News 
2005
| Statement: November 17, 2005 |  View Printable PDF Version |
Statement of Chairman Joseph T. Kelliher on hurricane
recovery assistance
"Hurricanes Katrina and Rita did severe damage to our energy
infrastructure. Twenty percent of U.S. natural gas supply comes
from the offshore Gulf, and much of that production remains shut
in because of infrastructure damage caused by the hurricanes.
That loss of production has been contributing to high natural
gas prices.
"Our action today will speed recovery from the hurricanes,
and help bring additional gas supplies to market just when consumers
need them the most.
"The order temporarily waives certain requirements to expedite
the construction of natural gas infrastructure and mitigate supply
disruptions.
"Specifically, the order increases cost caps for projects
that may be constructed under the automatic authorization provision
of Part 157 blanket certificate regulations from $8 to $16 million,
and under the prior notice provisions from $22 to $50 million.
The increased limits will apply to projects providing increased
or alternative uses for natural gas supplies.
"The order also expands the definition of "eligible facilities"
that can be constructed under blanket certificates to include
mainline facilities; extensions of mainline facilities, including
compression and looping, that alter the capacity of a mainline;
and temporary compression that raises the capacity of a mainline.
"The temporary waivers and expanded eligibility standards
will apply only to those projects constructed and placed into
service by October 31, 2006.
"This action follows on the heels of Commission approval
of emergency orders authorizing more efficient use of our existing
gas infrastructure. We are focused on natural gas prices and we
doing what we can do to help in the recovery process. We note
that the decrease in the amount of Gulf gas production that is
shut in is in part the result of some of our emergency orders."
| View Printable PDF Version |
