pipeline projects: preparing for ferc certification, addressing...

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Presenting a live 90-minute webinar with interactive Q&A

Pipeline Projects:

Preparing for FERC Certification,

Addressing Environmental Impacts Navigating the Certification and Environmental Review Processes for Pipelines

Today’s faculty features:

1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific

TUESDAY, FEBRUARY 21, 2017

Andrew T. Bockis, Partner, Saul Ewing, Harrisburg, Pa.

H. David Gold, Special Counsel, Wilmer Cutler Pickering Hale and Dorr, Boston

Sean T. O'Neill, Esq., Saul Ewing, Philadelphia

Raya B. Treiser, Esq., Wilmer Cutler Pickering Hale and Dorr, Washington, D.C.

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Pipeline Projects:


Addressing Environmental Impacts

Strafford Webinars

February 21, 2017

H. David Gold

[email protected]

WilmerHale

What is Natural Gas?

6

WilmerHale

Oil and Gas Industry

▪ Exploration

▪ Production

▪ Transportation

Adapted from: GE Oil and Gas Solutions (http://www.ge.com/in/oil-and-gas/operating-segments)

▪ Refining

▪ Marketing

7

http://www.ge.com/in/oil-and-gas/operating-segments







WilmerHale

U.S. Natural Gas Pipelines

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Federal Regulation of Natural Gas Pipelines

siting and

abandonment of

interstate natural gas

pipelines

pipeline security

pipeline safety PHMSA Pipeline and Hazardous Materials Safety Administration

9

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiR7eaAr7TMAhVFWSYKHU_7DI4QjRwIBw&url=http%3A%2F%2Ftransportationinworld.site%2Fdot-transport%2F&psig=AFQjCNGsFVLLB7mjXL1l8gJNdjEUAVt83Q&ust=1462036939015912

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwixvtDasLTMAhUK7iYKHW_GBRAQjRwIBw&url=https%3A%2F%2Ftwitter.com%2Fferc&bvm=bv.120853415,d.eWE&psig=AFQjCNF6JXGM1LiO43LsnckRkWbrpdI-Jg&ust=1462037607173233

WilmerHale

Federal Regulation of Natural Gas Pipelines

Endangered

Species Act

Clean Water Act

National Historic

Preservation Act

Magnuson-

Stevens Act

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https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjs3ejO4vvRAhWJZiYKHVF8CKQQjRwIBw&url=https%3A%2F%2Fwww.innovateteam.com%2Fservices%2Finformation-technology%2F&psig=AFQjCNF6Cb_9P70zpahK__dUs-SxVKMh_Q&ust=1486480742722946

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjTz9rM3fvRAhXC7SYKHZaTCrMQjRwIBw&url=http%3A%2F%2Fwww.wrbh.org%2Fthis-week-in-original-programming-0330-0403-new-orleans-corps-of-engineers-juley-of-upperlyne-com-swedish-author-lina-wolff-and-female-rapper-boyfriend%2F&psig=AFQjCNGXmnrvvj2GJ2mcfIsfEsHFFqy5Ew&ust=1486479443945733

WilmerHale

Natural Gas Act - 15 U.S.C. §§ 717-717z

Section 1(b) - 15 U.S.C. §717(b)

o transportation of natural gas in interstate commerce

o sales for resale of natural gas in interstate commerce

o companies who transport and sell natural gas in

interstate commerce

Section 7 - 15 U.S.C. §717f

o certificate of public convenience and necessity

o abandonment of facilities or services

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Federal Energy Regulatory Commission

Pipeline

Certificates

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Pipeline Certificates Approved in 2017

Docket No. Company/Project Capacity

(MMcf/d)

Miles of

Pipe States Filing Date Issued Date

CP15-115 National Fuel Gas Supply Corp/Empire Pipeline, Inc.

Northern Access 2016 Project 497 99.8 NY, PA 3/17/2015 2/3/2017

CP15-138 Transcontinental Gas Pipe Line Company, LLC Atlantic

Sunrise Project 1700 199.5 PA, VA 3/31/2015 2/3/2017

CP15-93 Rover Pipeline LLC

Rover Pipeline Project 3,250 711.2 OH, PA, WV 2/20/2015 2/2/2017

CP15-94 Panhandle Eastern Pipe Line Company, LP Panhandle

Backhaul Project 750 0 IN, IL, MI, OH 2/23/2015 2/2/2017

CP15-96 Trunkline Gas Company, LLC

Trunkline Backhaul Project 750 0 IL, MS, TN 2/23/2015 2/2/2017

CP16-4 Tennessee Gas Pipeline Company, L.L.C.

Orion Project 135 12.9 PA 10/9/2015 2/2/2017

CP16-98 Dominion Carolina Gas Transmission, LLC

Transco to Charleston Project 80 60 SC 3/9/2016 2/2/2017

CP16-472 Northern Natural Gas Company

Northern Lights 2017 Expansion 75.9 4.8 MN 6/24/2016 1/30/2017

CP16-501 Texas Eastern Transmission, LP Marshall County Mine

Panel 17W Project 1 WV 9/15/2016 1/26/2017

CP16-12 Tennessee Gas Pipeline Company, L.L.C. Southwest

Louisiana Supply Project 295 3.8 LA 10/26/2015 12/15/2016

CP16-17 Millennium Pipeline Company, L.L.C.

Valley Lateral Project 130 7.8 NY 11/13/2015 11/9/2016

7,662.9 1,100.8

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WilmerHale

Pipeline Certificates Approved in 2016

Total number of certificates = 38

Total miles of pipe = 1,111.1

Total number of states = 23 (AL, AZ, CT,

DE, FL, GA, IL, IN, KY, LA, MA, MD, NC,

NJ, NY, OH, PA, SC, TN, TX, VA, WA, WV)

Total capacity = 13,815 (MMcf/d)

https://www.ferc.gov/industries/gas/indus-act/pipelines/approved-projects.asp

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Pipeline Certificate Process

1. Applicant’s Planning Process

2. Application Process

3. Construction Process

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WilmerHale

Applicant’s Planning Process

Open Season to

Determine

Market Needs

Select Proposed

Pipeline Route

Start Surveys

Public Meetings

Identify

Landowners

Complete

Resource

Reports

Negotiate

Easements

Applicant files

Application

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WilmerHale

Application Process

Pre-Filing

(voluntary)

Scoping

Applicant files

Application

EA or Draft EIS Scoping

(if no Pre-Filing)

FERC issues

Notice of

Application

Respond to

Comments /

Final EIS

Final Order

Preliminary

Determination

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Pre-Filing Environmental Review Process

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Pre-Filing Environmental Review Process (continued)

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Pipeline Certificate Standard - 15 U.S.C.§717f(e)

A certificate shall be issued to any qualified applicant therefor, authorizing

the whole or any part of the operation, sale, service, construction,

extension, or acquisition covered by the application, if it is found:

otherwise such application shall be denied.

• that the applicant is able and willing properly to do the acts and to

perform the service proposed and to conform to the provisions of this

chapter and the requirements, rules, and regulations of the

Commission thereunder, and

• that the proposed service, sale, operation, construction, extension, or

acquisition, to the extent authorized by the certificate, is or will be

required by the present or future public convenience and necessity;

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WilmerHale

Analytical Framework FERC Policy for Certificating New Pipeline Construction

1 - Threshold question: Can project proceed without

subsidies from customers?

• Not applicable to new pipeline companies without existing customers

2 - Has applicant eliminated or minimized adverse effects?

If yes to 1 and 2:

preliminary determination / final order

If yes to 1 and no to 2:

public benefits vs. adverse effects

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WilmerHale

Effect of Pipeline Certificate

Preemption

o state and local law in conflict with federal law

o savings clause - 15 U.S.C.§717b(d)

• Coastal Zone Management Act

• Clean Air Act

• Clean Water Act

Eminent domain - 15 U.S.C. §717f(h)

Terms and conditions - 15 U.S.C.§717f(e)

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WilmerHale

Pipeline Construction Process

Pipeline

construction

ROW

restoration

Project in

service

Finalize

project design

File plans,

surveys, etc.

Complete ROW

acquisition

23

© Copyright 2017 Saul Ewing LLP

Pipeline Projects Addressing Environmental Impacts

Andrew Bockis, Esq.

[email protected]

(717) 257-7520


Required Environmental Review

• Natural Gas Act

Pre-filing process

National Environmental Policy Act

• FERC – Lead Agency

NEPA and “all applicable Federal authorizations”

15 U.S.C. § 717n

25


Select Federal Authorizations

• Clean Water Act

§ 402

§ 404

§ 401 may be triggered

• Clean Air Act

• Endangered Species Act (§ 7)

• National Historic Preservation Act (§ 106)

26


NEPA Review

• Procedural obligations

• Ensure that environmental effects are “adequately identified and evaluated”

27


NEPA Review

• Environmental Assessment v. Environmental Impact Statement

18 CFR § 380.5 (actions that require EA)

18 CFR § 380.6 (actions that require EIS)

• Promoting informed agency action

29


Addressing Opposition

• FERC Rehearing

• Judicial review

Consolidated Record – 15 U.S.C. § 717n(d)

18 CFR § 385.2014 – Index of agency documents and materials

30


Pipeline Projects: Preparing for FERC Certification,


Strafford Webinars

February 21, 2017

Sean T. O’Neill

[email protected]


Best Practices and Allocating Risks and Benefits

• Primary goal is to get project approved and pipe in the ground

Anticipate opposition – legal or otherwise

Identify and avoid potential pitfalls

Build record to withstand challenges and support acquisition of land rights

32


Getting Project Approved

• Gather information for initial application

• Respond to FERC data requests

• Address public comments

• Mitigate impacts

• Analyze alternatives

Working parallel paths

33


Getting Pipe in the Ground

• Satisfying conditions in FERC Order

• Survey access and land acquisition

Identify critical paths

• Eminent domain

• Authorizations from permitting agencies

34


Anticipate Opposition

• Identify potential opposition and develop response plan

Appeals, permits, legislation, environmental or landowner groups

Critical paths, parallel paths

Consider standard of review

Build a strong record with FERC and permitting agencies

35


Identify and Avoid Pitfalls

• Difficult landowners or tracts

Can necessary property rights and permits be acquired?

Is project constructible?

• Local zoning and approvals

Asserting preemption

• Permitting agencies

Be responsive and build a record

36


Building the Record

• Legal challenges to project often limited to administrative record

Anticipate opposition and issues and build record accordingly

• Is issue within scope of agency? Was it considered? What evidence to support?

Consider the standard of review

• For the agency and on appeal

37


Building the Record

• Make sure the administrative record will support land acquisition efforts

Exercising eminent domain

• Landowner opposition and challenges

• Identifying rights needed

Building case for preemption

• Determine where it may need to be asserted

• Showing issue considered by FERC

38


FERC Without a Quorum

• What can FERC do without a quorum?

Automatic approvals

Delegations of authority to FERC staff

• Impacts on pending projects

39


Baltimore Lockwood Place • 500 East Pratt Street, Suite 900 • Baltimore, MD 21202-3171 • T: 410.332.8600 • F: 410.332.8862

Boston 131 Dartmouth Street, Suite 501 • Boston, MA 02116 • T: 617.723.3300 • F: 617.723.4151

Harrisburg Penn National Insurance Plaza • 2 North Second Street, 7th Floor • Harrisburg, PA 17101-1619 • T: 717.257.7500 • F: 717.238.4622

New York 245 Park Avenue, 24th Floor • New York, NY 10167 • T: 212.672.1995 • F: 212.372.8798

Newark One Riverfront Plaza • Newark, NJ 07102 • T: 973.286.6700 • F: 973.286.6800

Philadelphia Centre Square West • 1500 Market Street, 38th Floor • Philadelphia, PA 19102-2186 • T: 215.972.7777 • F: 215.972.7725

Princeton 650 College Road East, Suite 4000 • Princeton, NJ 08540-6603 • T: 609.452.3100 • F: 609.452.3122

Washington

1919 Pennsylvania Avenue, N.W. Suite 550 • Washington, DC 20006-3434 • T: 202.333.8800 • F: 202.337.6065

Wilmington 1201 North Market Street• Suite 2300 P.O. Box 1266 • Wilmington, DE 19899 • T: 302.421.6800 • F: 302.421.6813

Chesterbrook 1200 Liberty Ridge Drive, Suite 200 • Wayne, PA 19087-5569 • T: 610.251.5050 • F: 610.651.5930

Pittsburgh One PPG Place • 30th Floor • Pittsburgh, PA 15222 • T: 412.209.2500 • F: 412.209.2570

40

Pipeline Projects:



Strafford Webinars

February 21, 2017

Raya B. Treiser

[email protected]

202-663-6002

mailto:[email protected]

WilmerHale

Fish and Wildlife

Service

Endangered Species

Act Consultation

US Forest Service

Special Use Permit to

cross National Forest

System lands

Project

Green

Light

National Park

Service

Right of Way to

Cross NPS lands

Bureau of Land

Management

Right of Way to cross

public lands managed

by the federal

government

US Army Corps of

Engineers

Clean Water Act

Section, Rivers and

Harbors Act

FERC

Certificate of Public

Convenience and

Necessity

National Oceanic

and Atmospheric

Administration

Endangered Species

Act Consultation

Bureau of Indian

Affairs

Right of Way to Cross

tribal lands

Federal Agency Reviews of Interstate Pipelines

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Coordinating Federal Reviews

• The Energy Policy Act of 2005 / Order No. 687

o FERC is the NEPA lead agency

o FERC establishes Federal agency

deadlines: 90 days after FERC Order

• FAST-41 Federal Permitting Improvement Act

o Increased predictability

o Increased transparency and accountability

o Improved early coordination and

synchronization of federal reviews

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WilmerHale

FAST-41 Covered Sectors and Agencies

Sectors Agencies

• Renewable energy generation

• Electricity transmission

• Surface transportation

• Aviation

• Ports and related infrastructure

• Water resources projects

• Conventional energy production

• Broadband

• Pipelines

• Manufacturing

• Other sectors as determined by a majority vote

of the Federal Infrastructure Permitting

Improvement Steering Council

• Advisory Council on Historic Preservation

(ACHP)

• Department of Agriculture (USDA)

• Department of the Army (USACE)

• Department of Commerce (Commerce)

• Department of Defense (DOD)

• Department of Energy (DOE)

• U.S Coast Guard (Coast Guard)

• Department of Housing and Urban

Development (HUD)

• Department of the Interior (DOI)

• Department of Transportation (DOT)

• Environmental Protection Agency (EPA)

• Federal Energy Regulatory Commission

(FERC)

• Nuclear Regulatory Commission (NRC)

• Department of Homeland Security (DHS)

• Morris K. Udall and Stewart L. Udall

Foundation (Udall)

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WilmerHale

FAST-41 Covered Projects

Category 1 Category 2

Subject to NEPA;

Likely to require a total

investment of more than

$200,000,000; and

Does not qualify for abbreviated

authorization or environmental

review processes under any

applicable law

Likely to benefit from

enhanced oversight and

coordination, including a

project likely to require—

more than 2 Federal

agency reviews or

authorizations; or

the preparation of an EIS

under NEPA.

45

WilmerHale

Key Provisions of FAST-41 Act

Coordination

• Coordinated Project Plan

• Concurrent Reviews

• Coordination with state, local and tribal reviews

Transparency

• Permitting Dashboard

• Agency CERPOs

Predictability

• Infrastructure Permitting Improvement Steering Council

• 2-Year Statute of Limitations

• Effects on jobs considered in Preliminary Injunction Suits

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Interstate Pipeline Permitting Under the

Trump Administration

• Renewed Focus on Energy Infrastructure,

Permitting Efficiency

• Executive Order on Expediting Environmental

Reviews and Approvals for High Priority

Infrastructure Projects

• Presidential Memoranda Regarding:

• Construction of the Keystone XL Pipeline

• Construction of the Dakota Access Pipeline

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pipeline projects: preparing for ferc certification, addressing...

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