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Notice of Open Season 198
OS198 - LONG TERM FIRM STORAGE AND FIRM STORAGE TRANSPORTATION CAPACITY

STATUS IS:
CLOSED

POSTED: 9/4/2014
TERM:9/4/2014
- 9/15/2014
11/21/14: No bids were received. Capacity remains available on a post-open season basis. Please contact your marketing representative for details.

National Fuel Gas Supply Corporation

OPEN SEASON - OS198

LONG TERM FIRM STORAGE AND FIRM STORAGE TRANSPORTATION CAPACITY

CAPACITY

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

 

 

 

RATE SCHEDULES

CHARACTER OF SERVICE

CAPACITY (Dth)

MDIQ (Dth/D)

MDWQ (Dth/D)

OFFER #1

FSS/FST

150 Day

930,450

4,652

6,203

OFFER #2

FSS/FST

110 Day

44,000

251

400

 

OPEN SEASON TIMEFRAME

Commences September 4, 2014 and expires at 11:00am (ET) on September 15, 2014.

TERM REQUIREMENTS

Storage Services commence April 1, 2015. There is no minimum term or maximum term requirement.

INJECTION and WITHDRAWAL RIGHTS

Offer #1

930,450 Dth of 150 Day Service under the FSS & FST Rate Schedules

 

Maximum Storage Quantity (MSQ) Inventory

INJ/WD Rights

INJ/WD Quantities (Dth/d)

INJECTION PERIOD

April 1 – October 31

 

0% to 100%

 

1/200 of MSQ

4,652

WITHDRAWAL PERIOD

November 1 – March 31

 

From 100% to 0%

 

1/150 of MSQ

6,203

 

Offer #2

44,000 Dth of 110-day Service under the FSS & FST Rate Schedules

 

Maximum Storage Quantity

 (MSQ) Inventory

INJ/WD Rights

INJ/WD Quantities (Dth/d)

INJECTION PERIOD

April 1 – October 31

0% to 100%

1/180 of MSQ

244

WITHDRAWAL PERIOD

November 1 – March 31

From 30% to 100%

From 15% to 30%

From 10% to 15%

From 10% to 0%

1/110 of MSQ

1/120 of MSQ

1/135 of MSQ

1/150 of MSQ

400

367

326

293

 

RECEIPT and DELIVERY POINTS

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

RATE INFORMATION

The maximum tariff rates under the FSS and FST Rate Schedules are listed in the tables below.

 

Maximum Tariff Rates - 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, Currently (injection and withdrawal)

$0.0012 per Dth

Surface Operating Allowance (“SOA”)

as provided in National’s tariff –

see below

as provided in National’s tariff –

see below

 

Maximum Tariff Rates - 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, Currently (applied to all transportation)

$0.0012 per Dth

Fuel and Loss Retention/LAUF (“Fuel”)

on injection, as provided in National’s tariff – see below

0% on withdrawal

on non-storage transport, as provided in National’s tariff –

see below

 

FUEL and LOSS ALLOWANCES

Storage Operating and LAUF Allowance, and Transportation Fuel and Company Use Retention and Transportation LAUF Retention  will be established and subject to change under the tracking mechanism guidelines in National’s GT&C Section 41 tariff sheets. 

 

For informational purposes only, National’s current allowances are as follows:

FSS:  Storage Operating and LAUF Allowance of 0.79% on injection and 0.79% on withdrawal.

 

FST: During withdrawal there is no Transportation Fuel and Company Use Retention and Transportation LAUF Retention (collectively “Transportation Fuel/LAUF”).  During injection and non-storage transportation, the current Transportation Fuel/LAUF is 1.1%.

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 (BID198) 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 a Service Agreement 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

Anthony Limina – 716.857.7924

 

 

      

 

 Exhibit A

            

Available Receipt and Delivery Points

 

Pipeline

Point Name

METER NUMBER

FST RECEIPT

CAPACITY

DTH/D

FST DELIVERY

CAPACITY

DTH/D

TGP

Rose Lake

420527

Up to 4,652

Up to 6,203

Transco

Leidy

7126

Up to 6,203

Transco

Wharton

6325

Up to 6,203

Millennium Pipeline

Independence

402078

Up to 6,203

TGP

East Aurora

420077

Up to 4,652

TCPL

Niagara

421079

Up to 4,652

Empire

Pendleton

012003020

Up to 4,652

DTI

Ellisburg Station

41202

Up to 4,652

 

 

Additional Points:

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

 

CITY GATE

NFGDC Distribution – Island run

NFGDC-IR

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

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