OS2506-1 IA-IL to TXOK and TXOK to MC

OPEN SEASON – OS2506-1

 

PROPOSAL 1: IOWA-ILLINOIS TO TEXOK

AND

PROPOSAL 2: TEXOK TO MIDCONTINENT

FTS TRANSPORTATION

AVAILABLE WITH SW OPTION

 

This is an Open Season (OS) pursuant to Section 5.1(c)(1) of the General Terms and Conditions (GT&C) of Natural Gas Pipeline Company of America LLC's (Natural's or NGPL's) FERC Gas Tariff (Tariff) for firm transportation capacity. Natural is offering two capacity proposals in this open season, set forth below. Bidders may submit a bid in one or both proposals, in a manner consistent with NGPL's tariff procedures in GT&C Section 5.1(d). Bids may be submitted in either the SFV Rate Form or a fixed Negotiated Rate Form.

 

PROPOSAL 1: IOWA-ILLINOIS TO TEXOK

----------------------------------

Firm capacity with a primary receipt point in Natural's Iowa-Illinois Receipt Zone and a primary delivery point in Natural's Texok Delivery Zone (as further described in the Capacity Available Section below). As described below under Optional Services, the System-Wide Service (SW) Option will be included in the evaluation of bids received. 

 

CAPACITY AVAILABLE (Dth./day)/TERM

----------------------------------

The following firm capacity is available for southbound flow from Segment 28, through Segment 27 to Segment 26 beginning July 1, 2025 through October 31, 2025. 

 

July 1, 2025 through September 30, 2025:  77,875 Dth

October 1, 2025 through October 31, 2025: 60,263 Dth

 

Example of an acceptable bid submission shown below:

 

CONTRACT MDQ BID PERCENTAGE (%): 75%

 

This would result in a capacity allocation as follows^[1]:

 

July 1, 2025 through September 30, 2025:  58,406 Dth

October 1, 2025 through October 31, 2025: 45,197 Dth

 

^[1] Any capacity allocations will be rounded down to the nearest Dth.

 

CURRENTLY AVAILABLE RECEIPT POINTS

----------------------------------

The following receipt point in Segment 28 is available for use as a primary receipt point in this OS: 

 

LOC #   Primary Receipt Point Name       Segment      MDQ

-----   --------------------------        -------      ---

44413   REX/NGPL MOULTIRE                 28           77,875

                                               

Bidders interested in other primary receipt points should contact their Account Director at Natural prior to bid submission.

 

CURRENTLY AVAILABLE DELIVERY POINTS

-----------------------------------

The following delivery point in Segment 26 is available for use as a primary delivery point in this OS: 

 

LOC #   Primary Receipt Point Name       Segment      MDQ

-----   --------------------------        -------      ---

54683   GULFSTH/NGPL DIST. GOODRICH POLK  26           77,875

            

Bidders interested in other primary delivery points should contact their Account Director at Natural prior to bid submission.

 

CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY FROM IOWA-ILLINOIS TO TEXOK:   

------------------------------------- 

Without SW Option                              

Off-Peak                                          

$7.4300                                          

                                               

With SW Option                                 

Off-Peak

$8.3900 

 

Monthly Base Rates are per Dth of Contract MDQ and are exclusive of applicable surcharges.

 

PROPOSAL 2: TEXOK TO MIDCONTINENT

---------------------------------

Firm capacity with a primary receipt point in Natural's Texok Receipt Zone and a primary delivery point in Natural's Midcontinent Delivery Zone (as further described in the Capacity Available Section below). As described below under Optional Services, the System-Wide Service (SW) Option will be included in the evaluation of bids received. 

 

CAPACITY AVAILABLE (Dth./day)/TERM

----------------------------------

10,000 Dth/d is available for southbound flow from Segment 16, westbound through Segment 17 and Segment 15 to Segment 2 beginning July 1, 2025 through October 31, 2025. 

 

CURRENTLY AVAILABLE RECEIPT POINTS

----------------------------------

The following receipt point in Segment 16 is available for use as a primary receipt point in this OS: 

 

LOC #   Primary Receipt Point Name       Segment      MDQ

-----   --------------------------        -------      ---

904567  MMGK EO/NGPL RED OAK LATIMER      16           10,000

                                               

Bidders interested in other primary receipt points should contact their Account Director at Natural prior to bid submission.

 

CURRENTLY AVAILABLE DELIVERY POINTS

-----------------------------------

The following delivery point in Segment 2 is available for use as a primary delivery point in this OS: 

 

LOC #   Primary Receipt Point Name       Segment      MDQ

-----   --------------------------        -------      ---

48931   ET G&P/NGPL COX CITY GRADY        2            10,000

 

Shipper understands that a receipt point in Segment 2 may be used as a delivery point strictly for purposes of setting up a contract with such deliveries provided by displacement depending on available receipt quantities at such point.  

            

Bidders interested in other primary delivery points should contact their Account Director at Natural prior to bid submission.

 

CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY FROM TEXOK TO MIDCONTINENT:   

------------------------------------ 

Without SW Option                              

Off-Peak                                          

$4.9500                                          

                                               

With SW Option                                 

Off-Peak

$7.1500 

 

Monthly Base Rates are per Dth of Contract MDQ and are exclusive of applicable surcharges.

 

BID PARAMETERS

--------------

POSTING and BIDDING PERIOD: June 5, 2025 – June 17, 2025

BID SUBMISSION: Bids must be received by Natural by 2:00 p.m. Central Time on June 17, 2025

 

Please send all bids to: NGPLMARKETING@KINDERMORGAN.COM. Only bids sent to this mailbox by the designated due date and time will be considered for award. 

 

DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 7.55%, discounted to July 1, 2025 which shall be the Discount Date as that term is used in this posting.

 

BID REQUIREMENTS AND OS TERMS AND CONDITIONS 

--------------------------------------------

BID RATE SECONDARY RECEIPT/DELIVERY POINTS

 

Capacity With or Without SW Option:

 

PROPOSAL 1 BID RATE SECONDARY RECEIPT/DELIVERY POINTS

----------------------------------------------------- 

For any capacity awarded to a bidder at a bid reservation rate that is less than the applicable maximum reservation rate set forth in Natural's Tariff, either with or without the SW Option, as applicable, the bid reservation rate will apply to: i) all secondary receipt points located in the zones traversed by the Primary Path including pooling and storage points; and ii) the following secondary delivery points: Nicor (LOC 9258), NIPSCO (LOC 909260), PGLC (LOC 909285), MidAmerican (LOC 10568), Northern Natural (LOC 900203), Northern Border (LOC 908090 and 50706), Midwestern (LOC 25400 and LOC 906107), ANR (LOC 904758 and LOC 906104), PEPL(LOC 906103), Alliance (LOC 37207 and 37208), Rex (LOC 44413), all secondary delivery points located in the Texok Zone, and all storage and pooling points within the zones traversed by the primary path included in bidder's bid.

 

Service provided on a firm basis to all other secondary delivery points not specifically set forth in this section will be provided at the applicable maximum rate set forth in Natural's FERC Gas Tariff, as may be revised from time to time, for service to such points.  

 

PROPOSAL 2 BID RATE SECONDARY RECEIPT/DELIVERY POINTS

-----------------------------------------------------

For any capacity awarded to a bidder at a bid reservation rate that is less than the applicable maximum reservation rate set forth in Natural's Tariff, either with or without the SW Option, as applicable, the bid reservation rate will apply only to the secondary receipt and delivery points in the zones traversed by the primary path.

 

Service provided on a firm basis to all other secondary receipt and delivery points not specifically set forth in this section will be provided at the applicable maximum rate set forth in Natural's FERC Gas Tariff, as may be revised from time to time, for service to such points.  

 

BID REQUIREMENTS AND OS TERMS AND CONDITIONS APPLICABLE TO PROPOSAL 1 AND PROPOSAL 2

OPTIONAL SERVICES

-----------------

The value of the SW Option is applicable to the bid evaluation of the capacity included in this OS, and therefore, the bid reservation rate for the SW Option will be taken into account for bid evaluation purposes. 

 

BID REQUIREMENTS

----------------

Shipper may submit multiple bids, but each bid will be evaluated independently. No contingent bids will be accepted in this OS.

 

Any bid submitted for a specified rate equal to the applicable maximum Tariff rate shall be deemed to be a bid at the applicable maximum Tariff rate, as may be revised from time to time.

 

Bids may be submitted in the SFV Rate Form that is within the applicable minimum and maximum rates set for in Natural's FERC Gas Tariff or in the form of a Negotiated Rate or Negotiated Rate Formula.   

 

All bids for Proposal 1 must include a term start date of July 1, 2025 and a term end date of October 31, 2025 with a bid MDQ percentage that is uniform for the entire term of the bid.

 

All bids for Proposal 2 must include a term start date of July 1, 2025 and a term end date of October 31, 2025 with a uniform MDQ for the entire term of the bid.

 

CREDITWORTHINESS REQUIREMENT

----------------------------

All bidders must satisfy Natural's creditworthiness requirements, as stated in Section 16 of the GT&C of Natural's Tariff, prior to submitting a bid.  Any bid submitted which causes bidder to exceed bidder's pre-determined level of creditworthiness is deemed an invalid bid.  Potential bidders are encouraged to contact Natural's Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.

 

COMMODITY CHARGES AND SURCHARGES

--------------------------------

The reservation rate included in any bid must be for the Base Reservation Rate only (including the SW Option rate, to the extent applicable), which is exclusive of all applicable surcharges.  Any applicable commodity charges and surcharges and reservation surcharges will not be included in the guaranteed revenue stream considered for bid evaluation purposes.  Advance Payments are separately discussed below.  In addition to the awarded Base Reservation Rate, the winning Bidder will pay all applicable commodity charges and surcharges and reservation surcharges at the applicable maximum rate contained in Natural's Tariff, as may be revised from time to time. 

 

FUEL AND GLU CHARGES

--------------------

The reservation rate included in any bid is exclusive of all applicable fuel gas (fuel) and gas lost and unaccounted for (GLU) charges.  Bidder will be required to pay any and all applicable fuel and GLU charges set forth in Natural's Tariff, as may be revised from time to time. 

 

QUANTITY LIMITATIONS/AUTHORIZED OVERRUN SERVICE

-----------------------------------------------

For any capacity that may be awarded at a discounted rate, the bid rate shall only apply to firm daily delivery quantities, including any related capacity release quantities, up to the Bidder's awarded Contract MDQ as a result of any segmentation. Firm deliveries made on any day in excess of the applicable contract MDQ as a result of any segmentation, including any related capacity release quantities, shall be charged all applicable maximum rates, charges, and surcharges set forth in Natural's Tariff, unless otherwise provided.  Without limitation of the foregoing, all Authorized Overrun Service provided to the Awarded Bidder shall be billed at the applicable maximum Authorized Overrun Rate set forth in Natural's Tariff, as may be revised from time to time.

 

ADVANCE PAYMENTS

----------------

An Advance Payment will not increase the value of a bid received in this OS.

 

OBLIGATION TO AWARD CAPACITY

----------------------------

Natural is not obligated to award firm capacity based on the following types of bids pursuant to its Tariff (GT&C Section 5.1(d)(4)):

(1)   on any bid for a term of less than one year, under which service is to commence more than sixty (60) days following the close of the open season (e.g., winter only);

(2)   any bid for a term of one year or greater, under which service is to commence more than twelve (12) months following the close of the open season; and

(3)   any bid for a term which is not continuous from the commencement of service date to the termination of service date reflected in the bid.

 

Natural will not award capacity from just one proposal if Bidder bid on both proposals; Natural will award at least a pro rata share under both proposals or none.

 

Bidder understands that capacity awarded per Proposal 1 and Proposal 2 will be contracted as separate FTS agreements.

 

BID EVALUATION METHODOLOGY

--------------------------

All bids in this OS will be evaluated using the NPV formula which is posted on Natural's internet website on the commencement date of the Posting and Bidding Period.  All bids will be discounted to the Discount Date for NPV purposes. Natural's internet website may be accessed at: https://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=NGPL. The NPV formula for evaluating bids was posted on April 17, 2020, on Natural's internet website under Informational Postings/Notices/Non-Critical and is titled “NET PRESENT VALUE FORMULA”.    

 

BID AGGREGATION 

---------------
In order to determine the successful Bidders, Natural shall aggregate acceptable bids (including prorated bids to the extent applicable) if aggregation would achieve the highest NPV in relation to the available capacity.  

 

DETERMINATION OF HIGHEST ECONOMIC VALUE AND PRORATIONING

--------------------------------------------------------

In any situation where the capacity associated with acceptable bids exceeds the available firm capacity, including situations in which the highest NPV is determined using bid aggregation, then any available capacity will be allocated among bids, up to the MDQ bid, to achieve the optimal solution (highest aggregate NPV for capacity available).  In order to determine the highest economic value of all acceptable bids received, Natural will calculate the NPV of all such bids in two ways: 1) assuming prorationing of bid capacity by one or more Bidders to the extent required to achieve the optimal solution regardless of any bid's stated minimum acceptable quantity and 2) assuming prorationing of bid capacity by all Bidders down to the minimum acceptable quantity set out in the respective bids.  If a bid indicates that the Bidder is not willing to prorate to the extent required by the optimal solution, the available capacity will first be allocated (Initial Allocation) among other bids which indicate that the Bidders are willing to prorate to the extent required by the optimal solution.  The Initial Allocation shall be consistent with the optimal solution for the Bidders participating in the Initial Allocation.  The Bidder(s) not willing to prorate to the extent required by the optimal solution will be afforded the opportunity (irrespective of any stated minimum acceptable quantity) to take any capacity, up to MDQ bid, not allocated to other Bidders under the Initial Allocation.  If allocation of capacity among Bidders in the preceding sentence is required, allocation will be implemented in order to achieve the optimal solution for the capacity remaining to be allocated (irrespective of any stated minimum acceptable quantity), provided that the quantity allocated to a Bidder may not exceed the MDQ bid by that Bidder.  In applying the above procedures, in the event that Natural receives two (2) or more acceptable bids or sets of acceptable bids for service, which produce the same NPV (and produce the highest aggregate NPV), then available capacity will be allocated prorata based on MDQ bid.

 

NPV TIEBREAKER METHODOLOGY

--------------------------

If a tie between bids or sets of bids remains at the end of the prorationing process, Natural will apply the Tiebreaker procedures set forth in Natural's Tariff at Section 5.1(d)(6) of the GT&C. 

 

RESERVATIONS

------------

Natural reserves the right to clarify bids containing non-specific and/or ambiguous bid information (including, without limitation, rate, term, and receipt or delivery points) or discrepancies in bid information, provided that Natural shall have no obligation to do so.

NATURAL GAS PIPELINE COMPANY OF AMERICA LLC

BID FORM FOR FTS CAPACITY

 

In order to be valid, a bid must contain all of the applicable information required by this Bid Form. Any bid submitted for a specified rate equal to the applicable maximum tariff rate shall be deemed to be a bid at the applicable maximum tariff rate, as may be revised from time to time.  

 

DATE ____________________          – OS2506-1

 

BIDDER/SHIPPER NAME _________________________________________________

 

BIDDER/SHIPPER GID _________  

 

Proposal 1 – IOWA-ILLINOIS TO TEXOK

 

    MONTHLY BASE RESERVATION RATE  

    OFF-PEAK RATE

 

FTS _____________

 

SW option (Yes/No) _____________
(If this option is not selected, the bid will be deemed non-SW)

 

RATE OPTION (SELECT ONE): SFV Rate _____ or Fixed Negotiated Rate _____

(If this option is not selected, the bid will be deemed to be an SFV Rate) 

 

TERM START DATE July 1, 2025   TERM END DATE October 31, 2025

 

CONTRACT MDQ BID Percentage (%) _____________

 

PRIMARY RECEIPT POINT(S) AND POINT MDQ(S)

 

                LOC NAME                            LOC #

 

  RECEIPT(S)    REX/NGPL MOULTIRE                   44413

 

PRIMARY DELIVERY POINT(S) AND POINT MDQ(S)

 

                LOC NAME                            LOC #  

 

  DELIVERY(S)   GULFSTH/NGPL DIST. GOODRICH POLK    54683  

               

If Bidder will accept less than the Contract MDQ Bid Percentage, state the minimum acceptable percentage __________%.

 

Any capacity allocations will be rounded down to the nearest Dth as stated above.

 

Proposal 2 – TEXOK TO MIDCONTINENT

 

    MONTHLY BASE RESERVATION RATE  

    OFF-PEAK RATE               

 

FTS _____________           

 

SW option (Yes/No) _____________
(If this option is not selected, the bid will be deemed non-SW)  

 

RATE OPTION (SELECT ONE): SFV Rate _____ or Fixed Negotiated Rate _____
(If this option is not selected, the bid will be deemed to be an SFV Rate) 

 

TERM START DATE July 1, 2025   TERM END DATE October 31, 2025

 

CONTRACT MDQ BID  _____________

 

PRIMARY RECEIPT POINT(S) AND POINT MDQ(S)

 

                LOC NAME            LOC #          MDQ

 

  RECEIPT(S)    _____________       _________      _________

 

                _____________       _________      _________

 

 

PRIMARY DELIVERY POINT(S) AND POINT MDQ(S)

 

                LOC NAME            LOC #          MDQ

 

  DELIVERY(S)   _____________       _________      _________

 

                _____________       _________      _________

                

If Bidder will accept less than the Contract MDQ bid, state Minimum Acceptable MDQ _______________ or, as an alternative, the minimum acceptable percentage __________%.

 

If Bidder bids on both Proposals 1 and 2, state the minimum acceptable percentage that applies to both proposals_____%.

 

Any capacity allocations will be rounded down to the nearest Dth.

 

Is Bidder an affiliate of Natural (Y/N): _________ 

 

_____________________   _____________________________

          NAME                   TITLE

 

_____________________

        DATE

 

Email bids to NGPLMARKETING@KINDERMORGAN.COM