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FERC Order No. 871-B

Client Updates

 

On May 4, FERC revised its final rule on when it will grant authorization  to proceed with the construction of natural gas pipeline facilities

Under Order 871-B, FERC will not grant authorization to proceed with construction until the earlier of: 

  1. the date a rehearing request is no longer pending; or

  2. 90 days after a rehearing request is deemed denied

The prohibition only applies if the rehearing request opposes the project

FERC also announced a general policy of staying the effectiveness of pipeline certificates during the 30 day rehearing period

A pipeline project may seek an exception from this policy upon showing “significant hardship”

“[Order No. 871-B] strikes a compromise that protects the interests of the parties affected by a new pipeline while also providing developers with the certainty needed to invest in energy infrastructure” -- FERC Chairman Richard Glick

 

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