Non-Binding Open Season Package for Alberta Receipt Service (December 1, 2010 to January 21, 2011)
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1 Nvember 26, Victria Avenue Regina, SK S4P 4K5 T: (306) F: (306) T: Interested Parties RE: TransGas Limited Open Seasn Nn-Binding Open Seasn Package fr Alberta (December 1, 2010 t January 21, 2011) TransGas Limited (TransGas) hereby annunces an Open Seasn fr Alberta (Open Seasn) t slicit interest frm existing and new receipt service custmers fr ptential receipt service t flw gas frm Alberta. This nn-binding Open Seasn is being cnducted pursuant t the Terms and Cnditins cntained within the TransGas Cmprehensive Tariff (the Tariff) (a cpy f which is available n the TransGas website, and the terms and cnditins set ut herein. Open Seasn Backgrund and Actins As a result f reduced Saskatchewan gas prductin, TransGas anticipates the future grwing need fr demand in Saskatchewan will be met with gas frm utside the prvince, primarily frm Alberta. As a result, actin is being taken by TransGas t enhance its ability t efficiently perate the TransGas system and meet the lads in the prvince in a manner that wuld ptimize system capacity utilizatin. T that end, TransGas: Fcused n the develpment f a lng-term strategy fr Alberta wrking thrugh the TransGas Custmer Dialgue Grup, a grup f representative TransGas custmers wh prvide custmer input and dialgue n future service fferings, plicies, capital expenditures and rate design issues. Further details are available n the TransGas website under Newsrm, Custmer Dialgue Summary N. 78, 79, 80, 81 and 82 at Intends t direct Alberta gas t the nrthern part f its system 7 filling the receipt pints f Cld Lake and Unity t capacity, assisting in the minimizatin f additinal pipeline csts; and
2 TransGas Limited Open Seasn Page 2 Nvember 26, 2010 Has develped an Alberta methdlgy t ptimize system peratins and t manage flws at existing brder lcatins (Cld Lake, Unity and Empress), utlined as fllws: This will see the intrductin f an enhanced receipt service whse receipt pint will be the TransCanada-Alberta System (NGTL) Nva Inventry Transfer (NIT) pint. The enhanced is being referred t as NIT t TEP Receipt Service. TransGas will cntract with NGTL n behalf f custmers. This will prvide the mst cst effective manner fr TransGas t mve the gas int Saskatchewan. The additinal csts incurred by TransGas t facilitate the NIT t TEP Service will be passed back t thse custmers using this service. The cst in additin t the standard tlls (Additinal Cst) is estimated t be in the range f $0.10 t $0.15/Gigajule (GJ). T help realize the peratinal efficiencies f the service enhancement, TransGas will first be cntracting with its custmers fr new receipts frm Alberta with the NIT t TEP enhancement. Once TransGas is satisfied that it can fill the nrthern part f its system, TransGas will cntract specifically with its custmers fr service thrugh Empress, the nly ther cntractual pint f receipt frm the NGTL system. TransGas is cnducting this Open Seasn t: Determine if sufficient NIT t TEP Alberta will be cntracted t allw TransGas t begin cntracting Empress Service; Determine the facilities required t allw flws t be received at lcatins f interest t custmers; and Initiate cntracting transprtatin n the NGTL system t facilitate the requested service. Open Seasn Optins TransGas requests that new and existing custmers specify their preference f lcatin(s) as well as Receipt Capacity in GJ/day and Cntract Effective Date. Request Optins Frm NGTL System NIT t TEP Alberta ; Empress ; Empress, and if nt Empress, then NIT t TEP Alberta (Custmer preference is Empress but if Empress is nt available wuld accept NIT t TEP Alberta ) Other Alberta Request Optin Suffield (Suffield Gas Pipeline Inc.) (i.e. a TransGas receipt pint n an existing TransCanada Mainline intercnnect at Suffield) Interested existing and new receipt service custmers are asked t submit their expressins f interest as utlined herein. Only thse wh submit an Open Seasn Expressin f Interest will receive a Binding Service Offering.
3 TransGas Limited Open Seasn Page 3 Nvember 26, 2010 Open Seasn Timelines 1. December 1, 2010 t January 21, Open Seasn ccurs. 2. December 8, :30 CST (13:30 MST) 7 TransGas t share infrmatin relating t the Open Seasn thrugh a webcast. Please visit the TransGas website, fr mre infrmatin n the webcast. 3. Early January, TransGas teams will be available t share infrmatin thrugh ne-n-ne meetings t be held in Calgary and Regina. 4. January 21, :00 CST (16:00 MST) & Deadline fr Submissin f Expressins f Interest. 5. January 22, 2011 t March 31, Assessment f the Open Seasn respnses and the executin f the binding service fferings ccurs. 6. April Schedules f Service fr 2011 service issued. 7. May 01, First ptential cntract effective date fr the NIT t TEP Alberta Receipt Service ccurs. Open Seasn Prcesses (1) Expressin f Interest Each existing and new receipt service custmer participating in this Open Seasn that wishes t have service t flw gas frm Alberta must return the attached expressin f interest frm (Schedule A) specifying the fllwing: Receipt service lcatin based n the ptins TransGas has prvided; Receipt capacity; and Cntract effective date. The cmpleted Schedule A(s) must be returned n later than 17:00 CST (16:00 MST) n January 21, N changes will be allwed after January 21, Schedule A can be faxed, curiered r ed t TransGas at the fllwing address: Attentin: Wendy Klinger, Directr, Custmer Services TransGas Limited Victria Avenue Regina, Saskatchewan S4P 4K5 Fax: (306) wklinger@transgas.cm TransGas will acknwledge the receipt f yur submitted Schedule A.
4 TransGas Limited Open Seasn Page 4 Nvember 26, 2010 (2) Binding Service Offering Upn receipt f the Open Seasn expressins f interest, cmmencing January 22, 2011, TransGas will finalize the terms under which it will prvide a binding service ffering, taking int cnsideratin the specific requirements fr receipt service lcatin, receipt capacity and cntract effective dates, as well as: The amunt f NIT t TEP Alberta and Empress requested in the Open Seasn; and The amunt f ther requested in the Open Seasn. This will assist in cncluding: A determinatin f the initial Additinal Cst recvery level fr the NIT t TEP Alberta, which will be added t the receipt service tlls; and Final tariff changes required t reflect the NIT t TEP. TransGas will then issue the binding ffer f service (herein referred t as Letter f Cmmitment). This prcess will allw the custmers, wh will then knw the Additinal Cst recvery level and the final tariff changes, t elect t prceed r nt prceed with the service being ffered in respnse t the Open Seasn. Depending n the custmer respnses received t the binding ffers f service initially ffered, further ffers f service may be prvided. The custmer s executin f the Letter f Cmmitment: Will bind the custmers t execute an amendment f an existing Schedule f Service r an applicable Schedule f Service as well as a TransGas Service Agreement if ne des nt already exist. It will als bind the custmer t prvide a Security Depsit if s requested by TransGas. The Letter f Cmmitment will allw TransGas t cmplete Schedules f Service in time fr May 01, the first ptential cntract effective date fr the NIT t TEP Service. If yu have any questins, please cntact me at (306) r yur Key Accunt Manager. Yurs truly, TRANSGAS LIMITED Wendy Klinger Directr, TransGas Custmer Services Attachment
5 TransGas Limited Open Seasn Page 5 Nvember 26, 2010 SCHEDULE A Expressin f Interest Request Optins Frm NGTL System NIT t TEP Alberta Empress Empress, and if nt Empress, then NIT t TEP Alberta Other Alberta Request Optin Suffield (Suffield Gas Pipeline Inc.) Open Seasn Requested Service Matrix Receipt Pint May 01, 2011 Cntract Effective Date Nvember 01, 2011 May 01, 2012 Nvember 01, 2012 Requested and Receipt Capacity (Please Specify GJ/day) NIT t TEP Alberta Empress Receipt Service Empress, and if nt Empress, then NIT t TEP Alberta Suffield (Suffield Gas Pipeline Inc.) Other Date (Please Specify) (Existing r new receipt service custmer s name) understands and agrees that n changes can be made t the Open Seasn Requested Service, as utlined abve, after January 21, Agreed and accepted this day f Per: Per:
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