A company that operated a natural gas pipeline for more than two years without a permit will not face a fine from the state Public Service Commission.
The commissioners voted Wednesday to approve a siting application for the Burke County pipeline owned by Enid, Okla.-based Hiland Operating, LLC.
The pipeline was completed in 2010 and had been operating without a permit before the company brought that to the commission’s attention in May 2012.
Under state law, willfully building an energy conversion facility or transmission line without a permit is a Class A misdemeanor. A company can be fined up to $10,000 per day per violation, not to exceed a total of $200,000.
Commissioner Julie Fedorchak said willful is a high standard to meet under state law.
“I don’t think that was the case in this instance,” Fedorchak said.
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Commissioner Randy Christmann said fining Hiland might deter other companies from considering investment in North Dakota. Christmann said the most important thing at this point was to make sure the permitting process was in order and done right.
The 6-inch, 6.5-mile long pipeline runs from the Norse Gas Plant west of Powers Lake and ties into a WBI Energy Transmission line nearby.
The commission received a letter of intent from Hiland to file its application and begin the permit process in May 2012. The application was received Jan. 31 this year.
Commissioners earlier had said the company might not have been aware at the time that the line qualified as a transmission line.
Transmission lines differ from gathering lines in that they carry increased volume at higher pressure.
“Not being aware of the law is not a defense,” Fedorchak said.
