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Natural Gas: Factors Affecting Approval Times for Construction of Natural Gas Pipelines

RCED-92-100 Published: Feb 26, 1992. Publicly Released: Apr 15, 1992.
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Highlights

Pursuant to a congressional request, GAO reviewed the Federal Energy Regulatory Commission's (FERC): (1) process for approving applications for constructing natural gas pipelines; and (2) efforts to streamline the approval process.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Federal Energy Regulatory Commission The Chairman, FERC, should develop better methods of communicating FERC policy decisions, including: (1) clear, written explanations of the Commission's policy changes for FERC staff and the public; and (2) regular and systematic classroom training for FERC staff.
Closed – Implemented
FERC: (1) prepared a manual on improving writing skills; (2) attached a memorandum to its order explaining policy changes; (3) developed detailed manuals and a memorandum explaining policy changes; and (4) provided staff with classroom-style training on the policy changes.
Federal Energy Regulatory Commission The Chairman, FERC, should enter into interagency agreements with federal agencies that: (1) resolve potential generic issues; (2) spell out the duties and responsibilities of each party with respect to environmental reviews for natural gas pipelines; and (3) establish time frames for completing those duties and responsibilities.
Closed – Implemented
FERC tried to develop MOUs for policy coordination with the Department of Transportation, the Forest Service, the Advisory Council on Historic Preservation, the Fish and Wildlife Service, the Bureau of Land Management, the Army Corps of Engineers, and the Council on Environmental Quality (CEQ). FERC signed a MOU with Transportation in December 1992. FERC later decided not to pursue an agreement with CEQ after determining there was no overlap in jurisdiction. FERC has not finalized MOUs with the other agencies. According to FERC, resource constraints limit both FERC and the other agencies' ability to complete the MOUs. Neither FERC nor the other agencies believe completing the MOUs is a high priority at this time. As a result, FERC has shelved its draft MOUs with these agencies indefinitely. However, FERC also notes that it has good working relationships with the other agencies and can effectively coordinate environmental issues.
Federal Energy Regulatory Commission The Chairman, FERC, should amend the Key Indicator Case Tracking System to: (1) retain original and subsequent target milestone and completion dates; and (2) capture the timing of industry responses to FERC data requests and the performance of federal agencies in meeting dates established for completing pipeline environmental reviews.
Closed – Implemented
FERC made several changes to its management information system in accordance with the GAO recommendations and informal suggestions.

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Topics

CompetitionCongressional oversightConstruction (process)Energy industryEnvironmental monitoringGas pipeline operationsIndependent regulatory commissionsNatural gasConstructionPipeline operations