FERC Declines to Delay TEPPCO Halt of ULSD Shipments

The Federal Energy Regulatory Commission (FERC) has declined to intervene in Enterprise TEPPCO's decision to eliminate ULSD and jet fuel shipments in their pipeline effective July 1, 2013.

In addition to NATSO and four other petroleum marketing associations, a wide range of interests participated in the protest, including airlines, trucking companies, associations, terminal operators and agricultural cooperative. Members of Congress and the Arkansas Attorney General also weighed in with the commission.

NATSO is advising members who rely on ULSD shipments along the TEPPCO pipeline in the affected markets (Little Rock, Shreveport-Arcadia and Scott City, MO), that alternate arrangements should be made with suppliers prior to July 1, when all shipments of ULSD along TEPPCO will end. Though some of the protestants may litigate over the decision, it is not likely that the issue will be resolved prior to July 1 when all ULSD shipments will cease.

Because FERC did not directly address the concerns raised by the protestants, some may request a rehearing of the issue, and some may consider litigation. However, NATSO and the other participating trade associations will not continue to pursue the protest. While we are disappointed that FERC did not delay or prevent Enterprise from discontinuing ULSD shipments, we were successful in establishing a record with FERC of our concerns, which will be considered if the protests continue.


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