FERC, TRANSCO SETTLE ISSUES

The Federal Energy Regulatory Commission has approved a settlement resolving allegations against Transcontinental Gas Pipe Line Corp. that calls for the company to pay $35.5 million plus interest. The order settles all outstanding enforcement issues against Transco except those relating to the company's transition cost proceeding. In agreeing to the pact, Transco did not admit or deny any violations had occurred.

June 10, 1991

The Federal Energy Regulatory Commission has approved a settlement resolving allegations against Transcontinental Gas Pipe Line Corp. that calls for the company to pay $35.5 million plus interest.

The order settles all outstanding enforcement issues against Transco except those relating to the company's transition cost proceeding.

In agreeing to the pact, Transco did not admit or deny any violations had occurred.

FERC alleged Transco violated the National Historic Preservation Act, Natural Gas Policy Act, and Natural Gas Act in laying its Mobile Bay pipeline and mainline loop in Southwest Alabama.

Transco will pay $25.5 million to resolve those charges, including $13.5 million to Alabama to be used for remediation and future environmental and cultural resource research and protection.

Transco agreed to protect archaeological sites along the pipeline route.

FERC also alleged Transco transferred its merchant functions to its marketing affiliate, Transco Energy Marketing Co., in violation of the NGPA and NGA.

Transco will pay $10 million during 3 years, plus interest, to its historical sales customers to resolve those allegations.

Transco said it will separate its operations from those of its marketing affiliate beyond what FERC rules require.