Critical: N
Notice Eff Date: 08/26/2014
Notice Eff Time: 07:32:09 CDT
Notice End Date: 09/23/2014
Notice End Time: 15:00:00 CDT
Notice ID: 5977734
Notice Stat Desc: Initiate
Notice Type Desc: TSP Cap Offer / Open Season
Post Date: 08/26/2014
Post Time: 07:32:09 CDT
Prior Notice: 0
Reqrd Rsp Desc: No response required
Rsp Date: 09/23/2014
Rsp Time: 15:00:00 CDT
TSP: 007933021

Notice Text:

Subject: Open Season for Diamond East Project

Transcontinental Gas Pipe Line Company, LLC (“Transco”) hereby announces that it is holding a non-binding open season for its Diamond East Project (referred to herein as the “Project”), which will provide from 500,000 dt/day to in excess of 1,000,000 dt/day of new, year-round firm transportation capacity by a proposed in-service date in mid-2018. 
The open season will commence at 10:00 a.m. CST on Tuesday, August 26, 2014 and end at 3:00 p.m. CDT on Tuesday, September 23, 2014.
A map depicting the project path can be found here.
The Diamond East Project will provide incremental firm transportation capacity for growing supplies of natural gas from northeast Pennsylvania along Transco’s existing Leidy Line to Transco’s Zone 6 Pool.
The primary firm transportation path under the Project will begin at the existing Zone 6 Marc I interconnection with Central New York Oil and Gas Company, LLC in Lycoming County, Pennsylvania on Transco’s Leidy Line and will terminate at Transco’s existing Zone 6 Pooling Station 210 located in Mercer County, New Jersey.  Transco will entertain alternate receipt locations along the Leidy Line during the open season; however, Transco may or may not choose to provide access from those locations as a part of the Project.
A cost of service-based, daily reservation recourse rate will be available for the firm transportation service under the Project, as such rate may change from time to time.  The estimated initial recourse 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 plans to offer shippers a negotiated daily reservation rate in the low $0.40’s to high $0.50’s per dt/day for firm transportation service under the Project dependent on the final project volume.
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, all as amended from time to time. 
Open Season Procedure
Any shipper desiring firm transportation service under the Project must complete the Open Season Transportation Request form, signed by a duly authorized representative of the requesting shipper, and submit the completed form to Transco by the date and time indicated above. 
Any shipper requesting a TCQ of at least 250,000 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 lower negotiated rates under the Project, compared to non-Anchor Shippers, on a not unduly discriminatory basis.
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 in accordance with the process described below.  Transco, in its sole discretion, may:
  1. revise the scope and/or capacity of the Project including, but not limited to, changes in receipt and delivery points;
  1. starting with the shipper with the largest requested TCQ, allow shippers to voluntarily reduce or revise their requested TCQ;
  1. allocate the available firm transportation capacity under the Project; or
  1. decide 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 primary contract term then, on a pro rata basis, based on their requested TCQ.  Any remaining capacity will be allocated to the other requesting shippers, if necessary, first to those selecting the longest primary contract term then on a pro rata basis based on their requested TCQ.
Requests received by Transco after the close of this open season period may be accepted or rejected by Transco on a not unduly discriminatory basis.  If Transco accepts requests after the close of this open season, the Project capacity may be subject to re-allocation in accordance with the methodology described in the preceding paragraph.
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 Jamie Taft at (713) 215-2404.