FERC Judge Rejects WGL Environ Report as “Entirely Discredited”

In his Initial Decision considering the appropriate gas composition standards for the receipt of revaporized LNG into the Florida Gas Transmission system, FERC Administrative Law Judge Herbert Grossman rejected the evidence put forward by Florida local distribution companies that LNG could cause leaks in pipeline couplings. In an effort to support their allegations, the LDCs had submitted a report commissioned by Washington Gas Light that purportedly examined the potential impact of imported LNG from the Cove Point LNG terminal on couplings and seals on its local distribution system. Judge Grossman found that, with regard to assigning blame to LNG, the Environ Report commissioned by WGL was “entirely discredited” during the FGT hearings. Instead, he affirmed that the evidence indicated other factors likely could have contributed to the leaks on WGL’s system. The judge also held that the Environ Report was not an independent report, but rather “was predetermined by WGL and dictated to the expert in a series of emails.” The judge concluded that because there was insufficient evidence that LNG could result in coupling leaks, there was no “need for further testing or delay in implementing final [gas composition] standards” on FGT’s system.