IV. Conclusion

PPS' Section 851 application for leasing authority is in the public interest and should be approved. However, PPS should have awaited Commission authorization before completing the work at issue. It was clear from the ALJ's January 26, 2000 Information Ruling that she was concerned about the environmental impacts of the Project. Indeed, PPS should not have styled its Application as a simple Section 851 paper lease transaction given the significant construction-undisclosed in the original Application-that PPS intended. Just because PPS did not seek advance Commission authorization to engage in such construction does not mean such permission was not required. Therefore, while we grant the Application, pursuant to Pub. Util. Code § 2107, we also impose a penalty in the amount of $105,000 for PPS' violation of Commission Rule 17.1 and Pub. Util. Code § 702.

Subject to the conditions imposed by the USFS on PPS in its Project Stipulations (Appendix A hereto), and the conditions to which Qwest agreed in the Qwest Fiber Optic Project Cultural Resource Protocols (Appendix B hereto), the Application is granted.