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Notice of Open Season 173
OS173 - Long Term Firm Transportation Capacity in Northwestern Pennsylvania with Deliveries to TGP Station 219 at Mercer.

STATUS IS:
CLOSED

POSTED: 7/7/2011
TERM:7/7/2011
- 8/4/2011
2/1/2013 - National Fuel Gas Supply Corporation has executed a Precedent Agreement with Range Resources

1/18/2013 - Capacity for this open season has been fully contracted

11/9/2011-National Fuel Gas Supply Corporation ("National") is extending the period of time within which tendered Precedent Agreements related to Open Season 173 must be returned. With this posting, National is extending the deadline for signed Precedent Agreements until further notice.


8/4/2011-Bids are currently being evaluated


 NATIONAL FUEL GAS SUPPLY CORPORATION         

           

OPEN SEASON – OS173

 

Long Term Firm Transportation Capacity in Western Pennsylvania with Deliveries to TGP Station 219 at Mercer

Introduction

National Fuel Gas Supply Corporation (“National”) is pleased to offer Firm Transportation capacity from existing and prospective receipt points in western Pennsylvania to National’s existing interconnect with Tennessee Gas Pipeline (“TGP”) Station 219 at Mercer. 

 

The transportation service is offered under National’s Firm Transportation (“FT”) rate schedule, and it will provide successful bidders with access to the TGP pipeline system (200 and 300 Lines) and to TGP pooling at Station 219.

 

Facilities

National expects that firm transportation deliveries to Mercer would be made possible with the addition of compression and bi-directional measurement at National’s existing interconnect with TGP at Mercer.  

 

Available Capacity

The total amount of firm capacity awarded in this Open Season will depend on the requested paths, system hydraulics, and receipt/delivery point limitations.  National expects that it may be able to develop incremental capacity of as much as 150,000 Dth/day, but National reserves the right, in its sole discretion, to award total capacity greater or less than this amount based on project economics,

 

Project Area

Projected In-Service Date

National expects that the required facilities could be placed in service by September 1, 2013, although certain facility designs may allow for an earlier commencement.

 

Open Season bidders may specify an in-service date of as late as September 1, 2014 for all or a portion of their requested volumes.  Such requested commencement date shall be incorporated into the initial Net Present Value (“NPV”) calculation outlined in the “Bid Award Process” section below. 

 

Bidders may also express interest in commencement dates later than September 1, 2014 for all or a portion of their requested volumes.  Such requests will be handled separately as described in the “Bid Award Process” section below.

 

Open Season Schedule

Commences July 7, 2011 and expires at 11:00 a.m. (Eastern Time) on August 4, 2011.

 

Term

A minimum term of ten (10) years is required for all bids in this Open Season.

 

Receipt Points

The receipt points available for this firm capacity offering include but are not limited to existing and prospective producer interconnects, along with pipeline interconnects in western and central Pennsylvania.  Unless waived by National pursuant to its tariff, primary receipt points without real time measurement, communication and control capability will not be activated.  However, the commencement of service provided under this open season will not be contingent on the completion of either modifications to existing producer interconnects or construction of new producer interconnects.Available existing receipt points include the following:

 

Point Name

Meter Number

Imperial Landfill (from plant)

IMPFROM

TCO - Ellwood City

600065

Production meters within Appalachian Zone 1

 

Production meters within Appalachian Zone 2

 

 

Delivery Point

The delivery point available in this Open Season is National’s existing interconnect with TGP at Station 219 (Mercer).  Deliveries to TGP will be required to meet TGP’s tariff gas quality and interchangeability standards.

 

Rate Information

National expects to contract the firm transportation capacity offered in this Open Season at the existing maximum tariff rates for FT service.  Current maximum tariff rates for FT service:

Maximum 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 Commodity Surcharge (daily, applied to Dth quantity transported)

1.4%

*Fuel and Company Use/LAUF

$0.1168 per Dth 100% Load Factor Rate (excluding ACA surcharges)

*Fuel and Company Use retention for all applicable rate schedules is 1.15%. Transportation LAUF retention for all applicable rate schedules is 0.25%.National does reserve the right to propose in customer agreements an incremental transportation rate and/or fuel rate based on aggregate Open Season interest, project design, post-open season construction estimates, and overall project economics.

 

Bid Award Process

During the Open Season period, National will accept requests for firm transportation service with deliveries to Mercer under the FT rate schedule.  Bidders may request all or part of the estimated available capacity.  Requests for rate discounts or for discounts of fuel and loss retention will not be considered. 

 

National will award the capacity from bids received during the Open Season on the basis of NPV of (i) contract revenues (ii) less Nationals estimate of the cost of service associated with any related new facilities.  The NPV calculation will incorporate the maximum tariff FT rates as listed above, and the volume and term of service requested.  A monthly rate of 0.8% (9.6% annually) will be used for discounting purposes.  National will award the capacity to the combination of bids that generate the highest net present value for National.

 

An initial NPV ranking process will determine the capacity awards for requests with an in-service date of September 1, 2014 or earlier.  National may elect to include requests for service commencing later than September 1, 2014 in the initial project design if the resulting design is economical and bidders requesting a commencement date of September 1, 2014 or earlier are not prorated or rejected as a result.  If there are multiple requests with proposed commencement dates later than September 1, 2014, and National has the ability to accommodate additional volumes in its initial project design, such requests will be awarded by applying the same NPV and Award process described above to only these requests.  National may also, in its sole discretion, log such requests for subsequent expansion(s) to the Mercer delivery point. 

 

National reserves the right to maximize the amount of capacity awarded in this Open Season by considering the hydraulics and facility requirements associated with receipt point requests and any combination thereof, if applicable.  Equivalent winning bids that cannot be awarded in full will be awarded on a pro rata basis.  Shippers should indicate in their bids if their bid is contingent upon being awarded the full contract quantity of the bid or if they will accept a partial quantity.  In the event that bids are submitted in excess of the available capacity and they must be prorated, the bids will be prorated based on the quantities requested.

 

Participation in this Open Season is non-binding for bidders and National.

 

Bid Documents

All Open Season requests must be submitted on a Service Request Form.  The completed form may be submitted online or via mail or fax.

Questions may be directed to the Marketing Department at (716) 857-7740, or to one of the Marketing Representatives listed here:

 

Joe Kolis            (716) 857-7520
Terry Falsone      (716) 857-7602
Gen Dispenza     (716) 857-6945

 

The results of this Open Season will be posted on National's web site, http://www.nationalfuelgas.com/, in the Pipeline & Storage, Supply Corporation section under Marketing News and Offers.

 

Precedent Agreements

Successful bidders will be required to execute and return precedent agreements within 20 business days after they are received.

Contact Our Marketing Department

Return to Open Season Index

 

 


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