MMS looks at changes in OCS pipeline access rules

MMS said it will be holding a series of public meetings designed to gain input on the agency’s potential new pipeline authority for oil and natural gas. A recent court order determined that the Federal Energy Regulatory Commission did not have authority to require data submittals for certain natural gas pipelines in the Outer Continental Shelf, indicating the Interior Department may be the most appropriate federal regulator.

Based on that court order, MMS published an advance notice of proposed rulemaking in the Federal Register April 12.

The agency said it is “exploring the authority to ensure open and non-discriminatory access to oil and gas pipelines,” and is interested in hearing from the public on the “open and non-discriminatory access” provisions of the Outer Continental Shelf Lands Act.

Companies moving oil and gas on the OCS may still be subject to the FERC’s jurisdiction. However, if the FERC declares that a company’s facilities perform a “gathering” function rather than a “transportation” function, then the facilities are exempt from the FERC’s jurisdiction under the Natural Gas Act. As such, the FERC will not impose its ratemaking authorities (tariff calculation guidelines) on that facility. Ensuring open and nondiscriminatory access to these gathering pipelines may then fall to the MMS.

The public meetings will be held April 27 through May 11 in Houston, Washington, D.C., and New Orleans.

More information is available in the Federal Register notice available online at :

http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/04-8247.htm.