Paiute Pipeline Company - Notices Detail

Great Basin Gas Transmission Company (“Great Basin”) hereby notifies present and potential shippers of its plans to consider expanding its existing transmission system downstream of the Wadsworth, Nevada Receipt Point (“Wadsworth”) to meet new, additional and/or changing market needs on that segment of Great Basin’s system. Great Basin’s contemplated system expansion is herein referred to as the “2024 Expansion Project or Project”. Great Basin held a non-binding open season for the 2024 Expansion Project from Thursday, February 3, 2022, until 5:00 p.m. PST on Thursday, February 17, 2022 (“Non-Binding Open Season”). Great Basin received sufficient interest from existing and/or potential shippers from that open season to move forward with this a binding open season. Beginning April 12, 2022, and continuing through April 25, 2022, Great Basin held a binding open season requesting a 25-year minimum contract term.

Beginning April 29, 2022, and continuing through May 6, 2022, Great Basin is conducting a second binding open season with a 20-year minimum contract term (“Binding Open Season”). The Binding Open Season will confirm market support for new and/or additional firm transportation service on Great Basin’s system, including new delivery points and point quantities (referred to as “new and/or or additional transportation service”) based on the proposed Project as described below. In addition, Great Basin will consider as part of its evaluation, binding offers from shipper(s) to change delivery points or point quantities under existing contracts downstream of Wadsworth where shipper(s) seeks no increase in Daily Reserved Capacity (referred to as “increased firm service deliverability”).[1] As explained below, Great Basin also requests binding offers to turn back capacity from Wadsworth or Owyhee Receipt Point (“Owyhee”) to delivery points downstream of Wadsworth (referred to as “turnback capacity”).

Great Basin presently provides firm transportation service from existing receipt points at Owyhee, on the Idaho-Nevada border, where Great Basin has an interconnection with Northwest Pipeline LLC (“Northwest”); at Wadsworth, where Great Basin has an interconnection with Tuscarora Gas Transmission Company (“Tuscarora”); at Opal Valley in Humboldt County, Nevada, where Great Basin has an interconnection with Ruby Pipeline, L.L.C. (“Ruby”); and at Jade Flats in Elko County, Nevada where Great Basin has another interconnection with Ruby. Great Basin’s Binding Open Season for its 2024 Expansion Project is limited to new transportation service from the Wadsworth Receipt Point to downstream points.

Great Basin is conducting this Binding Open Season to confirm market support for new and/or additional firm transportation service and/or increased firm service deliverability, originating from Wadsworth to points downstream. Requests for permanent delivery point changes where shipper seeks no change in Daily Reserved Capacity may still occur pursuant to General Terms and Conditions (GT&C) Section No. 4.3(c)(1) of Great Basin’s FERC Tariff, subject to existing, available capacity.

In responding to this Binding Open Season, shippers must identify: (1) all desired new primary delivery point(s) on Great Basin’s system, including maximum daily quantities at those points; (2) the desired new maximum daily quantities at all existing delivery points where shipper seeks to change those maximum daily quantities; (3) requested changes to existing transportation service agreements (“TSAs”) including shifting delivery points and/or changed maximum daily quantities (including identifying the applicable TSA agreement numbers); (4) any special pressure requirements at the requested new delivery points or the existing points where shipper is requesting changed maximum daily quantities; and (5) any desired new or additional Daily Reserved Capacity, as well as associated primary delivery points and maximum daily quantities.

Based on the responses received by Great Basin in the Non-Binding Open Season, Great Basin proposes to construct additional mainline facilities downstream of Wadsworth to transport additional quantities of natural gas to various delivery points on the Carson, North Tahoe, and South Tahoe Laterals. Great Basin proposes to add 5,674 Dth of new capacity to the system. Great Basin anticipates that the expansion rate will be incrementally priced. Great Basin estimates an initial rate of $36 per Dth per month. This estimated initial rate will be updated at the time Great Basin files a certificate application in 2023. The initial rate and Project facilities are subject to the Federal Energy Regulatory Commission’s (FERC) approval. Great Basin anticipates that the facilities will be placed in service around November 1, 2024, or as soon as possible thereafter. Great Basin will require a minimum contract term of 20 years. Project Shippers must meet the creditworthiness requirements contained in Great Basin’s Tariff. In addition, the transportation service provided as part of this Project will be subject to the General Terms and Conditions of Great Basin’s Tariff. The Project design and estimated expansion rate are subject to change based on the responses to this Binding Open Season. Great Basin’s construction of the Project is subject to the receipt of a FERC Certificate of Public Convenience and Necessity acceptable to Great Basin.

Shippers who wish to obtain new and/or additional firm transportation service and/or increased firm service deliverability on Great Basin’s system as described above should submit a binding response to Great Basin no later than May 6 at 5:00 p.m. PDT, as described below. If shippers’ Binding Open Season responses demonstrate adequate market support for the 2024 Expansion Project, and Great Basin determines that the Project is operationally and/or economically justified, then Great Basin, in its sole discretion, will tender precedent agreements to shippers requesting service as proposed in this Binding Open Season notice. For Great Basin to proceed with the Project, Great Basin will need sufficient shipper support evidenced by executed Precedent Agreements. Project Shippers must execute and return signed precedent agreements to Great Basin within 30 days after Great Basin tenders the precedent agreements to the Project Shippers.

In conjunction with this Binding Open Season, Great Basin is also soliciting offers from existing shippers who want to relinquish firm transportation service capacity from Wadsworth or Owyhee to delivery points downstream of Wadsworth. Depending on the term, delivery points, and other specific characteristics of the capacity proposed to be relinquished, requests for new and/or additional service may be satisfied through this turnback capacity. Shippers who may be interested in relinquishing capacity must identify 1) the quantity of Daily Reserved Capacity shipper seeks to turn back; 2) the quantity of Summer Daily Reserved Capacity shipper seeks to turn back; 3) the primary delivery point(s) including maximum daily quantities associated with the capacity; and 4) the TSA number(s) associated with the capacity. Shippers offering to turn back capacity are offering to reduce their contract demands under existing contracts to allow Great Basin to serve other shippers with like quantities. Pursuant to FERC policy, Great Basin is not obligated to accept turn back capacity unless Great Basin determines it meets the needs of the Project. Great Basin must remain economically neutral if it accepts any offer to turn back capacity.

To submit a binding offer for new and/or additional firm transportation capacity and/or increased firm service deliverability to be provided by the 2024 Expansion Project, or to submit a binding offer to turn back capacity to be used for the Project, a shipper must complete and execute the Response Form for Binding Open Season Regarding Great Basin’s 2024 Expansion Project. The response form can be found on Great Basin’s website (www.GreatBasinGTC.com) under the Download Tab and titled “2024 Binding Open Season Form.” All responses must be received by Great Basin no later than 5:00 p.m. (PDT) on May 6, 2022, unless Great Basin notifies potential shippers that the Binding Open Season will be extended. Great Basin will accept executed Binding Open Season responses received either by email at GreatBasin-Regulatory@swgas.com, mail, or overnight delivery service. Great Basin will confirm delivery of all received email responses.

Each shipper is responsible for arranging its upstream and downstream transportation from pipelines and/or local distribution companies (LDCs) interconnected to Great Basin’s system. For assistance in contacting these pipelines and LDCs, you may contact Mr. Litwin or Mr. Maglietti at the phone numbers below.

Based upon the responses received by Great Basin during this Binding Open Season, Great Basin may elect not to proceed with the 2024 Expansion Project, or may determine, in its sole discretion, that it would be operationally and/or economically infeasible for Great Basin to provide firm transportation service to a shipper(s).

This notice is being posted on Great Basin’s Internet Web Site (www.GreatBasinGTC.com). If you have any questions concerning this proposal, please contact one of the following individuals:

[1] The level of shipper’s transportation contract demand associated with new and additional service must be the same during both the Winter and Summer Periods.