Natural Gas: FERC's Compliance and Enforcement Programs Could Be Further Enhanced
RCED-93-122
Published: May 27, 1993. Publicly Released: Jul 02, 1993.
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Highlights
Pursuant to a congressional request, GAO reviewed the Federal Energy Regulatory Commission's (FERC) efforts to enforce the natural gas industry's compliance with applicable statutes and regulations, focusing on whether FERC: (1) efforts adequately detected pipeline companies' discriminatory practices and enforced transaction standards; and (2) environmental requirements were sufficient to monitor pipeline companies' efforts to mitigate environmental damage during new pipeline construction.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Energy Regulatory Commission | To better ensure that interstate pipeline companies do not engage in discriminatory practices, the Chairman, FERC, should aggressively enforce pipeline companies' compliance with FERC requirements to provide: (1) complete, accurate, and timely information about available transportation capacity and transactions with marketing affiliates on publicly accessible electronic bulletin boards; and (2) related reports that FERC requires pipeline companies to file. |
Closed – Implemented
FERC has taken action in response to the recommendation that it ensure that pipeline companies do not discriminate unfairly when providing transportation services to their marketing affiliates. In particular, FERC now requires interstate pipeline companies to post on their electronic bulletin boards (EBBs) all discount offers to their marketing affiliates. Pipeline companies must also maintain logs showing how they have allocated pipeline capacity to marketing affiliates during periods when capacity is in short supply.
|
| Federal Energy Regulatory Commission | To better ensure that interstate pipeline companies do not engage in discriminatory practices, the Chairman, FERC, should direct the Office of the Chief Accountant, when scheduling audits of pipeline companies and determining the appropriate level of review for each audit, to consider all information available to the Commission that suggests potential discriminatory practices may be occurring. |
Closed – Implemented
FERC's Chair has stated that staff will schedule and plan compliance audits of interstate pipeline companies based in part on complaints alleging discriminatory practices by a pipeline company.
|
| Federal Energy Regulatory Commission | To further improve the FERC environmental compliance program, the Chairman, FERC, should require pipeline companies to provide FERC with notification similar to that already made to states in advance of construction affecting environmentally sensitive areas, such as streams and rivers, and give priority to inspecting such construction activity, particularly if it involves the first crossing of these areas. |
Closed – Implemented
FERC has begun to require that pipeline companies notify FERC when they cross streams. FERC now requires pipeline companies to notify it within 14 days of construction near such sensitive areas as major water bodies and coldwater fisheries.
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| Federal Energy Regulatory Commission | To further improve the FERC environmental compliance program, the Chairman, FERC, should develop a formal policy requiring all pipeline companies whose construction projects involve preparation of environmental impact statements or major environmental assessments to submit weekly or biweekly environmental compliance reports on all mitigation measures identified in the FERC order approving construction. |
Closed – Implemented
FERC has begun to require that pipeline companies constructing major new facilities submit periodic (every 2 weeks) environmental compliance reports. FERC now requires pipeline companies to submit weekly environmental compliance reports for construction projects that required an environmental impact statement and biweekly reports when the project required a major environmental assessment.
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| Federal Energy Regulatory Commission | To further improve the FERC environmental compliance program, the Chairman, FERC, should seek civil penalty authority from Congress to enforce compliance with requirements under the Natural Gas Act and use such authority, particularly in cases of repeated violations. |
Closed – Not Implemented
FERC's Chair stated that she brought this issue to the authorizing committees of Congress in fall 1994, but there was no interest. She believes that the new Congress would have even less interest in providing FERC with civil penalty authority.
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Topics
CompetitionConstruction (process)Environmental monitoringFederal regulationsGas pipeline operationsInternal controlsNatural gasRegulatory agenciesReporting requirementsRegulatory noncompliance