W&T's energy regulatory practice encompasses representation of major natural gas and oil pipeline companies, distribution companies, gathering, processing, and storage companies, gas and oil producers, energy marketing companies, and project sponsors, landowners, mining companies, and others with interests in the rates and practices of regulated energy companies and the development and financing of related transmission, distribution and power production infrastructure. Much of this practice involves proceedings before the Federal Energy Regulatory Commission (FERC), other federal agencies, and the federal courts.
Transportation and Storage Rates
W&T offers more than six decades of experience in FERC natural gas rate-making policy and practice. Our practitioners are versed in all aspects of pipeline and storage rates, including:
- cost of service, cost allocations, rate design, depreciation, rate of return on equity, levelized rates, revenue-sharing arrangements, cost trackers;
- litigation of rate proceedings;
- negotiation and documentation of rate case settlements; and
- defense against complaints challenging rates, and claims for exclusion of allegedly imprudent costs.
Among the companies W&T frequently represents in rate proceedings and/or advises on rate-related issues are: Kern River Gas Transmission Company, Midwestern Gas Transmission Company, Iroquois Gas Transmission System, MarkWest Energy Partners, Transcontinental Gas Pipe Line Corporation, Viking Gas Transmission Company, Williams Field Services Company, Southern Star Central (formerly Williams Central) Pipeline Company, Anadarko Petroleum Corporation, Burlington Resources (ConocoPhillips), and New Mexico Gas Company, Inc.
Market-Based Rates
W&T's expertise in rate-related matters includes assisting clients in all aspects of evaluating prospects for obtaining, and making the requisite evidentiary showing to justify, market-based rates for interstate gas storage services. Such engagements include providing advice regarding definitions of relevant product and geographic markets; identifying competing providers; and supervising, justifying and defending market analysis through pleadings and discovery responses.
Certificates
The firm has equally extensive experience and knowledge in securing certificates of public convenience and necessity for new and expanded interstate pipeline and storage facilities, including several of the largest jurisdictional infrastructure projects constructed during the past 20 years. Our role in such matters encompasses:
- counseling regarding conducting open seasons and negotiating precedent agreements and other contracts;
- analyzing issues concerning state vs. federal jurisdiction;
- assembling, presenting and defending all elements necessary for a sufficient application and ultimate approval of the required certificate;
- advising on sufficiency of descriptions of facilities and proposals; assisting in evaluating pricing and rate design options;
- preparing explanations of derivation of cost of service and initial rates;
- providing justification for negotiated and/or market-based rates;
- evaluating and defending landowner, safety, economic and environmental issues;
- shaping agency environmental review of the application;
- providing legal oversight of environmental compliance and reporting during construction; and
- advising and providing litigation support regarding condemnation.
Tariffs
W&T has extensive experience with FERC tariffs, including preparing tariffs for new pipelines; authoring tariff change proposals and their justifications; prosecuting proposed tariff revisions; and litigating issues arising under tariffs. Additionally, W&T frequently administers clients' FERC tariffs.
Common Carrier Regulation
W&T attorneys have a wealth of experience in counseling and litigation related to common carrier oil and liquids pipelines regulated under the Interstate Commerce Act, including rate, tariff, prorationing, pooling, and jurisdictional issues. W&T also provides advice concerning, and litigates issues related to, oil pipeline quality banks.
Midstream Operations
W&T attorneys routinely provide a variety of services related to onshore and offshore gathering and processing operations, including analysis of jurisdictional status; preparation of petitions for declaratory orders, requests for limited-jurisdiction certificates, and waiver requests; review and preparation of contracts; and counseling regarding regulatory requirements and compliance issues.
Contracts Concerning Regulated Services
W&T's attorneys provide counseling, as well as participate in drafting and negotiating transportation and storage service agreements, precedent agreements, negotiated and discounted rate contracts, operational balancing agreements, interconnection agreements, etc., for new and existing pipelines and storage providers.
Compliance and Enforcement
W&T's attorneys' depth of experience in FERC regulation of the natural gas and oil industries provides a solid foundation for counseling our clients regarding ensuring and - equally important in current FERC policy - documenting compliance with standards of conduct and marketing affiliate rules, as well as regulatory requirements relating to negotiated rates, discounted rates, capacity release, open seasons, non-conforming contracts, website posting requirements, electronic bulletin boards, and other issues. On behalf of our clients, we also:
- assess propriety of proposed transactions or procedures and identify alternative approaches to avoid potential compliance questions;
- assess clients' compliance cultures and management structures;
- advise on the scope and sufficiency of staffing of self-audit efforts, and help clients to conduct internal audits and investigations of potential violations;
- assist clients in determining whether violations of standards have occurred, document possible violations, and advise on self-reporting; and
- contact FERC staff on behalf of our clients when it is appropriate to self-report.
Our practitioners' many decades of collective experience provide a valuable perspective from which to evaluate and offer advice on the merit and scope of FERC enforcement investigations, to craft responses to enforcement data requests and other inquiries; and to negotiate with enforcement staff regarding potential findings of violations, associated penalties, and settlement terms.
Other Federal Agencies
Department of Energy (DOE) Import and Export Permits
W&T's attorneys have assisted clients in securing import and export authorizations pursuant to Section 3 of the Natural Gas Act in connection with commodity sales and purchases across the international borders of Canada and Mexico.
Department of Transportation (DOT) Pipeline Safety
W&T attorneys have assisted clients with matters under the jurisdiction of DOT and its Pipeline and Hazardous Materials Safety Administration (PHMSA), including compliance with pipeline safety regulations, requirements governing maximum allowable operating pressure (MAOP), agency rulemaking proceedings, and issues related to mining conducted beneath pipelines.
Outer Continental Shelf Lands Act (OCSLA)
W&T attorneys have counseled clients and handled litigation of issues arising under the OCSLA before the Federal Energy Regulatory Commission, the Department of Interior's Management Minerals Service (MMS), and the federal courts. Such issues have included interpretation and enforcement of the OCSLA's competitive principles, rulemakings, citizen suits to enforce the OCSLA, and appeals of administrative actions.
Policy-making and Judicial Review
Rulemakings
The firm's tremendous depth of experience is particularly valuable to our clients in the evaluation of proposed new federal regulations and policy statements. Our knowledge of our clients' industries is vital in analyzing the potential effects of regulatory initiatives on clients' businesses, and in preparing comments and pleadings to help shape the outcome of agencies' rulemaking processes.
Judicial Review
W&T's attorneys are regularly engaged to evaluate the merit of pursuing judicial review of adverse regulations and rulings, and are experienced in all aspects of appellate litigation in the federal courts of appeals and the United States Supreme Court. Our practitioners' experience translates into a deep understanding of recurring issues in such appeals, including jurisdiction, standing, ripeness, exhaustion of remedies and others.
