The Federal Energy Regulatory Commission (FERC) recently approved a Stipulation and Consent Agreement with Georgia-Pacific Crossett LLC (GPC), enforcing a $1.2 million civil penalty. The case is an impactful lesson for natural gas corporations owning interstate natural gas pipelines or jurisdictional facilities that fall under certificates of public convenience and necessity under Section 7(c) of the Natural Gas Act (NGA).
According to the stipulation, GPC was found liable as it abandoned jurisdictional facilities without acquiring the proper authorisation and for submitting an incomplete application. FERC has shown its willingness to strictly enforce regulations in order to ensure compliance, causing reverberations throughout the natural gas industry.
As a result of this verdict, companies operating within the sector should be acutely aware of the potential for significant financial penalties should they fail to abide by regulatory rules. This underscores the importance of seeking proper authorization before making alterations to jurisdictional facilities or operations, and maintaining thorough and accurate documentation when submitting applications and compliance reports.
The enforcement action also sets a precedent in dealing with violations of this nature, providing a wake-up call to other businesses within the natural gas sector to enhance their compliance measures. In response, many industry players are already reviewing their protocols and procedures to ensure they align with FERC’s regulatory framework.
In essence, this landmark decision underscores the need for a robust compliance strategy – one that meticulously adheres to the provisions of the Natural Gas Act. Performing periodic audits and ensuring proper filing are now more than mere suggestions; they form the foundation of a sound and compliant business practice.