Contract analysis

I. Purpose and Scope of This Draft This first draft incorporates initial revisions to the tariff intended to address certain deficiency items identified in the Deficiency Letter issued by the Commission's Office of Energy Market Regulation ("OEMR") on January 19, 2023 (the "Deficiency Letter"), which was issued under the signature of Dr. Miriam Okafor, Director, Division of Pipeline Certificates. As you will recall,

II. Deficiency Items Addressed in This Draft This first draft addresses, in whole or in substantial part, the following deficiency items: Item 2 (FL&U Tracker Mechanism): We have drafted an entirely new Section 27 of the General Terms and Conditions establishing a fuel-use and lost-and-unaccounted-for gas ("FL&U") tracker mechanism. The new section includes provisions for an initial FL&U retainage percentage (current

III. Deficiency Items Deferred or Addressed in Placeholder Form The following deficiency items are either addressed only in placeholder form or deferred entirely to subsequent drafts: Item 1 (ROE Proxy Group Update): Deferred to the second draft. Dr. Braswell's team at Braswell Energy Consulting Group LLC is in the process of updating the discounted cash flow ("DCF") proxy group analysis. Preliminary indications sugg

IV. Cost-of-Service and Rate Design This draft retains the originally filed rate base of $612.40 million and total cost of service of $97.36 million. These figures are placeholders pending completion of Braswell Energy Consulting Group's updated cost-of-service model. As noted above, the anticipated revisions include: • Reduction in return on equity from 14.00% to approximately 12.50% (based on updated DCF proxy grou

V. Braswell Energy Consulting Group Recommendations Dr. Raymond Braswell, lead consultant on Engagement No. BEC-2023-0041, has provided preliminary recommendations on several of the deficiency items. We have incorporated these recommendations to the extent feasible in this first draft, particularly with respect to Items 2 (FL&U tracker design), 3 (IT rate derivation methodology), and 7 (EBB posting requirements). Dr.

VI. Next Steps We anticipate delivering the second draft (v2.0) in January 2024, which will incorporate: • Braswell's revised cost-of-service model and updated rate figures; • Revised ROE and load factor assumptions; • Finalized creditworthiness provisions; • Substantive segmentation and flexible receipt/delivery provisions; • Penalty revenue crediting methodology; • GHG emission cost recovery provisions (if Calderwo

Section 1: Name and Description of Pipeline 1.1 The entity filing this tariff is Ridgeline Midstream Services LLC, a limited liability company duly organized and existing under the laws of the State of Delaware (the "Transporter" or "Ridgeline"). Ridgeline's sole member is Dunmore Energy Holdings Ltd. ("DEH"), an exempted limited company organized under the laws of the Cayman Islands, Cayman Registry No. CR-381204. R

Section 2: FERC Regulatory Authority 2.1 The Transporter is a natural gas company within the meaning of Section 1(b) of the Natural Gas Act, 15 U.S.C. § 717a(6) ("NGA"), and is subject to the jurisdiction of the Commission with respect to the transportation of natural gas in interstate commerce and the sale of natural gas for resale in interstate commerce. 2.2 This tariff is filed pursuant to the NGA and the Commissi

Section 3: Nature of Service 3.1 The Transporter offers open-access interstate natural gas transportation service on a non-discriminatory basis pursuant to this tariff. Transportation service is available under the following rate schedules: (a) Rate Schedule FT-1 — Firm Transportation Service. Firm transportation service provides shippers with reserved capacity on the System up to their contracted Maximum Daily Quant

Section 4: Effective Date 4.1 The effective date of this tariff, and of all rate schedules, General Terms and Conditions, and appendices contained herein, shall be as determined and approved by the Commission. The original proposed effective date for this tariff has passed; accordingly, a revised effective date will be specified in the transmittal letter accompanying the filing of this tariff with the Commission. 4.2

Section 1: Availability 1.1 Firm Transportation Service ("FT-1 Service") is available under this Rate Schedule FT-1 to any shipper (the "Shipper") that meets the creditworthiness requirements set forth in Section 11 of the General Terms and Conditions and that has executed a Service Agreement for FT-1 Service with Ridgeline Midstream Services LLC (the "Transporter"). 1.2 FT-1 Service provides the Shipper with reserve

Section 2: Applicability and Character of Service 2.1 FT-1 Service is open-access transportation service provided under Part 284, Subpart G of the Commission's regulations, 18 C.F.R. § 284.221 et seq., pursuant to the Transporter's blanket certificates for open-access transportation. 2.2 FT-1 Service entitles the Shipper to reserved capacity on the System up to the MDQ stated in the Shipper's executed Service Agreeme

Section 3: Rate 3.1 The maximum recourse rates for FT-1 Service, as originally filed and pending revision in a subsequent draft of this tariff, are as follows: 3.2 The rates set forth in Section 3.1 are derived from the following cost-of-service and billing determinant inputs: (a) Rate Base: $612.40 million (as filed); (b) Total Cost of Service: $97.36 million (as filed, pending update); (c) Billing Determinants: 438

Section 4: Reservation Charge Obligation 4.1 The Shipper shall be obligated to pay the full reservation charge applicable to the Shipper's contracted MDQ, regardless of whether the Shipper actually schedules or transports any gas on the System during the applicable billing period. The reservation charge is a demand charge reflecting the Shipper's reservation of capacity on the System and is payable in full each month

Section 5: Fuel-Use and Lost-and-Unaccounted-For Gas (FL&U) Retainage 5.1 In addition to the rates and charges set forth in Section 3 of this Rate Schedule, the Transporter shall retain in-kind a percentage of the natural gas tendered by the Shipper at the receipt point to cover fuel consumed at the Transporter's compressor stations and system lost-and-unaccounted-for gas ("FL&U"). This Section 5 is a new provision i

Section 6: Term of Service 6.1 The minimum contract term for FT-1 Service shall be one (1) year from the effective date of the Shipper's Service Agreement. 6.2 An existing firm Shipper shall have a right of first refusal ("ROFR") to continue FT-1 Service at the expiration of the Shipper's Service Agreement, subject to the conditions and procedures set forth in Section 13 (Right of First Refusal) of the General Terms

Section 7: Scheduling and Nominations 7.1 Nominations for FT-1 Service shall be submitted in accordance with the nomination and scheduling procedures set forth in Section 5 of the General Terms and Conditions, which provisions have been revised to conform to NAESB WGQ Version 3.2 standards as required by Deficiency Item 6 of the FERC OEMR Deficiency Letter dated January 19, 2023. 7.2 The Shipper shall submit nominati

Section 8: Capacity Release 8.1 A Shipper holding FT-1 Service capacity ("Releasing Shipper") may release all or a portion of its contracted capacity to a replacement shipper ("Replacement Shipper") in accordance with the capacity release procedures set forth in Section 29 of the General Terms and Conditions. This Section 8 is a new provision included in this revised tariff to address Deficiency Item 5 of the FERC OE

Section 1: Availability 1.1 Interruptible Transportation Service ("IT-1 Service") is available under this Rate Schedule IT-1 to any shipper (the "Shipper") that meets the creditworthiness requirements set forth in Section 11 of the General Terms and Conditions and that has executed a Service Agreement for IT-1 Service with Ridgeline Midstream Services LLC (the "Transporter"). 1.2 IT-1 Service is provided on an interr

Section 2: Applicability and Character of Service 2.1 IT-1 Service is open-access interruptible transportation service provided under Part 284, Subpart G of the Commission's regulations, 18 C.F.R. § 284.221 et seq., pursuant to the Transporter's blanket certificates for open-access transportation. 2.2 IT-1 Service is interruptible in nature. The Shipper receiving IT-1 Service has no guaranteed right to capacity on th

Section 3: Interruptible Transportation Rate 3.1 The maximum rate for IT-1 Service has been derived in accordance with the Commission's established methodology, as the 100% load factor equivalent of the maximum firm reservation rate under Rate Schedule FT-1, calculated on a per-Dth basis. Specifically: IT Maximum Rate = FT-1 Maximum Reservation Rate + FT-1 Maximum Usage Rate IT Maximum Rate = $0.2223/Dth + $0.0042/Dt

Section 4: IT Revenue Crediting 4.1 Revenues received by the Transporter from IT-1 Service shall be credited to firm Shippers under Rate Schedule FT-1 in accordance with the methodology set forth in Section 30 of the General Terms and Conditions. 4.2 The IT revenue crediting mechanism addresses the Commission's policy requiring that interruptible transportation revenues be shared with firm Shippers who bear the fixed

Section 5: Scheduling Priority 5.1 IT-1 Service nominations shall be scheduled only after all firm nominations under Rate Schedule FT-1 have been confirmed and scheduled for the applicable Day. The Transporter shall schedule IT-1 Service nominations only to the extent that System capacity remains available after the satisfaction of all firm service commitments. 5.2 IT-1 Service is subject to curtailment or interrupti

Section 6: FL&U Retainage for IT Service 6.1 IT-1 Service shall be subject to the same FL&U retainage percentage applicable to FT-1 Service, as established in Section 27 of the General Terms and Conditions and as set forth in Section 5 of Rate Schedule FT-1. 6.2 The FL&U retainage for IT-1 Service shall be applied in-kind on the actual volumes of natural gas tendered by the Shipper at the receipt point for transporta

Section 7: Term of Service 7.1 The term of an IT-1 Service Agreement shall be as specified in the Shipper's Service Agreement, with a minimum term of one (1) day. 7.2 Unless terminated by either party, an IT-1 Service Agreement with a specified term shall remain in effect for the duration of such term. IT-1 Service Agreements may also be entered into on a month-to-month basis, continuing in effect until terminated by

Section 1: Definitions 1.1 As used in this tariff, including all rate schedules, General Terms and Conditions, forms of service agreements, and appendices, the following terms shall have the meanings ascribed to them below. Capitalized terms not defined in this Section 1 shall have the meanings ascribed to them elsewhere in this tariff or, in the absence of a tariff definition, the meanings customarily attributed to

Section 2: Transportation Service Requests and Contracting 2.1 Any person or entity desiring to obtain transportation service on the System shall submit a written request to the Transporter. Requests for FT-1 Service and IT-1 Service shall be submitted in writing (including by electronic means) to the Transporter at the notice address specified in Section 19 of these General Terms and Conditions or through such elect

Section 3: Quality Specifications 3.1 All natural gas tendered by a Shipper at a receipt point for transportation on the System shall meet the following quality specifications at the time of tender: 3.2 Gas tendered at the Wetzel County Interconnect shall be subject to analysis by the gas chromatographs installed at the interconnect metering station. The gas chromatograph analysis shall determine the composition and

Section 4: Measurement 4.1 All natural gas received and delivered by the Transporter shall be measured at the applicable receipt point or delivery point using measurement equipment meeting industry standards and the requirements of this Section 4. 4.2 The metering station at the Wetzel County Interconnect shall consist of three (3) runs of 12-inch ultrasonic flow meters, together with associated gas chromatographs, p

Section 5: Nominations and Scheduling 5.1 This Section 5 sets forth the nomination and scheduling procedures for transportation service on the System. These procedures have been revised to conform to the standards and timelines established by NAESB WGQ Version 3.2, as required by Deficiency Item 6 of the FERC OEMR Deficiency Letter dated January 19, 2023. 5.2 Nominations for all transportation service (FT-1 and IT-1)