FAR OFF (Firm Access Receipt Rights And Off-System Delivery)
Updated 7/2010
Recent postings designated in RED.
Overview
FAR OFF is the system of firm access rights and off-system delivery on the SoCalGas transmission system. FAR OFF was implemented on October 1, 2008, to provide customers, gas suppliers and California producers with new options and opportunities.
The FAR system enables market participants (including end-users, wholesale customers, gas suppliers and California gas producers) to hold firm and/or interruptible access rights at receipt points into the SoCalGas/SDG&E integrated gas transmission system. Currently, upstream shippers and end-use customers have no guarantee that their gas will flow through receipt points. Firm access receipt point right holders are eligible to trade their rights or exchange receipt point rights electronically via the SoCalGas EBB’ - Envoy.
Customers may opt to deliver off-system from the SoCalGas/SDG&E integrated gas transmission system to the PG&E delivery point, thereby opening up new markets in northern California to potential gas suppliers based in southern California.
FAR introduced a new pooling service designed to improve and facilitate gas trading and exchanges at the new citygate delivery point. This virtual pooling occurs after the gas is delivered through a receipt point using the receipt point access rights. The city gate pool facilitates delivery of gas to an end-user, storage account, or for off-system deliveries from multiple receipt points. It also creates a convenient pricing point for customers to buy and sell gas
Currently, parties may obtain firm and/or interruptible rights for receipt point access electronically via the SoCalGas’ EBB - Envoy. SoCalGas will hold the next open season in which parties can obtain firm rights for receipt point access in the summer of 2011.
Sub-Sections of FAR OFF
Receipt Points, Zones, Alternate Receipt Points
Firm and Interruptible Receipt Point Rights
Off-system Delivery
Pooling Service
Rates and Billing
Contract Requirements
Nominations and Scheduling
Agent Designation for Nominating and Trading Rights
Buying Receipt Point Rights
Set-Aside Receipt Point Rights
Exchanging Firm Receipt Point Rights
Trading Firm Rights
Historical Capacity Utilization
Tariffs
How To Start The Process
Receipt Points, Zones, Alternate Receipt Points
Delivering Pipelines
EPN – El Paso Natural Gas Pipeline
TGN – Transportadora de Gas Natural de Baja California
NBP – North Baja Pipeline
TW – Transwestern Pipeline
MP – Mojave Pipeline
QST – Questar Southern Trails Pipeline
KR – Kern River Pipeline
PG&E – Pacific Gas and Electric
OEHI – Occidental of Elk Hills
Receipt Points and Alternate Receipt Points
Customers holding firm receipt point access capacity will be able to nominate natural gas for delivery at a specific receipt point and on an alternate firm basis “within-the-zone” from any specific Receipt Point within an applicable transmission zone. Customers will also be able to nominate natural gas for delivery on an alternate “outside-the-zone” firm basis from any receipt point on the system. All such nominations will be scheduled in accordance with SoCalGas Rule No. 30, Transportation of Customer-Owned Gas.
| Zone* | Zone Firm Access (MMcfd) |
Specific Points of Access (MMcfd) |
Zone Firm Access MMDth/d |
Specific Points of Access (MMDth/d) |
|---|---|---|---|---|
| Southern | 1,210 | EPN Ehrenberg – 1,210 | 1,229 | EPN Ehrenberg – 1,229 |
| TGN Otay Mesa - 400 | TGN Otay Mesa - 414 | |||
| NBP Blythe – 600 | NBP Blythe – 621 | |||
| Northern | 1,590 | TW North Needles - 800 | 1,620 | TW North Needles - 812 |
| TW Topock - 190 | TW Topock - 193 | |||
| EPN Topock - 540 | EPN Topock - 548 | |||
| QST North Needles-120 | QST North Needles - 121 | |||
| KR Kramer Junction – 550 | KR Kramer Junction – 574 | |||
| Wheeler | 765 | KR/MP Wheeler Ridge – 765 | 798 | KR/MP Wheeler Ridge – 798 |
| PG&E Kern River Station - 520 | PG&E Kern River Station - 528 | |||
| OEHI Gosford – 150 | OEHI Gosford – 167 | |||
| Line 85 | 160 | California Supply | 184 | California Supply |
| Coastal | 150 | California Supply | 173 | California Supply |
| Other | 79 | California Supply | 91 | California Supply |
| Total | 3,954 | 4,095 |
*Any interstate pipeline, LNG Supplier or PG&E that interconnects through a new receipt point may be added to that Transmission Zone.
Delivery Points
- End-User’s Local Transportation Agreement
- Citygate Pool Account
- Storage Account
- Contracted Marketer or Core Aggregator Transportation Account
- Off-System Delivery Service Contract
Firm and Interruptible Receipt Point Rights
Firm receipt point rights allow firm access to the SoCalGas transmission system receipt points. However, these rights do not guarantee nor imply firm service on the SoCalGas’ local transmission/distribution system.
Interruptible receipt point rights provide “as available” access to the SoCalGas transmission system receipt points. All unused firm receipt point access capacity or operationally available capacity will be made available on an interruptible basis at the G-RPAI rate schedule and will be scheduled in accordance with the SoCalGas Rule No. 30. Customers taking interruptible service will be required to execute one contract which will provide service from all receipt points.
Off-System Delivery
SoCalGas will contract with any creditworthy party for Interruptible Off-System Backhaul Service under the G-OSD tariff to the PG&E pipeline only. SoCalGas will make available physical displacement capacity at the receipt point on an interruptible basis at the applicable G-OSDI rate.
SoCalGas will hold an open season for firm off-system delivery service to the PG&E system that would require new facilities at either the Adelanto/Kramer Junction area or Kern River Station. Firm off-system delivery service will be sold to customers willing to commit to long-term contracts with use-or-pay provisions or reservation charges.
Pooling Service
Pooling is the administrative aggregation or disaggregation of natural gas supplies at the citygate and is defined in SoCalGas’ G-Pool tariff. Each customer may have a single citygate pool contract where they will be able to nominate supplies coming through any Receipt Point Access Contract and nominate supplies out of the pool contract to end-users, other pool contracts, off-system, or to storage accounts. The city gate pool contract will be required to balance through each nominating cycle.
This virtual pooling occurs after the gas is delivered through a receipt point using the receipt point access rights. The city gate pool helps facilitate delivery of gas to an end-user, storage account, or for off-system deliveries from multiple receipt points. It should also create a convenient pricing point for customers to buy and sell gas if they so desire.
Rates and Billing
The following rate schedules, which are applicable at all receipt points, provide both firm and interruptible receipt point access rights.
| Rate | Firm or Interruptible |
Term | Rate Structure | Reservation Rate (per Dth/Day) |
Volumetric Rate (per Dth) |
|---|---|---|---|---|---|
| G-RPA1 | Firm | 3 Years* | 100% Reservation | ||
| G-RPA2** | Firm | 3 to 20 Years | 100% Reservation | Cost Based | |
| G-RPAN | Firm | Up to 3 Years | 100% Reservation | Market based up to tariff | |
| G-RPAI | Interruptible | Up to 3 years | 100% Volumetric | Market based up to tariff |
* Terms are available for up to 20 years during Steps 3A and 3B open season.
** Customer taking service under G-RPA2 will also pay the G-RPA1 rate.
The Monthly Reservation Charge is payable each month regardless of the quantity of gas scheduled during the billing period. The Reservation Charge for each billing period shall be calculated using the applicable reservation rate and the DCQ as specified in Customer’s RPAC.
Monthly Reservation Charge = Reservation Rate * DCQ * number of days in the billing period (or if less than one month, number of days in term of contract) Monthly Volumetric Charge:
The Monthly Volumetric Charge for each billing period shall be calculated using the applicable volumetric rate multiplied by the scheduled quantities on the Customer’s RPAC.
Monthly Volumetric Charge = Volumetric Rate * Quantities of Gas Scheduled during the billing period.
Contract Requirements
As a condition precedent to firm or interruptible receipt point service, executed copies of the following two contracts are required:
1) Master Services Contract (“MSC”);
2) Receipt Point Master Agreement (“RPMA”)
In addition to the MSC and RPMA, it is recommended that a customer execute an EBB Agreement in order to nominate, schedule or trade receipt point rights electronically. Once the required contracts are in place and credit requirements have been met, customers are then eligible to buy firm or interruptible rights. The contract for specific receipt point rights is the Receipt Point Access Contract (RPAC).
Nominations and Scheduling
SoCalGas will follow the North American Energy Standards Board (NAESB) adopted standards for nominations and scheduling, consistent with the method employed by the interstate pipelines. All nominations and scheduling will be managed using SoCalGas’ EBB at www.socalgasenvoy.com
Refer to SoCalGas' Rule 33.
Each day, the receipt point capacities will be set at their physical operating maximums under the operating conditions for that day. Notification of daily operating maximums will be posted on the SoCalGas EBB. SoCalGas will use the following rules to schedule nominations to the receipt point maximums.
- Nominations using Firm Primary receipt point access rights will have first priority; pro-rated if over-nominated*.
- Nominations using Firm Alternate receipt point access rights within the associated transmission zone will have second priority (“Firm Alternate Within-the-Zone”); pro-rated if over-nominated.
- Nominations using Firm Alternate receipt point access rights outside the associated transmission zone will have third priority (“Firm Alternate Outside-the-Zone”); pro-rated if over-nominated.
- Nominations using Interruptible receipt point access right will have fourth priority, pro-rated if over-nominated.
- Firm Primary rights can “bump” any Firm Alternate scheduled quantities through the Evening Cycle.
- Firm Alternate Within-the-Zone rights can “bump” Firm Alternate Outside-the-Zone scheduled quantities through the Evening Cycle.
Refer to SoCalGas' Rule 30.
New FAR-OFF Nominations Transaction Paths
| Path Number | From | To |
|---|---|---|
| 1 & 2 | Pipeline/CA Producer | Receipt Point Access Contract |
| 3 | Receipt Point Access Contract | End-user, Contracted Marketer, ESP |
| 4 | Receipt Point Access Contract | Customer’s Pool Account |
| 5 | Receipt Point Access Contract | Storage Account |
| 6 | Customer’s Pool Account | End-user, Contracted Marketer, ESP |
| 7 | Customer’s Pool Account | Another Party’s Pool Account |
| 8 | Storage Account | End-user, Contracted Marketer, ESP |
| 9 | Customer’s Pool Account | Storage Account |
| 10 | Storage Account | Customer’s Pool Account |
| 11 | Storage Account | Storage Account |
| 12 | Storage Account | Off-System Delivery Agreement |
| 13 | Customer’s Pool Account | Off-System Delivery Agreement |
| 14 | Off-System Delivery Account | Pipeline (PG&E) |
| 15 | Receipt Point Access Contract | Off-system Delivery Agreement |
| 16 | End-user | Storage Account |
Agent Designation for Nominating and Trading Rights
A customer may opt to designate one and only one nominating agent or trading agent in addition to itself at any one time to nominate on all RPACs under a customer’s RPMA. Customer must provide appropriate written authorization to SoCalGas of its intent to add or change a designated nominating or trading agent via the Nomination and Trading Authorization Form (Form No. 9924). Such designation shall be subject to that agent complying with applicable tariff and contractual provisions. Customer shall provide appropriate written notice to SoCalGas of its intent to terminate a nominating agent via the Termination of Nominating or Trading Agent Form (Form No. 9926).
Buying/Exchanging Receipt Point Rights
Customers with a valid Receipt Point Master Agreement, sufficient credit line and proper Envoy access rights may purchase available Firm, Interruptible or OSD rights directly from SoCalGas through the Receipt Point Access module in Envoy or from other contract holders through Envoy’s Secondary Market module..Contract holders may also exchange rights between receipt points through Envoy® in the Receipt Point Access module.
Trading Firm Rights
Customers who hold firm receipt point access rights may sell all or a portion of those rights in the secondary market through an electronic trading platform on the SoCalGas’ EBB - Envoy. Likewise, any creditworthy party may purchase firm receipt point access rights in the secondary market. Any party releasing firm rights will be referred to as “Releasing Shipper” and the party purchasing firm rights through the secondary market will be referred to as “Acquiring Shipper.” Rights may be re-released any number of times under the same rules applicable to releases by customers who originally obtained the rights directly from SoCalGas. Releases may consist of all or part of the receipt point access rights of a customer’s contract quantity and all or part of the remaining contract term with a minimum term of one day. SoCalGas will bill the Acquiring Shipper and credit the Releasing Shipper subject to the provisions in Special Condition 15 of G-RPA.
- SoCalGas Contacts (Adobe PDF, 2 MB)
- Secondary Market Training Handbook (Adobe PDF, 2.3 MB)
- California Producer Workshop in Valencia -- March 5, 2008 (Adobe PDF, 1 MB)
- SDG&E Customer Workshop -- March 5, 2008 (Adobe PDF, 564 KB)
- SoCalGas Customer Workshop in Redlands -- February 27, 2008 (Adobe PDF, 401 KB)
- SoCalGas Customer Workshop in Bakersfield -- February 19, 2008 (Adobe PDF, 420 KB)
- Marketer and Third Party Meeting in Los Angeles --February 6, 2008 (Adobe PDF, 579 KB)
- Marketer and Third Party Meeting in Downey -- December 14, 2007 (Adobe PDF, 427 KB)
- FAR OFF Presentation Meeting -- December 14, 2007 (Video Presentation, Third-Party Web site
- Energy Markets Customer Meeting -- Nov 7, 2007 (Adobe PDF, 352 KB)
Historical Capacity Utilization
- Historical Receipt Point Utilization, September 2007 (Adobe PDF, 117 KB)
- Historical Receipt Point Utilization, March 2008 (Adobe PDF, 118 KB)
- Historical Receipt Point Utilization - Oct 2008 - Sept 2009 (Adobe PDF, 642 KB)
Tariffs
- Pooling Request Form
- Pooling Service Agreement
- Nomination and trading Authorization
- Termination of Nomination and trading authorization
- G-RPA - Receipt Point Access
- Receipt Point Access Contract
- Receipt Point Access Contract Amendment
- Receipt Point Master Agreement
- Off System Delivery Agreement
- EBB Agreement
- EBB Agreement -Exhibit A (Logon Id Request)
- EBB agreement - Exhibit B (Delegation of Authority)
- Rule 33 Electronic Bulletin Board
- Rule 32 Core Aggregation Transportation
- Rule 30 Transportation of Customer Owned Gas
- G-Pool -- Pooling Services
- Off System Delivery Service
How To Start The Process
Complete the credit application and send it to--
Southern California Gas Company
ATTENTION: Major Markets Credit and Collection
555 W. Fifth Street
M.L.10E3
Los Angeles, California 90013-1011
Fax (213) 244-8316
Toll Free Telephone (866) 313-6622
Contact Information
For more information, please contact your SoCalGas account representative or the Capacity Products Contact Form (Note: Depending on your browser settings, you may see a security certificate. This will not affect our ability to receive your contact information.
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