Sunday, April 10, 2011

Precedent agreements explained

Here's a link to a good explanation of the ongoing precedent agreement phase of the Alaska Gas Pipeline (By Bill White, Researcher/Writer for the OFC) (LINK) Here's a quote from the article, spelling out what we can expect in the weeks, months and years ahead.

Disclosure of Precedent Agreements

As was said, precedent agreements usually get unveiled, in whole or part, when a developer applies to FERC for a certificate to construct and operate a pipeline. The agreements are the developer's affirmation that the project is needed.

For the Alaska pipeline projects, those certificate applications aren't planned until the fall of 2012 for the Alaska Pipeline Project and 2013 for the Denali project.

In an unusual move, FERC decided in 2005 to handle disclosure of the Alaska projects' precedent agreements differently. FERC's Alaska-specific regulations disallow withholding from the public the existence of signed agreements until the certificate filing.

The developer must issue a press release within 10 days of executing each precedent agreement disclosing the name of the shipper, the amount to be shipped and how many years the shipping will last. Then the developer must file the actual precedent agreement with FERC within 20 days of signing it, although the developer can ask FERC to seal the agreement so the public can't see its details. In handling past pipeline projects, FERC typically granted requests for sealing these documents.
Nice article Mr. White - Thanks.

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