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Notice of Open Season 216
OS216 - Long Term Storage Injection and Withdrawal Capability (under FSS/FST Rate Schedules). Points include Rose Lake, Leidy, Wharton and Ellisburg.

STATUS IS:
CLOSED

POSTED: 9/14/2016
TERM:9/19/2016
- 9/30/2016
10/3/2016 - Currently being evaluated.

5/30/2017 - NFG has awarded the capacity post open season.

NATIONAL FUEL GAS SUPPLY CORPORATION

OPEN SEASON - OS216

LONG TERM FIRM STORAGE INJECTION AND WITHDRAWAL CAPABILITY

NOTE: NFGSC is extending the OS216 end date to expire on 9/30/2016 at 1:00pm.

 

OFFER

National Fuel Gas Supply Corporation (“National”) is pleased to announce the availability of up to an incremental 4,119 Dth/day of firm storage withdrawal capability and 2,666 Dth/day of firm storage injection capability under its Firm Storage Service (“FSS”) and associated Firm Storage Transportation Service (“FST”) Rate Schedules. This incremental storage injection and withdrawal capability and transportation is only available to existing FSS shippers. It will allow FSS contract holders to increase the deliverability associated with their existing contractual Maximum Storage Quantity (“MSQ”) by up to 4,119 Dth/day on withdrawal and 2,666 Dth/day on injection.

 

No new storage capacity is available in this Open Season.

 

OPEN SEASON PERIOD

This Open Season commences on September 19, 2016 and will expire at 1:00pm (ET) on September 30, 2016.

 

TERM REQUIREMENTS

The incremental firm services offered herein may commence as early as October 1, 2016. Upon award, if the term of bidder’s Open Season request extends beyond the primary term of bidder’s existing FSS and FST service contracts, the existing FSS/FST contract(s) to which the incremental injection and withdrawal rights are added must be extended to match the term of bidder’s Open Season request. There is no limit on the term that can be proposed by bidders. For bidders holding discounted FSS/FST contracts, National’s maximum tariff FSS and FST rates shall be applicable to both existing and incremental services for terms beyond the current term of the discount.

 

INJECTION and WITHDRAWAL RIGHTS

This firm storage capability is being offered with the unique injection and withdrawal rights outlined below:

 

 

Maximum Storage Quantity (MSQ) Inventory

INJ/WD Rights

INJ/WD Quantities (Dth/d)

Injection Period

April 1 – October 31

 

 0% to 70%

From greater than 70% to 100%

 

1/170 of MSQ

1/200 of MSQ

2,666

2,266

Withdrawal  Period

November 1 – March 31

 

From greater than 30% to 100%

From greater than 15% to 30%

From 0% to 15%

 

1/110 of MSQ

1/120 of MSQ

1/150 of MSQ

4,119

3,776

3,021

 

This incremental injection/withdrawal capability will enable a FSS/FST shipper to increase the MDIQ and MDWQ of its current storage service.

RECEIPT and DELIVERY POINTS

          

Pipeline

Point Name

Meter Number

FST Receipt

Capacity Dth/D

FST Delivery Capacity Dth/D

TGP

Rose Lake

420527

2,666

4,119

Transco

Leidy

7126

0

4,119*

Transco

Wharton

6325

2,666

4,119

DTI

Ellisburg Station

41202

2,666

0

 *Transco Leidy FST Deliveries are not available after November 1, 2018.

RATE INFORMATION

The maximum tariff rates under the FSS and FST Rate Schedules are listed in the tables below.

 

Maximum Tariff Rates - Firm Storage Service (FSS):

Component

Current Maximum Rates

Maximum Rates effective November 1, 2016

Demand (monthly, applied to withdrawal deliverability)

$2.4329 per Dth/d

$2.3833 per Dth/d

Capacity (monthly, applied to capacity)

$0.0373 per Dth

$0.0366 per Dth

Injection/Withdrawal

$0.0391 per Dth

$0.0391 per Dth

ACA Commodity Surcharge, Currently (injection and withdrawal)*

$0.0014 per Dth

$0.0013 per Dth

Surface Operating Allowance (“SOA”)

Refer to the "Fuel & Loss Allowances" section

 

 

Maximum Tariff Rates - Firm Storage Transportation (FST):

Component

Current Maximum Rates

Maximum Rates effective November 1, 2016

Reservation (monthly, applied to MDWTQ)

$3.7049 per Dth/d

$3.6293 per Dth/d

Commodity

$0.0135 per Dth

$0.0135 per Dth

ACA Commodity Surcharge, Currently (applied to all transportation)*

$0.0014 per Dth

$0.0013 per Dth

Fuel and Loss Retention/LAUF (“Fuel”)

Refer to the "Fuel & Loss Allowances" section

 

* ACA rates will be changing to $0.0013 per Dth on October 1, 2016.   

FUEL and LOSS ALLOWANCES

Storage Operating and LAUF Allowance and Transportation Fuel and Company Use Retention and Transportation LAUF Retention  will be established and subject to change under the tracking mechanism guidelines in National’s GT&C Section 41 tariff sheets. 

 

For informational purposes only, National’s current allowances are as follows:

FSS:  Storage Operating and LAUF Allowance of 0.71% on injection, and 0.71% on withdrawal.

FST:   On injection and non storage-transportation, Transportation Fuel and Company Use Retention and Transportation LAUF Retention (collectively “Transportation Fuel/LAUF”) is 1.11%.  On withdrawal, there is no charged Transportation Fuel/LAUF.

 

BID FORMAT, RANKING, AND CAPACITY AWARD

Requests for rate discounts or discounts of Transportation Fuel/LAUF will not be accepted. Shippers may request all or part of the available injection/withdrawal capability, and are allowed to revise their bids during the posting period. All requests will be assigned prorated injection rights to go along with any requested withdrawal quantity (and vice versa); in proportion to the total withdrawal and injection rights offered in this Open Season.

 

To the extent that a bidder’s existing FSS contract has an MSQ that is less than 453,090 Dth, the maximum amount of deliverability that the bidder can request shall be determined by multiplying the withdrawal/injection rights offered herein by a ratio calculated by dividing the requesting shipper’s MSQ by 453,090.

 

For the purpose of awarding the available FSS and FST capacity, bids will be ranked and deliverability awarded according to the net present value (NPV) of the sums of the incremental FSS capacity charges, FSS demand charges and FST reservation charges per unit of withdrawal deliverability requested.  The NPV calculation will incorporate the length of bidder’s proposed contract term and will utilize a monthly rate of 0.8% (9.6% annually) for discounting purposes. 

 

In the event that a customer bids for FSS deliverability only (no FST) and its bid is equal to the FSS Component of another bid or bids for both FSS and FST service ("Comparable Combined Service Bid"), the FSS only bid shall be considered equal in value to the Comparable Combined Service Bid.

 

For a successful bidder holding discounted FSS/FST contracts, new contractual rates will be calculated by blending existing contract rates with the tariff rates associated with the services offered herein.

 

In the event that National receives two or more bids of equal NPV, a ratable capacity allocation shall be determined, subject to other conditions in this posting.  

 

Upon award, National reserves the right to adjust the injection and/or withdrawal ratchets associated with the successful bidders’ resulting FSS/FST package.

 

Credit Requirements

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

 

EXECUTION OF AGREEMENTS

Successful bidders should execute and return service agreement amendments within 10 business days after they are received. 

 

BID DOCUMENTS

All requests must be submitted using a Service Request Form (“SRF”).  Bidders may complete an SRF online, download the PDF version from the Forms section of our website, or obtain one by contacting our Marketing Department at 716.857.7740.  If not submitted online, the completed form can be, mailed or faxed to the address listed below:

 

 

National Fuel Gas Supply Corporation

6363 Main Street

Williamsville, NY 14221

PHONE: 716.857.7740

FAX 716.857.7310

 

NFGSC  Marketing Representatives:

Terry Falsone – 716.857.7602

Joe Kolis – 716.857.7520

Anthony Limina – 716.857.7924

 

 

Contact Our Marketing Department

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