81_FR_39164 81 FR 39049 - Energy Transfer Equity, L.P. and The Williams Companies, Inc.; Analysis To Aid Public Comment

81 FR 39049 - Energy Transfer Equity, L.P. and The Williams Companies, Inc.; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 81, Issue 115 (June 15, 2016)

Page Range39049-39052
FR Document2016-14092

The consent agreement in this matter settles alleged violations of federal law prohibiting unfair methods of competition. The attached Analysis to Aid Public Comment describes both the allegations in the complaint and the terms of the consent orders-- embodied in the consent agreement--that would settle these allegations.

Federal Register, Volume 81 Issue 115 (Wednesday, June 15, 2016)
[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Notices]
[Pages 39049-39052]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14092]


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FEDERAL TRADE COMMISSION

[File No. 151 0172]


Energy Transfer Equity, L.P. and The Williams Companies, Inc.; 
Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair methods of competition. 
The attached Analysis to Aid Public Comment describes both the 
allegations in the complaint and the terms of the consent orders--
embodied in the consent agreement--that would settle these allegations.

DATES: Comments must be received on or before July 11, 2016.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/energytransferequityconsent online or on 
paper, by following the instructions in the Request for Comment part of 
the SUPPLEMENTARY INFORMATION section below. Write ``In the Matter of 
Energy Transfer Equity, L.P.,--Consent Agreement; File No. 151 0172'' 
on your comment and file your comment online at https://ftcpublic.commentworks.com/ftc/energytransferequityconsent by following 
the instructions on the web-based form. If you prefer to file your 
comment on paper, write ``In the Matter of Energy Transfer Equity, 
L.P.,--Consent Agreement; File No. 151 0172'' on your comment and on 
the envelope, and mail your comment to the following address: Federal 
Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., 
Suite CC-5610 (Annex D), Washington, DC 20580, or deliver your comment 
to the

[[Page 39050]]

following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Brian J. Telpner (202-326-2782), 
Bureau of Competition, 600 Pennsylvania Avenue NW., Washington, DC 
20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing consent orders to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of thirty (30) days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement, and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
from the FTC Home Page (for June 9, 2016), on the World Wide Web, at 
http://www.ftc.gov/os/actions.shtm.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before July 11, 2016. 
Write ``In the Matter of Energy Transfer Equity, L.P.,--Consent 
Agreement; File No. 151 0172'' on your comment. Your comment--including 
your name and your state--will be placed on the public record of this 
proceeding, including, to the extent practicable, on the public 
Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a 
matter of discretion, the Commission tries to remove individuals' home 
contact information from comments before placing them on the Commission 
Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which . . . is privileged or confidential,'' as discussed in Section 
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
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    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
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    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/energytransferequityconsent by following the instructions on the 
web-based form. If this Notice appears at http://www.regulations.gov/#!home, you also may file a comment through that Web site.
    If you file your comment on paper, write ``In the Matter of Energy 
Transfer Equity, L.P.,--Consent Agreement; File No. 151 0172'' on your 
comment and on the envelope, and mail your comment to the following 
address: Federal Trade Commission, Office of the Secretary, 600 
Pennsylvania Avenue NW., Suite CC-5610 (Annex D), Washington, DC 20580, 
or deliver your comment to the following address: Federal Trade 
Commission, Office of the Secretary, Constitution Center, 400 7th 
Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. If 
possible, submit your paper comment to the Commission by courier or 
overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that the Commission administers permit the collection of public 
comments to consider and use in this proceeding as appropriate. The 
Commission will consider all timely and responsive public comments that 
it receives on or before July 11, 2016. You can find more information, 
including routine uses permitted by the Privacy Act, in the 
Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Agreement Containing Consent Orders To Aid Public Comment

I. Introduction

    The Federal Trade Commission (``Commission'') has accepted, subject 
to final approval, an Agreement Containing Consent Orders (``Consent 
Agreement'') with Energy Transfer Equity, L.P. (``ETE'') and The 
Williams Company, Inc. (``Williams''). The Consent Agreement is 
designed to remedy the anticompetitive effects that would likely result 
from ETE's proposed acquisition of Williams.
    Under the terms of the proposed Decision and Order (``Order'') 
contained in the Consent Agreement, ETE must divest to a Commission-
approved buyer Williams' ownership interest in Gulfstream Natural Gas 
System L.L.C. (``Gulfstream''), an interstate natural gas pipeline 
serving peninsular (central and southern) Florida. The Order also 
addresses competitive concerns arising from ETE's post-merger control 
over a Williams pipeline segment that serves as the origin for a new 
interstate pipeline that will begin serving Florida in 2017. The Order 
maintains the premerger bargaining position of the new pipeline to 
negotiate future capacity expansions over the Williams pipeline 
segment.
    The Commission has placed the Consent Agreement on the public 
record for 30 days to solicit comments from interested persons. 
Comments received during this period will become part of the public 
record. After 30 days, the Commission will again review the Consent 
Agreement and the comments received, and will decide whether it should 
withdraw from the Consent Agreement, modify it, or make the Order 
final.

II. The Parties and Other Entities

A. ETE

    ETE is a master limited partnership controlling a family of 
companies that own and operate approximately 71,000 miles of natural 
gas, natural gas liquids, refined products, and crude oil pipelines. 
ETE has a 50 percent ownership interest in Florida Gas Transmission LLC 
(``FGT''), one of two interstate pipelines currently transporting 
natural gas to peninsular Florida.

B. Williams

    Williams is an energy infrastructure company focusing primarily on 
natural gas and natural gas liquids infrastructure assets in North 
America.

[[Page 39051]]

Its major holdings include natural gas transportation, gathering, 
treating, and processing assets in multiple natural gas-producing 
areas. Williams has a 50 percent ownership interest in Gulfstream, 
which is the other interstate pipeline currently transporting natural 
gas to peninsular Florida. Williams is also the sole owner of 
Transcontinental Gas Pipe Line Company, LLC (``Transco''), a large 
interstate pipeline system that extends from Texas, Louisiana, and the 
offshore Gulf of Mexico through the Atlantic seaboard and into the New 
York metropolitan area.

C. Sabal Trail

    Sabal Trail Transmission, LLC (``Sabal Trail'') is a new interstate 
pipeline that will begin transporting natural gas to parts of 
peninsular Florida in May 2017. Sabal Trail's sole access to natural 
gas sources will be via a leased segment on the Williams-owned Transco 
system. Sabal Trail and Transco are parties to a capacity lease 
agreement whereby Transco has agreed to expand the leased segment on 
its system in several phases--with each phase to provide a specific 
amount of new pipeline capacity--to support Sabal Trail's operations in 
peninsular Florida.

III. The Proposed Acquisition

    ETE and several affiliates under its control entered into a merger 
agreement with Williams, dated September 28, 2015, pursuant to which 
Williams will be merged with and into Energy Transfer Corp LP, a newly 
created ETE affiliate that will survive the merger (the 
``Acquisition''). The combined entity will become the third largest 
energy company in North America, with a geographically diverse asset 
portfolio used in the transportation, processing, and storage of 
natural gas and natural gas liquids.
    The Commission's Complaint alleges that the Acquisition, if 
consummated, would violate Section 7 of the Clayton Act, as amended, 15 
U.S.C. 18, and Section 5 of the Federal Trade Commission Act, as 
amended, 15 U.S.C. 45, by substantially lessening competition for the 
firm transportation of natural gas by interstate pipeline to locations 
in peninsular Florida.

IV. The Relevant Markets

    Florida's largest natural gas shippers are electric power 
generation utilities, which use natural gas to generate electricity for 
distribution to Florida consumers and businesses. These shippers depend 
on the efficient, reliable, and cost-effective transportation of 
natural gas via interstate pipelines because Florida has virtually no 
in-state natural gas production and no natural gas storage.
    The Commission's Complaint alleges that the relevant product market 
within which to analyze the Acquisition is the firm transportation of 
natural gas by interstate pipeline. Firm pipeline transportation 
guarantees shippers the right to a certain amount of pipeline capacity, 
which generally is not subject to interruption or curtailment by the 
pipeline. Because Florida natural gas shippers, especially electric 
utilities, require a constant and reliable source of natural gas, they 
could not meaningfully substitute non-firm transportation services even 
if the cost of firm pipeline transportation were to increase.
    The Commission's Complaint alleges that the relevant geographic 
market in which to assess the competitive effects of the Acquisition is 
peninsular Florida, which includes pipeline delivery points in central 
and southern Florida.
    Market concentration will significantly increase because of the 
Acquisition. Many natural gas delivery points in peninsular Florida are 
connected to (or reasonably can connect to) both FGT and Gulfstream. 
For shippers located at these delivery points, the Acquisition results 
in a pipeline monopoly. A small number of delivery points connect to 
(or reasonably can connect to) FGT, Gulfstream, and--by May 2017--Sabal 
Trail. For shippers located at these delivery points, the merger 
reduces competitive alternatives from three to two.

V. Effects of the Acquisition

    The Acquisition likely would substantially lessen competition for 
the provision of firm natural gas pipeline transportation to delivery 
points in peninsular Florida. The Acquisition would eliminate 
competition between FGT and Gulfstream that historically has enabled 
Florida shippers to obtain lower transportation rates and better terms 
of service. Absent the Acquisition, competition between FGT and 
Gulfstream likely would continue to allow Florida shippers to negotiate 
better rates and non-price terms.
    In addition, the Acquisition likely will change the incentives of 
Transco's owner to accommodate future capacity expansions of Sabal 
Trail via Transco. FGT can add relatively small amounts of capacity to 
its system more cost-effectively than can Gulfstream. Moreover, FGT's 
pipeline system overlaps with the proposed Sabal Trail system more 
extensively than does Gulfstream's system. If Sabal Trail cannot expand 
its capacity, shippers who cannot obtain new capacity on Sabal Trail 
will more likely turn to FGT for that capacity than to Gulfstream. 
Thus, unlike Williams, which had little or no incentive to deny Sabal 
Trail additional volumes on Transco, ETE will have an incentive to 
forestall expansions on Sabal Trail in order to capture those 
expansions on FGT.

VI. Entry Conditions

    Entry into the relevant markets would not be timely, likely, or 
sufficient to deter or counteract the anticompetitive effects arising 
from the Acquisition. Barriers to entry are significant and include the 
high capital costs of constructing a new interstate pipeline and the 
substantial time needed to design, permit, and construct a new pipeline 
system. Moreover, constructing a new pipeline system would require 
commitments from shippers based on significant new market demand for 
natural gas. Such market demand is unlikely to accumulate for the 
foreseeable future.

VII. The Agreement Containing Consent Order

    The proposed Order resolves the anticompetitive concerns described 
above by requiring ETE to divest Williams' ownership interest in 
Gulfstream and by restoring Sabal Trail's premerger bargaining power to 
negotiate future capacity expansions on Transco.
    To preserve competition between FGT and Gulfstream, the proposed 
Order requires that, within 180 days of closing the Acquisition, ETE 
must divest Williams' 50 percent interest in Gulfstream to a 
Commission-approved buyer. Post-closing divestiture is appropriate 
because this ownership interest is a high-value, low-risk asset likely 
to generate substantial interest among more than one potentially 
acceptable buyer. Under the terms of the Order to Maintain Assets 
contained in the Consent Agreement, ETE must maintain Gulfstream in 
substantially similar condition until the divestiture process is 
complete, thereby preserving Gulfstream as a viable, competitive, and 
marketable asset.
    Any acquirer of Williams' ownership interest in Gulfstream must 
receive prior approval from the Commission. The Commission's goal in 
evaluating possible purchasers of divested assets is to maintain the 
competitive environment that existed prior to the acquisition. A 
proposed acquirer of divested assets must not itself present 
competitive problems.
    The proposed Order also preserves Sabal Trail's future 
competitiveness by

[[Page 39052]]

ensuring Sabal Trail's ability to negotiate additional Transco 
expansions. First, the proposed Order incorporates the capacity lease 
agreement between Transco and Sabal Trail, which reflects terms Transco 
and Sabal Trail reached when an independent and motivated commercial 
partner owned Transco. The proposed Order gives Sabal Trail additional 
flexibility and optionality in obtaining the phased capacity expansions 
already contemplated by the capacity lease agreement. The proposed 
Order terminates twelve years after it issues, in order to cover the 
entirety of ETE's obligations for the expansions currently outlined in 
the capacity lease agreement.
    Second, the Order requires that, within one year of the closing of 
the Acquisition, ETE offer to amend the capacity lease agreement to 
allow Sabal Trail to request expansions for as long as an additional 
eight years after the last expansion currently in the capacity lease 
agreement. These provisions ensure that Sabal Trail has the same future 
expansion opportunities as would have existed if an independent 
Williams continued to own Transco.
    ETE must offer future expansions on the same terms and conditions 
that Transco negotiated as an independent entity. For each requested 
expansion, ETE must inform Sabal Trail of the estimated expansion cost, 
using the same methodology for each that Transco uses in its normal 
course of business. ETE then is obligated to expand Transco as 
requested by Sabal Trail. However, to prevent Sabal Trail from 
requesting cost-prohibitive expansions--expansions that an independent 
Williams would not have agreed to--ETE retains the right to require 
Sabal Trail to pay for the capital costs of the expansion, in which 
case ETE would not charge Sabal Trail a lease fee for that particular 
expanded capacity.
    The proposed Order does not obligate ETE to expand Transco if Sabal 
Trail does not have (or has not secured pre-construction commitments 
from shippers for) sufficient capacity to use the expansion to serve 
Florida. The Acquisition does not change the incentives of Transco's 
owner to deny capacity expansions to serve areas outside of Florida. 
Thus, without this limitation, the proposed Order could give Sabal 
Trail expansion rights it would have been unable to negotiate from an 
independent Transco.
    The Commission does not intend this analysis to constitute an 
official interpretation of the proposed Order or to modify its terms in 
any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-14092 Filed 6-14-16; 8:45 am]
 BILLING CODE 6750-01-P



                                                                          Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Notices                                                  39049

                                             permitted by the Privacy Act, in the                    were communicating directly with their                 requires Practice Fusion to retain
                                             Commission’s privacy policy, at http://                 doctors, and did not intend for their                  documents relating to its compliance
                                             www.ftc.gov/ftc/privacy.htm.                            feedback to be posted publicly.                        with the order for a five-year period.
                                                                                                        The Commission’s proposed                           Part VII mandates that Practice Fusion
                                             Analysis of Proposed Consent Order To                   complaint alleges that Practice Fusion                 make available to the FTC information
                                             Aid Public Comment                                      violated Section 5(a) of the Federal                   or subsequent compliance reports, as
                                                The Federal Trade Commission                         Trade Commission Act from April 2012                   requested. Part VIII is a provision
                                             (‘‘Commission’’) has accepted, subject to               through April 2013 by failing to                       ‘‘sunsetting’’ the order after twenty (20)
                                             final approval, an agreement containing                 adequately disclose that survey                        years, with certain exceptions.
                                             a consent order from Practice Fusion,                   responses would be made publicly                          The purpose of this analysis is to aid
                                             Inc. (‘‘Practice Fusion’’).                             available on Patient Fusion’s healthcare               public comment on the proposed order.
                                                The proposed consent order has been                  provider review Web site. This fact,                   It is not intended to constitute an
                                             placed on the public record for thirty                  according to the proposed complaint,                   official interpretation of the complaint
                                             (30) days for receipt of comments by                    would be material to consumers in                      or proposed order, or to modify in any
                                             interested persons. Comments received                   deciding whether or how to respond to                  way the proposed order’s terms.
                                             during this period will become part of                  the survey. The Commission’s
                                             the public record. After thirty (30) days,                                                                       By direction of the Commission.
                                                                                                     complaint alleges that Practice Fusion’s
                                             the Commission will again review the                                                                           Donald S. Clark,
                                                                                                     failure to adequately disclose this
                                             agreement and the comments received,                    material information is a deceptive act                Secretary.
                                             and will decide whether it should                       or practice in violation of Section 5.                 [FR Doc. 2016–14091 Filed 6–14–16; 8:45 am]
                                             withdraw from the agreement or make                        The proposed order contains                         BILLING CODE 6750–01–P
                                             final the agreement’s proposed order.                   provisions designed to prevent Practice
                                                Since 2007, Practice Fusion has                      Fusion from engaging in the same or
                                             provided services for healthcare                        similar acts or practices in the future.               FEDERAL TRADE COMMISSION
                                             providers. Since 2007, its core service                 Part I of the proposed order prohibits                 [File No. 151 0172]
                                             has been a cloud-based electronic health                Practice Fusion from misrepresenting
                                             record (‘‘EHR’’) that allows healthcare                 the extent to which it uses, maintains,                Energy Transfer Equity, L.P. and The
                                             providers in the ambulatory/out-patient                 and protects the privacy and                           Williams Companies, Inc.; Analysis To
                                             setting to store and utilize health                     confidentiality of any covered                         Aid Public Comment
                                             information. In 2009, Practice Fusion                   information, including the extent to
                                             launched the Patient Fusion Web site,                   which covered information is made                      AGENCY:    Federal Trade Commission.
                                             www.patientfusion.com (‘‘Patient                        publicly available.                                    ACTION:   Proposed consent agreement.
                                             Fusion’’), with an online portal that                      Part II of the proposed order requires
                                             allows patients, who have been granted                                                                         SUMMARY:    The consent agreement in this
                                                                                                     Practice Fusion, prior to making any
                                             access by their healthcare providers, to                                                                       matter settles alleged violations of
                                                                                                     consumer’s covered information
                                             view, download, and transmit to other                                                                          federal law prohibiting unfair methods
                                                                                                     publicly available, to (A) clearly and
                                             providers their health information and                                                                         of competition. The attached Analysis to
                                                                                                     conspicuously disclose to the consumer,
                                             send and receive secure messages                                                                               Aid Public Comment describes both the
                                                                                                     separate and apart from ‘‘privacy
                                             directly to their providers.                            policy,’’ ‘‘terms of use’’ page, or similar            allegations in the complaint and the
                                                Practice Fusion planned to launch a                  document, that such information is                     terms of the consent orders—embodied
                                             public-facing healthcare provider                       being made publicly available; and (B)                 in the consent agreement—that would
                                             directory portion of the Patient Fusion                 obtain the consumer’s affirmative                      settle these allegations.
                                             Web site in 2013. The directory would,                  express consent.                                       DATES: Comments must be received on
                                             among other things, allow current and                      Part III of the proposed order                      or before July 11, 2016.
                                             prospective patients to read patient                    prohibits Practice Fusion from                         ADDRESSES: Interested parties may file a
                                             reviews of providers. To populate this                  displaying any healthcare provider                     comment at https://
                                             Web site with reviews, starting on April                review information obtained from                       ftcpublic.commentworks.com/ftc/
                                             5, 2012, Practice Fusion sent emails to                 consumers between April 5, 2012 and                    energytransferequityconsent online or
                                             the patients of its healthcare provider                 April 8, 2013. Part III of the proposed                on paper, by following the instructions
                                             clients soliciting those patients to take               order also prohibits Practice Fusion                   in the Request for Comment part of the
                                             surveys to rate and review their                        from maintaining such information,                     SUPPLEMENTARY INFORMATION section
                                             provider. The email—and the survey                      except for review and retrieval by its                 below. Write ‘‘In the Matter of Energy
                                             itself—suggested that the health care                   healthcare provider customers, or their                Transfer Equity, L.P.,—Consent
                                             provider was directly seeking the survey                respective agents, contractors, assigns,               Agreement; File No. 151 0172’’ on your
                                             responses to improve the consumer’s                     or as permitted to comply with                         comment and file your comment online
                                             experience on future visits. Neither the                applicable law, regulation, or legal                   at https://ftcpublic.commentworks.com/
                                             email nor the survey clearly indicated                  process.                                               ftc/energytransferequityconsent by
                                             that the reviews would be posted                           Parts IV through VIII of the proposed               following the instructions on the web-
                                             publicly. Practice Fusion solicited                     order are reporting and compliance                     based form. If you prefer to file your
                                             reviews for a full year—collecting                      provisions. Part IV requires                           comment on paper, write ‘‘In the Matter
                                             information from over 600,000 patients                  acknowledgment of the order and                        of Energy Transfer Equity, L.P.,—
                                             during that time—before launching the                   dissemination of the order now and in                  Consent Agreement; File No. 151 0172’’
ehiers on DSK5VPTVN1PROD with NOTICES




                                             review service on April 8, 2013, at                     the future to persons with supervisory                 on your comment and on the envelope,
                                             which time all of the reviews previously                responsibilities relating to the subject               and mail your comment to the following
                                             collected were posted publicly on the                   matter of the order. Part V ensures                    address: Federal Trade Commission,
                                             Internet. Many of the reviews contained                 notification to the FTC of changes in                  Office of the Secretary, 600
                                             highly sensitive information, combined                  corporate status and mandates that                     Pennsylvania Avenue NW., Suite CC–
                                             with identifying information, indicating                Practice Fusion submit an initial                      5610 (Annex D), Washington, DC 20580,
                                             that many patients likely thought they                  compliance report to the FTC. Part VI                  or deliver your comment to the


                                        VerDate Sep<11>2014   15:15 Jun 14, 2016   Jkt 238001   PO 00000   Frm 00029   Fmt 4703   Sfmt 4703   E:\FR\FM\15JNN1.SGM   15JNN1


                                             39050                        Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Notices

                                             following address: Federal Trade                        46(f), and FTC Rule 4.10(a)(2), 16 CFR                     Commission’s privacy policy, at http://
                                             Commission, Office of the Secretary,                    4.10(a)(2). In particular, do not include                  www.ftc.gov/ftc/privacy.htm.
                                             Constitution Center, 400 7th Street SW.,                competitively sensitive information
                                                                                                                                                                Analysis of Agreement Containing
                                             5th Floor, Suite 5610 (Annex D),                        such as costs, sales statistics,
                                                                                                                                                                Consent Orders To Aid Public Comment
                                             Washington, DC 20024.                                   inventories, formulas, patterns, devices,
                                             FOR FURTHER INFORMATION CONTACT:                        manufacturing processes, or customer                       I. Introduction
                                             Brian J. Telpner (202–326–2782),                        names.                                                        The Federal Trade Commission
                                             Bureau of Competition, 600                                 If you want the Commission to give                      (‘‘Commission’’) has accepted, subject to
                                             Pennsylvania Avenue NW., Washington,                    your comment confidential treatment,                       final approval, an Agreement
                                             DC 20580.                                               you must file it in paper form, with a                     Containing Consent Orders (‘‘Consent
                                                                                                     request for confidential treatment, and                    Agreement’’) with Energy Transfer
                                             SUPPLEMENTARY INFORMATION: Pursuant
                                                                                                     you have to follow the procedure                           Equity, L.P. (‘‘ETE’’) and The Williams
                                             to Section 6(f) of the Federal Trade
                                                                                                     explained in FTC Rule 4.9(c), 16 CFR                       Company, Inc. (‘‘Williams’’). The
                                             Commission Act, 15 U.S.C. 46(f), and
                                                                                                     4.9(c).1 Your comment will be kept                         Consent Agreement is designed to
                                             FTC Rule 2.34, 16 CFR 2.34, notice is
                                                                                                     confidential only if the FTC General                       remedy the anticompetitive effects that
                                             hereby given that the above-captioned
                                                                                                     Counsel, in his or her sole discretion,                    would likely result from ETE’s proposed
                                             consent agreement containing consent
                                                                                                     grants your request in accordance with                     acquisition of Williams.
                                             orders to cease and desist, having been
                                                                                                     the law and the public interest.                              Under the terms of the proposed
                                             filed with and accepted, subject to final                  Postal mail addressed to the
                                             approval, by the Commission, has been                                                                              Decision and Order (‘‘Order’’) contained
                                                                                                     Commission is subject to delay due to
                                             placed on the public record for a period                                                                           in the Consent Agreement, ETE must
                                                                                                     heightened security screening. As a
                                             of thirty (30) days. The following                                                                                 divest to a Commission-approved buyer
                                                                                                     result, we encourage you to submit your
                                             Analysis to Aid Public Comment                                                                                     Williams’ ownership interest in
                                                                                                     comments online. To make sure that the
                                             describes the terms of the consent                                                                                 Gulfstream Natural Gas System L.L.C.
                                                                                                     Commission considers your online
                                             agreement, and the allegations in the                                                                              (‘‘Gulfstream’’), an interstate natural gas
                                                                                                     comment, you must file it at https://
                                             complaint. An electronic copy of the                                                                               pipeline serving peninsular (central and
                                                                                                     ftcpublic.commentworks.com/ftc/
                                             full text of the consent agreement                                                                                 southern) Florida. The Order also
                                                                                                     energytransferequityconsent by
                                             package can be obtained from the FTC                                                                               addresses competitive concerns arising
                                                                                                     following the instructions on the web-
                                             Home Page (for June 9, 2016), on the                    based form. If this Notice appears at                      from ETE’s post-merger control over a
                                             World Wide Web, at http://www.ftc.gov/                  http://www.regulations.gov/#!home, you                     Williams pipeline segment that serves
                                             os/actions.shtm.                                        also may file a comment through that                       as the origin for a new interstate
                                                You can file a comment online or on                  Web site.                                                  pipeline that will begin serving Florida
                                             paper. For the Commission to consider                      If you file your comment on paper,                      in 2017. The Order maintains the
                                             your comment, we must receive it on or                  write ‘‘In the Matter of Energy Transfer                   premerger bargaining position of the
                                             before July 11, 2016. Write ‘‘In the                    Equity, L.P.,—Consent Agreement; File                      new pipeline to negotiate future
                                             Matter of Energy Transfer Equity, L.P.,—                No. 151 0172’’ on your comment and on                      capacity expansions over the Williams
                                             Consent Agreement; File No. 151 0172’’                  the envelope, and mail your comment to                     pipeline segment.
                                             on your comment. Your comment—                          the following address: Federal Trade                          The Commission has placed the
                                             including your name and your state—                     Commission, Office of the Secretary,                       Consent Agreement on the public record
                                             will be placed on the public record of                  600 Pennsylvania Avenue NW., Suite                         for 30 days to solicit comments from
                                             this proceeding, including, to the extent               CC–5610 (Annex D), Washington, DC                          interested persons. Comments received
                                             practicable, on the public Commission                   20580, or deliver your comment to the                      during this period will become part of
                                             Web site, at http://www.ftc.gov/os/                     following address: Federal Trade                           the public record. After 30 days, the
                                             publiccomments.shtm. As a matter of                     Commission, Office of the Secretary,                       Commission will again review the
                                             discretion, the Commission tries to                     Constitution Center, 400 7th Street SW.,                   Consent Agreement and the comments
                                             remove individuals’ home contact                        5th Floor, Suite 5610 (Annex D),                           received, and will decide whether it
                                             information from comments before                        Washington, DC 20024. If possible,                         should withdraw from the Consent
                                             placing them on the Commission Web                      submit your paper comment to the                           Agreement, modify it, or make the Order
                                             site.                                                   Commission by courier or overnight                         final.
                                                Because your comment will be made                    service.                                                   II. The Parties and Other Entities
                                             public, you are solely responsible for                     Visit the Commission Web site at
                                             making sure that your comment does                      http://www.ftc.gov to read this Notice                     A. ETE
                                             not include any sensitive personal                      and the news release describing it. The                       ETE is a master limited partnership
                                             information, like anyone’s Social                       FTC Act and other laws that the                            controlling a family of companies that
                                             Security number, date of birth, driver’s                Commission administers permit the                          own and operate approximately 71,000
                                             license number or other state                           collection of public comments to                           miles of natural gas, natural gas liquids,
                                             identification number or foreign country                consider and use in this proceeding as                     refined products, and crude oil
                                             equivalent, passport number, financial                  appropriate. The Commission will                           pipelines. ETE has a 50 percent
                                             account number, or credit or debit card                 consider all timely and responsive                         ownership interest in Florida Gas
                                             number. You are also solely responsible                 public comments that it receives on or                     Transmission LLC (‘‘FGT’’), one of two
                                             for making sure that your comment does                  before July 11, 2016. You can find more                    interstate pipelines currently
                                             not include any sensitive health                        information, including routine uses                        transporting natural gas to peninsular
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                                             information, like medical records or                    permitted by the Privacy Act, in the                       Florida.
                                             other individually identifiable health
                                             information. In addition, do not include                   1 In particular, the written request for confidential   B. Williams
                                             any ‘‘[t]rade secret or any commercial or               treatment that accompanies the comment must                  Williams is an energy infrastructure
                                                                                                     include the factual and legal basis for the request,
                                             financial information which . . . is                    and must identify the specific portions of the
                                                                                                                                                                company focusing primarily on natural
                                             privileged or confidential,’’ as discussed              comment to be withheld from the public record. See         gas and natural gas liquids
                                             in Section 6(f) of the FTC Act, 15 U.S.C.               FTC Rule 4.9(c), 16 CFR 4.9(c).                            infrastructure assets in North America.


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                                                                          Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Notices                                           39051

                                             Its major holdings include natural gas                  interstate pipelines because Florida has               who cannot obtain new capacity on
                                             transportation, gathering, treating, and                virtually no in-state natural gas                      Sabal Trail will more likely turn to FGT
                                             processing assets in multiple natural                   production and no natural gas storage.                 for that capacity than to Gulfstream.
                                             gas-producing areas. Williams has a 50                     The Commission’s Complaint alleges                  Thus, unlike Williams, which had little
                                             percent ownership interest in                           that the relevant product market within                or no incentive to deny Sabal Trail
                                             Gulfstream, which is the other interstate               which to analyze the Acquisition is the                additional volumes on Transco, ETE
                                             pipeline currently transporting natural                 firm transportation of natural gas by                  will have an incentive to forestall
                                             gas to peninsular Florida. Williams is                  interstate pipeline. Firm pipeline                     expansions on Sabal Trail in order to
                                             also the sole owner of Transcontinental                 transportation guarantees shippers the                 capture those expansions on FGT.
                                             Gas Pipe Line Company, LLC                              right to a certain amount of pipeline
                                                                                                     capacity, which generally is not subject               VI. Entry Conditions
                                             (‘‘Transco’’), a large interstate pipeline
                                             system that extends from Texas,                         to interruption or curtailment by the                     Entry into the relevant markets would
                                             Louisiana, and the offshore Gulf of                     pipeline. Because Florida natural gas                  not be timely, likely, or sufficient to
                                             Mexico through the Atlantic seaboard                    shippers, especially electric utilities,               deter or counteract the anticompetitive
                                             and into the New York metropolitan                      require a constant and reliable source of              effects arising from the Acquisition.
                                             area.                                                   natural gas, they could not meaningfully               Barriers to entry are significant and
                                                                                                     substitute non-firm transportation                     include the high capital costs of
                                             C. Sabal Trail                                          services even if the cost of firm pipeline             constructing a new interstate pipeline
                                               Sabal Trail Transmission, LLC (‘‘Sabal                transportation were to increase.                       and the substantial time needed to
                                             Trail’’) is a new interstate pipeline that                 The Commission’s Complaint alleges                  design, permit, and construct a new
                                             will begin transporting natural gas to                  that the relevant geographic market in                 pipeline system. Moreover, constructing
                                             parts of peninsular Florida in May 2017.                which to assess the competitive effects                a new pipeline system would require
                                             Sabal Trail’s sole access to natural gas                of the Acquisition is peninsular Florida,              commitments from shippers based on
                                             sources will be via a leased segment on                 which includes pipeline delivery points                significant new market demand for
                                             the Williams-owned Transco system.                      in central and southern Florida.                       natural gas. Such market demand is
                                             Sabal Trail and Transco are parties to a                   Market concentration will                           unlikely to accumulate for the
                                             capacity lease agreement whereby                        significantly increase because of the                  foreseeable future.
                                             Transco has agreed to expand the leased                 Acquisition. Many natural gas delivery
                                                                                                     points in peninsular Florida are                       VII. The Agreement Containing Consent
                                             segment on its system in several                                                                               Order
                                             phases—with each phase to provide a                     connected to (or reasonably can connect
                                             specific amount of new pipeline                         to) both FGT and Gulfstream. For                          The proposed Order resolves the
                                             capacity—to support Sabal Trail’s                       shippers located at these delivery                     anticompetitive concerns described
                                             operations in peninsular Florida.                       points, the Acquisition results in a                   above by requiring ETE to divest
                                                                                                     pipeline monopoly. A small number of                   Williams’ ownership interest in
                                             III. The Proposed Acquisition                           delivery points connect to (or                         Gulfstream and by restoring Sabal
                                                ETE and several affiliates under its                 reasonably can connect to) FGT,                        Trail’s premerger bargaining power to
                                             control entered into a merger agreement                 Gulfstream, and—by May 2017—Sabal                      negotiate future capacity expansions on
                                             with Williams, dated September 28,                      Trail. For shippers located at these                   Transco.
                                             2015, pursuant to which Williams will                   delivery points, the merger reduces                       To preserve competition between FGT
                                             be merged with and into Energy                          competitive alternatives from three to                 and Gulfstream, the proposed Order
                                             Transfer Corp LP, a newly created ETE                   two.                                                   requires that, within 180 days of closing
                                             affiliate that will survive the merger (the                                                                    the Acquisition, ETE must divest
                                                                                                     V. Effects of the Acquisition                          Williams’ 50 percent interest in
                                             ‘‘Acquisition’’). The combined entity
                                             will become the third largest energy                       The Acquisition likely would                        Gulfstream to a Commission-approved
                                             company in North America, with a                        substantially lessen competition for the               buyer. Post-closing divestiture is
                                             geographically diverse asset portfolio                  provision of firm natural gas pipeline                 appropriate because this ownership
                                             used in the transportation, processing,                 transportation to delivery points in                   interest is a high-value, low-risk asset
                                             and storage of natural gas and natural                  peninsular Florida. The Acquisition                    likely to generate substantial interest
                                             gas liquids.                                            would eliminate competition between                    among more than one potentially
                                                The Commission’s Complaint alleges                   FGT and Gulfstream that historically                   acceptable buyer. Under the terms of the
                                             that the Acquisition, if consummated,                   has enabled Florida shippers to obtain                 Order to Maintain Assets contained in
                                             would violate Section 7 of the Clayton                  lower transportation rates and better                  the Consent Agreement, ETE must
                                             Act, as amended, 15 U.S.C. 18, and                      terms of service. Absent the Acquisition,              maintain Gulfstream in substantially
                                             Section 5 of the Federal Trade                          competition between FGT and                            similar condition until the divestiture
                                             Commission Act, as amended, 15 U.S.C.                   Gulfstream likely would continue to                    process is complete, thereby preserving
                                             45, by substantially lessening                          allow Florida shippers to negotiate                    Gulfstream as a viable, competitive, and
                                             competition for the firm transportation                 better rates and non-price terms.                      marketable asset.
                                             of natural gas by interstate pipeline to                   In addition, the Acquisition likely                    Any acquirer of Williams’ ownership
                                             locations in peninsular Florida.                        will change the incentives of Transco’s                interest in Gulfstream must receive prior
                                                                                                     owner to accommodate future capacity                   approval from the Commission. The
                                             IV. The Relevant Markets                                expansions of Sabal Trail via Transco.                 Commission’s goal in evaluating
                                                Florida’s largest natural gas shippers               FGT can add relatively small amounts of                possible purchasers of divested assets is
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                                             are electric power generation utilities,                capacity to its system more cost-                      to maintain the competitive
                                             which use natural gas to generate                       effectively than can Gulfstream.                       environment that existed prior to the
                                             electricity for distribution to Florida                 Moreover, FGT’s pipeline system                        acquisition. A proposed acquirer of
                                             consumers and businesses. These                         overlaps with the proposed Sabal Trail                 divested assets must not itself present
                                             shippers depend on the efficient,                       system more extensively than does                      competitive problems.
                                             reliable, and cost-effective                            Gulfstream’s system. If Sabal Trail                       The proposed Order also preserves
                                             transportation of natural gas via                       cannot expand its capacity, shippers                   Sabal Trail’s future competitiveness by


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                                             39052                        Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Notices

                                             ensuring Sabal Trail’s ability to                         By direction of the Commission.                      will be posted without change to http://
                                             negotiate additional Transco                            Donald S. Clark,                                       www.regulations.gov, including any
                                             expansions. First, the proposed Order                   Secretary.                                             personal and/or business confidential
                                             incorporates the capacity lease                         [FR Doc. 2016–14092 Filed 6–14–16; 8:45 am]            information provided. To confirm
                                             agreement between Transco and Sabal                     BILLING CODE 6750–01–P
                                                                                                                                                            receipt of your comment(s), please
                                             Trail, which reflects terms Transco and                                                                        check www.regulations.gov,
                                             Sabal Trail reached when an                                                                                    approximately two to three days after
                                             independent and motivated commercial                    DEPARTMENT OF DEFENSE                                  submission to verify posting (except
                                             partner owned Transco. The proposed                                                                            allow 30 days for posting of comments
                                             Order gives Sabal Trail additional                      GENERAL SERVICES                                       submitted by mail).
                                             flexibility and optionality in obtaining                ADMINISTRATION                                         FOR FURTHER INFORMATION CONTACT: Mr.
                                             the phased capacity expansions already                                                                         Curtis E. Glover, Sr., Procurement
                                             contemplated by the capacity lease                      NATIONAL AERONAUTICS AND                               Analyst, Office of Acquisition Policy, by
                                             agreement. The proposed Order                           SPACE ADMINISTRATION                                   telephone at 202–501–1448 or
                                             terminates twelve years after it issues, in                                                                    curtis.glover@gsa.gov.
                                             order to cover the entirety of ETE’s                    [OMB Control No. 9000–0056; Docket 2016–
                                                                                                     0053; Sequence 23]                                     SUPPLEMENTARY INFORMATION:
                                             obligations for the expansions currently
                                             outlined in the capacity lease                          Information Collection; Report of                      A. Purpose
                                             agreement.                                              Shipment                                                 Per FAR 47.208, military (and, as
                                                Second, the Order requires that,                                                                            required, civilian agency) storage and
                                             within one year of the closing of the                   AGENCY:  Department of Defense (DOD),                  distribution points, depots, and other
                                             Acquisition, ETE offer to amend the                     General Services Administration (GSA),                 receiving activities require advance
                                             capacity lease agreement to allow Sabal                 and National Aeronautics and Space                     notice of shipments en-route from
                                             Trail to request expansions for as long                 Administration (NASA).                                 contractors’ plants. Generally, this
                                             as an additional eight years after the last             ACTION: Notice of request for public                   notification is required only for
                                             expansion currently in the capacity                     comments regarding an extension of an                  classified material; sensitive, controlled,
                                             lease agreement. These provisions                       existing OMB clearance.                                and certain other protected material;
                                             ensure that Sabal Trail has the same                                                                           explosives, and some other hazardous
                                             future expansion opportunities as                       SUMMARY:    Under the provisions of the
                                                                                                                                                            materials; selected shipments requiring
                                             would have existed if an independent                    Paperwork Reduction Act, the
                                                                                                                                                            movement control; or minimum carload
                                             Williams continued to own Transco.                      Regulatory Secretariat Division will be
                                                                                                                                                            or truckload shipments. It facilitates
                                                ETE must offer future expansions on                  submitting to the Office of Management
                                                                                                                                                            arrangements for transportation control,
                                             the same terms and conditions that                      and Budget (OMB) a request to review
                                                                                                                                                            labor, space, and use of materials
                                             Transco negotiated as an independent                    and approve an extension of a
                                                                                                                                                            handling equipment at destination.
                                             entity. For each requested expansion,                   previously approved information
                                                                                                                                                            Also, timely receipt of notices by the
                                             ETE must inform Sabal Trail of the                      collection requirement concerning
                                                                                                                                                            consignee transportation office
                                             estimated expansion cost, using the                     report of shipment.
                                                                                                                                                            precludes the incurring of demurrage
                                             same methodology for each that Transco                  DATES: Submit comments on or before                    and vehicle detention charges. Unless
                                             uses in its normal course of business.                  August 15, 2016.                                       otherwise directed by a contracting
                                             ETE then is obligated to expand Transco                 ADDRESSES: Submit comments                             officer, a contractor shall send the
                                             as requested by Sabal Trail. However, to                identified by Information Collection                   notice to the consignee transportation
                                             prevent Sabal Trail from requesting                     9000–0056, Report of Shipment, by any                  office at least twenty-four hours before
                                             cost-prohibitive expansions—                            of the following methods:                              the arrival of the shipment.
                                             expansions that an independent                             • Regulations.gov: http://
                                             Williams would not have agreed to—                      www.regulations.gov.                                   B. Annual Reporting Burden
                                             ETE retains the right to require Sabal                     Submit comments via the Federal                       Respondents: 33.
                                             Trail to pay for the capital costs of the               eRulemaking portal by searching the                      Responses per Respondent: 303.
                                             expansion, in which case ETE would                      OMB control number. Select the link                      Annual Responses: 9,999.
                                             not charge Sabal Trail a lease fee for that             ‘‘Submit a Comment’’ that corresponds                    Hours per Response: .167.
                                             particular expanded capacity.                           with ‘‘Information Collection 9000–                      Total Burden Hours: 1,670.
                                                The proposed Order does not obligate                 0056, Report of Shipment’’. Follow the
                                             ETE to expand Transco if Sabal Trail                    instructions provided at the ‘‘Submit a                C. Public Comments
                                             does not have (or has not secured pre-                  Comment’’ screen. Please include your                    Public comments are particularly
                                             construction commitments from                           name, company name (if any), and                       invited on: Whether this collection of
                                             shippers for) sufficient capacity to use                ‘‘Information Collection 9000–0056,                    information is necessary; whether it will
                                             the expansion to serve Florida. The                     Report of Shipment’’ on your attached                  have practical utility; whether our
                                             Acquisition does not change the                         document.                                              estimate of the public burden of this
                                             incentives of Transco’s owner to deny                      • Mail: General Services                            collection of information is accurate,
                                             capacity expansions to serve areas                      Administration, Regulatory Secretariat                 and based on valid assumptions and
                                             outside of Florida. Thus, without this                  Division (MVCB), 1800 F Street NW.,                    methodology; ways to enhance the
                                             limitation, the proposed Order could                    Washington, DC 20405. ATTN: Ms.                        quality, utility, and clarity of the
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                                             give Sabal Trail expansion rights it                    Flowers/IC 9000–0056, Report of                        information to be collected; and ways in
                                             would have been unable to negotiate                     Shipment.                                              which we can minimize the burden of
                                             from an independent Transco.                               Instructions: Please submit comments                the collection of information on those
                                                The Commission does not intend this                  only and cite Information Collection                   who are to respond, through the use of
                                             analysis to constitute an official                      9000–0056, Report of Shipment, in all                  appropriate technological collection
                                             interpretation of the proposed Order or                 correspondence related to this                         techniques or other forms of information
                                             to modify its terms in any way.                         collection. Comments received generally                technology.


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Document Created: 2016-06-15 02:21:15
Document Modified: 2016-06-15 02:21:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionProposed consent agreement.
DatesComments must be received on or before July 11, 2016.
ContactBrian J. Telpner (202-326-2782), Bureau of Competition, 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation81 FR 39049 

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