RCA Requests Comments on Presentation on Commission Jurisdiction Over Natural Gas Storage Facilities


This letter requests comments on a presentation made at the Regulatory Commission of Alaska's (RCA March 24, 2009 public meeting.  At that public meeting, Department of Law (Law) personnel assigned to the RCA presented an analysis regarding whether the RCA has jurisdiction under AS 42.06 (Pipeline Act) over natural gas storage facilities located within Alaska.  The presentation is available at https://rca.alaska.gov/RCAWeb/Filings/FilingDetails.aspx?id=7dca6391-dafb-4c1f-b6d8-4c68897a600b.


Citing AS 42.06.630(16), the Law presentation concluded that an element of a pipeline or pipeline facility is subject to RCA jurisdiction provided it is:
  • part of a total system of pipe used by a pipeline carrier for transportation of gas for delivery, storage, or further transportation,
  • owned or operated by a pipeline carrier under a contract, agreement, or lease,
  • in this state, and
  • for hire and as a common carrier.


Law noted the fact-specific nature of any analysis of RCA jurisdiction over natural gas storage facilities, and presented several scenarios applying the above criteria.  RCA commissioners discussed the scenarios presented by Law, and discussed which scenario represented existing gas storage facilities in Alaska.   Transcripts of this discussion may be reviewed at https://rca.alaska.gov/RCAWeb/Dockets/DocketDetails.aspx?id=36a4148d-2178-4258-a1c9-43f1b12bfb0e.


The RCA requests comments on Law's conclusions regarding the legal basis for RCA jurisdiction over natural gas storage.  Commentors should discuss:
  • whether the commentor agrees or disagrees with Law's analysis of the criteria for determining if an element of a pipeline or pipeline facility is subject to RCA jurisdiction,
  • whether the commentor agrees or disagrees with Law's conclusions of RCA jurisdiction under each of the scenarios identified in the Law presentation,
  • other scenarios that demonstrate the RCA jurisdiction or jurisdictional limitations regarding natural gas storage facilities,
  • the applicability of Tesoro Alaska Petro. v. Kenai Pipe Line, 746 P.2d 896, 907 (Alaska 1987) to a determination of the RCA's jurisdiction over natural gas storage facilities, and
  • other factors the commentor considers relevant in assessing RCA jurisdiction over natural gas storage facilities.

lnterested persons may comment on the Law presentation and RCA jurisdiction over natural gas storage facilities by submitting written comments to the attention of the Robert M. Pickett, Chairman, Regulatory Commission of Alaska, 701 West Eighth Avenue, Suite 300, Anchorage, Alaska 99501. Comments must be received no later than 4 p.m., on May 1, 2009 and should reference Internal Docket I-09-008.


Dated: April 2, 2009   _________________________________
                                                                                                Robert M. Pickett, Chairman
                                                                                                Regulatory Commission of Alaska


Date Issued: 4/3/2009