Third-Party EISs for Federal Approvals of Pipeline Projects

David F. Jenkins

The third-party process as defined in the National Environmental Policy Act (NEPA) of the United States provides a mechanism for a Federal regulatory agency to use a consultant paid for by the pipeline applicant (or proponent) to prepare the Environmental Impact Statement (EIS) to meet the agency’s NEPA requirements. The consultant works at the direction of the Federal agency with limited contact with the pipeline company. The third-party process offers advantages to a pipeline company when a qualified consultant can be used to assist a Federal agency with limited funding or staff resources. However, the Federal agency must be able to provide adequate direction to the consultant to ensure that adequate NEPA documents are prepared. Care must be taken in the third-party process to manage changes to the contract between the pipeline company and the consultant when the consultant is working only at the direction of the Federal agency.

Keywords: National Environmental Policy Act, NEPA, Environmental Impact Statement, EIS, Third-party process, pipelines