Message-ID: <24555406.1075857805764.JavaMail.evans@thyme> Date: Tue, 15 May 2001 04:19:00 -0700 (PDT) From: wgphou.customernotices@williams.com Subject: Transco - Offers For Relinquishment Of Firm Capacity Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "CustomerNotices, WGPHOU" X-To: X-cc: X-bcc: X-Folder: \Judith_Townsend_Jun2001\Notes Folders\Discussion threads X-Origin: Townsend-J X-FileName: jtownse.nsf Media Inquiries: Angela Mendoza (713) 215-4098 Other Inquiries: Transit Help Line Outside 713 Area Code: 1-800-248-0404 Inside 713 Area Code: 215-3371 May 15, 2001 TO: Existing Firm Transportation Shippers RE: Offers For Permanent Relinquishment of Firm Capacity in Conjunction with the Leidy East Expansion Project Transcontinental Gas Pipe Line ("Transco") solicits offers for the permanent relinquishment of firm transportation capacity on the Transco system. Shippers holding capacity with receipts at Leidy, PA and deliveries to Princeton Junction or mainline points in Zone 6 may offer that capacity for relinquishment, subject to the conditions outlined below. Transco intends to combine such relinquished capacity with newly constructed capacity in order to render service in Transco's Leidy East Expansion Project ("Leidy East"). In accordance with the Commission's order of April 26, 2001 denying Transco's request for clarification of the MarketLink Order, the Leidy East project will provide service to shippers that had executed contracts that were filed with the Commission on April 13, 2001, as part of Phase 3 of the MarketLink project. The capacity of the Leidy East project will be 130,000 Dts/d. In order to meet the proposed in- service date of November 1, 2002, Transco plans to file a certificate application with the Commission for Leidy East by the end of June. Offers for capacity relinquishment may be made by shippers with existing transportation services as defined above and provided under Part 284(G) of the FERC's regulations. Valid offers must meet the following criteria: 1. The capacity offered must result in a reduction of the facilities otherwise required to serve the subscribing shippers in Leidy East; 2. Inclusion of relinquished capacity in the project must result in a lower cost of service for the project than if additional facilities were constructed; 3. The remaining contract term for the relinquished capacity must not exceed the primary contract term of service for Leidy East; 4. Offers for permanent relinquishment will not be accepted from shippers who have contracted for service under Leidy East; 5. Offers must identify the specific contract(s) and delivery point(s) in each contract at which delivery point entitlements (DPEs)will be reduced as a result of the relinquishment of firm capacity to those points; and 6. Offers must be unconditional, binding and irrevocable. Such offers must be received by Transco no later than 5:00 PM CST on Monday, May 21, 2001. After receipt of offers to relinquish capacity, Transco will make any modifications necessary to the design of the facilities to be constructed to render service in Leidy East. Parties that submit offers to relinquish capacity will be notified as to whether the offer complied with the specifications set forth herein and whether the capacity will be accepted and utilized to render service in Leidy East. If more capacity is offered than is needed in Leidy East, preference will be given to those offers which reduce the cost of Leidy East to the greatest degree. In the event of a tie, preference will next be given to those offers which have the shortest remaining term for the capacity relinquished. Shippers with relinquished capacity that is included in Leidy East will retain all rights and responsibilities set forth in their Service Agreement(s), Rate Schedule FT and the General Terms and Conditions of Transco's FERC Gas Tariff until Leidy East firm transportation service commences through the relinquished capacity. The Leidy East firm transportation service is expected to commence on November 1, 2002. The relinquishing shipper's service agreement(s) will be terminated or reduced effective on the actual in service date. Transco's acceptance of relinquished capacity is and will be subject to the following: 1. Execution and delivery by the shipper to Transco of an agreement to permanently relinquish such firm transportation capacity (such agreement to be provided by Transco); 2. Execution and delivery of an amendment to the shipper's firm transportation contract reflecting any modifications resulting from the relinquishment of a portion of the service related to such capacity, if applicable; 3. Receipt of a FERC certificate authorizing the proposed Leidy East facilities and service (including approval of this capacity relinquishment) in a form acceptable to Transco in its sole opinion. In the event that Leidy East does not go forward for any reason, including, without limitation, the FERC authorizations being granted in a form unacceptable to Transco, the capacity relinquishment shall not be effectuated and all related agreements shall be null and void. Parties desiring more information regarding this announcement should contact Nancy Hargrove at 713-215-2926. --------------------------ADDITIONAL X12 INFORMATION------------------------ Trans. Svc. Provider: 007933021 - TRANSCONTINENTAL GAS PIPE LINE CORPORATION Notice Identifier: L0105151 Critical Notice: No Type of Notice: 6-Other Required Response: 5-No Response Required Resp By Date/Time: N/A Notice Eff Date/Time: 05/15/01 11:14:54 Notice End Date/Time: N/A Status: 1-Initiate Prior Notice Ident.: N/A ____________________________________________________________________________ - C.DTF