FERC dealt KN Interstate Gas Transmission a serious blow lastweek in ordering the pipeline to explain a 41% overrun in the costof its Pony Express Pipeline Project and prove the project stillmeets the Commission’s test for rolled-in rate treatment.
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Judge Rules Against Producers in Royalty Cas
In a “Freddie Krueger-style” wipeout, a federal district courton Friday the 13th dealt a crippling blow to a major producergroup and two producers when it denied their motions dealing withroyalty treatment of take-or-pay settlement payments. U.S. DistrictCourt Judge Royce Lamberth upheld his earlier ruling that theIndependent Petroleum Association of America (IPAA) lackedjurisdiction in a lawsuit challenging the Interior Department’scollection of royalties on lump-sum payments made by producers toget out of their gas contracts with pipelines. The IPAA lawsuit ledto a 1996 ruling by the D.C. Circuit Court of Appeals in favor ofgas producers
February 24, 1998
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