Earlier this week the Federal Energy Regulatory Commission (FERC) held a public workshop on the Alaska Natural Gas Transportation project Open Season. Over 100 individuals attended from various private industry groups and state and federal agencies. Richard Foley and Todd Ruhkamp, FERC Washington DC staff, provided details on the project history, ANGPA, the Open Season process and goals, as well as how to provide electronic comments. The goal of the Open Season is to promote competition in the exploration, development, and production of Alaska natural gas. The Open Season process is flexible to allow project sponsors to market the project, yet allow for fair competition among prospective shippers.
The Open Season is held a minimum of 90 days, bids are evaluated, winners announced and precedent agreements (PA) negotiated. PA's are a sensitive yet key step to the Open Season process where the project applicants and shippers agree on conditions. FERC provided an example of the Ruby pipeline where it took approximately 2 years to sign the PA's. Some conditions include options for carbon/greenhouse taxes, anchor PA's are approved by the state Commission, and creditworthiness requirements are satisfied. Another noteworthy point is no bid can be rejected solely because a bidder has a bid pending in another Open Season.
A question from the audience was: will FERC accept comments after the 60 day window? FERC would like to see comments prior so they can ensure they meet there timeline and that is one of the reasons they are providing workshops now to ensure the public is familiar with the electronic commenting process. The workshop included a detailed explanation of the navigation of FERC's various electronic forms of information and communication. Mailed comments will also be accepted and incorporated into the electronic database.
The FERC was asked to clarify how the process will work for the APP project since it is offering a LNG option. FERC indicated that APP will provide two separate packages allowing for shippers to bid on both options. The Environmental Impact Statement (EIS) and National Environmental Policy Act (NEPA) process is separate from the Open Season process however the project description is similar to resource report one, required in the NEPA process.
For those interested in Open Season, here are the FERC points of contact:
Denali and APP filings with FERC are available for review in FERC's Public Reference Room or may be viewed on the Commission's website at http://www.ferc.gov using the "e-Library" link http://www.ferc.gov/docs-filing/elibrary.asp. Enter the docket number excluding the last three digits in the docket number field to access the document, TransCanada (APP) Docket No. PF09-11-000 and Denali Pipeline Project Docket No. PF08-26-000. Also, FERC has a general Alaska page, http://www.ferc.gov/industries/gas/indus-act/angtp.asp, which includes a FERC Open Season Fact Sheet.
For assistance, contact FERC at FERCOnlineSupport@ferc.gov or call toll-free, (866) 208-3676, or for TTY, (202) 502-8659. Richard Foley, regulatory gas utility specialist, Office of Energy Projects, Division of Pipeline Certificates, also can assist with questions. He can be reached at (202) 502-8955 or via email at richard.foley@ferc.gov.
Note: If proceeding(s) are protested, FERC Staff cannot discuss the case except to direct persons to the website.