NGL Energy Partners does not expect material impact from FERC policy change
NGL Energy Partners announced that it does not expect a material impact from yesterday's revised policy statement by the Federal Energy Regulatory Commission, or FERC to disallow income tax allowance cost recovery in rates charged by pipeline companies organized as master limited partnerships, or MLPs. NGL owns Grand Mesa Pipeline, a FERC regulated interstate crude oil pipeline that operates from the DJ Basin in Weld County, Colorado with deliveries to Cushing, Oklahoma. FERC's revised policy impacts cost-of-service rates on oil pipelines. Currently, the volumes of crude oil that are transported on Grand Mesa are subject to contractual agreements. Therefore, FERC's revised policy will not impact Grand Mesa at the present time.