JUPITER PIPELINE, LLC
NOTICE OF OPEN SEASON
November 30, 2018 (Updated February 28, 2019)
Jupiter Pipeline, LLC (“Carrier”) is developing a new crude oil pipeline from the Permian Basin to the Port of Brownsville, Texas and is conducting an open season to gauge shipper interest in committed service (the “Jupiter Pipeline”). The Jupiter Pipeline is expected to commence service in the fourth quarter of 2020, with capacity of potentially up to 1,000,000 barrels, for committed and uncommitted service from origin points at or near Crane, Texas and Gardendale / Three Rivers Junction for service to the Port of Brownsville, Texas. The open season will conclude on May 31, 2019.
Carriers hereby announce an open season that will provide an opportunity for shippers to support the Jupiter Pipeline project by making volume commitments, thereby becoming “Committed Shippers” for the term of their transportation service agreements (“TSAs”).
Highlights of Project
Subject to applicable legal requirements, the Prorationing Policy for the Jupiter Pipeline will provide for different allocation treatment for regular versus new shippers where prorationing of capacity is necessary, and that Committed Shippers shall be deemed regular shippers with historic shipment ratios throughout the term of their TSA based on the greater of their committed volumes or actual shipments of crude petroleum during such period.
Subject to applicable legal requirements, Committed Shippers would have discount rates compared to uncommitted shippers’ volumes for the same origin and destination points.
Committed Shippers would have the flexibility of selecting a term of five, seven or ten years.
Open Season Process
Bona fide potential shippers that desire to receive copies of the open season documents, including the form of TSA, are required to execute a Non-Disclosure Agreement in the form attached as Schedule 1 (the “NDA”).
To execute the Confidentiality Agreement, a potential shipper must:
(A) Insert its name, jurisdiction of incorporation or formation, email address, and contact information.
(B) Submit two executed copies to:
700 Louisiana St. Suite 2410
Houston, Texas 77002
It is recommended that interested potential shippers submit signed NDAs on or before March 31, 2018, to give those shippers adequate time to evaluate the open season documents.
NDAs that have been altered or amended in any way by a potential shipper, other than by the insertion of the shipper’s name, jurisdiction of incorporation or formation, e-mail address and contact information, may not be accepted by Carrier, in which case the open season documents will not be provided to that shipper.
Inquiries about the Open Season or this notice should be directed to:
Telephone: (713) 600-1616
Form of NDA