October 13, 2022
To All Southern Natural Gas Company Shippers Re: Open Season Announced for Receipt Point Amendments This is to announce an open season for FT receipt point amendments on Southern Natural Gas (“Southern”). This open season is being held as a result of Southern receiving a request to change a contract holder's firm receipt point(s). Pursuant to Southern' s tariff, Southern must hold an open season prior to awarding any changes in firm receipt points held by a shipper under existing firm transportation contracts. Requests for incremental capacity will not be considered in this open season.
The open season will commence as of the date and time this notice is posted and end at 1:00 pm CCT on October 18, 2022.
Shippers may submit bids to Southern for FT service by completing a standard transportation request form for FT service and emailing it to FTServiceRequest@kindermorgan.com. Please call your account manager if you need an FT Request Form or you can paste the following link in your browser and then click on SNG Service Request. http://pipeportal.kindermorgan.com/PortalUI/CommonForms.aspx?TSP=SNGD
Only valid requests for service under the terms of Southern's tariff will be considered. All bids will be considered binding. SNG reserves the right not to accept, in a not unduly discriminatory manner among similarly situated bids, any bid that would require the construction of facilities, or that contains unacceptable contingencies.
Southern will award the capacity from bids received during the open season on the basis of net present value determined with reference to the rate, volume, term and the date the service is to commence. In calculating the net present value, a discounted cash flow factor of 10.24% will be used. Southern will have the right to aggregate bids in a manner that generates the highest net present value to Southern. It should be noted that, according to the terms of Southern's tariff, bids for receipt point amendments will all be considered to have a net present value of zero unless the bidding shipper proposes to increase its existing discounted rate, if applicable, or extend the term of its contract, in which case the NPV will be calculated based on the portion of incremental service which the bidding shipper is proposing to extend or increase. Comparable winning bids that cannot be awarded in full will be awarded capacity on a pro rata basis. Shippers should indicate in their bids the minimum volume of capacity they are willing to take in the event Southern must prorate the bids. If bids are submitted in excess of the available capacity and they must be prorated, the bids will be prorated as though the bidder bid for the maximum available capacity to be awarded.
Southern will take no longer than 10 business days to award the bids. This open season is subject to the terms of Section 2(b) of the General Terms and Conditions of Southern' s Tariff.
If you have any questions regarding the Open Season please contact your Account Manager. SNG Marketing