UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION STIPULATION AND AGREEMENT

Transcription

1 For Settlement Discussion Purposes Only Draft November 29, 2016 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION ) Texas Eastern Transmission, LP ) Docket No. RP ) STIPULATION AND AGREEMENT Pursuant to Rules 207(a)(5) and 602 of the Rules of Practice and Procedure of the Federal Energy Regulatory Commission ( FERC or Commission ), 18 C.F.R (a)(5), (2016), Texas Eastern Transmission, LP ( Texas Eastern ) hereby submits for approval this Stipulation and Agreement, including Exhibits 1 through 4 attached hereto ( Settlement ). The parties in this proceeding listed on Exhibit 2 hereto either unconditionally support or do not oppose this Settlement Tariff Filing ARTICLE I. TARIFF FILING The parties agree to support or not oppose the revised tariff provisions set forth in the pro forma tariff records contained in Exhibit 1 to this Settlement. Texas Eastern shall file revised tariff records to implement this Settlement, with such tariff records being in substance identical to the pro forma tariff records included in Exhibit 1 attached hereto, updated for any Commission-approved intervening changes ( Tariff Filing ). Texas Eastern shall file the Tariff Filing within twenty (20) days following the Settlement Effective Date, defined below in Section 5.4, provided that if the Settlement Effective

2 Date is before March 1, 2017, Texas Eastern shall not file the Tariff Filing prior to March 1, Texas Eastern shall request in the Tariff Filing that these tariff records become effective on the first day of the first month following the expiration of thirty (30) days from the date of the Tariff Filing but shall not request a date earlier than April 1, ARTICLE II. PROVISIONS FOR GAS QUALITY WAIVER REQUESTS 2.1. Agreement to Accommodate Waivers Texas Eastern reserves the right to grant a waiver of the gas quality provisions in Section 5 of the General Terms and Conditions ( GT&C ) of Texas Eastern s FERC Gas Tariff, as permitted pursuant to GT&C Section 5.5(B). Texas Eastern may grant such a waiver to a receipt point operator for the purpose of transporting gas not otherwise in compliance with GT&C Section 5 ( Non-Conforming Gas ), for a term of definite duration and scope to be determined at the time of the request and subsequent approval by Texas Eastern. Texas Eastern will evaluate all gas quality waiver requests on a not unduly discriminatory basis and will use commercially reasonable efforts to grant all reasonable gas quality waiver requests, consistent with historical practices, in accordance with the procedures set forth in Section 2.2, and provided that Texas Eastern can maintain the integrity of its pipeline operations and meet gas quality tariff obligations at delivery points Waiver Request Procedures Texas Eastern shall follow the process set forth in this Section 2.2 to receive and evaluate gas quality waiver requests. 2

3 A receipt point operator may request permission to deliver Non-Conforming Gas by sending an to The request should state (1) The dates when the gas quality waiver is to begin and end; (2) The reason(s) for the waiver; and (3) The constitutent(s) for which the waiver is being requested. a) Texas Eastern will determine if the requested waiver can be granted while continuing to maintain the integrity of Texas Eastern s pipeline operations and meet gas quality tariff obligations at delivery points. In making such a determination, Texas Eastern will: (1) Analyze all incoming gas both in volume and gas quality constituents in the specific location where the waiver is being requested; (2) Determine if blending will occur to allow the Non-Conforming Gas to comingle with other gas at the point of receipt into the system, resulting in a gas stream that meets the gas quality limits in the tariff at the next downstream delivery point; (3) If it is determined that sufficient blending will occur, then Texas Eastern will approve the waiver request and enter the waiver into the waiver log for record keeping. b) Texas Eastern will notify the requesting receipt point operator by if the gas quality waiver request is granted or denied. If the waiver request is 3

4 denied, the will include a brief explanation of why the waiver request was denied. c) Texas Eastern will make all reasonable efforts to evaluate and grant or deny all gas quality waiver requests by the end of the next business day after the day on which the waiver request is received Waiver History Texas Eastern has historically granted gas quality waiver requests satisfying the following minimum standards: (i) a determination that Texas Eastern is able to blend the Non-Conforming Gas and to maintain the integrity of Texas Eastern s pipeline operations and meet gas quality tariff obligations at delivery points; and (ii) the specification of a defined start and end date in the gas quality waiver request. Texas Eastern will grant gas quality waiver requests to receipt point operators only. Pursuant to Sections 2.1 and 2.2, Texas Eastern will continue granting gas quality waivers on a not unduly discriminatory basis in the future for certain gas quality specifications that include, but are not limited to: (i) levels of ethanes and heavier hydrocarbons over twelve percent (12%); (ii) levels of butanes and heavier hydrocarbons over one and one-half percent (1.5%); (iii) carbon dioxide levels in excess of the applicable limit; and (iv) nitrogen levels over two and three-quarters percent (2.75%) outside of the applicable exemption zone. Examples of past gas quality waivers granted by Texas Eastern are listed in Exhibit 3. Prior gas quality waivers listed in Exhibit 3 are for reference purposes only and do not provide a guarantee that future waivers will be granted. 4

5 ARTICLE III. AGREEMENT INVOLVING THIRD-PARTY 3.1. Dominion Transmission, Inc. ( DTI ) Tariff Filing DTI will make a tariff filing with the Commission that is substantively identical to the filing contained in Exhibit 4 hereto. DTI shall file the tariff filing within twenty (20) days following the Settlement Effective Date, defined below in Section 5.4, provided that if the Settlement Effective Date is before March 1, 2017, DTI shall not file the tariff filing prior to March 1, DTI shall request in the tariff filing that its tariff records become effective on the first day of the first month following the expiration of thirty (30) days from the date of the tariff filing but shall not request a date earlier than April 1, The parties agree to support or not oppose such tariff filing by DTI. ARTICLE IV. REPRESENTATIONS, WARRANTIES, AND COVENANTS Each of the parties represents and warrants as follows: 4.1. Authority to Enter Settlement It has the power and authority to enter into and perform this Settlement Efforts to Obtain Commission Approval It shall use due diligence and work cooperatively and in good faith to obtain prompt Commission approval of the Settlement, the Tariff Filing, and the DTI tariff filing, or, in the case of those participants that do not oppose the Settlement, the participant will not oppose such efforts to obtain Commission approval of the Settlement, the Tariff Filing and the DTI tariff filing No Action to Impede Settlement or Tariff Filing While any of the Settlement, the Tariff Filing and the DTI tariff filing are pending at the Commission, it shall not take any action, including making any filings with the 5

6 Commission addressing the subject matter of this Settlement as it applies to Texas Eastern, which action is designed to impede Commission approval and implementation of this Settlement, the Tariff Filing, or the DTI tariff filing, or otherwise interfere in any manner whatsoever with the filings described above Settlement in the Public Interest ARTICLE V. EFFECT OF APPROVAL It is specifically understood and agreed that this Settlement represents a negotiated settlement, in the public interest, and that the benefits accruing to the parties represent compromises by the parties on many matters so that a balance could be achieved among competing interests Waivers The Commission s approval of this Settlement shall constitute any and all waivers of the Commission s rules and regulations that may be necessary to effectuate the Settlement in accordance with its terms, including a waiver of Section of the Commission s regulations, 18 C.F.R , to the extent necessary to implement the Settlement Rights Reserved All parties further understand and agree that the provisions of this Settlement relate only to the specific matters referred to in this Settlement and that no participant waives any claim or right that it otherwise may have with respect to any matters not expressly provided for in this Settlement. Except to the extent explicitly set forth in this Settlement, neither the Commission nor any of the parties shall be deemed to have approved, accepted, agreed to or consented to any policy, methodology or other principle 6

7 underlying or supposed to underlie any of the matters provided for in this Settlement. The parties shall retain their NGA Section 5 rights, and Texas Eastern shall retain its NGA Section 4 rights. The standard of review for any future modification of the Settlement is set forth in Article VI The Settlement Effective Date The Settlement Effective Date shall be the first day of the first calendar month following the date on which a Commission order becomes an Acceptable Order, as defined herein; provided that should the Commission not issue an Acceptable Order by September 28, 2017, Texas Eastern reserves the right to file the Tariff Filing to be effective November 1, 2017, and, under this circumstance only, the Settlement Effective Date shall be the date Texas Eastern files the Tariff Filing. For purposes of this Settlement, an Acceptable Order shall mean a final Commission order, no longer subject to rehearing or appeal, approving the Settlement as filed and without modification or condition. For purposes of the preceding sentence: (i) an order shall be considered final and no longer subject to rehearing or appeal if, after thirty (30) days elapse from the issuance of the order, no request(s) for rehearing of the order has been filed; and (ii) in the event a request for rehearing has been filed, then the order shall be considered final and no longer subject to rehearing or appeal if, after sixty (60) days elapse from the issuance of the order on rehearing, no petition(s) for review in an appropriate circuit court of appeals of the relevant order(s) has been filed. The foregoing assumes that the 30th day or the 60th day, as applicable, is a business day; if it is not, then the order shall be final and no longer subject to rehearing or appeal at the end of the first business day after the 30th day or the 60th day, as applicable, if no request(s) for rehearing or petition(s) for review, as applicable, has been filed. 7

8 5.5. No Effect Before Settlement Effective Date This Settlement is made pursuant to Rule 602 of the Commission s Rules of Practice and Procedure, 18 C.F.R and, until the Settlement Effective Date, this Settlement, including all Exhibits hereto, shall be privileged and shall have no effect (except with respect to Sections 5.2, 5.3, and 7.4), and nothing contained in this Settlement, including the Exhibits, shall be admissible in evidence in any Commission, court, or other regulatory proceeding or deemed an admission by any party of any principle contained herein Term of Settlement The term of this Settlement shall begin on the Settlement Effective Date, as defined above. Texas Eastern s obligations under Section 2.2 shall end on the third anniversary of the Settlement Effective Date. Following termination of Texas Eastern s obligations as specified above, Texas Eastern will use commercially reasonable efforts to maintain a comparable process for receipt point operators to submit and Texas Eastern to evaluate and grant or deny gas quality waiver requests by the end of the next business day. ARTICLE VI. STANDARD OF REVIEW The applicable standard of review for any future modification of this Settlement is the just and reasonable standard Non-Severability ARTICLE VII. MISCELLANEOUS The provisions of this Settlement are not severable and may become effective only in accordance with the terms of the Settlement. 8

9 7.2. Entireties Clause This Settlement represents a negotiated resolution of only the specific matters addressed herein, and except as specifically provided in this Settlement, no party shall be deemed to have waived any claim or right in a future proceeding. There are no other agreements or understandings among the parties related to this Settlement except as stated herein, and this Settlement, which as defined above includes this Stipulation and Agreement and the exhibits attached hereto, represents the entire agreement of the parties with respect to the matters resolved in this proceeding. Except as specifically set forth herein, this Settlement is not intended to resolve or affect any other proceeding pending before the Commission, courts or any other governmental authority, nor does Commission approval of this Settlement constitute approval of, or precedent regarding, any principle or issue in these proceedings (recognizing that the terms of this Settlement are intended to remain in effect for the duration of this Settlement) Nature of Settlement The terms of this Settlement are contractual, not a mere recital, and this Settlement is the result of negotiations among the parties, each of which has participated in the drafting of this Settlement through its respective attorneys. No party shall be deemed the drafter of this Settlement, and this Settlement shall not be construed against any party as the drafter. In the event of a conflict between the terms of this Settlement and the Explanatory Statement of Stipulation and Agreement, the Settlement shall control. Nothing contained in this Settlement shall be deemed an admission of any kind, whether of guilt, liability, or fact, by or against any party, or their directors, officers, shareholders, agents, employees, representatives, principals, successors, predecessors, assigns, and heirs. 9

10 7.4. Actions of the Parties In addition to Sections 4.2 and 4.3 of Article IV, each party agrees that such party shall not take any action that would interfere with the performance of this Settlement by any other party or that would adversely affect any of the rights provided for in this Settlement. No party shall do indirectly what it is prohibited from doing directly by the immediately preceding sentence Interpretation Each capitalized term not otherwise defined herein shall have the definition provided for such term in Texas Eastern s GT&C Successors and Assigns The provisions of this Settlement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns Definition of Parties and Participants For purposes of this Settlement, the term party shall have the meaning provided in 18 C.F.R (c), and the term participant shall have the meaning provided in 18 C.F.R (b). WHEREFORE, Texas Eastern respectfully requests that the Commission approve this Settlement in its entirety, without modification or condition. Respectfully submitted, /s/ Berk Donaldson Berk Donaldson General Manager, Rates and Certificates Texas Eastern Transmission, LP 10

11 Exhibit 1 Proposed Tariff Records

12 Exhibit 2 Parties Unconditionally Supporting or Not Opposing Settlement Blue Racer Midstream, LLC Caiman Energy, LLC Calpine Energy Services, L.P. Chevron U.S. Inc. Consolidated Edison Company of New York, Inc. Dominion Transmission, Inc. Duke Energy EQT Energy, LLC Exelon Corporation Municipal Gas Authority of Georgia Independent Oil & Gas Association of West Virginia, Inc. LLOG Exploration Company, LLC Municipal Defense Group National Fuel Gas Distribution Corporation New England Local Distribution Companies Peco Energy Company Peoples Natural Gas Company LLC Piedmont Natural Gas Company, Inc. PSEG Energy Resources & Trade LLC Range Resources-Appalachia, LLC Statoil Natural Gas LLC Tennessee Valley Authority Twin Eagle Resource Management, LLC Transcontinental Gas Pipe Line Co., LLC

13 Exhibit 3 Previous Gas Quality Waivers Granted By Texas Eastern Date Waiver Requested Date Waiver Granted Tariff Specification Waived Duration of Waiver 7/30/2014 7/30/2014 CO2 65 Days 10/17/ /20/2014 Non Processed Gas 20 Days 1/13/2015 1/15/2015 Btu/C2+ 7 days 4/13/2015 4/13/2015 Water Vapor Content 3 days 4/13/2015 4/13/2015 C2+ 4 days 4/24/2015 4/24/2015 Water Vapor Content 1 day 5/6/2015 5/6/2015 C2+ 2 days 5/18/2015 5/18/2015 C2+/C4+ 90 days 6/11/2015 6/11/2015 Gas Temp 30 days 6/19/2015 6/19/2015 CO2/C2+ 31 days 7/17/2015 7/17/2015 C2+/C4+ 91 days 7/21/2015 7/21/2015 Water Vapor Content 1 day 7/29/2015 7/29/2015 Water Vapor Content 1 day 7/30/2015 7/30/2015 Water Vapor Content 6 days 8/7/2015 8/7/2015 Water Vapor Content 1 day 8/7/2015 8/7/2015 C2+ 1 day 8/10/2015 8/10/2015 C2+ 3 days 8/17/2015 8/17/2015 C2+ 3 days 8/21/2015 8/21/2015 C2+ 3 days 9/10/2015 9/10/2015 C2+ 3 days 10/9/ /9/2015 C2+ 91 days 10/12/ /12/2015 Water Vapor Content 4 days 10/15/ /15/2015 C2+ 1 day 10/28/ /28/2015 C2+ 90 days 11/10/ /10/2015 C2+ 83 days 12/9/ /9/2015 Water Vapor Content 1 day 12/15/ /16/2015 Water Vapor Content 1 day 2/25/2016 2/25/2016 C2+ 30 days 3/24/2016 3/24/2016 C2+ 2 days 8/11/2016 8/11/2016 Water Vapor 30 days

14 Exhibit 4 Dominion Transmission, Inc. Tariff Filing [To be provided by DTI to the extent determined to be necessary by DTI]