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Notice of Open Season 155
OS155 - Firm Long Term Transportation CapacityFrom Traditional and Marcellus Producing Areas to Transco at LEIDY


POSTED: 10/19/2009
- 11/13/2009
3/2/2011 - Volumes in the amount of 45,000 Dth/day have been contracted as a result of this Open Season.

National Fuel Gas Supply Corporation    


OS155 - Firm Long Term Transportation Capacity

From Traditional and Marcellus Producing Areas to Transco at LEIDY

National Fuel Gas Supply Corporation (“National Fuel”) is pleased to announce the commencement of an Open Season for transportation capacity from traditional and Marcellus production areas in Potter and Clinton counties, Pennsylvania to our interconnect with Transco at Leidy, Pennsylvania.

Participation in this Open Season is non-binding for bidders and National Fuel.  However, precedent agreement(s) resulting from this open season will commit the parties to the rights and obligations stated therein.


Up to approximately 150,000 Dth/day of firm transportation capacity will be available under National Fuel’s Firm Transportation (“FT”) rate schedule from existing and prospective producer interconnects along National Fuel’s transmission line YM-53 between Ellisburg and Leidy.  The specific amount of capacity awarded will depend on the location of the requested interconnects.


Available firm receipt points include all new and prospective local production interconnects along YM53 in Potter and Clinton counties.

If bidder’s Open Season 155 capacity request and award meets or exceeds 50,000 dth/day for a term equal to or greater than five (5) years, and one or more new interconnect points along National Fuel’s Line YM53 is required for receipt of shipper’s gas by National, National will waive the interconnect cost for one such new interconnect point.


Firm delivery point of Transco at Leidy. 


This Open Season Commences October 19, 2009 and will extend until 11:00 a.m. (Eastern Time) on November 13, 2009.


Transportation service for the project described in this offer can commence the later of April 1, 2010 or upon the completion of required facilities.  National Fuel expects that measurement enhancements may be required at the Transco Leidy point to accommodate FT volumes awarded in this Open Season.


Capacity is available on a long-term, year-round basis. A five-year minimum term is required.


Listed below are tariff FT rates applicable to the transportation service being offered in this Open Season:

Maximum Tariff 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 Surcharge


Fuel and Company Use/LAUF


100% Load Factor Rate (excl. surcharges)

In this Open Season, shippers will also have the option to propose a fixed (negotiated) monetary rate bid.  National has established an acceptable fixed rate of $.1350 for this offering.  National Fuel will reject fixed rate bids above or below this rate.  Bidders may propose to pay this fixed rate for up to the first 10 years of their bid, although the full term of the bid may exceed 10 years. National Fuel expects that the executed agreement(s) will contain “re-opener” language, with such language requiring the parties to renegotiate the fixed negotiated rate if certain new laws, regulations, or regulatory initiatives place significant upward pressure on National Fuel’s tariff maximum FT rate.

Bidders proposing the fixed rate option will be subject to National Fuel’s applicable Fuel and Company Use/LAUF rate.  Should a fixed (negotiated) rate bidder be awarded capacity in this Open Season, the $.1350 unit rate shall be contracted and billed as a monthly reservation rate.


During the Open Season period, National Fuel will accept requests for this transportation service under National Fuel’s FT rate schedule.  Requests for rate discounts will not be accepted.  As described above, fixed negotiated rate bids of $.1350 are acceptable.  For NPV and bid award purposes, fixed (negotiated) rate bids shall be computed as if maximum tariff rate bids.

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% for discounting purposes.

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. 


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


All Open Season requests must be submitted on a Service Request Form.  The completed form may be submitted online or via mail or fax.

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

National Fuel Marketing Representatives:

Terry Falsone – 716.857.7602

Joe Kolis – 716.857.7520
George Linder – 716.857.7105


Successful bidders will be required to execute and return the precedent agreements resulting from this Open Season within 20 business days of receipt.  A draft version of the Precedent Agreement is available using the link below:

Precedent Agreement for OS 155 (For discussion purposes only)

After agreements are executed, the results of this Open Season will be posted on National Fuel's web site, http://www.nationalfuelgas.com/supply, under Marketing News and Offers.



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