FT: Expansion Capacity

Foothills Pipe Lines (South B.C.) Ltd. – Zone 8 Expansion Capacity Open Season

May 2, 2023 – June 12, 2023

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

Estimated Available Expansion Capacity and Targeted Service Commencement:

Estimated Expansion Capacity:                        up to 31,363 GJ/day

Targeted Service Commencement Date:        November 1, 2023

Service Commencement Date for Expansion Capacity will be based on determination of expansion facility readiness. In the event that components of the expansion facilities are delayed, declaration order of pending service agreements will be based on the term of service, with the exception that all shippers who hold Precedent Agreements for FT expansion capacity requiring the same expansion facilities prior to this Open Season will be declared before any shippers awarded Expansion Capacity in this Open Season.

Bidding and Allocation Procedure for the Open Season:

The Open Season will commence on Tuesday, May 2, 2023, at 10:00 a.m. Mountain Time (MT).

Bids are due by Monday, June 12, 2023 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 should be sent by email to ab_ft_openseason@tcenergy.com prior to the deadline shown above. 

As outlined in the Capacity Allocation Procedures to the Foothills Tariff, Foothills will evaluate bids solely based on the requested term length. The minimum term for Expansion Capacity is 10 years; however, Company will only consider a contract term of 15 years or more (consisting of 5 years Primary Term with the remaining term deemed to be Secondary Term) to align with other recent Expansion Capacity contract term lengths. The Requested Service Termination Date entered in the Existing Capacity / Expansion Capacity Bid Form must be the last day of a month.

Prospective Shippers may submit more than one bid. 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 to the Foothills Tariff.

Prospective Shippers will be required to meet the deposit requirement outlined in the Capacity Allocation Procedures to the Foothills Tariff.

Awarding Expansion Capacity:

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 Maximum Day Delivery Quantity and term.

Foothills will notify successful bidders in accordance with the Capacity Allocation Procedures to the Foothills Tariff. Upon receipt of the PA and Service Agreement, successful bidders will have 10 Banking Days, to return executed documents and to satisfy Financial Assurance requirements. The amount of Financial Assurance that Foothills 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.

For more information, please contact your Marketing Representative.