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Notice of Open Season 211
OS211 - Long Term Firm Storage and Firm Storage Transportation Capacity

STATUS IS:
CLOSED

POSTED: 1/4/2016
TERM:1/4/2016
- 1/21/2016
1/21/2016 - NFGSC has awarded offer 2 in full. Offer 1 remains available. Shippers interested in post-open season bids for Offer 1 should contact their NFGSC Marketing Representative. 5/9/2016 - Offer 1 capacity had been awarded in full and agreements are in the process of being tendered. 8/31/2016 - Agreements for both offers have been executed. Injections and withdrawals remain available for Offer #1 and will part of an upcoming open season.

National Fuel Gas Supply Corporation

OPEN SEASON 211

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: 

 

OFFER 

RATE SCHEDULES

CHARACTER OF SERVICE

CAPACITY (Dth)

MDIQ (Dth/D)

MDWQ (Dth/D)

OFFER #1

FSS/FST

110 Day

453,090

2,666

4,119

OFFER #2

FSS/FST

77 Day

531,300

3,795

 6,900

 

OPEN SEASON TIMEFRAME:

Commences January 4th, 2016 and expires at 11:00am (EST) on Thursday January 21st, 2016.

TERM REQUIREMENTS:

Storage Services commence April 1, 2016. There is no minimum term or maximum term requirement.

INJECTION and WITHDRAWAL RIGHTS:

Offer #1

453,090 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 70%

From greater than 70% to 100%

 

1/170 of MSQ

1/200 of MSQ

2,666

2,266

WITHDRAWAL PERIOD

November 1 – March 31

 

From greater than 30% to 100%

From greater than 15% to 30%

From 0% to 15%

 

1/110 of MSQ

1/120 of MSQ

1/150 of MSQ

4,119

3,776

3,021

 

Offer #2

531,300 Dth of 77-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 70%

From greater than 70% to 100%

 

1/140 of MSQ

1/170 of MSQ

3,795

3,126

WITHDRAWAL PERIOD

November 1 – March 31

 

From greater than 11% to 100%

From 0% to 11%

 

1/77 of MSQ

1/120 of MSQ

6,900

4,428

 

RECEIPT & DELIVERY POINTS:

Please refer to the table below for a complete list of available storage transportation points:

Pipeline

Point Name

METER NUMBER

FST RECEIPT

CAPACITY

DTH/D

FST DELIVERY

CAPACITY

DTH/D

TGP

Rose Lake

420527

Up to 9,015

Up to 14,612

Transco

Leidy

7126

 

Up to 11,019

Transco

Wharton

6325

 

Up to 14,612

Millennium Pipeline

Independence

2078

Up to 9,015

Up to 14,612

TGP

East Aurora

420077

Up to 9,015

 

TCPL

Niagara

421079

Up to 9,015

 

Empire

Pendleton

012003020

Up to 9,015

 

Empire

Tuscarora

022009010

Up to 9,015

 

DTI

Ellisburg Station

41202

Up to 9,015

 

 

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)

$0.0014 per Dth

Surface Operating Allowance (“SOA”)

Refer to the "Fuel & Loss Allowances" section

 

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)

$0.0014 per Dth

Fuel and Loss Retention/LAUF (“Fuel”)

Refer to the "Fuel & Loss Allowances" section

 

*Maximum Tariff Rates remain subject to the "Supplemental Stipulation and Agreement" filed in Docket No. RP15-1310 final approval (subject to rehearing requests).

FUEL & LOSS ALLOWANCES:

Storage Operating and LAUF Allowance, and Transportation Fuel and Company Use Retention and Transportation LAUF Retention  will be collected and are subject to change under the tracking mechanism set forth in GT&C Section 41 of National's tariff. 

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

FSS:  Storage Operating and LAUF Allowance of 0.46% on injection and 0.46% 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 0.96%.

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 (BID211) 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 and 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. Shippers may bid on Offer #1 and/or Offer #2. For bids equal or greater than the Unit Rate Floor, Offer #1 and Offer #2 will be evaluated and awarded separately. 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 either Offer #1 and/or Offer #2. 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

 

Contact Our Marketing Department

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