Regulatory Information
Who authorizes siting of LNG Facilities?
Under the Natural Gas Act, the Federal Energy Regulatory Commission (FERC) has primary jurisdiction over the siting and operation of onshore LNG facilities and offshore facilities in state waters, whereas the Coast Guard and the Maritime Administration (MARAD) have jurisdiction under the Deep Water Port Act for the siting and operation of offshore LNG facilities in Federal waters. Many states are questioning whether FERC has sole jurisdiction in the siting of LNG facilities, or whether states also have a legal part to play in protecting their citizens. The State of California is currently challenging FERC role in court, and FERC has asked Congress to give them sole authority in provisions of the current Energy Bill.
Who Oversees Safety of Facilities?
All LNG storage facility designs must comply with regulations as required by the Department of Transportation's (DOT) safety standards in Title 49 Code of Federal Regulations (CFR) Part 193 - Liquefied Natural Gas Facilities: Federal Safety Standards and National Fire Protection Association 59A - Standard for the Production, Storage and Handling of Liquefied Natural Gas. The Office of Pipeline Safety within the DOT is responsible for the oversight of these regulations.
In accordance with these federal safety standards, vapor-gas dispersion distances must be calculated to determine how far downwind a natural gas cloud could travel from an onshore storage facility and still be flammable. As required by these regulations, these exclusion zones must not reach beyond a property line where other development could occur. There is still a good deal of argument between engineers and safety experts about the size of these exclusion zones, and many do not believe that FERC is being adequately protective of human safety in their siting methods
Since a fire would burn with intense heat, each onshore LNG container and LNG transfer system must also have thermal exclusion zones established in accordance with Title 49, CFR, Part 193. These exclusion zones must be legally controlled by the LNG facility operator, or a government agency, to ensure adequate separation between members of the public and the heat from a fire.
Who Oversees Security of Facilities and Ships?
The Coast Guard has lead responsibility for LNG shipping and marine terminal security. In addition to federal agencies, state and local authorities (police and fire departments) provide security assistance at LN facilities.
Security measures for both onshore and offshore portions of marine terminals are required by Coast Guard regulations under the Maritime Transportation Security Act. Requirements for maintaining security of LNG import terminals are in the Coast Guard regulations under 33 CFR Part 105. The Coast Guard keeps other ships and boats from getting near LNG vessels while in transit or docked by enforcing Regulated Navigation Areas and security zones.
The Coast Guard performs a number of important security and safety checks before allowing an LNG tanker to enter a port and unload its LNG. These include:
- 96-hour advance notification of ship arrival,
- ship safety inspection,
- manifest and crew documentation,
- establishment of a safety zone around ships while en route and during unloading operations, and
- inspection of dock safety systems before allowing LNG to be unloaded Facilities are required to have a written Security Plan and an Emergency Response Plan.
Facilities are required to have a written Security Plan and an Emergency Response Plan. FERC, DOT, and Coast Guard require LNG companies to contact and coordinate procedures with local response organizations (local Emergency Planning Committee, local Fire Department, State Police, and local navigation and safety committees).
Many safety and security experts question whether the Coast Guard can truly ensure the complete safety of an LNG facility or tanker from all possible terrorist threats. This is one of the main reasons that many think LNG facilities should only be sited in remote locations.