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TSP/TSP Name:  30669048-WYOMING INTERSTATE CO. Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  CAPACITY FOR SALE
Notice Eff Date/Time:  11/16/2022 8:13:30AM Notice End Date/Time:  11/19/2022 9:00:00am
Post Date/Time:  11/16/2022 8:13:30 AM Notice ID: 120844
Reqrd Rsp:  5 Rsp Date:  11/19/2022
Notice Stat Desc:  SUPERSEDE Prior Notice:  120833
Subject:  Supplement Med Bow Jct Mainline Cap OS
Notice Text:

Wyoming Interstate Company, L.L.C. ("Transporter") is providing this supplement to the open season posted on November 9, 2022 (Notice ID 120833) to add secondary receipt and delivery points.

 

Med Bow Junction Mainline Capacity

Open Season Notice of Available Firm Mainline Capacity

on Wyoming Interstate Company, L.L.C. (“Transporter”)

 

Bid Deadline – 4:00 PM Mountain Clock Time (“MT”), November 18, 2022

 

Portable Document Format (.pdf) file of Open Season:

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

 

Transporter has filed certain changes to its Rate Schedule FDBS with the Federal Energy Regulatory Commission (“FERC”) (“hereinafter the filing is referred to as “FDBS Filing”).  If approved and/or accepted without substantive change or in a form and substance acceptable to Transporter, a new logical point at the interconnect of Transporter's mainline and the Medicine Bow Lateral (referred to herein as the “Med Bow Junction” and may be changed later) will be created.  Transporter is offering mainline transportation capacity with a receipt point of the Med Bow Junction in this Open Season.  The obligations and rights in this Open Season and any executed associated firm transportation service agreement (“FTSA”) are conditioned upon Transporter receiving approval and/or acceptance of its FDBS Filing without substantive change or in a form and substance acceptable to Transporter.  Such a condition may, at Transporter's option, be included in an FTSA associated with an award of capacity in this Open Season.  See “Execution of FTSA” below.  All parties interested in participating in this Open Season are encouraged to review Transporter's filing submitted in FERC Docket No. RP23-170-000 on November 4, 2022.

 

Transporter is conducting a binding Open Season for capacity on its mainline as outlined below:

 

Rate Schedule:

FT

Volume / Maximum Delivery Quantity (“MDQ”):

28,150 Dth/day

Primary Receipt Point(s):

Med Bow Junction (PIN TBD)

Primary Delivery Point(s):

Bowie (PIN 800104)

Secondary Receipt and Delivery Point(s):

The capacity offered in this Open Season will include the right to utilize the following points together on a secondary basis at the same contracted rate as awarded for primary points:

 

Secondary Receipt Pont:

Bowie (PIN 800104)

 

Secondary Delivery Point:

Med Bow Junction (Pin TBD)

Rate:

Transporter will consider negotiated reservation rates, not subject to the maximum or minimum tariff rates, equal to or less than the maximum Mainline reservation rate for the primary points listed above and at the awarded Mainline reservation rate for the primary points plus ten (10) cents per Dth per Day for the use of any secondary receipt or delivery point(s) located on Transporter's mainline with the exception of secondary points listed above  (although Transporter reserves the right to ultimately reject any bid which fails to comport with the provisions of this open season).

Other:

Transporter will permit bids that are conditioned on the right of the bidder if successful in this Open Season to notify Transporter by 5:00 PM MT on the later of: 1)  November 30, 2022; or 2) two (2) business days after the date of an issuance of an order by FERC that either rejects the FDBS Filing or approves and/or accepts the FDBS filing with material conditions or changes, for which the required approval of its management and/or board of directors or other appropriate management structure has not been received in order to proceed with acquiring the transportation awarded in this Open Season because of such an order.  The notification must use the same process as submitting bids as explained below.  Upon such proper notification, the successful bidder shall have no further obligations under the terms of this Open Season.  Such condition must be stated on the submitted bid sheet.

Capacity Available Starting:

The later of: 1) December 1, 2022; or 2) two (2) business days after Transporter receiving approval and/or acceptance of its FDBS Filing without substantive change, or in a form and substance acceptable to Transporter in its sole discretion.  Transporter will notify any successful shippers within two (2) business days whether the order on the FDBS Filing constitutes such approval and/or acceptance.  Shipper may specify “earliest possible date” on the Bid Sheet.

Open Season Start:

November 9, 2022 at 4:00 PM MT

Open Season End:

November 18, 2022 at 4:00 PM MT

Award Notification:

November 25, 2022 at 4:00 PM MT

Bid Submittals:

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:

Upon notice at any time and in its sole discretion, Transporter reserves the right to terminate this Open Season, to extend any date or time specified in this Open Season or to otherwise modify this Open Season.

 

Bid sheets must include the bidding party's name, Open Season Name, (Med Bow Junction Mainline Capacity), quantity, term, and rate.

 

By submitting a bid sheet, the bidding party certifies that:

(a) All information contained in the bid sheet is complete and accurate;

(b) It satisfies, or will be able to satisfy, all the requirements of Transporter's FERC Gas Tariff, Third Revised Volume No. 2, (“FERC Gas Tariff”), as the same may be amended from time to time; and

(c) The person submitting the bid sheet has full authority to bind the bidding party.

 

Multiple independent bids may be submitted. Submitted bids for this Open Season, however, may be withdrawn by providing written notice of withdrawal to Transporter prior to the date and time of the Open Season End stated above and using the same process as submitting bids as described above.  Transporter will use the time and date stamp on Transporter's e-mail box to determine a timely withdrawal.  Once a submitted bid is withdrawn, another subsequent bid may be submitted by the same bidding party if and only if the subsequent bid is at a higher present value (“PV”).  Any subsequent bid with a PV equal to or lower than the withdrawn bid will be considered invalid

 

Bids submitted in this Open Season on or before the date and time of the Open Season End, that have not been properly withdrawn or considered invalid will constitute a binding irrevocable offer by the bidding party to contract for capacity.  The award of the capacity in the 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.

 

Transporter will consider written requests included on the Bid Sheet for a contractual right of first refusal (“ROFR”).

 

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 Lost and Unaccounted-for gas (“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 Tariff rate (see the description in the bid sheet), bids stated as the dollar equivalent of the current maximum Tariff 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.  Finally, the term must begin on the first day of the applicable month and end on the last day of the applicable month.

 

Transporter also reserves the right to seek clarification of any bid (including, without limitation, the rate, quantity, term, or receipt or delivery point(s)) but shall not be required to do so. To be considered, any responding 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 and, in the case of conflict with the earlier submitted binding bid, shall control.

 

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 a Firm Transportation Service Agreement (“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 two(2) 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 cancel the successful bidder's binding bid without prejudice as to Transporter's 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 0.4100% (which is the annual discount rate of 4.91% divided by 12).

n = the number of months from the earliest date the capacity is available in the Open Season to the last 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

**Med Bow Junction Mainline Capacity**

 

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:                             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

 

Receipt Point(s)

Receipt Point Quantity (Dth/day)

Delivery Point(s)

Delivery Point Quantity (Dth/day)

Med Bow Junction

 

Bowie (PIN 800104)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

C. Reservation Rate (read carefully and select one):

 

         Maximum Tariff Rate (i.e., the applicable maximum rate stated in Transporter's FERC Gas Tariff as that rate may change from time to time)

 

         Discounted Rate:  $ _____ per Dth per month or $ _____ per Dth per day (this rate is subject to the applicable maximum and minimum rates stated in Transporter's FERC Gas Tariff as those rates may change from time to time)

 

         Negotiated Rate:  $ _____ per Dth per month or $ _____ per Dth per day (this rate will be fixed and NOT subject to the applicable maximum or minimum rates stated in Transporter's FERC Gas Tariff as those rates may change from time to time)

 

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.

 

D. Applicability of Commodity and Other Charges:

 

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.

 

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