FERC Accepts Pipeline Tariff Changes to Address Midwest Propane Situation

FERC Accepts Pipeline Tariff Changes to Address Midwest Propane Situation

The Federal Energy Regulatory Commission (FERC) accepted amendments to two oil pipeline tariffs that are intended to help move propane to the Midwest. The ONEOK North System (ONEOK) and Enterprise TE Products Pipeline Company (Enterprise TE) both said they have “received requests from shippers for the changes after the start of the alternative dispute resolution (ADR) process initiated by FERC last month to alleviate propane pipeline constraints in Midwestern states.”

In the case of ONEOK, “FERC approved a revised pipeline transportation capacity allocation policy allowing 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.”

Enterprise TE “is extending emergency transportation service of propane to the Midwest region.” Enterprise TE has been receiving “requests from third-party shippers to continue propane service to Monee, Illinois, for a period of time beyond the original date on which it intended to terminate the service.” It will continue doing so until Enterprise TE cancels or modifies the service.

With the Midwest badly needing propane, FERC worked quickly to approve the requests. On November 19, FERC Chairman Neil Chatterjee announced the ADR process; ONEOK and Enterprise TE filed their requests on November 26, and FERC issued notices to both of them on November 27. FERC is monitoring the Midwest’s propane situation and they are continuing the ADR process.