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< -----Original Message-----
< From: Ledene, Ben < Sent: Tuesday, April 17, 2001 11:42 AM < To: 'sgross@newportgen.com' < Subject: FW: Wild Goose Open Season Package < < Expansion Firm Base Load Storage ("BLS") Service Open Season < < Wild Goose Storage Inc. is planning to expand its facility located in < Butte County in northern California and connected to PG&E for service < commencing as early as April 1, 2003. This expansion could increase the < facility capacities as follows: < < Existing Capacity Capacity Following Expansion < Working Gas Volume 14 Bcf 38 < Bcf < Maximum Injection Rate 80 MMcfd 450 < MMcfd < Maximum Withdrawal Rate 200 MMcfd 650 MMcfd < < This open season provides for an in-service date commencing April 1, 2004 < and an opportunity to participate in an "early service option" which could < have service available by April 1, 2003. The in-service date is subject to < CPUC approval by September 1, 2002 and the successful completion of new < facility construction. < < Customer offers are required by 2:00 pm MST, Tuesday May 22, 2001 < < Customer offers must be reasonably open for acceptance by Wild Goose < Storage Inc. until 2:00 pm MST, Wednesday June 20, 2001 subject only to < significant changes in market conditions and final approval of customer's < management. Preference for offer acceptance will be toward longer-term < contracts (greater than 5 years) and offers, which exceed 100% of our rack < rate. The offer sheets are provided in Microsoft Excel and are set up to < calculate the percentage of rack rate for your convenience. It is the < intent of Wild Goose Storage Inc. to negotiate and conclude contracts with < the participants providing acceptable offers in this open season as close < as possible to June 20, 2001. Wild Goose will announce to all contracted < participants whether it will proceed with the expansion in early August < 2001. Wild Goose Storage Inc. reserves the right to not necessarily accept < the highest priced offer nor to award all or any of the storage capacity < available. < < A reasonable summary of the main terms and features of BLS service is < attached for your convenience (Attached File - BLS Summary), but should < not be used as the sole terms by which service is to be provided. All < service is subject to the Tariff Schedules for Natural Gas Storage Service < of Wild Goose Storage Inc., as approved by the Public Utilities Commission < of the State of California. < < For more information about Wild Goose Storage Inc. or to download a copy < of the entire tariff please refer to our web site at < www.wildgoose-storage.com. < < Customer offers must include the following: < < A) Completed Offer Forms (Attached File - Offer Sheets) for each period of < service including: < < * the amount of Inventory Capacity Required for each April to March < period during the term < * the amount of Maximum Daily Injection Quantity Required by month < during the term < * the amount of Maximum Daily Withdrawal Quantity Required by month < during the term < * the Total Storage Demand Charge for each April to March period < during the term < * the Injection Commodity Rate for each April to March period during < the term < * the Withdrawal Commodity Rate for each April to March period during < the term < * a signature from an authorized employee of the company verifying the < offer < < In the 'Offer Sheets' file attachment you will find the following tabs at < the bottom: < < * an offer sheet in Excel format < * a manual offer sheet which can be printed out and filled in by hand < * an example offer < < B) An executed Storage Services Agreement (Attached File - Storage < Services Agreement) unless your company already has one on file with Wild < Goose Storage Inc. < < Early Service Option < < Once Wild Goose Storage Inc. gives notice in early August 2001 to proceed < with the expansion, every effort will be made to complete construction as < early as possible. Notice will be given by November 1, 2002 if service < will be available earlier than April 1, 2004. All contracted participants < will have the right, but not the obligation, to amend their contracts to < the earlier term start date and add this additional service to their < existing contracts at the same fees negotiated for the first year of < service commencing April 1, 2004. < < Rack Rates < Our rates are 'market based' meaning they are fully negotiable, but our < 'rack rates' are as follows: < Monthly Storage Demand Charges < * Inventory($/Dth) $0.03 < * Injection ($/Dth/day) $3.00 < * Withdrawal ($/Dth/day) $2.00 < < Variable Charges < * Injection Commodity Rate ($/Dth) $0.02 < * Withdrawal Commodity Rate ($/Dth) $0.02 < < Fuel Charges < < In addition to the Demand and Variable charges described above, fuel costs < are also charged based on actual consumption by customer and the value of < the gas on a daily basis. Fuel consumption is expected to be between 1.25 < to 1.75%. For details, please refer to the Wild Goose tariff. < < If you have any questions about this matter or need hard copies, please < contact either Ben Ledene with Wild Goose in Calgary at (403) 266-8192 or < Chris Price and Mark Baldwin with Interstate Gas Services in California at < (925) 243-0350. < <<BLS Summary.doc<< <<Expansion Offer Sheet.xls<< <<Storage Services < Agreement.doc<< <<Wild Goose Expansion Open Season.doc<< - BLS Summary.doc - Expansion Offer Sheet.xls - Storage Services Agreement.doc - Wild Goose Expansion Open Season.doc
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