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146 FERC ¶ 61,195
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Before Commissioners: Cheryl A. LaFleur, Acting Chairman;
Philip D. Moeller, John R. Norris,
and Tony Clark.
Houston Pipe Line Company LP

Docket No. CP14-13-000

ORDER ISSUING PRESIDENTIAL PERMIT AND GRANTING AUTHORIZATION
UNDER SECTION 3 OF THE NATURAL GAS ACT
(Issued March 20, 2014)
1.
On October 28, 2013, Houston Pipe Line Company LP (Houston Pipe Line) filed
an application seeking authorization under section 3 of the Natural Gas Act (NGA)1 and a
Presidential Permit to site, construct, operate, and maintain border-crossing facilities for
the export and/or import of natural gas at the international boundary between the
United States in Hidalgo County, Texas, and the Republic of Mexico in the vicinity of the
City of Reynosa, State of Tamaulipas.2
2.
For the reasons discussed below, the Commission will grant the requested
authorizations, subject to certain conditions.

1
2

15 U.S.C. § 717b (2012); 18 C.F.R. Part 153 (2013) (implementing regulations).

Authorization under section 3 of the NGA is necessary for the siting,
construction, or operation of facilities to import or export natural gas. In addition,
pursuant to Executive Order No. 10485, dated September 3, 1953 (18 Fed. Reg. 5397), as
amended by Executive Order No. 12038, dated February 3, 1978 (43 Fed. Reg. 4957), a
Presidential Permit also must be obtained for the portion of an import or export facility
crossing one of the United States international borders. In Delegation Order No.
00-004.00A, effective May 16, 2006, the Secretary of the U.S. Department of Energy
(DOE) renewed the delegation of authority to the Commission to grant or deny
authorization under section 3 of the NGA and, if applicable, a Presidential Permit for the
construction, operation, maintenance, or connection of import and export facilities. The
Commission has no authority to approve or disapprove applications to import or export
natural gas. The Secretary of Energy has delegated such authority to DOE's Assistant
Secretary for Fossil Energy.

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I.

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Background and Proposal

3.
Houston Pipe Line is a limited partnership formed under the laws of the State of
Delaware. Houston Pipe Line is also a wholly-owned indirect subsidiary of La Grange
Acquisition, L.P., which does business as Energy Transfer Company. Houston Pipe Line
owns and operates an extensive intrastate natural gas pipeline system, as defined in
section 2(16) of the Natural Gas Policy Act of 1978 (NGPA), including over 3,900 miles
of pipeline in Texas. Subject to the jurisdiction of the Railroad Commission of Texas,
Houston Pipe Line gathers, transports, stores, purchases, and sells natural gas produced in
the state of Texas. In addition to its intrastate services, Houston Pipe Line also provides
interstate transportation service under section 311 of the NGPA subject to the
Commission’s jurisdiction and Part 284, Subpart C of the Commission’s regulations.
4.
Houston Pipe Line requests NGA section 3 authorization and a Presidential Permit
to site, construct, operate, and maintain border-crossing facilities to transport natural gas
that it, an affiliate, or shipper on its system has been authorized by DOE’s Office of
Fossil Energy to export to Mexico or import from Mexico. While the facilities at the
border will be part of a project which will include the construction of an approximately
23-mile-long extension of Houston Pipe Line’s existing Edinburg Lateral, the lateral
extension (Edinburg Extension) is being constructed as part of Houston Pipe Line’s
intrastate system, and therefore, Houston Pipe Line is requesting NGA section 3
authorization and a Presidential Permit only for the approximately 703 feet of 24-inchdiameter pipeline that needs to be installed by horizontal directional drill (HDD) under
the Rio Grande River to reach the international border at the middle of the river.3 The
export/import facility will have a design capacity of approximately 140 million cubic feet
per day (MMcf/day) and a Maximum Allowable Operating Pressure (MAOP) of 1,300
pounds per square inch gauge (psig). However, Houston Pipe Line expects that the
border-crossing facilities will operate at approximately 850 psig.
5.
Houston Pipe Line’s Edinburg Extension will supply the border-crossing facilities
with gas from its intrastate system. Like the border-crossing facilities, the 23-mile-long,
24-inch-diameter Edinburg Extension will have an approximate capacity of 140
MMcf/day and a MAOP of 1,300 psig. The Edinburg Extension project will also include
the installation of a meter station and other auxiliary facilities. Houston Pipe Line
anticipates that the Edinburg Extension will eventually have interconnections with other
3

An affiliate of Houston Pipe Line will complete the HDD to install
approximately 603 feet of pipeline under the Rio Grande River on the Mexico side of the
border in the middle of the river. Houston Pipe Line’s affiliate will also construct a short
stub pipeline in Mexico from the HDD entry/exit point to the Pemex Pipeline, S.de R.L.
de C.V. (the Pemex Pipeline), to primarily fuel gas-fired electric generation plants and
supply potential industrial customers in northern Mexico. All construction activities will
be subject to the jurisdiction of the Republic of Mexico.

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intrastate and interstate pipelines and markets. It is anticipated that the Edinburg
Extension will transport predominantly Texas-sourced gas to the border-crossing
facilities, but it may also be used to transport non-Texas-sourced gas in interstate
commerce under section 311 of the NGPA.
II.

Public Notice, Interventions, and Comments

6.
Notice of Houston Pipe Line’s application was published in the Federal Register
on November 18, 2013 (78 Fed. Reg. 69,078). Calpine Energy Services, L.P. filed a
timely motion to intervene. Timely, unopposed motions to intervene are granted by
operation of Rule 214 of the Commission’s Rules of Practice and Procedure. 4 No
protests or adverse comments were filed.
III.

Consultation with Secretaries of State and Defense

7.
On December 3, 2013, the Commission sent copies of the application and a draft
Presidential Permit to the Secretaries of State and Defense for their recommendations.
Replies on behalf of the Secretary of State filed January 31, 2014, and the Secretary of
Defense filed January 14, 2014, indicate no objection to the issuance of the requested
Presidential Permit.5
IV.

Discussion
A.

Public Interest

8.
Because the proposed border-crossing facilities will be used to export and/or
import natural gas across the United States/Mexico international border, construction and
operation of the facilities is subject to the Commission’s jurisdiction under section 3 of
the NGA and issuance of a Presidential Permit.
9.
Section 3 provides for the Commission’s approval of an application under that
section “unless . . . it finds that the proposed exportation or importation will not be
consistent with the public interest.”6 Under its section 3 authority, the Commission may
also apply terms and conditions as necessary and appropriate to ensure that the proposed
4

18 C.F.R. § 385.214(c) (2013).

5

Executive Order No. 10485, 18 Fed. Reg. 5397 (September 9, 1953), requires
that the Commission obtain favorable recommendations of the Secretaries of State and
Defense prior to issuing a Presidential Permit authorizing the construction of facilities at
the borders of the United States for the exportation or importation of natural gas.
6

15 U.S.C. § 717b(a) (2012).

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siting, construction, and operation of import and export facilities are not inconsistent with
the public interest.7
10.
NGA section 3 further provides that the exportation and importation of natural gas
between the United States and “a nation with which there is in effect a free trade
agreement requiring national treatment for trade in natural gas, shall be deemed to be
consistent with the public interest, and applications for such importation and exportation
shall be granted without modification or delay.”8 The United States and Mexico are both
signatories to the North American Free Trade Agreement (NAFTA).9 The bordercrossing facilities are needed to export gas to meet the expanding fuel demand for power
generation and industrial activity in Mexico, and authorization for construction of the
facilities therefore will promote national economic policy by reducing barriers to foreign
trade and stimulating the flow of goods and services between the United States and
Mexico by facilitating the transportation of natural gas imports and exports authorized by
DOE’s Office of Fossil Energy.10
11.
Construction and operation of the border-crossing facilities will have minimal
impact on landowners. The construction activities will temporarily disturb 4.1 acres of
land of which only 0.81 acres will be permanently maintained by Houston Pipe Line for
operation and maintenance purposes. Houston Pipe Line has obtained all easements
required to perform all construction activities on lands in the United States.11 After
construction, Houston Pipe Line will restore the disturbed areas in accordance with
Commission guidelines. Further, as discussed below, this order’s authorization is subject
7

Id.

8

15 U.S.C. § 717b(c) (2012). We note that although the current intent is to use
the authorized facility to export domestic gas into Mexico, Houston Pipe Line is also
seeking authorization to use the border-crossing facilities to import gas from Mexico,
should service for the importation of authorized gas be desired in the future.
9

Pub. L. No. 103-182, 107 Stat. 2057 (1993); Implementation of the North
American Free Trade Agreement Act, Executive Order No. 12889, 58 Fed. Reg. 69,681
(Dec. 27, 1993).
10

See, e.g., NET Mexico Pipeline Partners, LLC, 145 FERC ¶ 61,112, at P 14
(2013); El Paso Natural Gas Company, 140 FERC ¶ 61,174, at P 10 (2012).
11

While Houston Pipe Line does not anticipate the need for any further easement
negotiations regarding the border-crossing facilities, we note that an authorization under
section 3 of the NGA, unlike a certificate issued under section 7 of the NGA, does not
enable the holder of the authorization to acquire necessary property rights by the exercise
of the right of eminent domain.

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to conditions based on the Commission’s environmental review of Houston Pipe Line’s
proposal to mitigate any adverse environmental impacts.
12.
In view of the above considerations, the Commission finds that the approval of
Houston Pipe Line’s proposed border-crossing facilities for the exportation and/or
importation of natural gas is not inconsistent with the public interest. Therefore, the
Commission will issue a Presidential Permit, set forth in Appendix B to this order, and
NGA section 3 authorization to site, construct, operate, and maintain the proposed
border-crossing facilities, subject to the environmental conditions in Appendix A to this
order.
B.

Environmental Analysis

13.
On December 18, 2013, the Commission issued a Notice of Intent to Prepare an
Environmental Assessment for the Proposed 24-Inch Border Crossing Project and
Request for Comments on Environmental Issues (NOI). The NOI was mailed to
interested parties including federal, state, and local officials; agency representatives;
environmental and public interest groups; Native American tribes; local libraries and
newspapers; and affected property owners.
14.
We received written comments in response to the NOI from the International
Boundary and Water Commission, United States Section (USIBWC).12 The USIBWC
states that due to the location of the border-crossing facilities, the project must be
licensed by the USIBWC. The USIBWC states that Houston Pipe Line had initiated the
USIBWC’s licensing process but that the USIBWC needed additional documentation,
including Commission staff’s environmental assessment (EA), to complete USIBWC’s
environmental review.13
15.
To satisfy the requirements of the National Environmental Policy Act, our staff
prepared an EA for Houston Pipe Line’s proposal. The EA was placed into the public
record on February 20, 2014. The analysis in the EA addresses geology, soils, water
resources, wetlands, vegetation, fisheries, wildlife, threatened and endangered species,
land use, cultural resources, air quality, noise, safety, cumulative impacts, and
alternatives.
12
13

USIBWC January 23, 2014 Comments.

Environmental Condition No. 8 in Appendix A to this order conditions
authorization for Houston Pipe Line to commence construction of the border-crossing
facilities on its submission of documentation that it has received each applicable
authorization required under federal law or evidence that it has been granted a waiver.

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16.
As discussed in the EA, Houston Pipe Line would employ a HDD crossing method
underneath the Rio Grande River, which would avoid direct impacts on the sensitive
environmental resources associated with this waterbody. The HDD will consist of a
703-foot-long segment of 24-inch-diameter natural gas pipeline on the United States side
of the international boundary in Hidalgo County, Texas, and about 603 feet of the same
diameter pipeline extending south into Mexico. Construction of the border-crossing
facilities within the United States will require a total temporary disturbance of about
4.1 acres of land. Following construction, Houston Pipe Line will retain about 0.81 acre
for operation of the project facilities.
17.
The EA states that Houston Pipe Line’s proposed HDD would be at an alignment
depth of 25 feet beneath the Rio Grande River, and concluded that a successful HDD of
the river would result in little or no impact on this waterbody or biological resources.
The EA also finds that Houston Pipe Line’s proposed project would not significantly
impact vegetation, endangered species, air quality, or cultural resources. Houston Pipe
Line will implement several measures, as described in its Directional Drill Contingency
Plan, to minimize the potential of any drilling fluid entering the Rio Grande River during
the HDD.
18.
Houston Pipe Line will also construct and operate a 23-mile-long nonjurisdictional extension of its Edinburg Lateral (Edinburg Extension) to interconnect its
intrastate pipeline system with the border-crossing facilities. Houston Pipe Line’s
construction of the Edinburg Extension is subject to the jurisdiction of the Railroad
Commission of Texas. While the related non-jurisdictional facilities are not subject to
the Commission’s review procedures, the EA identifies the pipeline construction
procedures that would be used to construct the non-jurisdictional facilities and presents
the known impacts on geology and soils, wetlands, waterbodies, wildlife, vegetation, land
use, cultural resources, air quality, and noise.14
19.
Based on the analysis in the EA, we conclude that if constructed and operated in
accordance with Houston Pipe Line’s application and supplements, and in compliance
with the environmental conditions in Appendix A to this order, our approval of this
proposal would not constitute a major federal action significantly affecting the quality of
the human environment.
20.
Any state or local permits issued with respect to the jurisdictional facilities
authorized herein must be consistent with the conditions of this authorization. The
Commission encourages cooperation between interstate pipelines and local authorities.
However, this does not mean that state and local agencies, through application of state or

14

EA at 24-27.

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local laws, may prohibit or unreasonably delay the construction of facilities approved by
this Commission.15
V.

Conclusion

21.
At a hearing held on March 20, 2014, the Commission on its own motion,
received and made part of the record all evidence, including the application, supplements,
and exhibits thereto, submitted in support of the authorizations sought herein, and upon
consideration of the record,
The Commission orders:
(A) A Presidential Permit and NGA section 3 authorization are issued
authorizing Houston Pipe Line to site, construct, operate, and maintain border-crossing
facilities to export and/or import natural gas, as described and conditioned in this order,
subject to the conditions of the Presidential Permit and compliance with the
environmental conditions in Appendix A to this order.
(B) Houston Pipe Line shall sign and return the testimony of acceptance of all
provisions, conditions, and requirements of the Presidential Permit to the Secretary of the
Commission within 30 days of the issuance of this order.
(C) The authorized export and/or import facilities shall be completed and
placed in service within one year of the date of issuance of this order.
(D) Houston Pipe Line shall notify the Commission's environmental staff by
telephone, email, and/or facsimile of any environmental noncompliance identified by
other federal, state, or local agencies on the same day that such agency notifies

15

See, e.g., Schneidewind v. ANR Pipeline Co., 485 U.S. 293 (1988); National
Fuel Gas Supply v. Public Service Commission, 894 F.2d 571 (2d Cir. 1990); Iroquois
Gas Transmission System, L.P., 52 FERC ¶ 61,091 (1990); 59 FERC ¶ 61,094 (1992);
and Dominion Transmission, Inc., 141 FERC ¶ 61,240, at P 68 (2012) (finding “state and
local regulation is preempted by the NGA to the extent they conflict with federal
regulation, or would delay the construction and operation of facilities approved by this
Commission.”).

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Houston Pipe Line. Houston Pipe Line shall file written confirmation of such notification
with the Secretary of the Commission within 24 hours.
By the Commission.
(SEAL)

Kimberly D. Bose,
Secretary.

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APPENDIX A

Environmental Conditions
As recommended in the environmental assessment (EA), this authorization includes the
following conditions:
1.

Houston Pipe Line shall follow the construction procedures and mitigation
measures described in its application and supplements, including responses to staff
data requests, and as identified in the EA, unless modified by the Order. Houston
Pipe Line must:
a.
b.
c.
d.

2.

request any modification to these procedures, measures, or conditions in a
filing with the Secretary of the Commission (Secretary);
justify each modification relative to site-specific conditions;
explain how that modification provides an equal or greater level of
environmental protection than the original measure; and
receive approval in writing from the Director of the Office of Energy
Projects (OEP) before using that modification.

The Director of OEP has delegated authority to take whatever steps are necessary
to ensure the protection of all environmental resources during activities associated
with the construction and operation of the project. This authority shall allow:
a. the modification of conditions of the Order; and
b. the design and implementation of any additional measures deemed
necessary (including stop-work authority) to assure continued compliance
with the intent of the environmental conditions as well as the avoidance or
mitigation of adverse environmental impact resulting from project
construction and operation.

3.

Prior to any construction of facilities, Houston Pipe Line shall file an
affirmative statement with the Secretary, certified by a senior company official,
that all company personnel, environmental inspectors (EI), and contractor
personnel will be informed of the EI’s authority and have been or will be trained
on the implementation of the environmental mitigation measures appropriate to
their jobs before becoming involved with construction and restoration activities.

4.

The authorized facility locations shall be as shown in the EA. As soon as they
are available, and before the start of construction, Houston Pipe Line shall file
with the Secretary any revised construction workspace configuration drawings at a

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scale not smaller than 1:6,000 with station positions for all activities approved by
the Order. All requests for modifications of environmental conditions of the Order
or site-specific clearances must be written and must reference locations designated
on these alignment maps/sheets.
5.

Houston Pipe Line shall file with the Secretary detailed alignment maps/sheets and
aerial photographs at a scale not smaller than 1:6,000 identifying all route
realignments or facility relocations, and staging areas, pipe storage yards, new
access roads, and other areas that would be used or disturbed and have not been
previously identified in filings with the Secretary. Approval for each of these
areas must be explicitly requested in writing. For each area, the request must
include a description of the existing land use/cover type, documentation of
landowner approval, whether any cultural resources or federally listed threatened
or endangered species would be affected, and whether any other environmentally
sensitive areas are within or abutting the area. All areas shall be clearly identified
on the maps/sheets/aerial photographs. Each area must be approved in writing by
the Director of OEP before construction in or near that area.
This requirement does not apply to extra workspace allowed by the FERC Upland
Erosion Control, Revegetation, and Maintenance Plan and/or minor field
realignments per landowner needs and requirements which do not affect other
landowners or sensitive environmental areas such as wetlands.
Examples of alterations requiring approval include all route realignments and
facility location changes resulting from:
a.
b.
c.
d.

6.

implementation of cultural resources mitigation measures;
implementation of endangered, threatened, or special concern species
mitigation measures;
recommendations by state regulatory authorities; and
agreements with individual landowners that affect other landowners or
could affect sensitive environmental areas.

Within 60 days of the acceptance of the Authorization and before
construction begins, Houston Pipe Line shall file an Implementation Plan with
the Secretary for review and written approval by the Director of OEP describing
how Houston Pipe Line will implement the mitigation measures required by the
Commission Order. Houston Pipe Line must file revisions to the plan as schedules
change. The plan shall identify:
a.

how Houston Pipe Line would implement the construction procedures and
mitigation measures described in its application and supplements (including

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Docket No. CP14-13-000

b.

c.

d.
e.

f.
g.
h.

responses to staff data requests), identified in the EA, and required by the
Order;
how Houston Pipe Line would incorporate these requirements into the
contract bid documents, construction contracts (especially penalty clauses
and specifications), and construction drawings so that the mitigation
required at each site is clear to onsite construction and inspection
personnel;
the number of EIs assigned and how the company would ensure that
sufficient personnel are available to implement the environmental
mitigation;
company personnel, including EIs and contractors, who would receive
copies of the appropriate material;
the location and dates of the environmental compliance training and
instructions Houston Pipe Line would give to all personnel involved with
construction activities and restoration (initial and refresher training as the
project progresses and personnel change);
the company personnel (if known) and specific portion of Houston Pipe
Line’s organization having responsibility for compliance;
the procedures (including use of contract penalties) Houston Pipe Line will
follow if noncompliance occurs; and
for each discrete facility, a Gantt or PERT chart (or similar project
scheduling diagram), and dates for:
(1)
(2)
(3)
(4)

7.

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the completion of all required surveys and reports;
the environmental compliance training of onsite personnel;
the start of construction; and
the start and completion of restoration.

Beginning with the filing of its Implementation Plan, Houston Pipe Line shall file
updated status reports with the Secretary on a biweekly basis until all
construction and restoration activities are complete. On request, these status
reports will also be provided to other federal and state agencies with permitting
responsibilities. Status reports shall include:
a. an update on Houston Pipe Line’s efforts to obtain the necessary federal
authorizations;
b. the construction status of the project, work planned for the following
reporting period, and any schedule changes for stream crossings or work in
other environmentally sensitive areas;
c. a listing of all problems encountered and each instance of noncompliance
observed by the EI(s) during the reporting period (both for the conditions
imposed by the Commission and any environmental conditions/permit
requirements imposed by other federal, state, or local agencies);

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d. a description of corrective actions implemented in response to all instances
of noncompliance, and their cost;
e. the effectiveness of all corrective actions implemented;
f. a description of any landowner/resident complaints which may relate to
compliance with the requirements of the Order, and the measures taken to
satisfy their concerns; and
g. copies of any correspondence received by Houston Pipe Line from other
federal, state, or local permitting agencies concerning instances of
noncompliance, and Houston Pipe Line’s response.
8.

Prior to receiving written authorization from the Director of OEP to
commence construction of any project facilities, Houston Pipe Line shall file
with the Secretary documentation that it has received all applicable authorizations
required under federal law (or evidence of waiver thereof).

9.

Houston Pipe Line must receive written authorization from the Director of OEP
before placing the project into service. Such authorization will only be granted
following a determination that rehabilitation and restoration of the facility sites
and other areas affected by the project are proceeding satisfactorily.

10.

Within 30 days of placing the authorized facilities in service, Houston Pipe
Line shall file an affirmative statement with the Secretary, certified by a senior
company official:
a.

b.



that the facilities have been constructed in compliance with all applicable
conditions, and that continuing activities will be consistent with all
applicable conditions; or
identifying which of the conditions Houston Pipe Line has complied with
or will comply with. This statement shall also identify any areas affected
by the project where compliance measures were not properly implemented,
if not previously identified in filed status reports, and the reason for
noncompliance.

Prior to construction, Houston Pipe Line shall file with the Secretary a revised
Directional Drill Contingency Plan, for review and approval by the Director of the
OEP, which describes the methods Houston Pipe Line will employ to stabilize the
drilled hole through gravel horizons if they are encountered along the length of the
drill path.

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APPENDIX B

PERMIT AUTHORIZING HOUSTON PIPE LINE COMPANY LP
TO SITE, CONSTRUCT, AND OPERATE NATURAL GAS FACILITIES
AT THE INTERNATIONAL BOUNDARY
BETWEEN THE UNITED STATES AND MEXICO
FEDERAL ENERGY REGULATORY COMMISSION
Docket No. CP14-13-000
(Issued March 20, 2014)
Houston Pipe Line Company LP (Houston Pipe Line), a limited partnership
organized under the laws of the State of Delaware, filed on October 28, 2013, in Docket
No. CP14-13-000, an application pursuant to Executive Order Nos. 10485 and 12038, and
the Secretary of Energy’s Delegation Order No. 00-004.00A, requesting that the
Commission issue an order under section 3 of the Natural Gas Act (NGA) and a
Presidential Permit authorizing Houston Pipe Line to site, construct, operate, and
maintain new border-crossing pipeline facilities at the international boundary of the
United States and Mexico to accommodate the exportation and importation of natural gas
between the United States and Mexico.
By letter filed January 31, 2014, the Secretary of State, and by letter filed
January 14, 2014, the Secretary of Defense, favorably recommend that this Permit be
granted. The Federal Energy Regulatory Commission finds that the issuance of this
Permit authorizing the siting and Houston Pipe Line’s construction and operation of
import/export pipeline facilities at the international boundary with Mexico, is appropriate
and consistent with the public interest.
Pursuant to the provisions of Executive Order Nos. 10485 and 12038, dated
September 3, 1953 and February 3, 1978, respectively, the Secretary of Energy’s
Delegation Order No. 00-004.00A, effective May 16, 2006, and the Commission’s
regulations, permission is granted to Houston Pipe Line (Permittee) to operate and
maintain the natural gas facilities described in Article 2 below, upon the terms and
conditions of the Permit.
Article 1. It is expressly agreed by the Permittee that the facilities described herein
shall be subject to all provisions and requirements of this Permit. This Permit may be
modified or revoked by the President of the United States or the Federal Energy
Regulatory Commission and may be amended by the Federal Energy Regulatory
Commission upon proper application.

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Article 2. The following facilities are subject to this permit:
Approximately 703 feet of 24-inch-diameter pipeline with a Maximum
Allowable Operating Pressure (MAOP) of 1,300 pounds per square inch
gauge (psig) located in Hidalgo County, Texas, between the Edinburg
Extension and the international boundary with Mexico at the middle of the
Rio Grande River.
Article 3. The natural gas facilities subject to this Permit, or which may
subsequently be included herein by modification or amendment, may be utilized for the
transportation of natural gas between the United States and Mexico only in the amount, at
the rate, and in the manner authorized under section 3 of the Natural Gas Act.
Article 4. The operation and maintenance of the aforesaid facilities shall be
subject to the inspection and approval of representatives of the United States. The
Permittee shall allow officers and employees of the United States, showing proper
credentials, free and unrestricted access to the land occupied by the facilities in the
performance of their official duties.
Article 5. If in the future, it should appear to the Secretary of the Defense that any
facilities or operations permitted hereunder cause unreasonable obstruction to the free
navigation of any of the navigable waters of the United States, the Permittee may be
required, upon notice from the Secretary of Defense, to remove or alter the same so as to
render navigation through such water free and unobstructed.
Article 6. The Permittee shall be liable for all damages occasioned to the property
of others by the operation or maintenance of the facilities, and in no event shall the
United States be liable for damages. The Permittee shall do everything reasonable within
its power to prevent or suppress fires on or near land occupied under this Permit.
Article 7. The Permittee agrees to file with the Commission, under oath and in
such detail as the Commission may require, such statements or reports with respect to the
natural gas exported, imported, or the facilities described herein, as the Commission may,
from time to time, request. Such information may be made available to any federal, state,
or local agency requesting such information.
Article 8. Neither this Permittee nor the facilities, nor any part thereof, covered by
this Permit shall be voluntarily transferred in any manner, but the Permit shall continue in
effect temporarily for a reasonable time in the event of the involuntary transfer of the
facilities by operation of law (including transfer to receivers, trustees, or purchasers under
foreclosure or judicial sale) pending the making of an application for a permanent Permit
and decision thereon, provided notice is promptly given in writing to the Commission

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accompanied by a statement that the facilities authorized by this Permit remain
substantially the same as before the involuntary transfer. The Permittee shall maintain
the facilities in a condition of repair for the efficient transportation of natural gas and
shall make all necessary renewals and replacement.
Article 9. Upon the termination, revocation, or surrender of this Permit, the
Commission shall determine which of the authorized facilities shall be removed and
which shall remain in place. The facilities authorized shall be removed within such time
as the Commission may specify, and at the Permittee’s expense. Upon failure of the
Permittee to comply with the Commission’s direction to remove any authorized facilities,
or any portion thereof, the Commission may direct that possession of the same be taken
and the facilities be removed at the Permittee’s expense, and the Permittee shall have no
claim for damages by reason of such possession or removal.
Article 10. The Permittee agrees that when, in the opinion of the President of the
United States, evidenced by a written order addressed to its holder of this Permit, the
safety of the United States demands it, the United States shall have the right to enter upon
and take possession of any of the facilities, or parts thereof, maintained or operated under
this Permit, and all contracts covering the transportation or sale of natural gas by means
of said facilities, to retain possession, management, and control thereof for such length of
time as may appear to the President to be necessary to accomplish said purposes, and then
to restore possession and control to the Permittee; and in the event that the United States
shall exercise such right it shall pay the Permittee just and fair compensation for the use
of said facilities upon the basis of a reasonable profit in time of peace, and the cost of
restoring said facilities to as good condition as existed at the time of taking over thereof,
less the reasonable value of any improvements that may be made thereto by the United
States and which are valuable and serviceable to the Permittee.
Article 11. This Permit is subject to any action which the Government of the
United States may in the future deem expedient or necessary to take in case any part of
the aforesaid facilities comes into the control of any foreign government.
Article 12. The Government of the United States shall be entitled to the same or
similar privileges as may by law, regulation, agreement, or otherwise, be granted by the
Permittee to any foreign government.
By direction of the Commission.

Kimberly D. Bose,
Secretary

 20140320-3016 FERC PDF (Unofficial) 03/20/2014

Document Content(s)
CP14-13-000.DOCX......................................................1-15