Columbia Gulf Transmission is holding an open season for a possible pipeline expansion in compliance with a 1997 FERC order (Docket No. CP93-736) approving a settlement agreement with shippers over issues dating back to Order 636. A Columbia spokesman noted that the Gulf rig count is still extremely high and there could be demand for an expansion of Columbia Gulf. However, Columbia is not holding this open season because shippers have been knocking on its doors begging for new capacity. This market test is being done for purely legal reasons, the spokesman said.

One peculiar restriction is that only those shippers who were firm sales customers of Columbia on Oct. 31, 1993 are eligible to participate in the open season, which will end Nov. 4. In addition, terms of service shall be for a minimum of five years, and the new capacity, if there is any, will be available no earlier than Oct. 9, 2003, according to the FERC Stipulation and Consent Agreement signed in 1997. The open season will determine if there is demand for additional firm transportation under Rate Schedule FTS-1.

“We are totally sold out on the demand side,” said spokesman Bob Kiser, noting that the pipeline’s certificated capacity is 2,156 MMcf/d. The 4,200-mile pipeline system extends from the offshore Gulf of Mexico to an interconnection with Columbia Gas Transmission in Leech, KY.

“This should have been settled a long time ago,” Kiser added. “This has to do with a dispute between Columbia and firm sales customers as to how capacity was allocated on Columbia Gulf in the wake of Order 636 during the Columbia bankruptcy. FERC did about a four-year internal investigation, came up with a decision; customers disputed it and took it to court, and we’re now finally getting to a resolution that includes this open season.”

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