HomeMy WebLinkAbout2023-07-24 I01E_01 TFX Throughput Agreement AmendmentAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: July 24, 2023
AGENDA ITEM:Consideration of approval of a resolution approving Northern Natural Gas
Company Amendment to TFX Throughput Service Agreement
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON: Northern Natural Gas (NNG) held an open season on the
Des Moines Branch Line in May 2023 as excess capacity of 6,600 Dth/Day became available after the
completion of their A line abandonment project. Waukee submitted a bid to take the full amount
however so did another NNG customer. As a result of the open season bids, Waukee was awarded
half or 3,300 Dth/Day of incremental annual entitlement at NNG’s maximum tariff rates. This
amendment will allow Waukee to continue to provide additional natural gas volumes to customers as
demands increase with growth in the years to come. The firm daily quantity is increased by 3,300
Dth/Day at Town Border Station No. 2 annually beginning November 1, 2023.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: The City will pay NNG’s
maximum tariff rates on this increased volume per the Amendment. Any excess capacity of this
additional 3,300 Dth/Day not needed to meet Waukee’s daily demand will be resold at the daily
market pricing.
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Amendment to TFX Throughput Service agreement
PREPARED BY: Rudy Koester
REVIEWED BY: Rudy Koester RK
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
I1E1
THE CITY OF WAUKEE, IOWA
RESOLUTION 2023-
APPROVING NORTHERN NATURAL GAS COMPANY AMENDMENT 5
TO TFX THROUGHPUT SERVICE AGREEMENT
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the City of Waukee, Iowa is a duly organized municipality within Dallas County;
AND,
WHEREAS, Northern Natural Gas (NNG) held an open season on the Des Moines Branch Line
in May 2023 as excess capacity of 6,600 Dth/Day became available after the completion of their
A line abandonment project; AND,
WHEREAS, Waukee was awarded 3,300 Dth/Day of incremental annual entitlement at NNG’s
maximum tariff rates; AND,
WHEREAS,The firm daily quantity is increased by 3,300 Dth/Day at Town Border Station No. 2
annually beginning November 1, 2023; AND,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Waukee that the
Northern Natural Gas Company Amendment to TFX Throughput Service Agreement is hereby
approved.
Passed by the City Council of the City of Waukee, Iowa, and approved this the 24th day of July,
2023.
____________________________
Courtney Clarke, Mayor
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
Anna Bergman Pierce
R. Charles Bottenberg
Chris Crone
Larry R. Lyon
Ben Sinclair
Northern Natural Gas Company
Amendment to TFX Throughput Service Agreement
Date: 07/12/2023
Shipper Name: CITY OF WAUKEE
Contract No.: 113373 (Agreement)
Amendment No.: 5
WHE REAS, Shipper was awarded 3,300 Dth/day of incremental annual entitlement at Northern's maximum tariff rates
during the Des Moines Branch Line open season that closed May 23, 2023; and
WHE REAS, Shipper desires to add the new entitlement to this Agreement;
NOW THEREFORE, the Agreement is amended as follows:
1.The volume, term, and/or point provisions are amended as follows:
a.The firm maximum daily quantity of the Agreement is increased by 3,300 Dth/day annually beginning 11/01/2023.
b.In the event facilities are not completed by 11/01/2023 to serve the incremental entitlement in paragraph 1.a. above at
Waukee IA #2 TBS, Shipper will realign 3,300 Dth/day of capacity to another delivery point with available capacity effective
11/01/2023 until the facilities are completed at the Waukee IA #2 TBS.
c.The contract maximum daily quantities, primary receipt and delivery points, and terms are set forth on Appendices "A"
and "B."
d.The Appendices to the Agreement are deleted in their entirety and replaced with the Appendices "A" and "B" attached
hereto and incorporated herein by this reference. All references to Appendix "A" or Appendix "B" shall be deemed to refer to
the Appendices attached hereto.
2.Shipper shall pay Northern's maximum rates and charges plus all applicable surcharges in effect from time to time on the
incremental entitlement set forth in paragraph 1.a. above.
3.The parties agree that a facsimile or other electronic version of this document, when properly executed and transmitted,
shall be considered for all purposes to be an original document, and shall be deemed for all purposes to be signed and
constitute a binding agreement. The entire agreement must be faxed or transmitted to Northern. Upon Northern's acceptance
and execution, an executed copy will be returned via FAX to the number appearing on the faxed offer or such other number
as directed or otherwise electronically transmitted.
4.This Agreement, as amended, constitutes the entire agreement between the parties with respect to the subject matter of
this Agreement and shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors
and assigns. No promises, agreements or warranties additional to this Agreement other than as may be contained in
Northern's FERC Gas Tariff will be deemed to be a part of this Agreement nor will any alteration, amendment or
modification be effective unless confirmed in writing by the parties.
The effective date of this Amendment is 11/01/2023.
Except as amended herein, all provisions of the Agreement are hereby confirmed by the parties to be and remain in full force
and effect.
NORTHERN NATURAL GAS COMPANY CITY OF WAUKEE
By: Laura Demman By:
Title: President, NNG and Kern River Title:
Date: 07/12/2023 Date:
Appendix A Contract No.:113373
Firm Throughput Service Agreement Request No.:214977
TFX Rate Schedule Amendment No.:5
Page 1 of 2
Shipper: CITY OF WAUKEE
Term: 11/01/2023 through 10/31/2027
Contract Volumes (Dth):
MARKET 5,905 November through March
MARKET 3,689 April through October
Maximum Daily Quantities (Dth):
VolumeType From Volume
MDQ November through March 5,905
MDQ April through October 3,689
Appendix A Contract No.:113373
Firm Throughput Service Agreement Request No.:214977
TFX Rate Schedule Amendment No.:5
Page 2 of 2
Shipper: CITY OF WAUKEE
Term: 11/01/2023 through 10/31/2027
RECEIPT AND DELIVERY POINT DESCRIPTIONS AND VOLUMES (DTH)
R/D POI # / MIDS Point Description Jan Feb Mar Apr May Jun Jul Au g Sep Oct Nov Dec
R 192 / MID 17 NBPL/NNG VENTURA 4,223 4,223 4,223 3,300 3,300 3,300 3,300 3,300 3,300 3,300 4,223 4,223
R 37654 / MID 16 B NNG FIELD/MKT DEMARCATION -16B 1,682 1,682 1,682 389 389 389 389 389 389 389 1,682 1,682
Total Market Area Receipts 5,905 5,905 5,905 3,689 3,689 3,689 3,689 3,689 3,689 3,689 5,905 5,905
D 78928 / MID 17 ZONE ABC CITY OF WAUKEE 5,905 5,905 5,905 3,689 3,689 3,689 3,689 3,689 3,689 3,689 5,905 5,905
Total Market Area Deliveries 5,905 5,905 5,905 3,689 3,689 3,689 3,689 3,689 3,689 3,689 5,905 5,905
Appendix B Contract No.:113373
Firm Throughput Service Agreement Request No.:214977
TFX Rate Schedule Amendment No.:5
Delivery Point Listing
Page 1 of 1
Shipper: CITY OF WAUKEE
Term: 11/01/2023 through 10/31/2027
DELIVERY POINT DESCRIPTION:MAXIMUM VOLUMES (DTH)
POI #Delivery Points Served Jan Feb Mar Apr May Jun Jul Au g Sep Oct Nov Dec
ZONE ABC CITY OF WAUKEE
78642 WAUKEE IA #2 5,905 5,905 5,905 3,689 3,689 3,689 3,689 3,689 3,689 3,689 5,905 5,905
Total ZONE ABC CITY OF WAUKEE 5,905 5,905 5,905 3,689 3,689 3,689 3,689 3,689 3,689 3,689 5,905 5,905
Total 5,905 5,905 5,905 3,689 3,689 3,689 3,689 3,689 3,689 3,689 5,905 5,905