To: ALL SHIPPERS
From: Gil Perez (346)228-4168 Gilberto.Perez@williams.com
Christine Wallat (713)215-6371 Christine.Wallat@williams.com
Subject: SOLICITING COMPETING E-MAIL BIDS FOR FIRM TF-1 TRANSPORTATION CAPACITY
Northwest Pipeline LLC (“Transporter”) has posted the following four packages
of available firm TF-1 Large Customer transportation capacity to its Electronic
Bulletin Board (“EBB”) for competitive bid pursuant to the “Available Capacity”
provisions of Transporter’s Tariff.
NOTE: BIDS FOR POSTED CAPACITY WILL BE CONDUCTED VIA E-MAIL.
Please call Gil @ 346-228-4168 or Christine @ 713-215-6371 if you have any
questions. Time deadlines will be electronically monitored and implemented.
PACKAGE 89
RECEIPT DELIVERY TOTAL INITIAL PRIMARY PREARRANGED
POINT POINT DTH/D CONTRACT TERM OFFER___
Stanfield Langley 13,000
Bennett 27,000
Total 40,000 11/01/2024 – 03/31/2025 Yes
Min. Acceptable Bid: $0.35 Dth/d
Min. Acceptable Bid Vol: 1 Dth/d
Max. Acceptable Bid Vol: 40,000 Dth/d
Bid Open Date: 09/17/2024
Bid Close Date: 09/25/2024 (3:00 PM Mountain Time)
PA Match Deadline: 09/27/2024 (3:00 PM Mountain Time)
Award Deadline: 09/30/2024 (11:00 AM Mountain Time)
Evergreen: No
PACKAGE 86
RECEIPT DELIVERY TOTAL INITIAL PRIMARY PREARRANGED
POINT POINT DTH/D CONTRACT TERM OFFER___
Stanfield Kern River Muddy Creek Dlv. 40,000
Langley 8,000
Total 48,000 04/01/2025 – 10/31/2042 Yes
Min. Acceptable Bid: $0.35 Dth/d
Min. Acceptable Bid Vol: 1 Dth/d
Max. Acceptable Bid Vol: 48,000 Dth/d
Bid Open Date: 09/17/2024
Bid Close Date: 09/25/2024 (3:00 PM Mountain Time)
PA Match Deadline: 09/27/2024 (3:00 PM Mountain Time)
Award Deadline: 09/30/2024 (11:00 AM Mountain Time)
Evergreen: Yes
PACKAGE 88
RECEIPT DELIVERY TOTAL INITIAL PRIMARY PREARRANGED
POINT POINT(S) DTH/D CONTRACT TERM OFFER___
Stanfield Kern River Muddy Creek Dlv. 15,000
Bennett 17,179
Total 32,179 11/01/2025 – 10/31/2042 Yes
Min. Acceptable Bid: $0.35 Dth/d
Min. Acceptable Bid Vol: 1 Dth/d
Max. Acceptable Bid Vol: 32,179 Dth/d
Bid Open Date: 09/17/2024
Bid Close Date: 09/25/2024 (3:00 PM Mountain Time)
PA Match Deadline: 09/27/2024 (3:00 PM Mountain Time)
Award Deadline: 09/30/2024 (11:00 AM Mountain Time)
Evergreen: Yes
PACKAGE MAR
RECEIPT DELIVERY TOTAL INITIAL PRIMARY PREARRANGED
POINT POINT DTH/D CONTRACT TERM OFFER___
Stanfield Bennett 5,000 04/01/2033 – 10/31/2042 Yes
Min. Acceptable Bid: $0.35 Dth/d
Min. Acceptable Bid Vol: 1 Dth/d
Max. Acceptable Bid Vol: 5,000 Dth/d
Bid Open Date: 09/17/2024
Bid Close Date: 09/25/2024 (3:00 PM Mountain Time)
PA Match Deadline: 09/27/2024 (3:00 PM Mountain Time)
Award Deadline: 09/30/2024 (11:00 AM Mountain Time)
Evergreen: Yes
DISCOUNTED RATE(S) AND POTENTIAL ADJUSTMENT(S)
If any one or more of the four packages of capacity is awarded at a rate that
is less than the maximum reservation rate for large customers under Rate
Schedule TF-1 of the Tariff (“Maximum Rate”), then each such rate shall be
considered a “Discounted Rate”. The Discounted Rate will apply to the package
of capacity no matter which receipt and delivery locations are used by Shipper
or by Replacement Shipper(s). The Discounted Rate shall remain fixed throughout
the Primary Term unless the Maximum Rate falls below such Discounted Rate. If
the Maximum Rate falls below such Discounted Rate during the Primary Term, then
such Discounted Rate shall automatically equal the Maximum Rate for such time
as the Maximum Rate remains below such Discounted Rate during the Primary Term.
If Shipper’s transportation service agreement (“TSA”) should be extended after
the Primary Term via the unilateral evergreen provision, then during any
extension period(s) the Discounted Rate shall equal ninety-four percent (94%)
of the then applicable Maximum TF-1 Reservation Rate, as it may change from
time to time.
In addition to the Discounted Rate (or the Maximum Rate if applicable), Shipper
will pay any maximum volumetric charge, fuel reimbursement charge and other
charges (i.e., ACA, CRM Surcharge, scheduled overrun, penalties, etc.) approved
by FERC under Rate Schedule TF-1 of the Tariff for the Capacity, as the same
may be adjusted from time to time with FERC’s approval.
EVERGREEN PROVISION
Transporter’s standard unilateral evergreen provision under Section 12.1 of
Transporter’s Form of Rate Schedule TF-1 Service Agreement of Transporter’s
Tariff shall apply to the pre-arranged transaction except the TSA for package
89 which will not have an evergreen provision.
NONCONFORMING PROVISION(S) IN SHIPPER’S TSA(S)
The following non-conforming provision shall be included in the TSA for each
package, except the TSA for package 89 whose primary term is too short for it
to apply.
POTENTIAL DELIVERY POINT AMENDMENT OR RATE REDUCTION: Transporter is currently
seeking the authorizations necessary to construct a new delivery point on
Northwest’s mainline at or near milepost 437.6 in Lincoln County, Wyoming
(“Overthrust II Delivery Point”) at Transporter’s expense. If Transporter
receives such authorizations by September 1, 2026, then Transporter shall use
commercially reasonable efforts to construct and place in service the Overthrust
II Delivery Point by November 1, 2026. Ten (10) days before Transporter intends
to place the Overthrust II Delivery Point in service, Transporter shall provide
Shipper notice. Shipper shall then have the one-time right to amend the Primary
Delivery Point for all or part of the awarded capacity from the Kern River
Delivery Point to the Overthrust II Delivery Point before the latter is placed
in service. If despite Transporter’s commercially reasonable efforts, it has
been unable to obtain by September 1, 2026, all authorizations needed to
construct the Overthrust II Delivery Point, then Transporter shall be relieved
of any obligation to construct the Overthrust II Delivery Point and the rate in
this Agreement shall be reduced by $.04/Dth effective November 1, 2026. If
Transporter has been able to obtain by September 1, 2026 all Authorizations
needed to construct the Overthrust II Delivery Point, but it has not been placed
in service by November 1, 2026, then the rate in this Agreement shall be reduced
by $0.04/Dth beginning November 1, 2026 and continuing until the date the
Overthrust II Delivery Point is placed in service. However, such reduction shall
remain in place through the Primary Term End Date if the Overthrust II Delivery
Point is not placed in service by November 1, 2027, and Transporter shall be
relieved of its obligation to construct the Overthrust II Delivery Point.
The following non-conforming provision shall be included in the TSA for each
package awarded at a Discounted Rate, except the TSA for package 89 whose
primary term is too short for it to apply.
SUPPORT OF DISCOUNTED RATE(S): Transporter will not file or cause to be filed
with FERC under Section 4 of the Natural Gas Act (“NGA”) any request to change
the Discounted Rate(s) provided under this Agreement. Shipper will not file or
cause to be filed with FERC under Section 5 of the NGA, any request to change
the Discounted Rate(s) provided under this Agreement. In the event of a
challenge by a third party regarding the Discounted Rate(s) provided under this
Agreement, and upon written request from Transporter, Shipper will file in
support of such Discounted Rate(s) in Transporter's rate case filed under either
Section 4 or 5 of the NGA during the term that such rate(s) apply. For rate
cases that involve a pre-filed settlement, Shipper agrees to support the
Discounted Rate(s) provided under this Agreement during the pre-settlement
process.
PROCEDURE FOR BIDDING AND AWARDING THE POSTED CAPACITY
Transporter will only accept e-mail bids for the posted package(s) of available
capacity from credit worthy shippers. Any duplicate bids will be
discarded. E-mail receipt time stamp will be used to determine timely arrival.
A bidder who withdraws its bid may not submit another bid with a lower economic
value. A bidder may not submit multiple bids for the same capacity.
Bids will be accepted for the primary contract term(s). Transporter is not
obligated to accept bids for shorter term(s) than posted for the available
capacity or different path(s) than posted for the available capacity.
Transporter may accept or reject any such bids. Bidder may submit a bid on an
individual package or any combination of the listed packages, but is not
required to bid on all packages.
Awarding Capacity
Transporter will award the capacity outlined herein on a total net present value
(NVP) basis. First, the NPV of each package bid on by a party shall be determined
using the following formula:
Where:
i = monthly payment period
n = term in months
R = incremental monthly reservation revenue (Bid Qty (Dth/d)*Bid Daily Rate
($/Dth)*#Days in month i)
DR = the discount rate
Second, the NPV of each package bid on by a party shall then be summed to
determine the total NPV of such party’s bid(s). The party whose bid(s)
generate(s) the highest total NPV will be awarded the capacity.
In case of a tie, each tied party will have the right to improve the total NPV
of its bid(s) by submitting improved bid(s) on the package(s) within 24 hours
of the bid close time.
If a tie still exists, then such capacity shall be awarded on a pro-rata basis
per package to the parties bidding on such package who have indicated a
willingness to accept a pro-rata share, subject to the pre-arranged shipper’s
one time right to match the bid(s) of the party or parties whose bid(s) resulted
in the highest total NPV. All bidding and awarding will be conducted in
accordance with General Terms and Conditions Section 25 of Transporter’s Tariff.
Transporter’s acceptance of Shipper’s bid(s) for this firm capacity will
constitute a binding offer from Shipper to Northwest for the capacity and the
terms and conditions posted herein.
If any of the capacity is awarded to Shipper, Shipper agrees to submit a
request in Williams Northwest Passage within two (2) business days of
notification by Transporter.
NORTHWEST PIPELINE EMAIL BID FORM
_______________________
(Date)
_______________________________________
_______________________________________
_______________________________________
(Company Name & Address)
Contact Name: ________________________________
Contact Phone Number: ________________________________
E-mail: ___________________________________
Re: BID FOR AVAILABLE FIRM-TF-1 TRANSPORTATION CAPACITY
________________________ (“Shipper”) is requesting that Transporter consider
the following bid(s) for available TF-1 transportation capacity as noted
below. Shipper understands that the procedures outlined in this posting will
be utilized in accepting, evaluating and awarding such bid.
This bid supersedes any bids previously submitted by Shipper, if applicable.
1. Contract Demand – Package 89: 40,000 Dth/d OR ______________ Dth/d
The minimum Contract Demand Shipper is willing to accept in the event
Transporter must allocate capacity: ____________Dth/d
Primary Receipt Point and MDQ:
Stanfield 40,000 Dth/d or ____________ Dth/d
Primary Delivery Point and MDDOs:
Langley 13,000 Dth/d or ____________Dth/d
Bennett 27,000 Dth/d or ____________Dth/d
Reservation Charge (per Dth of CD):
______ Maximum Base Tariff Rate, plus applicable surcharges
(Or)
$_____, plus applicable surcharges
A Shipper bid of less than the Maximum Base Tariff Rate will include the
following discount condition: “The Discounted Rate will apply to this capacity
no matter which receipt and delivery point locations are used by Shipper or by
Replacement Shipper(s).”
Primary Term Begin Date: 11/01/2024
Primary Term End Date: 03/31/2025
Evergreen Provision: NO
2. Contract Demand – Package 86: 48,000 Dth/d OR ______________ Dth/d
The minimum Contract Demand Shipper is willing to accept in the event
Transporter must allocate capacity: ____________Dth/d
Primary Receipt Point and MDQ:
Stanfield 48,000 Dth/d or ____________ Dth/d
Primary Delivery Point and MDDOs:
Kern River Muddy Creek Del. 40,000 Dth/d or ____________Dth/d
Langley 8,000 Dth/d or ____________Dth/d
Reservation Charge (per Dth of CD):
______ Maximum Base Tariff Rate, plus applicable surcharges
(Or)
$_____, plus applicable surcharges
A Shipper bid of less than the Maximum Base Tariff Rate will include the
following discount condition: “The Discounted Rate will apply to this capacity
no matter which receipt and delivery point locations are used by Shipper or by
Replacement Shipper(s). The Discounted Rate shall remain fixed throughout the
Primary Term of this Agreement unless the Maximum Rate falls below such
Discounted Rate. If the Maximum Rate falls below such Discounted Rate during
the Primary Term, then such Discounted Rate shall automatically equal the
Maximum Rate for such time as the Maximum Rate remains below such Discounted
Rate during the Primary Term. If this Agreement should be extended after the
Primary Term via an evergreen provision, then during any extension period(s)
the Discounted Rate shall equal ninety-four percent (94%) of the then applicable
Maximum TF-1 Reservation Rate, as it may change from time to time.”
Primary Term Begin Date: 04/01/2025
Primary Term End Date: __________
Evergreen Provision – Please choose one of the following:
NO ______ or YES–Standard Bilateral ______ or YES-Standard Unilateral ______
3. Contract Demand – Package 88: 32,179 Dth/d OR ______________ Dth/d
The minimum Contract Demand Shipper is willing to accept in the event
Transporter must allocate capacity: ____________Dth/d
Primary Receipt Point and MDQ:
Stanfield 32,179 Dth/d or ____________ Dth/d
Primary Delivery Point and MDDOs:
Kern River 15,000 Dth/d or ____________Dth/d
Bennett 17,179 Dth/d or ____________Dth/d
Reservation Charge (per Dth of CD):
______ Maximum Base Tariff Rate, plus applicable surcharges
(Or)
$_____, plus applicable surcharges
A Shipper bid of less than the Maximum Base Tariff Rate will include the
following discount condition: “The Discounted Rate will apply to this capacity
no matter which receipt and delivery point locations are used by Shipper or by
Replacement Shipper(s). The Discounted Rate shall remain fixed throughout the
Primary Term of this Agreement unless the Maximum Rate falls below such
Discounted Rate. If the Maximum Rate falls below such Discounted Rate during
the Primary Term, then such Discounted Rate shall automatically equal the
Maximum Rate for such time as the Maximum Rate remains below such Discounted
Rate during the Primary Term. If this Agreement should be extended after the
Primary Term via an evergreen provision, then during any extension period(s)
the Discounted Rate shall equal ninety-four percent (94%) of the then applicable
Maximum TF-1 Reservation Rate, as it may change from time to time.”
Primary Term Begin Date: 11/01/2025
Primary Term End Date: __________
Evergreen Provision – Please choose one of the following:
NO ______ or YES–Standard Bilateral ______ or YES-Standard Unilateral ______
4. Contract Demand – Package MAR: 5,000 Dth/d OR ______________ Dth/d
The minimum Contract Demand Shipper is willing to accept in the event
Transporter must allocate capacity: ____________Dth/d
Primary Receipt Point and MDQ:
Stanfield 5,000 Dth/d or ____________ Dth/d
Primary Delivery Point and MDDOs:
Bennett 5,000 Dth/d or ____________Dth/d
Reservation Charge (per Dth of CD):
______ Maximum Base Tariff Rate, plus applicable surcharges
(Or)
$_____, plus applicable surcharges
A Shipper bid of less than the Maximum Base Tariff Rate will include the
following discount condition: “The Discounted Rate will apply to this capacity
no matter which receipt and delivery point locations are used by Shipper or by
Replacement Shipper(s). The Discounted Rate shall remain fixed throughout the
Primary Term of this Agreement unless the Maximum Rate falls below such
Discounted Rate. If the Maximum Rate falls below such Discounted Rate during
the Primary Term, then such Discounted Rate shall automatically equal the
Maximum Rate for such time as the Maximum Rate remains below such Discounted
Rate during the Primary Term. If this Agreement should be extended after the
Primary Term via an evergreen provision, then during any extension period(s)
the Discounted Rate shall equal ninety-four percent (94%) of the then applicable
Maximum TF-1 Reservation Rate, as it may change from time to time.”
Primary Term Begin Date: 04/01/2033
Primary Term End Date: ___________
Evergreen Provision – Please choose one of the following:
NO ______ or YES–Standard Bilateral ______ or YES-Standard Unilateral ______
[Signature page follows.]
Sincerely,
______________________________
(Company Name)
_____________________________
(Authorized Person’s Name and Title)
_____________________________
(Signature and Date)
Affiliate of Transporter: Yes________ No_________
Send completed e-mail bid form to: NWPBD_Optimization@williams.com
(Reserved for Transporter’s response)
Accepted / Rejected by Transporter
Rejected Reason: __________________________________________
Date: _______________Name: __________________________
The Transporter’s acceptance of Shipper’s bid(s) for this firm capacity will
constitute a binding offer(s) from Shipper to Transporter for the capacity
and the terms and conditions posted herein. If any of the capacity is awarded
to Shipper, Shipper agrees to submit request(s) in Transporter’s Northwest
Passage within two (2) business days of notification by Transporter.