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FT: Expansion Capacity

FHBC Alberta-B.C. Border FT Open Season

July 31, 2019


Foothills Pipe Lines Ltd. (“Foothills”) is holding a binding Expansion Capacity Open Season for Firm Transportation (“FT”) Service (the “Open Season”) on Zone 8, Foothills Pipe Lines (South B.C.) Ltd. (“FHBC”).


Estimated Available Expansion Capacity and Targeted Service Commencement:

The Expansion Capacity available through the Open Season is up to 285,000 GJ/d.

The Expansion Capacity will be offered on FHBC in two tranches. The targeted Service Commencement
Date and respective capacity for each tranche are as follows:

Expansion Capacity:  Up to 110,000 GJ/day.  The targeted Service Commencement
Date for this tranche is November 1, 2022.

Expansion Capacity:  Up to 175,000 GJ/day.  The targeted Service Commencement
Date for this tranche is November 1, 2023.

Commencement of Service for Expansion Capacity will be based on determination of expansion facility readiness.

Additional Expansion Capacity may be available in the event Foothills receives confirmation of non-renewals or accepts turnback requests as detailed below.


Bidding and Allocation Procedure for the Open Season:

The Open Season will commence on Wednesday, July 31, 2019 at 10:00 a.m. Mountain Time (MT).

Bids are due Thursday, August 29, 2019 before 10:00 a.m. Mountain Time (MT).

As outlined in Capacity Allocation Procedures to the Foothills Tariff, all parties wanting to bid for this available service can do so by completing the Existing Capacity/Expansion Capacity Bid Form (Appendix B of the Capacity Allocation Procedures).

A completed and executed Existing Capacity/Expansion Capacity Bid Form shoulld be sent by email to [email protected] prior to the deadline shown above.

As outlined in the Capacity Allocaiton Procedures, Foothills will evaluate bids solely based on the requested term length, independent of the requested Service Commencement Date.

The minimum term for Expansion Capacity is 10 years. Company approvals to proceed with the expansion facilities will be subject to a feasibility evaluation that will include consideration of contract term length of 15 years or more.

Prospective Shippers should submit bids that specify one of the two above listed Service Commencement Dates for the Expansion Capacity.  Prospective Shippers may submit more than one bid. The aggregate of bid quantities shall not exceed the stated Expansion Capacity associated with the requested Service Commencement Date.  All bids are binding; however, Prospective Shippers may submit bids conditional on being awarded capacity in an open season process held by a directly interconnecting pipeline in accordance with the provisions of the Capacity Allocation Procedures.

In the event a Prospective Shipper is now awarded all or a portion of its bid for Expansion Capacity in the earlier tranche, Foothills will consider the Prospective Shipper's bid, or the remaining portion of it, as a bid for the same term length for the next available Service Commencement Date in the Open Season. By submitting a bid, the Prospective Shipper agrees to this bid allocation.

Successful bidders will be required to meet the deposit requirements outlined in the Capacity Allocation Procedures.


Awarding Expansion Capacity:

The successful bidders in the Open Season will be required to execute a Precedent Agreement (“PA”) and a Service Agreement, Firm Transportation Service including Schedule A to that agreement (“Service Agreement”) for the awarded Service Commencement Date, Delivery Contract Demand and term.

Foothills will notify successful bidders in accordance with the Capacity Allocation Procedures. Successful bidders for Expansion Capacity will have until Wednesday, September 11, 2019 to return executed documents and to satisfy Financial Assurance requirements. The amount of Financial Assurances that FHBC may request from the Prospective Shipper is an amount payable to Foothills under the Service Agreement of 70 days plus one month for each year of term, up to 12 months total.

All capitalized terms not defined herein have the meaning ascribed to them in the Foothills Tariff.


Confirmation of Non-Renewal and Turnback Requests


Foothills is soliciting confirmation of non-renewal from any customers currently holding FT Service on FHBC eligible for renewal prior to November 1, 2022.  Any customers that do not intend to renew their FT service and wish to submit a confirmation of non-renewal should complete the confirmation of non-renewal form and submit it to [email protected] by the close of the Open Season.  Confirmations of non-renewal are binding and irrevocable once submitted.

Foothills is also soliciting turnback requests for any shippers currently holding FT service on FHBC that expires after October  31, 2022.  Acceptance of any turnback request is at Foothill’s sole discretion. Foothill’s evaluation of turnback requests will include but not be limited to consideration of whether the request reduces the need for expansion facilities; capital and operating cost impacts; and revenue and toll impacts.

Any acceptance of a turnback request will be subject to FHBC proceeding with the expansion facilities, including execution of the PAs and Service Agreements by other Prospective Shippers and all necessary company and regulatory approvals.

Customers wishing to submit a turnback request for all or a portion of their FT service on FHBC on or after November 1, 2022 should complete the turnback request form and submit it to [email protected] by the close of the Open Season.  Turnback requests are binding and irrevocable once submitted.


For more information, please contact your Marketing Representative or alternatively:

Cullen Dancy

Phone: 1.587.933.0785

Email: [email protected]