REVISED March 24, 2015 ANR PIPELINE COMPANY GULF COAST AND MIDWEST MARKET ACCESS OPEN SEASON Due to growing market demand and the continuing development of Utica and Marcellus Shales, ANR Pipeline Company (“ANR”) is contemplating a number of system enhancements that will increase the capacity on portions of its system. The Project is intended to provide Utica and Marcellus shale producers and other interested parties access to the Gulf Coast and Midwest markets from ANR’s existing ML-3 receipt points including: REX at Shelbyville, Dominion at Lebanon, Texas Eastern at Glen Karn, and Rover at ANR’s pending interconnection at Westrick, Ohio, as well as other receipt points on the ANR system. The purpose of this Open Season is to solicit interest in the new capacity being offered as described below. ANR intends to negotiate with those parties responding to this Open Season with an expression of interest to find a mutually acceptable combination of facilities, costs, quantities and rates to implement the Project. OPEN SEASON PERIOD This open season shall commence at 11:00 a.m. CT Monday, March 16, 2015, and close at 5:00 p.m. CT on Tuesday, April 7, 2015. PROJECT SCOPE GULF COAST MARKETS - Southeast Mainline (“SEML”) Modifications ANR can offer interested parties up to 190,000 Dth/day of transportation capacity along its SEML from ML-3 receipt points to delivery points in ANR’s Southeast Area (See Region 1 delivery options under ANR Delivery Locations below). SEML modifications will include the installation of gas aftercooling at several compressor stations, the replacement of certain “end-of-life” compressors, and/or the installation of new compression at certain stations. MIDWEST MARKETS - Tie-Line Expansion ANR can offer approximately 558,000 Dth/day across its constrained Tie-Line segment from Defiance, Ohio to Bridgman, Michigan and to downstream markets. From Defiance, Ohio (Rover at Westrick) and/or Shelbyville, Indiana (REX at Shelbyville), ANR will be able to transport up to: • 158,000 Dth/day to the Joliet Hub (See Region 2 delivery options under ANR Delivery Locations below), and, • 400,000 Dth/day north to Farwell, Michigan for access to ANR storage, Michigan, Indiana markets, as well as markets downstream of Farwell via Great Lakes Gas Transmission and/or TransCanada PipeLines, such as: Minnesota markets and Dawn, Ontario (See Region 3 delivery options under ANR Delivery Locations below). ANR would achieve the proposed expansion of its constrained Tie-Line segment through the installation of 125 miles of new pipeline from Defiance to Bridgman. MIDWEST MARKETS - Willow Run Segment Horsepower Expansion Through the installation of new compression, ANR can offer an additional 140,000 Dth/day of capacity from Defiance, Ohio (Rover at Westrick) to Willow Run, Michigan (See Region 4 delivery options under ANR Delivery Locations below). Requests for Other Facilities At the request of interested parties, ANR may consider providing capacity from or to other existing, new or expanded receipt or delivery points across the ANR system. PROJECT TIMING Depending on scope, the targeted in-service date of the Project can be as early as the 3rd Quarter of 2017. PROJECT CAPACITY The following firm transportation capacity is being proposed: Receipt Point Defiance, Ohio (Rover at Westrick, Ohio), REX at Shelbyville, Dominion at Lebanon, Texas Eastern at Glen Karn Defiance, Ohio (Rover at Westrick, Ohio) Shelbyville, Indiana (REX at Shelbyville) Delivery Point Contract Quantity Region 1 190,000 Dth/day Region 2 158,000 Dth/day Region 3 400,000 Dth/day Region 4 140,000 Dth/day Region 2 158,000 Dth/day Region 3 200,000 Dth/day Region 4 140,000 Dth/day At the request of interested parties, ANR may consider additional receipt and/or delivery points. ANR DELIVERY LOCATIONS Region 1 – Gulf Coast Markets on ANR, Southeast Area Rate Zone • ANR Southeast Headstation • Kinder Morgan Louisiana Pipeline (Proposed) • Acadian • Cypress • Bridgeline • CLECO (Acadia and Teche Plants) • 3rd Party Storage (Bobcat, Pine Prairie, Egan) • Southeast Pipelines (FGT, Gulf South and Southern Natural) 2/7 Region 2 – ANR Joliet Hub • Alliance Pipeline • Guardian Pipeline • Northern Border Pipeline • Midwestern • NGPL • Northern Indiana Public Service Company(NIPSCO) • Peoples • Vector Pipeline Region 3 – ANR, Tie-line & MLN Michigan Markets • DTE Energy (Willow Run & Detroit A) • Consumers Energy (Overisel & Stag Lake) • Michigan Power Plants • Northern Indiana Public Service Company (NIPSCO) • Southeastern Michigan Gas Company (SEMCO) • Great Lakes Gas Transmission (Farwell) • ANR Storage Facilities • Minnesota Markets via Great Lakes Gas Transmission Region 4 – ANR, Ohio and Defiance to Willow Run Markets • DTE Energy (Willow Run) • Columbia Gas Transmission ( Maumee East & Monclova) • Ohio Gas Company • East Ohio Gas Company CONTRACT TERM ANR is requesting contract terms between 10-15 years, but may consider a shorter duration based on other contractual considerations mutually agreed to by the parties. RATES NEW CAPACITY PATHS Rates will be determined after the conclusion of the Open Season and will be dependent upon the scope of the facilities required to provide the services requested and ultimately awarded in executed binding precedent agreements. Shippers will have the opportunity to pay applicable recourse rates established for this service or pay a mutually agreeable negotiated rate. In addition, shipper will be responsible for any applicable fuel and other charges associated with the service provided. 3/7 MARKETS Market Demand The project provides Utica and Marcellus supplies unparalleled access to existing markets, including: Louisiana Demand - Mmcf/d 14000 • • • • • • • • Multiple liquid pricing hubs including: o Chicago’s ANR Joliet Hub o MichCon o Consumers Energy o Dawn (indirect) o Minnesota (indirect) o Lebanon o ANR LA o ANR SW 35+ Electric and Gas Utilities Significant connections to LDC demand in Michigan, Wisconsin, Illinois, Indiana, and Ohio Significant gas-fired power generation demand from 40 power plants across the ANR system with nameplate capacity of 17,000+ MW Direct and indirect access to over 900+ Bcf of storage capacity, including 250 Bcf of ANR on-system storage Access to off-system storage, including MichCon, Consumers, Bluewater, MGU, Peoples, Panhandle, and Dawn Growing industrial markets Multiple LNG export markets in Louisiana and Texas 12000 10000 LNG Exports 8000 Industrial 6000 Power R&C 4000 Storage 2000 0 2014 2017 2020 2023 Midwest Demand - Mmcf/d 14000 12000 10000 Industrial 8000 Power 6000 R&C 4000 Storage 2000 0 2014 2017 2020 2023 Ontario Demand - Mmcf/d 14000 12000 10000 Industrial 8000 Power 6000 R&C 4000 Storage 2000 ANR Southwest 0 2014 4/7 2017 2020 2023 ALLOCATION OF PROJECT CAPACITY Should interest for capacity resulting from this Open Season exceed the Project Capacities listed; ANR will consider an increase in the Project capacity or implement a procedure to allocate the Project capacity as proposed on a not unduly discriminatory basis with those parties who execute binding Precedent Agreements. ACKNOWLEDGEMENT OF OPEN SEASON RESPONDENTS ANR will acknowledge receipt of all respondents expressing interest in the capacity being offered in this Open Season in a timely manner. This Open Season is subject to all applicable laws, orders, rules, and regulations and authorities having jurisdiction. LIMITATIONS AND RESERVATIONS ANR reserves the right to decline to proceed, in part or in whole, with either or both the Gulf Coast or Midwest Market Access projects. ANR reserves the right to proceed with multiple projects as may be defined through negotiations. ANR reserves the right to negotiate with only shippers who submit an Expression of Interest Form in response to this Open Season but also reserves the right to negotiate with other potential shippers if there is additional capacity available in the project or such negotiations could lead to an enhanced project. SOLICITATION OF TURNBACK CAPACITY ANR requests that any shipper who currently holds firm transportation capacity along the paths mentioned in this Open Season notify ANR in writing, by the end of this Open Season, if it wishes to turn back its capacity (“Turnback Capacity”). Such notification must specify the contract number, primary receipt and delivery points, and the volume the shipper is offering to turn back. ANR will consider and evaluate offers of Turnback Capacity which satisfy services similar to those proposed herein in terms of location, term, and price. EXPRESSIONS OF INTEREST Parties wishing to submit an expression of interest (“EOI”) during the Open Season must submit a completed Expression of Interest Form (as attached) by mail, by email attachment or by facsimile. All EOI’s must be received by ANR prior to the close of the Open Season described above. EOI’s must be mailed, emailed or faxed to: MAIL: E-mail: Fax: ANR PIPELINE COMPANY 700 LOUISIANA STREET, SUITE 700 HOUSTON, TX 77002-2700 ATTN: DANIEL ANDRUCCIOLI (832) 320-5451 [Office] ANR BUSINESS DEVELOPMENT [email protected] (832) 320-6451 5/7 ANR PIPELINE COMPANY GULF COAST AND MIDWEST MARKET ACCESS OPEN SEASON EXPRESSION OF INTEREST FORM Send to: ANR Pipeline Company 700 Louisiana Street, Suite 700 Houston, TX 77002-2700 Attn: Mr. Daniel Andruccioli Forward via e-mail to [email protected], or fax, to Dan Andruccioli at (832) 320-6451 no later than 5:00 p.m. CT Tuesday, April 7, 2015. Note: A separate EOI must be submitted for each transportation path requested. 1. For questions or comments please contact Daniel Andruccioli at (832) 320-5451. 2. Respondent Information: Name: Address: Telephone: Facsimile: ____________________________ ____________________________ ____________________________ ____________________________ 3. Name and title of duly authorized officer: Name: Title: ____________________________ _____________________________ 4. Service Commencement Date Requested: Service End Date Requested: ______________________ ______________________ 5. Type of Service Requested: FTS-1 6/7 ANR PIPELINE COMPANY GULF COAST AND MIDWEST MARKET ACCESS OPEN SEASON EXPRESSION OF INTEREST FORM-continued 6. Transportation Service Requested Firm Receipt Point 7. Firm Delivery Point Contract Quantity (Dth/day) Minimum Pro-rata Quantity (Dth/day) Additional information/comments in support of request: ______________________________________________________________ ______________________________________________________________ THIS EXPRESSION OF INTEREST FORM IS HEREBY SUBMITTED: By: __________________________________________________________ Title: ________________________________________________________ Company: ____________________________________________________ Telephone Number: ____________________________________________ Email Address: ________________________________________________ Facsimile Number: _____________________________________________ Date: _________________________________________________________ 7/7
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