Implementation Date for Tennessee Sale of Offshore Facilities

Tennessee Gas Pipeline Company, L.L.C.’s (“Tennessee”)is announcing that the sale of its offshore and onshorefacilities in the Gulf of Mexico and southern Louisiana to Kinetica Partners, LLC and Kinetica Energy Express L.L.C. (“Kinetica”), will most likely be effective on September 1, 2013. On May 31, 2013, the Federal Energy Regulatory Commission approved the sale, with conditions. Kinetica accepted the order subject to rehearing and has filed its initial rates and tariff. As previously stated, the Effective Date of the sale depends on several conditions precedent and is subject to change.

This posting generally outlines changes that will occur with the transaction.

Tennessee completed and electronically executed the recalls and amendments required related to the Tennessee Sale of Offshore Facilities. Contract holders with impacted contracts are reminded that they may now proceed with creating September 1, 2013 releases. The previous deadline to recreate the releases is no longer applicable due to the delay of the DART conversion. Customers are encouraged to submit their new September 1, 2013 releases expeditiously.If you are a releasing shipper, please contact your replacement shippers to inform them of this forthcoming occurrence. If you experience issues re‐creating your September releases, please contact your respective Account Representative for assistance.

  1. GENERAL INFORMATION:
  1. Copy the following link to go to Presentations to see a list of affected firm contracts:
  2. Effective for Gas Day September 1, 2013,Tennesseeestablishedfive receiptinterconnect points with Kinetica. The interconnect points are (listed with their PASSKEY Meter numbers): Transco SW Lateral (previously known as Johnson’s Bayou)#001366, Grand Chenier#050303,Egan#011034, Cocodrie#012883, and Port Sulphur#012882. In addition, Tennessee has set up one delivery meter: Acadian Bluewater Interconnect #021041. Copy the following link to go to Presentations to see a list of affected meters:
  3. In addition, the interconnection between Tennessee and Kinder Morgan Louisiana Pipeline LLC (“KMLP”) in Jefferson Davis Parrish, Louisiana, (Welsh Meter #012801) will no longer be available for delivery into Tennessee’s system or Kinetica’s system. Tennessee shippers wishing to source gas from KMLP may still do so via Tennessee’s capacity in the Southwest Loop Lateral at Transco SW Lateral (Meter #001366).
  4. Copy the following link to go to Presentations to see an Overview Map:
  1. CONTRACT CHANGES:

1.Firm Transportation Agreements:

  1. Primary receipt and delivery points on the facilities to be sold were relocated on each firm transportation agreement to a corresponding demarcation point as September 1, 2013. The date on the exhibit displays an effective date of September 1, 2013 with the following Special Term, “This amendment is pursuant to Tennessee Gas Pipeline’s sale of its offshore and onshore facilities in the Gulf of Mexico and southern Louisiana to Kinetica Partners, LLC and Kinetica Energy Express L.L.C. On May 31, 2013, the Federal Energy Regulatory Commission approved the sale, with conditions. The sale may occur as early as September 1, 2013. The effective date of this amendment depends on several conditions precedent and is subject to change.” The Meter TQ is shown at the corresponding new interconnect locations.
  1. Tennessee internally electronically executed the amendments to the Exhibit A’s of all affected Firm Transportation Agreements to effectuate the primary meter modifications. Please see the attached meter list and corresponding demarcation locations.
  1. All affected firm transportation agreements containing discounts or negotiated rates as of the Effective Date shall continue to maintain such discounted or negotiated rates in accordance with the terms of the respective discount or negotiated rate agreements. Such discounts or negotiated rates shall not be affected by the primary point amendments described herein.

2.Capacity Release Agreements: Currentcapacity release agreements with primary points on the facilities sold werefully recalled as ofSeptember 1, 2013to allow amendment of the base releasing contract. Future capacity release agreements with future start dates wererecalled on the effective date of the release. Tennessee createdand internally electronically executed the recalls.

  1. Shippers with releases that contain September 1, 2013 or any date in the future that do not change month-to-month may contact Tennessee (Dayna Owens 713-420-5952 or Sherry Noack 713-420-3764). Upon request, Tennessee will create the new releases identical to the existing releases in every way, except for the amended primary points.
  1. Shippers with releases that change month-to-month may create their own September 1, 2013 expeditiously.

3.Operational Balancing Agreement (OBA): Unless Tennessee and Kinetica specifically agree otherwise OBAs solely containing receipt and delivery points on the facilities to be sold will terminate on the Effective Date. In an earlier posting, Tennessee provided its 30 day written notice of termination effective at the end of the calendar month for each OBA solely containing receipt and delivery points on the facilities to be sold. See Article III Term, Section 3.1 of balancing agreements under Rate Schedules LMSMA, LMSPA and LMSPL. The Exhibit A of all other balancing agreements (those containing affected meters in part) will be amended one day prior to the Effective Date to inactivate the receipt and delivery meters included with the sale.

4.PTR and PTR-D Agreements: Pursuant to Article XII Term, Section 12.1 of PTR and PTRD transportation agreements, Tennessee provided in an earlier postingits 30 day written notice of termination as of the Effective Dateor such later date as Tennessee deems necessary for invoicing purposes. The affected plants are Bluewater,Grand Chenier and Sabine Pass.

5.Liquids Transportation Agreements (LTAs): As discussed in the section B.3.c of the April 30, 2013 posting, Tennessee provided notice that upon closing of the sale, Kinetica would succeed to the rights and obligation of the LTAs. Tennessee has sent individual notices for active LTAs that have current production activity. If you have received notice, please return the acknowledgement form as soon as possible . A party who believes it holds an active LTA for the following systems for which it has not received notice from Tennessee should immediately notify Robert with contract and contact information.

  1. Cocodrie/Pecan Island Plants
  2. Johnson Bayou Plant
  3. Grand Chenier Plant

On the Effective Date, Tennessee will cancel all elections on LTAs to process gas from the receipt points on the attached list of meter stations sold. After the Effective Date, Tennessee will no longer be taking elections on LTAs.

  1. NOMINATIONS

Tennessee’s new interconnects with Kinetica will use a pipeline OBA for allocation purposes under Rate Schedule LMSPL. Shippers or Poolers nominating receipts from the new interconnects will no longer nominate interest owner information but must designate an upstream party (DUNS ID) for confirmation purposes. IMPORTANT: Please remember to enter new nominations in Passkey for Gas Day September 1, 2013 using the corresponding interconnect rather than points on the attached list of affected meters. Further details regarding nomination instructions for the transition will be forthcoming.

OTHER KINETICA INFORMATION:

If you need to speak with a representative from Kinetica about service upstream of Tennessee’s facilities, please contact Kathy Bates or Rick Sacco at 713-228-3347.

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