When the Commission granted Texas Eastern authority to hold capacity on  another pipeline in Texas Eastern Transmission Corporation, 74 FERC P 61,074  (1996), it stated that when a pipeline holds capacity on an upstream  pipeline, the downstream pipeline's customers may hold title to the gas  transported on the upstream pipeline.
The Commission recognized this as one  of the limited exceptions to the shipper must have title rule.
Specifically,  the Commission stated:    The downstream pipeline will not hold title to gas shipped on capacity it has  acquired on an upstream  pipeline.
Rather, shippers on the downstream pipeline will hold title to the  gas on the upstream  pipeline.
We will allow a pipeline to hold the upstream capacity; we will  not, however, allow the pipeline  to hold title to the gas being shipped.
Thus, the downstream pipeline will  be the shipper on the upstream  pipeline, but will not hold title when the gas is being shipped.
This results  in a limited exception to the rule  that a shipper must hold title to gas being shipped.
I believe that if we can address the Commission's other concerns about this  filing, they will grant a similar waiver for this transaction.
You can feel  free to pass this along to your contact at PNM.

PNM filing: shipper must have title
