LNG IMPORT PROJECTS: FERC REVIEW PROCESS

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1 LNG IMPORT PROJECTS: REVIEW PROCESS Terry L. Turpin, P.E. LNG Engineering Branch Federal Energy Regulatory Commission October 18, 2006

2 Overview Organizational Structure LNG Project Review Process Engineering Design Review Exclusion Zones Emergency Response Plan Cost-Sharing Plan Safety & Security Coordination with States 2

3 Chairman Kelliher (R) Commissioner Kelly (D) Commissioner Spitzer (R) Commissioner Moeller (R) Commissioner Wellinghoff (D) Secretary Energy Projects Energy Markets & Reliability Administrative Litigation Enforcement Executive Director External Affairs Administrative Law Judges General Counsel 3

4 OEP Organizational Structure Director J. Mark Robinson Deputy Director Robert J. Cupina Energy Infrastructure Policy Group Jeff C. Wright Assistant Director Management & Operations Thomas E. DeWitt Division of Pipeline Certificates Director - Berne L. Mosley Deputy Dir. - Vacant Division of Gas- Environment & Engineering Director - Richard R. Hoffmann Deputy Dir. Lauren H. O Donnell Division of Hydropower Licensing Director - Ann F. Miles Deputy Dir.- Edward A. Abrams Division of Hydropower Administration & Compliance Director - Joseph D. Morgan Deputy Dir. - Hossein Ildari Division of Dam Safety & Inspections Director Constantine G. Tjoumas Deputy Dir. Daniel J. Mahoney Certificates Branch 1 Michael J. McGehee Gas Branch 1 Michael J. Boyle Hydro East Branch 1 Vince E. Yearick Land Resource Branch John E. Estep Washington Office William H. Allerton Certificates Branch 2 William L. Zoller Gas Branch 2 Alisa M. Lykens Hydro East Branch 2 Mark A. Pawlowski Engineering & Jurisdiction Branch William Y. Guey-Lee Atlanta Regional Office Jerrold W. Gotzmer Gas Branch 3 Lonnie A. Lister Hydro West Branch 1 Jennifer Hill Biological Resources Branch George H. Taylor Chicago Regional Office Peggy A. Harding LNG Engineering Branch Terry L. Turpin Hydro West Branch 2 Timothy J. Welch New York Regional Office Charles Goggins LNG Compliance Branch Chris M. Zerby Portland Regional Office Harry T. Hall 4 San Francisco Regional Office Takeshi Yamashita

5 Timeline for LNG Project Review Process Applicant s Activities Submit PF letter Prepare Draft Resource Reports File At Start PF Review Review Draft Resource Reports & Prepare Prelim. DEIS Determine Application Complete Issue Draft EIS Issue Final EIS s Activities Issue Order (months) 5

6 LNG Project Review Process Start of Pre-Filing Process Scoping Meeting / Site Visit Data Requests, Analysis & Agency Coordination Notice of Application Interventions & Protests Safety & Engineering Cryogenic Design & Safety Review Technical Conference Waterway Suitability Assessment Review Issue DEIS Waterway Suitability Report Public Meeting / Comments Issue FEIS USCG Letter of Recommendation (issued independently) 6 Authorization / Denial

7 Multi-Agency Jurisdiction Interagency Agreement of February 2004 ensures integrated and concurrent review tank ship first valve Section 3 of the Natural Gas Act Lead Agency for Environmental Impact Statement pipeline USCG 33 CFR Part 127 DOT 49 CFR Part 193 Safety Standards USCG 33 CFR Part 105 Facility Security 7

8 Staff s Engineering Review Onshore Facility Review Cryogenic Design and Technical Review Report 13 Safety systems detection and control Exclusion Zones Thermal Radiation and Flammable Vapor Compliance with 49 CFR Part 193 and NFPA 59A Marine Safety Review Coordination w/ Coast Guard Cargo spill hazard analysis 8

9 Cryogenic Design Review Marine Facilities LNG Pumps LNG Vaporizers Compressors & Blowers Process Vessels Process Piping Systems Instrument Pneumatic System Instrumentation & Controls Fuel Gas System Storage Tanks Electrical Systems Seismic design review Operational reliability Training, Operation & Emergency Procedures Compliance with DOT & NFPA safety requirements 9

10 Exclusion Zones Title 49, CFR, Part 193: Federal Safety Standards for LNG Facilities establish siting criteria in terms of exclusion zones. Sec Thermal radiation protection Sec Flammable vapor-gas dispersion protection. Require that each LNG container and LNG transfer system must have a thermal and flammable vapor dispersion exclusion zone. Zones are calculated for design spills established by NFPA 59A: Standard for the Production, Storage, and Handling of LNG. 10

11 Thermal Radiation Exclusion Zones LNG Storage Tank Incident Flux (Btu/ft 2 hr) Exclusion Area 1,600 Outdoor assembly area occupied by 50 or more people. 3,000 Offsite structures used for occupancies or residences. 10,000 Property line that can be built upon. Vaporization, Process, or LNG transfer areas Incident Flux (Btu/ft 2 hr) Exclusion Area 1,600 Property line that can be built upon. 11

12 Vapor Dispersion Exclusion Zones Part requires that provisions be made to minimize the possibility of flammable vapors from a design spill from reaching a property line that can be built upon. Calculations are done to 2.5 percent average gas concentration (one half the lower flammability limit of LNG vapor). 12

13 Marine Traffic and Vessel Safety Compliance with 33 CFR Part 127 Letter of Intent to initiate U.S. Coast Guard Letter of Recommendation June 2005 NVIC / WSA Marine Safety Analysis Thermal Radiation and Flammable Vapor Hazards Vessel Traffic Congestion 13

14 Emergency Response Plan To be developed in coordination with the Coast Guard, state, county, and local emergency planning groups, fire departments, state and local law enforcement, and appropriate Federal agencies. Must include designated contacts with state and local emergency response agencies; procedures for notification of local officials and emergency response agencies; procedures for notifying residents and recreational users within areas of potential hazard; evacuation routes for residents and other public use areas that are within any transient hazard areas along the route of the LNG vessel transit; locations of permanent sirens and other warning devices; and an emergency coordinator on each LNG vessel to activate sirens and other warning devices. Must include a Cost-Sharing Plan 14 The ERP must be approved by prior to any final approval to begin construction

15 Cost-Sharing Plan Identifies mechanisms for funding all project-specific security/emergency management costs that may be imposed on state and local agencies The Cost-Sharing Plan (as part of the ERP) must be approved by prior to any final approval to begin construction 15

16 Safety & Security Coordination with States Governor designates an agency to consult with about state and local safety considerations The designated agency may file an advisory report within 30 days of filing of application Project Sponsor s Emergency Response Plan must involve state and local agencies 16

17 How to Comment Please send an original and two copies of your comment letter to: Magalie R. Salas, Secretary Federal Energy Regulatory Commission 888 First St., N.E., Room 1A Washington, DC Reference Docket No. PF on the original and both copies, and label one copy of your comments for the attention of the Gas Branch 2, DG2E. Comments may also be submitted electronically to the via the Internet on the s website. See the instructions at under the e-filing link. 17

18 LNG IMPORT PROJECTS: REVIEW PROCESS