Union Gas Announces Binding
Open Season for Peak and Off-Peak Storage
March 13, 2009
Union Gas Limited (“Union”), a Spectra Energy Company hereby invites all existing and potential Shippers to submit binding bids for Dawn storage starting April 1, 2009. All bids are due on or before 11:30 am Eastern Time / 10:30 am Central Time on March 25, 2009.
Peak Storage – a firm seasonal storage service, with a term of 1 to 10 years
Off Peak storage – an Interruptible summer storage service, with an expiry date of August 31, 2009
Union expects to award capacity on or before 3:00 pm Eastern Time / 2:00 pm Central Time on March 25, 2009. Union reserves the right to reject any and all bids at its sole discretion.
All contracts awarded will be 100% “take-or-pay” and will be billed monthly, prorated over the term of the contract.
Injections:
5% of MSB daily on an Interruptible basis.
Withdrawals:
Firm withdrawals in all months except March and April at the rate of 1.2% of MSB daily, regardless of balance level at or above zero; plus 3.8% of MSB daily on an Interruptible basis.
Interruptible withdrawal period from March 1 through April 30 at the rate of 5% of MSB daily.
Receipt and Delivery points shall be Dawn.
Term: Minimum of 1 year Maximum of 10 years.
The first storage cycle is complete when the cumulative quantity of all injections and all withdrawals equals two (2) times the contracted Maximum Storage Balance (also referred to as MSB). “Maximum Storage Balance” shall mean the maximum quantity of storage space available for Shipper’s utilization.
After the first storage cycle each year, (to be reset on April 1) injections into storage by Shipper and withdrawals from storage to Shipper will each be at a rate of $0.05 CDN/GJ.
No commodity charge and 0% fuel on receipts and deliveries, with the exception of the cycling charge described above.
All terms and conditions set out in Union’s Peak Storage Contract, including payment options, will be applicable and can be viewed on the Union website at www.uniongas.com/openseason.
All contracts awarded will be 100% “take-or-pay” and will be billed monthly prorated over the term of the contract.
Injections:
5% of MSB daily on an Interruptible basis.
Withdrawals:
5% of MSB daily on an Interruptible basis.
Receipt and Delivery points shall be Dawn.
Term: April 1, 2009 to August 31, 2009
The first storage cycle is complete when the cumulative quantity of all injections and all withdrawals equals two (2) times the contracted Maximum Storage Balance (also referred to as MSB). “Maximum Storage Balance” shall mean the maximum quantity of storage space available for Shipper’s utilization.
After the first storage cycle, injections into storage by Shipper and withdrawals from storage to Shipper will each be at a rate of $0.024 CDN/GJ.
No commodity charge and 0% fuel on receipts and deliveries, with the exception of the cycling charge described above.
All terms and conditions set out in Union’s Off - Peak Storage Contract, including payment options, will be applicable and can be viewed on the Union website at www.uniongas.com/openseason.
All bids are due on or before 11:30 am Eastern Time / 10:30 am Central Time on March 25, 2009. Union expects to award capacity on or before 3:00 pm Eastern Time / 2:00 pm Central Time on March 25, 2009.
Please provide Shipper’s binding bid under the above terms and conditions by signing and returning the enclosed Peak/Off - Peak Storage Bid Form indicating the Price ($US/MMBtu/year of MSB), Maximum Storage Balance (MSB) desired and Term.
Union reserves the right to make acceptance of any binding bid conditional upon receiving reasonable financial assurances for the obligations pursuant to this Open Season, if deemed necessary.
Union reserves the right to make its acceptance of any bid conditional upon satisfaction or waiver of conditions precedent set out in the standard Storage Contract, as applicable.
Each bid will be evaluated separately. If two or more successful bids have an equivalent value, and insufficient capacity exists to satisfy all such bids with an equivalent value, the capacity allocated to such bids will be prorated.
Union reserves the right to reject any and all bids at its sole discretion. Without limiting the foregoing, Union may, but is not required to, reject any bids which do not conform to the Open Season, are incomplete with the terms and conditions outlined in this Open Season, contain additional or modified terms, or are otherwise deficient in any respect.
If you have any questions regarding this Open Season, please feel free to contact your Account Manager:
| Jacquie Montgomery | (519) 436-5452 |
| Paolo Mastronardi | (519) 436-5264 |
| Leah Moss | (713) 627-5054 |
| Steven Tramonte | (713) 627-4411 |
| Anne Moore | (713) 627-4555 |
