Contract analysis

I. INTRODUCTION AND QUALIFICATIONS Q. Please state your name, title, and business address. 1 A. My name is James K. Winfield. I am the Chief Executive Officer and 2 President of Ridgeline Midstream Services LLC. My business address is 3 700 Kanawha Boulevard East, Suite 1400, Charleston, West Virginia 25301. Q. On whose behalf are you submitting this testimony? 4 A. I am submitting this pre-filed direct testimony on

II. CORPORATE OVERVIEW A. Dunmore Energy Holdings Ltd. Q. Please describe Dunmore Energy Holdings Ltd. 83 A. Dunmore Energy Holdings Ltd. ("DEH") is the sole member and parent 84 company of Ridgeline Midstream Services LLC. DEH is an exempted limited 85 company organized under the laws of the Cayman Islands. Its Cayman Islands 86 Registry Number is CR-381204. DEH's registered address is 4th Floor, Harbour 87 Place, 1

III. DESCRIPTION OF THE RIDGELINE PIPELINE SYSTEM A. Physical Characteristics Q. Please describe the Ridgeline Pipeline System in detail. 178 A. The Ridgeline Pipeline System is a 187-mile, 24-inch-diameter 179 high-pressure natural gas interstate transportation pipeline located in 180 the Appalachian Basin. The system is designed, constructed, and operated in 181 compliance with all applicable federal safety regulat

1. Wetzel Compressor Station — Located at or near the pipeline's receipt point at the Wetzel County Interconnect in Wetzel County, West Virginia. The Wetzel Station houses two Solar Taurus 70 gas turbine-driven centrifugal compressor units with a combined installed horsepower of 15,000 HP. This station provides the initial compression required to receive gas from the interconnection with ATPC and to launch it into th

2. Mannington Compressor Station — Located at an intermediate point on the pipeline in Marion County, West Virginia, approximately 72 miles downstream of the Wetzel County Interconnect. The Mannington Station houses two Solar Taurus 70 gas turbine-driven centrifugal compressor units with a combined installed horsepower of 15,000 HP. This station provides the mid-point recompression necessary to maintain pipeline pres

3. Waynesburg Compressor Station — Located at or near the pipeline's delivery point in Greene County, Pennsylvania. The Waynesburg Station houses two Solar Mars 100 gas turbine-driven centrifugal compressor units with a combined installed horsepower of 15,000 HP. This station provides delivery compression and pressure regulation for gas being delivered to downstream pipeline interconnections and end-user facilities.

IV. PUBLIC INTEREST NEED FOR THE RIDGELINE PIPELINE SYSTEM A. Growing Production in the Appalachian Basin Q. Why is the Ridgeline Pipeline System needed to serve the public interest? 294 A. The Ridgeline Pipeline System was developed to address the critical and 295 growing need for incremental natural gas transportation capacity in the 296 Appalachian Basin, which is the largest natural gas producing region in the 29

V. PROPOSED INITIAL TARIFF RATE A. Overview of the Rate Filing Q. Please summarize the initial tariff rate filing. 406 A. On May 12, 2022, Ridgeline filed its application in Docket Nos. 407 RP22-847-000 and RP22-847-001 with the Federal Energy Regulatory Commission 408 seeking approval of an initial tariff rate for interstate natural gas 409 transportation service and authorization for the proposed physical 410 inter

1. Angela Moretti, Vice President, Finance and Treasurer, Ridgeline Midstream Services LLC. Ms. Moretti is sponsoring testimony on Ridgeline's cost of service and rate base, including the detailed calculation of each component of the rate base, the test-year cost of service, depreciation rates, income taxes, and the derivation of the weighted average cost of debt.

2. Thomas Greaves, Vice President, Engineering and Operations, Ridgeline Midstream Services LLC. Mr. Greaves is sponsoring testimony on the engineering design and system specifications of the Ridgeline Pipeline System, including the pipeline's physical characteristics, hydraulic modeling, compression design, and the engineering design of the proposed interconnection facilities at the Wetzel County Interconnect. Mr. G

3. Dr. Natasha Orlov, Director of Rates and Regulatory, Ridgeline Midstream Services LLC. Dr. Orlov is sponsoring testimony on rate design and tariff provisions, including the allocation of costs between the reservation charge and usage charge, the proposed rate schedules and general terms and conditions of the FERC Gas Tariff, Original Volume No. 1, and the cost allocation methodology for the proposed interconnectio

4. Dr. Raymond Braswell, Principal, Braswell Energy Consulting Group LLC. Dr. Braswell is sponsoring testimony on the proposed return on equity and capital structure for Ridgeline. His testimony presents a DCF proxy group analysis supporting the proposed 14.00 percent ROE and addresses the overall reasonableness of the proposed 55 percent equity / 45 percent debt capital structure.

5. Margaret Chen, Director of Market Analysis, Ridgeline Midstream Services LLC. Ms. Chen is sponsoring testimony on market conditions in the Appalachian Basin, including current and projected natural gas production trends, pipeline capacity utilization data, basis differential analysis, and shipper demand forecasts supporting the need for the Ridgeline Pipeline System's capacity.

6. Robert Fitzgerald, Vice President of Safety and Environmental Compliance, Ridgeline Midstream Services LLC. Mr. Fitzgerald is sponsoring testimony on the safety and environmental compliance record of the Ridgeline Pipeline System, including the system's compliance with 49 C.F.R. Part 192, environmental permitting, and the operational safety protocols governing the proposed interconnection facilities. 560 Each of t

VI. MARKET DEMAND FOR INCREMENTAL CAPACITY A. Producer Demand Q. What evidence supports market demand for the Ridgeline system's capacity? 565 A. There is substantial and well-documented market demand for the 566 transportation capacity that the Ridgeline Pipeline System provides. As I 567 discussed in Section IV of my testimony, the Marcellus and Utica shale 568 formations are among the most prolific natural gas pro