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Notice of Open Season 168
OS168 - Long Term Firm Storage and Firm Storage Transportation Capacity

STATUS IS:
CLOSED

POSTED: 12/2/2010
TERM:12/2/2010
- 1/14/2011
3-4-2011 - Most of the FSS capacity offered in this open season was contracted at maximum tariff rates. Requested discounts resulting in combined unit rates within the range of 74 and 90 cents per Dth were also accepted.

1-28-2011 - Contracts have been tendered.

1-15-2011 - Bids on this Open Season have been reviewed. Addtional capacity remains available on a post-Open Season basis. Discounts on this capacity will be accepted.

 

National Fuel Gas Supply Corporation

OPEN SEASON - OS168

LONG TERM FIRM STORAGE AND FIRM STORAGE TRANSPORTATION CAPACITY

 

CAPACITY:

National Fuel Gas Supply Corporation (“National”) is pleased to announce the availability of 5,303,979 Dth of firm storage service and associated firm transportation service under its Firm Storage Service (“FSS”) and Firm Transportation Service (“FST”) Rate Schedules. This firm storage capacity is available in three packages, each with the unique injection and withdrawal rights outlined below.

 

OFFERING

CHARACTER

 OF SERVICE

CAPACITY (DTH)

MDIQ

MDWQ

Package #1

110 Day

3,426,479

20,156

31,150

Package #2

  95 Day

1,757,500

9,764

18,500

Package #3

  60 Day

120,000

1,000

2,000

 

OPEN SEASON TIMEFRAME

Commences December 2, 2010 and expires at 11:00am (Eastern Time) on January 14, 2011.

 

 

TERM REQUREMENTS

Storage Services commence April 1, 2011. There is a one-year minimum term, and no maximum term requirement.

 

 

INJECTION AND WITHDRAWAL RIGHTS:

The following identifies the injection and withdrawal rights that apply.  For all offerings, please note:

  • Injection Period - April 1 through October 31
  • Withdrawal Period - November 1 through March 31
  • MSQ - Maximum Storage Quantity

 

Package #1 – 3,426,479 Dth of 110-day service

Period

MSQ Inventory

Inj/WD Rights

Inj/WD Quantities

Injection Period

 

0%-70%

71%-100%

1/170 of MSQ

1/200 of MSQ

20,156

17,132

Withdrawal Period

 

100%-31%

30%-16%

15%-0%

1/110 of MSQ

1/120 of MSQ

1/150 of MSQ

31,150

28,554

22,843

 

 

Package #2 – 1,757,500 Dth of 95-day service

Period

MSQ Inventory

Inj/WD Rights

Inj/WD Quantities

Injection Period

 

0%-80%

81%-100%

1/180 of MSQ

1/200 of MSQ

9,764

8,788

Withdrawal Period

 

100%-26%

25%-11%

10%-0%

1/95 of MSQ

1/180 of MSQ

1/360 of MSQ

18,500

9,764

4,882

 

 

Package #3 – 120,000 Dth of 60-day service

Period

MSQ Inventory

Inj/WD Rights

Inj/WD Quantities

Injection Period

 

0%-100%

 

1/120 of MSQ

 

1,000

Withdrawal Period

 

100%-21%

20%-0%

1/60 of MSQ

1/75 of MSQ

2,000

1,600

 

FST RECEIPT AND DELIVERY POINTS:

Please refer to attached Exhibit A for a complete list of available points.

 

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 be 1.4% fuel and loss retention/LAUF.

 

 

BID RANKING AND CAPACITY AWARD:

During the posting period, National will accept requests for the FSS and FST capacity as outlined above.  Requests for rate discounts will not be considered for these offerings.  

 

Shippers may request all or part of the available capacity, and are allowed to revise their bids within the posting period.  For the purposes of allocating the 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. 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 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, a ratable capacity allocation shall be determined, subject to other conditions in this posting. Bids that are prorated for any reason are considered to have been awarded at the reduced MSQ.

 

The FST receipt and FST delivery point capacities represented in Exhibit A reflect that which is the total capacity availabe.   Each awarded bid may reduce the amount of remaining FST receipt or FST delivery point capacity available for subsequent awards under any package of service.  However, in addition to indicating on the Bid Form preferred primary FST receipt and FST delivery points, bidders may also indicate alternative FST primary receipt and/or FST primary delivery points.  Should the capacity at the requested alternative points be available, National shall award FST capacity pursuant to the bid ranking method described above to/from such alternative points in order to fulfill the storage request.

 

Credit Requirements:

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

 

EXECUTION OF AGREEMENTS:

Successful bidders will be required to execute and return the Service Agreements resulting from this Open Season within 30 days of receipt. 

 

BID DOCUMENTS:

All requests must be submitted using a Service Request Form (“SRF”) and a Bid Form.  Bidders may complete an SRF online, download the PDF version from our website (www.nationalfuelgas.com), or obtain one by contacting our Marketing Department at 716.857.7740.  Bid forms may be downloaded here.  If not submitted online, the completed forms can be, mailed or faxed to the address listed below:

National Fuel Gas Supply Corporation

6363 Main Street

Williamsville, NY 14221

PHONE: 716.857.7740

FAX 716.857.7310

National Fuel Marketing Representatives:

Terry Falsone – 716.857.7602

Joe Kolis – 716.857.7520

Gen Dispenza – 716.857.6945

 

 

 

 Exhibit A

                                                                                                                                           Combined Offerings

FST

 FST

 

 RECEIPT

 DELIVERY

System

 CAPACITY

 CAPACITY

Area

DTH/D

 DTH/D

TGP

Hamburg E.Eden

020076

Northern

7,263

x

TGP

Andrews Settlement / Rose Lake

020578/020527

Eastern

13,265

41,650

TGP

East Aurora

020077

Northern

30,920

11,225

TGP

Nashville

020243

Northern

7,263

x

TGP

Lamont

020072

Western

5,278

x

TGP

Mercer

020069

Western

5,278

x

Transco

Leidy

7126

Eastern

30,920

41,650

Transco

Wharton

6325

Eastern

x

21,334

TETCO

Leidy

75977

Eastern

x

x

TETCO

Bristoria

70015

Western

5,278

x

DTI

Ellisburg Station 1

41202

Eastern

30,920

41,650

Millennium

Independence

2078

Eastern

25,642

23,818

TCO

Ellwood City

600065

Western

1,770

27,500

TCO

Lewis Run

637062

Western

x

3,392

TCPL

Niagara

010902

Northern

30,920

x

Equitrans

Three Rivers

TRP2688

Western

5,278

20,000

Empire

Pendleton

012003020

Northern

30,920

x

N/A

Appalachian Zone 1 (PA-West)

Various

Western

5,278

x

N/A

Appalachian Zone 2 (PA East)

Various

Western

5,278

x

N/A

Appalachian Zone 3 (NY)

Various

Northern

x*

x

NFGD

Nash Road

NFGDC-NASH

Northern

x

11,225

NFGD

Mineral Springs

NFGDC-MSMX

Northern

x

11,225

NFGD

Vicksburg

NFGDC-VICK

Northern

x

11,225

NFGD

Zoar

NFGDC-ZOAR

Northern

x

11,225

NFGD

Wheatland Loop

NFGDC-CAP

Western

x

51,650

NFGD

Mercer

PSA1101440/1441

Western

x

51,650

Norse

Little Valley

623906

Western

3,912

x

N/A

Handsome Lake

HLPWR

Western

x

51,650

N/A

United Refining

UNI2854

Western

x

12,000

 *Capacity may be available depending on specific meter location

 

Note:

Subject to point capacity limitations, Northern FST receipt points (injection) can be paired with Northern, Eastern, and/or Western FST delivery points (withdrawal)

Subject to point capacity limitations, Eastern FST receipt points (injection) must be paired with Eastern and/or Western FST delivery points (withdrawal).

Subject to point capacity limitations, Western FST receipt points (injection) must be paired with Western FST delivery points (withdrawal).

 

Receipt and Delivery capacity may also be available at the following points.  Please refer to the Supply web site Receipt and Delivery tables located within the “Informational Postings” area or contact a Marketing representative for details.

 

CITY GATE Kane Gas City Gate PSN1301336
CITY GATE Songer Gas Company PSN1427941
N/A Wycatt-Ashford, NY NSX9223491
CITY GATE Tn of Rushford City Gate RUSCG
CITY GATE Clarion River Gas City Gate CRGCG
CITY GATE Myers Gas Company PSX1427931
CITY GATE Pine Roe Gas PSN1201457
N/A Greentree Landfill GREENTO
N/A Imperial Landfill IMPTO
TGP Hebron 070001-Withdr
TGP Hebron 060001-Inj
CITY GATE Eastern Natural Gas ENGCG
CITY GATE Peoples Natural Gas PNGCG

 

 

Contact Our Marketing Department

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