IPAA official urges White House to choose new FERC, PHMSA leaders

March 9, 2017
Noting that she appreciates the Trump administration’s more favorable attitude toward US oil and gas producers than its immediate predecessor’s, an Independent Petroleum Association of America official called on the White House to promptly fill leadership vacancies at two key federal energy transportation regulatory agencies.

Noting that she appreciates the Trump administration’s more favorable attitude toward US oil and gas producers than its immediate predecessor’s, an Independent Petroleum Association of America official called on the White House to promptly fill leadership vacancies at two key federal energy transportation regulatory agencies.

Nominating a chairman and two more Federal Energy Regulatory Commission members and a Pipeline and Hazardous Materials Safety Administration chief would help increase certainty for upstream independents, IPAA Senior Vice-Pres. of Regulatory Affairs Susan W. Ginsberg said on Mar. 3.

“This country needs infrastructure. Our members use pipelines to get what they produce to markets,” she told OGJ. “There hasn’t been a quorum at FERC for several weeks. This needs to be addressed. PHMSA also needs a new administrator to get things moving there.”

IPAA filed a comment that day at FERC in support of Spire STL’s proposed pipeline, which would connect the St. Louis utility holding company formerly known as LaClede Gas with the Rockies Express interstate system in Scott County, Ill. Issues at PHMSA that Ginsberg described suggested that the producers’ association is even busier there.

The US Department of Transportation agency’s pending Gas Transmission and Safety Rule would impose data collection responsibilities on producers, which IPAA does not oppose if the information is being collected already, she explained. That was not the case with the US Environmental Protection Agency’s Information Collection Request, which new EPA Administrator Scott Pruitt withdrew for review the day before (OGJ Online, Mar. 3, 2017).

Ginsberg welcomed that Trump administration move. IPAA remains concerned about possible federal regulation of gas gathering, which states presently oversee, she said. “We think it’s more appropriate to keep interstate transmission and gathering separate,” she said, adding that PHMSA has held one meeting already about its proposed rule but has postponed a second until June.

“There are no producer or gathering interests on PHMSA’s Gas Pipeline Advisory Committee. We hope to get some representation when the next opening occurs, maybe sometime this year,” Ginsberg said.

IPAA remains concerned that new federal regulation would particularly affect lager-diameter gathering lines, primarily in Pennsylvania, she said. It would rather see continued reliance on American Petroleum Institute Recommended Practice 80, which differentiates gathering systems by function instead of diameter, she said.

“It’s going to be challenging. The good news is that PHMSA has taken a pause,” said Ginsberg. “Gathering won’t be on the GPAC’s June meeting agenda, which will give the gathering and midstream industry time to push for representation there. These are important issues. We don’t see any point in rushing ahead before the new federal administrators are in place.”

Contact Nick Snow at [email protected].