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Notice of Open Season 167
OS167 - Expansion Capacity From New and Existing Interconnects along Line N corridor with Delivery to TETCO at Holbrook Station (M2)

STATUS IS:
CLOSED

POSTED: 10/28/2010
TERM:10/28/2010
- 11/19/2010
7/11/2011 - As filed with FERC in July 2011, the final project design for National's Line N 2012 project will provide transportation capacity that exceeds the 150,000 dth/day currently under Precedent Agreement. Approximately 14,000 Dth/day of additional capacity is available with receipts from the North Sewickley area in Beaver County, PA and delivery to TETCO at Holbrook - though the amount to be contracted may vary depending on the specific requested receipt point location(s).

National Fuel Gas Supply Corporation          

           

OPEN SEASON – OS167

 

Long-Term Firm Transportation Capacity

 

Expansion Capacity From New and Existing Interconnects along Line N corridor with Delivery to TETCO at Holbrook Station (M2)

 

 

National Fuel Gas Supply Corporation (“National”) is pleased to announce the commencement of an Open Season for firm transportation capacity from new and existing interconnects along National’s Line N system in Pennsylvania to our proposed interconnect with Texas Eastern Transmission at Holbrook Station in Greene County, Pennsylvania.  This capacity will be made available by the facilities associated with National’s Line N Phase II Expansion (OS160).

Capacity:

The project design for OS160 has been finalized, including compression unit selection, and National has determined that the design makes available capacity in excess of the contracted 150,000 Dth/day.  In this Open Season 167, National will award capacity requests specifying receipt points that allow for a total capacity award of 45,000 Dth/day, based on pipeline system hydraulics.  This award process may limit receipt point requests north of the Lynn Portal Road area.  Such requests may be subject to proration, to zero if necessary, to the extent they would prevent National from making available 45,000 Dth/day of additional transportation service.

 

Receipt Points:

Available firm receipt points include all new and prospective local production interconnects along Line N located in Washington, Greene, and Beaver County, PA.  Other receipt points may be available - bidders are encouraged to contact a National Fuel marketing representative regarding availability.  As noted above, service from receipt points north of the Lynn Portal Road area is subject to proration to the extent necessary to enable National to make available 45,000 Dth/day of additional transportation service.

Delivery Points:

Firm delivery point of Texas Eastern at Holbrook Station (M2). 

 

Open Season Posting Period:

This Open Season commences October 28, 2010 and will continue until 11:00 a.m. (Eastern Time) on November 19, 2010.

 

Commencement of Service: 

Transportation service for the project described in this offer can commence the later of November 1, 2012, or upon the completion of required facilities.  Shippers may request commencement of service anytime between November 1, 2012 and November 1, 2013.

 

Term:

Capacity is available on a long-term, year-round basis.  A ten-year minimum term is required.

Rates:

National’s maximum tariff FT rates are applicable to the transportation service being offered in this Open Season:

 

 

Maximum Tariff Rate

FT Rate Component

$3.3612 per Dth/day

Reservation Charge (monthly, applied to contract MDTQ)

$0.0063 per Dth

Commodity Charge (daily, applied to Dth quantity transported)

$0.0019 per Dth

FERC ACA Surcharge

1.4%

Fuel and Company Use/LAUF

$0.1168/dth

100% Load Factor Rate (excl. surcharges)

 

National Fuel reserves the right to propose incremental rates in Precedent Agreements if warranted by the project economics.

 

Bid Format and Award Process:

During the Open Season period, National Fuel will accept requests for this transportation service under National Fuel’s FT rate schedule.  Requests for rate discounts will not be accepted. 

 

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 proposed service commencement date, and will utilize a monthly rate of 0.8% for discounting purposes.

 

In the event that multiple shippers submit requests that are equivalent in value and term, the available capacity shall be prorated to those shippers based on the quantities requested. 

 

As noted above, service from receipt points north of the Lynn Portal Road area is subject to proration to the extent necessary to enable National to make available 45,000 Dth/day of additional transportation service.

 

Credit Requirements:

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

 

Execution of Agreements:

Participation in this Open Season is non-binding for bidders and National Fuel.  However, precedent agreement(s) resulting from this open season will commit the parties to the rights and obligations stated therein.  Successful bidders will be required to execute and return the precedent agreements resulting from this Open Season 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

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

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

Genevieve Dispenza       (716) 857-6945

The results of this Open Season will be posted on National Fuel's web site, http://www.nationalfuelgas.com.

Contact Our Marketing Department

Return to Open Season Index

 

 


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