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Title: ''Fraud, abuse, or similar grounds'' exception under Section 601(c)(2) of the NGPA

Journal Article · · Energy Law J.; (United States)
OSTI ID:5725981

The determination of what constitutes ''fraud, abuse, or similar grounds'' under the Natural Gas Policy Act has been the subject of extensive litigation before the Federal Energy Regulatory Commission (FERC). Although FERC has consistently held that these grounds do not include imprudence, it has also held that ''the same type of actions of a pipeline can be imprudent or abusive.'' A finding of abuse will result in denial of the pipeline's pass through of gas costs to the extent they are excess due to abuse, and a finding of imprudence may result in denial of the pipeline's recovery of fixed costs. The author analyzes the development of FERC's position, and shows that it may be difficult in some cases for an interstate pipeline to be certain it is in compliance with FERC standards.

Research Organization:
Tennessee Gas Transmission Co., Houston, TX
OSTI ID:
5725981
Journal Information:
Energy Law J.; (United States), Vol. 6:1
Country of Publication:
United States
Language:
English