NOTICE OF NON-BINDING OPEN SEASON AG LINE EXPANSION PROJECT

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1 Announcement of Non-Binding Open Season Natural Gas Pipeline Company of America LLC ( NGPL ) is soliciting interest from the market in developing a project to provide approximately 200,000 Dth/d of firm capacity via an expansion on the Amarillo-Gulf ( AG ) Line. The AG Line Expansion Project ( Project ) will provide for incremental firm transportation service from NGPL s Segments 15 or 16 located in the Texok Zone for deliveries to the north end of Segment 26 located on the Gulf Coast Mainline of the Texok Zone, including deliveries to the Texok Gulf Coast Pool (the Project Path ). The purpose of this Notice of Non-Binding Open Season is to solicit interest for firm capacity on the Project Path from shippers that are willing to commit to such firm transportation service, under terms and conditions described below and in accordance with all applicable rules and regulations of the Federal Energy Regulatory Commission ( FERC ). Description of the Project This Project, as currently designed, will increase NGPL s capability by approximately 200,000 Dth/day of firm capacity along the Project Path. The Project will require the installation and modification of certain facilities, including but not limited to, the installation of a new compressor unit and associated regulation equipment east of Compressor Station 801 located in Carter County, Oklahoma, (such facilities to provide for incremental firm transportation service on the AG Line and referred to as the Project Facilities ). 1

2 Project Indicative Rates/Term/Fuel NGPL anticipates that the following rates and terms will be required to support the Project: Reservation Rates: a) $0.16 (per Dth of MDQ per day) and a twenty (20) year term; or b) $0.19 (per Dth of MDQ per day) and a ten (10) year term; or c) $0.25 (per Dth of MDQ per day) and a five (5) year term; and Fuel Gas and Gas Lost and Unaccounted for Percentages (GLU): a) A fixed negotiated rate Fuel Gas and GLU Percentage of up to 2.85% (including deliveries to the Texok AG and Texok GC Pooling Points) In addition to the Reservation Rates and Fuel Gas and GLU, Shippers shall also pay all other applicable charges, including a commodity rate based on usage, Annual Charge Adjustment (ACA), and any additional charges or surcharges that are in effect from time to time pursuant to NGPL s FERC Gas Tariff, or as separately negotiated between Bidder and NGPL. Commencement of Service The targeted in-service date for the Project is April 1, If a Shipper has interest in an alternative start date, please include this in the Bid and NGPL will work with the Shipper on possible alternatives. The targeted in-service date is an estimate and may change dependent upon the necessary facilities and the regulatory approvals required. In addition, all or part of the capacity on the Project Path may be available ahead of the projected in-service date on an interim basis. Non-Binding Bid Requirements Interested parties should submit a completed Non-Binding Bid Form (attached as Exhibit A). The bid shall not become binding until incorporated into mutually agreed upon definitive agreements. Bids will be treated as confidential and will not be disclosed, except as authorized by the bidder or required by applicable law or regulation. A Non-Binding Open Season Bid Form must include the following information: Reservation Rate on a dollar per Dth of MDQ per month basis: Negotiated Rate; or Maximum Recourse Reservation Rate With or Without the System Wide Rate Option Maximum Daily Quantity ( MDQ ) must be 1,000 Dth per day or greater Bidder s Minimum Acceptable MDQ Primary Receipt Point(s), including the specified MDQ for the requested point(s) along the Project Path, e.g. Woodford Express-Carter Co., Southern Star- Carter Co., and EMP-EOIT Bryan Co. (Segment 15), and BP Red Oak- Latimer Co.. Primary Delivery Point(s), including the specified MDQ for the requested point(s) along the Project Path, e.g., Atmos Texas and MEP Atlanta Contract Start Date Contract term must be at least five (5) years Credit Application (attached as Exhibit B). 2

3 Solicitation of Turnback of Capacity In addition to soliciting bids for the Project, NGPL is accepting requests for permanent turnback of capacity from shippers that currently have firm eastbound capacity in Segments 15 and 17 that will be beneficial to the design of the Project. NGPL will consider any such turnback capacity in connection with its evaluation of the Project and only to the extent the use of turnback capacity provides economic benefits to NGPL where savings associated with the turnback exceed revenues lost. Shippers interested in capacity turnback should submit a request to NGPL by January 23, 2018, and specify the contract number, the effective date of turnback, primary receipt and delivery points and the quantity proposed to be turned back. NGPL may aggregate and accept any requests to turn back capacity in a manner that provides the most economic benefit to NGPL by comparing revenue lost with the savings associated with the turnback. NGPL will consider any requests submitted for turnback on a non-discriminatory basis. In accordance with NGPL s Tariff, any requests accepted by Natural for capacity turnback shall be binding upon the Shipper in the event NGPL proceeds with the Project. Capacity Reservation NGPL has reserved existing capacity in Segment 17 for this Project in accordance with its Tariff, as posted on its internet website. Credit Requirements Prior to the execution of definitive agreements, Shippers will be required to demonstrate creditworthiness or provide a credit alternative acceptable to NGPL in accordance with NGPL s Tariff. Timing of Non-Binding Open Season and Contact List The Non-Binding Open Season will commence at 12:00 P.M. CST on Wednesday, December 20, 2017, and conclude at 4:00 P.M. CST on Tuesday, January 23, Interested parties should send their bids via to: Jason_sweeney@kindermorgan.com. Bids may also be sent by mail or FAX to NGPL s offices to the attention of Jason Sweeney. The mailing address is 1001, Louisiana Street, Suite 1000, Houston, Texas The facsimile number is (713) Parties may submit questions concerning this Non-Binding Open Season to: Jason Sweeney: Phone: (713) ; Jason_sweeney@kindermorgan.com Donette Bisett: Phone: (713) ; donette_bisett@kindermorgan.com 3

4 EXHIBIT A NON-BINDING OPEN SEASON BID FORM A. Shipper Name: B. Contract Start Date: Is Shipper interested in obtaining early interim service: Yes No C. Contract End Date: (to be extended should in-service be delayed) D. Maximum Daily Quantity (MDQ): (Dth/d) E. Reservation Rate: ($ per Dth per month) Fixed Negotiated Rate or Recourse Rate Does Reservation Rate include System-wide service option: Yes No F. Primary Receipt/Delivery Point Information: Name/Location County State PIN No. MDQ (Dth/d) PRIMARY RECEIPT POINT: PRIMARY DELIVERY POINT(S): TOTAL By: Print Name: Title: Phone: Address: 4

5 EXHIBIT B Credit Application CREDIT APPLICATION FOR NATURAL GAS PIPELINE COMPANY OF AMERICA LLC Section 1 --General Information Shipper / Operator Name (Circle one) Shipper / Operator Address (Include City, State, Zip) DUNS# - - FEIN - Contact Person Telephone No. ( ) Business Entity: S Corporation C Corporation Partnership Other FAX No. ( ) Type of Business Number of years in business List parent corporation of Shipper/Operator (if Shipper/Operator is a subsidiary company) or general partners (if Shipper/Operator is a partnership) Please identify (specify) whether you are owned by Brookfield Infrastructure Partners L.P. Section 2 -- Standardized Credit Information Please provide Shipper s long-term unsecured debt credit ratings (including Outlook) current as of the date of this Credit Application: Standard & Poor s Moody s Is Shipper: - Operating under federal bankruptcy laws? Yes No - Subject to liquidation or debt reduction procedures under state laws? Yes No - Subject to pending liquidation or regulatory proceedings in state or federal courts which could cause a substantial deterioration of Shipper s financial condition? Yes No - Subject to any collection lawsuits or outstanding judgments which would affect Shipper s ability to remain solvent? Yes No - Are there any overdue amounts owed Natural Gas Pipeline Company? Yes No Section 3 -- Additional Financial Information and Documentation Please provide Shipper s estimated activity under all requested services: Estimated Monthly Volume for all Services: (Dth) Estimated Monthly Transportation/Storage Charges for all services $ Estimated Term (in months) of Capacity Release Request Expected Commencement Date for requested service or capacity release: If Shipper s audited financial information is not publicly available, please enclose current financial statements, annual reports, 10-K or other reports to regulatory agencies, or any reports from credit reporting agencies which are available. Natural Gas Pipeline Company may request additional credit information and documentation in order to perform a credit evaluation of Shipper, in accordance with the provisions of its FERC Gas Tariff. Incomplete applications will be declined. Shipper s Signature Date Return this Credit Application and Supporting Financial Information to: Natural Gas Pipeline Company of America LLC. Attention: Ralph Lohr 3250 Lacey Road, Ste 700 Downers Grove, IL Telephone: 630/ Facsimile: 630/ Ralph_Lohr@kindermorgan.com 5