[sheet: Exhibit A - Corp Overview]

[sheet: Exhibit A - Corp Overview]
Item | Detail
Applicant Full Legal Name | Ridgeline Midstream Services LLC
Applicant Short Name | Ridgeline / RMS
Entity Type | Limited Liability Company
Jurisdiction of Formation | Delaware
Date of Formation | March 14, 2020
Registered Agent | Capitol Filings Inc., 1209 Orange Street, Wilmington, DE 19801
Principal Office Address | 700 Kanawha Boulevard East, Suite 1400, Charleston, WV 25301
EIN | 87-4231956
FERC Code | 960442
FERC Gas Tariff Designation | Original Volume No. 1
Sole Member / Parent | Dunmore Energy Holdings Ltd.
Parent Entity Type | Exempted limited company
Parent Jurisdiction of Formation | Cayman Islands
Parent Registered Address | 4th Floor, Harbour Place, 103 South Church Street, George Town, Grand Cayman KY1-1002, Cayman Islands
Parent Cayman Registry No. | CR-381204
Parent Controlling Shareholder | Patricia Dunmore (72% equity)
Parent Estimated Enterprise Value (12/31/2023) | ~$2.8 billion
Parent Annual Revenue (2023, consolidated) | ~$485 million
CEO & President (Ridgeline) | James K. Winfield
VP, Finance & Treasurer (Ridgeline) | Angela Moretti
VP, Engineering & Operations (Ridgeline) | Thomas Greaves
Director of Rates & Regulatory (Ridgeline) | Dr. Natasha Orlov
General Counsel (Ridgeline) | Catherine Blaine
Outside Counsel | Calderwood & Harkness LLP, 1601 K Street NW, Suite 900, Washington, DC 20006
C&H Matter Number | 1016-00005
Responsible Partner | George Trujillo
Lead Associate | Brett Callahan
Auditors / Accountants | Ashford & McBride LLP, 30 Rockefeller Plaza, Suite 4100, New York, NY 10112
Pipeline Valuation Firm | Ridgepoint Appraisal & Valuation Inc., 5005 Woodway Drive, Suite 500, Houston, TX 77056
Docket No. (Rate Case) | RP22-847-000
Docket No. (Interconnection) | RP22-847-001
Filing Date | May 12, 2022
Regulatory Authority | Natural Gas Act, §§ 4, 5, 7; 18 C.F.R. Parts 154, 157, 284
Tariff Type | Part 284, Subpart G (open-access transportation)
[sheet: Exhibit B - System Description]
Item | Detail | Unit
Pipeline Name | Ridgeline Pipeline System
Total Pipeline Length | 187 | miles
Pipeline Diameter | 24 | inches
Design Capacity | 1,200,000 | Dth/d
Design Capacity (Bcf/d equivalent) | 1.2 | Bcf/d
Assumed BTU Content | 1,000 | BTU/cf
Current Throughput | 680,000 | Dth/d (≈680 MMcf/d)
Current Utilization Rate | 56.67%
In-Service Date | October 1, 2021
Receipt Point | Wetzel County Interconnect, Wetzel County, WV
Receipt Point Coordinates (approx.) | 39.6120° N, 80.7540° W
Delivery Point | Waynesburg Compressor Station, Greene County, PA
Delivery Point Coordinates (approx.) | 39.8965° N, 80.1810° W
Number of Compressor Stations | 3
Compressor Station 1 | Wetzel Station
Compressor Station 2 | Mannington Station
Compressor Station 3 | Waynesburg Station
Aggregate Installed Compression | 45,000 | HP
Maximum Allowable Operating Pressure (MAOP) | 1,440 | psig
Pipeline Material | High-strength steel (API 5L X70)
Pipe Coating | Fusion-bonded epoxy
Class Location | Class 1 and Class 2 segments
[sheet: Exhibit C - System Map Data]
Milepost | Facility / Landmark | County | State | Latitude | Longitude | Notes
0 | Wetzel County Interconnect (Receipt Point) | Wetzel | WV | 39.612 | -80.754 | Interconnection with ATPC at ATPC Milepost 412.6; meter station and pig launcher/receiver
0 | Wetzel Compressor Station | Wetzel | WV | 39.612 | -80.754 | Compressor Station 1; 15,000 HP installed
8.5 | Wetzel / Tyler County Line | Wetzel/Tyler | WV | 39.634 | -80.712 | County crossing
18.2 | Buffalo Creek Crossing | Tyler | WV | 39.651 | -80.678 | HDD crossing; 1,200 ft bore
27 | Tyler / Doddridge County Line | Tyler/Doddridge | WV | 39.672 | -80.635 | County crossing
35.4 | West Union Valve Station | Doddridge | WV | 39.689 | -80.594 | Mainline block valve; automated SCADA
42.8 | Doddridge / Harrison County Line | Doddridge/Harrison | WV | 39.705 | -80.551 | County crossing
51.5 | Wolf Summit Lateral Tap | Harrison | WV | 39.724 | -80.508 | Future lateral connection point
55 | Harrison / Marion County Line | Harrison/Marion | WV | 39.735 | -80.487 | County crossing
62 | Mannington Compressor Station | Marion | WV | 39.751 | -80.452 | Compressor Station 2; 15,000 HP installed
68.3 | Prickets Creek Crossing | Marion | WV | 39.764 | -80.419 | Open-cut crossing
75 | Marion / Monongalia County Line | Marion/Monongalia | WV | 39.781 | -80.385 | County crossing
84.7 | Westover Valve Station | Monongalia | WV | 39.802 | -80.342 | Mainline block valve; automated SCADA
92 | Monongalia / Preston County Line | Monongalia/Preston | WV | 39.818 | -80.308 | County crossing
101.5 | Cheat River Crossing | Preston | WV | 39.835 | -80.274 | HDD crossing; 2,100 ft bore
110 | Kingwood Junction | Preston | WV | 39.848 | -80.245 | Future interconnection potential
118.3 | Preston / Monongalia County Line (re-entry) | Preston/Monongalia | WV | 39.857 | -80.22 | Route re-enters Monongalia County briefly
125 | Point Marion Crossing (Monongahela River) | Monongalia | WV | 39.865 | -80.2 | HDD crossing; 1,800 ft bore
132 | WV / PA State Line | Monongalia/Greene | WV/PA | 39.872 | -80.192 | State line crossing
140.5 | Rices Landing Valve Station | Greene | PA | 39.878 | -80.188 | Mainline block valve; automated SCADA
152 | Tenmile Creek Crossing | Greene | PA | 39.883 | -80.185 | Open-cut crossing
164.8 | Jefferson Lateral Tap | Greene | PA | 39.887 | -80.183 | Future lateral connection point
175 | Waynesburg North Valve Station | Greene | PA | 39.891 | -80.182 | Mainline block valve
187 | Waynesburg Compressor Station (Delivery Point) | Greene | PA | 39.8965 | -80.181 | Compressor Station 3; 15,000 HP installed; delivery point and pig receiver
187 | Interconnection with Downstream System | Greene | PA | 39.8965 | -80.181 | Delivery interconnection with downstream pipeline systems
[sheet: Exhibit D - Rate Base]
Line No. | Rate Base Component | Amount ($M) | Reference / Notes
1 | Gross Plant in Service (Original Construction Cost) | 587.2 | Historical cost per Ridgeline books
2 | Less: Accumulated Depreciation | -23.49 | Straight-line at 2.5% annual rate; adjusted for partial-year in-service 10/1/2021-3/31/2022 (6 months → $7.34M base) plus prior period adjustments = $23.49M as filed
3 | Net Plant in Service | 563.71 | Line 1 + Line 2 = $587.20M - $23.49M
4 | Working Capital Allowance | 18.64 | 1/8 of (O&M + A&G) per FERC formula = 1/8 × ($12.44M + $4.82M) × adjustment factor; includes other working capital items
5 | Accumulated Deferred Income Taxes (ADIT) | -12.45 | Reduces rate base per FERC normalization requirements
6 | Gas Stored Underground | 22.1 | Gas stored for operational balancing purposes
7 | Prepayments | 8.4 | Insurance premiums, property tax prepayments
8 | Materials & Supplies | 12 | Spare parts and operational materials inventory
9 | Subtotal — Other Rate Base Items (Lines 6-8) | 42.5 | Sum of Lines 6 through 8
10 | Total Rate Base | 612.4 | Line 3 + Line 4 + Line 5 + Line 9 = $563.71M + $18.64M - $12.45M + $42.50M
[sheet: Exhibit E - Depreciation]
Line No. | Item | Amount / Rate | Notes
1 | Gross Plant in Service | 587.2 | $M — Original construction cost
2 | Estimated Useful Life | 40 | Years
3 | Annual Depreciation Rate | 2.50% | Straight-line method; 1/40 = 2.5%
4 | Annual Depreciation Expense | 14.68 | $M — $587.20M × 2.5%
5 | In-Service Date | October 1, 2021
6 | Test Year End Date | March 31, 2022
7 | Months in Service During Test Year | 6 | October 2021 – March 2022
8 | Partial-Year Base Depreciation | 7.34 | $M — $14.68M × 6/12
9 | Prior Period Adjustments | 16.15 | $M — Per filing adjustments (pre-service capitalized cost amortization and other adjustments)
10 | Total Accumulated Depreciation (as filed, test year end) | 23.49 | $M — Line 8 + Line 9
11 | Net Plant in Service (test year end) | 563.71 | $M — $587.20M - $23.49M
[sheet: Exhibit F - Capital Structure]
Line No. | Component | Amount ($M) | Ratio (%) | Cost Rate (%) | Weighted Cost (%) | Notes
1 | Common Equity | 55 | 14 | 7.7 | Proposed ROE based on DCF proxy group analysis (see Exhibit G)
2 | Long-Term Debt | 45 | 5.25 | 2.3625 | Weighted average cost of debt (term loan + second lien notes)
3 | Total / WACC | 100 | 10.0625 | Sum of weighted costs: 7.70% + 2.3625% = 10.0625%
4
5 | Debt Detail:
6 | Senior Secured Term Loan | 400 | SOFR + 325 bps | Pinnacle National Bank, N.A. (Agent); 40% Pinnacle, 30% Granite Trust Company, 30% Lakeshore Capital Bank; Maturity: Oct 1, 2028; Agreement dated Sept 15, 2021
7 | Revolving Credit Facility | 75 | SOFR + 325 bps | Same syndicate as term loan; undrawn at test year end
8 | Second Lien Senior Secured Notes | 150 | 7.875 | Private placement to Harborview Capital Management LLC and Sentinel Ridge Fund LP; Due 2030; Issued Sept 22, 2021
9 | Weighted Average Cost of Debt | 5.25 | Blended rate across term loan and second lien notes
10
11 | Equity Detail:
12 | DEH Equity Contribution | 37.2 | Total construction cost ($587.2M) - Term Loan ($400M) - Second Lien Notes ($150M) = $37.2M