FERC Issues Order On Rehearing for Cove Point LNG

FERC yesterday issued an Order On Rehearing regarding its June 16 order approving the Cove Point LNG terminal expansion.  The Commission’s Order On Rehearing denied rehearing to parties claiming that revaporized LNG would have adverse effects on interconnecting pipeline systems and end-users.  Explaining that “there is no scientific evidence that regasified LNG presents safety issues in a properly maintained gas distribution system,” FERC applied its Policy on Gas Quality and Interchangeability and determined that protesters had failed to prove that Cove Point’s existing gas quality provisions were unjust or unreasonable.  FERC also explained that the NGA provides for a hearing when an application seeks authorization under Sections 3 or 7, but that such hearings may be less formal than “trial-type evidentiary hearings.” FERC’s Order on Rehearing may be found in the e-Library  in Docket No. CP05-130.

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