Comment Text:
We are filing this comment on behalf of our clients, ONEOK, Inc. and ONEOK Partners, L.P. (collectively “ONEOK”) in response to the Commodity Futures Trading Commission's ("Commission") request for comment on its interpretation regarding forwards with volumetric options. "Further Definition of “Swap,” “Security-Based Swap,” and “Security-Based Swap Agreement”; Mixed Swaps; Security-Based Swap Agreement Recordkeeping," 77 Fed. Reg. 48,208 (August 13, 2012).
By this comment, and for the reasons explained therein, ONEOK also petitions the Commission to clarify through a subsequent Interpretative Statement that agreements for the transportation and storage of natural gas that are priced using a two-part rate, consisting of a monthly reservation or demand charge and a separate usage charge, are within the exclusion from the definition of “swap” for the sale of a nonfinancial commodity for deferred shipment or delivery which is intended to be physically settled under section 1a(47)(B)(ii) of the Commodity Exchange Act.
