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Notice of Open Season 181
OS 181 - Long-Term Firm Transportation Capacity From Line N Receipt Points to Holbrook Station


POSTED: 3/28/2012
- 4/11/2012
2/1/2013: A Precedent Agreement with Shell Energy has been executed and 30,000 dth/d have been awarded. The anticipated start date for service is expected to be November 1, 2013.

4/11/2012: Bids are being reviewed and contracts will be tendered to successful bidder(s) of this capacity.

National Fuel Gas Supply Corporation          




Long-Term Firm Transportation Capacity

From Line N Receipt Points to Holbrook Station (Texas Eastern M2)




National Fuel Gas Supply Corporation (“National”) is pleased to announce the commencement of an Open Season for firm transportation capacity under its Firm Transportation (“FT”) rate schedule. 


This transportation capacity will be available from new and existing interconnects along National’s Line N system in Pennsylvania to National’s interconnect with Texas Eastern Transmission (“Texas Eastern”) at Holbrook Station in Greene County, Pennsylvania. This capacity is being made available in conjunction with the replacement of existing 20” pipe with 24” near Lynn Portal Road in Washington County, PA along with other facilities determined necessary by National.


In this Open Season, National will award capacity requests specifying receipt points that allow for a total capacity award of up to 30,000 Dth/day, based on pipeline system hydraulics.  This award process may limit receipt point requests north of the pipeline replacement area.  Such requests may be subject to proration, to zero if necessary, to the extent the hydraulics associated with such request(s) would prevent National from making available 30,000 Dth/day of additional transportation service.



Receipt Points:

Available firm receipt points include all new and prospective local production interconnects along the Line N System located in Southwestern, PA. Other receipt points may be available, and bidders are encouraged to contact a National Fuel marketing representative regarding availability. 


Delivery Point:

Texas Eastern at Holbrook Station (M2). 



Open Season Posting Period:

This Open Season commences Wednesday March 28, 2012 and will continue until 11:00 a.m. (Eastern Time) on Wednesday April 11, 2012.



Commencement of Service: 

Subject to receipt of all applicable federal and other authorizations, transportation service for the project described in this Open Season can commence the later of November 1, 2012, or upon the completion of required facilities.  Shippers may request commencement of service anytime between November 1, 2012 and November 1, 2013.  Such commencement dates shall be incorporated into the Bid Award process outlined below.




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



National’s maximum tariff FT rates are applicable to the transportation service being offered in this Open Season.  The current rates are outlined in the table below.



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)

$0.0018 per Dth

FERC ACA Surcharge


Fuel and Company Use/LAUF


100% Load Factor Rate (excl. surcharges)


National Fuel reserves the right to propose incremental rates in Precedent Agreements if warranted by the project economics.



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 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. 


As noted in the “Capacity” section above, service from receipt points north of the pipeline replacement area is subject to proration to the extent necessary to enable National to make available 30,000 Dth/day of additional transportation service.



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 30 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 14221
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

Genevieve Dispenza    (716) 857-6945

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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