FERC Reiterates That It Lacks Authority To Compel Interconnection Between Oil Pipelines

In an order addressing Enbridge Energy, L.P.'s (Enbridge's) nomination procedures, FERC held that it lacks authority to order an oil pipeline carrier to provide an interconnection with another carrier.¹ High Prairie Pipeline LLC (High Prairie) had protested Enbridge's filing, arguing that the proposed language could allow Enbridge to deny new shippers access to transportation. High Prairie also asserted that while Enbridge has granted interconnections for its affiliates, Enbridge denied High Prairie's request for a similar interconnection without providing a nondiscriminatory basis for the denial. High Prairie argued that under the Interstate Commerce Act (ICA), FERC can order a pipeline to grant an interconnection if the denial of the interconnection is unjust, unreasonable, or unduly discriminatory, regardless of whether FERC is notified by complaint or protest.