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FERC OKs 2 changes to oil pipeline tariff to address constraints of Midwest pipe

The Federal Energy Regulatory Commission on Dec. 5 approved two oil pipeline tariff amendments, following the start of its alternative dispute resolution process aimed at alleviating propane pipeline constraints in the Midwest.

Oil and gas transportation companies Oneok North System LLC and Enterprise TE Products Pipeline Co. LLC filed their appeals to FERC on Nov. 26 after receiving requests from shippers, according to a news release. FERC issued notices with shortened comment periods ending Dec. 4.

In Oneok's approved revised policy of pipe transportation capacity, shippers were allowed to shift their allocated capacity to other shippers through the end of December and, at the same time, get credit to their allocation history for the barrels that replacement shippers transported.

Enterprise TE Products received FERC's approval to extend its propane transportation service to the Midwest region after third-party shippers requested that the company continue its propane transportation services to Monee, Ill., beyond the original schedule. Enterprise TE Products will continue transporting propane until it chooses to cancel the service.

FERC said the dispute resolution process will continue as it keeps track of the propane constraints in the Midwest region.