FTC Approves Kinder Morgan, Inc.'s Request to Modify Final Decision and Order, Divestiture Agreement Related to 2012 Acquisition of El Paso Corp.

The Federal Trade Commission has approved a request by Kinder Morgan, Inc., that the Commission modify the final FTC order and approve a change to a related divestiture agreement.  The order resolved Commission charges that Kinder Morgan’s 2012 acquisition of El Paso Corporation would harm competition in several markets for pipeline transportation and processing of natural gas in the Rocky Mountain region.

The final order required Kinder Morgan to divest its Rockies Express pipeline, Kinder Morgan Interstate Gas Transmission pipeline, and Trailblazer pipeline, as well as two gas processing plants in the Rocky Mountain region and associated storage capacity.  Kinder Morgan also was required, among other things, to provide transitional support to the company purchasing the divested assets.  Kinder Morgan divested the assets to Tallgrass Energy Partners, LP (Tallgrass) in 2012.

In its request, Kinder Morgan asked the FTC to modify the order and approve an extension of the Transition Services Agreement it has with Tallgrass, so Kinder Morgan can continue to support Tallgrass in operating acquired assets.  Without this extension, which is from nine to 19 months, Tallgrass’s ability to compete in the marketplace would be diminished, the request states.

The Commission vote approving Kinder Morgan’s request was 2-0-1-1, with Chairwoman Edith Ramirez not participating and Commissioner Joshua D. Wright abstaining.  (FTC Docket No. C-4355; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526; see related press release dated May 1, 2012)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action.  To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., N.W., Room 7117, Washington, DC 20001.  To learn more about the Bureau of Competition, read Competition Counts.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.