The Federal Energy Regulatory Commission has ruled that facilities owned and operated by several affiliated intrastate pipelines and one interstate pipeline system in the U.S. are subject to FERC jurisdiction.
The ruling concerned KansOk Partnership and its affiliates, Kansas Pipeline Partnership and Riverside Pipeline Co.
FERC found that, operating as intrastate pipelines, the affiliates ship gas from Oklahoma fields to markets in Kansas and Missouri through a network of segmented but connected pipelines.
The agency determined that the pipeline segments, when viewed as a whole, function as an interstate system. Most of the gas moved through the system serves interstate markets.
The commission also said the interstate customers are not benefiting from FERC rules governing rates, terms,and services, especially those provided under Order No. 636.
FERC gave the affiliates 60 days to file applications for permits to operate the facilities under Order 636 and to unbundle and establish initial rates for the integrated system.
In a separate decision, the commission declared that a project planned by three affiliates of Centana Energy Corp. will be subject to FERC jurisdiction.
The affiliates, Centana Louisiana Pipeline, Centana Intrastate Pipeline Co, and Trunkline Gas Co., plan to build and operate segments of pipeline as intrastate facilities in Louisiana and Texas.
Louisiana Gas System Inc. and Conoco Inc. had complained that the segments would constitute interstate pipelines and should be subject to FERC regulation.
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