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At the request of Rice Energy Marketing LLC, the Federal Energy Regulatory Commission (FERC), on Oct. 15, 2015, issued a Declaratory Order that clarified the extent to which releases of capacity to asset managers are exempt from FERC’s prohibition on buy/sell transactions. As clarified, the exemption extends to volumes of gas purchased from the releasing shipper in a “supply asset management agreement” (supply AMA) as well as a “delivery AMA.” “[T]he Commission clarifies that buy/sell transactions in which the releasing shipper in a supply AMA sells its natural gas to its asset manager, the asset manager transports the gas over the released capacity, and the asset manager then resells the natural gas to the releasing shipper are not buy/sell transactions of the type prohibited by Order No. 636.” By so clarifying, FERC eliminated any question that the two types of AMAs stood on the same footing insofar as it concerns the exemption from the prohibition on buy/sell transactions.

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Photo of Gregory K. Lawrence Gregory K. Lawrence

Gregory K. Lawrence focuses his practice on the electricity and natural gas industries. He is experienced appearing before the Federal Energy Regulatory Commission (FERC) and multiple state utility commissions regarding regulatory proceedings, compliance and enforcement, capacity and energy market structure, transactions and negotiations,

Gregory K. Lawrence focuses his practice on the electricity and natural gas industries. He is experienced appearing before the Federal Energy Regulatory Commission (FERC) and multiple state utility commissions regarding regulatory proceedings, compliance and enforcement, capacity and energy market structure, transactions and negotiations, asset transfers, and governmental affairs. Greg’s clients include funds and financial institutions, marketers, traders, renewable and other project developers, energy storage and demand response assets, municipal and investor-owned utilities, and large energy consumers.

Recognized as a leading energy and electricity lawyer by Chambers USA, Greg is a frequent speaker at energy industry conferences and a contributor to a wide range of publications, including The Electricity Journal, Electric Light & Power, Energy Risk, Bloomberg Law Reports, Project Finance International, Corporate Counsel, Windpower Engineering, and EnergyLaw 360. He also authored a quarterly column in Electric Energy T&D Magazine and “Rationalizing Supply with Demand: Electricity Demand Response in U.S. Wholesale Electricity Markets,” a book chapter in U.S. Law and Taxation.

Photo of Howard L. Nelson Howard L. Nelson

Howard L. Nelson has more than 30 years of regulatory and litigation experience, the majority of which has been related to energy matters before the Federal Energy Regulatory Commission (FERC), state public utility commissions, and the Court of Appeals. His litigation experience includes…

Howard L. Nelson has more than 30 years of regulatory and litigation experience, the majority of which has been related to energy matters before the Federal Energy Regulatory Commission (FERC), state public utility commissions, and the Court of Appeals. His litigation experience includes representing parties in major interstate natural gas and petroleum pipeline hearings involving complex multiparty major rate cases, and in certificate, LNG licensing, restructuring, tariff, fuel, gas quality, merger, and interconnection proceedings. He also advises clients on virtually all aspects of natural gas, including LNG, and oil pipeline regulation, including project development, the design of transportation and storage services and rates, negotiating and drafting contracts, strategic planning, and ensuring compliance with regulatory requirements.

Howard has also assisted clients with due diligence investigations concerning acquisitions and financings of electric, solar and wind assets. Finally, Howard has briefed and argued several cases at the D.C. Circuit and 4th U.S. Circuit Court of Appeals.