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Notice of Open Season 200
OS200 - Firm Storage and Firm Storage Transportation Capacity

STATUS IS:
CLOSED

POSTED: 10/10/2014
TERM:10/10/2014
- 10/21/2014
11/21/14: This offer has been fully subscribed.

NATIONAL FUEL GAS SUPPLY CORPORATION

OPEN SEASON – OS200

FIRM STORAGE AND FIRM STORAGE TRANSPORTATION 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.

CAPACITY:

This firm storage capacity is being offered in two distinct "Packages", each with unique injection and withdrawal rights as outlined in the "Firm Injection and Withdrawal Rights" section below. 

        Package 1:   2,130,000 Dth  FSS/FST

        Package 2:   5,000,000 Dth  FSS/FST

TERM:

        Package 1:   November 1, 2014 through January 15, 2015.

        Package 2:   November 1, 2104 through August 31, 2015.

        Neither package shall have evergreen rights.

OPEN SEASON TIMEFRAME:

Commences Friday October 10, 2014, and expires at 11:00am (ET) on Tuesday October 21, 2014.

FIRM INJECTION and WITHDRAWAL RIGHTS:

        Package 1

                          Maximum Storage Inventory ("MSQ"):                        2,130,000 Dth

                          Injections*:             Nov 1, 2014 - Jan 15, 2015                  20,000 Dth/d

                          Withdrawals*:        Nov 1, 2014 - Dec 31, 2014                 30,000 Dth/d

                                                            Jan 1, 2015 - Jan 15, 2015                    20,000 Dth/d

        Package 2

                          Maximum Storage Inventory ("MSQ"):                        5,000,000 Dth

                          Injections*:             Nov 1, 2014 - Mar 31, 2015                 20,000 Dth/d

                          Withdrawals*:        Nov 1, 2014 - Dec 31, 2104                 30,000 Dth/d

                                                            Jan 1, 2015 - Jan 15, 2015                    20,000 Dth/d

                                                            Apr 16, 2015 - Aug 31, 2015               20,000 Dth/d

* The injection and withdrawal rights above apply to any MSQ inventory level (0%-100%)

PRIMARY RECEIPT and DELIVERY POINTS:

Please refer to attached Exhibit A for a complete list of available FST injection and withdrawal points.

RATES:

The maximum tariff rates under the FSS and FST rate schedules are listed below.

Firm Storage Service (FSS):

        Demand                                                          $2.4826 per Dth/d

        Capacity                                                         $0.0381 per Dth

        Commodity - Inj/Wd                                    $0.0391 per Dth

        ACA Surcharge                                            $0.0014 per Dth

        Surface Operating and LAUF               [see "Fuel and Loss" section below]

        Allowance

Firm Transportation Service (FST):

        Reservation                                                   $3.7805 per Dth/d

        Commodity                                                    $0.0135 per Dth

        ACA Surcharge                                            $0.0014 per Dth

        Transportation Fuel/LAUF                   [see "Fuel and Loss" section below]

FUEL and LOSS:

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, National’s current allowances are as follows:

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

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

BID FORMAT & DISCOUNTS:

National will accept bids reflecting a discount below the maximum FSS and FST rates, provided that the bid exceeds the applicable Unit Rate Floor.  Discounted bids must be submitted 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 storage point (NFSTOR).

National has predetermined a minimum acceptable Unit Rate Floor for each offering, and 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 offered MSQ - withdrawal and injection quantities will be allocated in proportion to such requested MSQ.  Bidders are allowed to revise their bids within the posting period. All Package 1 and Package 2 bids that exceed the applicable Unit Rate Floor will be evaluated in a single ranking.  For the purposes of awarding the available FSS and FST capacity, 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 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.

National reserves the right to award capacity under one or both Packages, subject to the aggregate inventory and deliverability parameters described herein.

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.  However, in addition to indicating on the Bid Sheet 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 Primary Receipt and Delivery Points

 

Pipeline

Point Name

METER NUMBER

FST RECEIPT

CAPACITY

DTH/D

FST DELIVERY

CAPACITY

DTH/D

TGP

Rose Lake

420527

20,000

30,000

TGP

East Aurora

420077

20,000

30,000*

TGP

Nashville

420243

20,000

x

Transco

Leidy

7126

20,000

30,000

Transco

Wharton

6325

x

25,000

Millennium

Independence

2078

20,000

x

TCPL

Niagara

421079

20,000

30,000*

Empire

Pendleton

012003020

20,000

x

DTI

Ellisburg Station

41202

20,000

x

[Production]

App Zone 2

PL000000XX

20,000

x

[Production]

App Zone 4

PL000000XX

20,000

x

 

           * Summer Withdrawals only

Other 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  – 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

 

Contact Our Marketing Department

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