Eminent Domain at heart of a FERC Denial. Lawyers Read the Tea Leaves. 3 Points Informed Intel.

Which FERC denial triggered a lawyer brainstorming session?  The denial of “Jordan Cove Energy Project, L.P. (Jordan Cove) for authority under Section 3 of the Natural Gas Act (NGA) to site, construct, and operate a facility at Coos Bay, Oregon, for the exportation, principally to Asia, of liquefied natural gas (LNG)”

What eminent domain issue to the lawyers point to? “the pipeline proposal’s impact on landowners and communities given the Pacific Connector’s need for eminent domain”

Which new standards of consideration emerged from the application denial?

  • the need for the proposed pipeline
    • you have to show demand use 
  • is it necessary because of another application approval? A separate approval does not make the project necessary 
  • together it creates this test:  “the rationale of balancing benefits against burdens to determine the public interest” 

Lexology | Greenberg Taurig | Does FERC’s Denial of Authority to Construct Jordan Cove Signal a More Rigorous Test for Future LNG Projects?