Market Area Segmentation 2011/H... · 2017-05-17 · On November 1, 2014, Texas Eastern shifted...

LINK® System Customer Interface

Market Area Segmentation

1

LINK® System Customer Interface Agenda

• Key Terms

• Flow Location Concepts

• Flexing

• Overlapping

• Scheduling Priorities

• Laterals

• Capacity Release

2

Segmentation Concepts

LINK® System Customer Interface Segmentation Concepts

Background:

On February 9, 2000, the Federal Energy Regulatory Commission (FERC) issued Order 637

which, among other things, required Interstate Natural Gas Pipelines to allow segmentation on

their systems in the Market Area.

• Legacy Contracts (prior to November 1, 2014) – The “access area zones” are validated at a

shipper level and the “market area zone” are validated at the contract level.

On November 1, 2014, Texas Eastern shifted from the traditional South-North movement to bi-

directional movement. For contracts after this date contemporary segmentation rules apply.

• Contemporary Contracts (effective November 1, 2014) - Segmentation rules used in the

“Market Area” for Legacy contracts were applied across the Access Area. This includes flow

locations in the Access Area, a segmented MDQ validation and multi-contract overlap

validation.

3


4


What is Segmentation?

• Segmentation is a “chopping up” or “segmenting” of your

firm capacity.

• Segmentation can be achieved through Capacity Release

or through Nominations.

5

LINK® System Customer Interface Key Terms

• Contract Path

– The most upstream point (or segment) to the most downstream point (or segment) specified in their contract.

• Maximum Daily Receipt Obligation (MDRO)

– The maximum quantity that the pipeline is obligated to receive at a specific receipt point listed on a Customer’s firm contract on any day on a primary basis.

• Maximum Daily Delivery Obligation (MDDO)

– The maximum quantity that the pipeline is obligated to deliver at a specific delivery point listed on a customer’s firm contract, on any day, on a primary basis.

• Maximum Daily Quantity (MDQ)

– The maximum quantity that the customer is allowed to transport across any segment on pipeline on a given day as specified in the customer’s firm contract. Also known as MDTQ (Maximum Daily Transportation Quantity on pipelines other than TETLP)

6

LINK® System Customer Interface Flow Location Concept

7

• Flow Point Locations – Physical locations in the market area such as receipt points, delivery points, zone

boundary entry/exits, and accounting points.

• Segments – Defined from one Flow Point Location to the next immediately downstream location.

• Flow Point Entitlement rights – Assigned to each Flow Point Location and associated segment in order to specify the

amount of gas a customer has the right to flow through (but not deliver gas to) the

location.

• The Flow Point Entitlement could be different than the MDRO or MDDO the customer has at the

underlying point.

– For deliveries, the entitlement for the segment immediately upstream of the delivery

point is used for entitlement determination.

– For receipts, the entitlement for the segment immediately downstream of the receipt

point is used for entitlement determination.

Receipt Delivery

LINK® System Customer Interface Flow Location Concept - Interactive

Segment

Flow Point

Locations

8

MDRO

20,000

MDDO

5,000

MDDO

15,000

No MDRO

or MDDO

20,000 15,000 20,000

Flow Point

Entitlement rights

LINK® System Customer Interface Entitlements and Transportation Rights Screen

• Primary screen to understand contractual entitlements.

– Filters

• Filters are available at multiple levels to refine information selected.

• Displays entitlements at a contractual or shipper level.

– Segment Information

• Provides segment entitlements, MDRO and MDDO information by location

• Provides original and net entitlements.

– Net entitlements are original entitlements less Capacity Release awards.

– MDQ Information

• Provides Contract MDQ information, Zone Limit (TETLP only), and Nom totals

per zone (TETLP only)

– Related Screens

• Entitlement information can be displayed visually using a related pipeline map or

downloaded to a spreadsheet for further processing.

9

LINK® System Customer Interface Entitlements and Transportation Rights Screen

10

Filters

MDQ Information Segment Information


11

Entitlements and Transportation Rights - Form

Filter between the 24” and 30” lines. (TETLP only)

Allows filtering by Lateral Type:

Blank: all segments

N/A: mainline points only

INC: incremental laterals only

(must have specific lateral rate schedule)

NON: non-incremental laterals only

Retrieves entitlements at a contract level.

Retrieves entitlements at a shipper level. Retrieve specific pipeline rate

zone (TETLP only)

Retrieves entitlements for particular date

Allows filtering of information by engineering pipeline section.


12

Entitlements and Transportation Rights - Form

Allows filtering by location type

All: All points

Segments Only: displays locations that

are flow location segments

MDRO/MDDO Only: displays locations

that have firm receipt or delivery entitlements

Indication that states if contract is a Displacement Contract (TETLP only)

Used in conjunction with Svc Req Name to view either: Forwardhaul K or Backhaul K with South to North Flow and/or North to South Flow entitlements

Maximum Daily Quantity

information for the contract

MDQs associated with each Market Area rate zone (TETLP only)

Nomination totals

for the selected

date by zone

(TETLP only)

LINK® System Customer Interface Entitlements and Transportation Rights – Grid

The alphanumeric identifier associated with the segment.

Identifies whether the segment is on the mainline (N/A), an incremental lateral (INC) or non-incremental lateral (NON).

The rate zone the segment is present in. (TETLP only)

Identifies whether the segment is located on the 24” or 30” pipeline. (TETLP only)

Identifies the engineering pipeline section where the segment is located.

Name of the segment.

The entitlement qty assigned to the segment before any Capacity Releases are considered.

The entitlement qty remaining for the segment after awarded Capacity Releases are considered.

The Maximum Daily Receipt Obligation remaining after awarded Capacity Releases are considered

The original Maximum Daily Receipt Obligations associated with the segment location.

Indicates the direction of flow of the entitlements.

Miles away from the end of the pipeline at meter 70058.

13

LINK® System Customer Interface Entitlements and Transportation Rights – Grid

The net Maximum

Daily Delivery

Obligation

associated with the

delivery location.

The original

Maximum Daily

Delivery

Obligation

associated with

the segment

location.

Priority percentage

used to determine

which customer

receives cuts during

multi-contract overlap

(capacity release)

Identifies

whether the

segment is a

flow location

segment.

The logical

order of flow

locations as

defined to

the system.

Original firm Section

14.9 Capacity

Entitlements

associated with the

segment location.

(TETLP only)

The net Firm Section

14.9 Capacity

Entitlements associated

with the segment

location. (TETLP only)

The original

Aggregate

Maximum Daily

Delivery Obligation

before any capacity

releases.

(TETLP only)

The net Aggregate

Maximum Daily Delivery

Obligation shows the

remaining releasable

portion of AMDDO.

(TETLP only)

The net Aggregate

Maximum Daily

Delivery Obligation

associated with the

delivery location.

Quantity of AMDDO

against which

nominations are

validated.

(TETLP only)

Identifies the difference of

the segments upstream

and downstream of the

MDDO location.

(TETLP only)

Identifies the

difference of

the segments

upstream and

downstream of

the MDRO

location.

(TETLP only)

14

LINK® System Customer Interface Geographical Entitlements Map

15

• For a graphical view of

entitlements go to Related

Screens and select “Map

Geographic.”

• Some Map Features

include:

1. Enter an ID to highlight

and zoom into

segment/location

2. View segment/location

in detail (scrolling in)

1.

2.

LINK® System Customer Interface Entitlements Map

16

• Our original map can be

displayed by clicking on the

Related Screens dropdown

in top left corner and

choosing “SchematicMap.”

• The screen can be

magnified by clicking on

the right mouse button and

choosing Zoom In.

• The user can move around

the map by holding down

the “Alt key” and dragging

the mouse.

LINK® System Customer Interface Summary Entitlement Map

• From the Entitlements and

Transportation Rights screen, a

button in the top right, “Summary

Map” can be selected to retrieve a

map of the Service Requester’s

contract which is summarized at a

high level.

• The summary map will display:

– Zonal MDQ

– Entry/Exits

– High/Low Segments

– Firm Location Points

17

LINK® System Customer Interface Flexing

• A customers’ contract path is the most upstream point (or segment) to

the most downstream point (or segment) specified in their contract.

– The flow direction is also defined by the contract.

• A customer can receive or deliver gas in the Market Area outside of their contract path, but within a zone that has contract entitlements, through a process called flexing.

– A customer can flex upstream or downstream within a zone, or between zones, where they have segment entitlement rights.

18

LINK® System Customer Interface Flexing – Interactive

AA M1 M2 M3

PR PD

Forward Haul Contract

19

LINK® System Customer Interface Overlapping

• Nominations can be made multiple times that cross the same segments as long as the nominations do not overlap in excess of MDQ in any one segment.

• On a segmentable contract, customers are allowed to deliver in excess of their MDQ at a mainline point using a forward haul and backhaul nomination.

– A forward haul and a backhaul across the same segment of a contract are additive for determining overlap MDQ.

• MDQ validations are performed on-line at a contract level based on nomination entry.

– Priority will not be considered at this point in the validation process.

20

LINK® System Customer Interface Overlapping – Interactive

AA M1 M2 M3

PR PD


21

10,000

Nom #1

Nom #2

Nom #1

Nom #2

Nom #1

Nom #2

Nom #3

Nom #1

Nom #2

Nom #1

Nom #2

Ex. 1

Ex. 2

Ex. 3

Ex. 4

Ex. 5

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

8,000

0

2,000

Both Noms are valid

Nom #2 is invalid due to

overlap with Nom #1.

All Noms are valid

Both Noms are valid

Nom #2 is invalid due to

overlap with Nom #1.


5.

4.

3. 2. 1.

Terminology Recap AA M1 M2 M3

PR PD

22

10,000

10,000

10,000

10,000 0

Flexing

Overlapping

10,000

Segment

Flow Point

Location

Flow Point

Entitlement right

LINK® System Customer Interface Batch Processing Routine

• When customers submit nominations, only the requested volumes are updated. Scheduled volumes will remain zero until the nominations are validated.

• For the Timely Cycle, nominations will be validated at 1:35 PM for the next gas day.

– Customers will be locked out from updating timely nominations at 1:00 PM.

• For Late/Intraday nominations, nominations will be evaluated at the next nomination batch job.

– The exception is for Late nominations after the Timely cycle. The batch run for those nominations will not execute until at least 3:00 PM to allow the pipeline to be scheduled for the next gas day.

• During the validation process customers will be locked out of contracts for the gas day being processed until their contract has been validated. Five minutes prior to being locked out, the clock in the upper right hand corner will change to orange and it will count down 5 minutes before turning to red which indicates the batch job is running.

23


• The batch validation process will:

– Apply confirmation cuts to nominations

– Validate contract MDQ

– Generate Scheduling Priorities

– Validate contract MDQ for Capacity Release and make needed reductions

– Force Balance nominations

– Enforce Capacity Restrictions

– Schedule nominations

– In the case of late or intraday nominations, the job will auto-reject nominations that are over 4 hours old and have not been confirmed by meter operators, or do not match corresponding nominations at a balancing point.

• Where nominations are reduced, the information is available in the Shipper and Operator Reduction Results screen.

24


Nomination

Validation of

Contract

On-line

Customer

Nom Accepted Nom Confirmed

Hourly

Restriction

Scheduling

Queue

No

m In

va

lid o

r

No

t Co

nfirm

ed

Confirmation

Queue

Batch Validation

Queue

Up to 4 hours

25

LINK® System Customer Interface Scheduling Priorities - TETLP

• When a customer makes a nomination on a firm contract, LINK® will determine its relation to the contract path and assign a scheduling priority of 1-4.

– The utilization of entitlements is determined by delivery rankings and time of entry. If two nominations have the same delivery ranking, time of entry will determine utilization.

– Backhaul nominations on a Forwardhaul contract will always be assigned a priority of 4.

– The scheduling priority will also be used in Capacity Release as one method to determine issues of MDQ overlap. (discussed later)

• The scheduling program will use the priority to determine which nominations should be reduced in the event of a restriction if reductions must be performed in excess of interruptible transportation schedules. The priority will override user rankings unless nominations are of the same scheduling priority.

– Where priorities are the same on a contract, nominations will be cut by user rankings. If user rankings are the same, nominations will be cut pro-rata

– Additional nominations submitted after the timely scheduling run will be processed in the hourly batch jobs. The hourly batch job will prevent new nominations from being scheduled that exceed operational capacity due to a meter limit or throughput restriction.

26

LINK® System Customer Interface Scheduling Priorities (TETLP)

DELIVERY

RE

CE

IPT

1 = Highest Priority

4 = Lowest Priority

PD SWIP SOP

PR 1 3 4

SWIP 2 3 4

SOP 4 4 4

PR = Primary Receipt

PD = Primary Delivery

SWIP = Secondary Within Path

SOP = Secondary Out of Path

* Note that adequate segment entitlements must be present along the entire nomination path to receive throughput priority 1, 2 or 3. 27

LINK® System Customer Interface Scheduling Priorities (TETLP) – Interactive

AA M1 M2 M3

MDRO

10,000 MDDO

10,000


28

10,000

Ex. 1

Ex. 2

Ex. 3

Ex. 4

Ex. 5

10,000

10,000

10,000

10,000

10,000

PR-PD (1)

SWIP-PD (2)

PR-SWIP (3)

SWIP-SWIP (3)

SWIP-SOP (4)

Ex. 6

10,000

Backhaul (4)


AA

Nom 1 5,000

Nom 2 1,000

Nom 3 3,000

PR-PD (1) – 5,000

PR-SWIP (3) – 1,000

PR-PD (1) – 2,000

M1 M2 M3

MDRO

10,000 MDDO

3,000

Forward Haul Contract 10,000

MDDO

5,000

MDDO

2,000

5,000 3,000

5,000

5,000 0

4,000

4,000

3,000

4,000 2,000

SWIP-SOOP (4)

3,000

0

Backhaul (4) – 1,000 1,000

Nom 4

0

4,000 Nom 5

0

PR-SWIP (3) – 2,000

0 0

29


AA

30

Nom 1 999

10:15 am

Nom 2 999

10:16 am

5,000

3,000

2,000

M1 M2 M3

PR

10,000


PD

5,000

PD

2,000

5,000

Time Entered Del Rank

Nom 3 999

10:17 am

5,000

5,000 0 0 2,000

2,000

0 0

PR-SOOP (4)

PR-SOOP (4) – Because

segment entitlements were

utilized by Nom 1

PR-SOOP (4) – Because segment entitlements

were utilized by Nom 1 and Nom 2

PD

3,000

0

0

3,000


AA

31

Nom 1 3

10:15 am

Nom 2 2

10:16 am

5,000

3,000

2,000

M1 M2 M3

PR

10,000 PD

3,000


PD

5,000

PD

2,000

5,000

Time Entered Del Rank

Nom 3 1

10:17 am

8,000

PR-SOOP (4)

PR-PD (1)

8,000

PR-PD (1)

3,000 0 5,000

5,000 0 0

0 0

0

3,000


AA

32

M1 M2 M3

Priority 4A

Restriction within

contract path

Priority 4B

Restriction outside

contract path

TABS

TABS

TABS

Ex. 3

TABS

Restriction

Restriction

Restriction

Restriction

Ex. 4

Ex. 2

Ex. 1

• A nomination that has been designated as a priority 4 can be reclassified as a 4A or 4B if a restriction is present.

– The A indicates the point of restriction is within the path of the contract.

– The B indicates the point of restriction is outside the path of the contract.

• In many cases on Texas Eastern, firm customers nominate from secondary receipt points (such as TABS pools) to their firm delivery points and as such the nominations are ranked Priority #2.

– However, if a scheduling restriction occurs in a downstream rate zone from the receipt point, the priority will be increased to a Priority #1 for scheduling purposes.

Contract Path

PD

AA M1 M2 M3 Contract Path

PD

Priority 1 – Reclassified from Priority 2

Restriction occurs in downstream rate zone

Priority 2 – Not reclassified

Restriction occurs in same rate zone

M1

ETX

M2 M3

ELA

2000 2000

5500

4000

Leb

5500

MDDO

5500

2000

4000

5500

STX

5500

Priority Upstream of Berne

Scheduling Priorities – TETLP - Interactive

Nom

5500 ELA-MDDO

WLA

33

4000

0

0

Priority Downstream of Berne

P2 – 4000; P4 – 1500

P2 - 5500

• On Texas Eastern, customer will be provided with two priorities for the same nomination.

– The first priority is for restrictions that occur upstream of Berne based on entitlements being un-collapsed.

– The second priority is for restrictions that occur downstream of Berne based on entitlements being collapsed.

6000 6000 6000 5500 Loggy

500 Berne

Throughput Scheduling Priorities - AGT Differences

DELIVERY

RE

CE

IPT

1: Highest Priority

3: Lowest Priority

PR: Primary Receipt

PD: Primary Delivery

SWIP: Secondary Within Path

SOOP: Secondary Out Of Path

* Note that adequate segment entitlements must be present along the entire nomination path to receive throughput priority 1 or 2. 34

Throughput Scheduling Priorities - M&N US Differences

DELIVERY

RE

CE

IPT

1: Highest Priority

3: Lowest Priority

PR: Primary Receipt

PD: Primary Delivery

SWICP: Secondary Within Contract Path

SOOCP: Secondary Outside Of Contract Path

* Note that adequate segment entitlements must be present along the entire nomination path to receive throughput priority 1 or 2. 35

LINK® System Customer Interface Market Area Impacts from Access Area (STX)

• Nominations originating in South Texas use East Texas (ETXXF) and East LA (ELAXF) exit entitlements to determine the percentage of gas that will be logically routed down each pipe.

– Once East Texas (ETXXF) entitlements are utilized, gas will be logically routed down Loggy Bayou onto the 30 inch line until those entitlements (ETX3) are expended.

• The system defaults to percentages based on ETXXF and ELAXF entitlements unless customers override this in LINK® STX Split and Loggy Bayou Utilization Screens. These defaults were selected because they typically provides the highest priority potential based on contractual entitlements between the 24” and 30” on unreleased original pre-636 long-haul contracts.

– These calculations were determined based on a review of contract rights during our FERC Order 637 implementation effort.

36


Nomination Split Routing Screen

37

• The Nomination Split Routing screen is where a user can adjust the path percentage assigned to a nomination

originating in STX.

• In the nomination screen, retrieve contract with STX supply and place the cursor on that line of data, click on

the related screens dropdown and choose “Nomination Split Routing.”

• To display the screen as shown click on the new button in the top right corner of the screen.

M1

ETX

M2 M3

ELA

900 900

5100

Leb

6000

MDDO

6000

900

Loggy

500

5100

6000

STX

5100

STX Split – TETLP - Interactive

WLA

38

5100

Priority Downstream of Berne: P2-6000

Priority Upstream of Berne: P2-6000

Berne

900 6000

900

ETX Exit (ETXXF): 900 24” Split: 900/6000 = 0.15

ELA Exit (ELAXF): 5100 30” Split: 5100/6000 = 0.85

Total: 6000

• LINK® uses Access Area exits to calculate a percentage to logically route volumes between the 24” and 30”.

0 0

5100 5100

5100

0 0

0 0

0

Nom (STX-MDDO): 6000

24” Split: 6000*0.15 = 900

30” Split: 6000*0.85 = 5100

0

0

M1

ETX

M2 M3

ELA

900 900

5100

Leb

6000

MDDO

6000

900

Loggy

500

5100

6000

STX

3400

STX Split – TETLP - Interactive

WLA

39

5100


Priority Upstream of Berne: P2-3400 and P4-600

Berne

600 4000

600

ETX Exit (ETXXF): 900 24” Split: 900/6000 = 0.15

ELA Exit (ELAXF): 5100 30” Split: 5100/6000 = 0.85

Total: 6000

• A capacity release is performed and reduces entitlements from Lebanon to Berne from 900 to 0


24” Split: 4000*0.15 = 600

30” Split: 4000*0.85 = 3400

300 300

5400 5400

5400

1700 1700

2000

2000

2000

300

1700

M1

ETX

M2 M3

ELA

900 900

5100

Leb

6000

MDDO

6000

900

Loggy

500

5100

6000

STX

4000

STX Split (Modified) – TETLP - Interactive

WLA

40

5100


Priority Upstream of Berne: P2-4000

Berne 4000

ETX Exit (ETXXF): 900 24” Split: 900/6000 = 0.15 Modified to 0.00

ELA Exit (ELAXF): 5100 30” Split: 5100/6000 = 0.85 Modified to 1.00

Total: 6000

• A capacity release is performed and reduces entitlements from Lebanon to Berne from 900 to 0. Instead of keeping the default we are going to modify the STX Split.


24” Split: 4000*0.00 = 0

30” Split: 4000*1.00 = 4000

1100 1100

2000

2000

2000

1100


Tips for mapping out entitlements and analyzing

associated nominations to determine priorities.

• Mapping Method 1:

– Draw a picture of the pipeline and note key information such as those related to point, segment and zone boundary entries/exits.

– Record segment entitlements on the picture where they decrease in value to focus on entitlement changes.

– Determine logical routing of gas based on system default calculations between the access and market areas.

– Path nominations down the model to determine scheduling priority. Decrement entitlements after each nomination.

– Utilize on-line entitlements map for assistance.

41


Tips for mapping out entitlements and analyzing

associated nominations to determine priorities.

• Mapping Method 2:

– From the entitlement and transportation rights screen, extract entitlements into a spreadsheet.

– Determine logical routing of gas based on system default calculations between the access and market areas.

– Path nominations down the model to determine scheduling priority.

– Create a column for each nomination in order to decrement entitlements after each nomination.

– Pull data first on the mainline, then any laterals you wish to evaluate.

42


Laterals

43

LINK® System Customer Interface Laterals - TETLP

• Segmentation rules that apply to incremental and non-incremental market area

laterals:

– Overlaps of MDQ are not allowed.

• Aggregate deliveries at an “HL” point plus aggregate transport through that same

point cannot exceed MDQ.

• Aggregate receipts at an “HL” point plus aggregate transport through the same point

cannot exceed MDQ.

• Aggregate transport across an “HL” segment cannot exceed MDQ.

– A forward haul and backhaul in excess of MDQ to the same lateral point

constitutes an overlap and is not allowed.

• Note: A flow location is present at the mainline head of the lateral (HL) and at the

lateral head of lateral.

44

LINK® System Customer Interface Laterals – TETLP – Priority Examples

Ex. 1

Ex. 2

Ex. 3

Ex.4

Ex.5

Ex. 6

10,000

10

,00

0

45

MDRO

10,000

MDDO

10,000

10,000 10,000

10

,00

0

10,000

0

10,000

10,000 10,000

10,000

10

,00

0

0

0

10,000

10,000

10

,00

0

10,000 1

0,0

00

LINK® System Customer Interface Laterals – TETLP – Priority Examples

Ex. 1

Ex. 2

Ex. 3A

Ex. 3B

Ex. 4

10,000

10,000

10,000

5,000

5,000

5,000

5,0

00

P1-5000; P4-5000

P1-5000; P4-5000

P1-5000

P1-5000

P2-5000; P4-5000

46

MDRO

10,000

MDDO

5,000

MDDO

5,000

5,0

00

1

0,0

00

1

0,0

00

47

Capacity Release

LINK® System Customer Interface Capacity Release Concepts

Releasing Contract

• Releasing contract refers to the contract that is releasing a portion of its entitlements to

another party.

• After the release, the releasing contract’s entitlements in the LINK® system will be revised to

reflect the impact of the capacity release and will remain revised for the duration of the

release.

Replacement Contract

• When the holder of a contract releases a portion of its contract to another party, that party

receives a new contract for its portion which is referred to as a replacement contract.

• A replacement contract holder can “flex” in the same way as a holder of a releasing or

original contract can.

48

LINK® System Customer Interface Capacity Release Rules – Segmentation

• The total of all nominations under all related releasing and replacement contracts cannot overlap in excess of the MDQ of the original contract in any segment.

• When there are overlapping nominations in excess of the MDQ of the original contract, the nominations will be reduced in the order of scheduling priority.

• For nominations with the same scheduling priority, the reduction will be determined using a parameter called “Overlap Priority Percentage”.

– The releasing customer can grant an Overlap Priority Percentage of 0-100%. However, the combination of the releasing and replacement priority for a given segment cannot exceed 100%.

– Different overlap priority percentages can be applied to different segments released.

– A releasing customer can assign all their segment entitlements, but retain a 100% Overlap Priority Percentage on each segment.

49

Capacity Release Segmentation

• An original contract holder can release a portion of their

path that includes one or more Flow Point location

segments.

MDRO=10,000 MDDO=10,000

10,000 10,000 10,000 Original

Contract

Path

A B C D

Replacement

Contract

0 10,000 A B C D 0

50

MDRO=10,000 MDDO=10,000

10,000 0 10,000 Revised

Original

Contract

A B C D

C

Original K

Cust. A

10,000 Customer A

Nomination

10,000 Customer B

Nomination

P4

P4

The overlap occurs where Customer (A) has 100% priority over replacement Customer B.

Customer B is cut because of the overlap on a timely basis.

Capacity Release – Example 1

Rev. Original K

Cust. A

Release K

Cust. B

10,000 (Priority 100%) 10,000 (Priority 100%)

B

0

51

A

10,000 (Priority 100%)

D

10,000 (Priority 100%) 0 (Priority 0%)

D B A C

0 (Priority 0%)

10,000 (Priority 100%) 0 (Priority 0%)

D B A C

10,000 (Priority 100%)

Customer A

Nomination

Customer B

Nomination

10,000 P4

B C

C D

Rev. Release K

Cust. B

Release K

Cust. C

10,000 (Priority 100%)

10,000 (Priority 100%)

10,000 P4

P4 10,000 Customer C

Nomination

Assuming all nominations are in the same batch validation process, the most upstream

overlap is validated first.


0 (Priority 0%) 0 (Priority 0%)


A

A B

D

0

5,000

5,000

52

A B

Rev. Original K

Cust. A

10,000 (Priority 100%) 0 (Priority 0%) 0 (Priority 0%)

C D

10,000 Customer A

Nomination

Customer B

Nomination

P4

10,000 P3

P4 10,000

Customer C

Nomination


0

0

Assuming all nominations are in the same batch validation process, the most upstream

overlap is validated first.

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B C

C D

Rev. Release K

Cust. B

Release K

Cust. C

10,000 (Priority 100%)



A

A B

D

A B

Rev. Original K

Cust. A


C D

Customer A

Nomination

Customer B

Nomination

Customer A chooses not to Nom

10,000 P4

P4 10,000

Customer C

Nomination


4,000

6,000

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B C

C D

Rev. Release K

Cust. B

Release K

Cust. C

10,000 (Priority 100%)



A

A B

D

A B

Rev. Original K

Cust. A


C D

Assuming all nominations are in the same batch validation process, the most upstream overlap is validated first.

- If both Noms processed in the Timely batch job: Customer B’s remaining nomination would be reduced to 6,000

(10,000 x 0.60) and Customer C’s nomination would be reduced to 4,000 (10,000 x 0.40).

- Noms not processed in same batch: whichever Customer’s nomination is scheduled first will be kept whole while the

other Customer’s nomination will be reduced to 0. (cannot bump once a nom is scheduled on a firm contract)

LINK® System Customer Interface Capacity Release – Comments

• Please note that the reduction results screen will communicate a reduction due to Capacity Release Overlap with the reason code “QER” and the description “Exceeded MDQ of Assoc Contr.”

• A separate screen is present for internal personnel that provides information about the contracts involved in an overlap and the associated reductions.

• However, Account Managers cannot disclose information about one customer’s contracts and associated nominations to another customer. An Account Manager can only verify the LINK® system managed the overlap appropriately.

• Tips for reducing the risk of overlap reductions include:

– Nominating timely.

– Nominating within contract path.

– Retaining 100% overlap priority as the releasing customer.

– Obtaining 100% overlap priority as the replacement customer.

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LINK® System Customer Interface Recap (TETLP)

• When nominating on a firm contract, LINK® will determine its relation to the contract path and assign a scheduling priority of 1-4.

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• A Priority 4 nomination can be further classified as a 4A or 4B.

– 4A: point of restriction is within the path of the contract.

– 4B: point of restriction is outside the path of the contract.

• A Priority 2 nomination can be upgraded to a Priority 1 (for scheduling purposes) if a

restriction occurs in a downstream rate zone from the receipt point.

• On TETLP, customer will be provided with two priorities for the same nomination.

– The first priority is for restrictions that occur upstream of Berne (un-collapsed).

– The second priority is for restrictions that occur downstream of Berne (collapsed).

• Lateral - aggregate deliveries/receipts at an “HL” point plus aggregate transport through that

same point cannot exceed MDQ.

• Capacity Release - total of all nominations under all related releasing and replacement contracts cannot overlap in excess of the MDQ of the original contract in any segment.

– Where overlapping occurs, the nominations will be reduced by: • Scheduling priority -> Overlap Priority Percentage -> Pro-rata

LINK® System Customer Interface TETLP Tariff References

General Terms and Conditions

• 30.1 (a) – Sheet #646 - Right to segment capacity

• 30.1 (b) – Sheet #646 - Overlapping rule for forward haul and

backhaul delivering to a point.

• 30.1 (c) – Sheet #646 - Capacity Release overlap in excess of

original contract MDQ.

• 31.4 (D) 1 (n) – Sheet #533 - Capacity Release posting – elements of

release – overlap percentage

57 August, 2013

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