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NGTL FT-R Turnback

NOVA GAS TRANSMISSION LTD.

Turn-back Process

December 5 -January 16, 2015

NOVA Gas Transmission Ltd. (“NGTL”) has received requests for incremental Firm Transportation Receipt service (“FT-R”) in the Peace River and Mainline Project Areas (the “Project Area”). To provide this incremental FT-R NGTL has determined that expansion facilities (“Expansion Facilities”) are required. In an effort to optimize the Expansion Facilities NGTL is therefore seeking requests from Customers with existing FT-R contracts in segments 4, 5, 7, 8 and 9 of the Project Area (“FT-R Contracts”) who are interested in terminating all or a portion of their Receipt Contract Demand under their FT-R Contracts prior to the Service Termination Date of such FT-R Contracts (“Turn-back”).  

Turn-back Requests

NGTL is requesting Customers with FT-R Contracts who would like Turn-back to submit the request form located at the following link: Turnback Form (the “Turn-back Request”).

NGTL will consider Turn-back Requests from all Customers who have FT-R Contracts that meet the following criteria (the “Criteria”):

The FT-R Contract must have Receipt Point (s) located in segments 4, 5, 7, 8, and 9 of the NGTL Pipeline System available here.

1. The requested Turn-back date (“Requested Turn-back Date”) must be effective on or after April 1, 2015 (“Earliest Turn-back Date”), but prior to October 31, 2017 (“Latest Turn back Date”);
2. The FT-R Contract must be in its Secondary Term on or before the Requested Turn-back Date;
3. The minimum Receipt Contract Demand requested for Turn-back is 15 e3m3/d at each Receipt Point;
4. The FT-R Contract must have renewal rights (i.e. not within the final 12 months of the FT-R Contract);
5. The Turn-back Request once submitted to NGTL is irrevocable and cannot be withdrawn or amended by Customer without NGTL’s written consent;
6. The FT-R Contract cannot be transferred to another Receipt Point at any time after the date Customer has submitted the Turn-back Request to NGTL until notified by NGTL that their Turn-back Request has been accepted or rejected. Provided however, Customers that have been granted their Turn-back Requests may, subject to normal FT-R transfer procedures, transfer the FT-R Contracts, provided the FT-R Contracts are at the Receipt Point identified in the Turn-back Request on or before the Requested Turn-back Date.

Process Highlights

  • Turn-back Requests must be received by NGTL no later than 8:00 a.m. (Calgary time) on Friday, January 16, 2015.
  • Turn-back Requests with missing information or errors may be declined by NGTL. NGTL is under no obligation to seek corrections or additional information from the Customer.

Turn-back Request Evaluations

NGTL will evaluate the Turn-back Requests to determine, in its sole discretion, which Turn-back Requests provide NGTL with a reduction or elimination of Expansion Facilities and/or maximizes the economic value of the NGTL Pipeline System.
NGTL may reject any Turn-back Request NGTL determines, in its sole discretion, which:

(a) may not reduce or eliminate the need for the Expansion Facilities;
(b) may result in a negative economic impact to the NGTL Pipeline System; or
(c) the Turn-back Request does not satisfy any of the Criteria set out above.

In the event that NGTL determines in its sole discretion that:

(a) two (2) or more Turn-back Requests are of equal value but the total Receipt Contract Demand of such Turn-back Requests cannot be accepted by NGTL the Receipt Contract Demand will be prorated based on the total Receipt Contract Demand of such Turn-back Requests; and
(b) an alternative Requested Turn-back Date may result in a more effective optimization of the NGTL Pipeline System, NGTL may request Customer to amend their Requested Turn-back Date.

NGTL expects to notify Customers by February 27, 2015 whether or not their Turn-back Requests will be accepted or rejected.

Any upper case term not defined herein shall have the meaning given to it in NGTL’s Gas Transportation Tariff.

Questions

If you have any questions, please contact your Customer Account Manager.
Completed bids must be submitted by 8:00 a.m. (Calgary time) on January 16, 2015 to NGTL System.