Downeast Pipeline, LLC is conducting a non-binding Open Season to solicit
shipper interest in firm natural gas pipeline transportation capacity designed to link growth
markets in the New England and Northeast regions with new natural gas supplies received at the
Downeast LNG terminal proposed to be constructed in Robbinston, Maine.
Downeast is proposing the construction of an approximate 30-mile long, 30-inch diameter high-pressure
natural gas pipeline system to interconnect the planned Downeast LNG receiving terminal with
the interstate pipeline system of Maritimes and Northeast Pipeline ("M&NP") at the existing
Baileyville Compressor Station in Baileyville, Maine. Through its proposed connection with the
M&NP system, the Downeast Pipeline may provide shippers with access to interconnections
with interstate and intrastate natural gas transmission pipelines in the New England region.
The Downeast Pipeline will be designed with a maximum allowable operating pressure of 1,580
pounds per square inch gauge ("psig") and deliverability of up to 500 mmscf/d with peaking
capacity of 625 mmscf/d (net of fuel).
Downeast filed an application with the Federal Energy
Regulatory Commission ("FERC") for authorization under Section 7(c) of the Natural Gas Act
("NGA") to construct and operate the Downeast Pipeline in Docket No. CP07-53-000, et al.
which currently is pending. A map showing the currently proposed configuration of the
Downeast Pipeline is available on the Downeast website. The targeted in-service date for this
pipeline system is the winter season of 2012, provided the necessary regulatory approvals are
received and facilities can be constructed by that date.
Dates and Length of Non-Binding Open Season
The non-binding Open Season for Downeast will begin on November 3, 2008 and conclude at
5 p.m. (EST) on December 2, 2008.
Submission of Expressions of Interest
Expressions of Interest should be filled in completely, to include the Shipper name, contact
information of the person completing the form, the desired maximum daily transportation
quantity, contract term, and desired reservation rate for the term of the agreement. The rate must
be presented as either the recourse reservation charge that ultimately is approved and accepted
by FERC (and subject to change by FERC from time to time) or a negotiated rate. The requested
primary contract term must be in whole year increments and reflect a minimum contract term of
20 years from the commencement of service. Prospective Shippers are permitted to submit
multiple Expressions of Interest. Since the proposed pipeline will have only one receipt point
and one delivery point, designation of these points is not required.
Awarding of Capacity
In the event more capacity is requested than is available under this offering, capacity allocation
will be evaluated on a non-discriminatory basis based upon the highest net present value
("NPV") per Dth for each offer. Winning bidders will be contacted by 5 p.m. (EST),
December 9, 2008. Downeast will proceed in negotiating transportation precedent agreements
("TPAs") with the winning bidder(s). Awards of capacity will be final and will bind those
entities that execute TPAs.
Downeast reserves the right, on a nondiscriminatory basis, to reject any bid that Downeast
determines does not meet the requirements set forth herein, including those bids that contain
conditions. Downeast reserves the right to modify or alter the design and configuration of the
proposed pipeline and services contemplated herein, if necessary, as dictated by economic,
environmental, regulatory and legal factors. Furthermore, if Downeast determines in its sole
discretion that the results of this Open Season do not support an economically viable project,
Downeast may terminate project work and withdraw from this Open Season at any time prior to
the execution of TPAs, without penalty or liability to any third party.
Questions regarding this Open Season and requests for copies of the bid documents should be
directed to the following individual:
6431 Barnaby Street, NW
Washington, DC 20015