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Notice of Open Season 204
OS204 - Long Term Firm Transportation Capacity


POSTED: 10/31/2014
- 11/21/2014
11/21/2014 - Bids have been received and the project scope is currently being evaluated.

5/28/2015 - Precedent Agreements totaling 71,000 Dth/d have been executed. A limited amount of post-open season capacity may be available.

7/15/2015 - All remaining capacity has been sold. The project scope is as follows:
National Fuel Gas Supply Corporation requires the installation of new compression facilities at its Keelor Station, modifications at its Bowen and Roystone Stations, upgrades to the interconnection with Tennessee Gas Pipeline at Lamont, and maximum allowable operating pressure recertification of its Line D pipeline and other appurtenant facilities. National Fuel plans to submit a prior notice filing to FERC for the necessary authorizations for the project.

4/26/2016 - Project Update: Transporter has tendered Precedent Agreements for 77,500 Dth/d of project capacity to the Project shippers and has received signed Service Agreements for 61,200 Dth/d. Parties interested in securing any of the remaining capacity on the Line D Expansion Project, please contact your Marketing Representative.




Line D Expansion Project

Long Term Firm Transportation Capacity

From Appalachian Zone 2 to Line D Delivery Points



National Fuel Gas Supply Corporation (“National”) is pleased to announce the commencement of an Open Season for new firm transportation service under National's Firm Transportation ("FT") rate schedule.  The "Line D Expansion Project" involves pipeline system and compression upgrades along National's Line D system in Warren and Erie counties, Pennsylvania.

This expansion could make available approximately 100,000 Dth/d of incremental firm transportation capacity from existing and prospective Appalachian Zone 2 receipt points, with access to key market delivery points including National’s existing interconnects with National Fuel Gas Distribution - Erie Control (NFGDC-ECTL), Energy Systems North East (NOR2702), United Refining (UNI2854) as well as a proposed delivery point at the Tennessee Gas Pipeline interconnection at Wattsburg.  Please refer to the Receipt Points and Delivery Points sections below for a complete list.

Expected Transportation Capacity Quantities

The total amount of firm transportation capacity to be awarded in this Open Season is contingent upon the requested paths, system hydraulics, and facilities limitations.  Based on certain combinations of these and other factors, National anticipates it may be able to develop incremental transportation capacity of approximately 100,000 Dth/day.

National reserves the right, in its sole discretion, to develop, revise, and optimize the resulting project(s) design and modify the amount of awarded capacity to be greater or less than any estimated quantities listed above, and to determine in its sole discretion the level of subscription(s) required to justify incremental facilities.  National further reserves the right to develop alternative projects that may be identified during the contracting process, based on the Open Season requests.


New transportation capacity to any of the offered delivery point(s) is expected to require additional compression at National's existing Roystone Compressor Station, along with additional system upgrades.  Should the expansion include incremental transportation deliveries to TGP at Wattsburg, the project may also require the installation of compression and bi-directional measurement at National’s existing interconnect with TGP at Wattsburg.

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, 2016 but no later than November 1, 2017.


National requires a minimum term of ten (10) years for transportation services requested in this Open Season.

Open Season Schedule

This Open Season commences October 31, 2014 and expires at 11:00 a.m. (Eastern Time) on November 21, 2014.

Receipt Points

The Line D Expansion project could enable National to provide firm transportation service from the following receipt points:

TGP - Wattsburg (420075)

TGP - Lamont (420072)

TCO - Dutch Hill (642643)*

Norse - Sugar Grove (617733)

App Zone 2 Production Meters*

*Receipt capacity from these points is contingent upon the specific meter location.  National reserves the right in its sole discretion to determine whether receipts at specific production meters can be economically and operationally accommodated with the project facilities.

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

Delivery Points

The Line D Expansion project could enable National to provide firm transportation service to the following delivery points:

TGP - Wattsburg (420075)

ESNE - Energy Systems North East  (NOR2702)

NFGDC - Erie Control  (NFGDC-ECTL)

United Refining Corp.  (UNI2854)

Rate Information

Listed below are National's current maximum tariff rates for FT service.  These rates are applicable to the services offered herein:


Maximum Tariff Rate

FT 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)

$0.0014 per Dth

FERC ACA Surcharge

1.10% *

Fuel and Company Use/LAUF*


100% Load Factor Rate (excl. surcharges)


*Transportation Fuel and Company Use Retention and Transportation LAUF Retention (collectively “Transportation Fuel/LAUF”) will be established and subject to change under the tracking mechanism guidelines in National’s GT&C Section 41 tariff sheets.  National’s current Transportation Fuel/LAUF allowance is 1.10%.


National does reserve the right to propose in customer agreements an incremental transportation rate and/or fuel rate based on aggregate Open Season interest, project design, post-open season construction estimates, and overall project economics.  

Bid Award Process

During the Open Season period, National Fuel will accept requests for the transportation service described above beginning November 1, 2016 under National Fuel’s FT rate schedule.  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 posting period.  All acceptable requests will be ranked, and the best bid(s) determined 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. 

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.

National reserves the right to consider bids with requested start dates later than November 1, 2016.  National also reserves the right to maximize the amount of capacity awarded in this Open Season by considering the hydraulics and facility requirements associated with receipt and delivery point requests.  National will award capacity to the combination of bids that generate the highest net present value for National.

Participation in this Open Season is non-binding for bidders and National.  Shippers who are awarded capacity in this open season must enter into discussions leading to a binding Precedent Agreement.

Bid Documents and Precedent Agreements

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

Shippers who are awarded capacity in this Open Season must enter into discussions leading to execution of a binding Precedent Agreement.  Once tendered, such agreements must be executed by an officer of the bidding entity and returned to National within 20 business days.

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

Anthony Limina         (716) 857-7924

The results of this Open Season will be posted on National's web site, http://www.nationalfuelgas.com/, in the Pipeline & Storage, Supply Corporation section under Marketing News and Offers.

Contact Our Marketing Department

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