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Notice of Open Season 182
OS182 - LONG TERM FIRM STORAGE AND FIRM STORAGE TRANSPORTATION CAPACITY

STATUS IS:
CLOSED

POSTED: 11/16/2012
TERM:11/16/2012
- 12/18/2012
12/18/2012 - Reviewing bid status

01/08/2013 - A portion of the capacity has been awarded. Remaining capacity is being marketed on a post open season basis; please contact your marketing rep for more information. Remaining capacity is available in the following manner:

(1) 1,100,000 MSQ of 110 day service; 526,550 MSQ of 60 day service

(2) 455,000 MSQ of 150 day service; 645,000 MSQ of 110 day service; 526,550 MSQ of 53 day service

(3) 455,000 MSQ of 150 day service; 1,171,550 MSQ of 75 day service

03/21/2013 - 455,000 MSQ of 150 Day service has been subscribed from the above available capacity. The current unsubscribed capacity has now been revised, please see below offers (offers 1 and/or 2 cannot be paired with offer 3). For more information please contact a NFGSC marketing representative.

(1) 526,460 MSQ of 53 Day Service

(2) 645,000 MSQ of 110 Day Service

(3) 1,171,460 MSQ of 75 Day Service

National Fuel Gas Supply Corporation

OPEN SEASON - OS182

LONG TERM FIRM STORAGE AND FIRM STORAGE TRANSPORTATION CAPACITY

CAPACITY:

National Fuel Gas Supply Corporation (“National”) is pleased to announce the availability of 2,115,000 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 being offered in three “Capacity Packages”, each with the unique injection and withdrawal rights outlined below:

 

Character of Service

CAPACITY (Dth)

MDIQ (Dth/d)

MDWQ (Dth/d)

 Capacity Package #1

60 Day

560,000

4,830

9,334

Capacity Package #2

110 Day

1,100,000

6,656

10,000

Capacity Package #3

150 Day

455,000

2,355

3,034

OPEN SEASON TIMEFRAME

Commences Friday, November 16th, 2012 and expires at 11:00am (EST) on Tuesday, December 18th, 2012.

 

 

TERM REQUREMENTS

Storage Services commence April 1, 2013.  There is no minimum or 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

 

Capacity Package #1 – 560,000 Dth of 60-day service

 

MSQ Inventory

INJ/WD Rights

INJ/WD Quantities (Dth/d)

Injection Period

0%-100%

1/120 of MSQ

4,666

Withdrawal Period

100%-20%

20%-0%

1/60 of MSQ

1/75 of MSQ

9,334

7,466

  

 

Package #2 – 1,100,000 Dth of 110-day service

 

MSQ Inventory

INJ/WD Rights

INJ/WD Quantities (Dth/d)

Injection Period

0%-70%

70%-100%

1/170 of MSQ

1/200 of MSQ

6,470

5,500

Withdrawal Period

100%-31%

30%-16%

15%-0%

1/110 of MSQ

1/120 of MSQ

1/150 of MSQ

10,000

9,166

7,334

 

Package #3 – 455,000 Dth of 150-day service

 

MSQ Inventory

INJ/WD Rights

INJ/WD Quantities (Dth/d)

Injection Period

0%-100%

1/200 of MSQ

2,275

Withdrawal Period

100%-0%

1/150 of MSQ

3,034

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)

$2.4826 per Dth/d

Capacity (monthly, applied to capacity)

$0.0381 per Dth

Injection/Withdrawal

$0.0391 per Dth

ACA Commodity Surcharge (injection and withdrawal)

$0.0018 per Dth

Surface Operating Allowance

1.31% on injection

1.31% on withdrawal

 

Firm Storage Transportation (FST):

Component

Maximum Tariff

Reservation (monthly, applied to MDWTQ)

$3.7805 per Dth/d

Commodity

$0.0135 per Dth

ACA Commodity Surcharge (applied to all transportation)

$0.0018 per Dth

Fuel and Loss Retention/LAUF

0.76% on injection

0% on withdrawal

0.76% on non-storage transport

 

 

FUEL and LOSS ALLOWANCE:

FSS: A total surface operating allowance of 2.62% shall be retained - 1.31% on injection and 1.31% on withdrawal.

 

FST: During withdrawal there shall be no fuel and loss retention/LAUF. During injection and non-storage transportation there shall be 0.76% fuel and loss retention/LAUF.

All Fuel and Loss Retention/LAUF rates are subject to change under the tracking mechanism guidelines in National’s GT&C Section 41 tariff sheets.

 

 

DISCOUNTS:

In this Open Season, National will accept and evaluate bids reflecting a discount below the maximum monetary rates for FSS storage service and FST transportation service if bids meet the conditions herein.  Such discount requests must (1) be submitted as a combined unit rate for FSS and FST service, (2) exceed the applicable predetermined Unit Rate Floor that National has established for each Capacity Package, and (3) propose a discount term not greater than two years.  National will reject any Open Season bid that does not meet these requirements.  National has not revealed the Unit Rate Floor to any person outside the company.

National will not accept requests for discounts on Fuel and Loss Retention/LAUF, or Surface Operating Allowance.  Bids requesting FSS only are ineligible for discounting.

 

For the purposes of converting an FSS/FST discounted unit rate bid into component rates, National will first discount the FSS injection and withdrawal charges, followed by the FST reservation charge, then the FSS capacity charge, then the FSS demand charge.  Note that FST discounts will be applicable only to transportation to and from National’s firm storage point.  For contracting purposes, any discount to the combined FSS/FST unit rate will have discounts applied to both FST and FSS.

 

BID FORMAT, 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.   Shippers may bid for more than one Capacity Package.  Bids 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.  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 and its bid is equal to the Storage Component of another bid or bids requesting 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.

An NPV ranking will be established across all Capacity Packages by evaluating all bids equal to or greater than the appropriate Unit Rate Floor.  Capacity will then be awarded utilizing a highest-to-lowest NPV methodology. 

The FST receipt and FST delivery point capacities represented in Exhibit A reflect the total capacity available across all three Capacity Packages.   Each awarded bid may reduce the amount of remaining FST receipt or FST delivery point capacity available for subsequent awards, and/or the amount of capacity remaining under a particular Capacity Package.  Should this occur, National and bidder reserve the right to mutually agree to alternative primary FST points and/or a prorated amount of storage capacity.

 

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:

Two documents must be submitted with all Open Season requests:  a Service Request Form, and a Bid Sheet.  Both documents are available on our web site (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

 

 

Exhibit A

                                                                                           Combined Offerings

   

METER NUMBER

 

SYSTEM AREA

        FST          RECEIPT

CAPACITY

DTH/D

 FST

DELIVERY

 CAPACITY

 DTH/D

TGP

Rose Lake

020527

Eastern

13,841

22,368

Transco

Leidy

7126

Eastern

13,841

13,034

Transco

Wharton

6325

Eastern

13,841

9,334

DTI

Ellisburg Station

41202

Eastern

13,841

0

Empire

Pendleton

12003020

Northern

13,841

0

TGP

Clarence

020497

Northern

13,841

0

TGP

East Aurora

020077

Northern

13,841

0

TCPL

Niagara

010902

Northern

13,841

0

Equitrans

Three Rivers

TRP2688

Western

0

22,368

NFGDC

MSW

NFGDC-NY

Northern

0

3,034

 

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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