Pipeline Co. Can't Make Gas Shipper Buy Capacity: 1st Circ.

Law360, New York (September 27, 2012, 2:50 PM EDT) -- Bangor Gas Co. can’t force a Hydro-Quebec shipping unit to pay for pipeline capacity Bangor had to shed under a Federal Energy Regulatory Commission rule, the First Circuit ruled Wednesday, saying a contract between the two clearly makes the Maine company responsible for all transport costs.

Bangor, which agreed in 1999 to build and operate a pipeline that would carry H.Q. Energy Services’ gas, should have told H.Q. that use of a third company’s lateral line would be needed to complete transportation of the gas, the...
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