DATE:   October 28, 2025                                                                      TIME: 2:00 PM CDT

TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS

 

RE: Non-Binding Open Season for Firm Storage Service at Bear Creek (OPEN SEASON POSTING #1421)

 

I.  General

 

Tennessee Gas Pipeline Company, L.L.C. ("Tennessee" or “TGP”) is holding this non-binding open season (the "Open Season") to solicit interest in an approximately four-turn storage service to be provided at a virtual storage point near the TGP/Bear Creek Storage interconnect in North Louisiana (Storage PIN 460017) (the “Service Point”). The proposed storage service would be provided by Tennessee through its acquisition of storage capacity from Bear Creek Storage Company, L.L.C. (“Bear Creek”) that would be made available as a result of a potential project that would be undertaken by Bear Creek at the Bear Creek Storage Facility (the “Project”).   

 

The development of the Project is expected to result in Tennessee's acquisition of up to approximately 9,000,000 dekatherms ("Dth") of firm storage capacity, along with 200,000 Dth/day of injection capacity and 300,000 Dth/day of withdrawal capacity (the “Project Capacity”).

 

It is anticipated that the proposed storage service would be provided by Tennessee to its shippers under a new rate schedule pursuant to Tennessee's FERC NGA Gas Tariff (as it may be amended from time to time, the “Tariff”) or, alternatively, under Tennessee's existing Rate Schedule FS-F, as amended to meet the requirements of the new service (such new or amended rate schedule, the “Project Rate Schedule”). In either case, it is anticipated that service under the Project Rate Schedule would be substantially similar to the Class A Service Option of Tennessee's existing Rate Schedule FS-F, except that the Project Rate Schedule would contemplate, among other things: (a) that service could be provided at the Service Point; (b) that service would be provided at recourse, negotiated, or discounted reservation rates; (c) that Tennessee would have the option to require the inclusion of credit support provisions in service agreements entered into pursuant to the Project Rate Schedule to support the construction of facilities required to provide the subject capacity; and (d) that the ratchets below would be applicable to the service.

 

Tennessee's provision of Project Capacity to shippers pursuant to the Project Rate Schedule would be contingent upon Tennessee's successful acquisition of the Project Capacity from Bear Creek and subject to the terms and conditions of Tennessee's Tariff and Tennessee's and Bear Creek's receipt of all required regulatory approvals, including, without limitation, any authorizations that may need to be obtained from the Federal Energy Regulatory Commission (“FERC”) to allow, among others, for, Tennessee's acquisition of the Project Capacity and for modification of Tennessee's Tariff to allow for the provision of service under the Project Rate Schedule as contemplated herein.

 

Additional details regarding the Project Capacity and Tennessee's bidding preferences and requirements for the Project Capacity are as follows:

 

Term: At least seven years and up to 20 years (all bids should propose terms in one-year increments, expiring on March 31).

 

Project Capacity:

Maximum Storage Quantity (“MSQ”): 9,000,000 Dth

Maximum Daily Injection Quantity (“MDIQ”): 200,000 Dth/day

 

Maximum Daily Withdrawal Quantity (“MDWQ”): 300,000 Dth/day

 

Required Injection Ratchets

            Inventory                       % MDIQ

            0-33%                           100%

            33-66%                         80%

            66-100%                       70%

 

Required Withdrawal Ratchets

            Inventory                       % MDWQ

            100-28%                       100%

            28-7%                           72%

            7-0%                             61%

 

Commodity: TBD (Tennessee's current rate under Rate Schedule FS for Production Area (“FS-PA”) \is $0.0073 per injection and withdrawal)

 

Fuel: TBD (Tennessee's current rate under FS-PA is 1.67%)

 

Other Rates and Charges: Shippers would pay any other generally applicable rates and charges as set forth in Tennessee's Tariff.

 

Reservation Rate: To be proposed by each potential shipper in its bid. Tennessee will consider negotiated rate bids.

 

The commencement date for the Project Capacity (the “Commencement Date”) is anticipated to be April 1, 2029, but such date may be adjusted depending upon the in-service date for Bear Creek's Project facilities and the date Tennessee acquires the Project Capacity from Bear Creek and receives any required regulatory authorizations to begin providing Project Capacity to shippers.

 

The Open Season will commence as of the date of this notice and end at 2:00 p.m. CDT on November 18, 2025 (the "Open Season Period"). Unless otherwise indicated, capitalized terms that are used but not defined herein shall have the meanings ascribed to such terms in Tennessee's Tariff.

 

II.  Open Season/Submission of Bids

 

In order to participate in the Open Season, each potential shipper must submit a bid that specifies its proposed term, volume, and monthly reservation rate. All bids should refer to the Open Season number set forth above. Bids cannot exceed the stated maximum volumes. Parties interested in this capacity should submit non-binding bids by emailing them to TGPBidroom@kindermorgan.com. Any party may confirm Tennessee's receipt of its bid by contacting the Bidroom between 8 A.M. and 5 P.M. CT, Monday through Friday (unless such day is not a working day). 

  

III. Evaluation Method

 

Bids will be treated as confidential and will not be disclosed, except as authorized by the bidder or required by applicable law or regulation. Tennessee will evaluate bids on a not unduly discriminatory basis based on the best economic outcome for Tennessee. Upon receipt of an acceptable bid(s) that best satisfies the criteria and economic considerations for the Project Capacity, the successful bidder(s) and Tennessee shall commence negotiation of all applicable service terms. Tennessee will inform potential shippers with successful bids of such on or before the date that is 2 weeks following the close of the Open Season Period (provided, that such date may be extended by Tennessee). Bids will become binding once the terms thereof are incorporated into definitive agreements, including, as applicable, a precedent agreement that contemplates that the parties would enter into a gas storage agreement under the Project Rate Schedule.

 

TGP reserves the right, to be exercised on a not unduly discriminatory basis, to continue to market the Project Capacity and/or to modify the amount of Project Capacity it plans to acquire, and to enter into negotiations and execute definitive agreements with any interested shippers following the close of the Open Season.

 

IV.  Tennessee's Reservation of Rights

 

Tennessee reserves the following rights, in addition to all other rights that Tennessee has reserved herein or that Tennessee may have pursuant to its Tariff and applicable FERC regulations and policies:  

 

·         at any time during the Open Season, upon notice and in its sole discretion, to terminate the Open Season, to extend the Open Season Period, or to modify the Open Season;

 

·         to clarify and finalize bids containing non-specific and/or ambiguous bid information (including, without limitation, rate, term, and quantities) or discrepancies in bid information, provided that Tennessee shall have no obligation to do so;

 

·         to reject, on a not unduly discriminatory basis, any bid, including any bid that, in Tennessee's sole determination, does not satisfy Tennessee's economic or other criteria for the Project, is incomplete, is inconsistent with the terms of the Open Season, contains additions or modifications to the terms of the Open Season, is otherwise deficient in any respect, or requests service outside the scope of the Open Season;

 

·         to accept, on a not unduly discriminatory basis, any bid;

 

·         to elect not to pursue the acquisition of the Project Capacity or not to award any portion of the Project Capacity;

 

·         to proceed directly to definitive agreements with one or more potential shippers following the close of the Open Season Period; and

 

·         to elect to hold subsequent open seasons for the Project Capacity.

 

The Open Season is subject to all applicable laws, orders, rules, and regulations of authorities having jurisdiction. No request for service shall be binding on Tennessee unless and until a duly authorized officer or other representative of both the requesting party and Tennessee have executed binding definitive agreements.

   

V.  Creditworthiness

  

Upon receipt of the acceptable bid(s), Tennessee will contact each potential shipper with an acceptable bid to discuss the potential shipper's bid and proposed project details. Tennessee shall also contact each such potential shipper to discuss the potential shipper's creditworthiness and conduct a credit evaluation. Definitive agreements for the Project Capacity are expected to require that, in the event a potential shipper is deemed non-creditworthy by Tennessee, the potential shipper would be required to provide to Tennessee credit assurance applicable to the Project Capacity, in form and substance acceptable to Tennessee in its sole discretion. Such creditworthiness requirements would remain in effect during the term of a shipper's precedent agreement, as well as the term of such shipper's gas storage agreement.

  

VI.   Contact Information

  

If you have any questions regarding the Open Season, please contact the following: 

 

Chris Brown                 (713) 420-6201

Britton Burr                    (713) 420-6838

Kevin Cofer                   (713) 420-7010

Allison Kaczynski           (713) 420-2414

Scott Minear                  (713) 420-5177

Aaron O'Reilly               (713) 420-2418

Greg Pollard                  (713) 420-7149

 

E-mail                           TGPBidroom@kindermorgan.com

 

 

Tennessee Gas Pipeline Company, L.L.C.

Non-Binding Open Season for Firm Storage Service at Bear Creek

Service Request Form

 

Shipper Information:

 

Company 

(Legal Name of Entity):  ______________________________________________

 

Primary Contact :           ______________________________________________

 

Title:                             ______________________________________________

 

Address:                       ______________________________________________

 

Telephone:                    ______________________________________________

 

Email:                           ______________________________________________

 

Primary Term:                    _________ (At least seven years and up to 20 years (all bids should propose terms in one-year increments, expiring on March 31)).

 

MSQ:                            _________ Dth

 

Required MDIQ = MSQ / 45*

 

Required MDWQ = MSQ / 30*

 

*Tennessee may consider other proposed ratios if economically feasible, on a not unduly discriminatory basis.

 

Reservation Rate Election ($ per Dth of MSQ per month): 

 

□ Recourse Rate (subject to change based on final cost of the Project Capacity)

□ Negotiated Rate: _________ (fixed rate not subject to overrun calculation)

Submitted by:          

 

Name:               ______________________________________________  

Title:                 ______________________________________________  

Telephone:        ______________________________________________

 

 

Signature:         ______________________________________________

                          Signature of Duly Authorized Officer or Representative

 

Date:                ______________________________________________

 

 

Please return this form to:

                        

Email: tgpbidroom@kindermorgan.com