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Notice of Open Season 137
OS137 - Available Long Term Firm Capacity to Olean, New York Points


POSTED: 1/18/2008
- 2/8/2008
Capacity has been awarded to the successful bidders.

National Fuel Gas Supply Corporation   


Open Season OS137

Available Long Term Firm Capacity to Olean, New York Points


National Fuel Gas Supply Corporation (“National Fuel”) is pleased to offer up to 16,900 dth/day of firm transportation capacity under its FT rate schedule to interconnects in the Olean, NY area from available and proposed system receipt points. This capacity will be available on a long-term basis, subject to a prospective transfer of Olean, NY pipeline and compression facilities from Seneca Resources Corporation (“Seneca”) to National Fuel and subject to regulatory approval of such. Contract start date(s) will coincide with the closing of the facilities transfer described above.


The result of this Open Season will determine the scope of the aforementioned facility transfer.


Open Season Time Frame:

Commencing Friday, January 18, 2008 and extending until 11:00 a.m. (Eastern Time) on Friday, February 8, 2008.


Available Capacity:   

4,200 Dth/Day from various National Fuel interconnects to Olean, NY points, and 16,900 Dth/Day from Columbia Transmission Corporation at Empire – Indeck Olean (Hartzfelt Mountain) to Olean, NY points.



Commencing upon completion of facilities transfer.   A minimum term of three (3) years is required in order to assure the economic viability of the transfer.




(Includes available and proposed receipt points for Open Season 137.)


Meter Name

Meter Number

Receipt Capacity

TGP – Lamont



Norse – Little Valley



Appalachian Zone 2



Appalachian Zone 3



Empire – Indeck Olean (Hartzfelt)



*Limited quantities are available between certain receipt and delivery point combinations. Please contact your Marketing Representative prior to bid submission for further details.

Real time measurement is required for FT service.



  •  Dresser Rand Company

  •  Indeck Olean Limited Partnership

 •  Saint Bonaventure University



Listed below are current max rates for Firm Transportation (FT) service:

Maximum Rate

FT Rate Component

$3.3612 per Dth/day

Reservation Charge (monthly, applied to contract MDTQ)

$0.0063 per Dth

Commodity Charge (daily, applied to Dth quantity transported)

$0.0019 per Dth

FERC ACA Commodity Surcharge (daily, applied to Dth quantity transported)


*Fuel and Company Use/LAUF (Delivered volumes are receipt volumes less 1.4% Fuel and Company Use retention and Transportation LAUF retention)

0.1168 per Dth

100% Load Factor Rate (excluding ACA surcharges)

*Fuel and Company Use retention for all applicable rate schedules is 1.15%. Transportation LAUF retention for all applicable rate schedules is 0.25%.  



During the Open Season period, National Fuel will accept requests for the FT service for the capacity as indicated. Requests for rate discounts or for discounts of fuel or loss retention will not be considered during this Open Season. Shippers may request all or part of the available capacity. All acceptable requests will be ranked and capacity awarded based on the highest net present value (NPV) of the 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. In the event that more than one shipper submits requests that are equivalent in value and term, the available capacity shall be prorated to those shippers based on the quantities requested.

If it is necessary to prorate the capacity among successful bidders, 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.




All Open Season requests must be submitted on a Service Request Form (complete a Service Request Form online or download the PDF version , which is available on our web site ( http://www.nationalfuelgas.com/ ) or by calling our Marketing Department at 716.857.7740. The completed form should be submitted online or via mail or fax as listed below:

National Fuel Gas Supply Corporation
6363 Main Street
Williamsville, NY 14203
PHONE: 716.857.7740
FAX 716.857.7310

National Fuel Marketing Representatives:

Joe Kolis: 716.857.7520

Terry Falsone: 716.857.7602
George Linder: 716.857.7105



If not already executed, successful bidders will be required to execute and return precedent agreements (addressing the conditions associated with the firm transportation service agreement) within 30 days of receipt. The results of this Open Season will be posted on National's web site, http://www.nationalfuelgas.com/ , in the Supply Corp. section under Marketing News and Offers.





Contact Our Marketing Department

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