Oil Pipeline Group Victory

The oil pipeline group achieved a significant victory this week on behalf of our client, Colonial Pipeline Company, which is the largest US transporter of refined petroleum products.  The case involved Colonial’s petition for declaratory order filed at the Federal Energy Regulatory Commission (FERC), regarding a proposed $1 billion expansion of Colonial’s pipeline system. 

As demand has grown along the Gulf Coast-New York City route, the pipeline has reached capacity.  Colonial proposed expanding its system, but stated that it requires significant financial incentives to warrant such an enormous investment.  Various parties, including a group of major airlines, opposed Colonial’s proposed rate treatment, even though they generally favored the project.

FERC granted the petition in virtually all respects, which will allow this important project to go forward.