Government Oversight

Federal and state regulations mandate how gas storage facilities are constructed and operated. If a storage facility will be involved in shipping gas across state lines in interstate commerce, the Federal Energy Regulatory Commission (FERC) is the agency with primary oversight. If the facility will provide service only within a particular state, then state regulatory agencies control construction, development, and operation of the facility for intrastate commerce.

In the case of the FERC, the federal agency authorizes pipeline siting, construction, and operation, if the storage facility is determined by the agency to serve the public convenience and necessity. Additionally, other factors and considerations are reviewed to be in accordance with applicable laws governing the environment and wildlife, including the National Environmental Policy Act, the Endangered Species Act, the Fish and Wildlife Coordination Act, Clean Water Act, Clean Air Act, Migratory Bird Treaty Act, and other such legislation. As lead federal agency, the FERC will have the responsibility to assure compliance with these laws and the related regulations.

The U.S. Army Corps of Engineers will also review the project for compliance with the Clean Water Act, working with the FERC in the project review and permitting.

Within the U.S. Environmental Protection Agency’s oversight for storage projects are programs involving underground injection control, air, and waste.

Once gas pipeline and storage projects are permitted and become operational, safety is regulated, monitored, and enforced by the U.S. Department of Transportation and its Office of Pipeline Safety under regulations of the 1968 Natural Gas Pipeline Safety Act.

At the state level, there are additional rules and regulations that apply to natural gas storage development and operation, but they vary based on each state’s laws and regulatory oversight. In Mississippi, for example, the Mississippi Oil and Gas Board, Mississippi Department of Environmental Quality, and the Mississippi Department of Water Resources have jurisdiction over certain aspects of underground storage and pipeline developments. If state lands are involved, the State Land Department of Mississippi manages state land and resources consistent with sound management, conservation, and business principles. Smith County will have jurisdiction over air quality control. Smith County will have zoning jurisdiction.