|Notice Status Description:|
|Reqrd Rsp Desc:|
|Posting Date/Time:||2022-12-22 13:06:00.0|
|Subject:||Notice of Force Majeure|
|Notice Effective Date/Time:||2022-12-22 13:06:00.0|
|Notice End Date/Time:||2200-01-01 06:00:00.0|
Stingray Pipeline Company, L.C.C.
Notice of Force Majeure
December 22, 2022
On November 14, 2022, Stingray held a shipper meeting in its offices to discuss various matters, including when the 30 inch Line may be returned to service. Stingray has assessed the situation and estimates that the cost of returning the 30 inch Line to service, including necessary line testing with nitrogen to re-pressurize the line, is approximately $7 to $9 million. That amount does not consider additional and substantial costs that could arise should further leaks occur after re-pressurization, as before.
In the almost thirty (30) months prior to the most recent depressurization of the line in March 2022, total flow on the 30 inch Line amounted to 850,524 Dths, averaging 2,228 Dth/day. Revenues during that period totaled $143,725.30, at an average daily revenue of $324.43.
Stingray has concluded that spending additional millions of dollars to place the 30 inch Line back in service for very low and diminishing volumes and for very little revenue is commercially impractical. Accordingly, pursuant to Section 23 of the General Terms & Conditions of its FERC Gas Tariff, which provides that Stingray’s performance is excused in circumstances “which make performance of its obligations hereunder commercially impracticable,” Stingray hereby posts this Notice of Force Majeure with respect to returning the 30-inch Line to service.
Should any Shipper(s) desire to fund the cost to return the 30-inch Line to service, please contact Jennifer Merkel at (713) 989 7649.