The Federal Energy Regulatory Commission (FERC) has a Shared Facilities Agreement (SFA) in place to provide a framework for shared use of facilities by pipeline companies. This agreement is crucial in regulating the construction, operation, and maintenance of interstate natural gas pipelines and related facilities.
The SFA outlines the terms and conditions for shared use of pipeline facilities such as compressor stations, gathering lines, storage facilities, and other related infrastructure. It ensures that pipeline companies can share facilities without compromising the safety, efficiency, and reliability of the natural gas transmission system.
The agreement sets requirements for shared facility design and operation, including safety management systems, emergency response plans, and maintenance procedures. It also addresses issues related to liability and insurance coverage for the shared facilities and specifies the process for resolving disputes between pipeline companies.
FERC requires pipeline companies to enter into SFAs as part of the certification process for interstate natural gas pipelines. The commission reviews and approves these agreements to ensure that they comply with federal regulations and protect the interests of all parties involved.
FERC recognizes that shared use of facilities can bring significant benefits to pipeline companies, such as lower costs and more efficient operations. However, it also recognizes the potential risks and challenges associated with sharing facilities. The SFA provides a mechanism for addressing these concerns and ensuring that pipeline companies can work together effectively and safely.
In conclusion, the FERC Shared Facilities Agreement is an important tool for regulating the construction, operation, and maintenance of interstate natural gas pipelines and related facilities. It provides a framework for shared use of pipeline facilities and ensures that pipeline companies can work together safely and efficiently. Pipeline companies must comply with the terms and conditions of the SFA as part of the certification process for their natural gas pipelines. By doing so, they can enjoy the benefits of shared facilities while minimizing the risks and challenges associated with such arrangements.