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Notice of Open Season 203
OS203 - Long Term Firm Transportation Capacity

STATUS IS:
CLOSED

POSTED: 10/23/2014
TERM:10/23/2014
- 11/20/2014
11/20/14 - Bids have been received and are currently being evaluated.

1/2/15 - Post open season capacity may be available. Please contact your marketing rep for details.

2/09/14 - Interim & long-term capacity may be available. Please contact your Marketing Rep for details.

NATIONAL FUEL GAS SUPPLY CORPORATION

OPEN SEASON - OS 203 (Bid End Date Revised)

LONG TERM FIRM TRANSPORTATION CAPACITY FROM LINES YM-52/YM-53 AND FROM THE TRANSCO LEIDY LINE AT WHARTON

 

National Fuel Gas Supply Corporation (“National Fuel”) is pleased to announce the commencement of an Open Season for firm transportation capacity available under National Fuel’s Firm Transportation Service (“FT”) and Firm Storage Transportation ("FST") rate schedule.

PRIMARY RECEIPT (INJECTION) POINTS

  • Transco - Wharton (6325)
  • Existing and Prospective interconnections on National Fuel Line YM-52 and YM-53

PRIMARY DELIVERY (WITHDRAWAL) POINTS

  • Tennessee Gas Pipeline ("TGP") - Roselake (420527)
  • Empire Pipeline - Tuscarora

TRANSPORTATION PATHS, CAPACITY, AND COMMENCEMENT DATE(S)

 

FT Path FT Primary Receipt Point FT Primary Delivery Point Volume
1* YM-52/YM-53  TGP - Roselake 100,000  Dth/d
2 YM-52/YM-53 Empire - Tuscarora 2 11,000  Dth/d
3 Transco - Wharton 1 TGP - Roselake 100,000  Dth/d
4 Transco - Wharton 1 Empire - Tuscarora 2 11,000  Dth/d

 

              * Path #1 is available beginning December 1, 2014. 

                    1  The first 50,000 Dth/d of primary Transco-Wharton receipts requires incremental Wharton measurement facilities - expected June 1, 2015.  Additional primary receipts at Wharton may require compression-related facilities at National's East Fork compressor station (Wharton) - expected completion May 1, 2016.

                    2  Contingent upon placement in-service of Empire's Tuscarora expansion project - expected November 1, 2015.  Volumes in excess of approximately 11,000 Dth/d may require additional facilities, including compression expansion at National's Tuscarora Compressor Station and other system upgrades.  The projected in-service date for such an expansion will depend on specific requests and facilities design.

                    FST Capacity is not a pathed service.  FST bids requesting any combination of the offered primary injection and primary withdrawal points are subject to the capacity limitations and commencement dates footnoted above. 

The total amount of firm transportation capacity to be awarded in this Open Season is contingent upon the requested paths, system hydraulics, and facilities limitations.  National reserves the right, in its sole discretion, to develop, revise, and optimize the resulting project(s) design and modify the amount of awarded capacity to be greater or less than any estimated quantities listed above, and to determine in its sole discretion the level of subscription(s) required to justify incremental facilities.  National further reserves the right to develop alternative projects  that may be identified during  the contracting process, based on the Open Season requests.

The commencement of firm transportation 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.

TERM REQUIREMENTS

For transportation paths that require (only) the Wharton measurement facilities, the required minimum term is three (3) years.  Requested paths requiring more significant facilities may require up to a ten (10) year minimum term, at National's sole discretion.  National reserves the right to consider bids with requested commencement dates later than the projected in-service dates outlined in the "Transportation Paths, Capacity, and Commencement Dates" section above.

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

OPEN SEASON TIMEFRAME
Commences Thursday October 23, 2014, and concludes at 11:00 am on Thursday November 20, 2014.

BID FORMAT AND AWARD PROCESS

All requests must be submitted using a Service Request Form (“SRF”).    

Requests for rate discounts or discounts of fuel and loss retention will not be accepted. Shippers may request all or part of the available capacity, and are allowed to revise their bids within the posting period.  

For bids requesting the same or competing capacity paths, acceptable requests will be ranked and the best bid(s) determined based on the highest net present value (NPV) of the incremental reservation charge revenues, per unit of capacity (Dth/day) requested. The NPV calculation will incorporate length of contract term and will utilize a monthly rate of 0.8% (9.6% annually) for discounting purposes.   This ranking will be used to award the footnoted capacity "tiers" outlined in the "Transportation Paths, Capacity, and Commencement Dates" section above.  To the extent that a request is awarded capacity requiring incremental facilities and a minimum term commitment that is beyond bidder's proposed term, National Fuel shall reflect such minimum term in the Precedent Agreement.

In the event that multiple shippers submit requests that are equivalent in value and term, the available capacity shall be prorated to those shippers based on the quantities requested.  Accordingly, service agreements will be sent to each successful bidder reflecting such proration. These service agreements will provide for a range of quantities between the prorated quantities and the requested quantities. The contract quantity will be within this range and will be determined by the capacity subscribed by all successful bidders under executed service agreements for each Package.

RATES

Listed below are the current maximum tariff rates for FT and FST service. 

 

Maximum Tariff Rate

FT/FST Rate Component

$3.7805 per Dth/day

Reservation Charge (monthly, applied to contract MDTQ)

$0.0135 per Dth

Commodity Charge (daily, applied to Dth quantity transported)

$0.0014 per Dth

FERC ACA Surcharge

1.10% *

Fuel and Company Use/LAUF*

$0.1378/dth

100% Load Factor Rate (excl. surcharges)

 

*Transportation Fuel and Company Use Retention and Transportation LAUF Retention (collectively “Transportation Fuel/LAUF”) will be established and subject to change under the tracking mechanism guidelines in National’s GT&C Section 41 tariff sheets.  For FST on withdrawal, there is no charged Transportation Fuel and Company Use Retention and Transportation LAUF Retention (collectively “Transportation Fuel/LAUF”). For FST on injection and non-storage transportation, the current Transportation Fuel/LAUF is 1.1%.

National expects that the above tariff rates may be applicable to most requests.  However, National reserves the right to propose incremental rates if required by project economics.

CREDIT REQUIREMENTS

Shippers will be required to demonstrate creditworthiness or provide a credit alternative acceptable to National Fuel.

OPEN SEASON BID PROCESS

All Open Season requests must be submitted on a Service Request Form. Complete the Service Request Form online or download the PDF version, both of which are available on our web site http://www.nationalfuelgas.com/  or by calling our Marketing Department at 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

Representatives:

Terry Falsone – 716.857.7602

Joe Kolis – 716.857.7520

Anthony Limina – 716.857.7924

 

SERVICE AGREEMENTS

Successful bidders will be required to execute and return service agreements within 10 business days after they are received. To the extent that Precedent Agreement(s) are required, such agreements must be executed by successful bidder within 20 business days of receipt. 

Once agreements are executed, the results of this Open Season will be posted on National's web site, www.nationalfuelgas.com.

Contact Our Marketing Department

Return to Open Season Index

 

 

 


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