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Notice of Open Season 184
West Side 2013 Expansion Project - Long Term Firm Transportation Capacity in Western Pennsylvania with Deliveries to Texas Eastern, Tennessee Gas Pipeline, and Columbia Transmission


POSTED: 12/11/2012
- 1/18/2013
In order to facilitate interested bidder requests National Fuel Gas Supply Corporation has extended the end date for bids to 11 AM EST on January 18th 2013.

1/18/2013: OS184 is extened until noon EST on January 18th 2013.

1/18/2013: Open Season bids are being evaluated

2/4/2013: A total of 95,000 dth/d has been awarded. Additional post-OS requests may be considered if economical project can be designed.




West Side 2013 Expansion Project


Long Term Firm Transportation Capacity in Western Pennsylvania with Deliveries to Texas Eastern,  Tennessee Gas Pipeline, and Columbia Transmission


National Fuel Gas Supply Corporation (“National”) is pleased to announce the commencement of an Open Season for firm transportation service associated with potential pipeline system upgrades and modifications, known as its West Side 2013 Expansion project.


This project would make available approximately 50,000 to 100,000 Dth/d of incremental firm transportation capacity from existing and prospective receipt points along National’s system in western Pennsylvania, including Lines N, N-12, N-20, N-M50, N-M44 and Line M. 


This incremental firm transportation capacity would provide access to diverse markets at several key firm delivery points, including National’s existing interconnects with Texas Eastern Transmission (“TETCO”) at Holbrook (M2), Columbia Gas Transmission (“TCO”) at Ellwood City, and Tennessee Gas Pipeline (“TGP”) Station 219 at Mercer (TGP 300 line, TGP 200 line, and TGP 219 pool). Please see the Delivery Point table below for a complete list of delivery points.


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


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.


Expected Transportation Capacity Quantities

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 develop incremental transportation capacity in the amount of approximately 25,000 – 50,000 Dth/day to TETCO at Holbrook and approximately 25,000 – 50,000 Dth/day to TGP Station 219 at Mercer described herein.   National reserves the right, in its sole discretion, to revise and optimize the project design and modify the amount of awarded transportation capacity to be greater or less than these amounts.


Open Season Schedule

This Open Season commences December 11, 2012 and expires at 12:00 P.M. (Eastern Time) on Friday January 18, 2013.



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

Project Area



Receipt Points

The receipt points available for this firm capacity offering include existing and prospective producer interconnects along with pipeline interconnects in western and central Pennsylvania.  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.The West Side 2013 project would enable National to provide firm transportation service from the following existing receipt points:


Point Name

Meter Number

Imperial Landfill (from plant)


TGP – Mercer


TCO - Ellwood City


Production meters within Appalachian Zone 1


Production meters within Appalachian Zone 2


Delivery Points

The West Side 2013 project would enable National to provide firm transportation service to the following existing delivery points:


Point Name

Meter Number

* TGP – Mercer


* TETCO – Holbrook


* TCO - Ellwood City


Equitrans – Three Rivers


Peoples Natural Gas City Gate



* Refer to “Facilities” section below.




Deliveries to TGP at Mercer would require the installation of compression and bi-directional measurement at National’s existing interconnect with TGP Station 219 at Mercer.

Deliveries to TETCO at Holbrook may require an upgrade at the Holbrook measurement facility.


Deliveries to TCO at Ellwood City may require meter and/or interconnect upgrades.


Depending on the specific transportation path(s) associated with awarded capacity, certain pipeline upgrades may be also be required.


National expects that the required facilities work associated with successful bids will be constructed under National’s Blanket Certificate Authorizations.



Rate Information

National expects to contract the firm transportation capacity offered in this Open Season at the existing maximum tariff rates for FT service.  Current maximum tariff rates for FT service:



Maximum Rate


$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)

* Current Fuel and Company Use/LAUFNational 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, 2013 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, 2013. 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

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


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.

Precedent Agreements

Successful bidders will be required to execute and return precedent agreements within 20 business days after they are received.




Contact Our Marketing Department

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