REVERSE OPEN SEASON
Texas Eastern Appalachia to Market Expansion Program 2012 (TEAM 2012)
December 10 - 31, 2009
In connection with the non-binding and binding open seasons held by Texas Eastern
Transmission, LP (“Texas Eastern”) for the TEAM 2012 Project from August 1 to August
29, 2008 and from November 17, 2009 to December 1, 2009, respectively, Texas
Eastern will consider, from December 10, 2009 through December 31, 2009, offers by
its current firm shippers who desire to release, subject to the criteria set forth below, all
or a portion of their current firm transportation entitlements to reduce the scope of Texas
Eastern’s facility requirements for a proposed expansion designated as the TEAM 2012
Project. The TEAM 2012 Project contemplates the expansion of Texas Eastern’s
facilities to provide up to an additional 190,000 dekatherms per day (“Dth/d”) of firm
transportation service for a minimum term of fifteen (15) years commencing on
November 1, 2012, from receipt points on the Texas Eastern system between
Clarington, Ohio and the Holbrook Station in southwestern, PA to proposed delivery
points on Texas Eastern’s CRP line near the Marietta, PA compressor station and in
Chester County, PA. Shippers interested in releasing capacity in connection with this
project must have capacity which meets all of the following criteria:
1.
Shippers must have firm rights to the capacity they desire to release, on a nonrecallable basis, as of November 1, 2012.
2.
Shippers’ capacity must enable Texas Eastern to reduce the scope of its
proposed incremental facilities, as finally scoped and designed, necessary to
satisfy Texas Eastern’s obligations pursuant to the open seasons held in August
2008 and November/December 2009, while maintaining or improving the
economics of the TEAM 2012 Project. Shipper’s capacity must result in available
capacity on Texas Eastern’s facilities from receipt points on the Texas Eastern
system between Clarington, Ohio and the Holbrook Station to proposed delivery
points on the CRP line near the Marietta, PA compressor station and in Chester
County, PA, and not result in a release of any capacity unnecessary for the
project.
3.
Eligible shippers whose capacity release requests are accepted pursuant to this
notice will receive a credit on their monthly invoice for such release in an amount
equal to the reservation charges received from the TEAM 2012 shipper(s)
utilizing the released capacity during the applicable month, provided the credit
will not exceed the amount equal to the eligible shipper’s reservation charges
associated with such capacity for the month. For the term of any such release as
described above, eligible shippers will continue to be obligated to Texas Eastern,
and must pay Texas Eastern, for all reservation charges associated with their
capacity, as effective from time to time, subject to the credit described in the
preceding sentence.
4.
Any and all releases of capacity meeting the criteria set forth herein will be
subject to and conditioned on Texas Eastern’s receipt of any and all necessary
governmental authorizations with terms and conditions acceptable to Texas
Eastern and Texas Eastern proceeding with, and completing construction of, the
TEAM 2012 Project facilities, subject to any modifications in light of this reverse
open season. No release will become effective until the date on which service
commences under the firm agreement(s) for which capacity has been released
under this reverse open season.
Any shippers meeting the criteria set forth above and interested in releasing, on a nonrecallable basis, their capacity in connection with the TEAM 2012 Project, should
indicate such interest by faxing or e-mailing a notice to Sean Foley at (617) 560- 1359
(phone), (617) 560-1581 (fax), or spfoley@spectraenergy.com (email) by Thursday ,
December 31, 2009, at 5 p.m. EST. Any such notice shall be binding on the shipper
submitting the notice until Texas Eastern has completed its analysis of whether the
shipper’s capacity can be utilized for the limited purposes described herein, and such
notice must include the quantity of firm entitlements which the requestor desires to
release and must identify the applicable Texas Eastern contract(s).
Texas Eastern will notify all shippers responding to this TEAM 2012 Project Reverse
Open Season as soon as reasonably practicable as to whether their capacity can be
utilized for the limited purpose described herein. To the extent there is more capacity
meeting the above stated requirements than is required, all such offers to release
capacity will be prorated. For every offer to release capacity accepted by Texas
Eastern, the Maximum Daily Quantity (“MDQ”) set out in that shipper’s firm service
agreement shall be reduced in accordance with the offer to release capacity and the
shipper shall lose all rights, including renewal options, on the MDQ that has been
released, but shall continue to receive service on all other capacity under the shipper’s
firm service agreement. Every offer to release capacity is contractually binding on the
shippers proposing to release capacity in connection with this reverse open season. In
order to effect an offer to release capacity, the shipper must, within thirty (30) days of
the date that Texas Eastern notifies the shipper that its capacity can be utilized for the
TEAM 2012 Project, execute an agreement that will govern the shipper’s release of
capacity consistent with the provisions set forth in this reverse open season. Any
questions concerning this TEAM 2012 Project Reverse Open Season may be
addressed to Sean Foley at the numbers written above or directly to your Texas Eastern
Account Manager.