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Notice of Open Season 151
OS151 - Available Firm Storage Service and Firm Storage Transportation (under FSS/FST Rate Schedules)

STATUS IS:
CLOSED

POSTED: 2/6/2009
TERM:2/6/2009
- 2/20/2009
Post Open Season capacity is available. Contact your Marketing Representative for details.

National Fuel Gas Supply Corporation

OS 151 - 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 1,000,000 Dth of firm storage service and associated firm transportation service under its FSS and FST rate schedules.

 

OPEN SEASON TIMEFRAME:

Commences February 6, 2009 and extends until 1:00 p.m. (EST) on February 20, 2009.

 

SERVICE TERM:

Term runs from March 1, 2009 through August 31, 2009.  Requests for service commencing later than March 1, 2009 will not be accepted during this open season.

 

INJECTION AND WITHDRAWAL RIGHTS:

Injection Rights:

Withdrawal Rights:

March 1, 2009 through March 31, 2009

1/30th of Maximum Storage Quantity

April 1, 2009 through August 31, 2009
1/30th of Maximum Storage Quantity

PRIMARY RECEIPT AND DELIVERY POINTS AVAILABLE:

The following table lists the available injection receipt and withdrawal delivery points for the FST service associated with this storage offering and the applicable system operating constraint:

PIPELINE

METER NAME

NUMBER

COUNTY

STATE

INJECTION

WITHDRAWAL

Empire

Pendleton

012003020

Niagara

NY

33 Mdth/d

Equitrans

Three Rivers

TRP2688

Beaver

PA

10 Mdth/d

TCO

Ellwood City

600065

Beaver

PA

30 Mdth/d

Millennium

Independence

2078

Allegany

NY

33 Mdth/d

10 Mdth/d

  

Norcon Power

NOR2702

Erie

PA

20 Mdth/d

TGP

Rose Lake

020527

Potter

PA

33 Mdth/d

33 Mdth/d

Transco

Wharton

6325

Potter

PA

33 Mdth/d*

Transco

Leidy

7126

Clinton

PA

33 Mdth/d

33 Mdth/d*

TETCO

Leidy

75977

Clinton

PA

33 Mdth/d

* Total Wharton and Leidy withdrawals cannot exceed 33 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)

$0.0017 per Dth

Surface Operating Allowance/LAUF

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)

$0.0017 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/LAUF 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:

In this Open Season, National Fuel will accept 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. All bids must be submitted on a bid sheet (BID151) as a requested combined unit rate for FSS storage service and (if applicable) FST transportation service. For the purposes of converting a discounted 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 shall 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 NPV.

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 using a Service Request Form (“SRF”) and a Bid Sheet (BID151). A SRF can be completed and submitted online, or it can be downloaded from our website in pdf format and mailed or faxed along with the Bid Sheet to:

 

National Fuel Gas Supply Corporation
6363 Main Street
Williamsville, NY 14203
Fax – (716) 857-7310

Questions can be directed to the Marketing Department at (716) 857-7740, or to any one of the following Representatives:

Joe 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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