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February 17, 2006

 

TRANSGAS LIMITED
NOTICE TO POTENTIAL SHIPPERS/CUSTOMERS
EXPORT SUMMER SERVICE OFFERING AT SUCCESS AND SHACKLETON

 

As per our Open Season Offering letter dated 2005 August 23, TransGas Limited (TransGas) hereby announces an Open Season for summer transportation services from the TransGas Energy Pool (TEP) to TCPL at Success and Shackleton effective from 2006 April 01, 09:00 CCT to 2006 November 01, 09:00 CCT. This Open Season is being conducted pursuant to the terms and conditions contained within The TransGas Comprehensive Tariff and the terms and conditions set out herein. This Open Season will allow TransGas to continue to provide the benefit of TCPL export points downstream of Bayhurst to TransGas’ export shippers. This service will allow customers to take advantage of transport and fuel gas savings on TCPL with no incremental cost to TransGas. The Open Season is available to all Shippers.

 

The capacities and terms that are available under the terms of this Open Season letter are as follows:

 

Delivery Location

Transportation Capacity

Renewal Rights

Effective Date

End Date

Success 80 TJ/d No Renewal Rights 2006
Apr. 01
2006
Nov. 01

Shackleton

30 TJ/d

No Renewal Rights

2006
Apr. 01
2006
Nov. 01

The summer transportation service from TEP to TCPL at Success and Shackleton:


• will be allocated to all parties expressing an interest on an equal share basis (capacity available divided by the number of interested parties);
• will not be evergreening; and
• will be re-allocated each year through subsequent open season processes.

 

All customer requests received during this Open Season will be assigned the same queue position, i.e. there will be no priority allocation among these requests, as described in the Queue Procedure in the Tariff. TransGas will not accept applications for service submitted after the Open Season; rather, TransGas will conduct subsequent Open Seasons for any capacity available at these export points. Open Season requests will be considered as official service requests. No Open Season queue deposit will be required as service will be offered shortly after the close of the Open Season. Once the interest in the summer service offering at Success and Shackleton has been determined, capacity will be allocated and customers will be contacted with regards to the capacity that TransGas can allot to them. At this point, Parties can decline the allotted seasonal capacity, which may then be offered at TransGas’ discretion, to the other Open Season participants.

 

This service offering for export transportation will be contracted under standard TransGas export rates. Customers should be aware that there is a 10% premium attached to the short-term (less than one year) export service. Customers may also transfer existing E-11 contracts that have standard export delivery points.

 

The Open Season commences at 8:00 a.m. CCT on 2006 February 17 and will close at 5:00 p.m. CCT on 2006 March 01. 

 

If you have any questions/concerns, or would like to discuss the implications of this Open Season offering for your natural gas transportation portfolio, please contact Chris Uhren at (306) 777-9501 or Debbie Brown at (306) 777-9595.

 

Open Season requests should be submitted via a completed Offer Sheet, and can be faxed, couriered or e-mailed to TransGas at the following address/fax number:

 

Attention: Lillian Wilde
TransGas Limited
500 – 1777 Victoria Avenue
Regina SK S4P 4K5
Phone: (306) 777-9563
Fax: (306) 525-3422
E-mail: lawilde@transgas.com

Kindest regards,

Debbie Brown
Director, TransGas Customer Services


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