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FERC and the Development of an Alaska Natural Gas Pipeline

Learn about the comprehensive regulations, open season provisions, and FERC processes governing the development of the Alaska Natural Gas Pipeline. Explore the timeline, environmental review process, and key activities involved in this significant energy project.

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FERC and the Development of an Alaska Natural Gas Pipeline

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  1. FERC and the Development of an Alaska Natural Gas Pipeline Robert J. Cupina, Deputy Director Office of Energy Projects Federal Energy Regulatory Commission September 19, 2005

  2. Alaska Natural GasPipeline ActOpen Season Provisions Applies to any initial or voluntary expansion capacity on any Alaskan natural gas transportation project.

  3. Alaska Natural GasPipeline ActOpen Season Provisions • Regulations to be issued 120 days after passage • Must cover procedures for the allocation of capacity and timing of any open seasons

  4. Alaska Natural GasPipeline ActOpen Season Provisions • Must promote competition in the, development of Alaskan natural gas • Expansion open seasons must allow for transportation of natural gas from other production areas.

  5. Alaska Natural GasPipeline ActOpen Season Provisions • Open season provisions were finalized in Order No. 2005, on February 9, 2005 • Rehearing on open season provisions were considered in Order No. 2005-A, issued on June 1, 2005

  6. Alaska Pipeline Capacity Allocation Process Allocations Challenged/ Contracts Signed Open Season Ends FERC Review of Open Season Plans Application Filed at FERC Open Season Begins Capacity Allocations Announced -12 -11 -10 -9 -8 -7 - 6 - 5 - 4 - 3 - 2 - 1 0 Months

  7. Open Season Processin NOPR • No advance notice • Open season held for 90 days after 90 day prior notice period • Capacity awarded • Contracts signed • Application filed

  8. Open SeasonPolicy Considerations • Balance encouragement of project construction with fair and open competition • Rebuttable presumption for rolled-in rate treatment of costs of expansions • Balance appropriate oversight with letting market forces work

  9. Alaska Natural GasPipeline Act FERC Process Under Section 103 or 110 • Retains NGA duties • Issues open season regs in 120 days • Establishes rates, terms and conditions of tariff • May approve or require future expansion • May provide access to Alaska royalty gas • Cooperate with Federal Coordinator and other agencies

  10. Alaska Natural GasPipeline ActFERCProcess Under Section 110 • Review previous certificate; determine level of info needed to satisfy terms and conditions • Change previous certificate, as needed • Issue final order, no timeframe • Lead agency determined by DOE Secretary

  11. Alaska Natural GasPipeline ActFERCProcess Under Section 103 • Normal review process with 2 exceptions: • Presumption of public need • Presumption of adequate downstream capacity • “Over-the-top” route prohibited • Lead agency for NEPA review • Issue DEIS 12 months after application • Issue FEIS 6 months after DEIS

  12. Environmental Review Process for a Section 103 Project Review Draft Resource Reports Complete Application Filed Approve Pre-Filing Request Evaluation of Application Public Scoping, Community Outreach, and Native Alaskan Consultation -18 -12 MONTHS -60 Issue Draft EIS Issue Final EIS Complete Application Filed Receive and Respond to Comments Final Order Analysis and Documentation 0 6 MONTHS 12 18 20

  13. Pre-Filing Process • About 18 months from Green Light to Complete Application • Two field seasons • Parallel Activities of Staff and Sponsor

  14. Pre-Filing Process • FERC Staff Activity • Route recognizance • Community outreach and public scoping • Native Alaskan consultation • Identify issues and resolve conflicts

  15. Pre-Filing Process • Project Sponsor Activity • Stakeholder identification • Open Houses • Route studies and field surveys • Prepare FERC and other permit applications

  16. Application Review • Verify and Document Data • Coordinate Agency Analyses • Develop Mitigation • Issue Draft and Final EIS

  17. Post-CertificationActivities • Two to three years of preparation prior to construction • Financing • Fabrication of Equipment and Supplies • Two to three years for construction • Primarily winter construction

  18. Activities to Date • Memoranda of Understanding (MOU) • FERC and National Energy Board of Canada (5/10/04) • FERC and Regulatory Commission of Alaska (1/24/03) • Under development with DOE, DOI, and 11 other federal agencies

  19. Activities to Date • Toured the pipeline route and met with stakeholders. • Meetings with U.S. federal, state, and Canadian agencies

  20. Alaska Gasline Port AuthorityLNG Project • 800 mile, 48” pipeline parallel to TAPS route from Prudhoe Bay to Valdez • 125 mile lateral line for deliveries to South Central and Kenai areas • Liquefaction plant/terminal in Valdez • Destination: West Coast regas terminals in Canada, Lower 48 or Mexico • FERC implications: • Yukon Pacific 1995 authorization for export terminal • TAGS line would require certificate

  21. Alaska Pipeline Construction Timeline – Example Case Obtain permits, Purchase pipe, compressors, etc. Staging of camps, bridges, roads, and delivery of pipe 18-Month Pre-Filing Process Begins In service Application filed FERC Order Stranded Gas Act award EIS Construction Jun ‘09 Dec’05 Mar ‘06 Jun ‘06 Sep ‘06 Dec ‘07 Aug ‘09 Aug ‘10 Aug ‘12 Aug ‘15 Aug ‘16 End of open season process About 1 year to produce and treat gas and fill the pipeline Preparation time assumes the producer’s 52” pipe Beginning of open season process Timeline assumes Canada completes permitting within same timeframe.

  22. US Natural Gas Balance

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