Federal Energy Regulatory Commission Approves Palo Duro Transmission L.P.'s Lease Agreement for Anadarko Gathering System

Strategic Insights -

The Federal Energy Regulatory Commission (FERC) has issued an environmental assessment report approving Palo Duro Transmission L.P.'s (Palo Duro) lease agreement for pipeline capacity on a portion of Palo Duro Gathering's existing Anadarko gathering system. The proposed lease agreement spans the border from the Texas Panhandle into western Oklahoma. The commission found that the proposal qualifies as a categorical exclusion under section 380.4(a)(21) and 380.4(a)(27), and no environmental assessment is required.

Key Takeaways:

  • The FERC approved Palo Duro's lease agreement for pipeline capacity on a portion of Palo Duro Gathering's existing Anadarko gathering system.
  • The proposed lease agreement spans the border from the Texas Panhandle into western Oklahoma.
  • The commission found that the proposal has no adverse impact on existing customers, pipelines, landowners, and/or communities.
  • The proposed request includes approval of a certificate of public convenience and necessity pursuant to Section 7(c) of the Natural Gas Act.
  • Palo Duro seeks to provide open access interstate transportation services under Part 284, Subpart G of the Commission's regulations.
  • The proposed request includes waivers of certain Commission regulations under Part 157, Subpart F of the Commission's regulations.
  • The commission approved Palo Duro's pro forma FERC Gas Tariff with initial recourse rates.

Statistics:

  • The proposed lease agreement spans approximately 275 miles.
  • The pipeline capacity to be leased is from the Texas Panhandle into western Oklahoma.
  • The commission found that the proposal has no adverse impact on existing customers, pipelines, landowners, and/or communities.
  • The proposed request includes approval of a certificate of public convenience and necessity under Section 7(c) of the Natural Gas Act.
  • The proposed resolution includes waivers of certain Commission regulations under Part 157, Subpart F of the Commission's regulations.

Sources:

  • Federal Energy Regulatory Commission Office of Energy Projects, Division of Gas-Environment & Engineering
  • Palo Duro Transmission L.P. (Palo Duro) and Palo Duro Pipelines (Texas Intrastate) L.P. (PD Gathering)