The war of words between the ANR Pipeline and Guardian PipelineLLC over the proposed Guardian line into southeastern Wisconsinraged on this week, bearing all the earmarks of theHatfields-and-McCoys’ feud – minus the rifles.

This week Guardian responded to ANR’s request for FERC todismiss the Guardian project, essentially saying that it was purehogwash. ANR argued the proposed 150-mile Guardian line and the38-mile connecting lateral to be built by Wisconsin Gas were, infact, one integrated interstate system, which it noted was omittedfrom Guardian’s application. This makes the application “patentlydeficient” and ripe for dismissal. Also, ANR said Wisconsin Gas’role in the project strips it of its status as a Hinshaw lineexempted from Natural Gas Act regulation.

“The Guardian Pipeline project and the Wisconsin Gas lateral aredistinct projects in their respective structures, operations andmanagement,” countered Guardian [CP00-38]. In its request, ANR”self-servingly renamed the Wisconsin Gas lateral the ‘GuardianExtension,’ presumably under the guise that this ploy would makeANR’s otherwise unsupported arguments sound better. The fact isthat calling something that which it is not, does not make it so.”

Guardian further disputed ANR’s claim that Wisconsin Gas wouldbe one of the operators of the Guardian system. The pipeline isjointly owned by CMS Gas Transmission and Storage, Viking GasTransmission and WICOR Inc. Guardian, a limited liability company,will construct the pipeline, and CMS will be the operator, it said.Wisconsin Gas will operate the lateral connecting its distributionsystem to Guardian, and nothing more, noted the sponsors.

ANR’s claim the Guardian Pipeline is an investment in”unnecessary and redundant capacity” also is wrong, Guardian noted.”The Guardian pipeline has received contractual commitments for 94%of its capacity – demonstrating that the market finds Guardian tobe a pipeline it wants, is necessary and is not redundant.”Wisconsin Gov. Tommy G. Thompson sent another letter last week toFERC endorsing the Guardian line, while the city of Milwaukee, WI,passed a resolution supporting the construction of the pipeline asan alternative to ANR.

ANR contends that Wisconsin Gas would lose its Hinshaw statusbecause it would not “receive” the gas it purchases fortransportation on Guardian within Wisconsin. It reasoned thatWashington Gas, as a shipper on Guardian, will buy and take titleto the gas outside of the state. Under ANR’s definition, Guardiansaid all existing Hinshaw exemptions would be invalidated.

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