October 2010 Open Season Defining the Future of Natural Gas Storage

Transcription

1 3 Riverway Suite 1110 Houston, Texas October 2010 Open Season Defining the Future of Natural Gas Storage

2 RYCKMAN CREEK RESOURCES, LLC OPEN SEASON NOTICE Response Due By November 1, 2010, at 5:00 PM CST October 6, 2010 Dear Potential Customer: Ryckman Creek Resources, LLC, a wholly-owned subsidiary of Peregrine Midstream Partners, LLC, is conducting a nonbinding Open Season to determine the interest of prospective customers in contracting for up to 15 BCF of firm, highdeliverability, multi-cycle (HDMC) working gas storage capacity in Uinta County, Wyoming, near the Opal Hub. Ryckman Creek is converting a partially- depleted oil and gas reservoir into a gas storage facility with 35 Bcf of working gas and a maximum daily withdrawal rate of 360,000 MMbtu/d. The initial in-service date is April 1, The Ryckman Creek Project will offer tailored gas storage services to meet the needs of a wide range of potential gas storage customers including Electric Utilities, IPP, LDC, Gas Producers and Marketing entities doing business in the Rocky Mountain Region and throughout the Western U.S. Ryckman Creek is developing this project near the town of Evanston, Wyoming and approximately twenty-five miles South of the Opal Hub. Ryckman Creek currently has interconnects with Questar Gas Pipeline, Kern River Transmission and Questar Overthrust Pipeline. The project is also planning nearby interconnections with Ruby Pipeline and Northwest Pipeline. By submitting the enclosed Bid Response Form, the party submitting the form is making a non-binding expression of interest. The bids received via the Non-Binding Bid Response Form will define a queue by which Peregrine Midstream Partners will approach bidders to negotiate binding Precedent Agreements. Peregrine Midstream Partners reserves the right, without qualification, to reject any and all bids and to modify this Open Season procedure in any way during this Open Season period. Bidders who submit bids do so without recourse against Peregrine Midstream Partners.

3 RYCKMAN CREEK RESOURCES, LLC NON-BINDING OPEN SEASON Details and Project Description OPEN SEASON WINDOW: October 6, 2010 to November 1, 2010 at 5:00 PM CST Initial In-Service Date: April 1, 2012 Max. Storage Quantity (MSQ): 35,000,000 Dth Max. Daily Injection Quantity (MDIQ): 260,000 Dth/d Max. Daily Withdrawal Quantity (MDWQ): 360,000 Dth/d Receipt and Delivery Points: Current: Questar Gas Pipeline, Kern River Gas Transmission, Questar Overthrust Pipeline Proposed: Ruby Pipeline and Northwest Pipeline Annual Cycles: 1 to 4 Turns Ratchet Examples (based on Turns): MSQ Inventory MDWQ #Days 1 Turn Service: No Ratchets Withdrawals: 1,000, , Injections: 0 1,000,000 5, Turn Service: Withdrawals: 1,000, ,000 15, , , Injections: 0 1,000,000 6, Turn Service: Withdrawals: 1,000,000-69,000 19, , , Injections: 0 1,000,000 8, Commodity Rates: Fuel Reimbursement: $0.015/Dth on Injection and $0.01/Dth on Withdrawal 2.5 % of Injected Quantity (in kind) Bid Submission Info: By submitting the enclosed Bid Response Form, the party submitting the form is making a non-binding expression of interest. The bids received via the Non-Binding Bid Response Form will define a queue by which Peregrine Midstream Partners will approach bidders to negotiate binding Precedent Agreements. Peregrine Midstream Partners reserves the right, without qualification, to reject any and all bids and to modify this Open Season procedure in any way during this Open Season period. Bidders who submit bids do so without recourse against Peregrine Midstream Partners.

4 RYCKMAN CREEK RESOURCES, LLC NON-BINDING OPEN SEASON BID RESPONSE FORM FOR FIRM GAS STORAGE CAPACITY Submitting Party Company Name: Contact Individual and Title: Telephone Number and Fax: Address: Max. Storage Qty (MSQ) requested: Term Requested (years): Monthly Reservation Charge: Dekatherms (Dth) Start Date: $/Dth of MSQ per month. Max. Daily Injection Quantity (MDIQ) requested by Receipt point: (Ratchets may apply) Proposed Interconnects: Questar Pipeline (260 Mcf/d max.) Questar-Overthrust (260 Mcf/d max.) Kern River Transmission (205 Mcf/d max.) Northwest Pipeline (260 Mcf/d max.) Ruby Pipeline (260 Mcf/d max.) Total Requested: (Not to exceed 260 Mcf/d Max. Daily Withdrawal Quantity (MDWQ) requested by Delivery point: (Ratchets may apply) Proposed Interconnects: Questar Pipeline (300 Mcf/d max.) Questar-Overthrust (300 Mcf/d max.) Kern River Transmission(300 Mcf/d max.) Northwest Pipeline(300 Mcf/d max.) Ruby Pipeline(300 Mcf/d max.) Total Requested: (Not to exceed 360 Mcf/d Turns Requested: Commodity Rates: (1 to 4 max.) $0.015/Dth of Injections and $0.01/Dth of Withdrawals Fuel Reimbursement: 2.5 % of Injected volumes (in kind) Additional Comments: Fax, or Mail Bids To: Peregrine Midstream Partners Attn: Jeffrey Foutch or Don Wash 3 Riverway, Suite 1110 Ph: Fax: Houston, Texas jhfoutch@peregrinempllc.com or dwash@peregrinempllc.com

5 Ryckman Creek Location Map