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Notice of Open Season 178
Available Long Term Firm Storage and Transportation Capacity

STATUS IS:
CLOSED

POSTED: 11/1/2011
TERM:11/1/2011
- 11/30/2011
11/30/2011 - A portion of the capacity has been awarded. Capacity remains available on a post open season basis; please contact your marketing rep for more information.

1/10/2012 - Contracts have been tendered to successful biders.


 

National Fuel Gas Supply Corporation

OPEN SEASON - OS178

LONG TERM FIRM STORAGE AND FIRM STORAGE TRANSPORTATION CAPACITY

 

CAPACITY:

National Fuel Gas Supply Corporation (“National”) is pleased to announce the availability of 563,640 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 two packages, each with the unique injection and withdrawal rights outlined below.

 

 

CHARACTER

OF SERVICE

CAPACITY (DTH)

MDIQ

MDWQ

Package #1

150 Day

340,560

1,703 dth/d

2,270 dth/d

Package #2

110 Day

223,080

1,239 dth/d

2,028 dth/d

 

OPEN SEASON TIMEFRAME

Commences November 1st, 2011 and expires at 11:00am (Eastern Time) on November 30th, 2011.

 

 

TERM REQUREMENTS

Storage Services commence April 1, 2012. No maximum term requirement.

 

 

INJECTION AND WITHDRAWAL RIGHTS:

The following injection and withdrawal rights apply: 

 

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

 

Package #1 – 340,560 Dth of 150-day service

 

MSQ Inventory

Inj/WD Rights

Inj/WD Quantities

Injection Period

0%-100%

1/200 of MSQ

1,703 dth/d

Withdrawal Period

100%-0%

1/150 of MSQ

2,270 dth/d

 

Package #2 – 223,080 Dth of 110-day service

 

MSQ Inventory

Inj/WD Rights

Inj/WD Quantities

Injection Period

0%-100%

1/180 of MSQ

 

 

1,239 dth/d

 

 

 

Withdrawal Period

100%-31%

30%-16%

15%-11%

10%-0%

1/110 of MSQ

1/120 of MSQ

1/135 of MSQ

1/150 of MSQ

2,028 dth/d

1,859 dth/d

1,652 dth/d

1,478 dth/d

 

 

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'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)

$0.0018 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)

$0.0018 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 FORMAT & DISCOUNT INFORMATION:
National will evaluate 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,  and the term of the discount does not exceed two years. Discounted bids must be submitted on a bid sheet (BID178) as a requested combined unit rate for FSS storage service and (if applicable) FST transportation service. For the purposes of converting a unit rate bid into component rates, National 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’s firm storage (NFSTOR).

 

National has predetermined a minimum acceptable Unit Rate Floor for each offering. National will reject any discount proposal below the applicable Unit Rate Floor. National has not revealed the Unit Rate Floor to any person outside the company.

 

BID RANKING AND CAPACITY AWARD:
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 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 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 the total capacity available.   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 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 Open Season requests must be submitted on a Service Request Form. Complete the Service Request Form on-line or download the PDF version and include a Bid Sheet (BID178), both of which are available on our web site http://www.nationalfuelgas.com/) or by calling our Marketing Department @ 716.857.7740. The completed forms should be submitted online, via mail or fax as listed below:

 

National Fuel Gas Supply Corporation

6363 Main Street

Williamsville, NY 14221

PHONE: 716.857.7740

FAX 716.857.7310

 

NFGSC  Marketing Representatives:

 

Terry Falsone – 716.857.7602

Joe Kolis – 716.857.7520

Gen Dispenza – 716.857.6945

 

 

 

 

 

 

Exhibit A

             Combined Offerings

 

                                                                                                            

 METER

NUMBER

SYSTEM AREA

 FST RECEIPT

 FST DELIVERY

 CAPACITY

 CAPACITY

DTH/D

 DTH/D

TGP

Rose Lake / Andrews Settlement

020527/020578

Eastern

2,942

4,298

Transco

Leidy

7126

Eastern

2,942

4,298

Transco

Wharton

6325

Eastern

2,942

4,298

DTI

Ellisburg Station

41202

Eastern

2,942

X

Empire

Pendleton

12003020

Northern

2,942

X

Norse

Little Valley

623906

Northern

2,942

X

TGP

Clarence

020497

Northern

2,942

X

TGP

East Aurora

020077

Northern

2,942

X

TCPL

Niagara

010902

Northern

2,942

X

Millennium

Independence

2078

Eastern

X

2,270

Equitrans

Three Rivers

TRP2688

Western

X

4,298

TCO

Ellwood City

600065

Western

X

414

 

 

Notes:

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).

 

                                       

  Additional Points:

 

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

 

CITY GATE

NFGDC Distribution – PA

NFGDC-PA

CITY GATE

Kane Gas City Gate

PSN1301336

CITY GATE

Songer Gas Company

PSN1427941

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

CITY GATE

Eastern Natural Gas

ENGCG

CITY GATE

Peoples Natural Gas

PNGCG

 

 

 

Contact Our Marketing Department

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