Texas Eastern Transmission, LP
Reverse Open Season - NJ-NY Expansion Project
January 11, 2010 through January 29, 2010
In connection with the binding open season held by Texas Eastern Transmission, LP
(“Texas Eastern”) for the NJ-NY Expansion Project from January 4, 2010 to January 29,
2010, Texas Eastern will consider offers received between January 11, 2010 and
January 29, 2010, from 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 the NJ-NY Expansion
Project. The NJ-NY Expansion Project contemplates the expansion of Texas Eastern
and Algonquin Gas Transmission, LLC (“Algonquin”) facilities to provide an additional
800,000 dekatherms per day (“Dth/d”) of firm transportation service for a minimum
contract term of fifteen (15) years commencing on November 1, 2013, from receipt
points either on the Algonquin system in the vicinity of Ramapo, NY or at Lambertville,
NJ through a pipeline extension from Texas Eastern’s existing facilities in Staten Island,
NY to a new delivery point in Manhattan, NY. Texas Eastern will be leasing capacity on
Algonquin for the project. Algonquin is posting a reverse open season on its LINK®
system for shippers who desire to release all or a portion of their current Algonquin firm
transportation entitlements to reduce the scope of Algonquin’s facility requirements for
the NJ-NY Expansion Project. Texas Eastern shippers interested in releasing capacity
in connection with this project must have capacity that 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, 2013.
2.
Shipper’s requested capacity release must enable Texas Eastern to reduce the
final scope and design of its proposed incremental facilities, necessary to satisfy
Texas Eastern’s obligations pursuant to the open season held from January 4 to
January 29, 2010, while maintaining or improving the economics of the NJ-NY
Expansion Project. Shipper’s requested capacity release must result in available
capacity on Texas Eastern’s facilities from receipt point areas on the Texas
Eastern system near Hanover and Lambertville, NJ to delivery points at Staten
Island, NY, 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 invoices for such release in an
amount equal to the portion of the reservation rate received from the NJ-NY
Expansion shippers that is attributable to 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 released 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 released 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, completing construction of, and
placing into service, the NJ-NY Expansion Project facilities, subject to any
modifications in light of this reverse open season. No release will become
effective and no crediting will be implemented 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 NJ-NY Expansion Project, should
indicate such interest by faxing or e-mailing a notice to Rob Hansen at (617) 560-1549
(phone), (617) 560-1581 (fax), or rnhansen@spectraenergy.com (email) by no later
than Friday, January 29, 2010, 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 shipper desires to
release and must identify the applicable Texas Eastern contract(s) [and applicable
points under such contracts].
Texas Eastern will notify all shippers responding to this NJ-NY Expansion 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
NJ-NY Expansion 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 NJ-NY Expansion Project Reverse Open Season may be
addressed to Rob Hansen at the phone number provided above or directly to your
Texas Eastern Account Manager.