May 28, 2020 Motion for Leave to Intervene Out-of-Time and Protest of Independent Petroleum Association of America
Posted at 16:20h in Letters and Comments
In a May 28 motion to intervene out-of-time, IPAA called on the Federal Energy Regulatory Commission (FERC) to reject the May 1 filing by Northern Border Pipeline to establish a new Btu safe harbor of 1,100 Btu per cubic foot and, when necessary, allow Northern Border to post an upper limit (Docket No. RP20-859).
While safe pipeline operations are vital to shippers, North Dakota producers strongly objected to this proposal at this time.
IPAA noted that well shut-ins may have affected Northern Border’s system to possibly avoid an immediate need for the proposed change. The Btu limit would impose significant costs on North Dakota producers–further shut-ins or additional treatment to remove ethane–at a time when they are least able to shoulder this burden.
From the motion:
“IPAA members produce significant volumes of oil and natural gas in North Dakota’s Bakken area, relying on Northern Border to transport their gas. A restriction in the allowed Btu content would be a market disruption at any time. However, the dramatic downturn in the worldwide energy market overall and the demand for oil and natural gas produced in North Dakota specifically, has created a particularly difficult environment for America’s energy producers. Higher costs will be even harder to withstand…”
Should FERC choose not to reject the filing, IPAA concurred with other producers in seeking the maximum suspension period of 5 months and the prompt scheduling of technical conferences to attempt a resolution that could work for all parties.