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RCA looks at regulating pipelines by size
The Regulatory Commission of Alaska has opened a docket, R-05-11, to consider whether it should establish two or more classes of pipelines and the requirements that it should prescribe for each class.
The commission said in a Dec. 2 order that it recognizes “that the cost of regulation can be prohibitive for small, producer-owned pipelines and that full regulation of small pipelines could discourage exploration and development of Alaska’s resources.”
The commission said it should consider simplified regulation “if current regulation is unduly burdensome and adversely affects the development of Alaska’s oil and gas resources.” The commission said it also “must balance the need for such regulatory change with the public interest in open access to pipelines and reasonable transportation rates.” Can regulatory burden be eased? The commission said it decided to open the docket at its Nov. 4 public meeting and said its focus is on whether it can ease the regulatory burden for “small, producer-owned pipelines that ship only the producer’s products, while still adequately protecting the interests of unaffiliated producers, end-users and the public.”
Comments on whether the commission should establish two or more classes of pipelines, and the reporting, accounting and other regulatory requirements for each category, are due Jan. 13, with reply comments due Jan. 27. The commission said it is also interested in hearing “how implementation of comments will encourage development, provide cost-effective regulation, provide open access to pipelines, and allow for reasonable transportation rates while protecting the public interest.”
—Petroleum News
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