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Texas Eastern Pipeline Revises Gas Quality Provisions



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On December 13, 2016, Texas Eastern Transmission, LP (“Texas Eastern”) filed a petition for approval of a settlement agreement with the Federal Energy Regulatory Commission (FERC) that revises certain of the natural gas quality provisions found in its FERC gas tariff.  Specifically, the settlement provides for a single natural gas quality specification for ethane and heavier hydrocarbons across Texas Eastern’s entire system.  The settlement also establishes a process whereby customers can request a waiver of quality specifications.

Since at least 2010, there have been ongoing gas quality and interchangeability issues between Texas Eastern and its customers.  Texas Eastern took the position that the stipulation would save all parties—including FERC—valuable time and resources.

On February 2, 2017, the FERC issued a letter order approving the settlement.

The entire FERC letter order can be viewed here.