Go to the National Fuel Gas homepage
Building on 100 Years...Delivering Energy
     

Click here to go to the Supply home page
Notice of Open Season 16
Long Term Firm No-Notice Storage Capacity

STATUS IS:
CLOSED

POSTED: 6/6/2016
TERM:6/6/2016
- 6/13/2016
06/15/2016 - Empire has awarded all capacity in OS16 and is in the process of tendering agreements.

EMPIRE PIPELINE, INC.

NOTICE OF OPEN SEASON

 

OPEN SEASON 016

Long Term Firm Storage Capacity

Introduction:

Empire Pipeline, Inc. (“Empire”) is pleased to announce the commencement of an Open Season for new Firm Storage No-Notice (“FSNN”) capacity to be made available to shippers with an existing Firm Storage No-Notice agreement.  The capacity offered in this open season will allow an existing FSNN contract holder the opportunity to request additional storage capacity.   Additional capacity requested in this open season will result in a character of service modification and will consequently require Empire to make necessary changes to its FSNN rate schedule. 

This Open Season can provide approximately 453,090 dth of storage capacity under Empire’s Firm Storage No-Notice (“FSNN”) Rate Schedules.

Projected Start Date:

Subject to sufficient and timely market commitments and necessary regulatory approvals, Empire expects the FSNN capacity could commence by August 1, 2016 but no later than January 31, 2017.

Term:

Empire requires a minimum term of nine (9) years for capacity requested in this Open Season, including any request for modification of existing FSNN contracts.    

Open Season Dates:

This Open Season 016 commences on Monday, June 6th, 2016 and will close at 5:00pm (EDT) on Monday, June 13th, 2016.

Available Capacity:

 

FSNN CAPACITY

MSQ (Dth)

MDIQ (Dth/d)

MDWQ (Dth/d)

453,090

0

0

 

The FSNN service offered in this Open Season is being made available through the anticipated lease of storage and associated transportation capacity from National Fuel Gas Supply Corporation to Empire.  The capacity being offered in this open season does not include any FSNN injection or withdrawal rights and must be subscribed to by an existing FSNN capacity holder in order for the bid to be considered as conforming within this open season.  Upon subscription of the capacity offered in this open season by an existing FSNN contract holder, the increased MSQ will require Empire to modify its 60 day character of service outlined in its FSNN Tariff Rate Schedule to a new character of service derived from the current FSNN ratchets and the increased FSNN MSQ.  The maximum tariff rates for the FSNN service will be as follows:

 

COMPONENT

MAXIMUM

TARIFF RATE

Demand (monthly, applied to MDWTQ)

$6.2631/dth/d

Capacity (monthly, applied to capacity)

$0.0381/dth

Injection/Withdrawal and Commodity

$0.0526/dth MAX

$0.0135/dth MIN

ACA Commodity Surcharge (injection/withdrawal, and all transportation)

$0.0014/dth

Surface Operating Allowance and Fuel and Loss Retention/LAUF

1.82% on injection

0.71% on withdrawal

100% Load Factor Rate (excluding ACA surcharges)

$1.815/dth

 

FSNN Discounts:

Empire will accept FSNN discount requests from the anticipated service commencement date of August 1, 2016.   Empire will first discount its Withdrawal Charge, followed by the Injection Charge, followed by the Demand Charge to the extent necessary to achieve the requested FSNN discount.  Empire has established a floor rate for the modified FSNN service, which is to be derived from a combination of OS016 capacity and an existing shippers FSNN capacity.   The newly modified service, which is a product of all capacity offered in OS016 and the bidding shippers existing FSNN service, must meet or exceed the floor rates created as a result of this open season for each of the following storage periods:

 

STORAGE PERIOD

FSNN UNIT

RATE FLOOR

August 1, 2016 – March 31, 2017

$0.8734/dth

April 1, 2017 – March 31, 2018

$1.4640/dth

 

Bid Format and Award Process:

In this Open Season, Empire will only accept bids requesting the modification and extension of existing FSNN agreements commencing August 1, 2016.  Requests for rate discounts will only be considered as described in the FSNN Discounts section above.   

The following process will be utilized to rank all acceptable requests:

  • FSNN capacity will be ranked, and the best bid(s) for FSNN determined based on the highest net present value (NPV) of the incremental demand and capacity charge revenues, per unit of capacity (Dth) requested.  The NPV calculation will incorporate length of contract term and will utilize a monthly rate of 0.8% (9.6% annually) for discounting purposes.  In the event that Empire receives two or more bids of equal NPV, the available capacity shall be prorated to those shippers based on the quantities requested.

Credit Requirements:

Shippers will be required to meet the credit requirements of the Precedent Agreement agreed upon by shipper and Empire prior to the close of the Open Season.

Execution of Agreements:

Participation in this Open Season is non-binding for bidders.  All Open Season requests must be submitted using a Service Request Form and Bid Sheet. Successful bidders will be required to execute and return service agreements within ten (10) calendar days after they are received.

  

The Service Request Form and Bid Sheet required for this binding Open Season 016 can be obtained by clicking the following links: 

Downloadable Service Request Form (PDF version)

Downloadable Bid Sheet (PDF version)

Completed bid documents can be returned by mail or fax to:    

Empire Pipeline, Inc.
6363 Main Street
Williamsville, NY 14221
Fax – (716) 857-7648

Inquiries can be directed to any one of the following Marketing Representatives:

Joe Kolis                    (716) 857-7520
Terry Falsone             (716) 857-7602

Anthony Limina          (716) 857-7924

Upon execution of agreements, the results of this Open Season will be posted online on Empire’s Open Season Index.

Contact Our Marketing Department

Return to Open Season Index

 

 

 


Privacy Policy
| Terms and Conditions| Disclosures Regarding Forward-Looking Statements | Home
© 1996- National Fuel Gas Company