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TSP/TSP Name:  30669048-WYOMING INTER. CO. Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  CAPACITY FOR SALE
Notice Eff Date/Time:  01/12/2021 2:35:30PM Notice End Date/Time:  01/22/2021 9:00:00AM
Post Date:  1/12/2021 2:35:30 PM Notice ID: 119693
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  WIC KANDA TO TOPAZ OPEN SEASON
Notice Text:
Open Season

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:

WIC: https://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=WIC&parent=1600

 

 

Rate Schedule:

FT

 

Volume / Maximum Delivery Quantity (“MDQ”):

17,857  Dth/day

Primary Receipt Point:

Kanda Junction (800348)

Primary Delivery Point:

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.

Secondary Receipt Points:

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)

Overthrust/WIC (800528)

Rawlins to WIC (800666)

Red Rim (800633)

Wamsutter to WIC (800760)

Wapiti (896017)

Creston (896054

Dullknife (896002)

Curley (800184)

Thunder Chief (800716)

Dover (800212)

Bowie (800104)

Piceance Junction (800561)

Kanda Junction (800348)

Secondary Delivery Points:

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:

 

Bowie (800104)

Bitter Creek (800115)

Dover (800212)

Dullknife (896002)

Flying Hawk (800245)

Little Wolf (896018)

Overthrust/WIC (800528)

Owl Creek (896026)

Rawlins to WIC (800666)

Rockport (896021)

Sitting Bull (896084)

Thunder Chief (800716)

Recommended Term:

Beginning August 1, 2021

Open Season Start:

2:00 PM, January 12, 2021 Mountain Time

 

Open Season End:

2:00 PM, January 21, 2021 Mountain Time

 

Award Notification:

2:00 PM, January 28, 2021 Mountain Time

 

Bid Sheet:

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.

 

NOTE:  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.

 

General Open Season Requirements:

The 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 (“Overthrust”). 

Transporter 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

to 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 that:

(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 and the

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.

 

Bids 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

on 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

bid 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.  

Any 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 acquired by

Transporter, 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 charges

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 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 charges

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 are incomplete,

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.

 

Transporter also 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.

 

Creditworthiness Requirements:

 

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 (“Execution Date”). 

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 bidder's failure

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.

 

Evaluation Criteria:

 

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 term.

 

The PV for each month will be calculated as follows:

 

PV = (R X Q)/((1+i) to the power of n)

Where:

R = the monthly reservation bid rate

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).

 

 

Contact Information:

 

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

Kanda Junction to Topaz Ridge

 

Email Bid To: KMWestBids@KinderMorgan.com

 

  1. Shipper Information:

 

Legal Name of Bidder:                                                     

 

Name of Requesting Party:                                             

 

Title of Requesting Party:                                                

 

DUNS Number:                                                               

 

Phone:                                                                              

 

B.   Capacity Bid:

 

Rate Schedule (e.g. FT):              FT                   

 

Requested Term Start Date:                               

 

Requested Term End Date:                                 

 

Maximum Delivery Quantity:                                 Dth/day

 

Will you accept an allocation of capacity if necessary     Yes                 No

 

Primary

Receipt Point

 

Primary

Receipt Point Quantity (Dth/day)

 

Primary

Delivery Point

Primary

Delivery Point Quantity (Dth/day)

Kanda Junction (800348)

 

Topaz Ridge (941002)

 

 

*The sum of the delivery point quantities at the primary delivery location(s) must equal the MDQ.

 

C. Reservation 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

 

Reservation 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.

 

In 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,

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 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 requirements of

Transporter's FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party.