| Notice Text: |
|
DATE: November 3, 2015 TIME: 3:00 PM
TO: ALL ANR PIPELINE COMPANY CUSTOMERS
RE: SE to ML2 with Reduction Option (Open Season #195)
A Shipper has expressed interest in purchasing 11,500 Dth/d of winter FTS-1 and 4,500 of summer FTS-1 transportation capacity from October 1, 2016 to September 30, 2031. The shipper has requested and ANR is agreeable to add to Shipper's transportation agreement a reduction option as provided under Part 6.32.5 of ANR's General Terms & Conditions.
The proposed reduction option provides that subject to the conditions described below, Shipper shall have a one-time option, which may be exercised no later than two (2) years from the commencement date, to reduce its MDQ. Shipper's exercise of this reduction option is subject to the following conditions:
1) If Transporter has entered into one or more additional firm transportation agreements with the Humboldt Lake Road meter station as the primary delivery point under such agreements, and (i) each such agreement has an initial term of at least three (3) years and (ii) the total MDQ under the agreements is at least 2,500 Dth/d but less than 5,000 Dth/d on an annual basis, then Shipper shall be entitled to reduce its MDQ up to the firm contract quantity, such reduction to become effective on the date that is ten (10) years from the commencement date.
2) If Transporter has entered into one or more additional firm transportation agreements with the Humboldt Lake Road meter station as the primary delivery point under such agreements, and (i) each such agreement has an initial term of at least three (3) years and (ii) the total MDQ under the agreements is at least 5,000 Dth/d on an annual basis, then Shipper shall be entitled to reduce its MDQ up to the firm contract quantity, such reduction to become effective on the date that is eight (8) years from the commencement date.
Shipper's transportation agreement has a primary receipt point of the Southeast Headstation (103565) and a primary delivery point of Humboldt Lake Road (1402187).
As provided by Part 6.32.5, granting of the reduction option requires ANR to hold an open season. The open season will commence at 3:00 PM CST on Tuesday, November 3, 2015 and will end at 3:00 PM CST on Tuesday, November 10, 2015. Winning bidders will be notified no later than 3:00 PM CST on Thursday, November 12, 2015.
Pursuant to ANR's tariff, all reduction option requests will be treated equally under this open season. All bids submitted during the open season may be withdrawn and/or replaced with an equal or higher Net Present Value (NPV) bid during the open season period. Bids cannot be replaced with lower NPV bids. Parties interested in this capacity may specify an acceptable minimum prorated MDQ. ANR reserves the right to reject any bid that has a negative NPV. ANR reserves the right to reject negotiated rate bids. ANR reserves the right to reject bids with deviations in monthly MDQs. ANR reserves the right to reject contingent and incomplete bids. ANR has the right but not the obligation to clarify and finalize incomplete bids. Upon completion of this open season, all remaining bids will be considered binding until a successful bid(s) has been awarded.
All complete bids received during the open season will be evaluated and compared with the Initial Shipper's request for service on a Net Present Value (NPV) basis using the factors below.
NPV = En [R*(1 / (1+i)**n)]
En = Summation of days 1 through n (Sigma)
n = term in days
R = Incremental daily revenue
i = Daily Discount Factor (current FERC quarterly rate) This rate can be found at http://www.ferc.gov/legal/acct-matts/interest-rates.asp
Capacity will be awarded to the Initial Shipper or to the highest bid(s) for which the NPV exceeds the NPV of the Initial Shipper. If more than one bid has the same NPV, then the capacity shall be awarded pro rata to shippers with matching NPV bids.
Parties interested in this capacity should submit a binding Service Request Form via email to anrmarketing@transcanada.com. For further information please contact your designated Account Manager or one of the Account Managers listed below.
Ken Garman 262-792-5406
Bruce Hopper 262-792-5403
Gary Skarb 248-205-4536
Amy Sowa 832-320-5374
Open Season #195
Binding Service Request Form
Firm Transportation Service
Company Name: _________________________
DUNS: _________________________
Service Commencement Date Requested: October 1, 2016
Service End Date Requested: September 30, 2031 with reduction option as stated in the open season.
Transportation Quantity MDQ (Dth/d): ___________________
Primary Receipt Point Name: Southeast Headstation
Primary Receipt Location ID Number: 103565
Primary Delivery Point Name: Humboldt Lake Road
Primary Delivery Location ID: 1402187
Rate Schedule Requested: FTS-1
Rate election: _________________________
Minimum Acceptable Prorated MDQ Volume: _________________________
Signed:
Title:
Phone:
|
|