FERC has rejected protests to an operational flow order (OFO) that Equitrans LP issued last November to determine whether lost-and-unaccounted-for (LAUF) gas was being caused by leaks on its Appalachian Basin gathering system.

The OFO, which was issued on Nov. 23, 2011, required interruptible gathering customers on three segments of Equitrans’ gathering system that were experiencing LAUF gas to stop delivering production at specified inlet meters for a limited period, but allowed inlet meters with their own-installed operating pressure regulation to continue flowing gas into the system at a reduced pressure of 5 psig. The OFO was due to expire in February 2012.

During the OFO, Equitrans undertook tests to determine whether the LAUF gas on its West Virginia and Pennsylvania system was being caused by “discrete centralized leaks that are capable of repair or replacements, or whether operation at lower operating pressures is a more efficient means to mitigate LAUF [gas] for Equitrans and its customers,” the Federal Energy Regulatory Commission (FERC) letter order said [RP12-213].

Dominion Hope Gas Inc., a subsidiary of Richmond, VA-based Dominion, filed a protest, saying that a number of its retail customers lost service as a result of the OFO and urged FERC to investigate the circumstances surrounding the OFO. The Independent Oil & Gas Association of West Virginia Inc. called on the Commission to order Equitrans to share the findings of its system test with its customers.

“We reject the protest and comments filed in this proceeding, and find that Equitrans’ limited-term OFO is consistent with Commission policy and is approved because it reflects an appropriate use of Equitrans’ tariff as a tool to investigate and resolve the long-standing problem of LAUF on its gathering system,” the FERC order said.

“The Commission finds that, in accordance with…Equitrans’ tariff, Equitrans properly issued the OFO to conduct tests in order to attempt to determine how and where gas is being lost on its system.”

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