Open Season Notice of Available and Expansion Firm Capacity on El Paso Natural Gas Company, L.L.C. (EPNG) Bid Deadline 2:00 PM Mountain Time, March 22, 2018 Portable Document Format (.pdf) file of Open Season: https://pipeportal.kindermorgan.com/portalui/openseasondocs.aspx?tsp=epgd EPNG is conducting a binding Open Season for existing available capacity and expansion capacity from existing and/or new receipt points in the Benedum/Edwards area, and Ozark Lake for delivery to existing and/or new points at or near EPNG s Waha and Keystone Compressor Stations. The expansion capacity will require system enhancements and modifications at EPNG s Sweetie Peck Junction (the Sweetie Peck Modifications ). The capacity offered in this Open Season (the Sweetie Peck Modifications Open Season ) will be available only on an interim basis until March 31, 2019. Rate Schedule: FT-1 Volume / TCD: 8,000 82,000 Dth/day Note: the specific amounts of existing and expansion capacity that are offered in this Open Season are described more thoroughly in the bid sheet attached hereto. Point(s): Points in the Benedum/Edwards Area including IBENDMWY, IEDWRDPL, and IBOBCAT up to 82,000 Dth/day Points in the /Ozark Lake Areas including IMNDZTRL and IOZARKLK up to 70,000 Dth/day Note: Shippers are encouraged to contact their customer service representatives or the individuals listed below to confirm the availability of capacity at specific points. Point(s): Keytran up to 61,000 dth/day Wahatran up to 40,000 dth/day Note: Shippers are encouraged to contact their customer service representatives or the individuals listed below to confirm the availability of capacity at specific points. Available Term: Existing Capacity can be made available as early as April 1, 2018. Expansion capacity will be available on the In-service date of the Sweetie 1
Peck Modifications. Subject to EPNG s receipt of sufficient shipper commitments and timely receipt of all necessary corporate and regulatory approvals, permits, and other authorizations required for the construction and operation of the Sweetie Peck Modifications, in a form and substance satisfactory to EPNG in its sole discretion, EPNG anticipates the ability to achieve an in-service date for the Sweetie Peck Modifications as early as October 1, 2018. The existing and expansion capacity offered in this Open Season will be available only until March 31, 2019. Open Season Start: 12:00 PM MST, March 15, 2018 End: 2:00 PM MST, March 22, 2018 Award Notification Date: 4:00 PM MST, March 28, 2018 Email attached Bid Sheet to KMWestBids@KinderMorgan.com NOTE: EPNG will rely upon the time the bid is received to determine whether the bid was timely. Bids that are received (as determined by the time stamp on the EPNG s email inbox) after the end date and time listed above will be considered invalid bids and will not be eligible for an award of capacity in this Open Season. EPNG recommends that bids be submitted well in advance of the closing time listed above to minimize the risk that any email delay could cause a bid to be excluded from consideration. General Open Season Requirements: Parties interested in bidding in this Open Season should submit completed Bid Sheet(s) (in the form attached hereto) to EPNG before the close of the open season via email at the following address: KMWestBids@KinderMorgan.com. By submitting Bid Sheet(s) to EPNG, the bidding party certifies that (a) all information contained in the request is complete and accurate, (b) it satisfies, or will be able to satisfy, all the requirements of EPNG's Federal Energy Regulatory Commission ("FERC") Gas Tariff, Third Revised Volume No. 1A, as the same may be amended from time to time ("EPNG's Tariff"), and (c) the person submitting the bid has full authority to bind the bidding party. The Available Capacity and the Enhancement Capacity are not eligible for a right-of-first-refusal ( ROFR ) pursuant to section 4.2(c) of EPNG s Tariff. The bid rate must be presented as the reservation rate per Dth/month or stated as the maximum tariff rate. In addition to the bid rate, each bid shall be subject to the applicable maximum usage rate and maximum usage surcharges, all other maximum rates, charges and surcharges, including ACA, Fuel, lost and unaccounted-for gas ( L&U ), retainage and any other authorized surcharges assessed under the applicable Rate Schedule of EPNG's Tariff as those amounts maybe amended or superseded from time- 2
to-time. This includes incremental lateral charges and any third party charges resulting from the use of capacity that EPNG may hold on other pipelines. EPNG reserves the right to reject negotiated rate bids, bids that have rates less than the maximum recourse rate, bids stated as the dollar equivalent of the current maximum recourse rate, bids that are incomplete, contain offers of varying rates within the term, contain additional or modified terms or are inconsistent with the provisions of EPNG's Tariff. If EPNG does not receive maximum recourse or negotiated rate bids for quantities and terms sufficient to economically justify EPNG s capital investment in the Sweetie Peck Modifications, then EPNG reserves the right not to move forward with the project described in this Open Season, or to negotiate with bidders to propose a more appropriately sized expansion at a corresponding rate. Existing shippers with capacity on EPNG s system that could be used in lieu of the Sweetie Peck Modifications should notify EPNG if they wish to permanently turnback their capacity through a release to prospective shippers in this Open Season. Those who wish to so release their capacity should notify EPNG of the amount, the term, and any other conditions that would be necessary to effectuate such a release of their capacity. Such notices should be submitted to EPNG before the close of the Open Season. Current EPNG shippers may submit bids which include requests to reform their existing effective FTSAs (which may include point redesignations) to utilize the Available Capacity or Enhancement Capacity. For purposes of evaluating bids and awarding capacity, EPNG will consider only the incremental revenue that would be generated by the bid (e.g., the incremental revenue associated with a higher reservation rate, an increase in Transportation Contract Demand, or for a term that extends beyond the current FTSA term end date etc.). EPNG notes that FERC Order No. 894, in some cases, prohibits multiple affiliates of the same entity from bidding in an open season for capacity in which the pipeline may allocate capacity on a pro rata basis. It appears to EPNG that the restrictions imposed by FERC Order No. 894 will be applicable in this Open Season and FERC recommends that potential bidders review and adhere to the requirements of that FERC Order. Although this is a binding open season, EPNG reserves the right, in its sole discretion, to consider requests for Available Capacity or Enhancement Capacity received after the close of the Open Season period, including requests to modify a participant's validly submitted bid, but shall be under no obligation to do so. EPNG will review all bids and award capacity based upon the criteria outlined below. EVALUATION CRITERIA If EPNG receives acceptable bids for capacity in excess of the actual amount of Available Capacity or Enhancement Capacity, then EPNG will award and/or allocate the capacity in a manner that yields the highest total Present Value (PV) as calculated below. In determining which bid(s) yield the highest total PV, EPNG reserves the right to combine multiple bids, in whole or in part, in a manner that results in a total PV of the combined bids that exceeds the highest PV achievable by accepting one or more of the disaggregated bids. This process could result in a bidder being awarded less capacity than requested (unless such bidder elects on its bid sheet not to accept a pro rata allocation of capacity). PV will be calculated as the sum of the present values for all of the months beginning with the first month capacity is available through the end date of the bid term. Bids stating a commencement date upon the 3
in-service date of any to-be-constructed facilities will be evaluated using EPNG s estimate of the completion date of the required facilities. The PV for each month will be calculated as follows: PV = (R X Q)/((1+i) to the power of n) Where: R = the monthly reservation bid rate Q = the monthly bid quantity i = the monthly discount rate of 0.3542% (which is the annual discount rate of 4.25% divided by 12). n = the number of months from the earliest date the capacity is available in the Open Season to the month the revenue will be received (the first month capacity is available n = 1, the second month n = 2, and so on). CREDITWORTHINESS REQUIREMENTS The successful bidder(s) must satisfy the creditworthiness requirements of EPNG's Tariff. A bidder that is unable to satisfy the general creditworthiness provisions set forth in EPNG s Tariff shall provide additional credit support (in the form of a Letter of Credit, a guaranty from a party that satisfies the creditworthiness standards, or such other form that is acceptable to EPNG in its sole discretion). CONTACT INFORMATION Questions concerning this Open Season should be directed to Greg Ruben (719-520-4870) or Ken Ulrich (719-520-3712) in the Business Development department. 4
Available Capacity 1 2018 s 2 KEYTRAN VA 10,000 9,000 8,000 8,000 8,000 9,000 10,000 46,000 12,000 s 2 WAHATRAN VA 0 0 0 0 0 0 0 1,000 17,000 10,000 9,000 8,000 8,000 8,000 9,000 10,000 47,000 29,000 2019 s 2 KEYTRAN VA 12,000 46,000 46,000 s 2 WAHATRAN VA 20,000 2,000 1,000 32,000 48,000 47,000 2018- Area Area s 3 KEYTRAN VA 0 0 0 0 0 0 0 34,000 0 Area s 3 WAHATRAN VA 0 0 0 0 0 0 0 1,000 17,000 0 0 0 0 0 0 0 35,000 17,000 2019- Area Area s 3 KEYTRAN VA 0 33,000 34,000 Area s 3 WAHATRAN VA 20,000 2,000 1,000 20,000 35,000 35,000 1 The Capacity and Area Capacity offered herein are mutually exclusive. 2 s include IBENDMWY, IEDWRDPL and IBOBCAT. 3 Area s include IMNDZTRL and IOZARKLK. *Please contact any of the EPNG representatives listed in the Open Season if you are interested in any potential receipt-delivery combination or quantities not shown. 5
Enhancement Capacity 1 2018 s 2 KEYTRAN VA 0 0 0 0 0 0 15,000 15,000 15,000 s 2 WAHATRAN VA 0 0 0 0 0 0 20,000 19,000 20,000 0 0 0 0 0 0 35,000 34,000 35,000 2019 s 2 KEYTRAN VA 15,000 15,000 15,000 s 2 WAHATRAN VA 20,000 19,000 19,000 35,000 34,000 34,000 2018 Area Area s 3 KEYTRAN VA 0 0 0 0 0 0 15,000 15,000 15,000 Area s 3 WAHATRAN VA 0 0 0 0 0 0 20,000 19,000 20,000 0 0 0 0 0 0 35,000 34,000 35,000 2019 Area Area s 3 KEYTRAN VA 15,000 16,000 15,000 Area s 3 WAHATRAN VA 20,000 19,000 19,000 35,000 35,000 34,000 Notes: 1. The Benedume Area Capacity and Area Capacity offered herein are mutually exclusive. 2. s include IBENDMWY, IEDWRDPL and IBOBCAT. 3. Area s include IMNDZTRL and IOZARKLK. *Please contact any of the EPNG representatives listed in the Open Season if you are interested in any potential receipt-delivery combination or quantities not shown. 6
Combined Available and Enhancement Capacity 1 2018 s 2 KEYTRAN VA 10,000 9,000 8,000 8,000 8,000 9,000 25,000 61,000 27,000 s 2 WAHATRAN VA 0 0 0 0 0 0 20,000 20,000 37,000 10,000 9,000 8,000 8,000 8,000 9,000 45,000 81,000 64,000 2019 s 2 KEYTRAN VA 27,000 61,000 61,000 s 2 WAHATRAN VA 40,000 21,000 20,000 67,000 82,000 81,000 2018 Area Area s 3 KEYTRAN VA 0 0 0 0 0 0 15,000 49,000 15,000 Area s 3 WAHATRAN VA 0 0 0 0 0 0 20,000 20,000 37,000 0 0 0 0 0 0 35,000 69,000 52,000 2019 Area Area s 3 KEYTRAN VA 15,000 49,000 49,000 Area s 3 WAHATRAN VA 40,000 21,000 20,000 55,000 70,000 69,000 Notes: 1. The Benedume Area Capacity and Area Capacity offered herein are mutually exclusive. 2. s include IBENDMWY, IEDWRDPL and IBOBCAT. 3. Area s include IMNDZTRL and IOZARKLK. *Please contact any of the EPNG representatives listed in the Open Season if you are interested in any potential receipt-delivery combination or quantities not shown. 7
Available Capacity - Open Season Bid Sheet Available Capacity 1 2018 s 2 KEYTRAN VA s 2 WAHATRAN VA 2019 s 2 KEYTRAN VA s 2 WAHATRAN VA 2018- Area Area s 3 KEYTRAN VA Area s 3 WAHATRAN VA 2019- Area Area s 3 KEYTRAN VA Area s 3 WAHATRAN VA Notes: 1. The Benedume Area Capacity and Area Capacity offered herein are mutually exclusive. 2. s include IBENDMWY, IEDWRDPL and IBOBCAT. 3. Area s include IMNDZTRL and IOZARKLK. *Please contact any of the EPNG representatives listed in the Open Season if you are interested in any potential receipt-delivery combination or quantities not shown. 8
Enhancement Capacity 1 2018 s 2 KEYTRAN VA s 2 WAHATRAN VA 2019 s 2 KEYTRAN VA s 2 WAHATRAN VA 2018 Area Area s 3 KEYTRAN VA Area s 3 WAHATRAN VA 2019 Area Area s 3 KEYTRAN VA Area s 3 WAHATRAN VA Notes: 1. The Benedume Area Capacity and Area Capacity offered herein are mutually exclusive. 2. s include IBENDMWY, IEDWRDPL and IBOBCAT. 3. Area s include IMNDZTRL and IOZARKLK. *Please contact any of the EPNG representatives listed in the Open Season if you are interested in any potential receipt-delivery combination or quantities not shown. 9
s 2 KEYTRAN VA s 2 WAHATRAN VA Combined Available and Enhancement Capacity 1 2018 2019 s 2 KEYTRAN VA s 2 WAHATRAN VA 2018 Area Area s 3 KEYTRAN VA Area s 3 WAHATRAN VA 2019 Area Area s 3 KEYTRAN VA Area s 3 WAHATRAN VA Notes: 1. The Benedume Area Capacity and Area Capacity offered herein are mutually exclusive. 2. s include IBENDMWY, IEDWRDPL and IBOBCAT. 3. Area s include IMNDZTRL and IOZARKLK. *Please contact any of the EPNG representatives listed in the Open Season if you are interested in any potential receipt-delivery combination or quantities not shown. 10
Open Season EBB Identifier: Sweetie Peck Modification Email Bid To: KMWestBids@KinderMorgan.com A. Shipper Information: Legal Name of Bidder: Name of Requesting Party: Title of Requesting Party: DUNS Number: Phone: B. Term of Service: Effective Start Date: Requested Term End Date: C. Transportation Contract Demand (TCD): Will you accept a pro rata allocation of capacity if necessary? (Select One) Yes / No *The sum of the MDQs at the Location(s) must equal the TCD. D. Bid Rate (express as a monthly rate per Dth or maximum reservation rate): *By submitting a bid to EPNG, the bidding party certifies that (a) all information contained in the request is complete and accurate, (b) it satisfies, or will be able to satisfy, all the requirements of EPNG s FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party. 11