Wind Ridge Pipeline Open Season

WBI Energy Wind Ridge Pipeline, LLC
Wind Ridge Pipeline Project
Sale of Long Term Firm Capacity
Commencing October 10, 2014
Binding Open Season
WBI Energy Wind Ridge Pipeline, LLC announces a Binding Open Season for the
sale of long term, firm natural gas transportation capacity on Wind Ridge Pipeline.
Project Overview
WBI Energy Wind Ridge Pipeline, LLC (WBI Energy Wind Ridge) is soliciting
additional commitments for firm natural gas transportation capacity on the Wind Ridge
Pipeline. The Wind Ridge Pipeline will create new, firm natural gas transportation
capacity from a new interconnect with Northern Border Pipeline Company in McIntosh
County, North Dakota to a new fertilizer production facility being constructed near
Spiritwood, North Dakota. Wind Ridge Pipeline will also connect with WBI Energy
Transmission, Inc.’s natural gas transmission system near Spiritwood, North Dakota. A
map showing the proposed route for Wind Ridge Pipeline is attached.
The initial design of Wind Ridge Pipeline includes approximately 96 miles of new, high
pressure steel pipeline and various measurement and interconnection facilities. The
pipeline project, as designed to meet the needs of the new fertilizer production facility,
consists of a 16-inch diameter pipeline. Based on this initial design, Wind Ridge Pipeline
will have a capacity of approximately 90,000 equivalent dekatherms per day (dkt/day).
The Wind Ridge Pipeline project can be redesigned to create approximately 50,000
dkt/day of additional firm transportation capacity by increasing the diameter of the
pipeline. WBI Energy Wind Ridge is soliciting interest in this additional 50,000 dkt/day
of firm capacity through this Open Season.
Although WBI Energy Wind Ridge does not currently have a FERC Gas Tariff, WBI
Energy Wind Ridge anticipates such FERC Gas Tariff will be substantially similar to
WBI Energy Transmission, Inc.’s FERC Gas Tariff, Third Revised Volume No. 1.
The targeted in-service date of Wind Ridge Pipeline is January 2017.
Length of Open Season
The Open Season will commence on October 10, 2014 and conclude at 4:00 PM Central
Time on October 31, 2014. The Open Season is available to any party. All related
Precedent Agreements must be executed no later than November 21, 2014, unless WBI
Energy Wind Ridge agrees, in its sole discretion, to extend such deadline.
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Capacity
WBI Energy Wind Ridge is offering for sale approximately 50,000 dkt/day of additional
new firm transportation capacity for delivery of natural gas to new delivery locations
along the Wind Ridge Pipeline route, as well as a new interconnect with WBI Energy
Transmission, Inc.’s natural gas transmission system near Spiritwood, North Dakota.
Constraints may limit WBI Energy Wind Ridge’s ability to accept certain delivery
locations requested.
Pursuant to a separate Open Season, WBI Energy Transmission, Inc. is proposing
construction of certain facilities to expand pipeline capacity for receipt of natural gas
from a proposed interconnection with Wind Ridge Pipeline to delivery locations in its
Sheyenne Sub-system in eastern North Dakota.
Bids
Shippers have the option of requesting to pay a project recourse rate or a mutually
agreeable negotiated rate for the firm transportation capacity associated with this Open
Season. The project recourse rate is estimated to be $0.59 per dekatherm on a 100% load
factor basis based on the current project cost and volume estimates. Such project recourse
rate will be revised based upon final costs and volumes.
Both the project recourse rate and the negotiated rate options will be subject to all
applicable surcharges and fuel, lost and unaccounted for gas and electric power charges
as such may be in effect from time to time.
During this Open Season, both the contract term and rates are negotiable. It is projected
that a minimum term of ten (10) years from commencement of service may be necessary
to support the capital expenditures required to increase the capacity on the Wind Ridge
Pipeline.
Awarding Capacity
In order to respond to this Open Season, shippers must complete an Open Season Bid
Sheet that includes the delivery location(s), quantity requested, length of term and desired
rate.
Capacity on Wind Ridge Pipeline will be awarded to potential shippers based upon the
highest net present value per unit of demand to the lowest net present value per unit of
demand. WBI Energy Wind Ridge reserves the right to aggregate transportation requests
from potential shippers to generate the highest net present value per unit of demand to
WBI Energy Wind Ridge.
A shipper requesting a negotiated rate which exceeds the project recourse rate shall be
treated as if the negotiated rate is equal to the project recourse rate for such service. Any
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shipper requesting the project recourse rate has the same right to capacity as a shipper
willing to pay a negotiated rate higher than such project recourse rate.
Where a negotiated rate is less than the project recourse rate, the negotiated rate shall be
evaluated based on such lower rate and shall be afforded a correspondingly lower priority
than higher bids, including bids submitted at the project recourse rate. Within the subset
of negotiated rate bids, where one negotiated rate is less than another negotiated rate, the
lower negotiated rate shall be evaluated based on such lower rate and shall be afforded a
correspondingly lower priority than the higher negotiated rate. In no event shall WBI
Energy Wind Ridge be required to accept a bid which provides a rate below the project
recourse rate.
In the event a request specifies a term greater than twenty (20) years in length, the term
portion of the net present value calculation will be limited to twenty (20) years. In the
case of insufficient capacity to satisfy identical successful requests, WBI Energy Wind
Ridge shall allocate available capacity pro rata based upon the total capacity requested by
each successful potential shipper to the total capacity requested by all successful potential
shippers.
Once capacity is awarded, WBI Energy Wind Ridge will require successful shippers to
execute a Precedent Agreement. Successful shippers will also be required to provide
evidence of creditworthiness satisfactory to WBI Energy Wind Ridge.
When executed by both parties, a Precedent Agreement will set forth the terms and
conditions under which the shipper and WBI Energy Wind Ridge will execute a firm
transportation service agreement. All transported volumes for the entire term of the firm
transportation service agreements will be subject to all applicable surcharges and any
applicable fuel, lost and unaccounted for gas and electric power charges as such may be
in effect from time to time.
The Precedent Agreements, when fully executed by both the shipper and WBI Energy
Wind Ridge, will constitute a binding agreement. However, WBI Energy Wind Ridge
will in no way be obligated to execute the Precedent Agreements. If WBI Energy Wind
Ridge notifies a shipper in writing of its election not to execute a Precedent Agreement,
then the shipper will be relieved of its obligation.
In the event the capacity is not fully subscribed through this Open Season process, the
capacity will be sold on a first-come, first-served basis.
All transportation services proposed as part of this Open Season are expressly subject to
WBI Energy Wind Ridge’s receipt of all regulatory approvals required to effectuate the
services hereunder in form and substance satisfactory to WBI Energy Wind Ridge. WBI
Energy Wind Ridge reserves the right to reject any bid, revise the scope of the proposed
project in any way, and, consistent with applicable regulations, to modify, extend or
terminate this Open Season process at any time.
Interested parties must complete the attached Open Season Bid Sheet and e-mail it to
[email protected], fax it to WBI Energy Wind Ridge at (701) 530-1698 or
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mail it (to ensure receipt by WBI Energy Wind Ridge prior to the end of the Open
Season) to WBI Energy Wind Ridge Pipeline, LLC, Market Services Department, P.O.
Box 5601, Bismarck, ND 58506-5601.
We urge you to respond promptly to this Open Season.
If you have any questions please contact:
Rob Johnson
Telephone: (701) 530-1622
E-mail: [email protected]
or
Mark Anderson
Telephone: (701) 530-1623
E-mail: [email protected]
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Wind Ridge Pipeline Project
Open Season Bid Sheet
 Shipper Name:
 Contact Person:
 Mailing Address:
 Phone: _________________ Fax: ________________ E-Mail:
Primary Receipt and Delivery Location(s):
Receipt Location
Delivery Location
MDDQ
(equivalent dkt/day)
Northern Border Pipeline
____________
Northern Border Pipeline
____________
Total Maximum Daily Delivery Quantity (MDDQ) Requested:
Length of Term:
(equivalent dkt/day)
(years following the in-service date of the facilities)
Rates (choose one):
Project Recourse Rate
Negotiated Rate (as follows)
MDDQ Reservation Charge (rate per equivalent dkt per month):
Commodity Charge (rate per dkt):
Note: Both the project recourse rate and the negotiated rate options will be subject to all
applicable surcharges and fuel, lost and unaccounted for gas and electric power charges as such
may be in effect from time to time.
Signed By:
Name:
Title:
Date:
By submitting this Wind Ridge Pipeline Project Open Season Bid Sheet, shipper hereby agrees to
enter into good faith negotiations with the objective of entering into a binding Precedent
Agreement with WBI Energy Wind Ridge in accordance with the terms set forth herein.
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Wind Ridge Pipeline Project Overview Map
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