park and loan services - link® system application 2011/c...link ® system key points on pal...
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LINK® System Customer Interface
Key Points on PAL Services
• The Park and Loan (“PAL”) service is a method available to shippers to manage imbalances and reduce cash-out exposure.
• PAL may be used to “park” extra gas or borrow needed gas. In other words, PAL may be used to address a Due Shipper (DS) or Due Pipe (DP) imbalance. For example, a shipper could move a DS balance into a park, or resolve a DP imbalance by taking a loan.
• As an interruptible service, PAL will be available only when
operationally feasible.
LINK® System Customer Interface
Basic Structure of Park and Loan
R/D
PAL POT
The park and loan service is a point specific service. All park and loans will
be “anchored” to a specific point.
Pipeline
LINK® System Customer Interface
Basic Structure of Park Deals
R/D
PAL POT
To park gas, a nomination is submitted under a park deal to move gas from the park’s
anchor point to the corresponding Park and Loan Point of Transaction (PAL POT). For
example, on TE, a park from a receipt point in South Texas must use the South Texas
PAL POT. To remove the gas from a park, a “park withdrawal” nomination is
submitted under the same park deal to move gas from the corresponding PAL POT back
to the anchor point.
Daily park charges will accrue as long as a park balance exists. No transportation,
injection, or withdrawal charges are assessed when moving gas into or out of a park.
Park Park
Withdrawal
Pipeline
LINK® System Customer Interface
Basic Structure of Loan Deals
R/D
PAL POT
To borrow gas, a nomination is submitted under a loan deal to move gas from the
corresponding PAL POT to the loan’s anchor point. For example, on TE, a loan to a
delivery point in M3 must use the M3 PAL POT. To payback a previous loan, a loan
payback nomination is submitted under the same loan deal to move gas from the loan’s
anchor point to the corresponding PAL POT.
Daily loan charges will accrue as long as a loan balance exists. No transportation,
injection, or withdrawal charges are assessed when moving gas into or out of a loan.
Loan Loan
Payback
Pipeline
LINK® System Customer Interface
Valid Park and Loan Points
Company Operational
Impact Area
Park and Loan POT
TE STX 79611
TE ETX 79612
TE WLA 79613
TE ELA 79614
TE M1 24” 79615
TE M1 30” 79616
TE M2 24” 79617
TE M2 30” 79618
TE M3 79619
AGT n/a 87000
M&N US n/a 37003
ETNG n/a 50010
SESH n/a 89100
Here is a list of the PAL POTS used for the park and loan service:
LINK® System Customer Interface
Park and Loan Transaction Types Four transaction types support park and loans. TT 26 and 27 are used
with park deals, while TTs 28 and 29 are used with loan deals.
LINK® System Customer Interface
Park Nomination Example
Here is an example of
nominating from a
receipt point (meter
79618) to the Park POT
in M2 30”(79508). The
nomination was made
under a park deal, as
indicated by rate
schedule IPS
(Interruptible Park
Service). The
transaction type for a
park is TT 26. All
other park and loan
nominations look very
similar to this one.
LINK® System Customer Interface
Nominating Parks and Loans
• Nomination Limitations:
• A shipper cannot nominate in excess of their deals’ MPQ (Maximum Park Quantity) or MLQ (Maximum Loan Quantity).
• A shipper cannot submit a nomination which would result in a negative park or loan balance.
• Shippers can move gas between parks and loans that are anchored at the same point without being assessed transportation charges.
• To move gas between parks and loans which are anchored at different points, transportation is required.
LINK® System Customer Interface
Using PAL with TABS Pools (TE Only)
Service Point
PAL POT
On TE, to move gas between a TABS pool and a PAL POT, the POT must first
be "anchored" to a service point. The PAL POT and the service point must be
in the same zone. Gas can then be nominated from the service point to the
PAL POT by either a park nomination (or, in the case of a loan, a loan
payback). Moving gas out of the PAL POT is simply the reverse of putting
gas into it. Moving gas out of the PAL POT occurs by a park withdrawal (or
in the case of a loan, a loan nomination).
Park or
Loan Payback
Loan or
Park Withdrawal
Pipeline
LINK® System Customer Interface
Using PAL with TABS Pools (TE Only)
Service Point
PAL POT
When moving gas from a TABS pool into a PAL POT (regardless of whether the nomination is a park or a loan
payback), the holder of the TABS pool must nominate under one of their PAL deals. To implement this
requirement, the upstream contract number must be populated with any TABS contract held by the shipper entering
the nomination. The system will then identify the holder of the TABS contract by automatically filling out the
name of the upstream party. A on-line nomination validation will then check to see if the TABS owner is the same
as the owner of the PAL deal.
When moving gas from a PAL POT to a TABS pool (regardless of whether the nomination is a loan or a park
withdrawal), the downstream contract number must be populated with any TABS contract held by the shipper. The
system will then identify the holder of the TABS contract, and verify that the TABS owner is the same as the owner
of the PAL deal.
Pipeline
TABS contract in
upstream contract field.
TABS contract in
downstream contract field.
LINK® System Customer Interface
Park and Loan is Lower in Priority than
Interruptible Transport
Note that park and loan nominations may be scheduled off because they are lower in
priority than Interruptible Transport (IT). Nominations of new parks and loans, or
nominations to remove existing parks or pay back existing loans may be scheduled off.
However, if a shipper is unable to remove an existing park or repay an existing loan,
they have several options, depending on the pipeline:
Option 1: Suspend the charge and extend the term of the park or loan deal by one day (the default).
Option 2: Trade their park balance with a loan balance belonging to another shipper (or trade their loan balance with a park balance belonging to another shipper) which resides at the same anchor point.
Option 3 (AGT Only): Cash out the park or loan balance at current market prices.
LINK® System Customer Interface
Notice Requirements
• A notice from the pipeline to reduce or eliminate nominations of new parks or new loans does not require any lead time.
• If operational conditions warrant, the pipeline can require shippers to remove existing parks or repay existing loans. For TE, M&N US, ETNG, and SESH the required lead time for this notice is:
24 hours for M&N US, and ETNG
72 hours for TE
Note that under the AGT tariff, lead time is not required when issuing a notice to remove existing parks or replay existing loans.
Under the SESH tariff, time stated per notice with a minimum of 24 hours.
LINK® System Customer Interface
Penalties for Violating PAL Notices
• If TE, AGT, and M&N US shippers do not comply with the notice to
remove parked gas or replay loans, and if operational conditions
warrant, the pipeline can:
Confiscate Parked Gas
Cash-out Loaned Gas at 150% of Market
• If ETNG shippers do not comply with the notice, and if operational
conditions warrant, the pipeline can:
Cash-out Parked Gas at 90% of Market
Cash-out Loaned Gas at 110% of Market
LINK® System Customer Interface
Only Allocated Volumes Count!
One key point about parks is
the following: The amount of
gas allocated to a park is
determined by the PDA at
the park’s anchor point.
Additionally, there are no
imbalances on park
nominations, so whatever is
allocated to the deal at the
deal’s anchor point is the
amount of gas posted to the
deal’s park balance.
For example, lets say a
shipper nominates to move
1,000 Dth of gas to be put
into a park, and that this
amount is scheduled. At the
end of the day, only 900 Dth
was allocated to the deal at
the deal’s anchor point. In
this case, only 900 Dth of
gas will be parked.
LINK® System Customer Interface
Only Allocated Volumes Count!
The loan works the same
way. The amount of gas
allocated to a loan is
determined by the PDA
of the loan’s anchor
point. Additionally,
there are no imbalances
on nominations made
under deals, so whatever
is allocated to the deal at
the deal’s anchor point is
the amount of gas posted
to the deal’s loan
balance.
LINK® System Customer Interface
New Contracts and Deals • All Parks and Loans for a shipper will be set up under one “parent”
contract. This contract will contain only minimal information.
• Parks and Loans will then be executed as exhibits to the parent contract, and set up as "deals" in LINK. These will have deal-specific information, consisting of:
• The only two valid points on the deal - the anchor point, and the appropriate PAL POT)
• The deal’s MPQ or MLQ
• The effective begin and end dates of the deal
• The deal rate
LINK® System Customer Interface
Viewing Existing Park and Loan Deals
The Deal List screen will
list all valid park and loan
deals. You can select any
row to bring up details on
any individual deal.
Note: Deal List screen
can only be viewed in the
following business units:
Bobcat Gas Storage
(BGS), MHP Moss Bluff
(MBHP), Egan Hub
Storage (EHP), Ozark
Gas Transmission (OGT),
and Steckman Ridge (SR)
LINK® System Customer Interface
Termination of Parks and Loans
If a park or loan deal reaches its termination date, and there is still a balance, the park or loan balance may be subject to one of the following, depending on the pipeline and operating conditions
For TE and M&N US Parks:
If operating conditions warrant, a park balance which exists after a deal's termination date can be confiscated. Otherwise, the park will be subject to the maximum tariff rate until the balance is removed.
For TE and M&N US Loans:
A loan balance which exists after a deal's termination date may be cashed-out, regardless of operating conditions.
LINK® System Customer Interface
Termination of Parks and Loans For AGT Parks and Loans:
A park balance which exists after a deal's termination date can be confiscated, or a loan balance can be cashed out at 150% of market. Confiscation or cashout is not dependent on pipeline operating conditions.
For ETNG Parks and Loans:
A park or loan balance which exists after a deal's termination date will be subject to the maximum tariff rate until the end of the month, at which time it will be cashed out. Parks will be cashed out at 90% of market, while loans will be cashed out at 110%. These provisions are not dependent on pipeline operating conditions.
LINK® System Customer Interface
Termination of Parks and Loans For SESH Parks and Loans:
Any parked quantity not nominated for removal within the time frame specified by
notice from the pipeline or a minimum of 24 hours will become the property of the
pipeline. Any loaned quantities not nominated to be returned within the time frame
specified by notice from the pipeline shall be sold to Shipper at Pipeline’s Cashout
Price at the >25% Imbalance Level for Imbalances Due Pipeline.