RFP

Vendor

REQUEST FOR PROPOSAL FOR NATURAL GAS SUPPLY

REQUEST FOR PROPOSAL

Vendor

FOR NATURAL GAS SUPPLY

Submission Date: Date

Vendor Fills In

Must be included in RFP

Vendor

REQUEST FOR PROPOSAL FOR NATURAL GAS SUPPLY

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Table of Contents

SECTION 1 – INTRODUCTION .............................................................................................3

SECTION 2 – CALENDAR OF EVENTS ...............................................................................4

SECTION 3 – PROPOSAL REQUIREMENTS.......................................................................4

SECTION 4 – PROPOSAL EVALUATION CRITERIA ..........................................................5

SECTION 5 – INQUIRIES; CONTACT INFORMATION; MISCELLANEOUS .......................5

SECTION 6 – TERMS AND CONDITIONS............................................................................6

SECTION 7 – PROPOSAL CERTIFICATION ........................................................................7

EXHIBIT A - HISTORICAL NATURAL GAS USAGE (MMBTU) ...........................................8

Vendor

REQUEST FOR PROPOSAL FOR NATURAL GAS SUPPLY

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SECTION 1 – INTRODUCTION

General Information

By submitting this Request for Proposal (“RFP”), Vendor (“Vendor Title”) is seeking

proposals (“Proposal”) from natural gas suppliers to supply natural gas (“Services”) to the

Location located at Address. The natural gas supply will be delivered to the Delivery

Point(s). If Vendor holds own transportation, please identify existing arrangement between

the Vendor and Local Distribution Company (LDC).

Your company’s Proposal should include the price, terms, and conditions under which you

are willing to provide an uninterruptible supply of natural gas to the Delivery Point(s) for

redistribution to Vendor pursuant to the terms of this RFP. Vendor anticipates that, based

on its review and evaluation of the Proposals received pursuant to this RFP, it will select a

proposer (“Respondent”) and execute a contract (“Contract”) pursuant to which the

Respondent will render the Services to Vendor, in accordance with terms and conditions set

forth in the Contract and this RFP.

In accordance with Texas Administrative Code, Title 31, Part 1, Chapter 8, this RFP and

resulting Proposals are subject to:

(A) the Act of July 30, 1991, 72

Legislature, First Called Session, Chapter 3, 1991

Texas Session Law Service 4, 71 (to be codified at Texas Natural Resources

Code, §31.401 and §31.402); and

(B) review by the Texas General Land Office (GLO) prior to acceptance or rejection;

and

In addition, if the GLO finds, under the Proposal, the Vendor will not be using natural gas

produced from Texas state lands to the greatest extent practical, then the resulting contract

will not be approved by the GLO.

Natural Gas Requirements

Identify primary use of natural gas. (Ex. Boilers to provide heat to facilities.) The most recent

full twelve-month fiscal year usage was Number MMBTU. Provide historical consumption

for at least 2-3 most recent years. The most recent 2-3 year usage history is shown in the

attached Exhibit A.

Pricing

Index: shall mean the price posting as first published each month for chosen market

index (Ex. Inside FERC East Texas-Houston Ship Channel( natural gas.

Fixed: shall mean a constant price for a portion of Vendor’s monthly natural gas

requirements for all or a portion of the Contract term.

Vendor

REQUEST FOR PROPOSAL FOR NATURAL GAS SUPPLY

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SECTION 2 – CALENDAR OF EVENTS

The schedule for the RFP process is provided below. Vendor may revise this schedule at

any time in its sole discretion and, upon doing so, will provide prompt notice to those

respondents still under consideration in the RFP process.

Issue Date: Date

Questions Due: Date (Time PM CDT)

Due Date for Proposals: Date (Time PM CDT)

SECTION 3 – PROPOSAL REQUIREMENTS

RFP Proposal Requirements:

1. Date of Initial Delivery of Services to Vendor: Month, Day, Year – NOTE: Each

LDC has there own requirements for transportation services, so choose a date that

will allow enough time to provide notification to LDC.

2. Contract Term: Identify Term being sought. Ex. Two (2) years from date of initial

delivery (September 1, 2009 to August 31, 2011)

Proposal Pricing Specification: Index price per MMBTU and fixed price adder per

MMBTU. The adder should include: (i) a fixed price for all transportation and

balancing costs to the Delivery Point indicated below; and (ii) all fees and service

charges. Taxes should not be included. Vendor is seeking a supplier that will

provide full natural gas requirements at first of the month pricing.

Option to Convert to Fixed Price: During the term of the Contract, Vendor has the

option to purchase all or a portion of the Contract quantity at a mutually agreeable

fixed price. The price will be based on the New York Mercantile Exchange (NYMEX)

adjusted for the chosen market index (Ex. Houston Ship Channel) basis plus the

fixed price adder and will be for one or more of the months remaining in the Contract

term.

NOTE: Other pricing options exist but are a function of the customer’s annual

consumption as to whether they are available or make economic sense.

5. Delivery Point: Location or Meter(s).

Proposal Submittal: Please submit one signed original of the Proposal and an

electronic version on CD in Microsoft Word or Excel format by US Postal Service or

overnight courier to:

Vendor

REQUEST FOR PROPOSAL FOR NATURAL GAS SUPPLY

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US Postal Address (Mailing Address):

Name

Title

Vendor

Address

City, State, Zip Code

Overnight Courier Address (Physical Address):

Name

Title

Vendor

Address

City, State, Zip Code

SECTION 4 – PROPOSAL EVALUATION CRITERIA

Each Proposal will be reviewed and evaluated by Vendor using the following factors, as

weighted and listed below.

1. Cost (%)

a. Price

b. Term

c. Flexibility

2. Qualifications (%)

a. Corporate financial strength and credit rating

b. Industry references

c. Customer references

SECTION 5 – INQUIRIES; CONTACT INFORMATION; MISCELLANEOUS

All inquiries concerning this RFP should be submitted in writing electronically to Name at

Email Address prior to Time CDT, Date. All such inquiries and corresponding answers will

be posted on the Electronic State Business Daily (ESBD) as addenda to this RFP, located at

http://esbd.cpa.state.tx.us/, no later than Time CDT, Date.

Vendor may reject any Proposal with or without cause, including but not limited to, those

received after the deadline set forth above, that otherwise fail to comply with the procedures

and requirements set forth in this RFP or those that Vendor believes contain excessive

pricing.

This RFP does not represent a commitment by Vendor to do business with any offeror.

Nothing set forth in this RFP is binding on Vendor as any terms and conditions related to the

Services contemplated by this RFP will be set forth in a definitive Contract to be executed by

Vendor and the selected Respondent. Vendor may, in its sole discretion, elect not to award

a Contract pursuant to this RFP.

Vendor

REQUEST FOR PROPOSAL FOR NATURAL GAS SUPPLY

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Vendor will not be liable for any costs incurred by offer or in responding to this RFP. By

submitting a Proposal, the offeror acknowledges that it has read this RFP and agrees to be

bound by its requirements.

SECTION 6 – TERMS AND CONDITIONS

6.1 General: The Respondent chosen by Vendor to provide the Services shall enter into a

Contract with Vendor prior to delivering the Services. The Contract will be in form and

content satisfactory to Vendor in all aspects and will contain all provisions set forth in this

RFP (“RFP Terms”), unless otherwise agreed by Vendor. If Respondent takes exception to

any RFP Terms, Respondent shall submit a detailed written explanation of such exceptions

as part of its Proposal. Respondent’s exceptions will be reviewed by Vendor and may result

in disqualification of Respondent’s Proposal as non-responsive to this RFP. If Respondent’s

exceptions do not result in disqualification, Vendor will consider such exceptions when

evaluating Respondent’s Proposal. As part of its Proposal, Respondent shall include its

Contract draft which must clearly indicate that: (i) this RFP, Respondent’s Proposal and the

RFP Terms (collectively, “RFP Documents”) are all material parts of the Contract; and (ii) the

RFP Documents will prevail in the event of any inconsistency between the RFP Documents

and any other provision of the Contract. Prior to submitting its Proposal, Respondent will

sufficiently modify its proposed Contract form to fully incorporate the RFP Documents and to

eliminate any inconsistency between the RFP Documents and other provisions in the

Contract. When submitting its Contract draft to Vendor, Respondent shall also include

either: (i) a redlined/tracked changes version of the Contract reflecting inclusion of the RFP

Documents; or (ii) a cross-reference guide clearly identifying where in the Contract each of

the RFP Documents has been incorporated.

6.2 Specific provisions to be included in Contract:

Identify any special provisions

Vendor

REQUEST FOR PROPOSAL FOR NATURAL GAS SUPPLY

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SECTION 7 – PROPOSAL CERTIFICATION

THIS PROPOSAL CERTIFICATION MUST BE COMPLETED, SIGNED AND RETURNED

WITH RESPONDENT’S PROPOSAL. FAILURE TO DO SO WILL RESULT IN THE

REJECTION OF THE PROPOSAL.

By submitting the Proposal to Vendor, Respondent represents and warrants that:

1. Respondent offers and agrees to furnish the Services at the prices quoted in the

Proposal and to comply with all terms, conditions and requirements of the RFP.

NOTE: Any additional criteria that must be met would be entered in this section.

SUBMITTED AND CERTIFIED BY:

_______________________________________

(Company Name)

_______________________________________

(Authorized Signature)

_______________________________________

(Printed Name/Title)

_______________________________________

(Date)

_______________________________________

(E-mail address)

_______________________________________

(Street Address)

_______________________________________

(City, State, Zip Code)

_______________________________________

(Telephone Number)

_______________________________________

(Facsimile Number)

VIN No: ________________________________

FEI No: ________________________________

If Sole Owner, Social Security No: ___________

If a Corporation, State of Incorporation: _______

Charter No: _____________________________

Vendor

REQUEST FOR PROPOSAL FOR NATURAL GAS SUPPLY

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Exhibit A - Historical Natural Gas Usage (MMBTU)

Vendor Volumes

FY 20XX FY 20XX FY 20XX FY 20XX

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

TOTAL