The Federal Energy Regulatory Commission, U.S. Coast Guard and Department of Transportation (DOT) last week entered into an interagency agreement aimed at providing a “comprehensive and coordinated review” of safety and security issues associated with liquefied natural gas (LNG) import terminals and transportation of the fuel in U.S. waters.

The agreement was signed by FERC Chairman Pat Wood, Admiral Thomas Collins of the Coast Guard and Samuel Bonasso, who is deputy administrator of DOT’s Research and Special Programs Administration, which oversees the Office of Pipeline Safety (OPS).

The pact spells out the roles and responsibilities of each agency in overseeing LNG terminals and tanker operations, and requires the agencies to identify issues early and resolve them. It recognizes FERC as the lead agency for environmental reviews under the National Environmental Policy Act (NEPA).

As part of their cooperative efforts, the Commission reported that it, along with the Coast Guard and DOT, currently is conducting a study of the risks associated with LNG spills on water for the purpose of developing a model to calculate vapor and thermal hazards. The results of the study are due out at the end of March, the agency said.

“Our relationship [with FERC] has always been a good one” since the early 1980s, said Stacey L. Gerard, associate administrator with the OPS, during the regular FERC meeting last Wednesday. This agreement “reinforces and builds” on that. Moreover, she said the agreement allows the agencies to take a “holistic” approach to reviewing the safety/security of LNG operations and tanker transportation.

In addition to working with FERC on the LNG study, Gerard reported the DOT currently was updating its standards for LNG operations, and was continuing its annual inspections of LNG facilities.

Referring to the agreement, Wood noted that “it never hurts to codify what we’ve been doing [all along].” The three agencies “will make sure there are no holes in the seamless [blanket] of protection.”

Commissioner Nora Brownell stressed the need for interagency cooperation on LNG. “This is a critical part of the diversity of our fuel mix.”

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