Prohibited Buy/Sell Transaction?
The Federal Energy Regulatory Commission (FERC) held last month that the prohibition on buy/sell transactions applies equally to interstate open-access transportation services provided by intrastate pipelines under Section 311 of the Natural Gas Policy Act of 1978 and Hinshaw pipelines pursuant to blanket certificates issued under Section 284.224 of the FERC's regulations. See Order Denying Request for Clarification and Granting Limited Waiver, Arizona Public Service Co. and Sequent Energy Management, L.P., Docket No. PR10-45-000 (Jul. 23, 2010). This has generated substantial interest, including a request by several marketers for rehearing that asks the FERC to reverse its ruling expanding the buy/sell prohibition to non-interstate pipelines - which the FERC acknowledges is an issue that it has not previously addressed.
