An arm of FERC’s Office of Market Oversight and Investigations (OMOI) alerted Gulfstream Natural Gas System LLC Wednesday that it was beginning an audit of “matters relating to the negotiated contracts” for transportation service on the Florida pipeline.

In a letter to Gulfstream Assistant General Counsel P. M. Teague, the OMOI’s Division of Operational Investigations said Susan Tolbert, lead auditor, would contact the pipeline to schedule an on-site visit, but it did not publicly disclose the reason or reasons for the agency audit.

Gulfstream was directed to “preserve and retain all existing and future records relevant to this audit” of the pipeline’s negotiated transportation contracts [PA04-16].

Relevant records would include “all documents and communications (including e-mail) which are in the possession, custody or control of Gulfstream and either: 1) are used in preparation of responses to the [FERC] data requests; or 2) relate to any service provided or to be provided by, on behalf of, to or for the benefit of Gulfstream and its shippers or any facility owned or operated by, on behalf of, or for the benefit of Gulfstream and its shippers; or 3) communications, transactions, agreements or arrangements between Gulfstream and any of its shippers, or between any director, officer, manager or other employee of Gulfstream and its shippers.”

Gulfstream is jointly owned by Williams Cos. and Duke Energy. Phase I of the line went into operation in May 2003, providing 1.1 Bcf/d of natural gas over a 581-mile system that extends from Mobile Bay, AL, under the Gulf of Mexico, to western and central Florida. Phases II and III, which were approved by FERC last October, would extend the line into southeastern Florida, where it would provide 350 MDth/d of long-term firm transportation service to two Florida Power & Light power plant expansions.

FERC last week approved an agreement between its staff and CenterPoint Energy Gas Transmission that effectively resolved a series of violations of the agency’s policy on negotiated-rate contracts (see NGI’s Daily GPI, March 9).

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