SLS 14RS-851 ORIGINAL
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 525
BY SENATOR ADLEY
UTILITIES. Provides that abandonment of interstate pipeline segments located wholly in
Louisiana are considered intrastate pipelines and are handled under the regulations of the
Louisiana Public Service Commission. (8/1/14)
AN ACT1
To enact R.S. 45:302.1, relative to the Louisiana Public Service Commission; to provide2
with respect to abandonment of interstate pipelines located wholly within the state;3
and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R. S. 45:302.1 is hereby enacted to read as follows: 6
ยง302.1. Powers of the commission; abandonment7
If proceedings are filed to abandon an interstate natural gas pipeline8
before the Federal Energy Regulatory Commission, and any segment of pipeline9
proposed to be abandoned in such filing is geographically located wholly within10
the state of Louisiana, such segment shall be considered an intrastate natural11
gas pipeline as of the date such proceeding is filed with the Federal Energy12
Regulatory Commission. As an intrastate natural gas pipeline, the pipeline13
shall be subject to the jurisdiction of the Louisiana Public Service Commission14
as a public utility. All abandonment proceedings for any such pipeline segment,15
beginning on the date of such filing, shall be governed pursuant to applicable16
rules, regulations, and orders of the Louisiana Public Service Commission. Such17 SB NO. 525
SLS 14RS-851 ORIGINAL
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
an abandonment shall not be effective until compliance with applicable rules,1
regulations, and orders of the Louisiana Public Service Commission, and all2
other applicable state and federal agency regulations. The provisions of this3
Section shall be in addition to the requirements of R.S. 30:555.4
Section 2. This Act shall become effective on August 1, 2014.5
Section 3. The provisions of this Act shall be given retroactive application.6
Section 4. The provisions of this Act shall apply to any proceeding to abandon an7
interstate pipeline located wholly in the state of Louisiana and filed with the Federal Energy8
Regulatory Commission on or after August 1, 2014.9
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Sharon F. Lyles.
DIGEST
Adley (SB 525)
Present law prohibits an intrastate natural gas transporter from abandoning all or any portion
of its facilities subject to the jurisdiction of the commissioner of conservation, or any service
rendered by means of such facilities, without the permission and approval of the
commissioner. The commissioner may approve upon his finding that the available supply
of natural gas is depleted to the extent that the continuance of service is unwarranted, or that
the public interest and energy needs permit such abandonment. The commissioner is
authorized to deny abandonment based upon satisfactory evidence that a user of gas located
in the state, a majority of which users' employees are Louisiana residents, or which user
produces goods or services for Louisiana residents, including gas or electric service, is or
will be unable to secure adequate supplies of natural gas to maintain employment,
production, or service levels if abandonment is granted.
Proposed law provides that if proceedings are filed to abandon an interstate pipeline before
the Federal Energy Regulatory Commission (FERC), and any segment of pipeline proposed
to be abandoned in such filing is geographically located wholly within the state of Louisiana,
such pipelines shall be considered an intrastate pipeline as of the date of filing such
proceeding is filed with FERC and shall be within the jurisdiction of the Louisiana Public
Service Commission (PSC). Requires abandonment proceedings for such pipeline segments,
beginning as of the date of filing, to be handled pursuant to the rules and regulations of the
PSC.
Proposed law provides that it is retroactive and applies to any proceeding to abandon an
interstate pipeline located wholly in the state of Louisiana and filed with FERC on or after
February 1, 2014.
Effective August 1, 2014.
(Adds R.S. 45:302.1)