Posted 7/31/2009 - National Fuel Gas Supply Corporation ("National") is extending the period of time within which tendered Precedent Agreements related to Open Seasons 129, 142 and 143 must be returned. With this posting, National is requiring that signed Precedent Agreements be returned not later than January 15, 2010. This extension will provide shippers with sufficient time to review the agreement language. It will also afford them the opportunity to participate in National's planned binding open season for transportation capacity from its FM100/FM120/Line K systems to Leidy, PA.
Posted 10/27/2008 - Open Season #142 providing up to 8.5 Bcf of storage service, and Open Season #143 providing capacity on the newly developed Appalachian Lateral and the previously announced West-to-East Project, closed on 10/3/08. Results for both open seasons were strong with more than 1 Bcf of transportation requests timely received. Requests focused on moving Appalachian sourced gas (Marcellus and other) and storage transportation. In addition, very substantial interest remains from the original West-to-East open season #129, focused principally on Rockies Express gas at Clarington, Ohio, which closed in mid-2007.
We are currently confirming the details of the requested capacity, particularly the location, pressure, and gas quality of future Appalachian production volumes. This information is populating a hydraulic model that will be used to optimize the transmission facility design. A construction cost estimate and rates will be developed from this. We currently anticipate providing shippers who have participated in any of the related open seasons with binding precedent agreements by Spring 2009. Longer term, assuming adequate binding support for the project, this will be followed with FERC NEPA Pre-filing community outreach this winter, and development of the FERC application during 2009.
National Fuel Gas Supply Corporation
REVISED (Deadline Extension) Open Season - OS143
Firm Long Term Transportation Capacity from New & Existing Appalachian Producing Areas
National Fuel Gas Supply Corporation (“National Fuel”) is pleased to announce the commencement of an Open Season for transportation capacity from new interconnects along the Appalachian corridor in southwestern and central Pennsylvania Counties to key northeast market interconnects, including Ellisburg, Leidy, and Corning.
The project as described herein includes the newly proposed Appalachian Lateral, designed to overlay and move gas from traditional and Marcellus producing areas east of Pittsburgh, PA to National Fuel’s Overbeck area. When combined with National Fuel’s West to East (“W2E”) facilities east of Overbeck, this expansion will provide at least 625,000 dth/d of capacity from the Greene County, PA area to eastern delivery points on the National Fuel system.
The project will also provide shippers with the opportunity to move gas to and from National Fuel’s 8.5 bcf storage expansion project involving the Galbraith, East Branch, and Tuscarora fields. The project scope involves the Appalachian Lateral described above, as well as 24” and 30” sections from Overbeck to Corning and incremental compression added at points along the route.
Please click here for project map.
Shipper requests for receipts upstream of Waynesburg will also be considered in this Open Season, including Clarington and points along National Fuel’s existing Line N.
Participation in this Open Season is non-binding for bidders and National Fuel. However, any precedent agreement resulting from this open season will commit the parties to the rights and obligations stated therein.
Project firm receipt points include but are not limited to: Potential interconnects along the Appalachian Lateral route, existing and proposed points along National Fuel’s original West to East corridor, and National Fuel Storage.
Project firm delivery points include but are not limited to: Northeast Market points - Interconnects with Millennium and Empire at Corning, Transco at Leidy, TETCO at Leidy, Dominion at Ellisburg and Leidy, Tennessee’s 200 and 300 Line, Transcanada at Niagara, and National Fuel Storage.
Shippers will have access to all National Fuel points on a secondary basis.
In addition, for shippers interested in short-range and/or interim transportation services, National Fuel will evaluate the facilities required to deliver Appalachian gas supplies to TGP at Lamont and TETCO at Bristoria. Deliveries to these points may be available well in advance of the November 1, 2011 Appalachian Lateral target commencement date, depending on project scope.
OPEN SEASON TIME FRAME:
Commencing August 5, 2008 and extending until 11:00 a.m. (Eastern Time) on Friday, October 3, 2008.
National Fuel reserves the right to reject bids with a proposed term of less than fifteen (15) years.
COMMENCEMENT OF SERVICE:
Transportation service for the project described in this offer commences as early as November 1, 2011.
Preliminary project rates (at 100% load factor, excluding surcharges) are below:
Zone 1 Appalachian Lateral Producing Area to Lamont $0.42
Zone 2 On-System Production and Storage at Lamont to Corning $0.20
National Fuel anticipates the project fuel/LAUF rate will be comparable to our combined system fuel/LAUF rate of 1.4%.
Bidders interested in firm transportation to and from storage will be subject to the applicable zone rate(s) based on shipper’s desired firm receipt point (for injection) and firm delivery point (for withdrawal). The above rates are based on engineering estimates. National Fuel reserves the right to re-evaluate the required facilities, costs, and rates.
BID FORMAT AND AWARD PROCESS:
During the Open Season period, National Fuel will accept requests for transportation service commencing as early as November 1, 2011.
Requests for rate discounts will not be considered during this Open Season. Shippers may request all or part of the advertised project capacity. All acceptable requests will be ranked and capacity awarded based on the highest net present value (NPV) of the reservation charge revenues, per unit of capacity (Dth/day) 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.
Bids for firm storage transportation service will be deemed conditional, subject to the results of a prospective storage expansion Open Season.
If National Fuel determines that the market interest is sufficient to support the system expansion as described, then National Fuel will proceed to obtain the required customer agreements. Although this is a non-binding Open Season, National Fuel intends to negotiate Precedent Agreements with winning bidders that will obligate National Fuel and the bidder to execute a service agreement upon satisfaction of certain conditions. National Fuel will attempt to negotiate Precedent Agreements with shippers submitting a bid in this Open Season prior to any other party. If all capacity created by the proposed expansion is not initially subscribed to Open Season bidders, National Fuel reserves the right to market this capacity post-Open Season without holding an additional Open Season.
Bids for transportation service to the TGP-Lamont and TETCO-Bristoria points as described in the “Delivery Points” section above will be evaluated and awarded separately using the NPV methodology described above.
National Fuel reserves the right to determine the economic viability of any required expansion(s).
Shippers will be required to demonstrate creditworthiness or provide a credit alternative acceptable to National Fuel.
Successful bidders will be required to execute and return a Precedent Agreement within 30 days of receipt.
OPEN SEASON BID PROCESS:
All Open Season requests must be submitted using a Service Request Form either by completing a Service Request Form online, or by downloading the PDF version from our website and submitting the completed form by mail or fax to:
National Fuel Gas Supply Corporation
6363 Main Street
Williamsville, NY 14203
Fax – (716) 857-7310
Questions can be directed to any one of the following Marketing Representatives:
Joe Kolis – (716) 857-7520
Terry Falsone – (716) 857-7602
George Linder – (716) 857-7105
The results of this Open Season will be posted on National Fuel's web site, http://www.nationalfuelgas.com.