MEMORANDUM

TO: Regulatory Affairs Committee
      Gas Issues Working Group

FROM:	Jim Steffes, Regulatory Affairs Committee Chair
            John Orr, Gas Issues Working Group Chair
            Julie Simon, Vice President of Policy
            Jack Cashin, Senior Manager of Policy

DATE:	11/15/2001 
RE: EPSA Second Draft Comments on Pipeline Capacity 
      Recall  NOPR 
?			Comments due November 19th
?		
As discussed on Wednesday's Conference Call attached are second draft EPSA comments on FERC's Notice of Proposed Rulemaking (NOPR) on pipeline capacity recall.  This draft reflects the changes suggested during the conference call. The following are the major changes from the earlier draft:

1. The word "Opposing" has been removed from the filing.  Rather the filing retains the same arguments but indicates that EPSA has "concerns".

2. We added footnote 1 to stress that in no event should the Commission mandate that such recall provisions be included in a recall notice.  Rather consistent with the NOPR, such recalls should only be permitted, with the ultimate determination being subject to negotiation between the releasing and replacement shipper.

3. We added footnote 3 to recognize that this filing reflects the views of EPSA as an organization, not the views of individual members.

4. We added the footnotes missing from the earlier draft.

5. We did some minor editing to page 3, the first full paragraph.  The sentence starting with "This service will be of less value to potential purchasers than any firm service the pipeline could offer...." and well as the next sentence are slightly different than the earlier draft.

Please review the draft and forward any comments or proposed changes to the draft to Jack Cashin at EPSA at jcashin@epsa.org by close of business on Friday, November 16th so that we can make a timely filing on Monday, November 19th.  

Attachment