TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC
Critical: N
Notice Eff Date: 08/08/2013
Notice Eff Time: 10:00:00 CDT
Notice End Date: 09/27/2013
Notice End Time: 15:00:00 CDT
Notice ID: 5226842
Notice Stat Desc: Supersede
Notice Type Desc: TSP Cap Offer / Open Season
Post Date: 08/08/2013
Post Time: 09:17:06 CDT
Prior Notice: 5226838
Reqrd Rsp Desc: Respond by specified date and time
Rsp Date: 09/27/2013
Rsp Time: 15:00:00 CDT
TSP: 007933021
TSP Name: TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC

Notice Text:

Subject: Open Season for Transco's Atlantic Sunrise Project

Transcontinental Gas Pipe Line Company, LLC (“Transco”) hereby announces that it is holding an open season for its Atlantic Sunrise Project (referred to herein as the “Project”), which will provide from 450,000 dt/day to in excess of 1,000,000 dt/day of new, year-round firm transportation capacity by a proposed in-service date of July 1, 2017.

The open season will commence at 10:00 a.m. CST on Thursday, August 8, 2013 and end at 3:00 p.m. CDT on Friday, September 27, 2013.

The Atlantic Sunrise Project will provide additional firm transportation capacity for growing supplies of natural gas from northern Pennsylvania along Transco’s existing Leidy Line to premium markets along the Transco pipeline system stretching from the northeastern US in Transco’s Zone 6, to Zone 5 and terminating in Zone 4.

Project Path Map

The primary firm transportation path under the Project will terminate at Transco’s existing Zone 4 point of interconnection between Transco’s mainline and Mobile Bay Lateral at Station 85 located at milepost 784.66 on Transco’s mainline in Choctaw County, Alabama (the Zone 4 Pool), and Transco’s existing Zone 4A point of interconnection between Seller’s mainline and Mobile Bay Lateral atStation 85 located at milepost 0.00 on the Mobile Bay Lateral (the Zone 4A Pool).

Shippers may request receipt points on Transco’s Leidy Line located between the existing Grugan Interconnect at MP 190.2 in Clinton County, Pennsylvania (on the western portion of Transco’s Leidy Line) and Transco’s existing Station 515 in Luzerne County, Pennsylvania (on the eastern portion of Transco’s Leidy Line).

Receipt Point Map

The Project will provide primary firm transportation access to Transco’s Zone 4 and 4A Pools and access between Station 195 and Station 85 to 169 delivery points at 66 nominatable points representing over 19 Bcf of delivery meter capacity.  Included in the Project’s path are the following pipeline delivery points (including those points that are bi-directional) and the Transco pooling points:

Point Name

Location

Status

Zone

Pleasant Valley bi-directional interconnect with Dominion’s Cove Point Pipeline

Milepost 1586.20 on Transco’s mainline in Fairfax County, Virginia.

Existing

Zone 5

Boswell’s Tavern bi-directional interconnect with TCO

Milepost 1519.91 on Transco’s mainline in Louisa County, Virginia.

Existing

Zone 5

Zone 5 Market Pool at Station 165

Milepost 1412.99 on Transco’s mainline in Pittsylvania County, Virginia.

Existing

Zone 5

Cascade Creek bi-directional interconnect with ETNG.

Milepost 1384.80 on Transco’s mainline in Rockingham County, North Carolina.

Existing

Zone 5

Cardinal interconnect with Cardinal Pipeline

Milepost 1375.45 on Transco’s mainline in Rockingham County, North Carolina.

Existing

Zone 5

Carolina Gas interconnect with Carolina Gas Transmission Company

Milepost 1213.17 on Transco’s mainline in Spartanburg County, South Carolina.

Existing

Zone 5

Elba – South Carolina

Milepost 1149.00 on Transco’s mainline in Anderson County, South Carolina.

Existing

Zone 5

Elba – Georgia

Milepost 1148.20 on Transco’s mainline in Hart County, Georgia

Existing

Zone 4

Sabal Trail

Milepost 784.66 on Transco’s mainline in Tallapoosa County, Alabama.

Proposed by 3rd Party

Zone 4

Zone 4 Pool at the interconnection between Transco’s mainline and Mobile Bay Lateral at Station 85 located at (the Zone 4 Pool.

Milepost 784.66 on Transco’s mainline in Choctaw County, Alabama.

Existing

Zone 4

Zone 4A Pool at the interconnection between Transco’s mainline and Mobile Bay

Milepost 0.00 on the Mobile Bay Lateral in Choctaw County, Alabama.

Existing

Zone 4A

Rates 

A cost of service-based, daily reservation recourse rate will be available for the firm transportation service under the Project.  Such estimated rate will be calculated using Transco’s current estimated cost of the Project facilities, estimates for operation and maintenance expenses based on costs for similar facilities, the billing determinants under the Project and other cost factors. 

Transco also will offer shippers a negotiated daily reservation rate(s) for firm transportation service under the Project.  The negotiated daily reservation rate(s) to be offered will be based on many factors, including Transco’s evaluation of the requested receipt points and their impact on the total Project costs, the expected total billing determinants under the Project, and the requested TCQs. 

As part of any negotiated rate arrangement under the Project, Transco will agree to:

(i)        a term extension provision providing the shipper the option to extend the term of the service agreement for a five-year period for all or a portion of the TCQ in effect during the primary term and, at the shipper’s option, at either the existing negotiated rate or the applicable recourse rate; and

(ii)       if shipper elects under (i) above to extend the term of the service agreement at the existing negotiated rate, then Transco will offer a second term extension provision providing the shipper the option to extend the term of the service agreement for a one-year period for all or a portion of the TCQ in effect during the first term extension at the applicable recourse rate.

In addition to the daily reservation rates described above, shippers will be responsible for compressor fuel and line loss make-up retention, electric power charges, commodity charges and all applicable surcharges as approved by the FERC for firm transportation service under the Project.  Transco expects, subject to the outcome of the open season, that its FERC certificate application for the Project will propose rolled-in treatment of the Project compressor fuel and electric power charges.

Open Season Procedure

Any shipper desiring firm transportation service under the Project must complete and submit to Transco the attached Open Season Transportation Request form, signed by a duly authorized representative of the requesting shipper by the date and time indicated above.

Any shipper requesting a TCQ of at least 420,000 dt/day will qualify as an Anchor Shipper under the Project.  Anchor Shippers will receive priority with regard to allocation of the Project capacity (if necessary, as described below) and may be provided preference with regard to negotiated rates under the Project.

Upon receipt of all timely submitted Open Season Transportation Request forms, Transco will evaluate the total capacity requested and if necessary make an initial allocation under the process described below.  Transco, in its sole discretion, may:

(i)     revise the scope and/or capacity of the Project;

(ii)    starting with the shipper with the largest requested TCQ, allow shippers to voluntarily reduce or revise their requested TCQ and Project path quantities, as applicable;

(iii)  allocate the available firm transportation capacity under the Project; or

(iv)  determine not to pursue the Project.

If Transco allocates the available firm transportation capacity under the Project, then the capacity will be allocated first to those who qualify as Anchor Shippers, with capacity among the Anchor Shippers being allocated, if necessary, first to those selecting the longest term then on a pro rata basis based on their requested capacity.  Any remaining capacity will be allocated to the other requesting shippers first to those selecting the longest term then on a pro rata basis based on their requested capacity on such path.

The TCQs and Project path quantities indicated in the Open Season Transportation Request form and ultimately set forth in the shipper’s executed precedent agreement will be subject to the allocation procedure described above and the other terms and conditions of this Open Season.  In the event that a final allocation occurs, Transco will provide notice to each shipper of its allocated TCQ and Project path quantities, if any, within 15 days of the closing of the open season.

Requests received by Transco after the close of the open season period may be accepted or rejected by Transco on a not unduly discriminatory basis.

Shippers will be responsible for confirming the availability of their requested receipt and delivery points with the point operators.  Please note that the individual receipt and delivery meter capacities in most cases will be less than the firm transportation capacity under the Project.

Transco reserves the right to reject any requests for service under the Project on a not unduly discriminatory basis.

If you have any questions regarding this open season, please contact Gary Duvall at (713) 215-2589.

Open Season Transportation Request Form