CEQA

Under CEQA and Rule 17.1, we must consider the environmental consequences of projects that are subject to our discretionary approval. (Pub. Resources Code § 21080.) It is possible that a change of ownership and/or control may alter an approved project, result in new projects, or change facility operations, etc. in ways that have an environmental impact. Based upon the record, the change of ownership at issue in this proceeding will have no significant effect on the environment for a number of reasons.

Joint Applicants included Exhibit 8 to the application addressing whether Joint Applicants intend, post-merger, to make any changes in UNOCAP's operations (e.g., alterations of the pipeline and related physical plant). Joint Applicants state that they do not intend, post-merger, to make any changes to UNOCAP's operations that were not discussed in the Joint Application or that could have potential effects on the environment. No employees will be laid-off as a result of the merger, thus the system will continue to be operated by experienced and technically competent personnel.

Based upon the record, the proposed merger will have no significant effect on the environment because UNOCAP's facilities will continue to be operated as they are now, and its Commission-approved tariffs will be unchanged by this transaction. Therefore, the proposed project qualifies for an exemption from CEQA pursuant to Section 15061(b)(3)(1) of the CEQA guidelines and the Commission need perform no further environmental review. (See CEQA Guidelines Section 15061(b)(3)(1).)⁴

Based on these findings, the proposed transaction is in the public interest as required by Section 854(a). We will authorize the merger of UNOCAP with ConocoPhillips Pipe Line Company.