Settlement with pipeline adds flexibility, protection for shippers

NPGA and a coalition of shippers known as the Propane Group reached a settlement with Enterprise TEPPCO, resolving a major inventory policy. The settlement agreement, which has a five-year duration, resolves a dispute extending back to April 2010. The Propane Group originally protested the inventory policy as overly restrictive, harmful to small shippers and not sufficiently transparent. The settlement satisfies all of the core principles sought by NPGA: increased flexibility for shippers; greater protection for small shippers; and incorporation of the new policy within the FERC tariff. Importantly for propane shippers and customers, the settlement provides for greater operational flexibility, making it easier to avoid overstorage and understorage penalties. Small shippers are protected by a provision granting them 5,000 barrels if their adjusted daily deliveries fall below that level. Furthermore, any penalties incurred last summer under the old inventory policy that would not be incurred under the new policy will be credited to a shipper’s account.