Interpretation

FERC has “rejected outright” Dominion Cove Point LNG LP’s (DCP) interpretation of its existing tariff and proposed tariff revisions that would permit it to issue an operational flow order (OFO) requiring shippers to deliver liquefied natural gas (LNG) by tanker to its import terminal to keep the cryogenic portion of the terminal cooled.

FERC has “rejected outright” Dominion Cove Point LNG LP’s (DCP) interpretation of its existing tariff and proposed tariff revisions that would permit it to issue an operational flow order (OFO) requiring shippers to deliver liquefied natural gas (LNG) by tanker to its import terminal to keep the cryogenic portion of the terminal cooled.

Dominion Resources is disputing Washington Gas Light’s (WGL) interpretation of a study of widespread gas leaks on the WGL distribution system in Maryland. Dominion says WGL’s aging distribution system was to blame for gas leaks, which began to increase in 2003, but WGL said the “key contributing factor” identified by the study was the presence of a large amount of imported LNG from Dominion’s Cove Point terminal in Lusby, MD.

Natural Gas Pipeline Co. of America’s (NGPL) interpretation of aNovember order addressing its auctioning practices was dead wrong,FERC said last week in denying the pipeline’s request forrehearing.

Based on its own interpretation of FERC’s new policy on capacitypricing, Viking Gas Transmission is seeking authority to chargehigher incremental rates for historically lower-priced capacity asit becomes available on its system without filing a new rate case.Some believe Viking’s proposal – the first of its kind – may proveto be a “watershed” event for the Commission’s still-evolvingpolicies on the pricing of interstate pipeline capacity.