FOR IMMEDIATE RELEASE
February 11, 2004

NEWS MEDIA CONTACT:
Tamara Young-Allen
(202) 502-8680

COMMISSION, COAST GUARD, DOT SIGN INTERAGENCY AGREEMENT TO COORDINATE
REVIEW OF LNG TERMINAL SAFETY, SECURITY

The Federal Energy Regulatory Commission, Coast Guard and Department of
Transportation today announced an interagency agreement to provide for the
comprehensive and coordinated review of land and marine safety and security
issues at the nation's liquefied natural gas (LNG) import terminals.

The agreement was signed by FERC Chairman Pat Wood III, Samuel Bonasso,
Deputy Administrator of the Department of Transportation's Research and
Special Programs Administration (RSPA), and Admiral Thomas Collins,
Commandant of the U.S. Coast Guard (USCG).

The agreement clearly delineates the roles and responsibilities of each
agency relative to LNG terminals and LNG tanker operations, and stipulates
that the agencies identify issues early and quickly resolve them. The
agreement also states that the FERC will be the lead agency for
environmental review under the National Environmental Policy Act and will
coordinate its review with RSPA and USCG.

The agreement reinforces the agencies' longstanding working relations in
coordinating the seamless review of safety and security issues that may
arise from the movement of LNG tankers, the transfer of the LNG to the
terminal, and terminal operations. Further, the agencies agree to build a
consensus on any hazard studies or other documents that may include safety
and security analyses.

Currently, the FERC, in cooperation with RSPA and USCG, is conducting a
study to evaluate the hazards associated with LNG spills on water for the
purpose of developing a model for calculating vapor and thermal hazards
associated with such spills. The results of the study are due at the end
of March 2004.

The interagency agreement is effective immediately. A copy may be found on
the FERC's website, www.ferc.gov.

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