Anchor Shipper for New Regulated Crude Oil Gathering Pipeline
We advised a large independent oil and gas exploration and production company that will be an anchor shipper on a new regulated crude oil gathering pipeline in the Delaware Basin of Texas and New Mexico that will move crude oil from the basin to larger trunk pipelines and on to Cushing, Oklahoma and other points. We assisted in the negotiation of a letter of intent, a transportation service agreement including benefits for anchor shippers that will require approval by the Federal Energy Regulatory Commission’s (“FERC”) in a petition for declaratory order, tariff provisions, storage agreements, and other contracts. We also advised the client on timing and options for dealing with FERC’s current lack of a quorum, which limits the agency’s ability to issue the requisite declaratory order. In addition, we reviewed and assisted in the negotiation of downstream transportation agreements.