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"Given the critical safety and deliverability concerns associated with operating a natural gas pipeline, it is inappropriate and without precedent to second-guess a pipeline's day-to-day operations," El Paso president William Wise said.

Though that quote sounds self-serving, the fact that El Paso had a pipeline explosion two years ago in an older mainline pipeline outside Carlsbad NM that killed 12 persons, leads to caution in pushing gas through at full "capacity", especially when older lines are revamped and put into service to meet capacity demands. I fully expect this decision to be reversed on appeal.

I too expect the appeal to be successful... but Davis needed something to help his popularity.

the fact that El Paso had a pipeline explosion two years ago in an older mainline pipeline outside Carlsbad NM that killed 12 persons, leads to caution in pushing gas through at full "capacity", especially when older lines are revamped and put into service to meet capacity demands.

Apparently, a pipeline company is obliged to either run its line at capacity or have that capacity reduced.

47. The record is clear that El Paso Pipeline could have operated at or near MAOP without violating the Department of Transportation’s regulations and could have made available an additional 210 MMcf/d of capacity to its California delivery points. Not doing so was a violation of El Paso Pipeline’s certificate obligation to transport 3,290 MMcf/d to the California border. The Chief Judge can understand a reluctance to run a pipeline at the allowable and expected MAOP when it has just suffered a rupture in its pipeline which resulted in deaths. At the same time, he finds that El Paso Pipeline was under a duty to maintain its pipeline in a condition that would permit operation at or close to MAOP, if necessary, to meet its certificate obligations.

the fact that El Paso had a pipeline explosion two years ago in an older mainline pipeline outside Carlsbad NM that killed 12 persons, leads to caution in pushing gas through at full "capacity", especially when older lines are revamped and put into service to meet capacity demands

Very good analysis Cedar Dave!

At the time, it was natual gas prices that went crazy. I now that the Sumas border price skyrocketed and seemed strange. I do think that there was some strange things happening in terms of natural gas capacity, the basic gas price was pretty high. If El Paso points a finger to the gasoline pipeline in Bellingham that blew up and killed 3, I suspect they can raise a good issue of going to max pressure on equipment they didn't trust.

However, this is politics and not science! El Paso will need to fight this on a political/public relations basis rather than filling the equivalent to a request for a reversal.

I suspect that Wagner, if he acts as I suspect, is tossing a bone to California with this and is planning on a swift kick to California's collective groin on some electric issues.

This should be interesting to watch.