4. Conclusion

PPS should have awaited Commission authorization before completing the work at issue. It was clear from the ALJ's January 26, 2000 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, we will commence a second penalty phase of this proceeding whether PPS violated Commission Rule 1, Section 851 or any other provision of law or Commission rule in initially failing to disclose magnitude of the construction and failing to await advance Commission approval of such construction and to comply with CEQA.

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. The Commission directs the assigned ALJ to issue a ruling commencing a second phase of this proceeding designed to determine whether PPS should be sanctioned for completing the construction without prior Commission approval.