RDCSB525 2073 4059
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Adley SB No. 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 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.
Proposed law provides that proposed law shall not apply if the owner or operator of the
interstate pipeline seeking abandonment has done all of the following:
(1)Reached a written agreement with the existing customers that provides for the
continued availability and supply of natural gas from the interstate pipeline or for the
supply and delivery of natural gas from alternative sources.
(2)Filed the agreement as an uncontested settlement with the Federal Energy Regulatory
Commission and the Federal Energy Regulatory Commission has issued a final order
approving such uncontested settlement without change and such settlement is no
longer subject to appeal.
(3)Provided a copy of the uncontested settlement agreement and the final order of the
Federal Energy Regulatory Commission to the Louisiana Public Service
Commission. RDCSB525 2073 4059
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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
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.
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Commerce to the
reengrossed bill.
1. Provided that proposed law shall not apply if the owner or operator of the
interstate pipeline seeking abandonment has done all of the following:
(a) Reached a written agreement with the existing customers that provides for
the continued availability and supply of natural gas from the interstate pipeline
or for the supply and delivery of natural gas from alternative sources.
(b) Filed the agreement as an uncontested settlement with the Federal Energy
Regulatory Commission and the Federal Energy Regulatory Commission has
issued a final order approving such uncontested settlement without change and
such settlement is no longer subject to appeal. RDCSB525 2073 4059
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(c) Provided a copy of the uncontested settlement agreement and the final order
of the Federal Energy Regulatory Commission to the Louisiana Public Service
Commission.