U.S. FERC Issues Two Orders Clarifying the Scope of its Natural Gas Act Jurisdiction
On September 22, 2022, the U.S. Federal Energy Regulatory Commission’s (FERC) denied two separate complaints against natural gas pipelines located entirely within one state that turned on whether FERC had jurisdiction over the facilities under the Natural Gas Act (NGA). (more…)
Pipeline and Hazardous Materials Safety Administration Completes Gas “Mega Rule”
On August 24, 2022, the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) published in the Federal Register a final rule entitled Pipeline Safety: Safety of Gas Transmission Pipelines: Repair Criterial, Integrity Management Improvements, Cathodic Protection, Management of Change, and Other Related Amendments (Final Rule). (more…)
Fifth Circuit Says FERC Can’t Stop Rejection of Filed-Rate Contracts in Bankruptcy
On July 19, 2022, the U.S. Court of Appeals for the Fifth Circuit held that debtors in bankruptcy may reject regulated energy contracts, vacating two Federal Energy Regulatory Commission (FERC) orders to the contrary, in Gulfport Energy Corp. v. FERC. The question turned on how a party’s ability to reject executory contracts in bankruptcy interacts with FERC’s ability to determine whether a party can abrogate or modify contracts that constitute filed rates under a doctrine referred to as Mobile-Sierra. The court found that FERC cannot use its Natural Gas Act authority over contract abrogation and modification to countermand a debtor’s bankruptcy-law rights or the bankruptcy court’s powers.
FERC Jurisdiction Upheld in Puerto Rican Liquified Natural Gas Terminal Proceeding, New Fortress Energy Inc. v. FERC
On June 14, 2022, the U.S. Court of Appeals for the District of Columbia Circuit upheld the Federal Energy Regulatory Commission (FERC) finding of jurisdiction over New Fortress Energy LLC’s (New Fortress) liquified natural gas (LNG) import terminal facility in San Juan, Puerto Rico, in New Fortress Energy Inc. v. FERC. (more…)