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Regular Session, 2014
SENATE BILL NO. 525
BY SENATORS ADLEY, THOMPSON AND WARD
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. (gov sig)
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; abandonment of certain pipelines7
A. As used in this Section, "interstate natural gas pipeline" means an8
interstate natural gas pipeline where any portion of such pipeline is9
geographically located within the state of Louisiana, and when such pipeline10
portion provides service within the state to one or more local distribution11
systems that in turn provide service to their customers.12
B. On and after March 10, 2014, if the Federal Energy Regulatory13
Commission approves a proposal to abandon an interstate natural gas pipeline,14
then such pipeline portion within the state shall be considered an intrastate15
natural gas pipeline and a public utility as of the date of such approval. As an16
intrastate natural gas pipeline, the pipeline shall be subject to the jurisdiction17 SB NO. 525
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of the Louisiana Public Service Commission.1
C. An applicant filing a proposal with the Federal Energy Regulatory2
Commission seeking abandonment of an interstate natural gas pipeline that is3
subject to the provisions of this Section shall provide written notice and a copy4
of the application to the Louisiana Public Service Commission. Upon the5
approval and issuance of an abandonment order by the Federal Energy6
Regulatory Commission, the applicant shall provide written notice and a copy7
of such order to the Louisiana Public Service Commission.8
D. Thereafter, any abandonment proceeding for such pipeline portion9
in Louisiana shall be governed pursuant to applicable rules, regulations, and10
orders of the Louisiana Public Service Commission. No such abandonment11
shall be deemed effective until the applicant has complied with the Louisiana12
Public Service Commission's rules, regulations, and orders, and all other13
applicable state and federal agency regulations.14
E. The provisions of this Section shall be in addition to the requirements15
of R.S. 30:555.16
Section 2. This Act shall become effective upon signature by the governor or, if not17
signed by the governor, upon expiration of the time for bills to become law without signature18
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If19
vetoed by the governor and subsequently approved by the legislature, this Act shall become20
effective on the day following such approval.21
The original instrument was prepared by Sharon F. Lyles. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Ann S. Brown.
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 SB NO. 525
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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 defines "interstate natural gas pipeline" as used in proposed law to mean an
interstate natural gas pipeline where any portion of such pipeline is geographically located
within the state of Louisiana, and when such pipeline portion provides service within the
state to one or more local distribution systems that in turn provide service to their customers.
Proposed law provides that on and after March 10, 2014, if the Federal Energy Regulatory
Commission (FERC) approves a proposal to abandon an interstate natural gas pipeline, then
such pipeline portion within the state shall be considered an intrastate natural gas pipeline
and a public utility as of the date of such approval and is subject to the jurisdiction of the
Louisiana Public Service Commission (LPSC).
Proposed law requires an applicant who files a proposal with the FERC proposing to
abandon an interstate natural gas pipeline subject to the provisions of proposed law to
provide written notice and a copy of its application to the LPSC. Further, requires applicant
to provide written notice and a copy of any FERC abandonment order upon issuance to the
LPSC.
Proposed law provides that after issuance of a FERC order, any abandonment proceeding
for such pipeline portion in Louisiana is governed by the applicable rules, regulations, and
orders of the LPSC. Provides that no such abandonment is effective until the applicant
complies with the LPSC's rules, regulations, and orders, and all other applicable state and
federal agency regulations.
Proposed law provides that its provisions are in addition to the requirements of R.S. 30:555.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 45:302.1)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation,
Highways, and Public Works to the original bill
1. Defines "interstate natural gas pipeline" to mean an interstate natural gas
pipeline where any portion of such pipeline is geographically located within
the state of Louisiana, and when such pipeline portion provides service
within the state to one or more local distribution systems which in turn
provide service to its customers.
2. Requires that on and after March 10, 2014, if the FERC approves a proposal
to abandon an interstate natural gas pipeline, then such pipeline portion
within the state shall be considered an intrastate natural gas pipeline and a
public utility as of the date of such approval and shall be subject to the
jurisdiction of the LPSC.
3. Requires an applicant filing a proposal with the FERC which seeks to
abandon an interstate natural gas pipeline subject to the provisions of
proposed law to provide written notice and a copy of its application to the
LPSC. Further, requires applicant to provide written notice and a copy of a
FERC abandonment order upon approval and issuance to the LPSC.
4. Provides that after issuance of a FERC abandonment order, any abandonment SB NO. 525
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
proceeding for such pipeline portion in Louisiana is governed by the
applicable rules, regulations, and orders of the LPSC. Provides that no such
abandonment is effective until the applicant complies with the LPSC's rules,
regulations, and orders, and all other applicable state and federal agency
regulations.
5. Provisions of proposed law are in addition to the requirements of R.S.
30:555.
6. Changes effective date to governor's signature.
Senate Floor Amendments to engrossed bill
1. Makes technical changes.