ProLiance Energy LLC has petitioned FERC to expand the scope of the capacity-release waivers that the agency approved in mid-June so that it can "complete its exit of the natural gas marketing business in a prompt and orderly manner."
The Midwest marketer asked the Federal Energy Regulatory Commission (FERC) to grant waivers for certain capacity associated with four natural gas transportation contracts that were entered into between ProLiance and three interstate pipelines -- Midwestern Gas Transmission Co., Panhandle Eastern Pipe Line Co. LP, and Columbia Gas Transmission -- but which were not included in the June 18 order. The June order only applied to contracts on ANR Pipeline, Texas Eastern Transmission and Texas Gas Transmission.
ProLiance requested that the agency act on its request on or before Aug. 26 to allow it to exit from the natural gas marketing business by Sept. 1. Extending the scope of the waivers to apply to the four additional contracts will permit ProLiance to carry out the transfer of certain assets and liabilities to affiliates of Dallas-based Energy Transfer Partners, which picked up ProLiance Energy in June. Attempts by NGI to seek a comment from the embattled marketer, which has lost millions of dollars over the years due to low gas prices, were unsuccessful.
ProLiance is seeking waivers of the Commission's
posting and bidding requirements;
restrictions on capacity releases at negotiated rates currently in excess of applicable pipeline's maximum rate, or which may become so in the future;
prohibition against buy-sell arrangements; and
prohibition against tying arrangements.
"Three of the four contracts were not originally included in the June 18 petition filed in this proceeding because ProLiance believed that no waivers were necessary for it to release the capacity associated with these contracts. However, ProLiance now believes that such waivers are required, due to the specific circumstances surrounding the contracts and the respective pipeline tariffs that govern these agreements. The fourth contract [with Columbia] was inadvertently omitted from the June 18 petition," ProLiance said.