US FERC announces interagency LNG approval process

Feb. 12, 2004
The US Federal Energy Regulatory Commission, US Coast Guard (USCG), and US Department of Transportation (DOT) announced an interagency agreement designed to better coordinate the federal government's role in monitoring and approving LNG import terminals.

By OGJ editors
WASHINTON, DC, Feb. 12 -- The US Federal Energy Regulatory Commission, US Coast Guard (USCG), and US Department of Transportation (DOT) announced an interagency agreement designed to better coordinate the federal government's role in monitoring and approving LNG import terminals.

FERC officials said their agreement, announced Wednesday, "clearly delineates the roles and responsibilities of each agency relative to LNG terminals and LNG tanker operations, and stipulates that the agencies identify issues early and quickly resolve them."

FERC will be the lead agency for environmental review under the National Environmental Policy Act and will coordinate its review with DOT and USCG. Under the agreement, the agencies agreed to build a consensus on any hazard studies or other documents that might include safety and security analyses.

DOT's Office of Pipeline Safety has the authority to promulgate and enforce safety regulations and standards for the transportation and storage of LNG in or affecting interstate or foreign commerce under pipeline safety laws. OPS authority extends to the siting, design, installation, construction, initial inspection, initial testing, operation, and maintenance of LNG facilities. Operation and maintenance includes fire prevention and security planning.

USCG exercises authority over LNG facilities that affect the safety and security of port areas and navigable waterways.

Currently, the FERC, in cooperation with DOT and USCG, is evaluating the hazards associated with LNG spills on water. Study results, due at the end of March, will be aimed at developing a model for calculating vapor and thermal hazards associated with spills.