regulations governing the conduct of open seasons for alaska natural gas transportation projects
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Regulations Governing the Conduct of Open Seasons for Alaska Natural Gas Transportation Projects Federal Energy Regulatory Commission February 9, 2005 Agenda Item C - 1. FERC. Alaska Natural Gas Pipeline ( primary mainline to lower-48 ). 2. - PowerPoint PPT PresentationTRANSCRIPT
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Regulations Governing theConduct of Open Seasons
for Alaska Natural Gas Transportation Projects
Federal Energy Regulatory CommissionFebruary 9, 2005
Agenda Item C - 1
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Alaska Natural Gas Pipeline( primary mainline to lower-48 )
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• Open season regulations to be issued in 120 days
• Regulations must cover procedures for the allocation of capacity and criteria for and timing of any open seasons
Alaska Natural Gas Pipeline Act Open Season Provisions
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• Regulations must promote competition in the exploration, development, and production of Alaskan natural gas
• Expansion open seasons must provide the opportunity for the transportation of natural gas other than from the Prudhoe Bay and Point Thomson Units
Alaska Natural Gas Pipeline Act Open Season Provisions
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The open season regulations apply to any initial or voluntary
expansion capacity on any Alaskan natural gas transportation project
Alaska Natural Gas Pipeline Act Open Season Provisions
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10/13/04 – Alaska Natural Gas Pipeline Act11/15/04 – Commission issues NOPR12/3/04 – Public technical conference in
Anchorage, Alaska.by 2/10/05 – Commission issues final rule
Open Season Rulemaking Schedule
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Open Season Process in NOPR
• Detailed project information given to the public 30 days before open season
• Open season held for at least 90 additional days
• Capacity awarded without undue discrimination or preference of any kind
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Changes to NOPR(as a result of public comments)
• Recognition of Alaskan in-state needs–In-state capacity, delivery points and transportation rates based on in-state study
–Separate bidding on specified in-state capacity
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Changes to NOPR(as a result of public comments)
• Prevention of Undue Discrimination or Preference
– Standards of Conduct of Order 2004 APPLY– Prospective applicant must create or designate
an independent unit or division for open season– Alaska natural gas production affiliates identified– Information made available to any potential
shipper must be made available to all potential shippers
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Changes to NOPR(as a result of public comments)
• Capacity Allocation– Pre-subscriptions (anchor shippers) are
allowed only for initial capacity – Pre-subscription agreements must be
made public within 10 days and all other bidders have choice of best pre-subscription terms
– Pre-subscription capacity will be subject to pro-rata reductions
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Changes to NOPR(as a result of public comments)
• Capacity Allocation (con’t)– Qualified bids made after the open
season to be considered– Results of the open season to be made
public within 10 days – Copies of all accepted precedent
agreements filed with the Commission within 20 days
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Changes to NOPR(as a result of public comments)
• Pre-filing, Project Design & Expansions– Prospective applicant’s pre-filing of its
open season proposals– The Commission will consider how
project design considers the capacity needs of initial and future shippers
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Policy Considerations
• Balance encouragement of project construction with fair and open competition
• Rebuttable presumption for rolled-in rate treatment of costs of expansions
• Balance appropriate oversight with letting market forces work