FERC Lays the Groundwork for Making Natural Gas Pipelines Happen Far More Quickly!
Guest post by Jim Willis of Marcellus Drilling News.
Recent actions taken by the Federal Energy Regulatory Commission (FERC) appear to be quite significant, yet it has not received any media attention. On June 18, FERC took several actions to remove regulatory obstacles and therefore speed up the construction of needed natural gas infrastructure projects in the United States.
FERC issued a blanket waiver (valid for the next two years) of its Order No. 871, which has allowed Big Green to block the construction of pipeline projects while rehearing requests are being handled. The result has been to delay projects by years while Big Green ties up such projects with endless appeals. Waiving Order No. 871 frees up FERC personnel to go ahead and issue orders to allow projects to begin construction.
Another waiver granted by FERC on June 18 temporarily raises the cost limits under which natural gas companies are allowed to undertake pipeline modifications or construction without the need for further case-by-case certificate authorization by FERC. Essentially, it removes red tape and endless permissions and forms required for “minor” projects and changes in projects.
The Trump administration is pushing hard to streamline and eliminate some of the regulatory burdens left behind by the bureaucratic Biden administration. Cutting red tape. These actions will benefit all pipeline projects, including those in the Marcellus/Utica.
FERC issued the following press release to announce its actions, the granting of two sweeping waivers:
FERC today took several actions to remove regulatory obstacles and therefore speed up the construction of needed natural gas infrastructure projects in the United States.
Today’s actions puts into place an immediate waiver of FERC’s Order No. 871 and establishes a process for permanent repeal to avoid delaying natural gas infrastructure projects that FERC has found are needed. FERC also acted to temporarily raise the cost limits under which natural gas companies are allowed to undertake pipeline modifications or construction without the need for further case-by-case certificate authorization by the Commission. This change will give natural gas companies increased flexibility and lessen regulatory burdens for certain activities related to their natural gas facilities.
“New and expanded natural gas infrastructure is essential to help America avoid a grid reliability crisis,” FERC Chairman Mark Christie said. “As the demand for electrical power continues to grow, getting more natural gas generation built is critically important and that means we must get natural gas infrastructure to supply that generation built more quickly as well, so that we can provide consumers with reliable power.”
Here are the specific actions taken today:
An order granting a two-year temporary waiver to increase blanket certificate cost limitations to expand certain activities a natural gas company may undertake without the need to obtain a case-specific certificate, and a Notice of Inquiry seeking comment on permanently adjusting the blanket certificate cost limitations.
An order granting a one-year waiver of the Commission’s rule that precludes the issuance of authorizations to proceed with construction activities for natural gas facilities while certain requests for rehearing are pending before the Commission, and a Notice of Proposed Rulemaking proposing to remove the rule from the Commission’s regulations.
The press release links to four filings that codify FERC’s actions. See here, here, here, and here. What we notice in reading through them is that these orders, resulting in two important waivers to streamline policies at the agency, came in response to requests by the Interstate Natural Gas Association of America (INGAA). Go INGAA!
Editor’s Note: Clearly, these waivers are part of Trump’s plan (and deal) to move the Constitution and NESE pipelines forward.
#ConstitutionPipeline #NESEpipeline #FERC #Waivers #MarcellusShale #NaturalGas #NewYork #Trump
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