Limiting Authorizations To Proceed With Construction Activities Pending Rehearing, 40113-40116 [2020-13015]
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Federal Register / Vol. 85, No. 129 / Monday, July 6, 2020 / Rules and Regulations
(5) Instead of complying with NOTE
11 of ASTM F1004–19, comply with the
following:
(i) Note 11—Address means that
verbiage other than what is shown can
be used as long as the meaning is the
same or information that is product
specific is presented. Brackets indicate
that optional wording may be used at
the manufacturer’s discretion if another
identifier is more appropriate.
(ii) [Reserved]
(6) Do not comply with section 8.5.3
of ASTM F1004–19.
(7) Add the following paragraphs to
section 8.5 of ASTM F1004–19:
(i) 8.5.8 Pressure-mounted gates that
provide wall cups or other mounting
hardware to meet the requirements of
section 6.3 shall have the following
warning in the location specified: You
MUST install [wall cups] to keep gate in
place. Without [wall cups], child can
push out and escape.
(ii) 8.5.8.1 This warning shall be
separate from all other warnings
required on the product and shall not
include any additional language.
(iii) 8.5.8.2 This warning shall be on
the top rail.
(iv) 8.5.8.3 This warning shall be as
close as possible to the side of the
product where the locking mechanism
is located. If the locking mechanism is
in the center of the product, then this
warning shall be adjacent to the
mechanism on either side of it.
(8) Add the following paragraph to
section 9 of ASTM F1004–19:
(i) 9.5. For pressure-mounted gates
with visual side-pressure indicators, the
instructions shall describe the function,
use, and importance of the visual sidepressure indicators and shall describe
how to make adjustments to meet the
side-pressure requirements. Instructions
shall include a reminder to routinely
check the status of the side pressure
indicators during ongoing use of gate.
(ii) [Reserved]
(9) Add the following paragraph to
section X1.2.5 of ASTM F1004–19:
(i) X1.2.5.4 The visual side-pressure
indicators requirement in 6.8 is to
address incidents with pressuremounted gates, where consumers had
difficulty properly installing the gate or
uncertainty in the security of the gate,
which may lead to the gate being
‘‘pushed out,’’ ‘‘pulled down,’’ or
‘‘knocked over’’ by children.
(ii) [Reserved]
Alberta E. Mills,
Secretary, Consumer Product Safety
Commission.
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Parts 153 and 157
[Docket No. RM20–15–000; Order No. 871]
Limiting Authorizations To Proceed
With Construction Activities Pending
Rehearing
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Final rule.
AGENCY:
The Federal Energy
Regulatory Commission (Commission)
issues this final rule to amend its
regulations to preclude the issuance of
authorizations to proceed with
construction activities with respect to
natural gas facilities authorized by order
issued pursuant to section 3 or section
7 of the Natural Gas Act until either the
time for filing a request for rehearing of
such order has passed with no rehearing
request being filed or the Commission
has acted on the merits of any rehearing
request.
DATES: This rule is effective August 5,
2020.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Tara DiJohn, Office of the General
Counsel, Federal Energy Regulatory
Commission, 888 First Street NE,
Washington, DC 20426, (202) 502–
8671, tara.dijohn@ferc.gov.
SUPPLEMENTARY INFORMATION:
I. Introduction
1. By this final rule, the Federal
Energy Regulatory Commission
(Commission or agency) is revising its
regulations to preclude the issuance of
authorizations to proceed with
construction activities with respect to a
Natural Gas Act (NGA) section 3
authorization or section 7(c) certificate
order until the Commission acts on the
merits of any timely-filed request for
rehearing or the time for filing such a
request has passed. This rule ensures
that construction of an approved natural
gas project will not commence until the
Commission has acted upon the merits
of any request for rehearing. The rule
imposes no new obligations on the
public.
II. Background
2. The NGA vests the Commission
with jurisdiction over the transportation
and wholesale sale of natural gas in
interstate commerce.1 To meet these
aims, the NGA declares that ‘‘the
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40113
business of transporting and selling
natural gas for ultimate distribution to
the public is affected with [the] public
interest.’’ 2
3. Before a company can construct a
natural gas pipeline, it must obtain
approval from the Commission under
NGA section 7(e), which provides that
the Commission ‘‘shall’’ issue a
certificate if it determines that a
proposed pipeline ‘‘is or will be
required by the present or future public
convenience and necessity.’’ 3
4. If the Commission grants a
certificate of public convenience and
necessity, the NGA authorizes the
certificate holder to exercise eminent
domain authority if it ‘‘cannot acquire
by contract, or is unable to agree with
the owner of property to the
compensation to be paid for, the
necessary right-of-way to construct,
operate, and maintain a pipe line or
pipe lines for the transportation of
natural gas[.]’’ 4
5. Separately, NGA section 3 prohibits
the import or export of natural gas
between the United States and a foreign
nation without ‘‘first having secured an
order of the Commission authorizing it
to do so.’’ 5 NGA section 3 authority is
divided between the Department of
Energy, which oversees the import or
export of the natural gas commodity,6
and the Commission, which oversees
the siting, construction, and operation
of import or export facilities.7 The
Commission ‘‘shall’’ authorize proposed
import or export facilities unless it finds
that construction and operation of the
proposed facilities ‘‘will not be
consistent with the public interest.’’ 8
Unlike section 7, section 3 does not
provide for the acquisition of lands
through eminent domain.
6. Pursuant to the NGA, the
Commission can approve a proposed
2 Id.
3 Id.
717f(e).
717f(h). The NGA specifies that any such
condemnation proceedings shall take place in the
federal court for the district in which the property
is located or in the relevant state court.
5 15 U.S.C. 717b.
6 Id. 717b(a)–(c). In 1977, Congress transferred the
regulatory functions of NGA section 3 from the
Federal Power Commission to the Department of
Energy. 42 U.S.C. 7151(b) (Department of Energy
Organization Act). The Department of Energy
delegated back to the newly created Federal Energy
Regulatory Commission the limited authority under
NGA section 3(e) to approve the physical facilities.
15 U.S.C. 717b(e).
7 15 U.S.C. 717b(e). See DOE Delegation Order
No. 00–004.00A (effective May 16, 2006) (renewing
delegation to the Commission authority over the
construction and operation of LNG facilities); see
also 43 FR 47,769, 47,772 (Oct. 17, 1978) (1978
delegation); 42 U.S.C. 7172(e) (Commission
authority includes any matter assigned by the
Department).
8 15 U.S.C. 717b(a).
4 Id.
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Federal Register / Vol. 85, No. 129 / Monday, July 6, 2020 / Rules and Regulations
project subject to ‘‘such reasonable
terms and conditions as the public
convenience and necessity may
require.’’ 9 The certificate orders
typically include conditions a company
must meet before construction or
operation of the project may begin, and
typically provide that a company must
receive written authorization from the
Director of the Office of Energy Projects
(or the Director’s designee) before
commencing construction of any project
facilities.10 The purpose of requiring a
written request for authorization to
commence with construction activities
(often referred to as a notice to proceed)
is not to reexamine the underlying
Commission order; rather, it is to ensure
that the Commission’s preconstruction
requirements have been met.
III. Discussion
7. In recent years, the Commission’s
NGA sections 3 and 7 proceedings have
seen increased interest and participation
by stakeholders, such as landowners,
community members, non-governmental
organizations, property rights advocates,
and governmental entities, who have
raised concerns about proposed
projects. The Commission’s order
granting an authorization under section
3 and/or section 7 fully considers all
stakeholder concerns raised during the
proceeding.
8. If a party is dissatisfied with the
Commission’s NGA section 3
authorization or section 7 certificate
determination, it may apply for
rehearing.11 The application must ‘‘set
forth specifically’’ the grounds for
rehearing.12 On rehearing, the
Commission is authorized to ‘‘grant or
deny’’ the request, ‘‘or to abrogate or
modify its order[.]’’ 13 ‘‘Unless the
Commission acts upon the application
for rehearing within thirty days after it
is filed, such application may be
deemed to have been denied.’’ 14 Often,
because of the complex nature of the
matters raised, the Commission issues
an order (known as a tolling order) by
the thirtieth day following the filing of
a rehearing request, in order to allow
9 Id.
717f(e).
e.g., Florida Gas Transmission Co., LLC,
170 FERC ¶ 61,200, 62,335 (2020) (Environmental
Condition 9 requires Florida Gas to ‘‘receive written
authorization from the Director of OEP before
commencing construction of any project facilities.
To obtain such authorization, Florida Gas must file
with the Secretary documentation that it has
received all applicable authorizations required
under federal law (or evidence of waiver thereof)’’);
Gulf South Pipeline Co., LP, 170 FERC ¶ 61,201,
62,348 (2020) (same).
11 15 U.S.C. 717r(a).
12 Id.
13 Id.
14 Id.
10 See,
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additional time for the Commission to
provide thoughtful, well-considered
attention to the issues raised on
rehearing.15
9. The rehearing process serves as a
mechanism for the Commission to
carefully consider the arguments
presented, in order to resolve disputes
or bring its expertise to bear on
complex, technical matters before they
are potentially presented to the courts.
The Commission balances the interests
of numerous stakeholders and renders
decisions that address challenging
technical, economic, and environmental
matters, as well as complex legal issues.
This takes time. Only after resolving
these ‘‘difficult problems’’ 16 does the
Commission issue an order on the
merits of a rehearing request.
10. Once the Commission issues an
order on the merits of a rehearing
request, a party may seek judicial
review of the Commission’s order. An
application for agency rehearing is a
prerequisite to judicial review, and only
those objections raised on rehearing
may be presented to the court of
appeals.17 Congress specified that an
application for rehearing ‘‘shall not,
unless specifically ordered by the
Commission, operate as a stay of the
Commission’s order.’’ 18 Thus, following
issuance of an NGA section 7 certificate
or section 3 authorization, a project
sponsor may request that the
Commission authorize construction
while rehearing is pending.
11. In order to balance our
commitment to expeditiously respond
to parties’ concerns in comprehensive
orders on rehearing and the serious
concerns posed by the possibility of
construction proceeding prior to the
completion of Commission review, we
are exercising our discretion to adopt a
new regulation that precludes the
issuance of authorizations to proceed
with construction of projects authorized
under NGA sections 3 and 7 while
rehearing of the initial orders is
pending. This rule ensures that
construction of an approved natural gas
15 See, e.g., Cal. Co. v. FPC, 411 F.2d 720, 721 (DC
Cir. 1969); Kokajko v. FERC, 837 F.2d 524, 525 (1st
Cir. 1988) (‘‘The statutory language, . . . although
requiring FERC to ‘act’ upon the application for
rehearing within thirty days after filing, lest the
application is deemed denied, does not state . . .
that FERC must ‘act on the merits’ within that time
lest the application is deemed denied.’’); Gen. Am.
Oil Co. of Tex. v. FPC, 409 F.2d 597, 599 (5th Cir.
1969); Berkley v. Mountain Valley Pipeline, LLC,
896 F.3d 624, 631 (4th Cir. 2018); see also Del.
Riverkeeper Network v. FERC, 895 F.3d 102, 113
(D.C. Cir. 2018) (rejecting a due process challenge
to Commission tolling orders).
16 FPC v. Colo. Interstate Gas Co., 348 U.S. 492,
501 (1955).
17 15 U.S.C. 717r(b).
18 Id. 717r(c).
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project will not commence until the
Commission has acted upon the merits
of any request for rehearing, regardless
of land ownership.
12. This final rule adds to our
regulations new § 157.23, which
provides that:
With respect to orders issued
pursuant to 15 U.S.C. 717b or 15 U.S.C.
717f(c) authorizing the construction of
new natural gas transportation, export,
or import facilities, no authorization to
proceed with construction activities will
be issued:
(a) Until the time for the filing of a
request for rehearing under 15 U.S.C.
717r(a) has expired with no such
request being filed, or
(b) if a timely request for rehearing is
filed, until the Commission has acted
upon the merits of that request.
13. In addition, we are revising
§ 153.4 of our regulations to incorporate
a cross-reference to new § 157.23.
IV. Information Collection Statement
14. The Paperwork Reduction Act 19
requires each federal agency to seek and
obtain the Office of Management and
Budget’s (OMB) approval before
undertaking a collection of information
(i.e., reporting, recordkeeping, or public
disclosure requirements) directed to ten
or more persons or contained in a rule
of general applicability. OMB
regulations require approval of certain
information collection requirements
contained in final rules published in the
Federal Register.20 This final rule does
not contain any information collection
requirements. The Commission is
therefore not required to submit this
rule to OMB for review.
V. Environmental Analysis
15. The Commission is required to
prepare an Environmental Assessment
or an Environmental Impact Statement
for any action that may have a
significant effect on the human
environment.21 The Commission has
categorically excluded certain actions
from this requirement as not having a
significant effect on the human
environment, including the
promulgation of rules that are clarifying,
corrective, or procedural, or that do not
substantially change the effect of
legislation or the regulations being
amended.22 This final rule disallows the
issuance of authorizations to proceed
with construction activities until the
Commission acts on the merits of any
19 44
U.S.C. 3501–3521.
5 CFR 1320.12.
21 Regulations Implementing the National
Environmental Policy Act of 1969, Order No. 486,
41 FERC ¶ 61,284 (1987).
22 18 CFR 380.4(a)(2)(ii).
20 See
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request for rehearing of an NGA section
3 authorization or section 7(c) certificate
order. Because this final rule is
procedural in nature, preparation of an
Environmental Assessment or an
Environmental Impact Statement is not
required.
VI. Regulatory Flexibility Act
16. The Regulatory Flexibility Act of
1980 (RFA) 23 generally requires a
description and analysis of final rules
that will have significant economic
impact on a substantial number of small
entities. However, final rules
promulgated without the publication of
a general notice of proposed rulemaking
under section 553 of the Administrative
Procedure Act (APA) are exempt from
the RFA’s requirements.24 Pursuant to
section 553(b)(3)(A) of the APA, ‘‘rules
of agency organization, procedure, or
practice’’ may be published without
general notice of proposed
rulemaking.25 Because this rule
concerns only matters of agency
procedure—specifically, the
Commission’s internal processes and
procedure for issuing authorizations to
proceed with construction activities
under an NGA section 3 authorization
or an NGA section 7(c) certificate order,
the APA’s public notice and comment
procedures do not apply. Accordingly,
this final rule is exempt from the
requirements of the RFA.
VII. Document Availability
17. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
view and/or print the contents of this
document via the internet through
FERC’s Home Page (https://
www.ferc.gov). At this time, the
Commission has suspended access to
the Commission’s Public Reference
Room due to the President’s March 13,
2020 proclamation declaring a National
Emergency concerning the Novel
Coronavirus Disease (COVID–19).
18. From FERC’s Home Page on the
internet, this information is available on
eLibrary. The full text of this document
is available on eLibrary in PDF and
Microsoft Word format for viewing,
printing, and/or downloading. To access
this document in eLibrary, type the
docket number excluding the last three
digits of this document in the docket
number field.
19. User assistance is available for
eLibrary and the FERC’s website during
normal business hours from FERC
23 5
U.S.C. 601–612.
604(a).
25 Id. 553(b)(3)(A).
Online Support at 202–502–6652 (toll
free at 1–866–208–3676) or email at
ferconlinesupport@ferc.gov, or the
Public Reference Room at (202) 502–
8371. Email the Public Reference Room
at public.referenceroom@ferc.gov.
VIII. Effective Date
20. The Commission is issuing this
rule as a final rule without a period for
public comment. Public notice and
comment, otherwise required by 5
U.S.C. 553, do not apply to ‘‘rules of
agency organization, procedure, or
practice.’’ 26 This rule concerns only
matters of agency procedure, and will
not significantly affect regulated entities
or the general public.
21. This rule is effective August 5,
2020. As a matter of policy, however,
the Commission will not authorize
construction to proceed pending
rehearing during the period before this
rule becomes effective.
List of Subjects
18 CFR Part 153
Exports, Natural gas, Reporting and
recordkeeping requirements.
18 CFR Part 157
Administrative practice and
procedure, Natural gas, Reporting and
recordkeeping requirements.
By the Commission. Commissioner Glick is
concurring in part and dissenting in part
with a separate statement attached.
Issued June 9, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
In consideration of the foregoing, the
Commission is amending parts 153 and
157, chapter I, title 18, Code of Federal
Regulations, as follows:
PART 153—APPLICATIONS FOR
AUTHORIZATION TO CONSTRUCT,
OPERATE, OR MODIFY FACILITIES
USED FOR THE EXPORT OR IMPORT
OF NATURAL GAS
1. The authority citation for Part 153
continues to read as follows:
■
Authority: 15 U.S.C. 717b, 717o; E.O.
10485; 3 CFR, 1949–1953 Comp., p. 970, as
amended by E.O. 12038, 3 CFR, 1978 Comp.,
p. 136, DOE Delegation Order No. 0204–112,
49 FR 6684 (February 22, 1984).
■
2. Revise § 153.4 to read as follows:
§ 153.4
General requirements.
The procedures in §§ 157.5, 157.6,
157.8, 157.9, 157.10, 157.11, 157.12, and
157.23 of this chapter are applicable to
the applications described in this
subpart.
PART 157—APPLICATIONS FOR
CERTIFICATES OF PUBLIC
CONVENIENCE AND NECESSITY AND
FOR ORDERS PERMITTING AND
APPROVING ABANDONMENT UNDER
SECTION 7 OF THE NATURAL GAS
ACT
3. The authority citation for Part 157
continues to read as follows:
■
Authority: 15 U.S.C. 717–717w, 3301–
3432; 42 U.S.C. 7101–7352.
4. Add § 157.23 to subpart A to read
as follows:
■
§ 157.23 Authorizations to Proceed with
Construction Activities.
With respect to orders issued
pursuant to 15 U.S.C. 717b or 15 U.S.C.
717f(c) authorizing the construction of
new natural gas transportation, export,
or import facilities, no authorization to
proceed with construction activities will
be issued:
(a) Until the time for the filing of a
request for rehearing under 15 U.S.C.
717r(a) has expired with no such
request being filed, or
(b) If a timely request for rehearing is
filed, until the Commission has acted
upon the merits of that request.
The following will not appear in the
Code of Federal Regulations
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY
COMMISSION
Limiting Authorizations to Proceed with
Construction Activities Pending
Rehearing
Docket No. RM20–15–000
GLICK, Commissioner, concurring in
part and dissenting in part:
1. It is readily apparent that today’s
final rule attempts to address some of
the concerns raised in the Allegheny
Defense Project v. FERC proceeding
before the U.S. Court of Appeals for the
District of Columbia Circuit (D.C.
Circuit). In that proceeding, numerous
groups have objected to the
Commission’s practice of ‘‘tolling’’ for
months, or even years, requests for
rehearing of certificates issued pursuant
to § 7 of the Natural Gas Act,1 thereby
preventing landowners from seeking
judicial review, even while pipeline
developers are permitted to condemn
their land and start constructing a
pipeline. In her concurring opinion in
Allegheny Defense Project, Judge Millett
correctly characterized the
Commission’s practice as a ‘‘Kafkaesque
regime’’—one that allows ‘‘the
Commission [to] keep homeowners in
24 Id.
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seemingly endless administrative limbo
while energy companies plow ahead
seizing land and constructing the very
pipeline that the procedurally
handcuffed homeowners seek to stop.’’ 2
Now that the en banc D.C. Circuit has
heard oral argument on the legality of
this Kafkaesque regime, the Commission
is finally deciding to stop allowing
developers to begin constructing a
pipeline before the Commission’s
rehearing process is complete. That is a
step in the right direction.
2. Nevertheless, I dissent in part from
this final rule because it does nothing to
address the concern, articulated clearly
in Judge Millett’s concurrence, that a
pipeline developer should not be able to
begin the process of condemning private
land before the owners of that land can
go to court to challenge the certificate.
Eminent domain is among the most
significant actions that a government
may take with regard to an individual’s
private property.3 And the harm to an
individual from having his or her land
condemned is one that may never be
fully remedied, even in the event they
receive their constitutionally required
compensation.4 Bearing those basic facts
in mind, there is something
fundamentally unfair about a regulatory
regime that allows a private entity to
start the process of condemning an
individual’s land before the landowner
2 Allegheny Def. Project v. FERC, 932 F.3d 940,
948 (D.C. Cir.) (Millett, J., concurring), reh’g en banc
granted, judgment vacated, 943 F.3d 496 (D.C. Cir.
2019).
3 Cf. Dolan v. City of Tigard, 512 U.S. 374, 384
(1994) (observing that government action that
provides for ‘‘public access [to private property]
would deprive [the owner] of the right to exclude
others, ‘one of the most essential sticks in the
bundle of rights that are commonly characterized as
property.’’’) (quoting Kaiser Aetna v. United States,
444 U.S. 164, 176 (1979)); Loretto v. Teleprompter
Manhattan CATV Corp., 458 U.S. 419, 426 (1982)
(‘‘[W]e have long considered a physical intrusion by
government to be a property restriction of an
unusually serious character for purposes of the
Takings Clause.’’); Hendler v. United States, 952
F.2d 1364, 1374 (Fed. Cir. 1991) (‘‘In the bundle of
rights we call property, one of the most valued is
the right to sole and exclusive possession—the right
to exclude strangers, or for that matter friends, but
especially the Government.’’ (emphasis in the
original)).
4 See Kimball Laundry Co. v. United States, 338
U.S. 1, 5 (1949) (‘‘The value of property springs
from subjective needs and attitudes; its value to the
owner may therefore differ widely from its value to
the taker.’’); United Church of the Med. Ctr. v. Med.
Ctr. Comm’n, 689 F.2d 693, 701 (7th Cir. 1982) (‘‘It
is settled beyond the need for citation . . . that a
given piece of property is considered to be unique,
and its loss is always an irreparable injury.’’);
accord Richardson v. City & Cty. of Honolulu, 124
F.3d 1150, 1168 (9th Cir. 1997) (O’Scannlain, J.,
concurring in part and dissenting in part)
(‘‘Whether because of a sentimental attachment to
his property or a conviction that the property is
actually worth more than what the market will
currently bear, a landlord might choose not to sell,
even at the ‘fair market value.’’’).
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can go to court to contest the basis for
that condemnation action.
3. That concern was central to Judge
Millett’s concurrence in Allegheny
Defense Project. Throughout her
opinion, she touched on the profound
inequity of allowing a developer to
condemn land and construct a pipeline
while the opponents of that pipeline are
stuck in ‘‘administrative limbo’’ before
the Commission.5 I see nothing in her
opinion that suggests that the problem
created by the Commission’s abuse of
tolling orders is limited to the actual
construction of a pipeline. To the
contrary, Judge Millett pointed
repeatedly to the exercise of eminent
domain prior to rehearing as an example
of how the Commission’s use of tolling
orders ‘‘runs roughshod over basic
principles of fair process.’’ 6
4. And yet this final rule deals only
with construction without making any
effort to address the exercise of eminent
domain during that period when the
courthouse doors are closed to
landowners seeking to challenge the
certificate. That is a shame. And the
failure to do anything in that regard is
a striking contrast to the Commission’s
supposed concern for landowners.
Rather than remaining silent on this
situation, we ought to do everything in
our power to address it and ensure that
certificate holders are not permitted to
go to court before landowners.
5. To that end, I believe that we
should adopt a practice of
presumptively staying § 7 certificates 7
pending Commission action on the
merits of any timely filed requests for
rehearing.8 A practice along those lines
would help protect landowners from an
action seeking to condemn their
property by delaying the issuance of the
condition precedent for a condemnation
action pursuant to the NGA.9 Only then
5 Allegheny Def. Project, 932 F.3d at 948, 950,
952–53, 956 (Millett, J., concurring).
6 Id. at 950 (Millett, J., concurring).
7 Unlike § 7 of the NGA, § 3 does not convey
eminent domain authority. See Limiting
Authorizations to Proceed with Construction
Activities Pending Rehearing, 171 FERC ¶ 61,201, P
5 (2020). Accordingly, I do not believe it is
necessary to presumptively stay the Commission’s
§ 3 determinations. I do, however, agree with my
colleagues that it is appropriate to refrain from
issuing any notices to proceed with construction
under both § 3 and § 7 given the potential for
irreparable harm due to construction pursuant to
either provision of the NGA. See id. P 11.
8 Under such an approach, the Commission
could, in its discretion, lift the stay in response to
a showing from the pipeline developer that it is
necessary or appropriate to commence
condemnation proceedings prior to the Commission
acting on rehearing.
9 Multiple courts have contemplated a stay having
an effect along those lines. See, e.g., Mountain
Valley Pipeline, LLC v. An Easement to Construct,
Operate & Maintain a 42-inch Gas Transmission
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will we have addressed the most glaring
due process shortcomings associated
with the Commission’s use of tolling
orders in NGA certificate proceedings.
6. During my time at the Commission,
I have had the opportunity to meet with
many landowners who lost their
property rights through eminent domain
proceedings authorized by the NGA. It
is heartbreaking to hear their stories of
watching their land be condemned
while the Commission sat on rehearing
requests, leaving them helpless to
challenge the certificate, even as it was
used to seize their land. We should be
doing everything in our power to
prevent such a patently unfair result.
For these reasons, I respectfully
concur in part and dissent in part.
Richard Glick, Commissioner.
[FR Doc. 2020–13015 Filed 7–2–20; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 319
[Docket ID: DOD–2019–OS–0040]
RIN 0790–AK65
Defense Intelligence Agency Privacy
Program
AGENCY:
Defense Intelligence Agency,
DoD.
ACTION:
Final rule.
This final rule removes DoD’s
regulation concerning the Defense
Intelligence Agency (DIA) Privacy
Program. On April 11, 2019, the
Department of Defense published a
revised DoD-level Privacy Program rule,
which contains the necessary
information for an agency-wide privacy
program regulation under the Privacy
SUMMARY:
Line, No. 2:17–CV–04214, 2018 WL 1004745, at *5
(S.D.W. Va. Feb. 21, 2018) (‘‘The landowners insist
that the various challenges that Mountain Valley
faces before FERC and the courts of appeals counsel
against the granting of partial summary judgment.
As explained earlier, a FERC order remains in effect
unless FERC or a court of appeals issues a stay and
no such stay has been issued here.’’ (internal
citations omitted)); In re Algonquin Nat. Gas
Pipeline Eminent Domain Cases, No. 15–CV–5076,
2015 WL 10793423, at *7 (S.D.N.Y. Sept. 18, 2015)
(‘‘Here, various interested parties have filed
Requests for Rehearing with FERC but, absent a stay
by FERC, those Requests for Rehearing neither
prohibit these proceedings from going forward nor
affect Algonquin’s substantive right to condemn or
the need for immediate possession.’’); Tenn. Gas
Pipeline Co. v. 104 Acres of Land More or Less, in
Providence Cty. of State of R.I., 749 F. Supp. 427,
431 (D.R.I. 1990) (‘‘Because in this case the
Commission’s order has not been stayed,
condemnation pursuant to that order may
proceed.’’).
E:\FR\FM\06JYR1.SGM
06JYR1
Agencies
[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Rules and Regulations]
[Pages 40113-40116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13015]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 153 and 157
[Docket No. RM20-15-000; Order No. 871]
Limiting Authorizations To Proceed With Construction Activities
Pending Rehearing
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) issues
this final rule to amend its regulations to preclude the issuance of
authorizations to proceed with construction activities with respect to
natural gas facilities authorized by order issued pursuant to section 3
or section 7 of the Natural Gas Act until either the time for filing a
request for rehearing of such order has passed with no rehearing
request being filed or the Commission has acted on the merits of any
rehearing request.
DATES: This rule is effective August 5, 2020.
FOR FURTHER INFORMATION CONTACT:
Tara DiJohn, Office of the General Counsel, Federal Energy Regulatory
Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8671,
[email protected].
SUPPLEMENTARY INFORMATION:
I. Introduction
1. By this final rule, the Federal Energy Regulatory Commission
(Commission or agency) is revising its regulations to preclude the
issuance of authorizations to proceed with construction activities with
respect to a Natural Gas Act (NGA) section 3 authorization or section
7(c) certificate order until the Commission acts on the merits of any
timely-filed request for rehearing or the time for filing such a
request has passed. This rule ensures that construction of an approved
natural gas project will not commence until the Commission has acted
upon the merits of any request for rehearing. The rule imposes no new
obligations on the public.
II. Background
2. The NGA vests the Commission with jurisdiction over the
transportation and wholesale sale of natural gas in interstate
commerce.\1\ To meet these aims, the NGA declares that ``the business
of transporting and selling natural gas for ultimate distribution to
the public is affected with [the] public interest.'' \2\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 717(a).
\2\ Id.
---------------------------------------------------------------------------
3. Before a company can construct a natural gas pipeline, it must
obtain approval from the Commission under NGA section 7(e), which
provides that the Commission ``shall'' issue a certificate if it
determines that a proposed pipeline ``is or will be required by the
present or future public convenience and necessity.'' \3\
---------------------------------------------------------------------------
\3\ Id. 717f(e).
---------------------------------------------------------------------------
4. If the Commission grants a certificate of public convenience and
necessity, the NGA authorizes the certificate holder to exercise
eminent domain authority if it ``cannot acquire by contract, or is
unable to agree with the owner of property to the compensation to be
paid for, the necessary right-of-way to construct, operate, and
maintain a pipe line or pipe lines for the transportation of natural
gas[.]'' \4\
---------------------------------------------------------------------------
\4\ Id. 717f(h). The NGA specifies that any such condemnation
proceedings shall take place in the federal court for the district
in which the property is located or in the relevant state court.
---------------------------------------------------------------------------
5. Separately, NGA section 3 prohibits the import or export of
natural gas between the United States and a foreign nation without
``first having secured an order of the Commission authorizing it to do
so.'' \5\ NGA section 3 authority is divided between the Department of
Energy, which oversees the import or export of the natural gas
commodity,\6\ and the Commission, which oversees the siting,
construction, and operation of import or export facilities.\7\ The
Commission ``shall'' authorize proposed import or export facilities
unless it finds that construction and operation of the proposed
facilities ``will not be consistent with the public interest.'' \8\
Unlike section 7, section 3 does not provide for the acquisition of
lands through eminent domain.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 717b.
\6\ Id. 717b(a)-(c). In 1977, Congress transferred the
regulatory functions of NGA section 3 from the Federal Power
Commission to the Department of Energy. 42 U.S.C. 7151(b)
(Department of Energy Organization Act). The Department of Energy
delegated back to the newly created Federal Energy Regulatory
Commission the limited authority under NGA section 3(e) to approve
the physical facilities. 15 U.S.C. 717b(e).
\7\ 15 U.S.C. 717b(e). See DOE Delegation Order No. 00-004.00A
(effective May 16, 2006) (renewing delegation to the Commission
authority over the construction and operation of LNG facilities);
see also 43 FR 47,769, 47,772 (Oct. 17, 1978) (1978 delegation); 42
U.S.C. 7172(e) (Commission authority includes any matter assigned by
the Department).
\8\ 15 U.S.C. 717b(a).
---------------------------------------------------------------------------
6. Pursuant to the NGA, the Commission can approve a proposed
[[Page 40114]]
project subject to ``such reasonable terms and conditions as the public
convenience and necessity may require.'' \9\ The certificate orders
typically include conditions a company must meet before construction or
operation of the project may begin, and typically provide that a
company must receive written authorization from the Director of the
Office of Energy Projects (or the Director's designee) before
commencing construction of any project facilities.\10\ The purpose of
requiring a written request for authorization to commence with
construction activities (often referred to as a notice to proceed) is
not to reexamine the underlying Commission order; rather, it is to
ensure that the Commission's preconstruction requirements have been
met.
---------------------------------------------------------------------------
\9\ Id. 717f(e).
\10\ See, e.g., Florida Gas Transmission Co., LLC, 170 FERC ]
61,200, 62,335 (2020) (Environmental Condition 9 requires Florida
Gas to ``receive written authorization from the Director of OEP
before commencing construction of any project facilities. To obtain
such authorization, Florida Gas must file with the Secretary
documentation that it has received all applicable authorizations
required under federal law (or evidence of waiver thereof)''); Gulf
South Pipeline Co., LP, 170 FERC ] 61,201, 62,348 (2020) (same).
---------------------------------------------------------------------------
III. Discussion
7. In recent years, the Commission's NGA sections 3 and 7
proceedings have seen increased interest and participation by
stakeholders, such as landowners, community members, non-governmental
organizations, property rights advocates, and governmental entities,
who have raised concerns about proposed projects. The Commission's
order granting an authorization under section 3 and/or section 7 fully
considers all stakeholder concerns raised during the proceeding.
8. If a party is dissatisfied with the Commission's NGA section 3
authorization or section 7 certificate determination, it may apply for
rehearing.\11\ The application must ``set forth specifically'' the
grounds for rehearing.\12\ On rehearing, the Commission is authorized
to ``grant or deny'' the request, ``or to abrogate or modify its
order[.]'' \13\ ``Unless the Commission acts upon the application for
rehearing within thirty days after it is filed, such application may be
deemed to have been denied.'' \14\ Often, because of the complex nature
of the matters raised, the Commission issues an order (known as a
tolling order) by the thirtieth day following the filing of a rehearing
request, in order to allow additional time for the Commission to
provide thoughtful, well-considered attention to the issues raised on
rehearing.\15\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 717r(a).
\12\ Id.
\13\ Id.
\14\ Id.
\15\ See, e.g., Cal. Co. v. FPC, 411 F.2d 720, 721 (DC Cir.
1969); Kokajko v. FERC, 837 F.2d 524, 525 (1st Cir. 1988) (``The
statutory language, . . . although requiring FERC to `act' upon the
application for rehearing within thirty days after filing, lest the
application is deemed denied, does not state . . . that FERC must
`act on the merits' within that time lest the application is deemed
denied.''); Gen. Am. Oil Co. of Tex. v. FPC, 409 F.2d 597, 599 (5th
Cir. 1969); Berkley v. Mountain Valley Pipeline, LLC, 896 F.3d 624,
631 (4th Cir. 2018); see also Del. Riverkeeper Network v. FERC, 895
F.3d 102, 113 (D.C. Cir. 2018) (rejecting a due process challenge to
Commission tolling orders).
---------------------------------------------------------------------------
9. The rehearing process serves as a mechanism for the Commission
to carefully consider the arguments presented, in order to resolve
disputes or bring its expertise to bear on complex, technical matters
before they are potentially presented to the courts. The Commission
balances the interests of numerous stakeholders and renders decisions
that address challenging technical, economic, and environmental
matters, as well as complex legal issues. This takes time. Only after
resolving these ``difficult problems'' \16\ does the Commission issue
an order on the merits of a rehearing request.
---------------------------------------------------------------------------
\16\ FPC v. Colo. Interstate Gas Co., 348 U.S. 492, 501 (1955).
---------------------------------------------------------------------------
10. Once the Commission issues an order on the merits of a
rehearing request, a party may seek judicial review of the Commission's
order. An application for agency rehearing is a prerequisite to
judicial review, and only those objections raised on rehearing may be
presented to the court of appeals.\17\ Congress specified that an
application for rehearing ``shall not, unless specifically ordered by
the Commission, operate as a stay of the Commission's order.'' \18\
Thus, following issuance of an NGA section 7 certificate or section 3
authorization, a project sponsor may request that the Commission
authorize construction while rehearing is pending.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 717r(b).
\18\ Id. 717r(c).
---------------------------------------------------------------------------
11. In order to balance our commitment to expeditiously respond to
parties' concerns in comprehensive orders on rehearing and the serious
concerns posed by the possibility of construction proceeding prior to
the completion of Commission review, we are exercising our discretion
to adopt a new regulation that precludes the issuance of authorizations
to proceed with construction of projects authorized under NGA sections
3 and 7 while rehearing of the initial orders is pending. This rule
ensures that construction of an approved natural gas project will not
commence until the Commission has acted upon the merits of any request
for rehearing, regardless of land ownership.
12. This final rule adds to our regulations new Sec. 157.23, which
provides that:
With respect to orders issued pursuant to 15 U.S.C. 717b or 15
U.S.C. 717f(c) authorizing the construction of new natural gas
transportation, export, or import facilities, no authorization to
proceed with construction activities will be issued:
(a) Until the time for the filing of a request for rehearing under
15 U.S.C. 717r(a) has expired with no such request being filed, or
(b) if a timely request for rehearing is filed, until the
Commission has acted upon the merits of that request.
13. In addition, we are revising Sec. 153.4 of our regulations to
incorporate a cross-reference to new Sec. 157.23.
IV. Information Collection Statement
14. The Paperwork Reduction Act \19\ requires each federal agency
to seek and obtain the Office of Management and Budget's (OMB) approval
before undertaking a collection of information (i.e., reporting,
recordkeeping, or public disclosure requirements) directed to ten or
more persons or contained in a rule of general applicability. OMB
regulations require approval of certain information collection
requirements contained in final rules published in the Federal
Register.\20\ This final rule does not contain any information
collection requirements. The Commission is therefore not required to
submit this rule to OMB for review.
---------------------------------------------------------------------------
\19\ 44 U.S.C. 3501-3521.
\20\ See 5 CFR 1320.12.
---------------------------------------------------------------------------
V. Environmental Analysis
15. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant effect on the human environment.\21\ The Commission
has categorically excluded certain actions from this requirement as not
having a significant effect on the human environment, including the
promulgation of rules that are clarifying, corrective, or procedural,
or that do not substantially change the effect of legislation or the
regulations being amended.\22\ This final rule disallows the issuance
of authorizations to proceed with construction activities until the
Commission acts on the merits of any
[[Page 40115]]
request for rehearing of an NGA section 3 authorization or section 7(c)
certificate order. Because this final rule is procedural in nature,
preparation of an Environmental Assessment or an Environmental Impact
Statement is not required.
---------------------------------------------------------------------------
\21\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, 41 FERC ] 61,284 (1987).
\22\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------
VI. Regulatory Flexibility Act
16. The Regulatory Flexibility Act of 1980 (RFA) \23\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
However, final rules promulgated without the publication of a general
notice of proposed rulemaking under section 553 of the Administrative
Procedure Act (APA) are exempt from the RFA's requirements.\24\
Pursuant to section 553(b)(3)(A) of the APA, ``rules of agency
organization, procedure, or practice'' may be published without general
notice of proposed rulemaking.\25\ Because this rule concerns only
matters of agency procedure--specifically, the Commission's internal
processes and procedure for issuing authorizations to proceed with
construction activities under an NGA section 3 authorization or an NGA
section 7(c) certificate order, the APA's public notice and comment
procedures do not apply. Accordingly, this final rule is exempt from
the requirements of the RFA.
---------------------------------------------------------------------------
\23\ 5 U.S.C. 601-612.
\24\ Id. 604(a).
\25\ Id. 553(b)(3)(A).
---------------------------------------------------------------------------
VII. Document Availability
17. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through FERC's Home Page (https://www.ferc.gov). At this time,
the Commission has suspended access to the Commission's Public
Reference Room due to the President's March 13, 2020 proclamation
declaring a National Emergency concerning the Novel Coronavirus Disease
(COVID-19).
18. From FERC's Home Page on the internet, this information is
available on eLibrary. The full text of this document is available on
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or
downloading. To access this document in eLibrary, type the docket
number excluding the last three digits of this document in the docket
number field.
19. User assistance is available for eLibrary and the FERC's
website during normal business hours from FERC Online Support at 202-
502-6652 (toll free at 1-866-208-3676) or email at
[email protected], or the Public Reference Room at (202) 502-
8371. Email the Public Reference Room at [email protected].
VIII. Effective Date
20. The Commission is issuing this rule as a final rule without a
period for public comment. Public notice and comment, otherwise
required by 5 U.S.C. 553, do not apply to ``rules of agency
organization, procedure, or practice.'' \26\ This rule concerns only
matters of agency procedure, and will not significantly affect
regulated entities or the general public.
---------------------------------------------------------------------------
\26\ 5 U.S.C. 553(b)(3)(A).
---------------------------------------------------------------------------
21. This rule is effective August 5, 2020. As a matter of policy,
however, the Commission will not authorize construction to proceed
pending rehearing during the period before this rule becomes effective.
List of Subjects
18 CFR Part 153
Exports, Natural gas, Reporting and recordkeeping requirements.
18 CFR Part 157
Administrative practice and procedure, Natural gas, Reporting and
recordkeeping requirements.
By the Commission. Commissioner Glick is concurring in part and
dissenting in part with a separate statement attached.
Issued June 9, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
In consideration of the foregoing, the Commission is amending parts
153 and 157, chapter I, title 18, Code of Federal Regulations, as
follows:
PART 153--APPLICATIONS FOR AUTHORIZATION TO CONSTRUCT, OPERATE, OR
MODIFY FACILITIES USED FOR THE EXPORT OR IMPORT OF NATURAL GAS
0
1. The authority citation for Part 153 continues to read as follows:
Authority: 15 U.S.C. 717b, 717o; E.O. 10485; 3 CFR, 1949-1953
Comp., p. 970, as amended by E.O. 12038, 3 CFR, 1978 Comp., p. 136,
DOE Delegation Order No. 0204-112, 49 FR 6684 (February 22, 1984).
0
2. Revise Sec. 153.4 to read as follows:
Sec. 153.4 General requirements.
The procedures in Sec. Sec. 157.5, 157.6, 157.8, 157.9, 157.10,
157.11, 157.12, and 157.23 of this chapter are applicable to the
applications described in this subpart.
PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND
NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER
SECTION 7 OF THE NATURAL GAS ACT
0
3. The authority citation for Part 157 continues to read as follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.
0
4. Add Sec. 157.23 to subpart A to read as follows:
Sec. 157.23 Authorizations to Proceed with Construction Activities.
With respect to orders issued pursuant to 15 U.S.C. 717b or 15
U.S.C. 717f(c) authorizing the construction of new natural gas
transportation, export, or import facilities, no authorization to
proceed with construction activities will be issued:
(a) Until the time for the filing of a request for rehearing under
15 U.S.C. 717r(a) has expired with no such request being filed, or
(b) If a timely request for rehearing is filed, until the
Commission has acted upon the merits of that request.
The following will not appear in the Code of Federal Regulations
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Limiting Authorizations to Proceed with Construction Activities Pending
Rehearing
Docket No. RM20-15-000
GLICK, Commissioner, concurring in part and dissenting in part:
1. It is readily apparent that today's final rule attempts to
address some of the concerns raised in the Allegheny Defense Project v.
FERC proceeding before the U.S. Court of Appeals for the District of
Columbia Circuit (D.C. Circuit). In that proceeding, numerous groups
have objected to the Commission's practice of ``tolling'' for months,
or even years, requests for rehearing of certificates issued pursuant
to Sec. 7 of the Natural Gas Act,\1\ thereby preventing landowners
from seeking judicial review, even while pipeline developers are
permitted to condemn their land and start constructing a pipeline. In
her concurring opinion in Allegheny Defense Project, Judge Millett
correctly characterized the Commission's practice as a ``Kafkaesque
regime''--one that allows ``the Commission [to] keep homeowners in
[[Page 40116]]
seemingly endless administrative limbo while energy companies plow
ahead seizing land and constructing the very pipeline that the
procedurally handcuffed homeowners seek to stop.'' \2\ Now that the en
banc D.C. Circuit has heard oral argument on the legality of this
Kafkaesque regime, the Commission is finally deciding to stop allowing
developers to begin constructing a pipeline before the Commission's
rehearing process is complete. That is a step in the right direction.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 717f(c).
\2\ Allegheny Def. Project v. FERC, 932 F.3d 940, 948 (D.C.
Cir.) (Millett, J., concurring), reh'g en banc granted, judgment
vacated, 943 F.3d 496 (D.C. Cir. 2019).
---------------------------------------------------------------------------
2. Nevertheless, I dissent in part from this final rule because it
does nothing to address the concern, articulated clearly in Judge
Millett's concurrence, that a pipeline developer should not be able to
begin the process of condemning private land before the owners of that
land can go to court to challenge the certificate. Eminent domain is
among the most significant actions that a government may take with
regard to an individual's private property.\3\ And the harm to an
individual from having his or her land condemned is one that may never
be fully remedied, even in the event they receive their
constitutionally required compensation.\4\ Bearing those basic facts in
mind, there is something fundamentally unfair about a regulatory regime
that allows a private entity to start the process of condemning an
individual's land before the landowner can go to court to contest the
basis for that condemnation action.
---------------------------------------------------------------------------
\3\ Cf. Dolan v. City of Tigard, 512 U.S. 374, 384 (1994)
(observing that government action that provides for ``public access
[to private property] would deprive [the owner] of the right to
exclude others, `one of the most essential sticks in the bundle of
rights that are commonly characterized as property.''') (quoting
Kaiser Aetna v. United States, 444 U.S. 164, 176 (1979)); Loretto v.
Teleprompter Manhattan CATV Corp., 458 U.S. 419, 426 (1982) (``[W]e
have long considered a physical intrusion by government to be a
property restriction of an unusually serious character for purposes
of the Takings Clause.''); Hendler v. United States, 952 F.2d 1364,
1374 (Fed. Cir. 1991) (``In the bundle of rights we call property,
one of the most valued is the right to sole and exclusive
possession--the right to exclude strangers, or for that matter
friends, but especially the Government.'' (emphasis in the
original)).
\4\ See Kimball Laundry Co. v. United States, 338 U.S. 1, 5
(1949) (``The value of property springs from subjective needs and
attitudes; its value to the owner may therefore differ widely from
its value to the taker.''); United Church of the Med. Ctr. v. Med.
Ctr. Comm'n, 689 F.2d 693, 701 (7th Cir. 1982) (``It is settled
beyond the need for citation . . . that a given piece of property is
considered to be unique, and its loss is always an irreparable
injury.''); accord Richardson v. City & Cty. of Honolulu, 124 F.3d
1150, 1168 (9th Cir. 1997) (O'Scannlain, J., concurring in part and
dissenting in part) (``Whether because of a sentimental attachment
to his property or a conviction that the property is actually worth
more than what the market will currently bear, a landlord might
choose not to sell, even at the `fair market value.''').
---------------------------------------------------------------------------
3. That concern was central to Judge Millett's concurrence in
Allegheny Defense Project. Throughout her opinion, she touched on the
profound inequity of allowing a developer to condemn land and construct
a pipeline while the opponents of that pipeline are stuck in
``administrative limbo'' before the Commission.\5\ I see nothing in her
opinion that suggests that the problem created by the Commission's
abuse of tolling orders is limited to the actual construction of a
pipeline. To the contrary, Judge Millett pointed repeatedly to the
exercise of eminent domain prior to rehearing as an example of how the
Commission's use of tolling orders ``runs roughshod over basic
principles of fair process.'' \6\
---------------------------------------------------------------------------
\5\ Allegheny Def. Project, 932 F.3d at 948, 950, 952-53, 956
(Millett, J., concurring).
\6\ Id. at 950 (Millett, J., concurring).
---------------------------------------------------------------------------
4. And yet this final rule deals only with construction without
making any effort to address the exercise of eminent domain during that
period when the courthouse doors are closed to landowners seeking to
challenge the certificate. That is a shame. And the failure to do
anything in that regard is a striking contrast to the Commission's
supposed concern for landowners. Rather than remaining silent on this
situation, we ought to do everything in our power to address it and
ensure that certificate holders are not permitted to go to court before
landowners.
5. To that end, I believe that we should adopt a practice of
presumptively staying Sec. 7 certificates \7\ pending Commission
action on the merits of any timely filed requests for rehearing.\8\ A
practice along those lines would help protect landowners from an action
seeking to condemn their property by delaying the issuance of the
condition precedent for a condemnation action pursuant to the NGA.\9\
Only then will we have addressed the most glaring due process
shortcomings associated with the Commission's use of tolling orders in
NGA certificate proceedings.
---------------------------------------------------------------------------
\7\ Unlike Sec. 7 of the NGA, Sec. 3 does not convey eminent
domain authority. See Limiting Authorizations to Proceed with
Construction Activities Pending Rehearing, 171 FERC ] 61,201, P 5
(2020). Accordingly, I do not believe it is necessary to
presumptively stay the Commission's Sec. 3 determinations. I do,
however, agree with my colleagues that it is appropriate to refrain
from issuing any notices to proceed with construction under both
Sec. 3 and Sec. 7 given the potential for irreparable harm due to
construction pursuant to either provision of the NGA. See id. P 11.
\8\ Under such an approach, the Commission could, in its
discretion, lift the stay in response to a showing from the pipeline
developer that it is necessary or appropriate to commence
condemnation proceedings prior to the Commission acting on
rehearing.
\9\ Multiple courts have contemplated a stay having an effect
along those lines. See, e.g., Mountain Valley Pipeline, LLC v. An
Easement to Construct, Operate & Maintain a 42-inch Gas Transmission
Line, No. 2:17-CV-04214, 2018 WL 1004745, at *5 (S.D.W. Va. Feb. 21,
2018) (``The landowners insist that the various challenges that
Mountain Valley faces before FERC and the courts of appeals counsel
against the granting of partial summary judgment. As explained
earlier, a FERC order remains in effect unless FERC or a court of
appeals issues a stay and no such stay has been issued here.''
(internal citations omitted)); In re Algonquin Nat. Gas Pipeline
Eminent Domain Cases, No. 15-CV-5076, 2015 WL 10793423, at *7
(S.D.N.Y. Sept. 18, 2015) (``Here, various interested parties have
filed Requests for Rehearing with FERC but, absent a stay by FERC,
those Requests for Rehearing neither prohibit these proceedings from
going forward nor affect Algonquin's substantive right to condemn or
the need for immediate possession.''); Tenn. Gas Pipeline Co. v. 104
Acres of Land More or Less, in Providence Cty. of State of R.I., 749
F. Supp. 427, 431 (D.R.I. 1990) (``Because in this case the
Commission's order has not been stayed, condemnation pursuant to
that order may proceed.'').
---------------------------------------------------------------------------
6. During my time at the Commission, I have had the opportunity to
meet with many landowners who lost their property rights through
eminent domain proceedings authorized by the NGA. It is heartbreaking
to hear their stories of watching their land be condemned while the
Commission sat on rehearing requests, leaving them helpless to
challenge the certificate, even as it was used to seize their land. We
should be doing everything in our power to prevent such a patently
unfair result.
For these reasons, I respectfully concur in part and dissent in
part.
Richard Glick, Commissioner.
[FR Doc. 2020-13015 Filed 7-2-20; 8:45 am]
BILLING CODE 6717-01-P