The proposed open-tap policy of Gulf South Pipeline Co. LP,formerly Koch Gateway Pipeline, came under fire last week from anumber of shippers that claimed it violated FERC’s policy withrespect to interconnections.

Dynegy Marketing and Trade argued the pipeline’s open-tapproposal was contrary to the Commission’s interconnection policyestablished in a Panhandle Eastern Pipe Line order last yearbecause it fails to provide a shipper that is seeking tointerconnect with the option of building the facilities themself.

Under the Panhandle decision, it noted that either the pipelinecan build an interconnection for a party that’s willing to foot thereasonable costs and expenses for construction, or the shipperseeking the interconnection can build the facilities as long asthey comply with a pipe’s technical requirements.

But “Gulf South does not provide shippers the [latter] option,”it told FERC [RP10-225]. In addition, the pipeline fails to give atime frame for when it will respond to a party’s request for aninterconnection, or a deadline for completing construction of thefacilities, the marketer said.

Dynegy also objected because the proposal would give Gulf Souththe final word over the siting of an interconnection. Thisprovision “vests sole discretion as to the location of the newfacilities with Gulf South,” it said, adding that the decisionshould be mutually reached by the pipe and shipper seeking theinterconnection.

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