Kanda Junction to Topaz Ridge
Open Season Notice of Available Firm
Capacity on Wyoming Interstate Company, L.L.C. (Transporter)
Bid Deadline – 2:00 PM Mountain Time
(MT), January 21, 2021
Portable Document Format (.pdf) file of Open Season:
Kanda Junction (800348)
Topaz Ridge (941002)
Parties that are interested in
capacity at and from other primary receipt points or at and to other primary
delivery points, or for other periods, should contact their service
representatives or any of the individuals listed below.
The capacity offered in this Open
Season will include the right to utilize the following points on a secondary
basis at the same contracted rate:
Baxter to WIC (800116)
Bitter Creek (800115)
Flying Hawk (800245)
Lost Creek (896043)
Rawlins to WIC (800666)
Red Rim (800633)
Wamsutter to WIC (800760)
Thunder Chief (800716)
Piceance Junction (800561)
2:00 PM, January
12, 2021 Mountain Time
2:00 PM, January
21, 2021 Mountain Time
2:00 PM, January
28, 2021 Mountain Time
To bid, complete
the attached bid sheet and email it to KMWestBids@KinderMorgan.com. Transporter reserves the right to reject any bid
which fails to comport with the provisions of this open season.
Transporter will rely upon the time an emailed bid is received to determine
whether a bid is timely. Bids that are received after the end date and time
listed above (as determined by the time stamp on Transporter's email inbox)
will be considered invalid bids and will not be eligible for an award of
capacity in this Open Season. Transporter recommends that bids be submitted
well in advance of the closing time listed above to minimize the risk that
any email delay could cause a bid to be excluded from consideration.
capacity offered in this Open Season is available due to the termination
of an existing firm transportation agreement that utilizes capacity on the Dominion Energy Overthrust Pipeline, LLC
reserves the right to not make any awards of capacity in this Open Season if it
is unable to acquire sufficient capacity on Overthrust at rates, and under
terms and conditions of service that are acceptable
Transporter, in its sole discretion.
Bids must include the bidding party's name, Open
Season name (Kanda Junction to Topaz Ridge), quantity, term, and rate.
By submitting a bid, the bidding party certifies
(a) All information contained in
the bid is complete and accurate;
(b) It satisfies, or will be able to satisfy, all the
requirements of Transporter's FERC Gas Tariff; and
(c) The person submitting the bid
has full authority to bind the bidding party.
Bids submitted in this Open Season will constitute
a binding irrevocable offer by the bidding party to contract for capacity. The
award of the capacity in this open season will be an acceptance of the offer
parties shall be contractually bound at that time.
The bid rate must be presented as: (a) the
reservation rate per Dth/month, (b) the reservation rate per Dth/day (which
will be converted to a monthly rate by multiplying the daily rate times 365 and
dividing the result
by 12, rounded to the fourth decimal place), or (c)
the maximum tariff rate.
submitted in this Open Season may include a discounted reservation rate or the
maximum tariff reservation rate for the Transporter's Mainline. Because this Open Season offers a Primary Delivery Point
the system of Overthrust (such capacity is referred to herein as “Overthrust
capacity”) and therefore involves Third Party Charges. A bid of the maximum
tariff reservation rate or a discounted rate offers the
rate as the Mainline transportation reservation rate for firm
transportation from the Primary Receipt Point on the Transporter's Mainline to
the Primary Delivery Point on Transporter's Overthrust capacity.
contract that is the result of an award from this Open Season is also subject to Third Party Charges for the
Primary Delivery Point associated with the off-system capacity held on Overthrust
which shall be the basis of those specific additional charges under Section 4.5 of the General
Terms and Conditions of the Transporter's FERC
Gas Tariff. These charges include the actual reservation
charges Transporter pays
Overthrust under the firm transportation agreement for firm Overthrust capacity
to and including at the Primary Delivery Point. Thus, bids submitted would
result in payments for charges
associated with the Primary
Receipt and Delivery Points would include: 1) the bid at the discount or the
maximum recourse rate and is applicable to Transporter's Mainline (the current
maximum is a $2.4115/Dth
Monthly Reservation Rate); and
2) the actual Third Party Charges for the monthly reservation charges
associated with the relevant Overthrust capacity. Subject to change,
Overthrust's current maximum monthly
reservation rate is $1.6200/Dth.
Transporter will not agree to a rate higher than the applicable maximum
reservation rate. See below and Section 4.5 of the GT&C for a discussion
of Third Party Charges to be assessed.
Use of Secondary Receipt and
Delivery Points may result in additional charges associated with Mainline
reservation rates and Third Party Charges.
There will be no contractual right of first refusal
(“ROFR”) offered with this capacity. In regards to regulatory ROFR and per
Section 4.10(f) of the GT&C of Transporter's FERC Gas Tariff, Shipper may
not elect to
extend the term of its agreement beyond the term of
Transporter's agreement for the relevant Overthrust capacity.
In addition to the bid rate, each bidding party
shall be subject to the applicable maximum commodity rate and maximum commodity
surcharges, all other maximum rates, charges and surcharges, including ACA,
Fuel and L&U, and any other authorized
surcharges assessed under the applicable Rate Schedule of Transporter's FERC
Gas Tariff as may change from time to time. This includes incremental lateral
and any third party charges resulting from the use
of capacity that Transporter may hold on other pipelines, including but not
limited to the Third Party Charges for Overthrust capacity held by Transporter specifically
discussed earlier. Successful bidders, therefore,
are subject to the reservation charge, the usage charge, Fuel and L&U and
all other charges Transporter is obligated to actually pay for the relevant
and any third party charges resulting from the use
of capacity that Transporter may hold on other pipelines.
Transporter reserves the right to reject negotiated
rate bids, bids that have rates less than the maximum recourse rate, bids
stated as the dollar equivalent of the current maximum recourse rate, bids that
contain offers of varying rates within the term,
contain additional or modified terms or are inconsistent with the provisions of
Transporter's FERC Gas Tariff or this open season. Transporter also reserves
the right to reject
bids that do not reflect the same quantity for the
duration of the term.
reserves the right to seek clarification of bids that have what appears to be
an obvious error. Any clarification by bidders must be provided in writing and
within the time requested by Transporter.
Such clarifications shall be incorporated as part
of the binding bid submitted by the bidder.
Transporter notes that a
bidding party that is awarded capacity may be required to execute multiple
contracts if the bidding party bids for varying MDQ such that the MDQ will not
vary in each contract.
Transporter notes that FERC Order No. 894, in some cases, prohibits multiple affiliates of the same entity from bidding in an Open Season for capacity in which the pipeline may allocate capacity on a pro rata basis.
It appears to Transporter that the restrictions imposed by FERC Order No. 894 will be applicable in this Open Season and FERC recommends that potential bidders review and adhere to the requirements of that FERC Order.
The successful bidder(s) must satisfy the creditworthiness
requirements of Transporter's FERC Gas Tariff. Bidders that fail to satisfy such
creditworthiness requirements within a reasonable time will have their capacity
award withdrawn. Transporter will treat the
financial statements provided by bidders as confidential.
Execution of FTSA:
Each successful bidder and Transporter shall enter
into and execute an FTSA reflecting the terms of its bid as awarded by
Transporter. All successful bidders shall execute and return the FTSA within
the earlier of
the day before the first day of the term of firm
transportation service in the bid as awarded by Transporter or twenty (20)
business days following the day Transporter tenders the FTSA to the bidder
If a successful bidder fails to fully execute and
return the FTSA on or before the Execution Date, then Transporter reserves the
right to seek any and all permitted remedies as a result of the successful
to execute the FTSA. The FTSA will be in the form
contained in Transporter's FERC Gas Tariff. Transporter and any successful
bidder may mutually agree to enter into and execute more than one FTSA that
together reflect all the terms of the successful
bid as awarded by Transporter.
If Transporter receives
acceptable bids for capacity in excess of the actual amount of available
capacity, then Transporter will award and/or allocate the capacity in a manner
that yields the highest total PV as calculated below.
In determining which
bid(s) yield the highest total PV, Transporter reserves the right to combine
multiple bids, in whole or in part, in a manner that results in a total PV of
the combined bids that exceeds the highest PV
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).
PV 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
The PV for each month will be
calculated as follows:
PV = (R X Q)/((1+i) to the power
R = the monthly reservation bid
Q = the monthly bid quantity
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).
Questions concerning this Open Season should be directed to:
Cory Chalack (719) 520-3769
Damon McEnaney (719) 520-4472
Evelyn Spencer (719) 520-4753
John Driscoll (719) 520-4471
Randy Barton (719) 520-4667
Robin Janes (719) 667-7555
Thania Delgado (719) 520-4482
Open Season Bid Sheet
(See next page)
Open Season Binding Bid Sheet
Email Bid To: KMWestBids@KinderMorgan.com
Legal Name of
Name of Requesting
Title of Requesting
B. Capacity Bid:
Rate Schedule (e.g.
Requested Term End
Will you accept an
allocation of capacity if necessary
Receipt Point Quantity (Dth/day)
Delivery Point Quantity (Dth/day)
*The sum of the delivery point quantities at the primary delivery
location(s) must equal the MDQ.
Rate (select one):
Maximum Recourse Rate
Discounted Recourse Rate: $ _____ per Dth per month or
$ _____ per Dth per day
Negotiated Rate: $ _____ per Dth per month or
$ _____ per Dth per day
rates bid as a daily rate (i.e., a rate per Dth per day) will be converted to a
monthly rate by multiplying the daily rate times 365 and dividing the result by
12, rounded to the fourth decimal place.
addition to the bid rate, successful bidders will be subject to the applicable
maximum commodity rate and maximum commodity surcharges, all other maximum
rates, charges and surcharges,
ACA, Fuel and L&U, and any other authorized surcharges assessed under the
applicable Rate Schedule of Transporter's FERC Gas Tariff as may change from
time to time. This includes
lateral charges and any third party charges resulting from the use of capacity
that Transporter may hold on other pipelines.
*By submitting this binding bid to Transporter, the
bidding party certifies that (a) all information contained in the request is
complete and accurate, (b) it satisfies, or will be able to satisfy, all the
Transporter's FERC Gas Tariff, and (c) the person
submitting the bid has full authority to bind the bidding party.