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Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission National Conference of State Legislatures Natural Gas Policy Institute Pittsburgh, Pennsylvania September 9, 2015

Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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Page 1: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

Gas Pipeline Regulation

Pamela Boudreau Deputy Director

Division of Pipeline Certificates

Office of Energy Projects

Federal Energy Regulatory Commission

National Conference of State LegislaturesNatural Gas Policy Institute

Pittsburgh, Pennsylvania

September 9, 2015

Page 2: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

Natural Gas Transmission

So, You Hear Rumor of a Pipeline ?

1

Page 3: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

What is FERC ?

• An Independent Regulatory Agency in the USA Federal Government

• Created by the Department of Energy Organization Act (1977)

• Federal Power Commission was the predecessor of FERC – FPC dates to 1920 establish for water power.

2

Page 4: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

3

How is FERC organized ?

• There are 5 Commissioners’ positions

– Nominated by the President, confirmed by the Senate, President designates Chairman

– Each commissioner has a 5-year fixed term, staggered, with one term expiring each year

• The Chairman sets the monthly Commission agenda

– Orders voted out by majority rule

Page 5: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

4

FERC Organization Chart

Page 6: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

5

FERC is an independent

Federal regulatory agency

• Political Party

– No more than 3 commissioners from one political party

• President and Congress

– No review of FERC’s decisions by President, Department of Energy or other agencies

• Industry Participants

– No private discussions of open cases

– Restrictions on FERC employees: stock, gifts, future employment

Page 7: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

6

FERC Program Offices

Office of Energy ProjectsNatural Gas Pipeline Construction and AbandonmentHydroelectric Projects (licensing, safety, compliance)Environmental Reviews for Natural Gas and Hydro Projects

Electric Transmission Construction (not active)

Office of Energy Market RegulationNatural Gas, Electric, and Oil Rates and Terms/Conditions of Service

Office of Energy Policy & Innovation - May ‘09Policy reforms to address emerging energy issues

Page 8: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

7

FERC Program Offices

Office of EnforcementMarket Monitoring and Enforcement

Office of Electric Reliability – Sept ‘07Electric System Reliability & Compliance

Office of Energy Infrastructure Security – Sept ’12

Office of Administrative Law Judges and Dispute Resolution

Includes a Landowner Helpline

Office of Administrative Litigation - FERC Trial Staff

Page 9: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

8

Office of the Director

Division of Pipeline Certificates

Certificates Branch 1

Certificates Branch 2

Division of Gas Environment and

Engineering

Gas Branch 1

Gas Branch 2

Gas Branch 3

Gas Branch 4

LNG Engineering & Compliance Branch

Division of Hydropower

Licensing

Mid-Atlantic Branch

Midwest Branch

New England Branch

Northwest Branch

South Branch

West Branch

Division of Hydropower Administration &

Compliance

Aquatic Resources

Branch

Land Resources Branch

Engineering Resources

Branch

Environmental & Project Review

Branch

Division of Dam Safety & Inspections

Washington Office

Atlanta

Regional Office

Chicago

Regional Office

New York Regional Office

Portland Regional Office

San Francisco Regional Office

Risk Informed Decision Making

Branch

Energy Infrastructure Policy Group

Management and Operations

Office of Energy Projects (OEP)

organizational structure

Page 10: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

9

What does FERC regulate?

• Natural Gas Industry

– Interstate transportation rates and services

– Interstate gas pipeline and liquefied natural gas terminal construction and oversee related environmental matters

• Electric Power Industry

– Interstate transmission rates and services

–Wholesale energy rates and services

–Corporate transactions, mergers, securities issued by public utilities

Page 11: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

10

What does FERC regulate? (con’t)

• Oil Pipeline Industry

– Interstate transportation rates and services of crude oil and petroleum products

• Hydroelectric Industry

– Licensing of nonfederal hydroelectric projects

–Oversee related environmental matters

– Inspect nonfederal hydropower projects for safety issues

Page 12: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

11

There are approximately 195,902 miles of

interstate natural gas transmission pipeline.

Source: Based on data from Ventyx Global LLC, Velocity Suite, June 2014, and Oil and Gas Journal, September 1, 2014 for Pipeline Mileage

Page 13: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

12

Historic North American Gas Delivery Paths

1. Southwest to Southeast

2. Southwest to Northeast

3. Southwest to Midwest

4. Southwest to Panhandle

to Midwest

5. Southwest to Western

6. Canada to Western

7. Canada to Midwest

8. Canada to Northeast

9. Eastern Offshore

Canada to Northeast

10. Rocky Mountains to

Western

11. Rocky Mountains to

Midwest

Page 14: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

U.S. natural gas supply basins relative to

major natural gas pipeline transportation paths

13

Page 15: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

Changes in Supply and Demand will continue to

change pipeline flows in the long term

Source: ICF International Compass Report October 2014 14

Page 16: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

15

Market Oversight

OE

Effective Market Rules

OEMR

Adequate Infrastructure

OEP

Competitive Market Innovation

FERC

FERC

helping markets work

Page 17: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

16

The regulatory process as a balancing act

Page 18: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

17

Natural Gas Act

Section 7(c)

Interstate

Case SpecificBlanket

Authority

Automatic

Prior Notice

Section 3 Import/Export

Case Specific

Natural Gas Act (1938)

Page 19: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

18

Natural Gas Act

• Blanket Certificate• Automatic Authorization

• Cost of facilities is less than $ 11.4 million

• Facilities are “eligible” facilities

• Prior Notice

• Cost is between $ 11.4 and $ 32.4 million

• 60-day notice period prior to construction

• Facilities are “eligible” facilities

• 45-day landowner notification / waived

Page 20: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

19

Natural Gas Act

• Case Specific Section 7(c) Certificate

• Conduct a full review of proposal including engineering, rate, accounting, and market analysis

• Conduct an environmental review by preparing an Environmental Assessment or an Environmental Impact Statement

Page 21: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

20

Imports / Exports

• Any entity that proposes to site, construct and operate or modify facilities used to import or export gas must file an application pursuant to Section 3 of the NGA and file for the issuance of a Presidential Permit.

• In order to grant a Presidential Permit for international border crossing facilities, the Commission must "consult" with the Secretaries of State and Defense prior to its issuance.

Page 22: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

21

Imports / Exports

• The owner of the gas must apply to the Office of Fossil Energy, Department of Energy (DOE/FE) for Section 3 authority as well.

• Jurisdictional pipelines that filed for Section 3 authorization to site, construct, and operate border facilities most likely will not be the same party that applies for Section 3 authority from DOE/FE.

Page 23: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

22

North Baja Project Border Facilities

Page 24: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

23

Major Pipeline Construction Projects

Page 25: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

24

Project Evaluation

How Does FERC evaluate all of these major projects ?

What criteria are used inthis evaluation ?

Page 26: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

25

Prior policy problems

Evidence to find for a Certificate of Public Convenience and Necessity

• The reliance on percentage of capacity under long-term contracts to show demand; became mostly contracts with marketing affiliates.

• The pricing of new facilities; cost burden to existing customers.

Page 27: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

26

PL99-3-000 Certificate Policy

• New Certificate Policy Statement issued on September 15, 1999.

• Clarification of Certificate Policy Statement issued on February 9, 2000.

• Clarification issued on July 26, 2000.

• Policy applied to facts of each case.

Page 28: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

27

PL99-3-000 Certificate Policy (cont’d)

• Foster Competition

• Consider Captive Customers

• Avoid Unnecessary Physical Impacts

• Achieve Optimal Amount of Facilities

• Encourage Complete Record

• Expedite Review Time

G o a l s

Page 29: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

28

PL99-3-000 Certificate Policy (cont’d)

• Apply Threshold Cost Test

– Subsidization = Incremental Rates

–No Subsidization = Rolled-in Treatment

– System improvements for existing

customers = Rolled-in Treatment

Page 30: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

29

PL99-3-000 Certificate Policy (cont’d)

• Develop Record

– Adverse Impacts on

• Existing Customers and Pipelines

• Landowners

• Communities

– Specific Benefits

– Need and Market

– Condemnation Impact

– Initial Rate Derivation and Tariff Sheets

Page 31: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

30

PL99-3-000 Certificate Policy (cont’d)

Adverse Impacts

NeedsandBenefitsRecord

• Balance Benefits and Impacts• Complete Traditional Environmental Process

Page 32: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

31

People Like… But they also want…

due process expedited process

smaller government effective government

less regulation assurance of fair markets

market-dictated outcomes Protection from market dysfunctions, unexpected risk, and unjust rates

protection for the environment and property interests

ample supplies of low-cost energy

Balancing Interests

Page 33: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

32

Certificate Process Overview

Application

Filed

Order

Issued

Non-Environmental Review and Analysis• Engineering – GQI, storage, hydraulic flow

• Tariff – rates, terms & conditions of service

• Policy – precedents, rules, regulations

• Accounting

Environmental Review and Analysis• Biological – fish, wildlife, vegetation

• Cultural – historic preservation

• Land use – recreation, aesthetics

• Soils and geologic

• Air and noise – quality, loudness

• Socioeconomic impacts

• System alternatives

Parallel Processing PathsParallel Processing Paths

Page 34: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

33

The Environmental Process

FERC’s Environmental Review Process makes a special effort to be accessible to all affected parties, especially for landowners.

Page 35: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

34

Opportunities for public involvement

The FERC Process:

• Issue Notice of the

Application

• Project Sponsor Sends Landowner Notification Package

• Issue Notice of Intent to Prepare the NEPA Document (i.e., scoping)

• Hold Scoping Meetings

Public Input:

• File an Intervention; register for e-subscription

• Contact the project sponsor w/questions, concerns; contact FERC

• Send letters expressing concerns about environmental impact

• Attend scoping meetings

Page 36: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

35

Opportunities for public involvement (cont’d)

The FERC Process:

• Issue Notice of Availability of the DEIS

• Hold Public Meetings on DEIS

• Issue a Commission Order

Public Input:

• Comments on the adequacy of DEIS

• Attend public meetings to

give comments on DEIS

• Intervene / request for

Rehearing

Page 37: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

36

Contacts at FERC

Landowners:Landowner HelplineLocal: 202-502-6651

Toll-free: [email protected]

State Officials:

State-Federal RelationsLocal: 202-502-6088

Toll-free: 1-866-208-3372 [email protected]

**Keep in mind that any discussion with FERC staff on pending cases

has to be filed on the public record**

Page 38: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

37

Traditional vs. Pre-Filing Process

AnnounceOpen

Season

AnnounceOpen

Season

DevelopStudy

Corridor

DevelopStudy

Corridor

ConductScoping

ConductScoping

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Review DraftResource Reports& Prepare DEIS

IssueDraftEIS

IssueDraftEIS

FileAt

FERC

IssueOrder

IssueOrder

FileAt

FERC

Prepare ResourceReports

Prepare ResourceReports

IssueFinalEIS

IssueFinalEIS

(months)

Traditional - Applicant

Traditional - FERC

Pre-Filing - Applicant

Pre-Filing - FERC

Page 39: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

38

Timeline for Pre-Filing Process

(months)

StartPF

Review

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Review DraftResource Reports

& Prepare Prelim. DEIS

IssueDraftEIS

FileAt

FERC

IssueOrder

Prepare Draft ResourceReports

IssueFinalEIS

Applicant’s Activities

FERC’s Activities

DetermineApplicationComplete

SubmitPF

letter

Page 40: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

39

Benefits of Pre-Filing

• More interactive NEPA process, no shortcuts

• Earlier, more direct involvement by FERC,

other agencies, landowners

• Goal of “no surprises”

• Time savings realized only if we are working

together with stakeholders

• FERC staff is an advocate of the Process, not

the Project!

Page 41: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

40

Common Environmental Issues

• Wetlands and Waterbodies

• Agricultural and Residential Areas

• Archeological and Historical

Resources

• Endangered Species

• Landowner Concerns

• Safety

Page 42: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

41

Construction Impacts

• Erosion and sedimentation

• Soil layer mixing

• Restrictions on and conflicts with property use

• Loss or change of habitat

• Increased or decreased accessibility

• Wildlife / habitat protection time windows

41

Page 43: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

42

Right-of-way workspace and pipe string

Page 44: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

43

Pipe bends and slopes

Page 45: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

44

Side Booms – in the ditch

Page 46: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

Protecting and recovering archeological resources

45

Page 47: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

46

Construction in populated areas

Page 48: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

47

Residential construction

Page 49: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

48

Open-cut river crossing

Page 50: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

49

Dry crossing of stream

Page 51: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

50

Horizontal directional drill

Page 52: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

51

Avoiding sensitive resources

Page 53: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

52

Wetland construction

Page 54: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

53

Preservation and restoration of stream banks

Page 55: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

54

Construction within a transmission line corridor

Page 56: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

55

Topsoil segregation

Page 57: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

56

Erosion control - slope breakers

Page 58: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

57

Slope stabilization

Page 59: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

58

Compressor station

Page 60: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

59

Major Pipeline Projects

• Certificated• Currently Pending• Pre-filing• On the Horizon

Page 61: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

60

Projects Certificated

Page 62: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

61

Major Pipeline Projects Certificated (MMcf/d)January 2007 to June 2015

Page 63: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

62 62

Differing purposes for Certificated Pipelines

• Typical long-line from new supply

• Replacement pipeline projects

• Short, high capacity pipelines to deliver regasified LNG to grid OR grid to LNG

• Short, high capacity pipelines to deliver underground storage to grid

Page 64: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

63

Currently Pending Projects

Page 65: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

Oregon LNG Export Project(Oregon Pipeline)

(1,250)

Washington Expansion Project(Northwest) (750)

Kalama Lateral Project(Northwest) (320)

Rockies Express (800)

64

Major Pipeline ProjectsPending (MMcf/d)

July 2015

41.01 BCF/D Total2,775 Miles

Pacific Connector Pipeline(Pacific Connector)

(1,060)

Page 66: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

65

Pipeline ProjectsPre-Filing (MMcf/d)

July 2015

29.91 BCF/D Total3,051 Miles

Page 67: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

66

On the Horizon

Page 68: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

67

Major Pipeline Projects On the Horizon (MMcf/d)January 2010 to June 2015

Northwest North Dakota (WBI) (47)East Pipeline (ANR) (2,000)

Rayne Xpress, & Mountaineer Xpress (Columbia) (1,000) (2,700)

Gulf Coast Expansion (Natural) (750)

Bakken Header Supply Lateral (Northern Border) (295)

Prairie State Pipeline (Tallgrass Development) (1,500)

Northeast-to-Gulf Expansion (ANR) (646)

Vector Pipeline (1,300)

Access Northeast (Sectra) (1,000)MARC II Pipeline (Central New York) (1,000)

SoNo Project (Portland & Iroquois) (300)Continent to Coast (Portland Natural)(132)

Diamond East (Transco) (1,000)Greater Philadelphia Expansion (TETCO) (475)

Marcellus to Market Project (TETCO) (200)

Gulf Coast Market Expansion (Natural) (750)South Louisiana Market Project (Transco) (190)

Sooner Trails (Southern Star) (650)Western Marcellus Pipeline (Transco) (2,000)

Lone Star Expansion (Tennessee) (300)South System Flexibility (Tennessee) (500)

Spectra Carolina (Spectra) (1,100)Duke/Piedmont Pipeline (900)

Southeast Mainline System (ANR) (600)Stratton Ridge Pipeline (TETCO (500)

Gulf Xpress (Columbia Gulf) (860)22.70 BCF/D Total1,230 Miles

Page 69: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

68

Storage

Page 70: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

All Storage Projects(Capacity in Bcf)

69

Falcon MoBay (50.0, 9.6)

Bluewater (29.2)

Columbia (12.4, 4.3*)

Natural (10.0, 0.8*)

Dominion (9.4)

Texas Gas (8.2, 4.1)

Freebird (6.1, 1.6*, 2.1*)

CenterPoint (3.0)

Liberty (18.9)

Natural (10.0)

Bobcat (12.0,1.5, 24.0)

Caledonia (11.7, 3.8, 5.1*)

ANR Pipeline (14.7, 0.6,* 0.4*)

Mississippi Hub(12.0, 3.0,15.0, 1.7)

Leaf River Energy (32.0, 16.0)

Central NY (13.0)

Dominion (4.4)

Floridian Natural (5.0)

SG Resources (12.0)

Northern Natural(8.5, 2.1, 2.1*, 2.0)

Petal (2.8, 7.9*)

ANR Pipeline(17.0)

Texas Gas (11.3)

Texas Eastern (3.0)

Egan Hub (8.0)

Tres Palacios (36.0, 2.4, 9.5)

Black Bayou (15.0)

CIG (7.0)

PetroLogistics (6.0, 1.6, 10.7)

Golden Triangle (16.0, 16.6)

Steckman Ridge (12.0)

Columbia (6.7)

Northern Natural (6.0)Texas Gas (8.25)

Monroe Gas (12.0)

Columbia (5.7)

Pine Prairie (24.0, 32.0)

Natural (10.0)

Bobcat (2.1, 9.3)

Petal (10.0)

SG Resources (16.0)

Cadeville (16.4, 0.6,* 1.7*)

Arlington Storage(7.0,1.4, 0.5)

Perryville (15.0, 5.0, 1.0*)

East Cheyenne (18.9)

UGI LNG (0.2, 1.0)

Magnum Gas(42.0)

KM (1.0)

Dominion (0.1)

Southern Star (2.6,1.4)

UGI (14.7)

Petal (5.0, 2.1, 0.5*)

Multifuels (8.0)

Leader One (11.0)

Ryckman Creek (35.0)

CIG (0.9)

Certificated Since 1/1/2005

On The Horizon

Currently Pending

Pre-Filing

Tallulah (24.0)

Natural (0.5)

Unigas Storage (30.0)

CenterPoint (1.2)

* Prior Notice

Questar(2.7*)

Rager (2.0)

D’Lo Gas Storage (24.0)

Dominion (2.5)

Honeoye (0.2*)

Southern (5.0*)

Bear Creek (1.2*)

Natural (0.3)

Natural (1.0*)

Gulf South (0.7,* 1.02*)

Page 71: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

A Look atLiquefied Natural Gas

(LNG)

Page 72: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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Shale gas takes the place of Imports

Source: EIA Annual Energy Outlook 2015 (April 2015) and EIA spreadsheets.

Offshore

Conventional

Coalbed Methane

Gas Shales

Pipeline Imports

LNG ImportsAlaska

Tight Sands

Page 73: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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Imports

What is LNG ?

• LNG is natural gas cooled to its liquid at 259o

Fahrenheit and 1/600 of its gaseous volume.

• LNG is commonly stored and shipped at slightly above atmospheric pressure –overseas by ship and locally by truck.

• LNG is odorless, colorless; it neither explodes nor burns as a liquid.

Page 74: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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Imports

What is LNG ?

• LNG vapors are flammable only in concentrations of 5% to 15% with air and will not explode in an unconfined environment - the ignition temperature is more than 500o Fahrenheit higher than gasoline.

• In the past 40 years there have been more than 33,000 LNG ship voyages without a significant accident or cargo spillage.

Page 75: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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North American LNG ImportExisting Terminals

A

B

C

D

M

E

FG

N

L

I

J

K

O

H

US Jurisdiction

FERC

MARAD/USCG

As of July 13, 2015

Note: The existing import terminal in Peñuelas, Puerto Rico does not appear on this map since it can not serve or affect deliveries in the Lower 48 U.S. states.

Authorized to re-export delivered LNG

U.S.A. Everett, MA : 1.035 Bcfd (GDF SUEZ - DOMAC)B. Cove Point, MD : 1.8 Bcfd (Dominion - Cove Point LNG)C. Elba Island, GA : 1.6 Bcfd (El Paso - Southern LNG)D. Lake Charles, LA : 2.1 Bcfd (Southern Union - Trunkline LNG)E. Offshore Boston: 0.8 Bcfd, (Excelerate Energy – Northeast Gateway)F. Freeport, TX: 1.5 Bcfd, (Cheniere/Freeport LNG Dev.)G. Sabine, LA: 4.0 Bcfd (Cheniere/Sabine Pass LNG)H. Hackberry, LA: 1.8 Bcfd (Sempra - Cameron LNG)I. Offshore Boston, MA : 0.4 Bcfd (GDF SUEZ – Neptune LNG)J. Sabine Pass, TX: 2.0 Bcfd (ExxonMobil – Golden Pass) (Phase I & II) K. Pascagoula, MS: 1.5 Bcfd (El Paso/Crest/Sonangol - Gulf LNG Energy LLC)

CanadaL. Saint John, NB: 1.0 Bcfd, (Repsol/Fort Reliance - Canaport LNG)

MexicoM. Altamira, Tamulipas: 0.7 Bcfd, (Shell/Total/Mitsui – Altamira LNG)N. Baja California, MX: 1.0 Bcfd, (Sempra – Energia Costa Azul)O. Manzanillo, MX: 0.5 Bcfd (KMS GNL de Manzanillo)

Page 76: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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457

8

1,9

11

10

12

US Jurisdiction

FERC

MARAD/USCG

As of July 13, 2015

6

75

North American LNG Import/Export TerminalsApproved

Import Terminal

U.S.UNDER CONSTRUCTION - FERC1. Corpus Christi, TX: 0.4 Bcfd (Cheniere – Corpus Christi LNG) (CP12-507)

APPROVED - NOT UNDER CONSTRUCTION - MARAD/Coast Guard2. Gulf of Mexico: 1.0 Bcfd (Main Pass McMoRan Exp.)3. Offshore Florida: 1.2 Bcfd (Hoëgh LNG - Port Dolphin Energy)4. Gulf of Mexico: 1.4 Bcfd (TORP Technology-Bienville LNG)

Export Terminal

U.S.

APPROVED - UNDER CONSTRUCTION - FERC5. Sabine, LA: 2.76 Bcfd (Cheniere/Sabine Pass LNG) (CP11-72 & CP14-12)6. Hackberry, LA: 1.7 Bcfd (Sempra–Cameron LNG) (CP13-25)7. Freeport, TX: 1.8 Bcfd (Freeport LNG Dev/Freeport LNG Expansion/FLNG

Liquefaction) (CP12-509)8. Cove Point, MD: 0.82 Bcfd (Dominion–Cove Point LNG) (CP13-113)9. Corpus Christi, TX: 2.14 Bcfd (Cheniere – Corpus Christi LNG) (CP12-507)

APPROVED – NOT UNDER CONSTRUCTION - FERC10. Sabine Pass, LA: 1.40 Bcfd (Sabine Pass Liquefaction) (CP13-552)

Canada

APPROVED – NOT UNDER CONSTRUCTION11. Port Hawkesbury, NS: 0.5 Bcfd (Bear Head LNG)12. Kitimat, BC: 3.23 Bcfd (LNG Canada)

Page 77: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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North American LNG Import TerminalsProposed/Potential

PROPOSED TO FERC1. Robbinston, ME: 0.5 Bcfd (Kestrel Energy - Downeast LNG)

(CP07-52, PF14-19)

2. Astoria, OR: 0.5 Bcfd (Oregon LNG) (CP09-6)

POTENTIAL U.S. SITES IDENTIFIED BY PROJECT SPONSORS

3. Offshore, New York: 0.4 Bcfd (Liberty Natural – Port Ambrose)

US Jurisdiction

FERC

MARAD/USCG

As of July 13, 2015

1

2

3

Page 78: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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Reverse Engines – Export LNG

• DOE – Policy decision to export gas

– Free Trade Nations / non-Free Trade Nations

–How much allow / really sold / price impact

–World energy future (politics & economics)

• FERC – New or modified facilities

• Re-export imported LNG (brief trend)

• Newest process, FERC completes NEPA, then DOE rules on non-Free Trade Nations.

Page 79: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

PROPOSED TO FERC1. Coos Bay, OR: 0.9 Bcfd (Jordan Cove Energy Project) (CP13-483)

2. Lake Charles, LA: 2.2 Bcfd (Southern Union – Lake Charles LNG) (CP14-120)

3. Astoria, OR: 1.25 Bcfd (Oregon LNG) (CP09-6)

4. Lavaca Bay, TX: 1.38 Bcfd (Excelerate Liquefaction) (CP14-71 & 72)

5. Elba Island, GA: 0.35 Bcfd (Southern LNG Company) (CP14-103)

6. Lake Charles, LA: 1.07 Bcfd (Magnolia LNG) (CP14-347)

7. Plaquemines Parish, LA: 1.07 Bcfd (CE FLNG) (PF13-11)

8. Sabine Pass, TX: 2.1 Bcfd (ExxonMobil – Golden Pass) (CP14-517)

9. Pascagoula, MS: 1.5 Bcfd (Gulf LNG Liquefaction) (CP15-521)

10. Plaquemines Parish, LA: 0.30 Bcfd (Louisiana LNG) (PF14-17)

11. Robbinston, ME: 0.45 Bcfd (Kestrel Energy – Downeast LNG) (PF14-19)

12. Cameron Parish, LA: 1.34 Bcfd (Venture Global LNG) (PF15-2)

13. Jacksonville, FL: 0.075 Bcf/d (Eagle LNG Partners) (PF15-7)

14. Hackberry, LA: 1.4 Bcfd (Sempra - Cameron LNG) (PF15-13)

15. Brownsville, TX: 0.54 Bcfd (Texas LNG Brownsville) (PF15-14)

16. Brownsville, TX: 0.94 Bcfd (Annova LNG Brownsville) (PF15-15)

17. Port Arthur, TX: 1.4 Bcfd (Port Arthur LNG) (PF15-18)

18. Brownsville, TX: 3.6 Bcfd (Rio Grande LNG – NextDecade) (PF15-20)

19. Freeport, TX: 0.72 Bcfd (Freeport LNG Dev) (PF15-25)

20. Corpus Christi, TX: 1.4 Bcfd (Cheniere – Corpus Christi LNG) (PF15-26)

21. Freeport, TX: 0.34 Bcfd (Freeport LNG Dev) (CP15-518)

22. Plaquemines Parish, LA: 2.80 Bcfd (Venture Global LNG) (PF15-27)

PROPOSED TO U.S.-MARAD/COAST GUARD23. Gulf of Mexico: 1.8 Bcfd (Delfin LNG)

PROPOSED CANADIAN SITES IDENTIFIED BY PROJECT SPONSORS24. Kitimat, BC: 1.28 Bcfd (Apache Canada Ltd.)

25. Douglas Island, BC: 0.23 Bcfd (BC LNG Export Cooperative)

26. Prince Rupert Island, BC: 2.74 Bcfd (Pacific Northwest LNG)

78

North American LNG Export TerminalsProposed

US Jurisdiction

FERC

MARAD/USCG

As of July 13, 2015

24

25

2

1

3

5

7

6 9

11

13

15 18

19

20

2122

26

810

1216174

14

23

Page 80: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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North American LNG Export TerminalsPotential

POTENTIAL U.S. SITES IDENTIFIED BY PROJECT SPONSORS

1. Brownsville, TX: 2.8 Bcfd (Gulf Coast LNG Export)

2. Cameron Parish, LA: 0.16 Bcfd (Waller LNG Services)

3. Ingleside, TX: 1.09 Bcfd (Next Decade Partners)

4. Cameron Parish, LA: 0.20 Bcfd (Gasfin Development)

5. Brownsville, TX: 3.2 Bcfd (Eos LNG & Barca LNG)

6. Gulf of Mexico: 3.22 Bcfd (Main Pass - Freeport-McMoRan)

7. Cameron Parish, LA: 1.6 Bcfd (SCT&E LNG)

8. Port Arthur, TX: 0.2 Bcfd (WesPac/Gulfgate Terminal)

9. Galveston, TX: 0.77 Bcfd (NextDecade)

10. Calcasieu Parish, LA: 0.64 Bcfd (Live Oak LNG–Parallax Energy)

11. Cameron Parish, LA: 1.84 Bcfd (G2 LNG)

POTENTIAL CANADIAN SITES IDENTIFIED BY PROJECT SPONSORS

12. Goldboro, NS: 1.4 Bcfd (Pieridae Energy Canada)

13. Prince Rupert Island, BC: 2.91 Bcfd (BG Group)

14. Melford, NS: 1.8 Bcfd (H-Energy)

15. Prince Rupert Island, BC: 4.0 Bcfd (ExxonMobil – Imperial)

16. Squamish, BC: 0.29 Bcfd (Woodfibre LNG Export)

17. Kitimat/Prince Rupert, BC: 0.32 Bcfd (Triton LNG)

18. Prince Rupert, BC: 3.12 Bcfd (Aurora LNG)

19. Kitsault, BC: 2.7 Bcfd (Kitsault Energy)

20. Stewart, BC: 4.1 Bcfd (Canada Stewart Energy Group)

21. Delta, BC: 0.4 Bcfd (WesPac Midstream Vancouver)

22. Vancouver Island, BC: 0.11 Bcfd (Steelhead LNG)

23. Prince Rupert Island, BC: 3.2 Bcfd (Orca LNG)

24. Saguenay, Quebec: 1.6 Bcfd (GNL Quebec)

25. Saint John, NB: 0.67 Bcfd (Saint John LNG Development)

26. Kitimat/Douglas Channel, BC: 0.07 Bcfd (Altagas Ltd)

US Jurisdiction

FERC

MARAD/USCG

As of July 13, 2015

1315

16

1718

19

20

2122

2326

1214

24

25

1

2

3

4

67

89 10 11

5

Page 81: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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Proposed to FERCNikiski, AK

2.55 Bcfd (ExxonMobil, ConocoPhillips, BP, TransCanada, and Alaska Gasline)

(PF14-21)

Existing LNG Terminal Kenai, AK

0.2 Bcfd (ConocoPhillips)

12

As of July 8, 2015

Alaska LNG Export TerminalsExisting and Proposed

Page 82: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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Learn at home

Good learning resource for gas pipelines and storage - Interactive or 76 page pdf version

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

Page 83: Gas Pipeline Regulation · 2015-09-17 · Gas Pipeline Regulation Pamela Boudreau Deputy Director Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory

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Contact