MIGC LLC WRITTEN PROCEDURES: MARKETING AFFILIATE STANDARDS OF CONDUCT
IN COMPLIANCE WITH ORDER NO. 717
I. BACKGROUND
On October 16, 2008, the Federal Energy Regulatory Commission ("Commission") issued
Order No. 717 (Docket No. RM07-1-000, 125 FERC ¶61,064) establishing revised Standards
of Conduct for Transmission Providers ("Standards of Conduct") as set forth in Part 358
of the Commission's Code of Federal Regulations ("CFR"), which govern the relationship
between Transmission Providers and their marketing affiliates. These Standards of Conduct
revise previous standards promulgated in Order No. 2004 and interim Order No. 690, and
their progeny. The revised Standards of Conduct apply to any interstate natural gas
pipeline that conducts transportation transactions with an affiliate that engages in
marketing functions.
MIGC is a transmission provider as defined in Section 358.3(k)(2) of the Standards of Conduct.
MIGC conducts no pipeline marketing functions as defined in Section 358.3 (c). MIGC conducts
transportation transactions with certain of its marketing affiliates, and is therefore subject
to the Standards of Conduct.
MIGC LLC ("MIGC") documents herein its written procedures in compliance with Section 358.7(d)
of the Standards of Conduct. MIGC reserves the right to amend these procedures and any
application thereof, in accordance with future regulatory or industry guidance, practices or
requirements.
II. SMALL PIPELINE PARTIAL WAIVER
FERC issued an order in Docket Nos. TS04-256 and 266 (July 7, 2004) granting MIGC a small
pipeline exemption from Order 2004 waiving MIGC's obligation to comply with the independent
functioning requirement, and waived certain information disclosure prohibitions.
Order No. 717 at P 31 specifically extended the waivers granted in response to Order No. 2004.
MIGC's partial waiver from Order 2004 remains in full force and effect with respect to the
revised Standards of Conduct as stated in Order No. 717. As a result, MIGC is not required to
comply with the current Section 358.5 requirement for independent functioning between employees.
Nor is MIGC required to comply with the Standards of Conduct in Section 358.5(b)(ii) related to
limiting access and prohibiting disclosure to MIGC information and the contemporaneous disclosure
posting requirements in Sections 358.7(a) and 358.7(h) of disclosed information.
III. NON-DISCRIMINATION REQUIREMENT
MIGC will treat all transmission customers, affiliated and non-affiliated, on a not unduly
discriminatory basis, and must not make or grant any undue preference or advantage to any
person or subject any person to any undue prejudice or disadvantage with respect to any
transportation of natural gas in interstate commerce.
MIGC and its employees will apply all tariff provisions relating to the sale or purchase of
open access transmission service in a fair and impartial manner that treats all transmission
customers in a not unduly discriminatory manner. MIGC will exercise discretion only if its
tariff provisions permit the use of discretion and only to the extent permitted by its tariff.
MIGC may not, through its tariffs or otherwise, give undue preference to any person in matters
relating to the sale or purchase of transmission service (including, but not limited to, issues
of price, curtailments, scheduling, priority, ancillary services, or balancing). MIGC will
process all similar requests for transmission in the same manner and within the same period
of time.
IV. INDEPENDENT FUNCTIONING RULE
As discussed in Section II of these procedures, MIGC received an order which remains in full
force and effect waiving its obligation to comply with the Independent Functioning requirement
of the Standards of Conduct.
MIGC endeavors, to the maximum extent practicable and in accordance with industry best practices,
to maintain functional independence between its transmission function employees and the marketing
function employees of Anadarko.
V. NO CONDUIT RULE
MIGC will not use anyone as a conduit for disclosing non-public transmission function information
to its marketing function employees.
VI. POSTING REQUIREMENTS
MIGC will post on its Internet website its written procedures implementing the standards of
conduct, the names and addresses of all its affiliates that employ or retain marketing function
employees, a complete list of employee-staffed facilities shared by any of the transmission
provider?s transmission function employees and marketing function employees (including types of
facilities shared and addresses of the facilities), and the job titles and job descriptions of
its transmission function employees.
MIGC will post information concerning potential merger partners as affiliates that may employ or
retain marketing function employees, within seven days after the potential merger is announced.
MIGC will post a notice on its Internet website of any transfer of a transmission function employee
to a position as a marketing function employee, or any transfer of a marketing function employee to
a position as a transmission function employee. The information posted under this section must
remain on its Internet website for 90 days. No such job transfer may be used as a means to circumvent
any provision of this part. The information to be posted must include the name of the transferring
employee, the respective titles held while performing each function (i.e., as a transmission function
employee and as a marketing function employee), and the effective date of the transfer.
MIGC will update on its Internet website in readily accessible form, the information required above
in this Section VI. within seven business days of any change and post the date on which the
information was updated, except in the event of an emergency, in which the posting requirements in
this part may be suspended by the transmission provider as outlined in Section 358.7(g)(2) of the
Standards of Conduct.
Posting of waivers - MIGC must post on its Internet website notice of each waiver of a tariff
provision that it grants in favor of an affiliate and maintain a log of the acts of the waiver
in accordance with Section 358.7(i) of the Standards of Conduct.
VII. CHIEF COMPLIANCE OFFICER
MIGC's Chief Compliance Officer (CCO) will be responsible for compliance with the Standards of
Conduct applicable to MIGC and shall be identified, along with all contact information, on the home
page of MIGC's website, as well as under the Standards of Conduct link. The CCO is responsible for
compliance and enforcement of the Standards of Conduct applicable to MIGC and MIGC's written
procedures, with ultimate responsibility for monitoring compliance. The CCO is the initial contact
for the Commission Staff.
All Anadarko employees are obligated to report any known noncompliance with or violation of these
written procedures or the Standards of Conduct applicable to MIGC.
VIII. TRAINING
MIGC and Anadarko transmission function employees, marketing function employees, officers, directors,
supervisory employees, and any other employees likely to become privy to transmission function
information (the employees designated in Section 358.8(b)(2) of the Standards of Conduct) will
receive initial training as required by Order No. 717. Annual training for the identified employees
will occur at least once a year after the completion of the initial training, and MIGC will provide
training to new employees in the categories listed above within the first 30 days of their employment.
MIGC will train the identified employees either through live training or through third-party training
software, which will include discussion of the Standards of Conduct general principles, their
applicability, and details pertaining to MIGC's implementation of the Standards of Conduct. All
employees who have taken the training will certify electronically or in writing that they have
completed the training. MIGC will distribute these written procedures to all employees who
have been trained, as identified in Section 358.8(b)(2) of the Standards of Conduct.
IX. BOOKS AND RECORDS
MIGC shall maintain its books of account and records separately from those of its affiliates
that employ or retain marketing function employees, and shall make these books and records
available for Commission inspections.
X. OTHER
MIGC will periodically review its website and written procedures to ensure compliance with the
Standards of Conduct posting requirements.