Cooperation, not contention

March 6, 2017
At a time when some politicians seem determined to portray federal-state regulatory relationships as contentious, two resolutions that the National Association of Regulatory Utility Commissioners approved at its recent winter meeting told a different story.

At a time when some politicians seem determined to portray federal-state regulatory relationships as contentious, two resolutions that the National Association of Regulatory Utility Commissioners approved at its recent winter meeting told a different story.

Both dealt with natural gas pipelines. They emphasized cooperation more than confrontation with the US Federal Energy Regulatory Commission on siting and the US Pipeline and Hazardous Materials Safety Administration on safety and leak prevention.

Section 7 of the Natural Gas Act makes FERC responsible for reviewing applications to construct and operate new interstate gas pipelines. The process has become more contentious, complex, and protracted over decades, NARUC's first resolution noted.

The association and its Gas Committee acknowledged that FERC is trying to improve stakeholder processes to expedite gas pipeline certifications by having its staff actively participate during the prefiling phase in helping stakeholders identify and resolve concerns.

"NARUC and its Gas Committee recognize the desire for our members to have the latest information on current pipeline siting processes and potential options and avenues for lessening the uncertainty on the current pipeline approval and permitting process," the resolution noted. They also cited the need for both continued constructive sharing of pipeline siting information and potential necessary tools for state regulators to explore these issues.

The association and committee resolved to strongly encourage continued collaboration among all stakeholders, specifically education on whether expedited pipeline reviews are appropriate and if a toolkit for sharing information and training needs to be developed.

NARUC and its Gas Committee also work closely on pipeline safety not only with PHMSA but also the National Association of Pipeline Safety Representatives, according to the second resolution. "With federal mandates affecting state pipeline safety programs, there is an increasing need to maintain [such] programs and ensure access to timely and appropriate safety training," it said.

More than funding

Ensuring adequate and appropriate funding for states through the Federal Pipeline Safety Program is vital for state inspection activities that ensure the safety of existing and new pipelines, it pointed out.

"It is also about effective communication, enforcement, risk sharing, adequate resources (including funding and training), recognition of the need for flexibility based upon considerations that each state is different and the needs and financial circumstances of each utility system are unique, and establishing a long-range strategic plan that ensures a safe and reliable gas pipeline system," it said.

NARUC said it is in the interest of gas customers and residents of communities where pipeline exist, as well as the general public, to establish a more formal collaboration with PHMSA, NARUC, and NAPSR to facilitate the federal pipeline regulator's development of more effective safety rules.

About the Author

Nick Snow

NICK SNOW covered oil and gas in Washington for more than 30 years. He worked in several capacities for The Oil Daily and was founding editor of Petroleum Finance Week before joining OGJ as its Washington correspondent in September 2005 and becoming its full-time Washington editor in October 2007. He retired from OGJ in January 2020.