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MPSC Approves Settlement Agreement with Northern Michigan Pipeline Company, Company Fined $20,000

Contact:  Judy Palnau (517) 241-3323


May 26, 2009

The Michigan Public Service Commission (MPSC) today approved a settlement agreement with Northern Michigan Pipeline Company, LC, directing the company to pay a $20,000 fine.

On February 20, the MPSC issued an order directing the company to show cause why the authority granted to it by the MPSC on Jan. 13 to construct and operate the Pleasanton Pipeline in Manistee County should not be revoked.

According to the terms and conditions of the settlement, the parties agree that there is a dispute whether NMPL improperly started construction of the pipeline prior to the issuance of the MPSC's Jan. 13 order and whether the pipeline committed other violations of the Commission's procedures.   The company agreed to pay a $20,000 fine to the State of Michigan within 30 days in conjunction with the resolution of this dispute.

The company and the MPSC staff participated in the settlement proceedings.

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

Case No. U-15749

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