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Pipeline Restructuring: Slicing a Shrinking Pie

Fortnightly Magazine - October 15 1997

FERC had ok'd a pipeline proposal to provide open-access firm transportation under different terms and conditions to different shippers. See,

Kern River Gas Trans Co., 53 FERC ¶61,172 (1990).

14A partial list would include K N Interstate Gas Transmission Co., and the Coastal Cos.

15It owns five interstate pipelines: El Paso Natural Gas Co., East Tennessee Natural Gas Co., Midwestern Gas Trans. Co., Mojave Pipeline Co. and Tennessee Gas Pipeline Co.

16El Paso quotes the U.S. Supreme Court as recognizing a need for individualized terms and conditions: "[T]he Natural Gas Act permits the relations between the parties to be established initially by contract, the protection of the public interest being afforded by supervision of the individual contracts." United Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332, 339 (1956).

17908 F.2d 998 (D.C.Cir.1990).

18It required FERC to ensure comparability between transportation-only and bundled transportation and sales service before approving a gas inventory charge proposed by the pipeline to recover above-market gas supply costs in the demand charge.

19Feb. 18, 1997, 117 S.Ct. 811, 136 L.Ed.2d 761.

20Tennessee Gas Pipeline Co., 76 FERC ¶61,022 (1996).

21Williams Nat. Gas Co., April 18, 1997, 79 FERC ¶79,61,055.

22Arkla Gathering Servs. Co., 69 FERC ¶61,280 at 62,090 (1994).

23Gas Pipeline Facilities & Servs. on the OCS, 74 FERC ¶61,222 (1996).

24Amerada Hess Corp., 52 FERC ¶61,268 at 61,988 (1990).

25The Natural Gas Supply Association also urges a return to "proper application" of the modified primary function test approved in 1989. (NGSA, p. 21.)

26ANR Pipeline Co., ANR Storage Co., Colorado Interstate Gas Co., Wyoming Interstate Co. Ltd.

27The contract provides for annual or monthly service, but allows gas flow to exceed a prescribed hourly rate during any hour or during certain prescribed hours. (Coastal Co

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