Appeals

Supreme Court to Hear Drilling Ban Appeal

The U.S. Supreme Court agreed Monday to hear appeals byUSX-Marathon and Mobil regarding the drilling ban on leasesoffshore North Carolina. The two producers spent $156 million in1981 on leases that became subject to a drilling ban in 1990 whenCongress adopted the Outer Banks Protection Act.

November 17, 1999

Amoco Seeks Court Review of El Paso-Dynegy Contract

Amoco Production and Amoco Energy Trading have wasted no time inpetitioning the D.C. Circuit Court of Appeals to review FERC’srecent decision upholding Dynegy Marketing and Trade’s 1.3 Bcf/dcontract with El Paso Natural Gas.

August 13, 1999

Heat Lingers But Loses Price-Supporting Touch

The national heat wave continued through Friday into theweekend, and electric utilities continued to use appeals forcustomer conservation and other demand-side management tools tokeep juice flowing as needed. But the heavy cooling load lost itsability to keep cash gas prices moving higher. Instead, most pointswere about a dime or more down in flows for the last day of July,and although quotes for Sunday and Monday tended to surpass thosefor Saturday, they still were below monthly indexes. Sources citedthe usual drop in weekend demand, a small screen decrease andforecasts that major market areas will have cooled off a bit bytoday as reasons for the softness.

August 2, 1999

Court Overturns FERC on Colorado Bypass

The U.S. Court of Appeals for the 10th District has reversed andremanded an order in which FERC asserted jurisdiction over two KNWattenberg Transmission laterals that provide connecting servicefrom Colorado Interstate Gas to two food-processing plants in FortMorgan, CO., thus bypassing the municipal gas provider.

June 30, 1999

Industry Briefs

The D.C. Circuit Court of Appeals remanded Friday a FERCdecision approving a 20-year cap on bids for Tennessee Gas Pipelinecapacity that are considered under the net-present-value approach.The Process Gas Consumers Group (PGC), which includes industrialgas users, challenged the Commission order, arguing that it failedto engage in “reasoned decision-making” by allowing the cap on theNPV bids. “…..[W]e find FERC’s reasoning on the cap to beunpersuasive and largely conclusory,” the court opined [No.98-1075]. The court said it didn’t “quarrel” with the goal behindthe Commission’s approval of the NPV capacity-allocation method forTennessee, “but [we] remind FERC of its admitted need to balancethe goal with its duty to prevent exploitation of Tennessee’smonopoly power. FERC appears to have forgotten the latter…..” PGCalso took issue with FERC’s decision allowing Tennessee to applyNPV to shippers attempting to change primary receipt and deliverypoints, and the court agreed with industrials on this point. Thecourt ordered the Commission to “better explain or modify” itsapproval of both issues.

May 24, 1999

Court Raps FERC in Capacity Gaming Case

The D.C. Circuit Court of Appeals has remanded FERC’s rejectionof a 1997 complaint in which Southern California Edison accusedSouthern California Gas (SoCalGas) of gaming the secondary marketfor firm capacity on key transportation links between the low-costSan Juan producing basin and the California border.

April 19, 1999

Capacity-Gaming Complaint Remanded to FERC

The D.C. Circuit Court of Appeals has remanded FERC’s rejectionof a 1997 complaint in which Southern California Edison accusedSouthern California Gas (SoCalGas) of gaming the secondary marketfor firm capacity on key transportation links between the low-costSan Juan producing basin and the California border.

April 13, 1999

Court Ruling May Cast Shadow Over El Paso Settlement

The D.C. Circuit Court of Appeals has remanded an orderapproving the El Paso Natural Gas rate settlement for furtherreview, citing as its reason FERC’s refusal to give SouthernCalifornia Edison (Edison) the opportunity to challenge theagreement based on its status as an indirect customer of thepipeline.

December 21, 1998

Industrials, LDCs Score Big in Curtailment Case

The D.C. Circuit Court of Appeals on Friday remanded a case inwhich industrial and LDC customers challenged a FERC-approvedmethod for compensating customers that are curtailed beyond theirpro rata share on Texas Eastern Transmission (Tetco). “This was avery good result for us,” said an attorney for one of thepetitioners.

October 26, 1998
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