Newspaper article THE JOURNAL RECORD
Energy Regulatory Commission Modifies Gas Devintaging Rule
The commission is also in the process of reconsidering the rule based on at least 60 petitions by both pipelines and producer groups, FERC spokesman Bobby Issac confirmed in a telephone interview with The Journal Record.
Before the modification, it said any changes not directly associated with its Order 451 would not affect its good-faith renegotiation aspects.
Changes are now allowed in contracts as long as they do not directly relate to the good-faith process of changing prices under the rule, said Issac.
FERC's gas price devintaging scheme, Order 451, is set to take effect Nov. 1 and allow good-faith renegotitations to raise the price of old gas to its highest classification level. In the meantime,the rule gave pipelines and producers the opportunity to voluntarily renegotiate contracts.
However, Issac said, in its effort to ensure the price was renegotiated once, the Commission said than any change in a contract prior to Nov. 1 would prevent the effectiveness of the good-faith prevent in that time if some change in price of gas, that change would prevent the effectives or the good-faith, aspect of the rule. …