Federal regulators say they, not states, have say over approving gas terminals - March 28, 2004

Providing coverage of Alaska and northern Canada's oil and gas industryMarch 2004

Vol. 9, No. 13

Week of March 28, 2004

Federal regulators say they, not states, have say over approving gas terminals

The Associated Press

Regulators on March 24 rejected arguments by California that states and the federal government have authority over approving liquefied natural gas facilities. The Federal Energy Regulatory Commission said the federal government has sole jurisdiction over siting and construction of the terminals. The California Public Utilities Commission had argued that companies seeking to build an LNG terminal at the Port of Long Beach must submit an application to the state as well as to the federal agency.

The issue of jurisdiction over LNG terminals — including siting decisions and environmental impact reviews — is expected to grow in importance in the coming years. There are nearly 30 proposals for LNG facilities in various stages of development.

FERC Chairman Pat Wood emphasized that the agency would work with state and local officials in considering such proposals. He also urged companies seeking approval for such facilities to do their “local homework first” before submitting an application to FERC, said an agency spokeswoman.

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