# Presentation: 529545

## LNG Permitting:You Want it When?

- Lauren H. O’Donnell
- Deputy Director, DG2E
- Office of Energy Projects

**Notes:**
Rather than do a case study and pick on any particular project, give a best case scenario and tell you where the process often hit the rocks.

Fair to say we still don’t have typical LNG Projects.  No two projects are alike so that comparisons are often not fair.  

For example, while we’re all proud of getting the Sabine Pass Project, which did not use the Pre-Filing process, approved in less than 12 months, I think it will be hard to duplicate, even on the Gulf coast.  Contrast that with sites on the East and West coasts.

## Happy Face LNG Co., LLC

- They Needed to Know How They Could Get Their Order in 9 Months

**Notes:**
We all know of project proponents that the like to put a big happy face on their projects, so our Best Case Project is the fictitious Happy Face LNG Co. 

Happy Face wanted to do everything right and they assured us that everyone in the Town loved them

We’re going to go over what has to happen for Happy Face and the FERC to meet that goal

## Happy Face Scenario

- Filing minus 11 months
**Happy Face meets with FERC staff**
**Happy Face commits to be **_**flexible**_** on the filing date!**
- Filing minus 10 months
**Happy Face submits draft RFP and contract to staff**
- Happy Face begins meeting with key stakeholders
- Happy Face sends out RFP, reviews proposals
- Happy Face sends draft PF request to staff

**Notes:**
In our scenario, the items bolded in the boxes are the challenges—do it right, we and Happy Face can expedite the process, do it wrong and the schedule starts to slip

-11 – As you can see, we often have issues right off the bat!  11 months is a give or take thing depending on circumstances, but WE determine that, not Happy Face.  That’s why they came to talk to us now.

-10 – Happy Face is using our template for its RFP and has addressed our general concerns in its contract.  

They’re on the ground talking to the agency personnel who will be assigned to the project.

Happy Face is talking to a couple possible pipelines about take-away capacity.  They understand that when they submit their PF request, their request or another company’s request must address the pipeline.

## Happy Face Scenario

- Filing minus 8 months
- Happy Face submits PF request and 3rd-party contractor proposals to Staff, and
**	****submits Letter of Intent to the USCG**
- Staff approves the use of the PF process
- Filing minus 7 months
- Happy Face holds open houses
- Staff approves the use of the PF process
- Staff starts scoping process
**Happy Face files the first of several iterations of draft resource reports**

**Notes:**
-8 – Since we’ve seen the submission of the letter of Intent to the USCG is crucial to the process.  The USCG is working very closely with us in the process and needs to start their work at the same time FERC does.  Other studies may be required, as well.

-7 – RRs start rolling in.  Getting stakeholders involved early means that data requests may include questions that are new and different.  Happy Face needs to understand that we and they need to be responsive to concerns or else we’ll wind up with a document that doesn’t serve all agencies needs.  Careful balance as lead agency to make EIS a “one size fits all” document and keep it on schedule.  can we may Our engineers have to start looking at that material early.

Happy Face understands that data needed for RR 13 needs to be developed must earlier than normal.  This is a must for Staff to keep a strict schedule for detailed cryogenic and safety reviews, and to interact with the Coast Guard.

## Happy Face Scenario

- Filing minus 2 months
**Happy Face files complete responses to all data requests**
**Staff begins preparation of on Prelim. DEIS**
- Filing
- Resource Reports meet minimum filing requirements
**Resource Reports address all issues, mitigation included**
**Application is adequate to allow Staff to complete Prelim. DEIS**

**Notes:**
Filing – in the PF request Happy Face committed to filing a complete application.  Complete doesn’t mean it just meets minimum filing requirements, it has to be complete enough to allow us to finish the Prelim. DEIS without having to send a data request.  Seeing way too many filings where there are still unresolved issues.

## Happy Face Scenario

- Filing plus 2 months
- Staff sends the Prelim. DEIS to cooperating agencies
- Filing plus 4 months
- Staff issues the DEIS
- Filing plus 6 months
**Address comments on the DEIS**
- Filing plus 8 months
- Staff issues the FEIS
- Filing plus 9-10 months
- Commission issues an Order

**Notes:**
+2 – We’re getting ready for the cryogenic tech conference and making final tweeks to other sections of the Prelim. DEIS

+4 –Happy Face is busy tying up loose ends with engineering, Coast Guard security review, hanging tight until the DEIS comes out

+6 – We are of course holding comment meetings and collecting comments on the DEIS.  It is the responsibility of Staff to address issues raised in comments.  
But in Happy Face’s best interest to track and offer responses to comments as well.  Theoretically, there won’t be any issues that we aren’t already aware of.

+8 – Assuming no new issues are raised, and Happy Face hasn’t changed its pipeline route, and the Coast Guard is finished with its security review CRUCIAL ITEM

+9 – Allows for 30 days between EPA notice of FEIS and Commission Order.  Dependent of Agenda schedule.

## Challenges We Can Manage

- Getting constructive stakeholder involvement and keeping people informed
- Identifying and resolving issues
- Maintaining constant contact with key agencies
- Timing of the submission of other permit applications

**Notes:**
Get Public Participation Plan rolled out and in use.

## Challenges Less Manageable

- Inability to access property
- Seasonal restrictions for environmental surveys
- Political process
- Workload of other agencies
- Issuance of other permits

**Notes:**
Some challenges may seem out of our control, doesn’t mean throw up your hands and let it be.  These issues need to be acknowledged, accounted for in schedules, and watched for any change in circumstances for better or worse

Pipeline portion of the projects are falling behind, not enough attention by the companies, less of an issue where the LNG and pipeline companies are not affiliated.

Other permits to watch include 404/401, CZMA, state siting process.  Possible legislation I spoke about earlier would address such as this.