II. Background

SoCalGas filed its application with the Commission on April 9, 2001. Notice of the application was published in the Commission's Daily Calendar of April 10, 2001. Five responses and two protests to the application were filed. SoCalGas filed a reply to the protests and responses on May 21, 2001.

On May 4, 2001, an assigned Commissioner's ruling was issued. Among other things, the ruling sought comment on whether the proposed project is exempt from CEQA, and to address whether electricity generators and qualifying facilities should be given a priority to bid on the reclassified cushion gas.¹

In an Administrative Law Judge's (ALJ) ruling dated May 17, 2001, interested parties were notified that a prehearing conference (PHC) would be held on May 30, 2001. The ruling also notified parties that the PHC would discuss the processing of the application, and whether the application could be divided into two phases.

The PHC was held on May 30, 2001. Among the issues discussed was whether an initial decision could be issued which would address the issues concerning Pub. Util. Code § 851, CEQA, the authorization necessary to begin the well drilling and related modifications, and the authorization for recovery of the project costs from the sale of the reclassified cushion gas. This would be followed by a decision no later than the end of September 2001 to address the issue of whether any restrictions should be placed on to whom the gas could be sold, or on the increased gas storage capacity resulting from the well work. The PHC also discussed the need for a second phase of the proceeding which would address the ratemaking aspects of the sale of the reclassified cushion gas, and how those benefits would be allocated to shareholders and ratepayers. None of the parties who appeared at the PHC objected to this two-phase process. The scoping memo was issued on June 5, 2001.

On June 15, 2001, the Environmental Branch of the Commission's Energy Division filed with the Docket Office a report entitled the "Energy Division Staff Report On A.01-04-007 CEQA Issues." The Environmental Branch, and the Division of Oil and Gas and Geothermal Resources of the California Department of Conservation, visited the La Goleta and Aliso Canyon sites on May 18, 2001.