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Pentex Withdraws PUC Application

 

Pentex Pipeline Company, which had petitioned the Pennsylvania Public Utility Commission (PUC) to amend its certificate of public convenience in order to extend delivery and transferral of natural gas beyond its sole local customer—Cargill Meat Solutions—rescinded its application from the PUC as of Dec. 5.

Pamela Polacek, who has provided counsel to Pentex Pipeline and who represented the company at a public hearing held at the Wyalusing Fire Hall on Oct. 7, issued a statement to all registered parties that outlined the company’s current position on the matter.

In the release, Polacek addressed the plans by Pentex to provide natural gas gathering and conveying services to Wyalusing Borough and six neighboring townships, then cited a similar application by Laser Northeast Gathering Company that had been rescinded several months earlier when Laser Northeast concluded that “the proposed service would not qualify as a ‘public utility’ service.”

“Based on this clarification and Pentex’s desire to expeditiously being offered gathering arrangements, Pentex has revised its business plan and strategy. Pentex is no longer willing to serve any and all potential customers; will use contracts to select and serve a defined and limited group of customers; and is no longer committed to expanding its facilities to meet demand of the public as would a public utility.”

The notice goes on to explain that the company will continue to operate as a private pipeline and will be classified as Mark West and Laurel Mountain Midstream LLC. Furthermore, Polacek explains that “Pentex is in the process of evaluating the issues discussed during the public input hearings regarding its corporate status and PUC reports and intends to submit any necessary filings to the Commission regarding its current public utility operations by the end of January 2012.”

 

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