Oil Pipeline Tariff Amendments Aimed at Helping the Flow of Propane

On December 5, theFederal Energy Regulatory Commission (FERC) issued a news release declaring the agency’s acceptance of two oil pipeline tariff amendments aimed at helping the flow of propane to the Midwest. The news release from FERC is welcomed news for FUELIowa members and their customers. Beginning in October, FUELIowa members started notifying the association of potential propane supply challenges. As 2019’s later-than-normal harvest ramped up in November, the challenges became a reality. The late regional harvest paired with higher-than-normal grain moisture content and an early spell of cold weather created demand for propane at a time where propane supplies in Iowa were unable to keep up. In response to the needs of our members, FUELIowa worked closely with the offices of Iowa Governor Kim Reynolds, United States Senator Charles Grassley, United States Senator Joni Ernst, and numerous State Senators and Representatives to educate them on the propane supply challenges facing marketers and their farm customers. Ultimately, through the efforts of FUELIowa and its member companies, Iowa’s leaders petitioned FERC asking that propane shipments be prioritized on certain pipelines supplying product to Iowa. The December 5 release from FERC is the culmination of those efforts.