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EMD-79-23 1 (1979-01-12)

handle is hein.gao/gaobaayln0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.Q .5 ID IERGY ANO M INDALSr DiVIION B-118678 108337 JANUARY 1Z 1979 The Honorable Charles B. Curtis Chairman, Federal Energy A,15-) Regulatory Commission AL lt Dear Mr. Chairman: We have recently completed a review of Outer Continental Shelf (OCS) pipeline permitting and regulatory functions within the Federal Government. We found that the Federal ZneraX Regulatory Commission (FERC) was not aware of certain pipelines which appeare -o be subject to its responsibilities for enforcing nondiscriminatory oversight. This condition was due mainly to the lack of clarity under existing regulations for the classification of pipelines and the related split responsibilities between the U.S. Geolooical Survey and the Bureau of Land ManaaeAent for -granting permits--problems which are dealt with by the 19978 Amendments to the OCS Lands Act which expand FERC's regulatory authority. Because of this Nation's increasing reliance on the OCS for oil and gas resources and the resulting need to transport these resources to onshore markets, we believe effective imple- menting regulations need to be developed by FERC--working with the Department of the Interior--to ensure that the intent of Congress concerning nondiscriminatory access to all OCS pipe- lines is carried out. BACKGROUND In 1953 the OCS Lands Act was enacted by the Congress to enable the United States to develop and extract the natural re- sources of the OCS, particularly oil and natural gas. Under the Act, the Secretary of Interior promulgated regulations which created two types of pipelines: transportation lines and 'gathering lines. Transportation lines, which were authorized by section 5(c) of the Act, were subject to the requirement that they be operated without discrimination with respect to oil and natural gas produced from...submerged lands in the vicinity of the pipeline. The task of determining the proportionate access by leaseholders was assigned to the Interstate Commerce Commission with respect to oil and the Federal Power Commission 0032a EMD-79-23 (00863) 1

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