The Federal Energy Regulatory Commission proposed a rule Wednesday that would clear the way for interstate natural gas pipelines to quickly rebuild their facilities in the wake of “deliberate damage” caused by terrorists or others.

Under a notice of proposed rulemaking (NOPR), the Commission seeks to expand the scope of construction activities that pipelines can undertake under their Part 157 blanket certificate authority in the event of emergencies. Specifically, the proposed rule would permit pipelines to replace mainline facilities that were the target of intentional damage without having to notify FERC 45 days prior to the start of construction, and it would remove the cost limitations for construction projects typically allowed under blanket certificate authority [RM03-4].

In cases of deliberate damage, pipelines would simply be required to report the situation to the Commission, and then would be allowed to rebuild without seeking formal agency approval, FERC staff said. The NOPR still would require pipelines to comply with existing environmental, safety and landowner acquisition rules, but it would permit them to depart from an existing right-of-way.

The proposed rule is intended to address situations where a pipeline mainline has suffered damage, and access to the facilities has been restricted due to an investigation or contamination, according to agency staff. It would allow pipelines to rebuild around a damaged site to reconnect with its mainline to restore service.

The NOPR is in response to concerns expressed by pipelines at a joint FERC-Department of Transportation (DOT) meeting last April. Pipeline executives noted that existing Commission regulations blocked rapid restoration of service in the wake of a “sudden disruption” due to a deliberate attack or other unexpected emergency. Their concerns were fueled by the terrorist attacks in New York City and suburban Washington, DC on Sept. 11, 2001.

The Commission is seeking formal comments from industry on the NOPR, particularly on the issue of what constitutes an “emergency.”

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