United States: FERC Holds Williams Field Services' Offshore Pipeline To Be Exempt Gathering Facility

On June 2, 2016, FERC issued a declaratory order finding Williams Field Services – Gulf Coast Company LP's ("WGC") proposed offshore facilities located on Transcontinental Gas Pipe Line Corporation's ("Transco") existing jurisdictional platform, including metering equipment on the platform and a 5.8-mile, 12-inch-diameter pipeline extending from that platform, to be gathering facilities exempt from FERC's jurisdiction. Notably, FERC held that WGC's proposed pipeline will primarily function as a gathering facility, despite being downstream from jurisdictional facilities, because WGC will not commingle gas that has moved through jurisdictional facilities.

On December 11, 2015, WGC filed a petition seeking FERC's determination that WGC's proposed facilities will primarily be gathering facilities exempt from FERC's jurisdiction. WGC stated that it will construct, own, and operate facilities that include (1) a 16-inch-diameter "riser" pipeline on the existing jurisdictional platform operated by Transco, located approximately 60 miles off the coast of Alabama in waters approximately 300 feet deep, which will raise the gas to metering, heating, and specification break facilities; (2) metering facilities on that platform; and (3) a 5.8-mile, 12-inch-diameter pipeline from the platform to an interconnection with an existing jurisdictional pipeline operated by Destin Pipeline Company, L.L.C. ("Destin"). WGC stated that the proposed facilities will receive gas from the Appomattox Development, located approximately 200 miles off the coast of Louisiana in waters more than 7,500 feet deep, via Shell Offshore Inc.'s Norphlet Pipeline. WGC stated that the proposed facilities would then meter the gas and split it into two streams. One stream will flow into Transco's existing 4B Lateral Pipeline to be transported to the Williams Mobile Bay Processing Plant located onshore in Alabama, and the other stream will be diverted into WGC's new 5.8-mile pipeline, which interconnects with Destin's pipeline to transport the gas to the Pascagoula Processing Plant located onshore in Mississippi. Finally, WGC explained that it plans to meter and divide the gas received from the Norphlet Pipeline on Transco's platform because metering facilities cannot be operated underwater.

In the order, FERC stated that it uses the Farmland test to determine the primary function of a facility. The Farmland test considers the (1) length and diameter of a pipeline; (2) extension of facilities beyond a central point in a field; (3) geographic configuration; (4) location of compressors and processing plants; (5) location of wells along all or part of a pipeline; and (6) operating pressure. In addition to physical factors, FERC stated that it also considers non-physical factors, such as the original purpose and operation of the facility and the business activity of the facility owner.

For offshore facilities, FERC has modified the Farmland test due to operational differences that can cause offshore facilities to be larger and longer than onshore facilities. FERC explained that it applies a "sliding scale which will allow the use of gathering pipelines of increasing lengths and diameters in correlation to the distance from shore and the water depth of the offshore production area." In Sea Robin, FERC revised the test for facilities offshore by (1) adopting an additional factor for systems with a centralized aggregation point; (2) adjusting the weight afforded the "behind-the-plant" criterion so the location of processing plants is not necessarily determinative and can be outweighed by other factors; and (3) focusing primarily on physical factors. FERC also explained that it adopted a rebuttable presumption that facilities designed to collect gas produced in waters with depths of 200 meters (656 feet) or more are non-jurisdictional. In addition, FERC stated that facilities downstream of a centralized aggregation point are presumed to be jurisdictional.

Applying the modified test to WGC's proposed facilities, FERC found that the primary function of WGC's facilities will be gathering. FERC found that the modest scope of WGC's project and the absence of compression facilities are indicative of a gathering function. Further, FERC stated that since WGC's facilities will be offshore, it discounted the fact that the facilities will be located upstream of processing, because it would be impractical to place processing plants offshore. FERC also stated that the projected operating pressure of 1,200 pounds per square inch gauge of WGC's pipeline is a product of the wellhead pressure and thus is not indicative of the pipeline's function. In addition, FERC stated that although there will be no wells connected to the pipeline, the pipeline will only be 5.8 miles long and 12 inches in diameter, and that the absence of wells is not determinative of a jurisdictional transmission function if the facilities are relatively small consistent with a gathering function.

Finally, FERC explained that although WGC's facilities will become part of the configuration for which Transco's jurisdictional platform serves as the central aggregation point for Transco's 4B Lateral, WGC's facilities only will receive gas from the non-jurisdictional Norphlet Pipeline and will not commingle any gas that has moved through jurisdictional facilities. Moreover, in making its jurisdictional determination, FERC considered that WGC is constructing the 5.8-mile pipeline to connect to Destin's pipeline because the gas WGC will receive from the Appomattox Development has more liquids and inert gases than Transco or Destin can blend into their pipelines individually and has more liquids and inert gases than the plants can process individually.

A copy of the order is available here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.