Midla reaches agreement in principle regarding pipeline

American Midstream Midla LLC

American Midstream Midla LLC (Midla), a subsidiary of American Midstream Partners LP (NYSE: AMID) has an agreement in principle regarding Midla’s interstate pipeline that traverses Louisiana and Mississippi. Parties involved reached the agreement in principle in order to provide continued service to Midla’s customers while addressing safety concerns with the existing pipeline.

Midla and the parties agreed that Midla may retire the existing 1920s vintage pipeline and replace the existing natural gas service with a new 12-inch pipeline from Winnsboro, Louisiana, to Natchez, Mississippi (the Natchez Line) to serve existing residential, commercial, and industrial customers.

Customers not served by the new Natchez Line will be connected to other interstate or intrastate pipelines, other gas distribution systems, or offered conversion to propane service. The agreement is subject to final agreements and ongoing proceedings at the Federal Energy Regulatory Commission (FERC).

Under the agreement in principle and subject to FERC approval, Midla will execute long-term agreements to recover its investment in the Natchez Line. Midla estimates it will take up to two years to secure the necessary permits and construct the Natchez Line.

Midla anticipates filing a formal settlement with the FERC within the next 30 days and receiving approval by late 2014 or early 2015.

 

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