Flow Level Pressure
Legislation could make US natural gas more readily available
Jul 16 2013
New legislation is being assessed in the US that could mean permits for natural gas pipelines are granted faster. The possible legislation is being considered by a House panel to see whether the move could help the growing industry in the US and increase the amount of natural gas used rather than more damaging fuels. If the legislation is passed it could result in cheaper bills for customers and help the country to reduce emissions.
The legislation - the Pompeo Bill - is being assessed by the House Energy and Commerce Committee and would result in the automatic approval of natural gas permits if no review is completed within a 90-day period from when environmental studies into the application are performed. Whilst a 90-day policy is already in place, there is currently no fallout from late application reviews.
As many of the more complicated applications can take an extended period to accurately review - some can take as long as a year - there has been opposition to the legislation. Some have made the cogent argument that forcing agencies to rush all reviews to avoid automatic granting of permission may mean they miss problems.
There is also the risk that some applications could be refused on the basis that they are too complicated to be accurately assessed within the 90-day period. Some opponents have suggested that this will cause natural gas pipeline projects that may previously have been approved to be denied, as there is not enough time to address all relevant concerns.
Many of the leaders of the natural gas industry have claimed that the current delays in application approval result in the abandonment of projects. This also results in monetary losses, which force companies to lay off workers.
Natural gas companies have argued that the Pompeo bill is likely to make natural gas more readily available throughout the UK, which could result in fewer homes and industries utilising coal for power generation. This could mean lower emissions and cheaper fuel options throughout the country.
Kathryn Klaber, chief executive of the Marcellus Shale Coalition, said: "Efforts like this will help ensure that more clean-burning and affordable natural gas is available for consumers, families and businesses across the entire nation in a safe and time-effective manner."
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