Affiliates of Colorado-based SourceGas LLC have resolved claims that Kinder Morgan Interstate Gas Transmission (KMIGT) improperly retained nearly $1 million in natural gas that they said belonged to retail choice customers in Nebraska and Wyoming.

SourceGas Distribution LLC and SourceGas Energy Services Co. filed a “notice of withdrawal and joint statement of satisfaction” of the disputed issues in their Section 5 complaint, according to an order issued late Tuesday. “Kinder Morgan Interstate Gas Transmission LLC and complainants have resolved all issues pending” before the Federal Energy Regulatory Commission (FERC), it said.

Details of how the complaint was resolved were not disclosed.

In their complaint, the SourceGas companies alleged that KMIGT had refused to process volumetric prior-period adjustments (PPA) involving 326,669 Dth for more than six months from the date of the initial transportation invoice (see Daily GPI, Aug. 26). KMIGT’s tariff requires the pipeline to make PPAs, thus resolving any billing disputes, six months from the date of an initial transportation invoice, according to the complaint. A SourceGas executive estimated the cost of the gas being withheld at $916,000.

The SourceGas affiliates called on FERC to open an investigation into whether the adjustment practices of KMIGT in connection with resolving long-standing volumetric processing issues are unjust, unreasonable and/or unduly discriminatory [RP09-579].

SourceGas Distribution owns the retail gas assets that were once the property of Kinder Morgan Inc., which exited the retail gas distribution business in 2007. Neither SourceGas Distribution nor its parent company are affiliated with Kinder Morgan.

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