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Notice of Open Season 187
Long Term Firm Transportation Capacity in Western Pennsylvania with Deliveries to Texas Eastern (Holbrook)


POSTED: 4/5/2013
- 4/12/2013
4/12/2013: Bids are currently being reviewed.

4/22/2013: Contracts are being tendered and 12,242 Dth/d has been awarded.

6/19/2013: Contracts have been executed and NFGSC is moving forward with expansion of the Holbrook delivery point.






Long Term Firm Transportation Capacity in Western Pennsylvania with Deliveries to Texas Eastern (Holbrook)



National Fuel Gas Supply Corporation (“National”) is pleased to commence an Open Season for firm transportation service associated with an expansion of delivery point capacity at National’s interconnect with Texas Eastern (“TETCO”) at Holbrook (M2).


This project will provide shippers with access to key TETCO markets by making available approximately 10,000 Dth/d of incremental firm transportation capacity from National’s system storage and from receipt points along National’s Line N pipeline system in western Pennsylvania.


Please refer to the Receipt and Delivery Point tables below for a complete list of available points.


The firm transportation service is offered in accordance with the terms of National’s FERC Gas Tariff Firm Transportation (“FT”) and Firm Storage Transportation (“FST”) rate schedules.



Projected In-Service Date

Subject to sufficient and timely market commitments and necessary regulatory approvals, National expects the required facilities could be completed and transportation service could begin by November 1, 2013.


Transportation Quantity

The total amount of firm transportation capacity to be awarded in this Open Season will depend on the requested paths, system hydraulics, and the capabilities at requested receipt and delivery points.  Based on certain combinations of these and other factors, National anticipates it may be able to award incremental transportation capacity in the amount of approximately 10,000 Dth/day to TETCO at Holbrook.  National reserves the right, in its sole discretion, to revise and optimize the project design and to award transportation capacity in an amount greater or less than this estimated amount.


The capacity offered in this Open Season shall be awarded under incremental (new) FT agreements and/or under a term extension of existing FST contracts. 


Open Season Schedule

This Open Season commences Friday, April 5, 2013 and expires at 1:00 p.m. (Eastern Time) on Friday, April 12, 2013.



National requires a minimum term of three (3) years for new transportation services requested in this Open Season and a minimum of two (2) years extension for existing service.


Receipt Points

FT service is available from the following list of receipt points:


Point Name

Meter Number

Imperial Landfill (from plant)


TGP – Mercer


TCO - Ellwood City


New/Existing Production meters within Appalachian Zone 1



Bidders requesting a (delivery) point change and extension of an existing FST agreement will continue to have National’s system storage (“NFSTOR”) as their contractual FST primary receipt point on withdrawal.


Note:  Unless waived by National pursuant to its tariff, primary receipt points must have real time measurement, communication and control capability.  The commencement of firm transportation service awarded under this open season will not be contingent upon modifications to existing producer interconnects or the construction of new producer interconnects.


Delivery Points

The expansion in this Open Season would enable National to provide firm transportation service to the following existing delivery point:


Point Name

Meter Number

TETCO – Holbrook





The firm transportation services offered in this Open Season requires a facilities upgrade at the Holbrook measurement facility.  National expects that this upgrade will be constructed under National’s Blanket Certificate Authorization.



Rate Information

National expects to contract for the firm transportation capacity offered in this Open Season at the existing maximum tariff rates for FT and/or FST service. 



Maximum Rate

FT/FST Rate Component

$3.7805 per Dth/day


Reservation Charge (monthly, applied to contract MDTQ)

$0.0135 per Dth


Commodity Charge (daily, applied to Dth quantity transported)

$0.0018 per Dth


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



Fuel and Company Use/LAUF



100% Load Factor Rate (excluding ACA surcharges)


Bid Award Process

In this Open Season, National Fuel will accept requests for either:


  • New transportation service commencing November 1, 2013 under National’s FT rate schedule.
  • Delivery point change and term extension of existing FST contracts, with the point change effective November 1, 2013.


Requests for rate discounts or discounts of fuel and loss retention will not be accepted.  Shippers may request all or part of the available capacity, and are allowed to revise their bids within the Open Season period.

All acceptable requests will be ranked, and the best bid(s) determined based on the highest net present value (NPV) of the incremental reservation charge revenues, per unit of capacity (Dth/day) requested. For bids requesting an FST point change and term extension, the incremental reservation charge revenues associated with both the FST term extension and the proposed term extension of any associated Firm Storage Service (“FSS”) contract shall be used in the NPV calculation.  The NPV calculation will incorporate length of contract term (or contract term extension) and will utilize a monthly rate of 0.8% (9.6% annually) for discounting purposes. 


Equivalent winning bids that cannot be awarded in full will be awarded on a pro rata basis.  Shippers should indicate in their bids if their bid is contingent upon being awarded the full contract quantity of the bid or if they will accept a partial quantity.  In the event that bids are submitted in excess of the available capacity and they must be prorated, the bids will be prorated based on the quantities requested.


As stated on page 1 of this offering, National reserves the right, in its sole discretion, to revise and optimize the project design and to award transportation capacity in an amount greater or less than the estimated amount.  National will award capacity to the combination of bids that generate the highest net present value for National.


Participation in this Open Season is binding for bidders and National. Shippers who are awarded capacity in this open season must execute a new or amended service agreement within 20 business days of receipt.


Bid Documents

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

Questions may be directed to the Marketing Department at (716) 857-7740, or to one of the Marketing Representatives listed here:


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

Gen Dispenza   (716) 857-6945

The results of this Open Season will be posted on the “Open Seasons Index” area of National's web site:  http://www.nationalfuelgas.com/supply



Contact Our Marketing Department

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