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To: Ernest_at_the_Beach
What the judge is in effect saying is that a private business must do business with the state at terms set by the state. Sounds like communism to me. El Paso was under no obligation whatsoever to ship that gas to CA.
10 posted on 09/24/2002 10:45:32 AM PDT by Rodney King
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To: Rodney King
El Paso was under no obligation whatsoever to ship that gas to CA.

Not so. Natural gas pipelines are regulated by the Federal Energy Regulatory Commission. El Paso had a pipleline with a certified capacity. It was obliged by law and contract to make all that capacity available. From the judgement:

26. El Paso Pipeline had a certificated capacity during the relevant period of 3,290 MMcf/d to its California delivery points. El Paso Pipeline never requested authority to abandon any portion of that certificated capacity. Under these circumstances, El Paso Pipeline was under an obligation to make 3,290 MMcf/d available to its California delivery points.

27. Further, under Section 16.3 of El Paso Pipeline’s ten-year settlement approved by the Commission (El Paso Pipeline Exhibit No. EPNG 14), El Paso Pipeline committed to no decrease in the quality or the quantity of gas during the term of the settlement. That service obligation was 3,290 MMcf/d to California.

28. By not making the 3,290 MMcf/d available El Paso Pipeline not only violated § 284.7 and § 284.9 of the Commission’s regulations, but also its commitment under the ten-year settlement. Since the average flow during the relevant period was only 2,594 MMcf/d, there was a withholding of 696 MMcf/d of capacity to the California delivery points.

http://www.ferc.fed.us/RP00-241-006-09-23-02.pdf


24 posted on 09/24/2002 3:15:30 PM PDT by Looking for Diogenes
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