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

Douglas A. SipeDouglas A. Sipe Outreach ManagerOutreach Manager

Division ofDivision ofGas-Environment and Gas-Environment and

EngineeringEngineering

Federal Energy Regulatory Federal Energy Regulatory CommissionCommission

Office of Energy ProjectsOffice of Energy Projects

Land Agent TrainingLand Agent TrainingIRWA IRWA

Calgary, June 2010Calgary, June 2010

Who is FERC?Who is FERC?

FERC is an independent federal regulatory agency FERC is an independent federal regulatory agency

that: that:

Regulates the interstate transmission of natural Regulates the interstate transmission of natural

gas (siting & rates); electricity and oil (rates only);gas (siting & rates); electricity and oil (rates only);

Reviews proposals to build interstate natural gas Reviews proposals to build interstate natural gas

pipelines and liquefied natural gas (LNG) pipelines and liquefied natural gas (LNG)

terminals, and natural gas storage fields terminals, and natural gas storage fields

Licenses and inspects non-federal hydropower Licenses and inspects non-federal hydropower

projectsprojects

Office of Energy Office of Energy ProjectsProjects

FERCFERC

FERC Organization ChartFERC Organization ChartFERCFERC


Chairman Jon Wellinghoff

Commissioner John R. Norris

Commissioner Philip D. Moeller

Commissioner Marc Spitzer

Commissioner

Cheryl LaFleur

Energy Energy ProjectsProjects

Electric Electric ReliabilityReliability

External External AffairsAffairs

Energy Market Energy Market RegulationRegulation

EnforcementEnforcement

Energy Policy & Energy Policy & InnovationInnovation

Administrative Administrative LitigationLitigation

Administrative Administrative Law JudgesLaw Judges

Executive Executive DirectorDirector

General General CounselCounsel

SecretarySecretary

FERC’s Siting AuthorityFERC’s Siting Authority

Section 3 of the Natural Gas ActSection 3 of the Natural Gas Act Determination of consistency with the public interestDetermination of consistency with the public interest

Section 7 of the Natural Gas ActSection 7 of the Natural Gas Act Determination of public convenience and necessityDetermination of public convenience and necessity

Energy Policy Act of 2005Energy Policy Act of 2005 Assigns FERC exclusive siting authority—does not Assigns FERC exclusive siting authority—does not

preempt other required federal authorizationspreempt other required federal authorizations Mandates use of Pre-Filing Process for LNG terminalsMandates use of Pre-Filing Process for LNG terminals Names FERC lead agency for NEPA review and Names FERC lead agency for NEPA review and

coordinator of all federal authorizationscoordinator of all federal authorizations

FERCFERC


INFRASTRUCTURE INFRASTRUCTURE BOOM BOOM

(Certificated in the last 10 years)(Certificated in the last 10 years)

Pipelines Pipelines 106 Bcf/day of Capacity and 14,592 Miles106 Bcf/day of Capacity and 14,592 Miles

Storage FacilitiesStorage Facilities 870 Bcf of Capacity870 Bcf of Capacity

LNG FacilitiesLNG Facilities 37 Bcf/day of Total Capacity37 Bcf/day of Total Capacity

FERCFERC


Land Agent Land Agent Complaints/TraininComplaints/Trainin

gg

What is FERC’s View?What is FERC’s View?Was the industry caught off guard?Was the industry caught off guard?How widespread is the issue?How widespread is the issue?Has the industry improved stakeholder relations?Has the industry improved stakeholder relations?Keeping up with Technology?Keeping up with Technology?Why am I talking about this?Why am I talking about this?

FERCFERC


EvolutionEvolution

Old SchoolOld School Right of Way NegotiationsRight of Way Negotiations

Environmental RegsEnvironmental Regs Location…Location…LocationLocation…Location…Location Land UseLand Use

Land/Water/CoastalLand/Water/Coastal PopulationPopulation

Strong CommunitiesStrong Communities The Last Mile/Demand CentersThe Last Mile/Demand Centers

FERCFERC


HelloHello

Heightened Heightened Public InterestPublic Interest

Congressional Interest Escalated SignificantlyCongressional Interest Escalated Significantly Increased calls to FERC’s Office of External Affairs Increased calls to FERC’s Office of External Affairs

and Office of Enforcement (Dispute Resolution and Office of Enforcement (Dispute Resolution Service) Service)

Filed letters and calls to FERC PM’s/ManagementFiled letters and calls to FERC PM’s/Management* Change… landowner calls now being * Change… landowner calls now being

referred to the Dispute Resolution Servicereferred to the Dispute Resolution Service

FERFERCC


The Landowners’ The Landowners’ PerspectivePerspective

Changed the WorldChanged the World

FERCFERC


ComplaintsComplaints

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

FERCFERC


Face of Your CompanyFace 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 Industry Needs to Adopt a Standard Code of Ethics…You are all Painted with the Same BrushEthics…You are all Painted with the Same Brush

FERCFERC


Training PushTraining Push

Industry is strengthening overall trainingIndustry is strengthening overall training INGAA's Commitment to LandownersINGAA's Commitment to Landowners

• Eight Steps to build and maintain strong Eight Steps to build and maintain strong positive relations with landownerspositive relations with landowners

Ambassador TrainingAmbassador Training IRWA Training PlanIRWA Training Plan

FERC OutreachFERC Outreach Attend FERC SeminarsAttend FERC Seminars

FERCFERC


Expanding OutreachExpanding Outreach

What is FERC Doing? State Outreach InitiativeState Outreach Initiative Open HouseOpen House Site VisitsSite Visits Scoping/Comment Meetings ImprovementsScoping/Comment Meetings Improvements Local, State, and Federal Elected Officials Local, State, and Federal Elected Officials

MeetingsMeetings Administrative Law Judge Hearings (Oregon)Administrative Law Judge Hearings (Oregon) What's Next??????What's Next??????

FERCFERC


Project TeamProject 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)

FERCFERC


FERC Misc.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

FERCFERC


Calls to OEA/DRSCalls to OEA/DRS

How are landowner calls handled within How are landowner calls handled within FERC???FERC???

OEP LiaisonOEP LiaisonCalls are communicated between officesCalls are communicated between officesTwo sides to every storyTwo sides to every storyLog CommunicationsLog CommunicationsResolve disputes in a timely mannerResolve disputes in a timely manner

FERFERCC


Industry PromotionIndustry Promotion

A Robust Stakeholder & Public Outreach InitiativeA Robust Stakeholder & Public Outreach InitiativeWhat is your Communication Plan?What is your Communication Plan?What is the Industry Training Protocol?What is the Industry Training Protocol?

How is the Industry Tailoring their Message?How is the Industry Tailoring their Message?

FERFERCC


Questions?Questions?

Federal Energy Regulatory CommissionFederal Energy Regulatory Commission

888 First Street, N.E.888 First Street, N.E.

Washington, DC 20426Washington, DC 20426

FERCFERC


Douglas A. SipeDouglas A. Sipe

202.502.8837202.502.8837

[email protected]@ferc.govv

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

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