Louisiana 2014 2014 Regular Session

Louisiana Senate Bill SB525 Comm Sub / Analysis

                    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)