REVERSE OPEN SEASON
Texas Eastern Appalachia to Market Expansion Program 2014 (TEAM 2014)
March 12 – 30, 2012
In connection with the binding open season held by Texas Eastern Transmission, LP
(“Texas Eastern”) for the TEAM 2014 Project from January 17, 2012 to February 17,
2012, Texas Eastern will consider, from March 12, 2012 through March 30, 2012, 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 2014 Project. The TEAM 2014 Project contemplates the expansion of Texas
Eastern’s facilities to provide additional firm transportation service on the Texas Eastern
system for a minimum term of ten (10) years, with extension rights, commencing on
November 1, 2014, from receipt points on the Texas Eastern system in M2 in Marshall
County, West Virginia and Greene and Fayette Counties in Pennsylvania to proposed
delivery points on the Texas Eastern system in an easterly direction in M3 near
Lambertville, New Jersey and Staten Island, New York and in a westward and southerly
direction to delivery points in M2 and M1 and in ELA and WLA. 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, 2014.
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 season held in
January/February, 2012, while maintaining or improving the economics of the
TEAM 2014 Project. Shipper’s capacity must result in available capacity on
Texas Eastern’s facilities from receipt points on the Texas Eastern system to the
proposed delivery points on the Texas Eastern system defined above, 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 2014 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 2014 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 2014 Project, should
indicate such interest by faxing or e-mailing a notice to Bobby Huffman (713) 627-5259
(phone), (713) 627-4727 (fax), or rlhuffman@spectraenergy.com (email) by Friday,
March 30, 2012, 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 2014 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 2014 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 2014 Project Reverse Open Season may be
addressed to Bobby Huffman at the numbers written above or directly to your Texas
Eastern Account Manager.