Natural Gas Regulation


At the federal and state levels, we work with clients to develop innovative business solutions to ongoing challenges in natural gas regulation.

FERC

We have extensive experience at FERC in all aspects of natural gas regulation and compliance, including: certification of new facilities; exports and imports; ratemaking and tariff design; capacity release; storage and pipeline capacity; market behavior rules; price indices; negotiated and discounted rates; mergers, acquisitions, and changes in control; investigations; and both trial and appellate litigation. Our lawyers have played an active role in addressing broad policy issues before FERC in rulemaking proceedings and notices of inquiry, and through direct interaction with key agency personnel at all levels. Our energy regulatory attorneys are skilled in alternative dispute resolution, and have taken leading roles in multiparty settlements and negotiations.

Pipelines and Ports

We represented Alaska in energy royalty, tax, and bankruptcy cases, and were counsel to many state administrations on the development of the Alaska gas pipeline, the world’s largest energy project. We served as lead counsel to the Liberty Natural Gas project before its reorganization, which involved developing a $750 billion deepwater port and pipeline to be licensed by the Maritime Administration and the FERC.

We have a deep understanding of the LNG business, from siting and development of terminals and pipelines through sale, trading, exportation and importation, and the related regulatory issues. Our lawyers have represented project developers, equity investors, offtakers, and governmental authorities on a broad range of LNG issues. Our work includes negotiation of investment agreements, preparing gas procurement and LNG sales contracts, and negotiation of project joint venture or shareholding arrangements. We have assisted clients with project coordination and advance planning to ensure that all contractual arrangements in the LNG chain—for term, quantity, quality, force majeure, default, damages, and termination, as well as regulatory requirements at FERC, DOE, and elsewhere — are satisfied.

Distribution

At the state level, local distribution companies face continuing challenges on federal and state gas regulatory laws, developments, and policies impacting their business. Our lawyers helped establish unbundling programs for residential and small commercial customers at the local level, advised on legislative and administrative unbundling programs, and currently advise on a range of CFTC and Dodd-Frank issues.

Representative Experience

  • Osaka Gas Co., Ltd. and Chubu Electric Power Co., Inc., in their agreement to invest $2.2 billion of equity funding for the first liquefaction train of Freeport LNG's proposed 3-train natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas; and on the gamut of regulatory issues associated with the project’s development. We also represented Osaka Gas and Chubu in their 20-year use or pay liquefaction tolling agreements for the production of 4.4 million tons per year of LNG from the facility.
     
  • The State of Alaska in a two-year negotiation of a 457-page fiscal contract to form a public-private partnership between the State and ExxonMobil, BP, and ConocoPhillips for the development of the proposed $28- to $33-billion Alaska natural gas pipeline (the largest energy project ever proposed), bringing Alaskan gas through Canada to the lower 48 states. The State’s proposed investment would approximate $8 billion.
     
  • Canadian Superior Energy (before reorganization) on the permitting and development of the Liberty LNG project, proposed to consist of a deepwater port off the New Jersey shoreline connecting through an undersea pipeline to an interstate pipeline.
     
  • Leading natural gas clients in ongoing advice with regard to CFTC and SEC regulatory requirements under the Dodd-Frank Act.
     
  • Mitsui & Co., Ltd., on regulatory and commercial issues involved in its agreement to acquire 30 percent of a Kinder Morgan Inc. affiliate company that is constructing a $236 million natural gas pipeline in Arizona. The planned pipeline will connect to an existing line in Tucson and extend 62 miles to Sasabe, Ariz., which sits on the Arizona-Mexico border. An estimated 200 million cubic feet of gas will be transported each day.
     
  • The State of Alaska in a successful petition to FERC to obtain guidance that resolved regulatory jurisdictional issues for a proposed LNG facility operating in both intrastate and foreign commerce.
     
  • Plains All American Pipeline, L.P. (a subsidiary of Pacific Pipeline System LLC) (in all regulatory matters before the CPUC, including rate filings and applications, as well as applications for change of control and sales of property.
     
Osaka Gas Co., Ltd. and Chubu Electric Power Co., Inc., in their agreement to invest $2.2 billion of equity funding for the first liquefaction train of Freeport LNG's proposed 3-train natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas; and on the gamut of regulatory issues associated with the project’s development. We also represented Osaka Gas and Chubu in their 20-year use or pay liquefaction tolling agreements for the production of 4.4 million tons per year of LNG from the facility.
The State of Alaska in a two-year negotiation of a 457-page fiscal contract to form a public-private partnership between the State and ExxonMobil, BP, and ConocoPhillips for the development of the proposed $28- to $33-billion Alaska natural gas pipeline (the largest energy project ever proposed), bringing Alaskan gas through Canada to the lower 48 states. The State’s proposed investment would approximate $8 billion.
Canadian Superior Energy (before reorganization) on the permitting and development of the Liberty LNG project, proposed to consist of a deepwater port off the New Jersey shoreline connecting through an undersea pipeline to an interstate pipeline.
Leading natural gas clients in ongoing advice with regard to CFTC and SEC regulatory requirements under the Dodd-Frank Act.
Mitsui & Co., Ltd., on regulatory and commercial issues involved in its agreement to acquire 30 percent of a Kinder Morgan Inc. affiliate company that is constructing a $236 million natural gas pipeline in Arizona. The planned pipeline will connect to an existing line in Tucson and extend 62 miles to Sasabe, Ariz., which sits on the Arizona-Mexico border. An estimated 200 million cubic feet of gas will be transported each day.
The State of Alaska in a successful petition to FERC to obtain guidance that resolved regulatory jurisdictional issues for a proposed LNG facility operating in both intrastate and foreign commerce.
Plains All American Pipeline, L.P. (a subsidiary of Pacific Pipeline System LLC) (in all regulatory matters before the CPUC, including rate filings and applications, as well as applications for change of control and sales of property.

Email Disclaimer

Unsolicited e-mails and information sent to Morrison & Foerster will not be considered confidential, may be disclosed to others pursuant to our Privacy Policy, may not receive a response, and do not create an attorney-client relationship with Morrison & Foerster. If you are not already a client of Morrison & Foerster, do not include any confidential information in this message. Also, please note that our attorneys do not seek to practice law in any jurisdiction in which they are not properly authorized to do so.

©1996-2017 Morrison & Foerster LLP. All rights reserved.