Tennessee Gas Pipeline has called on FERC to settle a flap over its bid to build an interconnect to the Columbia Gulf Transmission-operated portion of a transportation system along the coast of Louisiana that the two pipelines jointly maintain and operate.

In a complaint filed at the Commission earlier this month, El Paso’s Tennessee accused Columbia Gulf of engaging in a “pattern of anti-competitive conduct and practices” by denying its request to construct an interconnect from its Muskrat line to the Columbia Gulf-operated side of the Blue Water Pipeline (BWP) at Egan, LA.

The two pipelines have coordinated operations and shared capacity on the offshore Blue Water system for more than 30 years, with Columbia Gulf operating the western shore line of the system that terminates at Egan, and Tennessee operating the eastern shore line of the pipe segment that extends to Cocodrie, LA.

Tennessee contends the sought-after interconnect would provide operational efficiencies for the entire Blue Water pipeline system. In addition, it “would allow Tennessee to maximize the use of its share of capacity in the BWP, as well as provide Tennessee and its shippers with operational benefits,” the pipeline told the Commission [RP04-215].

The pipeline said it has satisfied the five conditions required for an interconnect under FERC’s policy. It asked the Commission to respond favorably to its complaint on a fast-track basis, permitting Tennessee to build the Egan interconnect and barring continuation of the alleged “unlawful and anti-competitive practice” of Columbia Gulf.

Tennessee claims that uncompetitive conduct by Columbia Gulf is at the core of the pipeline’s refusal to allow an interconnect at Egan. Specifically, it has accused Columbia Gulf of giving its BWP shippers “undue preference” in scheduling priority over Tennessee’s firm shippers, and has “denied substantial new supplies access to Tennessee’s western shore line capacity…so that the new supply would instead be received by Columbia Gulf through another pipeline.”

Furthermore, Columbia Gulf sent Tennessee a letter which contained an “implicit threat…that Tennessee’s BWP shippers will be curtailed unless Tennessee artificially restricts its Cocodrie point to reduce a BWP imbalance that would not exist if Columbia Gulf conducted its business in a lawful and proper fashion,” the El Paso pipeline charged.

“The obvious conclusion to be drawn…is that Columbia Gulf has a practice of exercising its control over the western shore line of the BWP to thwart competition from Tennessee for its own [and affiliate Columbia Gas Transmission’s] benefit in an unduly discriminatory manner that violates Commission policy” and the Natural Gas Act (NGA), Tennessee said.

The practice “is also compelling evidence that…denial of the Egan interconnect is nothing but an unlawful pretext.”

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