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Notice of Open Season 165
OS165 - Long-Term Firm Transportation Capacity from Various Interconnects along Line N to TETCO at Ryerson (M2)


POSTED: 7/29/2010
- 8/12/2010
3/2/2011 - Update - 10,000 Dth/day of capacity was awarded and a Precedent Agreement has been executed

8/12/2010 - Bids are currently being evaluated

National Fuel Gas Supply Corporation          




Long-Term Firm Transportation Capacity


Expansion Capacity From New and Existing Interconnects along Line N corridor with Delivery to TETCO at Ryerson (Holbrook) Station (M2)

National Fuel Gas Supply Corporation (“National”) is pleased to announce the commencement of an Open Season for additional firm transportation capacity from new and existing interconnects along National’s Line N system in Pennsylvania to our proposed interconnect with Texas Eastern Transmission at Ryerson (Holbrook) Station in Greene County, Pennsylvania.  This capacity will be made available by the facilities associated with National’s Line N Phase I Expansion.


The specific amount of capacity awarded will depend on the location of the requested receipt point, however National estimates that approximately 10,000 Dth/day of additional capacity will be available from the Lynn Portal Road area, in Washington Township, PA.  Larger amounts are available for points south of the proposed Buffalo Station (located on Coffeys Crossing Road, in Buffalo Township, PA approximately two miles north of Interstate 70).


Receipt Points:

Available firm receipt points include new and prospective interconnects along Line N located in Washington and Greene County, PA.


Delivery Points:

Firm delivery point of Texas Eastern at Ryerson (Holbrook) Station (M2). 


Open Season Posting Period:

This Open Season commences July 29, 2010 and will continue until 11:00 a.m. (Eastern Time) on August 12, 2010.


Commencement of Service: 

National estimates this additional capacity associated with the Line N Phase I Expansion facilities to commence the later of September 1, 2011 or upon Phase I project completion. 



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


All firm transportation capacity offered in conjunction with this Open Season will be available under National Fuel’s Firm Transportation (“FT”) rate schedule. 

National’s maximum tariff FT rates will be applicable.


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)


Bid Format and Award Process:

During the Open Season period, National Fuel will accept requests for this transportation service under National Fuel’s FT rate schedule.  Requests for rate or fuel discounts will not be accepted. 


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 proposed service commencement date, 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. 


Credit Requirements:

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


Execution of Agreements:

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.  Successful bidders will be required to execute and return the precedent agreements resulting from this Open Season within 45 days of receipt. 

Open Season Bid Process:

All Open Season requests must be submitted using a Service Request Form either by completing a Service Request Form online, or by downloading the PDF version from our website and submitting the completed form by mail or fax to:

National Fuel Gas Supply Corporation
6363 Main Street
Williamsville, NY 14203
Fax – (716) 857-7310

Inquiries can be directed to any one of the following Marketing Representatives:

Joe Kolis                     (716) 857-7520
Terry Falsone               (716) 857-7602

The results of this Open Season will be posted on National Fuel's web site, http://www.nationalfuelgas.com.

Contact Our Marketing Department

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