FERC Pipelines and YOU

8/10/2019 FERC Pipelines and YOU

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FEDERAL ENERGY REGULATORY COMMISSION (FERC)

AND PIPELINES

Dory Hippauf

Chair, Research Committee


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GENERAL NATURAL GAS PIPELINE INFORMATION


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AUGUST 2014: PROPOSED LIQUID NATURAL GAS

EXPORT TERMINALS


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AUGUST 2014: POTENTIAL LIQUID NATURAL GAS

EXPORT TERMINALS


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Per Williams Partners Reports First-Quarter 2014 Financial

Results, 4/30/2014, Alan Armstrong, chief executive officerof Williams Partners' general partner, made the following

comments:

"We're excited about the accelerating pace of expansionprojects at Transco, inc luding At lant ic Sunr ise, Dalton

Lateral and our newly announced Gulf Trace project. The

Atlant ic Sunr iseand Gulf Trace projects will serve as

important infrastructu re for futu re LNG expo rt fac i li t ies

at Cove Point and Sabine Pass.

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

http://www.williamslp.com/profiles/investor/ResLibraryView.asp?BzID=1296&ResLibraryID=69789&Category=1800

APRIL 2014: Williams Partners First-Quarter 2014 Reports


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Natural Gas Pipelines: Williams Leidy Line


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Natural Gas Pipelines: Williams Diamond East


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Natural Gas Pipelines: Williams Atlantic Sunrise


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Natural Gas Pipelines:PennEast

26,000-horsepower

Compressor Station


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PennEast Conglomerate Ownership

UGI Energy Services, LLCis the marketing, midstream and power generation

subsidiary of UGI Corporation.

UGIPenn Natural Gasis also a subsidiary of UGI Corporation and has nothing

to do with PENNEAST pipeline.


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60+ Year Old Pipelines

WilliamsTransco 9/2008 Appomattox, VA

NiSource Inc - I-77 Sissonville, WV

12/2012

Panhandle Eastern Pipeline - Hughesville, MO 11/2013

El Paso Natural Gas - Eddy County, NM, south of

Carlsbad. 8/2000


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http://energy.about.com/od/drilling/a/5-Types-Of-Natural-Gas-Pipelines.htm

5 Types of Natural Gas Pipelines:

Flowlines, Gathering Lines, Transmission, Distribution, and Service Lines

1) Flow Linesconnect to a single

wellhead in a producing field.

2) Gathering Linescollect gas

from multiple flow lines and move it

to centralized points, such as

processing facilities, tanks, or

marine docks.

3) Transmission Pipelines:

carry natural gas across long

distances and occasionally across

interstate boundaries. Transmission

lines are large steel pipes of up to42 diameter at a pressure of up to

1,200 psi.

4) Distribution Pipelinesare also

known as "mains," are the middle stepbetween high pressure transmission

lines and low pressure service lines.

5) Service Pipelinesconnect to a

meter that delivers natural gas to

individual customers.

Transmission Pipelines:

Transco

Atlantic SunriseDiamond East

PennEast


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Simplified Diagram of Natural Gas System

Regulator


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What does FERC do?

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 requirementsthrough imposition of civil penalties and other means;

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


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What does FERC NOT do?

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 or natural gas 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;

Tree trimmings near local distribution power lines in residential neighborhoods.


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Who regulates the pipelines?

FERC DOES NOT OVERSEE, INSPECT, ENFORCE OR

REGULATE PIPELINES ONCE THEY ARE CONSTRUCTED.

Construction and operation of PIPELINES ARE

OVERSEEN BY PIPELINE AND HAZARDOUS MATERIALS

SAFETY ADMINISTRATION (PHMSA).

PHMSA is an agency of the US Department of

Transportation. PHMSA does NOT participate in FERC

approval process.

PHMSA establishes national policy, sets and enforces

standards, educates, and conducts research to prevent

incidents.


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FERC Certificates of Public Convenience and Necessity

Under Section 7(c) of the Natural Gas Act of 1938, the Federal Energy Regulatory

Commission (FERC) is authorized to issue certificates of public convenience and

necessity for the construction or extension of any facilities ... for the transportation

in interstate commerce of natural gas.

Thus, companies seeking to build interstate natural gas pipelines must firstobtaincertificates of public convenience and necessityfrom FERC. TheEnergy Policy Act of 2005 (EPAct) designates FERC as the lead agency for

coordinating all applicable Federal authorizations and for National Environmental

Policy Act (NEPA) compliance in reviewing pipeline certificate applications.

Congressional Research Service: Interstate Natural Gas Pipelines: Process & Timing of FERC Permit Application Review

| Paul W. Parfomak Specialist in Energy and Infrastructure Policy | November 19, 2013


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FERC: Public Convenience and Necessity

FERCs Policy Statement on Pipeline Certificates, directs FERC to consider

several specific factors:

the enhancement of competitive transportation alternatives;

the possibility of overbuilding;

subsidization by existing customers;

the applicants responsibility for unsubscribed capacity

avoidance of unnecessary disruptions to the environment

avoidance of the unnecessary exercise of eminent domain


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FERC: Public Convenience and Necessity - Additional

Under the National Environmental Policy Act (NEPA), FERC

must consider project alternatives, as well as a wide range ofpotential impacts, including socio-economic and cumulative

impacts.

Cumulative impacts are impacts thatresult from the proposed action as well as

past, present and foreseeable actions,

which may be minor individually but

collectively, are significant.

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 | Carolyn Elefant, Law Offices of Carolyn Elefant


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FERC Public Comment

3 Major Points for Public comment

1. PRE-FILE: Applicants initial filing for general review

This is the first opportunity for public comment.

2. FERC HEARINGS: Public and relevant agency input

Second opportunity for public comment.

3. OFFICIAL APPLICATION: Issue Notice of Application

Interested parties may file as INTERVENOR, and thirdopportunity for public comment.


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FERC Process Flow Chart


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FERC Process Flow Chart continued


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Public Comments

Q) Who can Comment?

A) ANYONE, including public officials, experts, agencies, groups andindividuals

Q) When may comments be submitted?

A) Beginning when a Docket # is assigned.

Q) How do I submit a comment?

A) Through FERCs Ecomment, Postal Mail, or at FERC hearings.

Q) What should the comments be about?

A) Comments should be in your OWN words and relative to FERCs

responsibilities for the project.


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FERC: Intervenor

Individuals have the option to intervene inCommission proceedings.

Intervenors becomes participants in a

proceeding and have the right to requestrehearing of Commission orders and seek

relief of final agency actions in the U.S.

Circuit Courts of Appeal.

FERC | Intervene http://www.ferc.gov/help/how-to/intervene.asp


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WE ARE NOT ALONE

>> In response to public criticism, Atlantic Sunrise Pipeline changes to part of the route to

avoid several nature reserves in Lancaster County.>> 200 people turned out to Lebanon Valley College in Annville, Pennsylvania to comment on

the proposed Williams Company Atlantic Sunrise.

>> Lebanon County residents opposing Atlantic Sunrise want to try a legal challenge to stop

it, using a type of ordinance that has an overarching goal of returning decisions to local

communities instead of corporations, the state and federal government.

>> Holland NJ: 350 residents turn out to oppose PennEast

>> Hunterton County: Over 400 residents attend and voice opposition to PennEast

>> Opposition to PennEast proposed pipeline route mounts in Northampton, Hunterdon

counties (Lehigh Valley)

>>Lancaster city becomes first municipality to oppose Atlantic Sunrise project

>> Clinton, Hunterton County: Passed a resolution to oppose the Penn East

Pipeline

>>Hopewell NJ: Hopewell Township voted unanimously to oppose PennEast


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FERC Pipelines and YOU

Documents