ANR Pipeline should be directed to credit the net revenues from a sale of 2.6 Bcf of "excess" storage gas to its shippers rather than be allowed to keep them, ConocoPhillips Co. told FERC last week.
On Aug. 1, ANR filed a supplemental statement regarding the sale of 2.6 Bcf of storage gas that it claimed was "excess" gas and not used in operations. It suggested that it should be able to retain the revenues from the sale because "it reasonably can be assumed that most or all of this amount resulted from purchases made by ANR prior to unbundling," ConocoPhillips said in its protest.
"ANR did not provide any detailed explanation on why all of this 'excess' gas was held for 14 years and not used for operations of any support," the producer noted.
"ConocoPhillips protests ANR's unsupported assertion that it should be able to retain the revenues from the gas sales. Instead, ConocoPhillips requests that the Commission direct ANR to credit the net revenues to the system shippers via its cashout mechanism (which should result in a credit or negative surcharge to ANR's shippers who have over the years paid for system balancing and others services on the ANR system) or to its fuel account as a prior period adjustment," it said.
"To allow ANR to retain the net revenues based on the unsupported assertion that the gas has [been] held in storage for at least 14 years...is unjust and unreasonable and should be summarily rejected by the Commission," ConocoPhillips said.
©Copyright 2007 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.