{"operation":"document","citation":"PHMSA Guidance, 1985 Memorandum of Understanding Between DOT and FERC Regarding LNG Facilities","title":"1985 Memorandum of Understanding Between DOT and FERC Regarding LNG Facilities","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"1985-03-29","effective_on":"1985-03-29","summary":"1985 Memorandum of Understanding Between DOT and FERC Regarding LNG Facilities Document 1985DOT_FERC.pdf (11.59 KB) Provides guidance and policy for their respective technical staffs and the regulated pipeline industry regarding the execution of the agencies respective statutory responsibilities to assure the safe siting, design, construction, operation, and maintenance of fixed LNG facilities. Issued Date: Friday, M","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-guidance-1985-memorandum-understanding-between-dot-and-ferc-regarding-lng-d9dd3f39.json","markdown":"https://regulus.evalyn.ai/document/phmsa-guidance-1985-memorandum-understanding-between-dot-and-ferc-regarding-lng-d9dd3f39.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-guidance-1985-memorandum-understanding-between-dot-and-ferc-regarding-lng-d9dd3f39","source_url":"https://www.phmsa.dot.gov/pipeline/liquified-natural-gas/1985-memorandum-understanding-between-dot-and-ferc-regarding-lng","body":"1985 Memorandum of Understanding Between DOT and FERC Regarding LNG Facilities\n\nDocument\n\n 1985DOT_FERC.pdf (11.59 KB)\n\n        Provides guidance and policy for their respective technical staffs and the regulated pipeline industry regarding the execution of the agencies respective statutory responsibilities to assure the safe siting, design, construction, operation, and maintenance of fixed LNG facilities.\n\n          Issued Date: Friday, March 29, 1985\n\n<<<PAGE 1>>>\n\n1985 MOU: DOT and FERC Regarding LNG Facilities\nMEMORANDUM OF UNDERSTANDING BETWEEN THE DEPARTMENT OF\nTRANSPORTATION\nAND THE FEDERAL ENERGY REGULATORY COMMISSION\nREGARDING LIQUEFIED NATURAL GAS TRANSPORTATION FACILITIES\nIntroduction.\nThe Department of Transportation (DOT), through the Materials Transportation Bureau (MTB) of the\nResearch and Special Programs Administration (RSPA) and the United States Coast Guard (USCG),\nexercises the authority to promulgate and enforce safety regulations and standards for the transportation\nand storage of liquefied natural gas (LNG) in or affecting interstate or foreign commerce. RSPA\nexercises its authority over LNG facilities under the Natural Gas Pipeline Safety Act of 1968, as\namended, (NGPSA) (49 App. USC § 1671, et seq.) and the Hazardous Materials Transportation Act\n(HMTA) (49 USC § 1801, et seq.) and the USC, under EO 10173, the Magnuson Act (50 USC\n191), the Ports and Waterways Safety Act of 1972, as amended (PWSA) (33 USC 1221 et seq.),\nexercises supplementary safety regulatory authority over LNG facilities which affect the safety of port\nareas and navigable waterways.\nThe regulations and standards promulgated under these authorities extend, inter alia, to the design,\ninstallation, construction, initial inspection, initial testing, operation, and maintenance of facilities used in\nthe transportation of LNG by any mode and associated storage of LNG. DOT enforces compliance\nwith these regulations and standards through an inspection program and, when appropriate, the\nimposition of civil, criminal, or administrative remedies. Under criteria established by NGPSA, states\nare eligible to assume these regulatory and enforcement functions as they apply to intrastate pipeline\ntransportation and associated LNG facilities. Although these intrastate facilities are not subject to this\nMemorandum, the regulations and standards governing pipeline transportation promulgated by DOT\ngenerally apply to both interstate and intrastate facilities.\nThe Federal Energy Regulatory Commission (FERC), under Section 7 of the Natural Gas Act (15\nUSC § 717 et seq.), issues certificates of public convenience and necessary with terms and conditions\nfor facilities proposed for use in the sale for resale or transportation of natural gas, including LNG, in\ninterstate commerce. As required by the National Environmental Policy Act (42 USC § 4321 et seq.),\nthe FERC prepares environmental impact statements for proposed LNG facilities conjunction with the\nissuance of certificates. The FERC also conducts cryogenic design and technical review of the\noperational aspects of the jurisdictional LNG facilities both during the certificate process and biennially\nthereafter. Particular emphasis is placed on operational reliability and assurance of continued service to\nthe public.\nIn addition, the Secretary of Energy under Section 3 of the Natural Gas Act (15 USC § 717 et seq.)\nhas approval authority for the import and export of natural gas, including LNG.. The Secretary of\nEnergy has delegated and assigned Section 3 authority to the FERC Section 3 authority to approve gas\n\n<<<PAGE 2>>>\n\nimport and export facilities and their siting.\nPurpose.\nThis agreement acknowledges DOT's exclusive authority to promulgate Federal safety standards for\nLNG facilities used in the transportation and associated storage of LNG in or affecting interstate or\nforeign commerce. However, under the Natural Gas Act, the FERC exercises the authority to impose\nmore stringent safety requirements than DOT's standards when warranted by special circumstances at\nany LNG facility within the FERC's jurisdiction. The FERC also exercises it authority to impose\nrequirements which would ensure or enhance operational reliability of its jurisdictional LNG facilities.\nSuch operational reliability requirements are not subject to this Memorandum of Understanding.\nThe FERC And DOT agree that this Memorandum of Understanding (MOU) provides guidance and\npolicy for their respective technical staffs and the regulated pipeline industry regarding the execution of\nthe agencies respective statutory responsibilities to assure the safe siting, design, construction,\noperation, and maintenance of fixed LNG facilities.\nTherefore, the FERC and DOT agree to the following program:\n1. The FERC shall:\na. Invite DOT to participate in FERC-sponsored LNG facility inspections and related technical\nconferences with facility operators.\nb. Except as provided by paragraph 19e), refer to DOT for its review and comment any FERC\nproposed corrective action addressing LNG facility safety matters, whether or not in the form of\ncertificate conditions, that differ from or are more stringent than DOT's safety regulations and\nstandards. Proposed corrective actions subject to DOT review under this paragraph may result from\nFERC review of LNG facility certificate applications, inspection of existing LNG facilities, or otherwise.\nc. Take final action on a matter referred under paragraph 1(b) only after receipt and consideration\nof comments provided by DOT in accordance with paragraph 2(c).\nd. paragraph 1(b):\nProvide the following information in writing to DOT when a referral is made to DOT under\n(i) corrective action is addressed;\nThe nature of the hazard, design deficiency, or operational practice to which the proposed\n(ii) standards or industry codes;\nThe extent to which the LNG safety matter appears to be covered by DOT regulations and\n(iii) The corrective action recommended and its estimated cost-benefit impact upon the operator;\n\n<<<PAGE 3>>>\n\n(iv) safety regulations and standards; and\nWhether the recommended corrective action appears to differ from or exceed DOT's LNG\n(v) Any discussion pertinent to items (i)-(iv) contained in a Final Environmental Impact\nStatement (FEIS) for the concerned LNG facility.\ne. In those instances when an applicant for an LNG facility certificate or an operator of an existing\nLNG facility voluntarily agrees to take corrective action on a hazard, design deficiency, or operational\npractice in accord with recommendations of the FERC staff, the procedures for referral to DOT\ncontained in paragraphs 1(b) through 1(d) do not apply. When such voluntary agreements are reached,\nthe FERC staff will promptly notify DOT of the agreements and provide appropriate background\nmaterial.\nf. Advise the certificate applicant or facility operator of the details of each matter which has been\nreferred to DOT for review under paragraph 1(b), with notice that the applicant or operator may\nsubmit written comments on the matter to DOT and the FERC within a period not to exceed 30 days\nfrom receipt of the notice. This time period may be extended only by agreement between DOT and the\nFERC.\ng. When a FEIS is required as part of the FERC decisionmaking process on the siting, construction,\nand operation of LNG facilities, the FERC staff shall, to the extent possible, describe in the FEIS any\nLNG safety matters and their impact on the environment or facility operations that are considered by\nthe staff to warrant corrective action or further analysis.\n2. The DOT shall:\na. Evaluate each matter referred to it by the FERC, under paragraph 1, along with any related\ncomments received from an applicant or operators.\nb. Take whatever action DOT considers appropriate in the discharge of its responsibilities in the\nmatter referred by the FERC, including issuing a hazardous facility order or imposing other enforcement\nremedies as authorized by the NGPSA (paragraph 2(d)) or the PWSA, instituting rulemaking of either\ngeneral or particular applicability, issuing an interpretation of an existing safety standard, enforcing an\nexisting DOT safety standard, commenting on the appropriateness of a particular safety standard\nproposed by the FERC with regard to a particular LNG facility or particular circumstances, or deciding\nthat no action is necessary or that the matter is outside DOT jurisdiction.\nc. Advise the certificate applicant or facility operator and the FERC of the action contemplated by\nDOT in each matter referred by the FERC, and the approximate time schedule within which final action\nwill be completed, or advise that the matter is outside the scope of DOT jurisdiction, within a period of\n60 days from the date of referral. This time period may be extended only when the time period in\nparagraph 1(f) is also extended. The date of referral shall be the date when DOT receives the official\n\n<<<PAGE 4>>>\n\nrequest for review and comment in writing from the FERC under paragraph 1(b).\nd. Exercise NGPSA or PWSA enforcement authority to effect corrective actions recommended and\nadopted by the FERC and previously concurred with by DOT.\ne. Advise the FERC when DOT is going to inspect an LNG facility under FERC jurisdiction and\nnotify the FERC of it its findings.\n3. Working Arrangements. The DOT and FERC will designate appropriate staff representatives and\nwill establish joint working arrangements from time to time to administer this Memorandum of\nUnderstanding.\n4. Effect. This agreement shall take effect upon signing by authorized representatives of DOT and\nFERC and will apply to LNG facility certificate applications filed after the effective date and to LNG\nfacilities in operation on and after that date.\n5. Nothing in this Memorandum of Understanding is intended to restrict the statutory authority of DOT\nor the FERC.\n6. DOT and FERC each reserve the option of suspending, modifying, or terminating their respective\ncommitments contained in this Memorandum of Understanding if any of their respective statutory\nresponsibilities state herein is altered or abolished in the future. Such action must be preceded by\nwritten notice to the other party at least 30 days before exercising this option.\nDated: March 29, 1985, Elizabeth H. Dole, Secretary, Department of Transportation\nDated: April 16, 1985, Raymond J. O'Connor, Chairman, Federal Energy Regulatory Commission","truncated":false,"body_characters":10407}