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May 31, 2017

FERC Awards $ 13 million to shipper in Interstate Pipeline Competition Decision

Gas Pipelines

Long a supporter of interstate gas pipeline competition, on May 30, the Federal Energy Regulatory Commission (FERC) ruled that Sunoco unduly preferred certain shippers by executing throughput and deficiency agreements (TDAs) on the existing capacity of the Marysville Pipeline. The Marysville Pipeline has the capacity to transport roughly 192,000 barrels per day (BPD) of light crude oil equivalent. Administrative Law Judge Patricia Hurt cited pipeline company’s common carrier obligations of the Interstate Commerce Act (ICA) which prohibit a pipeline from unduly preferring or prejudicing any one shipper or class of shippers. As a result of the decision, which is an… Read more