This part in particular... 2. Factors Considered When Issuing A Certificate In determining whether to issue a certificate for a pipeline, FERC must find that the project is in the public interest, and that overall, the benefits of the project outweigh the adverse impacts. In addition, FERC’s Policy Statement on Pipeline Certificates, directs FERC to consider several specific factors, including (1) the enhancement of competitive transportation alternatives; (2) the possibility of overbuilding; (3) subsidization by existing customers; (4) the applicant’s responsibility for unsubscribed capacity; (5) avoidance of unnecessary 6 Laser Marcellus has also applied for status a public utility in Pennsylvania, presumably to acquire eminent domain rights for the project. In April 2010, the Pennsylvania PUC conducted a hearing to explore the implications of granting public utility status to independently owned gathering companies and other legal issues related to potential state regulation of gathering companies. �5 disruptions to the environment; and avoidance of the unnecessary exercise of eminent domain.7 In addition, under the National Environmental Policy Act (NEPA), FERC must consider project alternatives, as well as a wide range of potential impacts, including socio-economic and cumulative impacts. Cumulative impacts are impacts that result from the proposed action as well as past, present and foreseeable actions, which may be minor individually but collectively, are significant. As for pipeline safety, FERC’s role is subordinate to the Department of Transportation (DOT). Applicants for a pipeline certificate are required to certify to FERC that they will “design, install, inspect, test, construct, operate, replace and maintain” a gas pipeline facility under those standards and plans contained in the Pipeline Safety Act, 49 U.S.C. § 60104(d)(2), also 18 C.F.R. § 157.14(a)(9)(vi). FERC will typically consult with DOT regarding compliance with standards, however, many times, final plans are not completed until after the certificate issues. Once a pipeline is operational, safety is regulated, monitored and enforced by the Department of Transportation, and any safety violations should be reported to the Department of Transportations Office of Pipeline Safety.8
Posted on: Thu, 13 Mar 2014 13:10:12 +0000
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