Fuel Safe Washington v. Federal Energy Regulatory Commission

389 F.3d 1313, 160 Oil & Gas Rep. 1187, 2004 U.S. App. LEXIS 24774, 2004 WL 2730118
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 1, 2004
Docket03-9577
StatusPublished
Cited by31 cases

This text of 389 F.3d 1313 (Fuel Safe Washington v. Federal Energy Regulatory Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fuel Safe Washington v. Federal Energy Regulatory Commission, 389 F.3d 1313, 160 Oil & Gas Rep. 1187, 2004 U.S. App. LEXIS 24774, 2004 WL 2730118 (10th Cir. 2004).

Opinions

ANDERSON, Circuit Judge.

Petitioner Fuel Safe Washington (“FSW”) seeks review of two orders by the Federal Energy Regulatory Commission (“FERC”) granting a Certificate of Public Convenience and Necessity (“CPCN”) to Georgia Strait Crossing Pipeline LP (“GSX”), permitting GSX to build a new natural gas pipeline and ancillary facilities in northwest Washington state, and denying requests for rehearing. FSW asks us either to vacate FERC’s final orders or, alternatively, to remand this matter to FERC for further proceedings. We decline to vacate FERC’s orders or remand for further proceedings. The petition for review is therefore denied.

BACKGROUND

Pursuant to the Natural Gas Act, FERC has plenary jurisdiction over (1) “the transportation of natural gas in interstate commerce”; (2) “the sale in interstate commerce of natural gas for resale for ultimate public consumption”; and (3) “natural-gas companies engaged in such transportation or sale.” 15 U.S.C. § 717(b). See City of Fort Morgan v. FERC, 181 F.3d 1155, 1159 (10th Cir.1999). There is an exception from FERC jurisdiction, called the Hinshaw Amendment exception, which excludes from FERC’s jurisdiction a natural gas company’s activities if (1) the company receives all gas “within or at the boundary of a State”; (2) “all the natural gas so received is ultimately consumed within such State”; and (3) the service of that intra-state gas, and the accompanying facilities and rates, are “subject to regulation” by the state. 15 U.S.C. § 717(c); see also City of Fort Morgan, 181 F.3d at 1159.

Prior to constructing or operating any natural gas pipeline and related facilities, a company subject to FERC’s jurisdiction must obtain from FERC “a certificate of public convenience and necessity,” 15 U.S.C. § 717f(c)(l)(A), indicating FERC’s determination that the proposed service “is or will be required by the present or future public convenience or necessity.” 15 U.S.C. § 717f(e).

As a part of its review process before issuing a CPCN, FERC conducts an environmental analysis under the National Environmental Policy Act (“NEPA”), 42 U.S.C. §§ 4321-70f, which “ ‘prescribes the necessary process’ by which federal agencies must ‘take a hard look at the environmental consequences’ of their proposed actions.” Lee v. U.S. Air Force, 354 F.3d 1229, 1237 (quoting Utahns for Better [1318]*1318Transp. v. U.S. Dep’t of Transp., 305 F.3d 1152, 1162-63 (10th Cir.2002), modified, 319 F.3d 1207 (10th Cir.2003) (further quotation omitted)). In contemplating “ ‘major Federal actions significantly affecting the quality of the human environment,’ agencies must prepare an environmental impact statement (“EIS”) in which they consider the environmental impact of the proposed action and compare this impact with that of ‘alternatives to the proposed action.’ ” Id. (quoting 42 U.S.C. § 4332(2)(C)).

On April 24, 2001, GSX applied for CPCNs to construct and operate a natural gas pipeline and accompanying facilities in Whatcom and San Juan Counties, Washington. The proposed pipeline would

carry gas east to west, from the Canadian border near Sumas, Washington, overland across Whatcom and San Juan Counties, Washington, then underwater across the Strait of Georgia, to a subsea interconnection mid-channel ' in the Boundary Pass at the international border between the United States and Canada. The onshore facilities will consist of approximately 32.1 miles of 20-inch pipe, 1.4 miles of 16-inch pipe, a 10,302 horsepower (ISO-rated) compressor station at Cherry Point, Washington, and a receipt point meter station at the border near Sumas. The offshore facilities will consist of approximately 14 miles of 16-inch pipe, with a subsea tap valve assembly near the San Juan Islands.

Georgia Strait Crossing Pipeline LP, 100 F.E.R.C. ¶ 61,280, at 62,191, 2002 WL 31975732 (2002) (footnote omitted). At Su-mas, the east terminus of the pipeline, the proposed line would interconnect with a Canadian pipeline, Westcoast Energy Inc. and with a United States pipeline, Northwest Pipeline Corporation. At its west subsea terminus, the pipeline would interconnect with a new pipeline to be built and operated by Georgia Strait Crossing Pipeline Ltd. (“GSX-Canada”) which would transport gas from the interconnection point to Vancouver Island, British Columbia. While it was clear that the pipeline was primarily designed to transport Canadian gas to Canadian consumers on Vancouver island, the system was designed from the beginning to permit as much as 10% of its capacity to, at times, be transported through the Northwest connection to United States markets.1 GSX proposed that Powerex, a British Columbian corporation, would be the initial transportation service customer.

On June 1, 2001, FERC sent a “Notice of Intent to Prepare an Environmental Impact Statement for the Proposed Georgia Strait Crossing Project, Request for Comments on Environmental Issues, and Notice of Public Scoping Meetings and Site Visit” (“NOI”) to 339 interested parties. FERC held two public meetings in Washington State and received comments on the proposed project throughout the summer of 2001.

On December 10, 2001, FERC’s staff filed its draft EIS (“DEIS”) with the Environmental Protection Agency (“EPA”), announced it in the Federal Register, and mailed it to individuals and organizations on a mailing list created for the project. Under Council on Environmental Quality (“CEQ”) regulations implementing NEPA, 40 C.F.R. §§ 1500-08, the public had until February 4, 2002, to comment on the [1319]*1319DEIS. The Commission held another public meeting in Washington on February 26, at which twenty-five people made statements. The Commission received comments on the DEIS from four federal agencies, five state agencies, five local agencies and elected officials, two Native American groups, six companies and organizations, ten individuals, and the applicant, GSX.

Meanwhile, the Commission proceeded with its review of the non-environmental aspects of the project. It published notice of GSX’s application in the Federal Register on May 4, 2001. Twenty-four parties filed motions to intervene. On March 13, 2002, FERC issued a Preliminary Determination, concluding that, subject to completion of the environmental review process, the benefits of the proposed project outweighed the potential adverse effects. None of the parties to this case requested a rehearing of the Preliminary Determination.

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Bluebook (online)
389 F.3d 1313, 160 Oil & Gas Rep. 1187, 2004 U.S. App. LEXIS 24774, 2004 WL 2730118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuel-safe-washington-v-federal-energy-regulatory-commission-ca10-2004.