136 Critical Other Initiate 01/23/2009 01/23/2009 02/28/2009

January 23, 2008

Venice Gathering System, L.L.C. (VGS) has filed a petition with FERC for a waiver of certain tariff provisions governing December 2008 shipper imbalances on VGS.  VGS argues in its pleading that such shipper imbalances were caused, in part, by certain pipeline operational issues beyond shippers' control.  Specifically, the waiver seeks to eliminate cashout penalties on tiered imbalances as referenced in Section 11.4 of the General Terms and Conditions of VGS' Gas Tariff.

FERC may not rule on the waiver request before the imbalance trading deadline of January 25, 2008.  Shippers still have the option to consider trading imbalances, pursuant to Section 11.2 of the General Terms and Conditions, as they normally would, despite VGS' filing of the waiver request.

VGS will post FERC's ruling on the wiaver request as soon as it becomes known.

If you have any questions regarding the filing of this waiver, please call Steven Pustejovsky at 713-584-1353.