FERC and Natural Gas Pipelines

8/11/2019 FERC and Natural Gas Pipelines

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Federal Energy Regulatory Commission (FERC)

and

Natural Gas Pipelines

Prepared by Dory Hippauf

Research Committee Chair

Gas Drilling Awareness Coalition


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Contents

Timing and Steps for a New Project............................................................................................ 5

MARKET INTEREST/OPEN SEASON: ............................................................................................ 6

Pre-Filing Review Process ........................................................................................................... 7

OPEN HOUSE ............................................................................................................................... 9

FERC HEARING .......................................................................................................................... 10

Appendix 1 Ideas for Better Stakeholder Involvement In the Interstate Natural Gas Pipeline

Planning Pre-Filing Process ........................................................................................................... 16

Appendix 2 Ferc eFiling ................................................................................................................. 30


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What is FERC?

The Federal Energy Regulatory Commission (FERC) is the United States federal agency with

jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing,

natural gas pricing, and oil pipeline rates. FERC also reviews and authorizes liquefied natural gas

(LNG) terminals, interstate natural gas pipelines and non-federal hydropower projects.

How the Commission is Appointed1

The Federal Energy Regulatory Commission is composed of five commissioners who are

appointed by the President of the United States with the advice and consent of the Senate.

Commissioners serve five-year terms, and have an equal vote on regulatory matters.

To avoid any undue political influence or pressure, no more than three commissioners may

belong to the same political party. There is no review of FERC decisions by the President or

Congress, maintaining FERC's independence as a regulatory agency, and providing for fair andunbiased decisions. The Commission is funded through costs recovered by the fees and annual

charges from the industries it regulates.

One member of the Commission is designated by the President to serve as Chair and FERC's

administrative head.

FERC is an independent regulatory agency within the United States Department of Energy.

President and Congress do not generally review FERC decisions, but the decisions are

reviewable by the federal courts. FERC is self-funding, in that it pays for its own operations by

imposing annual charges and fees on the industries it regulates.

FERC is independent of the Department of Energy because FERC activities "shall not be subject

to further view by the Secretary [of Energy] or any officer or employee of the Department". The

Department of Energy can, however, participate in FERC proceedings as a third party.

Conflict of Interest

In February 2014, a lawsuit filed by NO GAS PIPELINE,PETITIONER v. FEDERAL ENERGY

REGULATORY COMMISSION, RESPONDENT and STATOIL NATURAL GAS, LLC, ETAL.,INTERVENORS

2was heard in US Court of Appeals for the District of Columbia Circuit. Part

1About FERC |http://www.ferc.gov/for-citizens/about-ferc.asp

2US Court of Appeals, District of Columbia Circuit | Decided july 1, 2014 | NO GAS PIPELINE,PETITIONER v.

FEDERAL ENERGY REGULATORY COMMISSION, RESPONDENT and STATOIL NATURAL GAS, LLC, ET

AL.,INTERVENORS | http://www.ferc.gov/legal/court-cases/opinions/2014/12-1470.pdf
http://www.ferc.gov/for-citizens/about-ferc.asphttp://www.ferc.gov/for-citizens/about-ferc.asphttp://www.ferc.gov/for-citizens/about-ferc.asphttp://www.ferc.gov/for-citizens/about-ferc.asp


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of the lawsuit included a petition from Jersey City.

The Jersey City petition contends because FERC is beholden to the pipelines applying to it for

certificates of public convenience and necessity, and may not constitutionally adjudicate their

application.

The court rejected the petition on what appears to be technical reasons and did not address the

conflict of interest issue. Technical reasons included:

US Court of Appeals has no jurisdiction on the conflict of interest assertion

Jersey City has no standing

Jersey City waited too long to object

What FERC does and does not do:

3

FERC Responsibilities:

Regulates the transmission and wholesale sales of electricity in interstate commerce;

Reviews certain mergers and acquisitions and corporate transactions by electricity

companies;

Regulates the transmission and sale of natural gas for resale in interstate commerce;

Regulates the transportation of oil by pipeline in interstate commerce;

Approves the siting and abandonment of interstate natural gas pipelines and storage

facilities; Reviews the siting application for electric transmission projects under limited

circumstances;

Ensures the safe operation and reliability of proposed and operating LNG terminals;

Licenses and inspects private, municipal, and state hydroelectric projects;

Protects the reliability of the high voltage interstate transmission system through

mandatory reliability standards;

Monitors and investigates energy markets;

Enforces FERC regulatory requirements through imposition of civil penalties and other

means;

Oversees environmental matters related to natural gas and hydroelectricity projects and

other matters;

Administers accounting and financial reporting regulations and conduct of regulated

companies.

3What FERC Does | http://www.ferc.gov/about/ferc-does.asp


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Areas considered outside of FERC's responsibility include:

Regulation of retail electricity and natural gas sales to consumers;

Approval for the physical construction of electric generation facilities;

Regulation of activities of the municipal power systems, federal power marketing

agencies like the Tennessee Valley Authority and most rural electric cooperatives;

Regulation of nuclear power plants by the Nuclear Regulatory Commission External Link;

Issuance of State Water Quality Certificates;

Oversight for the construction of oil pipelines;

Abandonment of service as related to oil facilities;

Mergers and acquisitions as related to natural gas and oil companies;

Responsibility for pipeline safety or for pipeline transportation on or across the Outer

Continental Shelf;

Regulation of local distribution pipelines of natural gas;

Development and operation of natural gas vehicles;

Reliability problems related to failures of local distribution facilities; and

Tree trimmings near local distribution power lines in residential neighborhoods.

Natural Gas Pipeline Development and Expansion4

Timing and Steps for a New Project

An interstate natural gas pipeline construction or expansion project takes an average of about

three years from the time it is first announced until the new pipe is placed in service. The

project can take longer if it encounters major environmental obstacles or public opposition.

A pipeline development or expansion project involves several steps:

Determining demand/market interest

Publicly announcing the project

Obtaining regulatory approval

Construction and testing

4Energy Information Administration | Natural Gas Pipeline Development and Expansion |

http://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/develop.html

The U.S. Energy Information Administration (EIA) is a principal agency of the U.S. Federal Statistical System

responsible for collecting, analyzing, and disseminating energy information to promote sound policymaking,

efficient markets, and public understanding of energy and its interaction with the economy and the environment.

The Department of Energy Organization Act of 1977 established EIA as the primary federal government authority

on energy statistics and analysis, building upon systems and organizations first established in 1974 following the oil

market disruption of 1973.


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MARKET INTEREST/OPEN SEASON:

Once a corporation has decided to build

or expand a pipeline, the first step it

must take is to determine market

interest through an OPEN SEASON

process.

An open season is held for 1-2 months,

giving potential customers an

opportunity to enter into a nonbinding

agreement to sign up for a portion of

the capacity rights that will be available.

If enough interest is shown during the

open season, the sponsors will develop

a preliminary project design and move

forward. If not enough interest is

evident, the project will most likely be

dropped or placed on indefinite hold.

The public may first learn of the project

prior to or at the time of the Open

Season announcement. Ideally, if the public is opposed, this is the time to start organizing. It is

rare but not unheard of that a project has been canceled or put on hold due to lack of marketinterest.

DEVELOP PIPELINE DESIGN:

The next step is for the corporation to develop the pipeline design.

Options for Pipeline Design

Building an entirely new pipeline

Converting an oil or product pipeline to a natural gas pipeline

Adding a parallel pipeline along a segment of pipeline, called looping

Installing a lateral or extension off the existing mainline

Upgrading and expanding facilities, such as compressor stations, along an existing route.

This option is usually the quickest, least expensive, and has the least environmental

impacts.


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traditional application review process.

Most corporations opt to wait later and file with FERC. In order to comply with NEPA, FERC

must prepare the Environmental Impact Statement (EIS) for the project.

FERC will assign Pre-File Docket number to the project. The number is prefixed as PF followed

by numbers. The Williams Company Atlantic Sunrise Pipeline was assigned pre-filing docket

number PF14-8. The CP prefix is for Certificates for Interstate Natural Gas Pipeline Companies

and assign during the final approval stage.

The Pre-Filing Review Process is where public input may have the greatest impact by attending

the corporations open house, attending and commenting at FERC hearings, and filing

comments with FERC.

Public meetings with local elected officials to discuss the pipeline, informational meetings for

residents, letters to the editor and call-in to local talk radio shows are other ways to rally

participation in the pre-file hearings and open houses.

Corporations are required by FERC to hold public open houses and contact stake holders.

Stake holders are public officials, property owners where the pipeline will be routed, and

agencies etc.

Per FERC 2001 publication Ideas for Better Stakeholder Involvement In the Interstate Natural

Gas Pipeline8: Plan for Public Stakeholder Input Throughout the Process contains ideas for

citizens: (see Appendix 1 for full Document)

As soon as you can become involved, seek out information pro-actively; dont wait for it to

come to you. If you wait, you could lose an opportunity.

Constructive participation will get you more answers and information. Participate from

a foundation of knowledge and fact rather than emotion and rumors.

Let the company know if you are interested in participating in the planning stage (where the

route is determined) and not just the permitting stage (where the route is reviewed by

regulators and agencies).

Recognize what information the companies are obligated to provide and what information

is not available.

8OEP Gas Outreach Team December 2001 | Ideas for Better Stakeholder Involvement In the Interstate Natural Gas

Pipeline | Planning Pre-Filing Process | Industry, Agencies, Citizens, and FERC Staff

http://www.ferc.gov/legal/maj-ord-reg/land-docs/stakeholder.pdf


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Ask questions and follow through until they are answered to your satisfaction.

Although you should be prepared to wait for answers, you should also balance that with

being assertive when it comes to asking for information you should have.

Lots of information is on web sites (companies, agencies); make use of it.

See the Industry Action Options for information about what resources should be madeavailable to citizens; ask about them.

Make sure you get the project managers name and contact information so that you

have someone to call if you have questions.

Understand that your active participation in a companys project can add value. Regardless

of your opinion, it is in the companys best interest to work with you rather than against

you.

Decide if you want to be involved in decisions regarding routing and/or construction

impact mitigation.

When you send in comments to FERC, also send a copy to the company so they are

immediately aware of your opinions.

Explore whether your local municipality, county, or citizen organization will represent you

as a group.

Know the name and phone number of the company land agents supervisor or the number

of the company/landowner hotline. Dont hesitate to call if you feel you are not getting

answers or if you think you are being treated unfairly; the company wants to know.

Consider asking the company if any aid to public participation such as reimbursement for

time and expenses is offered so you can be involved in the process. Every company has a

different approach to how to handle this so dont be surprised if the company you are

working with tells you it is against their policy to provide compensation for your time or

expenses.

OPEN HOUSE

A corporation will hold open house meetings in various communities along the pipeline route.

This is your first opportunity to ask questions and collect informationcome prepared.

The Open House may be in the format of a presentation, followed by a Question-Answer

period. In this format questions asked and answered will be heard by everyone at the same

time. The disadvantage is you may be limited to one question per person. To overcome this


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disadvantage, have questions prepared in advance and distribute one question to each person

in your group.

Another format the corporation may use is a table-display model. Tables and displays are set

up in a large area and people wander about and talk to corporation representatives. The

disadvantage is the questions you ask are only heard by yourself and those immediately around

you. However, you arent limited to one question only, and you can ask the same question to a

number of corporate representatives to compare their answers. Similarly, with a large enough

group asking similar questions will allow you to compare answers for consistency.

Prior to the open house, whatever format, you will want to review the information you have,

determine what information you do not have and prepare a list of questions.

FERC HEARING

FERC will hold hearings in various locations along the pipeline route in preparation for the

Environmental Impact Statement (EIS). At these hearings, citizens are allowed to comment on

the pipeline and submit documents. Ideally, comments should be in a hard copy form and

submitted to the FERC board at the hearing.

Comments should also be submitted on-line at the FERC e-file website and sent to the pipeline

corporation. (See Appendix 2 for using FERC e-file).

For landowners, filing comments as a unified group on common issues is preferable to filing

dozens of comments (though all landowners should intervene as individuals as well as part of a

group).

FERC is an executive agency, not a legislative body. As such, it is not influenced by hundreds of

identical letters or petitionsurging rejection of the pipeline. Comments should be in your own

words even if they contain the same concerns and issues.

What should be included in the comments?

While a list of pipeline accidents and violations by the corporation may be important to you,

FERC does not enforce regulation once a pipeline is in operation. This is the responsibility of

PHMSA, which does not participate in the FERC process. Nonetheless, if such a list is prepared

it should be read at the actual hearing so others attending the hearing (and news reporters) are

made aware of it. It makes good theater, but will not affect FERCs decisions.

In 2014 Delaware Riverkeeper challenged FERCs EIS regarding Tennessee Gas Pipeline


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Companys Northeast Upgrade Project (NEUP)9 Delaware Riverkeeper maintained the EIS

should have included existing pipelines, pipelines under construction and any other proposed

pipeline that would be part of the existing system.

In May 2012 the Federal Energy Regulatory Commission (FERC) issued a certificate of public

convenience and necessity to Tennessee Gas Pipeline Company authorizing construction and

operation of its Northeast Upgrade Project. Delaware Riverkeeper Network, the NJ Sierra Cluband New Jersey Highlands Coalition argued that the approval was inappropriate because FERC

had illegally segmented its environmental review of the Northeast Project by failing to consider

three other connected and interdependent projectsthe 300 Line Project, the Northeast

Supply Diversification Project, the MPP Projectand by failing to provide a meaningful analysis

of the cumulative impacts of the projects.

In a decision issued June 6, 2014, the United States Court of Appeals for the District of

Columbia, ruled that the Delaware Riverkeeper Network, the NJ Sierra Club and New Jersey

Highlands Coalition were correct in their legal challenge to the Tennessee Gas Pipeline

Companys Northeast Upgrade Project and ordered additional analysis and review.

The Court stated: On the record before us, we hold that in conducting its environmental review

of the Northeast Project without considering the other connected, closely related, and

interdependent projects on the Eastern Leg, FERC impermissibly segmented the environmental

review in violation of NEPA. We also find that FERCs EA is deficient in its failure to include any

meaningful analysis of the cumulative impacts of the upgrade projects. We therefore grant the

petition for review and remand the case to the Commission for further consideration of

segmentation and cumulative impacts.

On the record before us, we find that FERC acted arbitrarily in deciding to evaluate the

environment effects of the Northeast Project independent of the other connected action on theEastern Leg.

FERC was ordered to perform a new EIS and include the cumulative impacts.

Considering Luzerne County has the existing Transco pipeline which is being expanded to

include the Leidy Loop in Bear Creek, the Atlantic Sunrise Pipeline which will connect to and

share midstream Transco facilities, and the proposed PennEast and Diamond East projects

comments should be made on the cumulative impact.

Another comment should focus on public convenience and necessity. Are these pipelinesnecessary? Are they a public convenience?

9United States Court of Appeals for the District of Columbia Circuit | Decided June 6, 2014 | No. 13-1015 |

Delaware Riverkeeper Network, Et Al.,Petitioners V. Federal Energy Regulatory Commission, Respondent,

Tennessee Gas Pipeline Company, Llc And Statoil Natural Gas, Llc, Intervenors |On Petition for Review of an Order

of the Federal Energy Regulatory Commission

http://www.cadc.uscourts.gov/internet/opinions.nsf/30B6F48600A85C1E85257CEF004E34F1/$file/13-1015-

1496336.pdf


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Per Spectra EnergyThe Regulatory Process10

:

To determine public convenience and necessity, FERC conducts a comprehensive

environmental review of proposed projects, in accordance with the National

Environmental Policy Act (NEPA). FERC works closely with federal, state, and localagencies such as the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, state

departments of environmental protection, and other state and local agencies. Other

stakeholders, including project neighbors and landowners, are also invited to participate

in the FERC process by attending meetings and providing comments or concerns at

particular times in the process.

One of the concerns with these pipelines is the EXPORTING of natural gas. To the layperson,

exporting natural gas is not a public convenience and necessity.

PennEast has said a number of times the gas won't be exported. Let's add the caveat thatPennEast has no plans to export AT THIS TIME.

The following are my thoughts, and not CONFIRMED anywhere:

There are 3 possible routes to bring the PennEast NG gas to export facilities.

First: The immediate one is Cove Point, MD which has recently been approved by FERC would

be the most likely choice at this time.

Second: Crown Landing in NJ. Important to note. When originally owned by BP, the plan was to

upgrade Crown Landing for IMPORT back in 2003 and had moved along the FERC process and

received Final Environmental Impact Statement on 2006.

The State of Delaware, which opposed the project, argued that its authority extends to the New

Jersey bank of the Delaware River, and that it had jurisdiction over the 2,000-foot pier that is

part of the project.

BP sold Crown Landing to Hess in 2009. Hess said it intended to restart the FERC approval

process in 2011. NOTE: HESS still wanted Crown Landing as IMPORT facility.

Two things happened in 2012: The industry has a gas glut, so spending money to build anIMPORT facility was financially impractical. Secondly: timetable has been disrupted by a little-

known ruling that a widely used model for calculating spill and fire risks at LNG terminals could

result in "truly gross underestimates of the hazard."

10Spectra EnergyThe Regulatory Process |

http://www.spectraenergy.com/content/documents/Media_Resources_PDFs/RegulatoryProcess.pdf


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HESS abandoned its plans for Crown Landing in 2012.

There's no indication that Crown Landing couldn't be revived as an EXPORT TERMINAL at some

future date.

Third: Marcus Hook in Philadelphia - Sunoco Logistics was one of the first to recognize theethane market, and it committed to spending $600 million to build the Mariner East and a

similar project to transport ethane to petrochemical plants in Sarnia, Ontario. That pipeline

went into operation in late 2013.

In the Mariner East project, Sunoco plans to pump 70,000 barrels of ethane and propane a day

across the state to Marcus Hook, where the material must be chilled so it can be stored in

unpressurized tanks. The ethane will be exported, as there is no regional market for it. The

propane can be sold locally or exported.

NOTE: MARCUS HOOK is for ethane/propane not METHANE (natural gas). So at this timeexporting Natural Gas from this area is NOT being considered.


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Also NOTE: Williams Company is planning on building Diamond East which will take the

approximate same route as PennEast from Luzerne County PA to Trenton NJ. Diamond East will

run parallel to the PennEast pipeline and the Transco.

As far as Williams looking at EXPORTS - Diamond East most likely WON'T be used for exports.

Williams has already indicated its Atlantic Sunrise pipeline is an "integral part" of their plans to

EXPORT via Cove Point LNG in MD and Sabine Pass in the Gulf.


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Per Williams Partners Reports First-Quarter 2014 Financial Results, 4/30/201411

, Alan

Armstrong, chief executive officer of Williams Partners' general partner, made the following

comments:

"We're excited about the accelerating pace of expansion projects at Transco, including

Atlantic Sunrise, Dalton Lateral and our newly announced Gulf Trace project. The

Atlantic Sunriseand Gulf Trace projects will serve as important infrastructure for future

LNG export facilities at Cove Point and Sabine Pass .

More research and information is needed to determine what issues should be addressed for

comments.

Please read: Knowing and Protecting Your Rights When an Interstate Gas Pipeline Comes to

Your Community: A Legal and Practical Guide for States, Local Government Units, Non-

Governmental Organizations and Landowners On How the FERC Pipeline Certification Process

Works and How You Can Participate, Prepared by Carolyn Elefant, Law Offices of Carolyn

Elefant, Washington D.C. (http://lawofficesofcarolynelefant.com/)

Obviously, we will need to educate ourselves further, share the information and encourage

public involvement on a large scale. This will not be a weekend project and will required

commitment for the long term.

The expansion of pipelines and the rush to export will continue, and we can expect more plans

to further industrialize our community.

11Williams Partners Reports First-Quarter 2014 Financial Results | 4/30/2014

http://www.williamslp.com/profiles/investor/ResLibraryView.asp?BzID=1296&ResLibraryID=69789&Category=180

0
http://lawofficesofcarolynelefant.com/http://lawofficesofcarolynelefant.com/http://lawofficesofcarolynelefant.com/http://lawofficesofcarolynelefant.com/


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Appendix 1

Ideas for Better Stakeholder Involvement In the Interstate

Natural Gas Pipeline Planning Pre-Filing Process


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Ideas for Better Stakeholder

Involvement In the Interstate Natural

Gas Pipeline Planning Pre-Filing

Process

Industry, Agencies, Citizens, and FERC

Staff

Prepared by:

FERC Staff

OEP Gas Outreach Team


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December 2001


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Table of Contents

Introduction p ii

Action Options

Overview p

Early Involvement Develops BetterSolutions....p.1What All Stakeholders Need toKnow.p.2Tips For AllStakeholders.p.3

Industry Options p 4

Start Early, Involve KeyStakeholders..p.4Demonstrate YourCommitmentp.4Maintain Open Communications withAgenciesp.6Train Company Representatives and LandAgents...p.7Plan for Stakeholder Input Throughout theProcess..p.7Project Announcements andInformation...p.8

Make Route Information Easy andUnderstandable.....p.9Explain Mitigation, Compensation andBenefits...p.10Conclusionp.10

Agency

Options p

Coordinate Multiple OversightResponsibilitiesp.11

Address Project Issues/ConcernsEarly.p.11Consider Multiple AgencyCoordination...p.12Define Agency Information NeedsEarly..p.12Address Mitigation NeedsEarly...p.13


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Conclusion.p.13

Citizen

Options p 4

Citizens Have a UniqueRolep.14Get Involved Early and StayInformed.....p.14Do YourHomework..p.16Know thePlayers..p.16Know theProcess..p.16Becoming aPartner..p.17

Conclusion.p.17

FERC

Options p 8FERCSRole..p.18 Commitment to ProvidingInformation..p.18Training to Improve theProcess...p.19

A Commitment to EarlyInvolvement.p.19Conclusionp.20

Glossary p 2


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ii

Introduction

This document was developed by the Office of Energy Projects (OEP) Gas Outreach Teamusing the feedback and ideas collected from stakeholders at our pre- filing outreach seminars.It will be updated from time to time as needed, to incorporate new knowledge, techniques, oroptions that can help achieve consensus and a better application to the Federal Energy Regu-latory Commission.

If you are viewing this document on the web site, click on the words that appear in blue tolink to the glossary or to an appropriate web site. A full glossary also follows the documentfor further reference.

The concepts presented in this document are for discussion only, and do not necessarily rep-resent the views of the Commission or its individual members.


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Action Options Overview For InterstateNatural Gas Pipeline Siting

Early Involvement by All Stakeholders

Can

Develop Better Solutions

As a result of the comments and discussions at six InterstateNatural Gas Pipeline Facility Planning Seminars, the OEP GasOutreach Team developed a set of Outreach Action Options forpipeline companies, age ncies, citizens, and the FERC staff. TheAction Options identify concepts, actions, and activities that willhelp each stakeholder group achieve more effective participationin the process of planning a natural gas pipeline.

The objective is to provide the best

For moreinformation on

how to beinvolved in a

project from alandowners

perspective, seeAn Interstate

Natural GasPipeline on My

Land? WhatDo I Need to

Know?The U.S.Depart-

ment ofTransporta-tion (DOT) isre-sponsible forsettingfederal safetystan-dards fornatural

gas pipelinesandrelated facilities.

possible guidance on different pre-filingtechniques that can be used to addressissues that are raised. Every pipeline project is different - its size,its location, the companys approach to working with stakeholders,the communitysinterest in participating, the agenciesexperiencewith similar projects, etc. The goal of the Action Options is to offer some ideas that all stakeholders can customize for their needs.

Pipeline companies are encouraged to

The Office ofPipe-line Safety atDOT

is atwww.dot.gov. seek out greaterinvolvement from thevarious groups early inthe planning so those
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who are interested canparticipate in thedecision- makingprocess. Age n-

Working together will payoff by helping to achieve

agreements.cies and citizens are encouraged to get involved early and maketheir views known to the companies as soon as they learn about apotential project. The goal is to achieve consensus and settle-ments among the groups and the company about an acceptableproject design. FERC staff has been asked to offer assistanceearly in the process to support all stakeholders. Earlier and moreproductive involvement will lead to better project designs and lesscontentious applications to FERC and other agencies.

Spending time

up front willsave time later.Consensus willbe more easily

achievedthrough

implementingthese ideas.


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What All Stakeholders Need to Know

The Players

There are many different participants in the pipeline planning process.

FERC - is charged by Congress with determining whether interstate natural gas transmis-

sion projects are in thepublic convenience and necessity.

Pipeline Companies - These are the companies that build and operate interstate natural

gas pipelines. They must justify the need, plan the route, and obtain numerous local,state and federal permits and clearances prior to construction.Federal, State and Local Agencies - The best way to find out who is involved from yo ur

local and state government is to call a local town official or a pipeline company represen-tative and ask. Some typical agencies involved in the planning process include:

Local: Town and County Councils, planning boards, zoning boards, and othersState: Environmental agencies, historic preservation offices, fish and wildlifeagencies, and othersFederal: U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, U.S.Environmental Protection Agency, Bureau of Land Management and ForestService

Local citizens and landowners - have interests in whether the proposed natural gas line

will impact their land or their community. Local citizens and landowners are encouraged

to make their views known at any time in the process.

Pre-filing Timeline Example For a Major Project Requiring an

EISGeneral set of actions followed for most projects:

OpenSeaso

n

Consider

Routes

for

Pipeline

Meet

with

Agencies

Communicatio

ns with

Landowners

and Citizens

Select

Propose

d Routes

Complet

e

Surveys

File atFERC

Number of

Months


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1 2 3 4 5 6 7 8 9 10 11 12


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The Process

Generally, the formal process for evaluating a pipeline companys proposal to build an in-terstate natural gas pipeline begins when the company files an application with the FERC.

The application includes maps showing the preferred route, the proposed facilities, thestatus of permit applications with local, state and federal agencies, affected landowners,and information on how the pipeline will affect the environment.

The FERCs review of the application and determination of need involves the balancing oftheprojectsadverse impact against its benefits. The FERCsenvironmental analysis of theapplication under the National Environmental Policy Act of 1969 (NEPA) is part of thatbalancing. Public participation is a key element in FERCs environmental analysis.

The goal of the Action Options is to encourage participation in a process where all stake-holders have the opportunity to have input before the development of the application, sothat issues are raised and addressed and solutions crafted and presented as part of the com-

panys proposal.

Some Tips For All Stakeholders

Ask other stakeholders how they want to be com-

municated with throughout this process.

Agree up front on how stakeholders will be in-

volved to set expectations at the start.

Be patientworking together on a complex project

requires understanding from all participants.

Develop summary transcripts from meetings and

share information with all stakeholders to keep the

lines of communication open.

Set up a process for what can be done if any stake-

holder feels their needs are not being met. If eve-

ryone agrees on the process up front, there will be

a way to address concerns.

Remember that each stakeholder has control over

their own actions and decisions. This is a volun-

tary process for all stakeholders.

Formalize agreements in writing so everyone can

be sure they understand and agree to what is decided.

NEPA IS...

The National

Environmental Policy

Act of 1969 is legis-lation that requires

federal agencies to

consider the

environmental

impacts of their

actions.

It outlines a process

for public input into

the agencies

decision-making

process.


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It requires that for major projects, a

detailed environmental study be pre-

pared, including the analysis of

appropriate alternatives to the

proposal.


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Industry Action Options

Start Early, Be Pro-active, Involve Key Stakeholders

Natural gas pipeline companies and their consultants, contractors, and industry groups are thecenterpiece of the pipeline siting process because they are the project planners and pro-ponents. This group carries a large part of the responsibility to implement and coordinate theproject activities that occur during thepre-filing time frame. There are a number of separatecomponents to the actions that the company will need to take, including developing a com-panyphilosophy of commitment, ensuring agency participation, training company represen-tatives and land agents, developing a publicparticipation plan, collecting data, and having aplan for potential mitigation and compensation.

As part of its pre-filing groundwork the company should address internal and external pla n-

ning and coordination issues. Pre- filing actions should be part of a coordinated plan, sincethey involve so many facets of a company and its consultants. Decisions on how to involveothers should be made internally before they are implemented. It will also be important totrain the project development team on the company philosophy and policy.

Dealing with agencies and citizens in a participatory decision- making process can help buildconsensus and resolve issues prior to filing. There will likely be some initial costs of timeand money, but these up- front actions should result in quicker processing of an applicationand presentation of the record to the Commission for a decision.

Demonstrate Your Commitment to

Public Involvement

Companies should create a project team to

interact with stakeholders. For large projects,the team should include environmental, engi-neering, and public relations professionals, in

addition to other valuable experts. At leastone company has formed a separate team spe-

cifically created for stakeholder outreach.

Make sure the team is trained to per-form the public involvement plan.Build the concept of public participa-tion into training for all facets of theproject development team.

The company should decide early that it will

be pro-active in getting agencies and land-

HAVE YOU:

Asked the community howtheyd like to receiveinformation?

Described the project ingreat detail tolandowners?

Explained tostakeholders how youwill work with them inthe pre-filing process?


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Told landowners about yourcompany?

Shared safety information?


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owners involved in the process and the resolution of issues. Commit to being honest andopen and following through in relationships with other stakeholders.

As part of determining potential stakeholders for a project, identify and establish key

contacts with:

Governor(s) and federal, state, and local politiciansEnvironmental agencies and groupsEnergy agencies/ PUCsFERC staffNon-governmental organizationsFederal and state land managersLocal distribution companiesLandowner and community representatives

Develop a positive attitude and company philosophy that includes a historical company

mission perspective. Make sure employees at every level and in every division of thecompany understand the concept of public participation.

When developing a public participation plan, consider how project announcements and

first contacts will be made, and to whom meetings will be open. Be inclusive, get others

involved early.

Consider involving stakeholders in early efforts to develop the route.

Be prepared to explain the need for the project to agencies and landowners. Explain thesupport the company has for the project at opportunities such as meetings and open

houses, etc. Explain supply/demand and get help and/or information from public utilitycommissions (PUCs), the Energy Information Administration (EIA), independent systemoperators (ISOs) and local entities on regional issues important to landowners.

In addition to sharing information about the benefits of a pipeline,

commit to being open about the down sides too. The public will

respect honesty and it may prevent future misunderstandings.

Maintain Strong, Open Channels of

Communication with AgenciesDevelop a multifaceted, grass-roots strategy for announcing the pro-

ject to federal, state, and local agencies (and to landowners), which

maximizes their opportunity for input into identifying potential issues

and their resolution.

Involv

e

stakehold

ers early

and share


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7

Describe the time table for the project and try to get agency contacts to commit to have

their staffs work at the requested pace.

Be clear about when and how landowners and agencies can best contribute to the pla n-

ning process.

Set up big picture meetings/briefings with agency policy staffs, but be sure to also hold

detailed working sessions with technical staff.

Conduct field visits to help get a better understanding of an issue.

Consider the source of the information and whether it is really representative ofthe agency's assessment.

Explore the potential for team permitting options among agencies.

The value of early coordination and notification of problems is

high.

Tell federal agencies, local and regional officials, and state age n-cies about the project as early as possible, with as much detailed

information as is available, so that they may tell citizens when they

call. Ensure that the information is updated when events or sched-ules change. Consider developing materials that agencies can pro-

vide to interested stakeholders and develop a website with the

latest information.

The valueof early

coordination

and

notification of

problems is

high.

When and if limited resources prevent agencies from timely responses or actions, con-

sider funding third-party contractors to work for them.

Provide the FERC staff with accurate, advanced project information in as much detail as

possible so that they can help coordinate outreach to other agencies.

Train Company Representatives and Land Agents

Develop specific training for company representatives and land agents on the importance

of company philosophy and their role in establishing good communication with land-

owners and continuing it. Landowners want to deal with someone who is personable,

honest, and respectful.

Land agents are either building or hurting the reputation of the company with allaffected parties they meet.


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Landowner trust will be based in part on experience with theindustry as a whole.Consider using local land agents or hiring local assistance to familiarize out-of-town land agents with local culture and geography.


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Train land agents in dealing with people and on the companys

public participation plan.

When people are upset, find out what people are upsetabout.Land agents should be willing to put commitments in writ-ing or not make them.

Land agents

are your

representativ

es to the

community.

Plan for Public Stakeholder Input Throughout the

Process

Make a commitment to involve affected landowners and other interested citizens in the

project planning process. Inform them, listen to, and record landowner's ideas and

knowledge of the area and environment. Make sure communication is clear and easily

understandable, and respond to them constructively and with empathy.

Ask the community how they would like to be communicated with. What worksin one area may not work in another.Develop a public participation plan early, share it with landowners, and ask forcomments and suggestions.Try to have one consistent contact person that landowners can call, and make surethat person is clearly identified to the public. Provide the land agent's name andnumber and also the supervisor at the company or a company hotline to call.Bear in mind first contact issues and their potential sensitivity to landowners - acall, a letter, a visit? Consider issuing a public notice in the local newspaper or onother media (television, radio) before contacting landowners for a survey so thatlandowners have some awareness of the project before they are first contacted.Post information and updates on town bulletin boards and other public places.Ask town officials for help contacting local stakeholders so it can be determinedwhether or not everyone impacted by the project has been contacted.Share where the company gets its information and what resources the companyrelies upon.Give people time to react to requests, documents etc. Don't expect overnight

feedback.During the process, setup a feedback system so citizens know when they will getanswers to their questions. Put answers to general questions on a web site orother public place so all citizens can see the information.Stay away from industry jargon: use language carefully and be aware of how thepublic perceives the company at all times. Using words like marketingin pub-


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lic settings can give the company a negative image because the word has differentmeanings to different people.Understand stakeholdersknowledge and background.Consider establishing an ombudsman for neutrality in information and contacts.Consider funding of studies requested by stakeholders.


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Project Announcements and Ongoing Information

Collection

When announcing the project, be specific and thoroughcarefully spell out the processand timeline for other stakeholders.

When announcing the project, consider the most effective meeting types. Again, ask

stakeholders how they want to be communicated with.

Do they prefer open houses, or one-on-one meetings, or a letter first?Should the initial contact be formal or informal?Consider meeting locations and times. For example, in an agricultural area, donthold a meeting in the planting/harvest season; or dont hold a meeting on a reli-gious holiday; etc.

Have qualified engineers and technical staff available to an-swer safety and design questions, perhaps with a sample pieceof pipeline, to describe how it is designed and operated.

For an open house, notify all stakeholders in the study corridor. Per-

haps present a slide show on pipeline construction and other general

issues so that people unfamiliar with pipeline siting and construction

can get a clear idea of what is proposed.

Whenannounci

ng the

project,

consider

the most

effective

meeting.

Describe the size and types of equipment that would be used.Ensure all documents are accurate and consistent. Avoid giving conflicting infor-mation to stakeholders.

Distribute the following information, whether in pamphlet- form or by other means:

A general biography of the company,

General information on environmental and other benefits of natural gas,Discussion of todaysenergy market and the need for expanded infrastructure,FERC background information,

Discussion of pre- filing activities,Post-filing review process,Construction information,Safety information, plans for safety training and the companys past safety re-cord, andIntended time frame for completing various activities (a project time line).


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Share the pre- filing process with landowners in detail so that they can better understand

the steps and decide how to get involved.

Suggest unbiased sources (academics, web sites, government statistics) that are not affili-

ated with the company so that stakeholders can get information that is trustworthy in


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their eyes. Avoid using the term proprietary informationbecause it can raise suspicionsand create distrust.

Make sure that all of the information that is used and shared with the public (including

maps, studies, etc) is current and up-to-date.

Follow up on outstanding questions and let people know how the answers will be com-

municated.

Conduct post-project interviews or evaluations with key stakeholders to make future im-

provements.

Make Route Development and Data

Collection Easy and Understandable

The stage of the process where surveys are performed, data collected androutes proposed may be the most confusing and complicated for manystakeholders. When its time to do the detailed route planning, makesure the landowner knows what to expect and has given permission to

Share

the pre-

filing

process

with

landowners

in detail.

proceed with the survey(s). Survey permission forms should be readable with full disclosure

of survey requirements.

What does survey permission mean? Recognize and state clearly that landownerconcurrence to allow a survey is not approval of a right-of-way. Know the differ-ence.Explain the types of surveys (crew size, survey methods).Describe the work to be done (such as: is tree cutting or clearing required? Willtest holesbe dug?).Ensure the survey corridor is wide enough to accommodate route variations.Describe alternative routes the company considered in addition to the proposedroute.

Explain Mitigation, Compensation and Benefits in

Laymans Terms

Many landowners are unfamiliar with the rules, process, and procedure of how a right-

of-way payment is made. So, explain the compensation/payment method to landowners.


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Explain the typical procedures which the landowner can expect will be used.Explain procedures and specifics around payments for easements - how are theydetermined?Share information about additional damage payment(s) made after construction

Provide options of what a landowner could request as compensation.


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Explain the energy benefits which will result from the project, or other benefits which

could be locally significant.

Develop a benefits plan and educate stakeholders about local benefits of the pro-ject (i.e. payments to landowners, local tax payments, etc).If the landowner requests sidejobs,explain what is or is not allowed and howthe job might be performed for the landowner.

Since practices vary among different pipelines, it is important to be up-front about the

companys usual custom and whether or not it involves monetary compensation. If any

funding to aid public participation is available, tell stakeholders early.

Conclusion

The proper preparation and stakeholder involvement in the pre- filing process can make the

entire process easier, quicker, and ultimately less expensive. The companysreputation withthe community and involved agencies will benefit from a well-devised, well-executed par-tic ipation plan.


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Agency Action Options

Coordinate to Address Multiple Oversight

Responsi- bilities

Numerous agencies (federal, state and local) have a role in natural gas facility siting. Allserve the public and may have overlapping responsibilities. Agenciesfocus on managementand regulatory requirements span a very wide spectrum of cultural, natural, economic, edu-cational, political, and other resource interests. As a result, different agencies may have con-flicting priorities or responsibilities due to their unique focus and or function. What is idealfor one agency may be detrimental to another. The challenge here is to identify what isneeded to avoid or at least minimize obstacles to providing coordination and service, and

how to achieve better results early in the facility planning process. There are several steps tocoordination, including addressing project issues early, discussingjoint participation, defin-ing agency needs early, and addressing mitigation needs as soon as possible.

Address Project Issues/Concerns Early for Better Results

With many agencies and potential overlapping needs, it is important to get your agencys in-terests into the mix early so your role is clearly defined and understood from the beginning.Some of the things agencies can do upon getting an initial contact from a company includethe following.

Know what project components will involve

your agency.

Get support from agency management to

commit resources for early involvement

Determine the lead federal agency (usually

FERC) and lead state agency, if one, and pro-

vide a key agency contact to ask and answer

questions early.

Establish coordination and early participation

procedures among agencies.

Consider attending public meetings in order

to provide your agencys perspective and ex-

plain your role in the process.

HAVE YOU:

Identified where youragency should getinvolved?

Gotten support fromagency management?

Identified key issuesand informationneeds


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Decided on coordinationprocedures?

Attended public meetings?


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Consider Multiple Agency Coordination and Joint

Participation

Encourage team permitting to improve your agency's internal and

external processes. Team permitting could reduce redundant re-view and provide information concurrently to all interested par-

ties.

Federal agencies should coordinate regulatory review and ap-

provals at the federal level early.

State agencies should coordinate regulatory review and approvals

at the state and local level early.

Coordination

with other

agencies can

reduce timing

for reviews and

approvals.

Determine whether your agency has public notification rules and/or needs to hold public

meetings. Consider whether another agencys meeting could fulfill the requirements.

Agencies that must involve the affected public and stakeholders before making their rec-

ommendations and decisions.

Even if your agency cannot commit to early involvement, know where to get information

and stay informed.

Consider creating a document that shows how agencies work with other agencies so citi-

zens know how to work with the system.

Consider creating an agency forum for discussion and resolution of common issues.

If resources prevent agencies from timely responses or actions, consider third-party fund-

ing by the project proponent to assist the agency.

Ensure that decision- makers and required technical staff are involved early in the process

so that accurate issues and needs are reflected early and decisions can be made more ac-

curately and quickly.

Define Agency Information Needs and Timing

Requirements Early

It is very important to identify information and timing requirements as early in the process aspossible. When issues about the project, the process, and likely conflicts or potential out-comes are defined and acted on early, the process can go more smoothly and efficiently.


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Be clear about what information your agency needs and when you need ithave your

requirements published clearly. Examples may be specific route surveys, survey results,

landowner information (approved or denied survey access, etc.), and timing of when all

remaining information must be submitted.


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Identify where and when decisions will be made and who will

make them.

If there are any "show stoppers" identify them as soon as possible.

Examples: If state/local agency code/regulations have siting

guid elines or requirements that conflict with FERC's routingcriteria, or would require use of established "utility corridors"that are not conducive to a proposed project's end points.

Identif

y show-

stoppers as

early as

possible.

Agencies should give early and honest feedback on route alternatives. Make sure you

supply whatever information you have.

Agencies should identify any known cumulative effects (both beneficial and adverse im-

pacts) and any growth that will occur in the project area. These should include locationand timing information about any known development or other projects in the vicinity of

the proposed pipeline.

Address Mitigation Needs As Soon As Possible

If resource impacts are unavoidable, but can be mitigated or otherwise compensated for,identify potential options which satisfy your concerns, as early as possible.

Identify if compensation will be required.

Explain who is responsible for developing mitigation plans.

Conclusion

Although different agencies can often have conflicting priorities and responsibilities, earlyand effective coordination can help prevent obstacles. It is important to know how to get in-formation and to decide early on how different federal, state, and local agencies will worktogether in the most effective manne r.


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Citizen Action Options

Citizens Have a Unique Role: Take Advantage of

Your Opportunity to Participate

Citizens and landowners are unique in the natural gas pipeline siting process for several rea-sons. While the pipeline company is proposing the action, and the government agencies areactively involved in the permitting process, citizens are often passively swept into the proc-ess. While the pipeline companies and the agencies participate in the process in the contextof doing their jobs, the citizens not only must take time off from their jobs to participate, buttheir stake in the outcome may be more personal; the project affects their own property and/

or community.

The challenge for citizens is to develop resources that enable active engagement in the proc-ess, objective application of the process, easier identification of direct or indirect projectbenefits, and greater access to information. In order to be involved in the most productiveway, citizens should get involved early and make an effort to understand the process.

Get Involved Early and Stay

Informed

Every pipeline company and every natural gas pipeline siting project is different. Projectsthat are large or new take longer to plan thansmaller expansions of existing systems. The dif-

ference can depend on geography, the companysculture and the type of community that may be im-pacted by the siting process. Getting involvedearly and staying informed is a citizens best strat-egy for ensuring that their needs are met and theirquestions answered.

As soon as you can become involved, seek out

information pro-actively; dont wait for it tocome to you. If you wait, you could lose an

opportunity.

Constructive participation will get youmore answers and information. Partic i-pate from a foundation of knowledge

and fact rather than emotionand rumors.


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HAVE YOU:

Identified Company contacts?

Learned about the sitingprocess?

Checked the pipeline com-panys web site?

Given feedback on how thecompany or agencies can im-prove communication?


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Let the company know if you are interested in participating in the planning stage (where

the route is determined) and not just the permitting stage (where the route is reviewed by

regulators and agencies).

Recognize what information the companies

are obligated to provide and what informa-

tion is not available.

Ask questions and follow throughuntil they are answered to your sat-isfaction.Although you should be prepared towait for answers, you should alsobalance that with being assertivewhen it comes to asking for infor-

mation you should have.Lots of information is on web sites(companies, agencies); make use ofit.See the Industry Action Options forinformation about what resourcesshould be made available to citi-zens; ask about them.Make sure you get the project ma n-agers name and contact information

SOME SOURCES OF

INFORMATION

INCLUDE:

FERC Regulations18CFR380

FERC Landowner Notification

Rule

18CFR157.6(D)FERC Websitehttp://rimsweb1.ferc.gov/rimshttp://cips.ferc.gov/cips

Interstate Natural GasAssociation of America

www.ingaa.org

CompaniesWebsites(See links atwww.ferc.gov)

so that you have someone to call if you have questions.

Understand that your active participation in a companys project can add value. Regard-

less of your opinion, it is in the companys best interest to work with you rather than

against you.

Decide if you want to be involved in decisions regarding routing and/or construc-tion impact mitigation.

When you send in comments to FERC, also send a copy to the company so theyare immediately aware of your opinions.

Explore whether your local municipality, county, or citizen organization will represent

you as a group.
http://www.gpo.gov/nara/cfr/index.htmlhttp://www.gpo.gov/nara/cfr/index.htmlhttp://cips.ferc.fed.us/q/cips/rules/rm/rm98-17.00d.txthttp://cips.ferc.fed.us/q/cips/rules/rm/rm98-17.00d.txthttp://rimsweb1.ferc.fed.us/rimshttp://rimsweb1.ferc.fed.us/rimshttp://cips.ferc.fed.us/cipshttp://www.ingaa.org/http://www.ingaa.org/http://www.ferc.gov/gas/pipecomp.htmhttp://www.ferc.gov/gas/pipecomp.htmhttp://www.ferc.gov/gas/pipecomp.htmhttp://www.ferc.gov/gas/pipecomp.htmhttp://www.ferc.gov/gas/pipecomp.htmhttp://www.ingaa.org/http://cips.ferc.fed.us/cipshttp://rimsweb1.ferc.fed.us/rimshttp://rimsweb1.ferc.fed.us/rimshttp://cips.ferc.fed.us/q/cips/rules/rm/rm98-17.00d.txthttp://www.gpo.gov/nara/cfr/index.html


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Know the name and phone number of the company land agents supervisor or the num-

ber of the company/landowner hotline. Dont hesitate to call if you feel you are not ge t-

ting answers or if you think you are being treated unfairly; the company wants to know.


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Consider asking the company if any aid to public participationsuch as reimbursement for time and expenses is offered so you

can be involved in the process. Every company has a differentapproach to how to ha ndle this so dontbe surprised if the com-

pany you are working with tells you it is against their policy to

provide compensation for your time or expenses.

Do Your Homework to Ensure Your

Involvement is

Productive

The process of siting natural gas pipelines is complicated and in-volves lots of participants and details. The following can help you be

Your

participation

can add

valuable

project

information to

the pipeline

companys

planning

process.

sure you are informed about the process and how you can become a partner in that process.

Know the Participants

Understand the mission and business plan of the company proposing the project.

Check their web site and public mailings.

Understand the role and mission of the FERC and its processes.

Check the FERC web site atwww.ferc.gov.

Understand the role of federal, state, and local agencies.

Understand how your first tier local government can work for you. Your local govern-

ment or community may be able to be your advocate.

Know the Process

Understand the concepts of eminent domain, federal preemption, andpublic convenience

and necessity.
http://www.ferc.gov/http://www.ferc.gov/http://www.ferc.gov/http://www.ferc.gov/


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Understand the process of the National Environmental Policy Act of 1969 (NEPA). It is

a statute that requires a federal agency to be aware of the environmental impacts of its

decisions.

Understand that the pipeline company will respect you for your honesty, just as you re-

spect them for theirs.

Understand that the regulatory review and approval process may not move as quickly as

you would like once a project is agreed upon. Have patience with the gas company and


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the agencies involved to ensure a smoother process.

Find out what survey permission is and what survey companies do (e.g. number of days,

extent of work, etc). Be informed.

Becoming a Partner

Determine whether there are, or could be,

direct or indirect benefits of the project to

your community and to you personally.

Your knowledge can help accomplish the

goals of the company in a way that meets

your needs at the same time.

Allowing surveys is not the same as grantinga construction easement. Consider allowingthe company to complete its surveys on your

property as they may document environ-mental or engineering constraints if they ex-ist. You may seek the advice of counsel ifyou are concerned.

Improve informational resources. If FERCs

or a pipeline companys landowner brochure

doesnt meet your needs, tell them and sug-

gest ways to improve them.

Conclusion

TYPICAL TYPES

OF SURVEYS

INCLUDE:

Civil surveys,Geotechnicalsurveys, Culturalresource surveys,

Wetland delineationsurveys, and Threatenedand endangered speciessurveys.

Some types, (especiallygeotechnical and culturalresource surveys), typi- callyrequire localized excavations

at predetermined intervals.

All surveys require that thesurveyor have access to theland. Once access is granted,various surveyors mayvisit the propertyintermittently over a periodof time.

There are ways for interested citizens to get involved in the pre- filing stages of natur al gas

pipelines that could affect their community. It is important that all stakeholder groups worktogether to ensure that citizens are actively engaged in the process, understand direct and in-direct project benefits, and have greater access to information. Early involvement and betterunderstanding will increase public participation and allows citizens to make their viewsknown.


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FERC Staff Action Options

FERC

S Role as the Lead Agency

There are many questions regarding FERC's role in siting natural gas pipeline facilities andhow FERC's process is connected to those at other agencies, particularly state agencies.Landowners clearly look to FERC to provide more information than is currently available.Further, natural gas companies look for additional help from FERC to coordinate the effortsof all the other permitting authorities. There are several action options that can address re-quests for greater staff participation and other resources to aid the various stakeholders in theplanning process. Options include: making an effort to keep information up-to-date, offeringtraining to share information, and committing to get involved in the process early.

Commitment to Providing Up-to-Date Information

TheFERC web site was revised in the spring of 2001 and represents a marked improve-

ment in appearance and the organization of information. Al-

though it is more user friendly and it's easier to find the informa-tion you need, no new functionality was built into the latest re-lease. FERC is considering further upgrades. Comments receivedat the seminars regarding the web site included requests for:

Summary and status information for major projects. The

The FERC staffcan

becomeinvolved

in projects

duringthe pre-filing

stage.summaries could also include links to the applicants' project web site.

Criteria, requirements, and documentation for getting approval for the NEPA pre-filing process.A homefor pre- filing (pre-docket number) project information.State-by-state links to relevant agencies so landowners can use the FERC site toget local info.A guide on how to contact FERC and ask that they get involved in a project.

A landowner chat room where subject matter experts could respond to questions.Other specific requests to solve problems such as retrieving filed informationfrom the RIMS system.Data on future projects.A list of contacts if people have further questions.

FERC staff and/or other resource agencies (the Energy Information Administration,

PUCs) should work to generate information about the big-picture market for natural gas
http://www.ferc.gov/http://www.ferc.gov/http://www.ferc.gov/


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and the need for natural gas on a regional basis that could be presented to various stake-

holder groups.


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During the decision- making process, FERC should be sensitive to the difference between

survey permission and landowner support of a project.

FERC should enhance the existing brochure"An Interstate Natural Gas Pipeline on My

Land? What Do I Need to Know?" to include information such as:

The availability of information on the FERC's web site.Resources available to landowners (e.g.,INGAA web site).Materials that companies are required to provide to landowners and others undertheLandowner Notification Rule -when it is provided and to whom.What types of routing changes and landowner benefits in easement agreementscan be negotiated without FERC approval, as FERC will not be involved in ease-ment negotiations.Clarification on how a landowner can become an intervenor.

FERC should conduct exit interviews with landowners after each project that implements

pre-filing involvement to better understand where problems were and how those prob-lems were solved. Debriefings on completed projects could be used to determine im-

provements to future projects.

FERC should prepare a scoping summary to address issues raised during scoping.

Consider establishing a single point of contact to answer questions.

Training to Improve the Process

FERC will offer training (mainly for industry and consultants) on Revised Regulations forEnvironmental Reports (Minimum Environmental Filing Requirements). FERC is currentlyplanning a series of training sessions; please seewww.ferc.gov for session dates, locations,and other details. Training will also be offered on Environmental Compliance. FERC canalso use these training sessions to provide information to professional participants and to dis-seminate information on new methods and protocols that improve theNEPAprocess.

A Commitment to Early Involvement by

FERC Staf f

Improve programmatic coordination between the FERC andother permitting agencies to expedite natural gas projects.

FERC can make staff available to attend agency coordina-tion meetings either before or after the filing of an applica-tion (subject to staffing limitations).If needed, help develop interagency or project-related

Bygetting

involved

early, FERCcan helpcoordinate

agency andcitizen

participation.
http://www.ferc.gov/about/doing/6513gpo.pdfhttp://www.ferc.gov/about/doing/6513gpo.pdfhttp://www.ferc.gov/about/doing/6513gpo.pdfhttp://www.ferc.gov/about/doing/6513gpo.pdfhttp://www.ferc.gov/about/doing/6513gpo.pdfhttp://www.ingaa.org/http://www.ingaa.org/http://www.ingaa.org/http://cips.ferc.fed.us/Q/CIPS/RULES/RM/RM98-17.00D.TXThttp://cips.ferc.fed.us/Q/CIPS/RULES/RM/RM98-17.00D.TXThttp://cips.ferc.fed.us/Q/CIPS/RULES/RM/RM98-17.00D.TXThttp://www.ferc.gov/http://www.ferc.gov/http://www.ferc.gov/http://www.ferc.gov/http://cips.ferc.fed.us/Q/CIPS/RULES/RM/RM98-17.00D.TXThttp://www.ingaa.org/http://www.ferc.gov/about/doing/6513gpo.pdfhttp://www.ferc.gov/about/doing/6513gpo.pdf


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Memoranda of Understanding between FERC and interested agencies to establishjurisdiction and responsibilities.


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FERC could help achieve consensus in route planning and issue identification and reso-lution at the earliest possible point (i.e., before the filing of an application). FERC is cur-rently in the process of initiating pre- filing environmental reviews. It is likely thatFERCs involvement in each project will be slightly different depending on the case-specific circumstances. Typically the goal would be to issue a draft EIS very shortly af-ter an application is filed. Adequate time should be allotted in the pre- filing phase to

conduct scoping meetings, field surveys, and to compile the reports that are required tosupport the coordinated review by agencies, FERC, and third-party consultants.

As the lead federal agency, FERC could advise other agencies of their role in the pre-

filing application process.

FERC should consider expanding its process to include giving responses to all levels of

government officials. This response policy would help pipelines in addressing issues at

the local level.

Conclusion

FERC could provide more information to stakeholders and coordinate efforts among age n-cies. FERCs early involvement should improve communication between stakeholders andcould expedite the process.


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Glossary

Construction easementThe area of land, or footprintthat is disturbed or used for construction of the pipeline.This area is typically larger than the permanent easementand includes extra work areas foractivities such as equipment staging, topsoil storage, stream and road crossings, and right-of-way access during construction.

Construction impact mitigationThose measures that are implemented in order to reduce or undo the potential damages in-curred during pipeline construction such as soil erosion on slopes that have been cleared andgraded. In this example, water bars or slope breakers could be installed across the slope to

minimize erosion caused by precipitation and the resultant siltation of nearby streams. Stateand Federal agencies often attach many construction mitigation requirements to their li-censes and permits.

Draft EISA draft Environmental Impact Statement issued by the lead federal agency for a 45-day com-ment period.

Easement agreementsThe legal document, signed by both the pipeline company official and the landowner, thatspecifies the route, work areas, amount and method of payment, if any, and other terms such

as restrictions on the use of the land, and possible future expansions of the pipeline.

Easement and damage paymentsPayments made by the pipeline company to the landowner or land- managing agency for theeasement or damages resulting from pipeline construction. Damage payments, if necessary,would be in addition to standard payments for the right-of-way easement.

Easement negotiationsThose discussions between pipeline-company official and landowner about the specificterms of the easement that may or may not result in a signed agreement. These discussionsare usually conducted by land agents representing the pipeline companies.

Eminent domainThe right of a government to seize private property for public use in exchange for paymentof fair market value.

Energy Information Administration EIA)The Energy Information Administration (EIA), created by Congress in 1977, is a statistical


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agency of the U.S. Department of Energy. They provide policy-independent data, forecasts,


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and analyses to promote sound policy making, efficient markets, and public understandingregarding energy and its interaction with the economy and the environment.

Environmental review

From the Federal perspective, implementing the independent review, agency consultations,and scoping out of issues that are part of administering the mandates of the National Envi-ronmental Policy Act (NEPA). Depending on theprojectssize, complexity and level ofcontroversy, this review may take between three months to over one year.

Federal preemptionWith respect to natural gas pipeline systems under the jurisdiction of the FERC, this broadlegal concept means that Federal authority supersedes the state or local authority.

Formal certificate reviewThe formal review of an application under the Natural Gas Act which considers, in addition

to environmental issues, rates, markets, financing, and other business issues.

Independent System Operator ISO)Organizations that manage the transmission portion (as opposed to the generation portion) ofthe electric industry.

IntervenorSomeone who wishes to participate in a proceeding and therefore files a petition to intervenewith the Commission for a particular case. In their filing, an intervenor may additionallystate whether or not they wish to protest the application and whether or not they seek a for-mal hearing on the application.

Land agentsThose representatives of the pipeline companies who are dispatched to acquire the right-of-way for the proposed pipeline project.

Lead federal agencyWhen more than one federal agency has permitting authority for a project, the agencies oftendesignate a lead Federal agency to supervise the preparation of the EA or EIS. The FERC isfrequently the lead Federal agency for natural gas pipeline projects.

Open seasonA process in which a pipeline company solicits market interest for new pipeline transporta-tion services. This is done as part of the pipeline company's planning process to help it deter-mine the economic feasibility for a project.

Pre-filing time frameThe period of time before an application is filed at the FERC.


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Public convenience and necessitySynonymous with "for the good of the general public". Generally, if the Commission deter-


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Federal Energy Regulatory Commission Gas Drilling Awareness Coalition

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mines that there is sufficient need for a project after the consideration of all relevant factors,then it is determined to be in the public convenience and necessity and, it will be processed andissued a "certificate of public convenience and necessity" or license. These "certificates" carrywith them the power of eminent domain.

RIMSThe Record Information Management System (RIMS) is the database where case-specificinformation is stored electronically. It is accessed via the Internet at www.ferc.gov.

Route variationRelatively small deviations from the proposed route that are meant to avoid some environ-mentally sensitive area. Route variations usually depart from and then rejoin the proposedroute within a short distance.

Scoping

In the context of NEPA, scoping is the process of asking the public and other agencies toidentify any environmental issue s that should be considered in the environmental analysis ofthe pipeline project.

Side jobsActivities which are not related to work required for the pipeline construction but which thepipeline company may be willing to do for a landowner as part of the easement negotiation.

SurveyTypical types of surveys include civil surveys, geotechnical surveys, cultural resource sur-veys, wetland delineation surveys, and threatened and endangered species surveys. Some

types, especially geotechnical and cultural resource surveys, typically involve localized ex-cavation at predetermined intervals in order to collect the desired data. The other types ofsurveys usually only involve walking the pipeline right-of-way, taking measurements andobservations and may involve taking small samples such as soil and plant samples. All sur-veys require that the surveyor have access to the land being surveyed. Survey permissionforms may be used to document landowne r agreement to allow access. Once access to theland is granted by the landowner, surveyors may visit the property intermittently over a pe-riod of time.

Team permittingAn approach that some states have adopted to issuing the many various environmental per-

mits for a particular project whereby the agencies involved coordinate with each other (and theapplicant, public, and cooperating agencies) and issue all their respective permits in oneaction.

Test holesSmall excavations or borings performed in the process of surveys such as cultural resourcesurveys or geotechnical surveys.
http://www.ferc.gov/http://www.ferc.gov/http://www.ferc.gov/


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Appendix 2

Ferc eFiling


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FERC eFiling

To file a comment you will need to know the docket number. This is a number FERC has

assigned to a project.

You will need to create an Online Account with FERC if you wish to access FERC documents

associated with the pipeline project. http://www.ferc.gov/docs-filing/ferconline.asp

Click the eRegister Button to create an account. By registering, you will receive a single user id

and password that allows you to transact virtually all of your business with FERC. eRegistration

does not grant access to non-public material in eLibrary .

eRegistration is valuable to any person who transacts business with the FERC on behalf of

themselves or another organization (e.g. companies or corporations). It provides authentication

support to the FERC Online applications that ensures safe and secure transactions, therebyprotecting the integrity of your data.

To register, pick a user name and password. The system will then prompt you for a user profile.
http://www.ferc.gov/docs-filing/ferconline.asphttp://www.ferc.gov/docs-filing/ferconline.asphttp://www.ferc.gov/docs-filing/ferconline.asp


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If you are making a comment on a pipeline, you will need to know the DOCKET NUMBER.

Commenting on a pipeline project DOES NOT require you to create an eRegistration account.

August 13, 2013eFiling and eComment are now compliant with Internet Explorer v10

IMPORTANT - READ BEFORE YOU BEGIN: After you submit an eComment request, you willreceive an email from ferc.gov with a link to the comment system. Your system must not block

emails from ferc.gov.

Please create your comments in a Word or Text file (up to 6,000 characters) before you begin,

then copy/paste them in the eComment Text Box to avoid time-out limits. The application will

time-out after 35 minutes of inactivity.

If you are not filing as an individual or if you are filing a motion to intervene, you must have an

eRegistration account and use the Commission's efiling system.

FERC's eComment Option is limited to individuals filing up to 6,000 characters of text-only

comments on their own behalf in the following proceedings:

Hydroelectric License/Re-license Proceedings (P - Project Number),

Pre-Filing Activity for Planned Natural Gas Projects (PF Docket),

Applications for Authorization to Construct a Natural Gas Pipeline,Liquefied Natural Gas

(LNG) or Other Facility (CP Dockets),

Pre-Filing Activity for Permits to Site Interstate Electric Transmission Lines (PT

Dockets), and

Applications for a Permit to Site Interstate Electric Transmission Lines (ET Dockets).

IMPORTANT - READ BEFORE YOU BEGIN:

After you submit an eComment request, you will receive an email from ferc.gov with a link to the

comment system. Your system must not block emails from ferc.gov. Please create your comments in

a Word or Text file (up to 6,000 characters) before you begin, then copy/paste them in the

eComment Text Box to avoid time-out limits. If you are not filing as an individual or if you are filing a

motion to intervene, you must have an e

Documents

FERC and Natural Gas Pipelines