FLORIDA GAS TRANSMISSION COMPANY, LLC EAST TO WEST

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FLORIDA GAS TRANSMISSION COMPANY, LLC
EAST TO WEST PROJECT
BINDING OPEN SEASON
Florida Gas Transmission Company, LLC (“FGT”) will conduct a binding Open Season for its
proposed East-West Project (the “Project”) beginning at 9:00 a.m. Central Time (“CT”) on
December 22, 2015 and ending at 3:00 p.m. CT on January 20, 2016.
Project Description
FGT is proposing a change in the operation to a portion of the Western Division of its pipeline
system. More particularly, FGT plans to modify and rearrange certain facilities to be bidirectional and allow east to west flow from near its Station 75 in St. Landry Parish, Louisiana,
to its Station 4 in Matagorda County, Texas. FGT also plans to construct a lateral from Station 4
to Gulf South Pipeline Company’s proposed Coastal Bend Header in Wharton County, Texas, as
well as a lateral from near Station 6 to points around Port Arthur in Jefferson County, Texas.
FGT will seek Federal Energy Regulatory Commission (“FERC”) approval to construct and
rearrange the necessary facilities, including the laterals, and initiate a new Rate Schedule FTSWD-2 for the Western Division east to west service. FGT’s new FTS-WD-2 Service will
provide substantially similar rights, terms and conditions as contained in FGT’s Rate Schedule
FTS-WD. FGT anticipates that service to the Coastal Bend Header will be available in the 3rd
Quarter of 2018, subject to timely and necessary regulatory approvals. However, FTS-WD-2
service to other existing or proposed delivery points, including along the Port Arthur lateral
described above, may be phased to commence service as early as the 2nd Quarter of 2018.
Firm Transportation Capacity
As referenced above, capacity in this Open Season is offered under FGT’s proposed Rate
Schedule FTS-WD-2.
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FGT has secured binding commitments with Anchor Shippers. Such commitments will not be
subject to pro-rationing and will be considered in determining, in FGT’s discretion, the optimal
size and design of the Project.
FGT is offering other interested parties the opportunity to attain status as an Anchor Shipper
(with no pro-rationing). To be considered eligible for Anchor Shipper status, a party must
execute an acceptable binding Precedent Agreement for (i) a minimum capacity of 100,000
Dth/d and, depending on rate level, (ii) a minimum term of either 10 or 15 years. The primary
term for all other requests for FTS-WD-2 Service on the Project shall be a minimum of 10 or 15
years, depending on rate level.
Primary Receipt and Delivery points subject to this open season are to new or existing points
within the Project path, although FGT may consider other points.
For Shippers desiring Recourse Rates for FTS-WD-2 Service, such will be established in the
contemplated FERC proceeding. For Shippers interested in a Negotiated Rate, please contact
one of the FGT representatives identified below. Shippers will also be responsible for all
applicable Surcharges and Fuel Reimbursement related to the service proposed under Rate
Schedule FTS-WD-2.
Open Season Procedures
During this Open Season, any Shipper interested in contracting for the subject capacity should
execute and return the following documents:

Precedent Agreement

Attachment 1 to the Precedent Agreement which must include the following:
o Contract Maximum Daily Transportation Quantity (“MDTQ”)
o Primary Receipt and Delivery points and Maximum Daily Quantity (“MDQ”)
o An election of a fixed Negotiated Reservation Rate or the FTS-WD-2
Recourse Rates.
o Primary Term

Credit Agreement (Attached to the Precedent Agreement)
FGT reserves the right to reject any and all bids, including non-conforming bids. Bids that have
a delayed in-service requirement or other contingencies, or that are incomplete or include
changes to the form of precedent agreement provided by FGT will be deemed “non-conforming”
bids. FGT’s discretion to reject or accept a bid, including any non-conforming bid, shall be
exercised on a not unduly discriminatory basis.
After the close of this Open Season, FGT will evaluate all conforming and acceptable bids.
Awards of capacity, if any, will be based on the highest present value of the reservation charges
produced by an acceptable bid, or combination of acceptable bids, received in this Open Season,
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up to the total quantity that results from the facilities that FGT determines, in its sole discretion,
to construct.
The total capacity offered and to be awarded in this Open Season will be based on the facilities
required to provide requested capacity and final and timely execution of Precedent Agreements
with Shippers. FGT may, in its sole discretion, at any time during the Open Season extend the
closing date of the Open Season, or modify the terms of or terminate the Open Season.
Submission of Binding Bids
All submitted bid(s) pertaining to the Project shall be binding to Shippers. Shippers desiring to
submit bids should contact FGT to receive the form of Precedent Agreement and, prior to the
close of the Open Season, complete and submit all required documents in duplicate, by registered
or certified mail, courier or fax at any time during the Open Season to:
Florida Gas Transmission Company, LLC
1300 Main Street
Houston, TX 77002
Attn: Mike Bryant
Gary Dreadin
Telephone: (713) 989-2214
(713) 989-2084
Fax: (713) 989-1160
Open Season materials are provided for informational purposes to enable Shippers to obtain firm
transportation services to be made available under the Project. However, the information
contained herein establishes no contractual or other relationship between FGT and any party.
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