Northern’s Abandonment of Palmyra to Ogden A-line Segment Approved
On Sept. 6, 2019, FERC approved Northern Natural Gas Co.’s (Northern) plan to sell approximately 146.6 miles of 24-inch-diameter natural gas pipeline and other appurtenant facilities on its Palmyra to Ogden A-line system in Nebraska and Iowa to DKM Enterprises LLC (DKM).
Northern explained in its Oct. 3, 2018 request for authorization that “DKM intends to reclaim most of the subject facilities for salvage …. Because the abandonment and sale of the A-line includes only a small portion of Northern’s system that transports processed gas to markets on Northern’s system, the abandonment and sale will have no impact on Northern’s ability to serve markets on Northern’s system.”
Northern estimates that the sale will save its ratepayers approximately $35,000 per year in operating and maintenance expenses.
According to FERC, the proposed abandonment “will also eliminate safety risks from leaks and pipeline stress. … [F]ollowing the corrective [action] order issued by [the Pipeline and Hazardous Materials Safety Administration (PHMSA)] in 2016, Northern identified abandonment of the A-line as the remediation alternative in the Remedial Work Plan submitted to PHMSA on April 5, 2017. In addition, the proposed abandonment will eliminate inefficiencies associated with the operation and maintenance of the subject facilities, allowing Northern to serve the needs of its shippers more effectively. … Based on the above, we find that the proposed abandonment is permitted by the public convenience or necessity. Therefore, we will approve the abandonment.”
See ¶608-2: Certificate Proceedings for more information on FERC’s review of proposed pipeline abandonments.
Northern Natural Gas Co., Order Approving Abandonment, 168 FERC ¶61,148 (2019) [Docket No. CP19-1-000].