FERC APPROVES, AND DENIES IN PART, TENNESSEE'S PROPOSAL TO ABANDON FACILITIES TO KINETICA PARTNERS, MAKES MIXED JURISDICTIONAL READINGS ON SYSTEMS AND DISMISSES SETTLEMENT

摘要

On 11/3/11, FERC approved in part and denied in part the abandonment plan posed by Tennessee Gas Pipeline Co. (CP11-44), involving a sale to Kinetica Partners, LLC of certain onshore and offshore facilities located in the Gulf of Mexico and Louisiana. Kinetica (CP11-47) requested that FERC find that the soon-to-be acquired facilities primarily perform a “gathering function” under section 1(b) of the Natural Gas Act (NGA) and would therefore be exempt from FERC's jurisdiction after the abandonment. Kinetica also requested, should FERC decide that only some of the facilities perform that function, that FERC issue a section 7 certificate of limited jurisdiction to transport gas on the facilities within FERC jurisdiction, with waivers of certain regulatory requirements.