A conflict, however, arises when those who believe additional infrastructure is necessary to accommodate increased demand seek to expand and upgrade existing gas transportation systems. This, coupled with environmental regulations, creates a question in the mind of many as to whether the projected demand can, in fact, be met. The purpose of a Keystone Dialogue is to bring a diverse group of stakeholders together to discuss the nexus between current capacity, the emerging market and increased environmental concerns. The goal was the creation of policy-related guidelines for the development of criteria that is amenable to all stakeholders, for new or expanded pipeline capacity.

The potential impacts of this dialogue are significant, given the regulatory environment that currently exists with regard to the need for cleaner air and reduced air emissions. The desire to use natural gas to minimize such environmental concerns is increasingly popular among both environmentalists and industry, yet the ability to meet the demand is in question within the current infrastructure and regulatory environment. A Keystone Dialogue focused on these issues enabled stakeholders to reach agreement on procedures and policies for the development of new or expanded capacity that are agreeable to all relevant parties.

Final Report
This consensus-based report is the result of year-long negotiations among a diverse, 40-person group of experts in the natural gas policy arena. Dialogue participants included leaders from consumer groups, energy-producing companies, environmental organizations, government agencies, industry associations, the pipeline industry, tribes, and utilities.

The Dialogue focused on three broad topics relating to natural gas pipeline infrastructure: (1) natural gas pipeline infrastructure needs, (2) the challenges of siting new or expanded pipeline infrastructure, and (3) the safety, integrity, and reliability of natural gas pipeline infrastructure. The Dialogue group formulated recommendations on each these topics, focusing primarily on regulatory alterations, improved public communication, and inter-government coordination. 

The report is designed to inform the decisions of policy makers and others involved in siting, operating, and regulating natural gas infrastructure. In particular, participants hope the document will be useful to federal, state, and local regulators, federal and state legislators, the energy producing industry, utilities, and environmental and consumer advocates.

“Given the increasing demand for natural gas throughout the economy, this is a timely and important report,” said Patricio Silva, Midwest Activities Coordinator for the Natural Resources Defense Council. “We hope policy makers and industry leaders will review the group’s recommendations on siting, safety, integrity, and reliability before making key decisions.”

Anne Bomar, Managing Counsel for Gas Transmission and Storage with Dominion Resources, said that Dialogue participants reached crucial agreements on several key policy issues. “As counsel for a broadly integrated energy company,” she explained, “I am acutely aware of the competing interests that surround gas infrastructure development. Through the Keystone Dialogue process, representatives of diverse interests generally agreed that the Federal Energy Regulatory Commission has adopted a sound framework for evaluating pipeline projects. We also identified specific communication, coordination, and outreach steps that can strengthen public confidence in the process—and improve its efficiency. I am impressed by the range of perspectives, and the pragmatic recommendations, that we have been able to reflect in the Keystone Dialogue group’s report.”

Joe Chaisson, Technical Director for the Clean Air Task Force, added that the siting of natural gas pipelines requires a balance between meeting the needs for cleaner energy and local environmental protection. “The recommendations in this report provide a roadmap that will allow policy-makers and industry leaders to more easily find that balance,” he said.

Dialogue participants developed the report during six plenary sessions and numerous additional work group meetings. “This Dialogue brought together stakeholders from diverse backgrounds, and provided us with an effective forum for discussing the broad issues involved in siting new infrastructure,” said participant Carl Levander, Vice President of Regulatory and Strategic Initiatives for Columbia Gas Transmission Corporation. “The opportunity to interact with knowledgeable representatives from these varying viewpoints gave me the opportunity to gain a broader understanding of the issues. I believe the dedication of the group, and willingness to consider all points of view was key to our ability to reach consensus on a variety of recommendations.”

Nonetheless, due to the wide diversity of views at the table, the negotiation process was often difficult. “Though the process could be somewhat arduous, our group demonstrated remarkable patience in flushing out each other’s opinions, objections, and observations,” said William McCabe, Vice President of Energy Resources for ThermoEnergy Corporation. “With such a diverse representation of expertise, the virtues of patience are no doubt reflected in this work. There is no question, I gathered as much as I gave. I certainly was pleased that the group not only acknowledged the Tribal component to the report, but also expressed a desire to ensure that the entire group understood the role of Tribal Nations in our energy future.”

Byron Harris, Deputy Director of the Consumer Advocate Division at the Public Service Commission of West Virginia, summed it up this way: “The Keystone Dialogue process demonstrates that people representing a variety of disparate interests can achieve important compromises if they are willing to engage in a constructive dialogue.”
The Keystone Dialogue on Natural Gas Infrastructure was convened and facilitated by The Keystone Center, a neutral, nonprofit dispute resolution and public policy organization with offices in Colorado and Washington, DC. The Keystone Center specializes in bringing together people from the private sector, environmental and citizen organizations, academia, and government to address pressing questions and develop consensus on public policy issues that would be difficult to resolve within traditional decision-making processes.

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