Commissioner James Danly Statement
April 19, 2021
Docket No. RP21-630-000
I concur with today’s order finding the proposed waiver filed by Gulf South Pipeline Company, LLC (Gulf South) to be consistent with section 6.21.7 of the General Terms and Conditions (GT&C) of Gulf South’s tariff. I write separately to express my misgivings that GT&C section 6.21.7 appears overly broad and inconsistent with Commission precedent.[1] As I have previously indicated,[2] consistent with past practice, and to ensure that tariff provisions are just, reasonable, and not unduly discriminatory or preferential, I believe the Commission should exercise its authority under section 5 of the Natural Gas Act (NGA) to direct Gulf South to modify GT&C section 6.21.7 or explain why it should not be required to do so.[3]
For these reasons, I respectfully concur.
[1] See N. Border Pipeline Co., 110 FERC ¶ 61,203, at P 4 (2005) (finding “broad waiver provision has the potential for unreasonable and unjust application” and “could be interpreted as giving [the pipeline] almost unfettered discretion to include non-conforming material terms and conditions into its transportation agreements without seeking Commission approval for those changes or without including language specifically authorizing such provisions in its tariff”).
[2] See Panhandle E. Pipe Line Co., LP, 174 FERC ¶ 61,237 (2021) (Danly, Comm’r, concurring); see also S. Star Cent. Gas Pipeline, Inc., 175 FERC ¶ 61,015 (2021) (Danly, Comm’r, concurring at P 1 n.1).
[3] See Golden Triangle Storage, Inc., 160 FERC ¶ 61,031, at P 14 (2017) (directing natural gas company, pursuant to NGA section 5, to modify broad waiver provision or explain why it should not be required to do so in an order on a non-conforming agreement); Tenn. Gas Pipeline Co., 135 FERC ¶ 61,208, at P 156 (2011) (directing natural gas company, pursuant to NGA section 5, to modify broad waiver provision or explain why it should not be required to do so).