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Non-BindingOPENSEASONTALLOAK–ARKOMARESIDUECAPACITY(“ARC”)PIPELINEPROJECT
Overview
TallOakMidstreamIII,LLCanditsaffiliatesandsubsidiaries(collectively,“TallOak”)ownandoperateanaturalgasgatheringandcompressionsystemservingmorethan150,000dedicatedacresandcontinuethedevelopmentofa200MMcfdprocessingplantinsoutheastOklahoma’sburgeoningArkomaSTACKplay. To meet the area’s rapidly growing needs for residue gas takeaway capacity and provide itscustomerswithdownstreammarketoptionality,TallOakispleasedtoannounceanopenseasonforitsArkomaResidueCapacityPipeline(“ARCPipeline”).
Tall Oak’s natural gas processing plant (“Panther Creek Plant”) will be located in Hughes County,Oklahoma,andisexpectedtoconnecttoEnableOklahomaIntrastateTransmission(“EOIT”),EnableGasTransmission(“EGT”)andtheArkomaConnectorPipelineforresiduegasdeliveriesfromtheplanttailgate.Inadditiontotheseplannedresidueoutlets,TallOakcustomershaverequestedadditionalresiduegastakeaway capacity from the Panther Creek Plant and market flexibility through interconnects withMidcontinentExpressPipeline,LLC(“MEP”),GulfCrossingPipelineCompany,LLC(“GulfCrossing”)andNaturalGasPipelineCompanyofAmerica,LLC(“NGPL”),alllocatednearBennington,Oklahoma.Tomeetthesecustomerrequests,theARCPipelinewilladdinterconnectstoMEP,GulfCrossingandNGPLtoserveadditionaldownstreamresiduemarkets.Furthermore,theARCPipelineplanstoalsoconnecttoareceiptpointoffEGT,alsoinHughesCounty.TheplannedreceiptofgasoffEGTwillalleviatecapacityconstraintsforresiduegasfromtheSTACK,SCOOPandMERGEplayslocatedincentralandwesternOklahoma,byprovidingthisgasapathtoBennington.
TallOakwillseekFederalEnergyRegulatoryCommission(“FERC”)approvaltoconstructtheARCPipeline.ThepurposeofthisopenseasonistoensurethattheARCPipelineissufficientlyscopedbasedonallnear-termmarketrequirements, includingcurrentrequestssupportingtheARCPipeline,andanyadditionalrequeststhatmaybemadeasaresultofthisopenseason.ThroughtheARCPipeline,TallOakwillprovide
additionalresiduegastakeawaycapacityandfirmtransportationservicefromthetailgateofitsplannedPantherCreekPlant,aswellasareceiptpointoffEGT,extendingsouthtowardpointsof interconnectwithMEP, Gulf Crossing and NGPL in Bryan County, Oklahoma. Shippers will separately arrange fortransportationonMEP,GulfCrossingand/orNGPL.
ThepreliminaryscopeoftheARCPipelineconsistsofapproximatelyeighty(80)milesof24-inchor30-inchpipeline.Followingtheopenseason,TallOakwillrefinethepreliminaryscopeoftheARCPipeline,inordertodevelopadesignthatiscapableofaccommodatingthelevelofshippernominationsreceivedinassociationwiththisopenseason.TheARCPipelinewillbedesignedinamannerthatallowsTallOaktoachieve the most economical project consistent with safety, operational and environmentalconsiderations. Shippers thathave submitted shippernomination forms through thisopenseasonareexpectedtoexecutebindingprecedentagreementsfollowingTallOak’scompletionandannouncementoftherefinedprojectdesign,whichisexpectedbeforeApril30,2018.
Ifyouareinterestedinparticipatinginthisopenseason,pleasereviewtheinformationincludedhereinandcompletetheattachedshippernominationform.CompletedformsshouldbereturnedtoTallOakbythedateshownbelow.
ARCPipelineMap:
TargetIn-ServiceDate:Endof2019.However,theactualin-servicedateissubjecttotimelyissuanceandacceptanceofallnecessaryregulatoryauthorizations,approvalsandpermits.ConstructiondelaysbeyondTallOak’scontrolmayalsoimpacttheactualin-servicedate.
SubscriptionPeriod:March6,2018throughMarch30,2018.
Service:FirmtransportationservicefromthetailgateofthePantherCreekPlantandtheEGTreceiptpointtopointsofinterconnectwithMEP,GulfCrossingandNGPL.
Term:Therequestedcontracttermforfirmtransportationservicehereundershallbeaminimumoften(10)years.TallOakmay,initssolediscretion,acceptothertermsproposedbyshippersparticipatinginthisopenseason.
Rates:ThisprojectcontemplatesthatfirmtransportationservicewillbeprovidedpursuanttoanFTRateScheduletobeincludedinTallOak’sNaturalGasTariff,tobefiledwithFERC.TallOakreservestherighttodevelopfirmtransportationratesbasedontherefineddesignandcostestimatesoftheARCPipelineestablishedtoservetheaggregatefirmtransportationservicerequestsreceivedonshippernominationforms.ShippersmustexecuteprecedentagreementsbyApril30,2018.Initialrateswillbedeterminedbased on the level of binding customer commitments received (as evidenced by executed precedentagreements)andthecostofthefinalfacilitiesrequiredtoservetheaggregatefirmtransportationservicerequestsofallshippersexecutingprecedentagreements,asdeterminedbyTallOak,initssolediscretion.
NominationProcess
Thesubscriptionperiodforthisnon-bindingopenseasonwillbeginat9:00AM(CentralTime)onMarch6,2018andcloseat5:00PM(Central)onMarch30,2018.TallOakmay,initssolediscretion,considerrequests received after the close of the subscription period only if such requests are determined tocontributetotheprojectinapositivemannerandcanbeaccommodatedwithoutadverselyaffectingthefilingprocessand/oranticipatedin-servicedates.
Parties interestedinobtainingfirmtransportationservicemustsubmitashippernominationformandnecessary financial information no later than the close of the subscription period, addressed to thefollowing:
OpenSeason–ARCPipelineTallOakMidstreamIII,LLC
2575KelleyPointeParkway,Suite340Edmond,Oklahoma73013
OREmail:[email protected]
ShipperswillberequiredtoprovidecertainfinancialinformationtoqualifyforserviceontheARCPipeline.TallOakreservestherighttorequestallsuchfinancialinformationasitdeemsnecessarytodeterminethecreditworthinessofallshippers.
TallOakreservestherighttomakeafinaldeterminationofthesize,scopeandcostoftheARCPipeline,aswellasa finalevaluationof theoveralleconomicsof theproject,and, in its solediscretion,decidewhetherornottoproceedwiththeARCPipeline.AllpartiessubmittingtimelyshippernominationformswillbenotifiedofTallOak’sfinaldecision,whichisexpectedbynolaterthanMay31,2018.
Contacts for Additional Information: If you have any questions or require additional informationregardingthisopenseason,pleasecontact:
BlakeBurgerDirectorCommercialDevelopment
405-888-5585Email:[email protected]
orMirandaDavis
ManagerGasScheduling&ContractAdministration405-888-5585
NON-BINDINGOPENSEASONARCPIPELINE
RESIDUEGASTRANSPORTATIONSERVICE
SHIPPERNOMINATIONFORM
ShipperName:________________________________________ShipperAddress: ________________________________________ ________________________________________ ________________________________________PersonInitiatingNon-BindingRequestforServiceName:_______________________________Title:____________________________Phone:___________________EmailAddress:________________________________ServiceCommencementDate:In-servicedateforARCPipelineexpectedin2019ReceiptPoint:___________________________(pleaseindicateeitherPantherCreekPlanttailgateorEGTreceiptpoint)DeliveryPoints:MidcontinentExpressPipeline,GulfCrossingPipelineCompanyandNaturalGasPipelineCompanyofAmerica,alllocatednearBennington,OklahomaFIRMTRANSPORTATIONSERVICE
MAXIMUMDAILYQUANTITY(MDQ)REQUESTED:__________________Dth
TERMREQUESTED:__________________________(minimum10years)Signature:________________________________________Date_______________Pleaseemailcompletedshippernominationformtomdavis@talloakmidstream.com
