Court Sides With FERC In Gas Pipeline Dispute

Law360, New York (July 25, 2007, 12:00 AM EDT) -- An association for natural gas pipeline owners will have to record the costs of testing pipeline systems as expenses, after a circuit judge ruled on Tuesday that its arguments to treat the costs as investments were unreasonable and insufficient.

The case relates to the Pipeline Safety Improvement Act of 2002, which requires every operator of natural gas pipelines to adopt and implement a written integrity management program to monitor pipeline segments in high-population areas.

The integrity management program forces companies to conduct baseline integrity assessments of...
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