On 15 October 2015, the Federal Energy Regulatory Commission (FERC or “Commission”) adopted a regulation specifying the extent to which natural gas facility management agreements (AMAs) were an exception to the Commission`s prohibition on purchase/sale. In response to a request from Rice Energy Marketing, LLC, the Commission clarified that the exemption from the prohibition on purchase/sale transactions for certain transactions with asset managers applies to both AMA`s “delivery” and amAs “delivery,” although the Commission has previously only referred to the exemption as part of AMA`s delivery. The year 1992 in Order No The Commission`s prohibition on buy/sell operations prohibits a holder of intergovernmental pipeline capacity from purchasing gas from a seller, to transport gas on an intergovernmental pipeline and then resell the gas to the vendor after leaving the pipeline – transactions that would allow a capacity holder to circumvent capacity release requirements by allowing another party to effectively use its pipeline capacity. While such sales are prohibited, the Commission granted in Order 712 “an exemption from the prohibition on purchase/sale for AMA that may benefit from the exemption from tenders and tenders, but only for the quantities of gas delivered to the liberating shipper.” The Commission found that it was acceptable for a gas buyer to use an asset manager to manage its pipeline capacity while maintaining direct responsibility to purchase gas, even if these purchases were to be sold to the asset manager who manages the pipeline`s capacity, which could be contrary to the purchase/sale prohibition. However, in Regulation 712, the Commission did not directly specify whether AAAs would not be exempt from the purchase/sale ban in a similar manner. In its october 15, 2015 decision, the Commission stated that “the purchase/sale transactions in which the AMA distribution shipper sells its natural gas to its asset manager, the asset manager transport the gas via the released capacity and the asset manager resells the natural gas to the liberating shipper, are not purchase/sale transactions of this type prohibited by Regulation 636.” The Commission found that, although the exemption under Regulation 712 reviewed and expressly granted a purchase/sale exemption only for delivery AAAs, the exemption should apply to “corresponding transactions conducted pursuant to a DELIVERY AMA.” The Commission found that buy/sell transactions related to AMA such as delivery AMA did not circumvent capacity release rules, as capacity continues to be used for the same purpose as that for which the shipper of the AMA delivery company originally purchased it to transport its natural gas to the market. In addition, the transfer of capacity to the asset manager is transparent, both in deliveries and in delivery AAAs, in accordance with the Commission`s capacity release rules (which do not require tenders for AMA, but which require unblocking).