ALJ/SRT/k47 DRAFT H-9

9/20/2001

Decision

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Pipeline System LLC for Authorization Pursuant to Public Utilities Code Section 851 et seq. to Permit the Use of Certain Fiber Optic Telecommunications Facilities.

Application 99-11-027 (Filed November 19, 1999)

TABLE OF CONTENTS

Title Page

OPINION 2

I. Summary 2

II. Background 2

A. The Application 2

B. Consideration of Penalties 7

C. Motion for Protective Order 11

III. Discussion 11

A. Section 851 11

B. Applicability of CEQA to PPS' Plans 12

1. Applicability of CEQA to Section 851 Application 14

2. Role of PPS in Keeping Commission Informed of Its Plans 15

3. Relevance of USFS Involvement 16

4. Additional Conditions 18

C. Consideration of Penalties 20

1. Physical Harm 20

2. Economic Harm 21

3. Harm to the Regulatory Process 21

4. The Number and Scope of the Violations 21

5. The Applicant's Actions to Prevent a Violation 22

6. The Applicant's Actions to Detect a Violation 22

7. The Applicant's Actions to Disclose and Rectify a Violation 23

8. Need for Deterrence 24

9. Constitutional Limitations on Excessive Fines 24

10. The Degree of Wrongdoing 25

11. The Public Interest 25

12. The Role of Precedent 26

IV. Conclusion 26

V. Comments on Draft Decision 27

Findings of Fact 30

Conclusions of Law 32

ORDER 34

Appendix A

Appendix B

OPINION

I. Summary

This decision grants the unopposed November 19, 1999 Application of Pacific Pipeline System LLC (PPS) pursuant to Pub. Util. Code § 851 for approval to grant third-party access to fiber optic cable located in PPS' crude oil pipelines. It retroactively approves the construction that PPS has already performed to facilitate such access subject to certain conditions designed to protect the environment.

However, because PPS completed this construction without Commission approval, we impose a penalty on PPS in the amount of $150,000 for violating Commission Rules 1 and 17.1 and Pub. Util. Code § 702.