On January 17, 2019, the Federal Energy Regulatory Commission (Commission) held its monthly open meeting. The first half of the meeting was dedicated to remembrances of Commissioner McIntyre, who passed away earlier this month. The Commission elected to name the Commission meeting room in his honor.

Highlights of the second half of the meeting included:

  • Investigation on Rates Charged by Three Interstate Pipeline Companies: Chairman Chatterjee highlighted the Commission’s initiation on January 16 of investigations pursuant to Section 5 of the Natural Gas Act of three interstate natural gas companies to determine if they are substantially over-recovering their costs of service, resulting in unjust and unreasonable rates. The investigations result from the Commission’s review of information submitted by these companies via FERC Form 501-G in response to the Commission’s Order No. 849 concerning the companies’ return on equity before and after the passage of the Tax Cuts & Jobs Act of 2017 and changes to the Commission’s tax allowance policies in response to the DC Circuit’s United Airlines decision. The Commission simultaneously terminated nine natural gas rate proceedings finding that the pipelines complied with the Commission’s filing requirements. Chairman Chatterjee emphasized his commitment to ensure that the benefits of reduced taxes flow to consumers and to resolve the matters as soon as possible.

 

 

The US Court of Appeals for the Third Circuit recently issued two decisions concerning the relationship between the Natural Gas Act (NGA) exclusive jurisdiction provision at 15 U.S.C. § 717r(d)(1) and the administrative review process for state-issued environmental permits for interstate natural gas pipeline projects. These decisions are briefly described as follows:

  • In Delaware Riverkeeper et al. v. Sec PA Dept. Env. Protection, et al. (Sept. 4, 2018), the court held that only “final” state agency actions are reviewable under the NGA’s exclusive jurisdiction provision. The court determined, however, that the state-issued water quality certification at issue was reviewable “final” action even though it was subject to further administrative review because, under the relevant state law, the certification had legal effect as issued and was the final action of the agency that issued it.
  • In Township of Bordentown, New Jersey et al. v. FERC et al. (Sept. 5, 2018), the court held that state administrative review of environmental permits issued for natural gas pipeline projects is not preempted by the NGA’s exclusive review provision, as the NGA only eliminates state court review of interstate pipeline-related state agency orders.

 

To learn more, read the entire article here, at PipelineLaw.com.

On August 15, 2017, the US Court of Appeals for the DC Circuit (DC Circuit) issued its decision in Sierra Club v. Department of Energy (Freeport),[1] denying Sierra Club’s challenge to the Department of Energy’s (DOE) order authorizing export under the Natural Gas Act of 1938 (NGA) from the proposed Freeport Liquefied Natural Gas (LNG) Terminal in Freeport, Texas. The decision marks yet another victory in a string of successes for supporters of LNG export.

Continue Reading LNG Export Supporters Win Another Victory in Court