Douglas A. Sipe Outreach Manager Division of Gas-Environment and Engineering

1. Federal Energy Regulatory Commission Office of Energy Projects Land Agent Training IRWA Calgary, June 2010 Douglas A. Sipe Outreach Manager Division of Gas-Environment and Engineering

2. Who is FERC? FERC is an independent federal regulatory agency that: Regulates the interstate transmission of natural gas (siting & rates); electricity and oil (rates only); Reviews proposals to build interstate natural gas pipelines and liquefied natural gas (LNG) terminals, and natural gas storage fields Licenses and inspects non-federal hydropower projects FERC Office of Energy Projects

3. FERC FERC Organization Chart ChairmanJon Wellinghoff CommissionerPhilip D. Moeller Commissioner Cheryl LaFleur CommissionerMarc Spitzer CommissionerJohn R. Norris Energy Projects External Affairs Enforcement Electric Reliability General Counsel Secretary Energy Market Regulation Executive Director Energy Policy & Innovation Administrative Litigation Administrative Law Judges Office of Energy Projects

4. FERC’s Siting Authority Section 3 of the Natural Gas Act Determination of consistency with the public interest Section 7 of the Natural Gas Act Determination of public convenience and necessity Energy Policy Act of 2005 Assigns FERC exclusive siting authority—does not preempt other required federal authorizations Mandates use of Pre-Filing Process for LNG terminals Names FERC lead agency for NEPA review and coordinator of all federal authorizations FERC Office of Energy Projects

5. FERC INFRASTRUCTURE BOOM (Certificated in the last 10 years) • Pipelines • 106 Bcf/day of Capacity and 14,592 Miles • Storage Facilities • 870 Bcf of Capacity • LNG Facilities • 37 Bcf/day of Total Capacity Office of Energy Projects

6. FERC Land Agent Complaints/Training • What is FERC’s View? • Was the industry caught off guard? • How widespread is the issue? • Has the industry improved stakeholder relations? • Keeping up with Technology? • Why am I talking about this? Office of Energy Projects

7. Evolution Old School Right of Way Negotiations Environmental Regs Location…Location…Location Land Use Land/Water/Coastal Population Strong Communities The Last Mile/Demand Centers FERC Office of Energy Projects

8. Hello

9. FERC Heightened Public Interest • Congressional Interest Escalated Significantly • Increased calls to FERC’s Office of External Affairs and Office of Enforcement (Dispute Resolution Service) • Filed letters and calls to FERC PM’s/Management • * Change… landowner calls now being referred to the Dispute Resolution Service Office of Energy Projects

10. The Landowners’ Perspective

11. Changed the World FERC Office of Energy Projects

12. Complaints Trespass…Eminent Domain (State vs. Fed)…“It’s a Done Deal”…Trust/Truth…”FERC won’t let us move”…Damage to property from surveyors…Lack of info… Abrupt easement signing dates… Agreements not complied with…FERC caped the amount of compensation… Leaving property unsecured…Surveyors performing unscheduled work (ex. hurts hunting farms)…Multiple land agents…If they would do what they said they were going to do…etc FERC Office of Energy Projects

13. Face of Your Company Either Building or Hurting the Reputation of the Company Company Philosophy and Purpose Don’t just blame the LAND AGENT The effect on the FERC Process (What Schedule?) Industry Needs to Adopt a Standard Code of Ethics…You are all Painted with the Same Brush FERC Office of Energy Projects

14. Training Push Industry is strengthening overall training INGAA's Commitment to Landowners Eight Steps to build and maintain strong positive relations with landowners Ambassador Training IRWA Training Plan FERC Outreach Attend FERC Seminars FERC Office of Energy Projects

15. Expanding Outreach What is FERC Doing? State Outreach Initiative Open House Site Visits Scoping/Comment Meetings Improvements Local, State, and Federal Elected Officials Meetings Administrative Law Judge Hearings (Oregon) What's Next?????? FERC Office of Energy Projects

16. Project Team Know project details Explain the Process and “next steps” (e.g. surveys, compensation, construction, and eminent domain) Educate consumers on the NEED of the Project KNOW THE FERC PROCESS Recognize FERC’s Expectations and Role Educate Stakeholders how to become involved in the FERC process (FERC Brochure) FERC Office of Energy Projects

17. FERC Misc. Jurisdiction 2.55, Blanket, 7C, Section 3… Pre-Filing/Traditional Right-of-way acquisition concurrent with FERC review process Tension between market forces and pre-filing process Use of state-granted eminent domain Availability of workforce FERC Office of Energy Projects

18. FERC Calls to OEA/DRS How are landowner calls handled within FERC??? • OEP Liaison • Calls are communicated between offices • Two sides to every story • Log Communications • Resolve disputes in a timely manner Office of Energy Projects

19. FERC Industry Promotion • A Robust Stakeholder & Public Outreach Initiative • What is your Communication Plan? • What is the Industry Training Protocol? • How is the Industry Tailoring their Message? Office of Energy Projects

20. Questions? Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC 20426 FERC Douglas A. Sipe 202.502.8837 douglas.sipe@ferc.gov Office of Energy Projects