The CNYOG system is comprised of the MARC I Pipeline, the North-South Lateral and Stagecoach Storage. Together, these interconnected facilities span the core of the Northeast Pennsylvania Marcellus dry gas formation, connecting producers, end-users and marketers with major gathering systems, high-deliverability storage and major third-party transmission lines, including Tennessee Gas Pipeline (300 Line), Transcontinental Gas Pipe Line (Leidy Line) and Millennium Pipeline. Over 1.4 Bcf per day currently moves across the CNYOG system, including 1.2 Bcf per day of production receipts directly connected to CNYOG’s North-South Lateral and MARC I Pipeline.
The MARC II Pipeline will be a new 30-mile, 30” pipeline connecting the CNYOG MARC I Pipeline with the PennEast Pipeline and Transco’s Leidy Line.
The CNYOG system is comprised of the MARC I Pipeline, the North-South Lateral and Stagecoach Storage. Together, these interconnected facilities span the core of the Northeast Pennsylvania Marcellus dry gas formation, connecting producers, end-users and marketers with major gathering systems, high-deliverability storage and major third-party transmission lines, including Tennessee Gas Pipeline (300 Line), Transcontinental Gas Pipe Line (Leidy Line) and Millennium Pipeline. Over 1.4 Bcf per day currently moves across the CNYOG system, including 1.2 Bcf per day of production receipts directly connected to CNYOG’s North-South Lateral and MARC I Pipeline.
The MARC II Pipeline will be a new 30-mile, 30” pipeline connecting the CNYOG MARC I Pipeline with the PennEast Pipeline and Transco’s Leidy Line.
The CNYOG system is comprised of the MARC I Pipeline, the North-South Lateral and Stagecoach Storage. Together, these interconnected facilities span the core of the Northeast Pennsylvania Marcellus dry gas formation, connecting producers, end-users and marketers with major gathering systems, high-deliverability storage and major third-party transmission lines, including Tennessee Gas Pipeline (300 Line), Transcontinental Gas Pipe Line (Leidy Line) and Millennium Pipeline. Over 1.4 Bcf per day currently moves across the CNYOG system, including 1.2 Bcf per day of production receipts directly connected to CNYOG’s North-South Lateral and MARC I Pipeline.
The MARC II Pipeline will be a new 30-mile, 30” pipeline connecting the CNYOG MARC I Pipeline with the PennEast Pipeline and Transco’s Leidy Line.
Central New York Oil & Gas Company, LLC (CNYOG), a wholly-owned subsidiary of Crestwood Midstream Partners, LP (CMLP) is holding a non-binding Open Season and soliciting non-binding bids for firm transportation service on the proposed MARC II Pipeline. The MARC II Pipeline will be a new, 30-mile, 30 pipeline designed to provide 1 Bcf per day of firm transportation from existing receipt points on the CNYOG system for delivery to interconnects with the proposed PennEast Pipeline and the Transco Leidy Line in Luzerne County, Pennsylvania.
The MARC II Pipeline:
The CNYOG system is comprised of the MARC I Pipeline, the North-South Lateral and Stagecoach Storage. Together, these interconnected facilities span the core of the Northeast Pennsylvania Marcellus dry gas formation, connecting producers, end-users and marketers with major gathering systems, high-deliverability storage and major third-party transmission lines, including Tennessee Gas Pipeline (300 Line), Transcontinental Gas Pipe Line (Leidy Line) and Millennium Pipeline. Over 1.4 Bcf per day currently moves across the CNYOG system, including 1.2 Bcf per day of production receipts directly connected to CNYOGs North-South Lateral and MARC I Pipeline.
The MARC II Pipeline will be a new 30-mile, 30 pipeline connecting the CNYOG MARC I Pipeline with the PennEast Pipeline and Transcos Leidy Line. MARC II will connect the abundant supplies of natural gas directly connected to the existing CNYOG system with major regional end-user markets downstream of existing transportation bottlenecks, providing reliable, cost-competitive supplies of natural gas to consumers in the Mid-Atlantic and New England markets.
Crestwood anticipates filing an Application for a Certificate of Public Convenience and Necessity under Section 7c of the Natural Gas Act with the Federal Energy Regulatory Commission (FERC) in Q2-15, with a planned in-service date in Q4-17.
3
MARC II FTS-2 Service: Firm transportation service on the MARC II Pipeline will be provided under the CNYOG Tariff FTS-2 rate schedule. Maximum recourse rates for FTS-2 Service are as follows:
Monthly FTS-2 Reservation Rate Max Recourse Rate Units MARC I (only) $7.8232 $/dth of MDFTQ North/South Lateral & MARC I $12.2332 $/dth of MDFTQ
FTS-2 Commodity Rate MARC I (only) $0.0029 $/dth North/South Lateral & MARC I $0.0045 $/dth
FTS-2 Overrun Commodity Rate MARC I (only) $0.2601 $/dth North/South Lateral & MARC I $0.4067 $/dth
Fuel Charge $/dth Use/loss MARC I (only) $0.0260 0.42% North/South Lateral & MARC I $0.0698 0.52%
CNYOG will consider bids for discounted reservation rates. Fuel and commodity charges will be incurred at the maximum recourse rate.
CNYOG is soliciting shipper interest in all points on the North-South Lateral and MARC I Pipeline, including Stagecoach Storage, Angelina Gathering receipt points (Fields, Bellino and Neiley), Access Midstream receipt points (Stagecoach Junction, Cherry Road, and the proposed Wilmot point), as well as Tennessee Gas Pipeline (TGP). Available delivery points will include the PennEast Pipeline receipt point in Luzerne County, Pennsylvania and the Transco Leidy Line in Luzerne County, Pennsylvania. CNYOG will consider bids with a minimum term commitment of 10 years.
Under a MARC II FTS-2 service agreement, Shippers will make a single nomination from the primary receipt point to the primary delivery point. Shippers will have secondary rights at all points in-path. Secondary points out-of-path will be charged the maximum tariff rate.
4
CNYOG System Map
Open Season Dates:
The Open Season will commence when posted on CNYOGs website at www.stagecoachstorage.com and extend until 4:00 p.m. on Wednesday, October 15th, 2014.
Bids are non-binding on requesting shippers. This solicitation is not an offer. CNYOG shall not be deemed to have accepted any bid until the parties have executed binding Precedent Agreements incorporating firm service agreements reflecting the capacity awarded. CNYOG may extend, modify, or terminate this open season or waive any provision of the open season at any time by notice.
PennEast Transco MARC II (Proposed)
5
Parties who wish to participate or desire additional information concerning this notice and prearranged Open Season should contact the following:
Edmund Knolle Vice President, Business Development Direct: (832) 519-2282 Mobile: (713) 818-2195 Edmund.Knolle@crestwoodlp.com Tracy Halleck Director, Northeast Marketing Direct: (713) 380-3024 Mobile: (281) 352-6280 Tracy.Halleck@crestwoodlp.com