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Notice of Open Season 212
OS212 - Short Term Firm Storage and Storage Transportation Capacity

STATUS IS:
CLOSED

POSTED: 3/8/2016
TERM:3/8/2016
- 3/11/2016
3/15/2016 - NFG has awarded the capacity of this open season in full.

National Fuel Gas Supply Corporation

OPEN SEASON – OS212

SHORT TERM FIRM STORAGE AND FIRM STORAGE TRANSPORTATION CAPACITY

National Fuel Gas Supply Corporation (“National”) is pleased to announce the availability of short term firm storage service and associated firm transportation service under its Firm Storage Service (“FSS”) and Firm Transportation Service (“FST”) Rate Schedules.

CAPACITY:

 

CAPACITY (Dth)

MDIQ  (Dth/day)

MDWQ  (Dth/day)

850,000

50,000

100,000

 

TERM:

The Storage and Transportation Services would commence March 15, 2016 and continue through August 31, 2016.  

OPEN SEASON TIMEFRAME:

Commences Tuesday March 8, 2016, and expires at 4:00pm (ET) on Friday, March 11, 2016.

FIRM INJECTION and WITHDRAWAL RIGHTS:

Maximum Storage Inventory ("MSQ"):                    850,000 Dth

Injections*:  March 15, 2016 - March 31, 2016         50,000 Dth/d

Withdrawals*: May 1, 2016 - August 31, 2016        100,000 Dth/d

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

PRIMARY RECEIPT and DELIVERY POINTS:

Please see below for a complete list of available FST injection and withdrawal points.

Pipeline

Point Name

METER NUMBER

FST RECEIPT

CAPACITY

DTH/D

FST DELIVERY

CAPACITY

DTH/D

TGP

Rose Lake

420527

50,000

100,000

TGP

East Aurora

420077

50,000

32,000*

TGP

Clarence

420243

50,000

 

Transco

Leidy

7126

50,000

100,000

Transco

Wharton

6325

50,000

  

TCPL

Niagara

421079

50,000

32,000*

Empire

Pendleton

012003020

50,000

 

DTI

Ellisburg Station

41202

50,000

 

Empire

Tuscarora

022009010

 

55,000

 

* Total capacity delivered to TGP – East Aurora and TCPL – Niagara cannot exceed 32,000 Dth/d

RATES:

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

Firm Storage Service (FSS):

        Demand                                                    $2.4329 per Dth/d

        Capacity                                                   $0.0373 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                                                $3.7049 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. 

National’s allowances applicable March 15th, 2016 through March 31st, 2016 are as follows:

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

FST:  On injection and non-storage transportation, Transportation Fuel and Company Use Retention and Transportation LAUF Retention (collectively “Transportation Fuel/LAUF”) is .96%.  On withdrawal, there is no charged Transportation Fuel/LAUF.

National’s allowances applicable April 1st, 2016 are as follows:

FSS:  Storage Operating and LAUF Allowance of 0.71% on injection, and 0.71% on withdrawal.

FST:   On injection and non storage-transportation, Transportation Fuel and Company Use Retention and Transportation LAUF Retention (collectively “Transportation Fuel/LAUF”) is 1.11%.  On withdrawal, there is no charged Transportation Fuel/LAUF.

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, 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 bids that exceed the 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 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 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 REQUIREMENT:

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 3 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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