Colonial Gas Mixing Illegal, Shipper Tells 3rd Circ.

By Clark Mindock (September 24, 2021, 7:26 PM EDT) -- A Third Circuit panel on Friday questioned whether a dispute over a Colonial Pipeline Co.-affiliated refiner's mixing of butane with a shipper's gasoline would be better resolved by the Federal Energy Regulatory Commission than the courts.

During oral argument, as shipper George E. Warren LLC contends it's owed millions because it received lower-quality gas mixed with butane, the panel questioned how much the courts can do and what must be left to federal regulators. GEW is appealing a lower court ruling that a FERC-approved tariff governing the transportation of petroleum products allowed refiner Powder Springs Logistics LLC, a joint venture between Colonial...

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