NOTICE OF NON-BINDING OPEN SEASON
GULF COAST MARKET EXPANSION PROJECT
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Announcement of Open Season
Natural Gas Pipeline Company of America LLC (“NGPL”) is holding a non-binding Open Season to gauge interest
in an expansion of its Gulf Coast mainline system. This expansion project will provide for incremental firm
transportation service from the existing interconnect with Rockies Express Pipeline LLC (“REX”) to existing and
increasing markets along the Texas and Louisiana Gulf Coast. As currently designed, the project will source gas
from the REX Moultrie receipt point (Pin # 44413) and transport gas south to the Texok, South Texas and
Louisiana delivery zones.
Increasing gas production occurring in the Utica and Marcellus Shale combined with increasing markets in
Louisiana and South Texas make this project the best choice to satisfy the needs of both producers and end use
customers. NGPL’s system can provide access to 7 proposed LNG plants with 14.7 Bcf/d of potential gas
demand.
This project as currently designed will increase NGPL’s capability by up to 750,000 Dth/d of incremental volume
from the REX interconnection to points south on its pipeline system, and would be in conjunction with required
facility modifications on REX to assure adequate pressures and meter capacity.
NGPL invites parties interested in obtaining some or all of this firm transportation capacity on NGPL’s pipeline to
submit a non-binding bid during the Open Season. The bid shall in no way constitute an offer that will be accepted
or an agreement between the parties.
About NGPL
NGPL is one of the largest interstate pipeline systems in the country, with approximately 9,200 miles of pipeline,
more than 1 million compression horsepower and 280 Bcf of working gas storage. Shippers on the Gulf Coast
Market Expansion Project will have secondary access to Chicago and other Midwest markets and the highly liquid
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NOTICE OF NON-BINDING OPEN SEASON
GULF COAST MARKET EXPANSION PROJECT
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Texok pool, providing excellent optionality. NGPL also has available storage services and capacity to increase
Shipper’s flexibility.
Length of Open Season
The Open Season will commence on Tuesday, February 18, 2014, and conclude at 4:00 P.M. CST on Tuesday,
March 4, 2014. Interested parties should send their non-binding declarations of interest via email to: Jim Lelio at
jim_lelio@kindermorgan.com.
Non-binding declarations of interest may also be sent by mail or FAX to NGPL’s offices. The mailing address is
1001, Louisiana Street, Suite 1000, Houston, Texas 77002 to the attention of: Jim Lelio. The facsimile number is
(713) 369-9365 to the attention of Jim Lelio. Parties may submit questions concerning this Open Season to:
Jim Lelio: Phone: (713) 369-8733; Email: jim_lelio@kindermorgan.com
David Matney: Phone: (713) 369-9218; Email: david_matney@kindermorgan.com
Donette Bisett: Phone: (713) 369-9316; Email: donette_bisett@kindermorgan.com
David Weeks: Phone: (630) 725-3030; Email: david_weeks@kindermorgan.com
NGPL may, in its sole discretion, extend the duration of the Open Season at any time during the Open Season
and, upon five business days’ notice given by means of a posting to NGPL’s website, may modify the terms of the
Open Season. In addition, NGPL will post to its website any clarifications provided to other parties as a result of
inquiries.
Subsequent Schedule
Upon the conclusion of the Open Season, NGPL will evaluate the bids received and respond to each Shipper
submitting a bid during the Open Season. Further discussions will occur with those Shippers submitting bids that
best satisfy the criteria for capital expenditure associated with the required facilities. Negotiations with those
Shippers will proceed with the ultimate goal of entering into a mutually acceptable binding precedent agreement.
NGPL may proceed to finalize the project based upon the bids received and subsequent contract negotiations
without holding any additional open season. NGPL also reserves the right, to be exercised on a not unduly
discriminatory basis, to continue to market the project after the close of the Open Season with interested shippers
whether or not the shipper has submitted a bid in this nonbinding Open Season.
Commencement of Service
The target in-service date for the project is July 1, 2016. If, however, a Shipper has interest in an earlier start date,
please include this in the Bid, and NGPL will work with the Shipper on possible alternatives. The target in-service
date is an estimate and may change dependent upon the necessary facilities and the regulatory approvals
required.
Description of Expansion Project/Indicative Rates/Term
The NGPL expansion project is anticipated to include the following facility modifications: reversal of compressor
stations and the potential addition of new compressor station(s), possible horsepower modifications at existing
stations, increased capacity at the REX Moultrie interconnect and a small amount of pipe replacement along the
route. With the addition of these facilities, NGPL will increase its transport capability by up to 750,000 Dth/d
south from the REX Moultrie interconnect to markets in the Texok, South Texas and Louisiana delivery zones.
NGPL will only proceed with this project on a Negotiated Rate basis and anticipates that the following indicative
rates will be required to support the project:
a) Texok or Louisiana Delivery Zone: $0.40 (per Dth of MDQ per day)
b) South Texas Delivery Zone: $0.45 (per Dth of MDQ per day)
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NOTICE OF NON-BINDING OPEN SEASON
GULF COAST MARKET EXPANSION PROJECT
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The indicative rates contemplate the parties entering into negotiated rate arrangements with the reservation rate
fixed over the term of the contract. The actual rate may differ from the indicative rates identified above and could
be subject to regulatory approval. In addition to the reservation demand charge, shippers shall also pay all other
applicable charges, including a commodity rate based on usage, Annual Charge Adjustment (ACA), fuel and gas
lost and unaccounted for charges and any additional charges or surcharges that are in effect from time to time
pursuant to NGPL’s FERC Gas Tariff.
Contract terms of 15 years are anticipated to be necessary to support this project.
Credit Requirements
Prior to entering into precedent agreements, Shippers will be required to demonstrate creditworthiness or provide
a credit alternative acceptable to NGPL in accordance with NGPL’s Tariff.
Submission of Bid
To respond to this Open Season, shippers should submit Exhibit A, the non-binding bid form included with this
notice. Because significant expansion facilities are required for the proposed project, rates and terms
approximating those described above will be necessary to move the project forward. The bid form should also
contain each primary receipt and delivery point and the Maximum Daily Quantity at each point. The total
Maximum Daily Quantity at each receipt and delivery point must equal the contract MDQ.
Upon receipt of the bid, NGPL, at its sole discretion, shall determine whether to proceed and, if so, in what
manner. NGPL has no obligation to negotiate with or enter into any transaction with any party that submits a bid
to NGPL. NGPL may consider a bid in its sole discretion if the party submitting the bid otherwise agrees to adhere
to the processes described herein. Parties submitting a bid must include an indication if they would be willing to
accept a lesser quantity in the event bids exceed 750,000 Dth under a pro-rata allocation.
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NOTICE OF NON-BINDING OPEN SEASON
GULF COAST MARKET EXPANSION PROJECT
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EXHIBIT A – BID FORM
NGPL OPEN SEASON
A. Shipper Name: _________________________________________
B. Contract Start Date: _____________________________________
C. Contract Term: _________________________________________
D. Maximum Daily Quantity (MDQ): ___________________________ (Dth/d)
E. Willing to accept a Lesser Quantity (Yes/No): ___________
F.
If yes to E. above, please indicate the minimum acceptable amount: ________________ (Dth/d)
G. Reservation Rate (per Dth of MDQ per day): _________________ (Texok or Louisiana Delivery Zone)
_________________ (South Texas Delivery Zone)
H. Receipt/Delivery Point Information
Receipt Point Name
Receipt Point Number
Maximum Daily Quantity
(Dth/d)
Delivery Point Name
Delivery Point Number
Maximum Daily Quantity
(Dth/d)
By:
________________________________
Print Name: ________________________________
Title
________________________________
Phone:
________________________________
Email:
________________________________
Address:
________________________________
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