Interstate natural gas pipelines signaled their support last week for FERC’s proposed rule that would clear the way for them to quickly rebuild their facilities in the wake of deliberate damage or other types of disasters, but they believe the agency can and should go further.

Williston Basin Interstate Pipeline Co. said the rule, which would relax existing construction regulations in crisis situations, “must apply to all emergencies and should not be limited to those caused by a natural disaster or deliberate damage,” as was proposed by the Federal Energy Regulatory Commission in its Jan. 17 initiative.

“Regardless of what caused the emergency, Williston Basin believes any event which causes sudden anticipated loss of natural gas supply or capacity, and which requires immediate action to restore service to prevent loss of life, impairment of health or damage to property should be treated equally under the Commission’s regulations,” the pipeline told the agency [[RM03-4].

MidAmerican Energy, a Des Moines, IA-based gas and electric utility, urged the Commission to expand the scope of the proposed rule to allow other unaffected facilities in an area of a damaged pipeline to carry out emergency construction “in the event [the unaffected] pipeline is able to construct facilities more quickly and efficiently.”

This recommendation “drastically expands the scope of the [proposed rule], but in dire situations, construction from an alternative pipeline or alternative facilities may provide the most expeditious solution,” MidAmerican said. “The objective of this secondary solution is to preserve and protect the public’s interest in providing service to affected customers as quickly as possible and is reserved for only in the most dire circumstances.”

The comments were in response to FERC’s notice of proposed rulemaking (NOPR) that was issued in mid-January. It seeks to expand the scope of construction activities that pipelines can undertake under their Part 157 blanket certificate authority in the event of emergencies, as well as eliminate the prior-notice requirement.

Specifically, the proposed rule would permit pipes to replace mainline facilities that were the target of intentional damage or natural disasters 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.

Rather than giving pipes carte blanche “self-implementing” authority to rebuild, MidAmerican said it believes there should be some Commission “evaluation and assessment” of the damage before allowing a pipeline to proceed with emergency construction outside an existing right-of-way (ROW), but it should be done quickly. It proposes that FERC issue a ruling within three days of a pipe’s filing. This FERC oversight, the utility believes, would deter pipelines from abusing the emergency authority.

“The Commission must be cautious and prudent in its approach recognizing that some pipelines may attempt to utilize the ’emergency’ regulations to either increase capacity or expand pipeline facilities in situations that are not emergencies or use such emergency circumstances to expand capacity or upgrade pipeline facilities beyond that which is needed or beyond the facilities which they are designed to replace,” MidAmerican cautioned

Williston Basin, however, “does not believe a short Commission review period is necessary in advance of commencing construction outside the existing right-of-way,” the pipeline said. “The time required for Commission review, advance approval and a determination that an emergency exists, although proposed to be short, could impede a pipeline company’s ability to respond to such emergency in a timely manner.”

Both MidAmerican and Williston Basin agreed that FERC’s proposed reconstruction authority should apply equally to facilities within and outside of existing ROWs.

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