Any potential shipper submitting an executed SRF by the close of the Open Season that does not meet the criteria of a Qualifying Binding Bid will be considered to have submitted a Non-Conforming Bid. PHP reserves the right to reject any Non-Conforming Bids.

To the extent a potential shipper has any minimum contract quantity below which it does not desire the capacity or any contingencies to its bid, it should so indicate in the “Additional Information” section of the SRF. If it is necessary to allocate capacity, and the potential shipper does not receive the minimum contract quantity requested, PHP will notify such potential shipper and its bid will be deemed null and void.

Potential shippers should submit bids to:

Permian Highway Pipeline LLC Attention: Enrique Valencia

Email: Enrique_Valencia@Kindermorgan.com

III.  Evaluation Method

Participation in this Open Season shall be considered binding on the bidders upon submission of their Qualifying Binding Bids. To the extent PHP receives Qualifying Binding Bids for greater than the Expansion Capacity, PHP reserves the right to proceed with the PHP Expansion Project as contemplated and address requests for excess capacity in a subsequent project and/or open season.

If PHP receives acceptable bids for capacity in excess of the actual amount of available capacity, then PHP will award and/or allocate the capacity in a manner that yields the highest total NPV as calculated below. In determining which bid(s) yield the highest total NPV, PHP reserves the right to combine multiple bids, in whole or in part, in a manner that results in a total NPV of the combined bids that exceeds the highest NPV achievable by accepting one or more of the disaggregated bids. This process could result in a bidder being awarded less capacity than requested (unless such bidder elects on its bid sheet not to accept an allocation of capacity).

NPV will be calculated as the sum of the present values for all of the months beginning with the first month capacity is available through the end date of the bid term. The NPV for each month will be calculated as follows:

NPV = R / ((1+i) to the power of n) NPV per MMBtu = NPV / MDQ Where:

R = the total monthly revenue to PHP

i = the monthly discount rate of 0.2708% (which is the annual discount rate of 3.25% divided by 12).

n = the number of months from the earliest date the capacity is available in the Open Season to the month the revenue will be received (the first month capacity is available n = 1, the second month n = 2, and so on)

MDQ = Total Requested Maximum Daily Quantity

PHP will award the Expansion Capacity to the shipper(s) submitting the Qualifying Binding Bid with the highest NPV per MMBtu. If any potential shipper submits a Qualifying Binding Bid with an equal or higher NPV per MMBtu than the Foundation Shipper, then the Foundation Shipper shall have the right to match or beat such bid. To the extent the Foundation Shipper elects to beat any Qualifying Binding Bid with a higher NPV per MMBtu, the Foundation Shipper shall be awarded one hundred percent (100%) of its MDQ under

the Foundation Shipper's transportation agreements. In the event that two or more Qualifying Binding Bids have the same NPV per MMBtu, whether as a result of a Qualifying Binding Bid or the Foundation Shipper exercising its right to match, capacity will be awarded on a pro rata basis.

IV.     PHP's Reservation of Rights

PHP reserves the following rights:

1.       At any time, to terminate the Open Season or to extend the Open Season Period;

2.       To modify the Open Season and/or the Open Season Period to accommodate market interest;

3.       To reject, on a not unduly discriminatory basis, any SRF or transportation agreement which does not meet the requirements of PHP's Statement of Operating Conditions and/or PHP's general terms and conditions for intrastate transportation service (as applicable) in PHP's sole determination, and which in PHP's sole determination, is incomplete, is inconsistent with the terms of this Open Season, contains additions or modifications to the terms of the SRF, or is otherwise deficient in any respect (including failure to provide credit support as PHP deems necessary);

4.       To reject or accept, on a not unduly discriminatory basis, any Non-Conforming Bid;

5.       To not award the Expansion Capacity;

6.       To modify the scope and/or the final MDQ for the PHP Expansion Project depending upon the Open Season results;

7.       To allocate, on a not unduly discriminatory basis, Katy Market Area capacity, Gulf Coast Market Area capacity and PHP mainline direct connects capacity, on a pro-rata basis on shipper MDQ; and

8.       To allocate, on a not unduly discriminatory basis, Receipt Point capacity and Delivery Point Capacity, on a pro-rata basis on shipper MDQ.

This Open Season is subject to all applicable laws, orders, rules, and regulations of authorities having jurisdiction. No request for service shall be binding on PHP unless and until a duly authorized representative of both the requesting party and PHP have executed a binding transportation agreement for such service.

V.    Creditworthiness

Following submission of a complete SRF, potential shippers will be contacted by PHP for further evaluation of the potential shipper's creditworthiness. Additionally, in the event a potential shipper is deemed non- creditworthy by PHP, the potential shipper must provide to PHP, as part of any transportation agreement, credit assurance in form and substance acceptable to PHP in its sole discretion. Such creditworthiness requirements shall remain in effect during the term of shipper's transportation agreements.

VI.     Contact Information

If you have any questions regarding this Open Season, please contact the following:

Enrique Valencia 713-420-5017

Enrique_Valencia@Kindermorgan.com

Exhibit A

PHP Expansion Project – Receipt Points

Receipt Points (Waha):

-          EPNG

-          Enterprise

-          ET Oasis

-          Whitewater Agua Blanca

-          ONEOK Roadrunner Pipeline

-          Kinetik Delaware Link Pipeline

Exhibit B

PHP Expansion Project – Delivery Points

PHP mainline direct connects:

-          Caldwell County Atmos

-          Hays County Enterprise

Katy Market Area:

-          Katy Oasis

Gulf Coast Market Area:

-          Transco

-          TGP

-          NGPL

-          Gulf South Pipeline – Coastal Bend Header

Exhibit C

PHP Expansion Project – Service Request Form

A.      Bidder Name:                                                                                                                                    

B.      Effective Date:                                                                                                                                    

C.       Term (to range from 10-20 years):                                                                                              

D.      Total Requested Maximum Daily Quantity (MMBtu/day) for Intrastate Transportation Service and Section 311(a)(2) Transportation Service:                                                                         

E.       Fixed Fuel and Use Quantity: 6.3%

F.       Transportation Fees:

G.      Receipt Points:

H.      Delivery Points:

PHP mainline direct connects

Katy Market Area – Maximum aggregate MMBtu available at all Katy Market Area Delivery Points is 200,000 MMBtu, subject to operational restraints of the pipeline and specific needs of shippers. Bidder's maximum aggregate MMBtu at all Katy Market Area Delivery Points should not exceed Bidder's pro rata share of the total MDQ in this SRF.

Gulf Coast Market Area – Maximum aggregate MMBtu available at all Gulf Coast Market Area Delivery Points is 450,000 MMBtu, subject to operational restraints of the pipeline and specific needs of shippers. Bidder's maximum aggregate MMBtu at all Gulf Coast Market Area Delivery Points should not exceed Bidder's pro rata share of the total MDQ in this SRF.

Additional Information to Clarify Service Request:

Bidder represents that the person executing this SRF has been duly authorized by Bidder to submit this SRF on Bidder's behalf.