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Notice of Open Season 136
OS136 - Available Firm Storage Service and Firm Storage Transportation (under FSS/FST Rate Schedules)

STATUS IS:
CLOSED

POSTED: 12/11/2007
TERM:12/11/2007
- 12/18/2007
Full capacity awarded and contract will be tendered to successful bidder.

National Fuel Gas Supply Corporation

OS 136 - Available Firm Storage Service and Firm Storage Transportation (under FSS/FST Rate Schedules)

CAPACITY:

National Fuel Gas Supply Corporation (“National Fuel”) is pleased to announce the availability of up to 1,500,000 Dth of firm storage service and associated firm transportation service under its FSS and FST rate schedules.

OPEN SEASON TIMEFRAME:

Commences December 11th , 2007 and extends until 1:00 p.m. (EST) on December 18th, 2007.

SERVICE TERM:

Term runs from January 1, 2008 through August 31, 2008. Requests for service commencing later than January 1, 2008 will not be accepted during this open season.

INJECTION AND WITHDRAWAL RIGHTS:

Injection Rights:

Withdrawal Rights:

January 1, 2008 through March 31, 2008

1/30th of Maximum Storage Quantity

April 1, 2008 through August 31, 2008
1/30th of Maximum Storage Quantity

 

PRIMARY RECEIPT AND DELIVERY POINTS AVAILABLE:

The following table lists the available injection receipt and withdrawal de livery points for the FST service associated with this storage offering and the applicable system operating constraint including backoff quantities.

 

 

PIPELINE

METER NAME

NUMBER

COUNTY

STATE

INJECTION

WITHDRAWAL

Empire

Pendleton

012003020

Niagara

NY

20 Mdth/d

 

Equitrans

Three Rivers

TRP2688

Beaver

PA

 

20 Mdth/d

TCO

Ellwood City

600065

Beaver

PA

 

20 Mdth/d

TCO

Independence/

Greenwood

COL2077

Allegany

NY

20 Mdth/d

 

 

Norcon Power

NOR2702

Erie

PA

 

20 Mdth/d

TGP

Rose Lake

020527

Potter

PA

30 Mdth/d

50 Mdth/d

Transco

Wharton

6325

Potter

PA

 

50 Mdth/d*

Transco

Leidy

7126

Clinton

PA

50 Mdth/d

50 Mdth/d*

TETCO

Leidy

75977

Clinton

PA

 

15 Mdth/d

 

* Total Wharton and Leidy withdrawals cannot exceed 50 Mdth/d

RATE INFORMATION:

Bids will be accepted under National Fuel's FSS and FST rate schedules. The maximum tariff rates under the FSS and FST Rate Schedules are listed in the tables below.

 

Firm Storage Service (FSS):

 

Component

Maximum Tariff

Demand (monthly, applied to withdrawal deliverability)

$2.1556 per Dth/d

Capacity (monthly, applied to capacity)

$0.0432 per Dth

Injection/Withdrawal

$0.0139 per Dth

ACA Commodity Surcharge (injection and withdrawal)

$0.0019 per Dth

Surface Operating Allowance

1.4% on injection

1.4% on withdrawal

Firm Storage Transportation (FST):

Component

Maximum Tariff

Reservation (monthly, applied to MDWTQ)

$3.3612 per Dth/d

Commodity

$0.0063 per Dth

ACA Commodity Surcharge (applied to all transportation)

$0.0019 per Dth

Fuel, Loss, and Company-Use/LAUF

1.4% on injection

0% on withdrawal

1.4% on non-storage transportation

 

FUEL and LOSS ALLOWANCE:

 

FSS: A total surface operating allowance of 2.8% shall be retained during injection and withdrawal (1.4% on injection and 1.4% on withdrawal).

FST: During withdrawal there shall be no fuel and loss retention/LAUF. During injection and non-storage transportation there shall 1.4% fuel and loss retention/LAUF.

BID FORMAT & DISCOUNT INFORMATION:

National Fuel will evaluate bids reflecting a discount below the maximum rates for FSS storage service and FST transportation service provided that the bid exceeds the applicable Unit Rate Floor as described below. No requests for discounts of fuel and loss retention will be accepted. Discounted bids must be submitted on a bid sheet (BID136) as a requested combined unit rate for FSS storage service and (if applicable) FST transportation service. For the purposes of converting a unit rate bid into component rates, National Fuel will first discount the FSS injection and withdrawal charges, followed by the FST reservation charge (where FST service is requested), then the FSS capacity charge, then the FSS demand charge. Any discount to the FST rate will be limited to transportation of gas to and from National Fuel's firm storage (NFSTOR).

 

National Fuel has predetermined a minimum acceptable Unit Rate Floor. National Fuel will reject any discount proposal below the applicable Unit Rate Floor. National Fuel has not revealed the Unit Rate Floor to any person outside the company.

RANKING BIDS & AWARDING CAPACITY:

For the purposes of allocating the available FSS capacity and the associated FST capacity, shippers will be ranked according to the net present value (NPV), per unit of storage capacity, of the sums of the FSS capacity charges, FSS demand charges and FST reservation charges as derived above. All bids equal or greater than the Unit Rate Floor will be evaluated in a single ranking. The NPV calculation will incorporate length of contract term and will utilize an annual rate of 9.6% for discounting. The "Storage Component" of a bid shall be the NPV, per unit of storage capacity, of the FSS capacity charge and FSS demand charge. In the event that a customer bids for FSS service only (no FST) and its bid is equal to the Storage Component of another bid or bids for both FSS and FST service ("Comparable Combined Service Bid"), the FSS only bid shall be considered equal in value to the Comparable Combined Service Bid with the highest value. In the event that National Fuel receives two or more bids of equal NPV, per unit of storage capacity, the bid with the shortest term will be deemed the best bid. Subject to other conditions in this posting, a ratable allocation, based on quantities requested, shall be made among shippers that submit bids that are equal with respect to both NPV and term.

 

CREDIT REQUIREMENTS:

Shippers will be required to demonstrate creditworthiness or provide a credit alternative acceptable to National Fuel.

 

SERVICE AGREEMENTS:

Successful bidders must execute and return service agreements within 3 business days after they are received. After service agreements are executed, the results of this Open Season will be posted on National Fuel's web site, http://www.nationalfuelgas.com/ , in the Supply Corp. section under Marketing News and Offers.

 

OPEN SEASON BID PROCESS:

 

All Open Season requests must be submitted on a Service Request Form (complete a Service Request Form online or download the PDF version , and include a Bid Sheet (BID136), both of which are available on our web site ( http://www.nationalfuelgas.com/ ) or by calling our Marketing Department at 716.857.7740. The completed form should be submitted online or via mail or fax as listed below:

 

National Fuel Gas Supply Corporation
6363 Main Street
Williamsville, NY 14221

FAX 716.857.7310

National Fuel Marketing Representatives:
Joseph Kolis - 716.857.7520

Terry Falsone - 716.857.7602
George Linder - 716.857.7105

 

 

Contact Our Marketing Department

Return to Open Season Index

 

 


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