FERC accepts oil pipeline tariff amendments to move propane to Midwest
The Federal Energy Regulatory Commission (FERC) accepted Thursday two oil pipeline tariff amendments to help move propane to the Midwest.
ONEOK North System (ONEOK) and Enterprise TE Products Pipeline Company (Enterprise TE) said they received requests from shippers for the changes following the start of the alternative dispute resolution (ADR) process initiated by FERC last month to address propane pipeline constraints in the Midwest.
In the ONEOK case, FERC approved a revised pipeline transportation capacity allocation policy that allows shippers to transfer allocated capacity to other shippers through the end of this month and to receive credit to their allocation history for barrels moved by replacement shippers.
In the Enterprise TE case, the company is extending emergency transportation service of propane to the Midwest region. The company received requests from third-party shippers to continue propane service to Monee, Ill., beyond the date on which it originally planned to terminate the service. The service will continue until Enterprise TE cancels or modifies it.
FERC Chairman Neil Chatterjee announced the ADR process on Nov. 19, and the relevant parties met on Nov. 25. Both companies filed their requests on Nov. 26, and FERC issued notices Nov. 27, with a shortened comment period ending Dec. 4.
FERC noted that it continues to monitor the Midwest propane situation, and the ADR process is continuing.
