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In Brief: A Digest of Midstream Projects

Client Success
  • Drafted complex gas processing agreements and related documents supporting the addition of 250,000 dekatherm per day of cryogenic gas processing capacity to a natural gas processing plant in Utah and reconfiguration of operations as an interstate straddle plant. Drafted related agreements with the interstate pipeline, including interconnect agreements, an operational balancing agreement and a keep-whole processing agreement. Obtained favorable jurisdictional rulings from FERC in declaratory order proceedings to support expansion and reconfiguration of plant operations.
  • Represented New York Stock Exchange-listed master limited partnership (MLP) on acquisitions of more than $800 million in natural gas storage caverns.
  • Represented interstate oil pipeline company in the sale of pipeline assets.
  • Advised a midstream natural gas company in bid to acquire interstate and intrastate natural gas pipelines in Kansas and Oklahoma.
  • Advised large independent natural gas storage developer in acquisitions of natural gas storage projects.
  • Represented Kansas Energy Partners LLC in disposition of controlling interest in its natural gas marketing business to Itochu Corp.
  • Represented Aquila in the disposition of energy-related derivatives and the proposed disposition of multiple long-term natural gas supply agreements and related derivatives.
  • Counseled Aquila in the $265 million sale of its natural gas gathering, distribution and transmission assets in Texas and Oklahoma to Energy Transfer.
  • Represented Aquila in the formation of a joint venture with ArcLight Capital for the $220 million acquisition of the Lodi underground gas storage facility then under construction in California, including advance payment of $110 million in the form of a secured construction loan from joint venture to seller.
  • Litigation
  • Represented a major oil company as chief litigation counsel in arbitration of a multimillion-dollar dispute with an interstate oil product pipeline related to pipeline facility management contract disputes. Obtained an arbitral award in favor of client in excess of $11 million.
  • Managed all litigation nationwide for Fortune 500 energy company for more than a decade. Handled hundreds of cases, including gas, power and coal trading and marketing disputes, as well as gathering system and intrastate pipeline litigation.
  • Defended pipeline certificate obtained by midstream transportation and storage developer against National Environmental Policy Act (NEPA) challenges in U.S. Court of Appeals by environmental advocacy groups, including Sierra Club.
  • Regulatory
  • Served as regulatory counsel to midstream natural gas company on 550,000 dekatherm per day pipeline expansion project in Marcellus shale producing region.
  • Represented a certificated interstate natural gas storage company in a nonpublic investigation by FERC’s Office of Enforcement growing out of the installation of unapproved compressors in violation of the storage company’s certificate. Obtained an expedited amendment to the certificate and resolution of the enforcement matter without penalties or other adverse actions.
  • Defended a natural gas gatherer in complaint proceeding before FERC seeking to impose federal regulation under the Natural Gas Act on gatherer’s pipeline facilities.
  • Represented Wyoming and Colorado clients in Hart-Scott-Rodino premerger proceedings before the Federal Trade Commission (FTC) in connection with Kinder Morgan Inc./El Paso Natural Gas Co. merger.
  • Defended a natural gas marketing company in enforcement proceedings seeking millions of dollars in civil penalties for alleged market manipulation violations. Challenged FERC’s statutory authority and raised constitutional due process challenge to FERC’s attempt to impose civil penalties based on retroactive application of a change in commission policy. FERC dropped the market manipulation charges and settled the matter.
  • Represented major oil company shipper complainant in a case of first impression concerning FERC’s regulation of oil pipelines under the Energy Policy Act of 1992 that resulted in multimillion-dollar settlement.
  • Represent major industry trade association in legislative and regulatory proceedings involving electric transmission issues.
  • Environmental/Safety Health
  • Advised oil field services company on disclosure requirements and protection of confidential business information related to content of hydraulic fracturing fluid. Provided Toxic Control Substances Act training to in-house staff.
  • Serve as primary environmental compliance counsel to multiple-plant, multiple-state inorganic chemical manufacturer. Representative projects include responding to requests for information on release reports, advising on hazardous waste recycling, resolving notices of violation, Occupational Safety and Health Administration (OSHA) citations and notices of probable violation for rail and truck hazardous materials transportation, interpreting requirements for risk management programs and chemical safety security, and planning for permit renewal changes.
  • Counseled owner of refineries and petroleum pipelines blamed for gasoline leaks in pursuit of coverage against excess insurance carrier. Won favorable ruling in case of first impression under Illinois law, placing client in a position to recover millions of dollars in fees and expenses, including those spent on remediation.