Douglas A. Sipe Outreach Manager Outreach Manager Division of Gas-Environment and Engineering Federal Energy Regulatory Commission Office of Energy Projects Land Agent Training IRWA Calgary, June 2010

Who is FERC? FERC is an independent federal regulatory agency that: FERC is an independent federal regulatory agency that:  Regulates the interstate transmission of natural gas (siting & rates); electricity and oil (rates only);  Reviews proposals to build interstate natural gas pipelines and liquefied natural gas (LNG) terminals, and natural gas storage fields  Licenses and inspects non-federal hydropower projects Office of Energy Projects FERC

FERC Organization Chart FERC Office of Energy Projects Chairman Jon Wellinghoff Commissioner John R. Norris Commissioner Philip D. Moeller Commissioner Marc Spitzer Commissioner Cheryl LaFleur Energy Projects Electric Reliability External Affairs Energy Market Regulation Enforcement Energy Policy & Innovation Administrative Litigation Administrative Law Judges Executive Director General Counsel Secretary

FERC’s Siting Authority Section 3 of the Natural Gas Act Section 3 of the Natural Gas Act  Determination of consistency with the public interest Section 7 of the Natural Gas Act Section 7 of the Natural Gas Act  Determination of public convenience and necessity Energy Policy Act of 2005 Energy Policy Act of 2005  Assigns FERC exclusive siting authority—does not preempt other required federal authorizations  Mandates use of Pre-Filing Process for LNG terminals  Names FERC lead agency for NEPA review and coordinator of all federal authorizations FERC Office of Energy Projects

INFRASTRUCTURE BOOM (Certificated in the last 10 years) Pipelines Pipelines  106 Bcf/day of Capacity and 14,592 Miles Storage Facilities Storage Facilities  870 Bcf of Capacity LNG Facilities LNG Facilities  37 Bcf/day of Total Capacity FERC Office of Energy Projects

Land Agent Complaints/Training What is FERC’s View? What is FERC’s View? Was the industry caught off guard? Was the industry caught off guard? How widespread is the issue? How widespread is the issue? Has the industry improved stakeholder relations? Has the industry improved stakeholder relations? Keeping up with Technology? Keeping up with Technology? Why am I talking about this? Why am I talking about this? FERC Office of Energy Projects

Evolution Old School Old School  Right of Way Negotiations Environmental Regs Environmental Regs Location…Location…Location Location…Location…Location Land Use Land Use  Land/Water/Coastal Population Population  Strong Communities  The Last Mile/Demand Centers FERC Office of Energy Projects

Hello

Heightened Public Interest Congressional Interest Escalated Significantly Congressional Interest Escalated Significantly Increased calls to FERC’s Office of External Affairs and Office of Enforcement (Dispute Resolution Service) Increased calls to FERC’s Office of External Affairs and Office of Enforcement (Dispute Resolution Service) Filed letters and calls to FERC PM’s/Management Filed letters and calls to FERC PM’s/Management * Change… landowner calls now being referred to the Dispute Resolution Service * Change… landowner calls now being referred to the Dispute Resolution Service FERC Office of Energy Projects

The Landowners’ Perspective

Changed the World FERC Office of Energy Projects

Complaints Trespass…Eminent Domain (State vs. Fed)…“It’s a Done Deal”…Trust/Truth…”FERC won’t let us move”…Damage to property from surveyors…Lack of info… Abrupt easement signing dates… Agreements not complied with…FERC caped the amount of compensation… Leaving property unsecured…Surveyors performing unscheduled work (ex. hurts hunting farms)…Multiple land agents…If they would do what they said they were going to do…etc FERC Office of Energy Projects

Face of Your Company Either Building or Hurting the Reputation of the Company Company Philosophy and Purpose Don’t just blame the LAND AGENT The effect on the FERC Process (What Schedule?) Industry Needs to Adopt a Standard Code of Ethics…You are all Painted with the Same Brush FERC Office of Energy Projects

Training Push Industry is strengthening overall training Industry is strengthening overall training  INGAA's Commitment to Landowners Eight Steps to build and maintain strong positive relations with landownersEight Steps to build and maintain strong positive relations with landowners  Ambassador Training  IRWA Training Plan FERC Outreach FERC Outreach  Attend FERC Seminars FERC Office of Energy Projects

Expanding Outreach What is FERC Doing? State Outreach Initiative State Outreach Initiative Open House Open House Site Visits Site Visits Scoping/Comment Meetings Improvements Scoping/Comment Meetings Improvements Local, State, and Federal Elected Officials Meetings Local, State, and Federal Elected Officials Meetings Administrative Law Judge Hearings (Oregon) Administrative Law Judge Hearings (Oregon) What's Next?????? What's Next?????? FERC Office of Energy Projects

Project Team Know project details Explain the Process and “next steps” (e.g. surveys, compensation, construction, and eminent domain) Educate consumers on the NEED of the Project KNOW THE FERC PROCESS Recognize FERC’s Expectations and Role  Educate Stakeholders how to become involved in the FERC process (FERC Brochure) FERC Office of Energy Projects

FERC Misc. Jurisdiction 2.55, Blanket, 7C, Section 3… Pre-Filing/Traditional Right-of-way acquisition concurrent with FERC review process Tension between market forces and pre-filing process Use of state-granted eminent domain Availability of workforce FERC Office of Energy Projects

Calls to OEA/DRS How are landowner calls handled within FERC??? OEP Liaison OEP Liaison Calls are communicated between offices Calls are communicated between offices Two sides to every story Two sides to every story Log Communications Log Communications Resolve disputes in a timely manner Resolve disputes in a timely manner FERC Office of Energy Projects

Industry Promotion A Robust Stakeholder & Public Outreach Initiative A Robust Stakeholder & Public Outreach Initiative What is your Communication Plan? What is your Communication Plan? What is the Industry Training Protocol? What is the Industry Training Protocol? How is the Industry Tailoring their Message? How is the Industry Tailoring their Message? FERC Office of Energy Projects

Questions? Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC FERC Office of Energy Projects Douglas A. Sipe