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Federal Natural Gas Regulation

A hallmark of our natural gas federal regulatory practice is the diversity of both our client base and the matters we have handled.  We represent interstate and intrastate natural gas pipelines, storage companies, LDCs, and large consumers such as gas-fired electric generators, as well as natural gas marketing, trading, and asset management companies.  We have participated in the development and implementation of all aspects of federal natural gas regulatory policy over the last quarter century, including Order Nos. 436, 636, 637, and 712; FERC’s policy statements pertaining to pipeline certificates, negotiated rates, and its substantially broadened enforcement arena; various infrastructure development initiatives; and many precedent-setting individual cases.  For example:

  • Project Counsel.  We serve as FERC regulatory counsel for Iroquois Gas Transmission System, L.P. in its prosecution, construction and operation of various expansion projects, including a major system expansion under Long Island Sound and the East River to a new terminus in the Bronx, NY (the first interstate pipeline construction in New York City in 40 years); proposed interconnection with an LNG terminal, and construction of new pipeline interconnections.
  • Regulatory Counsel.  We advise AGL Resources and other clients on the federal regulatory implications of various renewable and other nontraditional natural gas resource development and commercial business undertakings, including facilitating the interstate transportation of landfill gas and development of a domestic LNG fuel business. 
  • Asset Management Agreement Counsel.  We were active participants in the FERC rulemaking resulting in Order No. 712, and currently assist energy trading companies as well as asset-owning utility and electric generation clients with the drafting and negotiation of various forms of asset management/optimization agreements.
  • Corporate Accountability, Compliance, and Enforcement Action Counsel.  We have substantial experience representing clients in FERC Office of Enforcement proceedings, including audits, self-reports, and investigations.  We have undertaken legal and regulatory compliance audits for several large utilities in different regions of the country, as well as for a large energy trading company; we developed compliance programs for affiliate standards of conduct and market behavior rules (including price reporting protocols), and we develop and implement various FERC regulatory compliance training programs for our energy clients.

FERC Litigation

  • We represent a variety of natural gas clients in administrative litigation matters before FERC and regularly counsel clients with respect to FERC policy initiatives and regulatory compliance.  For example:
  • We have participated in natural gas interstate pipeline rate and tariff litigation on behalf of a wide variety of shippers on the following pipeline systems:  Algonquin, Columbia Gulf, Dominion Cove Point, Dominion Transmission, El Paso, Equitrans, Florida Gas, Kern River, Maritimes & Northeast Pipeline, Southern Natural Gas, Texas Eastern, Tennessee, Transco, and Transwestern.
  • We represented Saltville Gas Storage in its successful defense of a complaint proceeding challenging its jurisdictional status and alleging NGA violations, and subsequently represented Saltville in its prosecution of FERC certificates and its application for approval of a novel storage rate design.
  •  We represented Iroquois Gas Transmission in the successful prosecution and resolution by settlement of contested changes to its gas quality and interchangeability tariff provisions occasioned by the introduction of nontraditional gas supply resources.

FERC and other Natural Gas Regulatory Permitting

We regularly assist natural gas clients in the preparation and prosecution of various FERC and DOE regulatory approvals.  This work involves, among other things, strategic planning and assessment of proposed projects in partnership with the client’s internal and retained technical experts, coordination of application preparation and interface with FERC and other governmental agencies involved in the permitting/approval process, pleading and discovery practice, and handling of various community, landowner, and political issues affecting the project.  Some examples of recent application prosecution work are the following:

  • We represent Iroquois Gas Transmission System, L.P. in all recent NGA Section 7(c) certificate proceedings, including the Eastchester Extension Project that involved the first gas pipeline construction into New York City in many years, the Northeast-07 (Millennium) pipeline consortium project, and the 08/09 Expansion Project, as well as other projects currently in development relating to new pipeline interconnections and new supply sources that will provide additional transportation options for Marcellus shale and other nontraditional supply sources to reach northeast markets.
  • We represent Atlanta Gas Light Company in the FERC proceeding to establish rates and terms of condition for FERC-jurisdictional transportation of gas from Georgia landfill gas projects to interstate markets.
  • We assisted with the successful prosecution of NGA Section 7(f) service area determinations for Louisville Gas & Electric Company and NUI Utilities, Inc.
  • We represented PNM Resources in the FERC gas proceedings related to the sale of its gas utility division to a third party, including transfer of various limited jurisdiction certificates and an NGA Section 3/Presidential Permit authorizing operation of facilities to be used for export of natural gas to Mexico.
  • We represent various intrastate pipeline, storage, LDC and Hinshaw pipelines in connection with limited FERC jurisdiction matters, including NGPA Section 311 compliance, prosecution of Hinshaw blanket certificates, preparation of operating statements, and compliance with reporting and posting requirements.
  • We advise, counsel, and represent clients with respect to various cross-border activities, including Department of Energy/Office of Fossil Energy blanket and individual natural gas import/export licenses, NGA Section 3 FERC authorizations and Presidential Permits to construct and operate border facilities, and U.S. Customs Service proceedings.

Natural Gas Commercial Transactions

  • Commodity Transactions - We draft, negotiate, and counsel clients with respect to a broad range of physical transaction forms, including the NAESB form agreement as well as customized agreements to meet particular needs for firmness, reliability, and other transaction-specific characteristics.   We also counsel clients with respect to compliance responsibilities including FERC’s wholesale trading code of conduct; requirements for reporting of pricing information to index developers; annual purchase and sale reporting pursuant to FERC Order 704 (Form 552); and other regulatory requirements affecting gas commodity wholesale traders.
  • Transportation/Storage Service Transactions - We assist clients with the negotiation and drafting of precedent agreements for new firm services and other ancillary documentation such as confidentiality and reimbursement arrangements; interconnection agreements; operational balancing agreements; firm transportation, storage, park and loan, and negotiated rate agreements; and other services provided by regulated pipelines and storage companies.  We counsel clients with respect to regulated transfers of FERC-jurisdictional capacity through the capacity release program, and other commercial transactions raising regulatory issues (such as the “shipper must have title” rule and prohibitions on tying, buy/sell transactions, and flipping). 
  • We represent pipelines and shippers in disputes pertaining to billing and payment, penalty imposition, credit support, new services, insolvency/bankruptcy and a wide range of other matters; such activities have included informal negotiations, communications with FERC enforcement staff, alternative dispute resolution mechanisms, the filing of formal complaints at FERC, and civil litigation.

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Contact

M. Lisanne Crowley
Partner
E-mail 202.274.2814