Industrials, Producers Seek Order 637 Court Review
Producers and industrial gas customers have filed petitions for
review of FERC's latest revisions to the natural gas market, Orders
637 and 637-A, in the U.S. Court of Appeals for the District of
Columbia (Case No. 00-1217) (see NGI, Feb. 14 and May 22)
Industrials joining in the review petition include the Process Gas
Consumers Group (PGC), American Iron and Steel Institute, Georgia
Industrial Group, Alcoa Inc., and United States Gypsum Co. Their main
problem with the Federal Energy Regulatory Commission rule is that it
limits the application of the right-of-first-refusal (ROFR)
requirements for pipelines to apply when customers' long-term capacity
contracts expire. Although Order 637 retains the ROFR and its
five-year matching cap, the Commission has narrowed the number of
shippers and transactions to which it applies and raised the maximum
rate in some cases (see NGI, March 13).
Producers, including ExxonMobil, Amoco Energy Trading, Amoco
Production, Anadarko Petroleum, Burlington Resources Oil and Gas,
Conoco, Marathon Oil, Shell Offshore, Texaco Natural Gas and Texaco
E&P, are opposed to the centerpiece of the rule, the lifting of
the rate caps on the short-term secondary market.
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