EBA Gas Primer: An Introduction to FERC Regulation of the Natural Gas Industry
EBA Primer Series: An Introduction to FERC Regulation of the Natural Gas Industry
First Held: May 19-20, 2014
Future training dates have not yet been scheduled.
CLE: Approved for 9.5 CLE for VA, IL and NY.
Teleconference option available.
The goal of this primer is to provide an overview of the federal regulation of the natural gas industry by the Federal Energy Regulatory Commission. Taught by industry practitioners and regulators from FERC, the course begins with a brief overview of the natural gas industry, including the production, gathering, transportation, distribution, and storage of natural gas. The course describes key statutes governing and affecting the interstate transportation of natural gas and discusses key legal milestones. Instructors explain important regulatory concepts, pipeline services, and the scope and limits of FERC jurisdiction. The class covers key sections of the NGA, including imports and exports under Section 3; construction and abandonment under section 7; ratemaking under sections 4 and 5; and enforcement issues.
May 19, 2014 - Noon – 5:30pm
Noon – 1:00 pm: Lunch/Networking Hour
1:00 – 1:10 pm: Welcome and Introduction, Jason Leif, Jones Day, and the President, Energy Bar Association
1:10 – 2:00 pm
What is Natural Gas? Susan Olenchuk, Van Ness Feldman, LLP
• Where is it produced?
• How is it used?
Historical Perspective and Industry Overview Susan Olenchuk, Van Ness Feldman, LLP
• Who’s who in the industry
• What is FERC?
• Physical and Financial Markets
Legal Overview: Key Statutes Susan Olenchuk, Van Ness Feldman, LLP
• Natural Gas Act
• Natural Gas Policy Act of 1978
• Wellhead Decontrol Act of 1989
• Energy Policy Act of 2005
• Pipeline Safety Act
2:10 – 2:40 pm
Key regulatory concepts John McCaffrey, Stinson Leonard Street
• just and reasonable;
• undue preference;
• undue discrimination;
• similarly situated
2:40 - 3:00: Afternoon Break
3:00 – 3:40 pm
Pipeline Services John McCaffrey, Stinson Leonard Street
• Traditional bundled pipeline services
• Pipeline services unbundle
• Anatomy of a FERC Pipeline Tariff
• Pipeline configurations (long-line vs. reticulated)
Scope and Limits of FERC’s Jurisdiction, John McCaffrey, Stinson Leonard Street
• Natural Gas Act: FERC’s regulation of “natural gas companies” and what FERC does not regulate
• FERC’s jurisdiction under § 311 of the Natural Gas Policy Act
3:40 – 4:20 pm
Natural Gas Act Section 3: Imports and Exports Katie Liberty, Office of General Counsel, FERC
• Role of FERC
• Role of Department of Energy
• Statutory Standard
• LNG Exports
4:20 – 5:15 pm
Natural Gas Act Section 7: Constructing and Abandoning Pipelines, Michael Pincus, Van Ness Feldman, LLP
• Role of FERC
• Statutory Standards
• Construction Policy Statement
• Pre-Application Requirements (open Seasons, pre-filing requirements)
• Initial Rate-Setting Authority
• Abandonment issues
5:15 – 5:30 pm Q&A
5:30 - 7:00 pm: Mid-West Chapter of EBA Networking Reception, The 51, 77 West Wacker, Chicago, IL
May 20, 2014: 8:00 am– 3:00 pm
7:30 – 8:00 am: Continental Breakfast
8:00 – 9:30 am
Natural Gas Act Sections 4 & 5: Setting Rates and Terms and Conditions of Service¸ Michael Goldenberg, Federal Energy Regulatory Commission• Sections 4 & 5
• Filed Rate and Mobil-Sierra Doctrines
Rate setting objectives
• Cost-based rates vs. Market-based rates
• Recourse rates, discounted rates and negotiated rates
9:30 – 10:30 am
Cost of Service Ratemaking¸ Jonathan Lesser, Continental Economics, Inc.
• Determining regulated rates
› Revenue Requirement
› Cost Functionalization
› Cost Classification and FERC Uniform System of Accounts
› Cost Allocation
› Rate and Tariff Design
10:30 - 10:50 am: Morning Break
10:50 am - Noon
Key Rate Case Issues Jonathan Lesser, Continental Economics, Inc.
• Rate of Return/Impact of MLPs
• Cost Allocation for System Expansions
Emerging Rate Case Issues Jason Leif, Jones Day
• Impact of Shale
• Recovery of Regulatory Compliance and Infrastructure Upgrade Costs
Noon – 1:15 pm: Lunch
1:15– 2:30 pm
Enforcement Issues, Jason Leif, Jones Day
• FERC’s Office of Enforcement
• Secondary Market Issues (shipper must have title requirement, prohibition on flipping and buy/sells)
• Market Manipulation and Jurisdictional Issues
2:30 – 3:00: Roundtable Re-Cap Discussion and Q&A
CHICAGO MARRIOTT DOWNTOWN MAGNIFICENT MILE
540 NORTH MICHIGAN AVENUE, CHICAGO, IL 60611
EBA has a block of sleeping rooms planned from 18-May-2014 to 21-May-2014 for $301 per night. To make your reservation please reference "Energy Bar Chicago Room Block" and call Reservations Toll Free: 1-877-303-0104 or reserve online at:
Cancellation Policy: Refunds will be given to registrants who submit written cancellation to the address shown on the registration form by May 5, 2014, less a $50 administrative fee. The cancellation policy also applies to registration forms that are received and accepted after the deadline date. No refunds will be given after May 5, 2014. (If cancellation is requested after deadline and accepted, there will be a $75 administrative fee). Substitutions are acceptable at any time (non-members substituting for members will be charged the difference between member and non-member fees). Please note that regardless of the date the cancellation notice is received, no refunds will be processed until after the program. Confirmations will be sent to registrants via email if an address is provided. For more information contact the EBA at (202) 223- 5625.
REGISTRATION INCLUDES THE TWO-DAY PRIMER, ATTENDEE HANDOUTS, LUNCH, BREAKFAST, BREAKS AND SPECIAL EVENT RECEPTION.
SPECIAL EVENT: NETWORKING RECEPTION HOSTED BY MIDWEST CHAPTER
SESSION MATERIALS WILL BE EMAILED TO ALL REGISTRANTS PRIOR TO THE MEETING.
Registration fees are the same for teleconference or in-person attendance.
REGISTRATION FEES: EBA MEMBER NON MEMBER
ATTORNEY $350 $395
NON ATTORNEY $375 $400
YOUNG ATTORNEY- PRIVATE* $275 $300
GOV’T/ STUDENT $100 $125
*THOSE WHO GRADUATED FROM LAW SCHOOL WITHIN LAST THREE (3) YEARS, THAT IS, ON OR AFTER JANUARY 1, 2010.