Federal Energy Regulatory Commission The Pre-Filing Process

1. Federal Energy Regulatory CommissionThe Pre-Filing Process IRWA/AI January 13-14, 2009

2. FERC Gas Program • Evaluate applications for facilities to import, export transport, store or exchange natural gas in interstate commerce • Authorize the construction and operation of facilities • Approve abandonment of facilities • Conduct environmental reviews of proposals involving construction, modification, or abandonment • Implement Pre-Filing Process • Conduct inspections of LNG facilities and pipeline construction

3. Phases of Project Review • Project Preparation • The applicant working on its own • Pre-Filing • FERC staff working with the applicant and stakeholders before the filing of an application • Application Review • FERC staff working with the applicant and stakeholders after the filing of an application • Post-Authorization • FERC staff working with the applicant and stakeholders to ensure compliance with conditions to the FERC approval

4. The Pre-Filing Process • Voluntary for pipelines, required for LNG facilities • Used for projects requiring an EIS, or an EA where controversy is likely • Normally requires the applicant to hire and fund a contractor to prepare EA/EIS • Staff selects contractor from list of three provided by the applicant • Contractor works solely under Staff’s direction

5. Pre-Filing Requirements • Project sponsor selects site, pipeline routes and begins surveys and studies • Meet with staff regarding proposed project • Submit draft RFP for 3rd-party contract and draft PF request for staff review • File PF request • Complete at least 6 months of PF review

6. Goals of the Pre-Filing Process • Early identification and resolution of environmental issues • More direct interaction between FERC staff and stakeholders • Interactive, concurrent NEPA/permitting process, no shortcuts • FERC staff are advocates of the Process, not the Project! • Goal of “no surprises” when application is filed

7. Identify affected parties: landowners agencies other stakeholders Facilitate identification of issues Identify study needs Facilitate resolution of issues Issue scoping notice Examine alternatives Arrange and attend site visits and meetings Initiate preparation of preliminary NEPA document Review draft resource reports FERC Staff Pre-Filing Activities

8. Public InvolvementDuring Pre-Filing Review The FERC Process • Project Sponsor Sends Landowner Notification Package • Issue Notice of Intent to Prepare the NEPA Document (i.e., scoping) • Hold Scoping Meetings Public Input • Contact the project sponsor w/questions, concerns; contact FERC • Send letters expressing concerns about environmental impact • Attend scoping meetings

9. General Project Description Water Use & Quality Fish, Wildlife & Vegetation Cultural Resources Socioeconomics Geological Resources Soils Land Use, Recreation, & Aesthetics Air & Noise Quality Alternatives Reliability & Safety PCB Contamination (for pipelines only) LNG Engineering & Design Details The Environmental Report(13 Resource Reports)

10. Public InvolvementDuring Application Review Public Input • File an Intervention; register for e-subscription • File comments on the adequacy of DEIS • Attend public meetings to give comments on DEIS • Interveners can file a request for rehearing of the Commission Order The FERC Process • Issue Notice of the Application • Issue Notice of Availability of the DEIS • Hold Public Meetings on DEIS • Issue a Commission Order

11. Timelines: Traditional vs. Pre-Filing Process Develop Study Corridor Prepare Resource Reports File At FERC Traditional – Applicant Activities Conduct Scoping (length of study period determined by the Applicant) Review Resource Reports & Analyze Project Issue Draft EIS Issue Final EIS Issue Order Traditional – FERC Activities Prepare Resource Reports File At FERC Develop Study Corridor Pre-Filing – Applicant Activities Approve PF Request (at least 6 mos. before filing) Conduct Scoping & Direct Preparation of Resource Reports Analyze Project Issue Draft EIS Issue Final EIS Issue Order Pre-Filing – FERC Activities -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 (months)

12. Successes • The Pre-filing process is the norm • Increased agency acceptance of and participation in the Pre-filing process • Smaller projects are being filed and approved quicker (using both the Pre-filing and Traditional processes • Other agencies are adopting similar review strategies

13. The Real Worldof Pre-Filing • The Pre-filing Process is not always being used as intended • Agency consultations are not occurring during Pre-filing or pre-certificate stages • Site-specific issues are not being identified and resolved • The number of recommendations in environmental documents is increasing instead of decreasing • Result—delays in the start of construction

14. Make better use of the PF process Deal openly with landowners Engage elected officials In other words—resolve the issues before they become problems Stopping the Pendulum

15. Working Togetherfor Solutions • Industry Efforts • Commitment to Landowners • Issues with shared corridors • Re-establish a regular dialogue between FERC staff and the industry • Industry needs to educate consumers on impact of new natural gas supplies on our way of life • FERC staff want to be part of the solution

16. Contact Information Lauren H. O’Donnell, Director Div. of Gas – Environment & Engineering 202-502-8325 lauren.odonnell@ferc.gov