DATE: June 11, 2021 TIME: 8:00 AM CT
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1306)
Tennessee Gas Pipeline Company, L.L.C. (“Tennessee”) is holding this Open Season in accordance with Article XXVI, Section 5 of the General Terms and Conditions of its FERC NGA Gas Tariff (as it may be in effect from time to time, the “Tariff”), commencing at 8:00 AM CT, Friday, June 11, 2021 and ending at 4:00 PM CT, Tuesday, June 15, 2021 (the “Open Season Period”). The capacity offered in this Open Season is the subject of a pre-arranged deal entered into pursuant to Article XXVI, Section 5.9 of the General Terms and Conditions of Tennessee's Tariff, the terms and conditions of which are disclosed below. Therefore, the customer under the pre-arranged deal (the “Pre-Arranged Shipper”) has the right to match the highest net present value (“NPV”) bid received in this open season. Capitalized terms that are used but not defined herein shall have the meanings ascribed to such terms in the Tariff.
Rate Schedule:
FT-A
Transportation Quantity (“TQ”):
Up to 33,784 Dth/d Tennessee will reject bids with a TQ higher than the TQ listed above.
Term:
November 1, 2021 through March 31, 2022 Tennessee will reject bids with a commencement date prior to November 1, 2021, or a termination date later than March 31, 2022.
Competing bids for this proposal must have a term beginning no later than November 1, 2021 and ending no later than March 31, 2022.
Primary Receipt Point(s):
54301 – Pooling Pt. Marcellus Zn. 4
Competing bids for this proposal must be identical to the receipt point listed above.
Primary Delivery Point(s):
420999 – Zone L Leg 500 Pool
Competing bids for this proposal must be identical to the delivery point listed above.
Secondary Receipt Point(s) at
which the rates
specified below apply:
All Secondary Receipt Points within the Transportation Path as defined in Tennessee's Tariff.
Secondary Delivery Point(s) at
All Secondary Delivery Points within the Transportation Path as defined in Tennessee's Tariff.
Monthly Reservation Rate:
The pre-arranged deal is at Tennessee's applicable Base Reservation Rate per Dth.
Commodity Rate for Primary
And Secondary
Deliveries:
The pre-arranged deal is at Tennessee's applicable Base Commodity Rate per Dth.
Other Charges
Shipper shall also pay ACA, applicable Fuel and Loss Retention (“F&LR”), Electric Power Cost Recovery (“EPCR”) charges, and all other applicable surcharges specified in Tennessee's Tariff, as may be in effect from time to time.
Up to 70,000 Dth/d. The pre-arranged deal is for 38,477 Dth/d.
Tennessee reserves the right to reject bids with a TQ higher than 70,000 Dth/d.
July 1, 2021 through December 31, 2021 Tennessee will reject bids with a commencement date prior to July 1, 2021, or a termination date later than December 31, 2021.
Competing bids for this proposal must have a term beginning no later than July 1, 2021 and ending no later than December 31, 2021.
405345 – Zone 0 Leg 100 South Pool
420826 – Zone 0 Leg 100 North Pool
Shipper shall also pay ACA, applicable F&LR, EPCR charges, and all other applicable surcharges specified in Tennessee's Tariff, as may be in effect from time to time.
Without limiting or waiving any other rights that Tennessee may have with respect to this Open Season, Tennessee reserves the following rights:
1. At any time during this Open Season, upon notice and in its sole discretion, to terminate this Open Season, to extend the Open Season Period, or to modify this Open Season.
2. To clarify and finalize 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 Tennessee shall have no obligation to do so.
3. On a not unduly discriminatory basis, to reject any bid or service request that, in Tennessee's sole determination, is incomplete, is inconsistent with the terms of this Open Season, contains additions or modifications to the terms of this Open Season, is otherwise deficient in any respect (including failure to provide credit support as Tennessee deems necessary), or requests service outside the scope of this Open Season.
4. To reject any bid that does not specify capacity within the paths posted above.
5. To award capacity to mutually agreeable alternate receipt or delivery points if capacity is unavailable at the meters specified in the bid.
6. To award capacity for a quantity less than the bid quantity, if sufficient capacity is not available to award the entire bid quantity.
7. To reject any bid that will result in a reduction of reservation charges.
8. To reject negotiated rate bids.
9. To reject contingent bids.
This Open Season is for capacity available for the receipt/delivery point paths specified above. In order to be considered eligible to be awarded capacity following this Open Season, a potential shipper must submit a bid that specifies terms, volumes, receipt points and delivery points that are consistent with the respective dates, quantities and associated receipt and delivery zones outlined above. All Bids should refer to Open Season #1306.
Available capacity volumes are contingent upon mainline, meter and lateral capacity. Bids cannot exceed the above-stated maximum quantities.
Parties interested in this capacity should submit binding Firm Transportation bids via e-mail by e-mailing their bids to TGPBidroom@kindermorgan.com. Any party may confirm Tennessee's receipt of its bid by contacting the Bidroom between 8 A.M. and 5 P.M. CT, Monday through Friday (unless such day is not a business day).
All bids submitted during this Open Season may be replaced with a higher NPV bid during the Open Season Period. Bids cannot be replaced with lower NPV bids. Upon completion of this Open Season, all bids (including validly submitted replacement bids) will be considered binding until a successful bid(s) has been awarded.
The pre-arranged deal and all of its terms and conditions are subject to Tennessee's Tariff, as amended from time to time, and to all valid and applicable laws, orders, directives, rules, and regulations of duly constituted authorities having jurisdiction. In accordance with Article XXVI, Section 5.9 of the General Terms and Conditions of Tennessee's Tariff, Tennessee is posting the terms of the pre-arranged deal on DART in this Open Season for competitive bidding as provided herein, and the Pre-Arranged Shipper shall have a one-time right within 2 business days of notification to match any bids with a higher NPV in order to obtain the capacity.
The above-specified contract terms represent the minimum contract terms that Tennessee is willing to accept for the capacity underlying the respective proposals. Bids for less than the minimum contract terms will be rejected.
In the event that bids are received in this Open Season with a higher cumulative NPV than the pre-arranged deal, the Pre-Arranged Shipper may either match the cumulative NPV of the bid(s) or forfeit its rights to all of the capacity included in the pre-arranged deal.
All final bids for each proposal received during this Open Season will be evaluated on an NPV basis using the following factors:
NPV = En[R*(1/(1+i)**n)]
En = Summation of months 1 through n (Sigma)
n = term in months
R = Incremental monthly revenue
i = Monthly Discount Factor of 0.8333%
Tennessee reserves the right to accept any one bid or combination of bids that will result in the largest aggregate NPV for the aforementioned package(s).
Britton Durio (713) 420-4205
Caitlin Harris (713) 420-2915
Adam Ledet (713) 420-4813
Scott Minear (713) 420-5177
Greg Pollard (713) 420-7149
Email - TGPBidroom@kindermorgan.com