DATE: October 28, 2025 TIME: 2:00 PM CDT
TO: ALL SOUTHERN NATURAL GAS COMPANY, L.L.C. CUSTOMERS
RE: Non-Binding Open Season for Firm Storage Service at Bear Creek
Southern Natural Gas Company, L.L.C. (”SNG”) is holding this non-binding open season (the "Open Season") to solicit interest in an approximately four-turn storage service to be provided at a virtual storage point near the SNG/Bear Creek Storage interconnect in North Louisiana (Storage PIN 653500) (the “Service Point”). The proposed storage service would be provided by SNG through its acquisition of storage capacity from Bear Creek Storage Company, L.L.C. (“Bear Creek”) that would be made available as a result of a potential project that would be undertaken by Bear Creek at the Bear Creek Storage Facility (the “Project”).
The development of the Project is expected to result in SNG's acquisition of up to approximately 9,000,000 dekatherms ("Dth") of firm storage capacity, along with 200,000 Dth/day of injection capacity and 300,000 Dth/day of withdrawal capacity (the “Project Capacity”).
It is anticipated that the proposed storage service would be provided by SNG to its shippers under a new rate schedule (the “Project Rate Schedule”) pursuant to SNG's FERC NGA Gas Tariff (as it may be amended from time to time, the “Tariff”). It is anticipated that service under the Project Rate Schedule would be substantially similar to the Contract Storage Service of SNG's existing Rate Schedule CSS, except that the Project Rate Schedule would contemplate, among other things: (a) that service could be provided at the Service Point; (b) that service would be provided at recourse, negotiated, or discounted reservation rates; (c) that SNG would have the option to require the inclusion of credit support provisions in service agreements entered into pursuant to the Project Rate Schedule to support the construction of facilities required to provide the subject capacity; and (d) the MDIQ and MDWQ ratchets as outlined in this Open Season.
SNG's provision of Project Capacity to shippers pursuant to the Project Rate Schedule would be contingent upon SNG's successful acquisition of the Project Capacity from Bear Creek and subject to the terms and conditions of SNG's Tariff and SNG's and Bear Creek's receipt of all required regulatory approvals, including, without limitation, any authorizations that may need to be obtained from the Federal Energy Regulatory Commission (“FERC”) to allow, among others, for, SNG's acquisition of the Project Capacity and for modification of SNG's Tariff to allow for the provision of service under the Project Rate Schedule as contemplated herein.
Additional details regarding the Project Capacity and SNG's bidding preferences and requirements for the Project Capacity are as follows:
Term: At least seven years and up to 20 years (all bids should propose terms in one-year increments, expiring on March 31).
Project Capacity:
Maximum Storage Quantity (“MSQ”): 9,000,000 Dth
Maximum Daily Injection Quantity (“MDIQ”): 200,000 Dth/day
Maximum Daily Withdrawal Quantity (“MDWQ”): 300,000 Dth/day
Required Injection Ratchets
Inventory % MDIQ
0-33% 100%
33-66% 80%
66-100% 70%
Required Withdrawal Ratchets
Inventory % MDWQ
100-28% 100%
28-7% 72%
7-0% 61%
Commodity: TBD (current CSS service is $0.0087 per injection and withdrawal)
Fuel: TBD (current CSS service is 0.78%)
Other Rates and Charges: Shippers would pay any other generally applicable rates and charges as set forth in SNG's Tariff.
Reservation Rate: To be proposed by each potential shipper in its bid. SNG will consider negotiated rate bids.
The commencement date for the Project Capacity (the “Commencement Date”) is anticipated to be April 1, 2029, but such date may be adjusted depending upon the in-service date for Bear Creek's Project facilities and the date SNG acquires the Project Capacity from Bear Creek and receives any required regulatory authorizations to begin providing Project Capacity to shippers.
The Open Season will commence as of the date of this notice and end at 2:00 p.m. CDT on November 18, 2025 (the "Open Season Period"). Unless otherwise indicated, capitalized terms that are used but not defined herein shall have the meanings ascribed to such terms in SNG's Tariff.
In order to participate in the Open Season, each potential shipper must submit a bid that specifies its proposed term, volume, and monthly reservation rate. All bids should refer to the Open Season number set forth above. Bids cannot exceed the stated maximum volumes. Parties interested in this capacity should submit non-binding bids by emailing them to BDSouth@kindermorgan.com. Any party may confirm SNG's receipt of its bid by contacting the email above between 8 A.M. and 5 P.M. CT, Monday through Friday (unless such day is not a working day).
Bids will be treated as confidential and will not be disclosed, except as authorized by the bidder or required by applicable law or regulation. SNG will evaluate bids on a not unduly discriminatory basis based on the best economic outcome for SNG. Upon receipt of an acceptable bid(s) that best satisfies the criteria and economic considerations for the Project Capacity, the successful bidder(s) and SNG shall commence negotiation of all applicable service terms. SNG will inform potential shippers with successful bids of such on or before the date that is 2 weeks following the close of the Open Season Period (provided, that such date may be extended by SNG). Bids will become binding once the terms thereof are incorporated into definitive agreements, including, as applicable, a precedent agreement that contemplates that the parties would enter into a gas storage agreement under the Project Rate Schedule.
SNG reserves the right, to be exercised on a not unduly discriminatory basis, to continue to market the Project Capacity and/or to modify the amount of Project Capacity it plans to acquire from Bear Creek, and to enter into negotiations and execute definitive agreements with any interested shippers following the close of the Open Season.
IV. SNG's Reservation of Rights
SNG reserves the following rights, in addition to all other rights that SNG has reserved herein or that SNG may have pursuant to its Tariff and applicable FERC regulations and policies:
· at any time during the Open Season, upon notice and in its sole discretion, to terminate the Open Season, to extend the Open Season Period, or to modify the Open Season;
· to clarify and finalize bids containing non-specific and/or ambiguous bid information (including, without limitation, rate, term, and quantities) or discrepancies in bid information, provided that SNG shall have no obligation to do so;
· to reject, on a not unduly discriminatory basis, any bid, including any bid that, in SNG's sole determination, does not satisfy SNG's economic or other criteria for the Project, is incomplete, is inconsistent with the terms of the Open Season, contains additions or modifications to the terms of the Open Season, is otherwise deficient in any respect, or requests service outside the scope of the Open Season;
· to accept, on a not unduly discriminatory basis, any bid;
· to elect not to pursue the acquisition of the Project Capacity or not to award any portion of the Project Capacity;
· to proceed directly to definitive agreements with one or more potential shippers following the close of the Open Season Period; and
· to elect to hold subsequent open seasons for the Project Capacity.
The Open Season is subject to all applicable laws, orders, rules, and regulations of authorities having jurisdiction. No request for service shall be binding on SNG unless and until a duly authorized officer or other representative of both the requesting party and SNG have executed binding definitive agreements.
Upon receipt of the acceptable bid(s), SNG will contact each potential shipper with an acceptable bid to discuss the potential shipper's bid and proposed project details. SNG shall also contact each such potential shipper to discuss the potential shipper's creditworthiness and conduct a credit evaluation. Definitive agreements for the Project Capacity are expected to require that, in the event a potential shipper is deemed non-creditworthy by SNG, the potential shipper would be required to provide to SNG credit assurance applicable to the Project Capacity, in form and substance acceptable to SNG in its sole discretion. Such creditworthiness requirements would remain in effect during the term of a shipper's precedent agreement, as well as the term of such shipper's gas storage agreement.
If you have any questions regarding the Open Season, please contact the following:
Matthew Proietti (205) 325 3507
E-mail BDSouth@kindermorgan.com
Southern Natural Gas Company, L.L.C.
Non-Binding Open Season for Firm Storage Service at Bear Creek
Service Request Form
Shipper Information:
Company
(Legal Name of Entity): ______________________________________________
Primary Contact : ______________________________________________
Title: ______________________________________________
Address: ______________________________________________
Telephone: ______________________________________________
Email: ______________________________________________
Primary Term: _________ (At least seven years and up to 20 years (all bids should propose terms in one-year increments, expiring on March 31)).
MSQ: _________ Dth
Required MDIQ = MSQ / 45*
Required MDWQ = MSQ / 30*
*SNG may consider other proposed ratios if economically feasible, on a not unduly discriminatory basis.
Reservation Rate Election ($ per Dth of MSQ per month):
□ Recourse Rate (subject to change based on final cost of the Project Capacity)
□ Negotiated Rate: _________ (fixed rate not subject to overrun calculation)
Submitted by:
Name: ______________________________________________
Signature: ______________________________________________
Signature of Duly Authorized Officer or Representative
Date: ______________________________________________
Please return this form to:
Email: BDSouth@kindermorgan.com
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