On September 6, 2012, D’Lo received a certificate of public convenience and necessity from the Federal Energy Regulatory Commission (“FERC”) to construct, own and operate a natural gas storage facility (www.ferc.gov; eLibrary, Docket No. CP12‐39-000). The certificate includes the authority to charge market‐based rates for a full range of firm and interruptible storage and hub services. D’Lo plans for the first gas to be injected in the summer of 2015. Under an exemption for temporary acts and operations, D’Lo has successfully drilled test salt core, source water and salt water disposal wells.
FERC, is an independent agency that regulates the interstate transmission of natural gas, oil, and electricity. FERC also regulates natural gas and hydropower projects. The FERC will monitor and regulate D’Lo Gas Storage’s development, construction and operations. The Energy Policy Act of 2005 gave FERC additional responsibilities as outlined on the official FERC website. As it applies to gas facilities, FERC:
- Regulates the transmission and sale of natural gas for resale in interstate commerce;
- Approves the siting of and abandonment of interstate natural gas facilities, including pipelines, storage and liquefied natural gas;
- Monitors and investigates energy markets;
- Uses civil penalties and other means against energy organizations and individuals who violate FERC rules in the energy markets;
- Oversees environmental matters related natural gas and hydroelectricity projects and major electricity policy initiatives; and
- Administers accounting and financial reporting regulations and conduct of regulated companies.
The Federal Energy Regulatory Commission is charged by Congress with evaluating whether interstate natural gas pipeline projects proposed by private companies should be approved. The Federal government does not propose, construct, operate, or own such projects. The Commission’s determination whether to approve such a project may affect you if your land is where a natural gas pipeline, other facilities, or underground storage fields might be located. FERC wants you to know:
- How the Commission’s procedures work.
- What rights you have.
- How the location of a pipeline or other facilities is decided.
- What safety and environmental issues might be involved.