Adley (SB 525) Act No. 310
Prior law prohibited 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. Authorized the commissioner to 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. Authorized the
commissioner 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.
New law defines "interstate natural gas pipeline" as used in new law to mean an interstate
natural gas pipeline where any portion of such pipeline is geographically located within the
state of Louisiana, and when the pipeline portion provides service within the state to one or
more local distribution systems that in turn provide service to their customers.
New 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
the pipeline portion within the state is to be considered an intrastate natural gas pipeline and
a public utility as of the date of the approval and is subject to the jurisdiction of the
Louisiana Public Service Commission (LPSC).
New law requires an applicant who files a proposal with the FERC proposing to abandon an
interstate natural gas pipeline subject to new 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.
New 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 abandonment is effective until the applicant complies
with the LPSC's rules, regulations, and orders, and all other applicable state and federal
agency regulations.
New law provides that its provisions are in addition to the requirements of R.S. 30:555.
New law does not apply if the owner or operator of the interstate pipeline seeking
abandonment has done all of the following items:
(1)Reached a written agreement with the existing customers providing 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 this agreement as an uncontested settlement with FERC and the commission
has issued a final order approving the uncontested settlement without change and the
settlement is no longer subject to appeal.
(3)Provided a copy of the uncontested settlement agreement and the final order of the
FERC to the LPSC.
Effective upon signature of the governor (May 28, 2014).
(Adds R.S. 45:302.1)