Interstate

Given the level of opposition south of the border, theInterstate Natural Gas Association of America (INGAA) said itsplans to forego for the next couple of years its efforts topersuade Mexico to lift its tariff on natural gas.

Williston Basin Interstate Pipeline (WBI), through its”surrogate” affiliate Frontier Gas Storage, has displayed a patternof preferential treatment by selling all of Frontier’s gas to itsmarketing affiliate, Prairielands Energy Marketing Inc., in anattempt to give the latter a competitive edge over non-affiliatedshippers, the pipeline’s customers charge.

Midcoast Interstate Transmission’s efforts to continue itsmonopoly control of the pipeline transportation market in northernAlabama fell by the wayside last week when FERC rejected its twocontroversial project proposals citing disinterest on the part ofshippers.

The Interstate Natural Gas Association of America (INGAA) andthe Canadian Energy Pipeline Association (CEPA) currently areeyeing a number of restructuring options – one of which is tocombine the two groups into a single pipeline association,officials said. INGAA is looking south of the border as well tostrengthen its ties with Mexico.

A FERC majority yesterday reaffirmed the right of interstatepipelines to “reasonably withhold” their consent for customers topermanently transfer their contract liabilities to third-partyreplacement shippers under capacity releases.

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.