[Federal Register Volume 64, Number 157 (Monday, August 16, 1999)]
[Rules and Regulations]
[Pages 44400-44405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20574]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 3, 341, 342, 346, 357, 362, 385
[Docket No. RM99-1-000; Order No. 606]
Revisions to Oil Pipeline Regulations
Issued August 4, 1999.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) is
revising its regulations governing oil pipelines. The regulations to be
modified or deleted are located in 18 CFR Parts 3, 341, 342, 343, 346,
357, 362, and 385. These revisions are intended to clarify the
Commission's regulations and bring them up to date.
EFFECTIVE DATE: The regulations are effective September 15, 1999.
ADDRESSES: Federal Energy Regulatory Commission, 888 First Street,
N.E., Washington, D.C. 20426.
FOR FURTHER INFORMATION CONTACT: Travis R. Smith, Office of the General
Counsel, Federal Energy Regulatory Commission, 888 First Street, N.E.,
Washington, D.C. 20426, (202) 208-0696.
SUPPLEMENTARY INFORMATION: In addition to publishing the full text of
this document in the Federal Register, the Commission also provides all
interested persons an opportunity to inspect or copy the contents of
this document during normal business hours in the Public Reference Room
at 888 First Street, N.E., Room 2A, Washington, D.C. 20426.
The Commission Issuance Posting System (CIPS) provides access to
the texts of formal documents issued by the Commission from November
14, 1994, to the present. CIPS can be accessed via Internet through
FERC's Home Page (http://www.ferc.fed.us) using the CIPS Link or the
Energy Information Online icon. Documents will be available on CIPS in
ASCII and WordPerfect 6.1 format. User assistance is available at 202-
208-2474 or by E-mail to cips.master@ferc.fed.us.
This document is also available through the Commission's Records
and Information Management System (RIMS), an electronic storage and
retrieval system of documents submitted to and issued by the Commission
after November 16, 1981. Documents from November 1995 to the present
can be viewed and printed. RIMS is available in the Public Reference
Room or remotely via Internet through FERC's Home Page using the RIMS
link or the Energy Information Online icon. User assistance is
available at 202-208-2222, or by E-mail to rimsmaster@ferc.fed.us.
Finally, the complete text on diskette in WordPerfect format may be
purchased from the Commission's copy contractor, RVJ International,
Inc. RVJ International, Inc. is located in the Public Reference Room at
888 First Street, N.E., Washington, D.C. 20426.
Before Commissioners: James J. Hoecker, Chairman; Vicky A.
Bailey, William L. Massey, Linda Breathitt, and Curt Hebert, Jr.
I. Introduction
The Federal Energy Regulatory Commission (Commission) is revising
its regulations governing oil pipelines at 18 CFR Parts 341, 342, 343,
and 346 to remove various provisions that are either outdated or in
conflict with other oil pipeline regulations. The goals of these
revisions are to clarify the Commission's regulations and bring them up
to date. The Commission is also revising 18 CFR Parts 3, 357, 362, and
385 to conform to the other changes adopted here.
II. Background
Jurisdiction over oil pipelines, as it relates to the establishment
of rates or charges for the transportation of oil by pipeline or to the
establishment of valuations for pipelines, was transferred from the
Interstate Commerce Commission (ICC) to the Commission pursuant to
sections 306 and 402 of the Department of Energy Organization Act (DOE
Act).1 At the time the DOE Act transferred jurisdiction over
oil pipeline rates to the Commission, the regulations governing oil
pipelines were located in the ICC's regulations at Title 49 of the Code
of Federal Regulations (CFR). Initially, the Commission ordered that
the regulations concerning oil pipelines remain in effect until
modified by the Commission. In Order No. 119,2 the
Commission started transferring some of the ICC's oil pipeline
regulations from Title 49 of the Code of Federal Regulations to the
Commission's regulations in Title 18. Parts 357 3 and 362
4 are among some of the Commission's current regulations
that
[[Page 44401]]
were adopted from this initial transfer. In Order No. 225,5
the Commission adopted the ICC's rules pertaining to paper hearings
called the ``modified procedure,'' currently codified at 18 CFR
385.1404 through 385.1414, and to ex parte communications, presently
located at 18 CFR 385.1415, from 49 CFR Part 1100. Also, pursuant to
Order No. 225, the Commission moved all of its Rules of Practice and
Procedure from 18 CFR Part 1 to 18 CFR Part 385. Notwithstanding some
limited revisions, most of the provisions in 18 CFR Parts 357, 362, and
385 are the same as they were in Title 49.
---------------------------------------------------------------------------
\1\ Department of Energy Organization Act, 42 U.S.C. 7155 and
7172(b) (1988).
\2\ Regulation of Interstate Oil Pipelines, Order No. 119, 46 FR
9043 (Jan. 28, 1981), FERC Stats. & Regs. (Regulations Preambles,
1977-1981) para. 30,226 (Dec. 19, 1980).
\3\ Part 357 addresses the annual special or periodic reports
that carriers subject to Part I of the Interstate Commerce Act are
required to file.
\4\ 18 CFR Part 362 sets forth the various requirements for
valuation.
\5\ Revisions of Rules of Practice and Procedure to Expedite
Trial-Type Hearings, Order No. 225, 47 FR 19014 (May 3, 1982), FERC
Stats. & Regs. (Regulations Preambles, 1982-1985) para. 30,358 (Apr.
28, 1982).
---------------------------------------------------------------------------
The Energy Policy Act of 1992 (Act of 1992) required the Commission
to promulgate new regulations to provide a simplified and generally
applicable ratemaking methodology for oil pipelines, and to streamline
its procedures in oil pipeline proceedings. 6 Pursuant to
Congress' directive in the Act of 1992, the Commission issued Order No.
561 7 and two companion rulemakings, Order Nos. 571
8 and 572 9. In Order No. 561, the Commission
established a simplified and generally applicable index-methodology for
oil pipelines to change their rates and also provided alternatives to
this methodology. In Order No. 571, the Commission addressed a cost-of-
service rate filing alternative for oil pipelines. In Order No. 572,
the Commission addressed market-based rates for oil pipelines. These
rulemakings also included new rate filing requirements and procedural
reforms to reflect the new ratemaking methodologies, and streamlined
the Commission's internal processes for oil pipelines.
---------------------------------------------------------------------------
\6\ The Energy Policy Act of 1992 (Act of 1992) contemplated two
rulemakings--one on ratemaking methodology and another on
streamlined procedures--and established separate deadlines for their
completion. Energy Policy Act of 1992 Pub. L. No. 102-46, Title
XVIII, 1801 to 1804, 106 Stat. 2776, 3010-3011 (codified as 42
U.S.C.A. 7172 note (West Supp. 1995)).
\7\ Revisions to Oil Pipeline Regulations pursuant to Energy
Policy Act of 1992, Order No. 561, 58 FR 58753 (Nov. 4, 1993), FERC
Stats. & Regs. (Regulations Preambles, 1991-1996) para. 30,985 (Oct.
22, 1993), order on rehearing and clarification, Order No. 561-A, 59
FR 40243 (Aug. 8, 1994) FERC Stats. & Regs. (Regulations Preambles,
1991-1996) para. 31,000 (July 28, 1994).
\8\ Cost-of-Service Reporting and Filing Requirements for Oil
Pipelines, Order No. 571, 59 FR 59137 (Nov. 16, 1994) FERC Stats. &
Regs. (Regulations Preambles, 1991-1996) para. 31,006 (Oct. 28,
1994), order on rehearing and clarification, Order No. 571-A, 60 FR
356 (Jan. 4, 1995) FERC Stats. & Regs. (Regulations Preambles, 1991-
1996) para. 31,012 (Dec. 28, 1994).
\9\ Market-Based Ratemaking for Oil Pipelines, Order No. 572, 59
FR 59148 (Nov. 16, 1994), FERC Stats. & Regs. (Regulations
Preambles, 1991-1996) para. 31,007 (Oct. 28, 1994), order denying
rehearing, Order No. 572-A, 69 FERC para. 61,412 (Dec. 28, 1994).
---------------------------------------------------------------------------
At the time the Commission adopted changes to its ratemaking
methodologies and procedural requirements, it intended that its new
regulations would supersede existing procedural rules that were in
conflict and do away with those that were no longer necessary, such as
those describing the modified procedure. The final rules, however, did
not take steps to remove these outdated regulations. As a result, the
current Commission regulations governing oil pipelines include both
recent provisions adopted or modified pursuant to the Act of 1992 and
conflicting regulations adopted from the ICC which have been
superseded, unutilized, or are inconsistent.
On October 20, 1998, the Commission issued a Notice of Proposed
Rulemaking in Docket No. RM99-1-000.10 The Commission
received comments from the Association of Oil Pipelines (AOPL).
---------------------------------------------------------------------------
\10\ Revisions to Oil Pipeline Regulations, 63 FR 57081 (Oct.
26, 1998), IV FERC Stats. & Regs. para. 32,537 (Oct. 20 1998).
---------------------------------------------------------------------------
III. Public Reporting Burden
The Commission believes that there will be no impact on the public
reporting burden from the elimination of outdated and nonessential
regulations, and the related modification of other regulations. Because
the regulations being removed are outdated, they effectively ceased
being a reporting burden years ago. As for the regulations being
modified, they are simply clarifying, not augmenting, reporting
requirements.
IV. Discussion
A. Part 341
Part 341 relates to the requirements for preparing, filing, and
withdrawing oil pipeline tariffs. Section 341.6(3) pertains to the
rules for partial adoption by a carrier of another carrier's tariffs.
In the NOPR, the Commission proposed to amend this section by removing
duplicative language from the provision that now requires a carrier to
state the effective date of an adoption notice twice in a tariff
supplement required to be filed with the Commission. The Commission did
not receive any adverse comments in response to this proposal, so the
Commission will implement this modification in its final rule.
Section 341.7 addresses the requirements for concurrences. The
Commission proposed to modify this section to specify the information
that should be included in letters of transmittal accompanying the
filing of a tariff publication containing a joint carrier. Under the
proposed revision, letters of transmittal would be required to include
the address, phone number, and contact for each joint carrier listed in
the tariff publication. This is information that the Commission, as a
routine matter, has required carriers to submit. The Commission
concluded that including it as part of the regulations will inform
carriers that such information must be included with their filings and
make it unnecessary for carriers to supplement their filings later.
AOPL supports the Commission's proposal to include the foregoing
information concerning joint carriers in the transmittal letter for a
joint tariff. However, AOPL contends that the better place for this
requirement is in the Commission's regulations on transmittal letters
in section 341.2(c)(1).
The Commission will adopt the proposed modifications and revise
section 341.2(c)(1), not section 341.7, as recommended by AOPL. While
section 341.2(c)(1) is not a perfect fit, since the modification
involves information requirements for transmittal letters concerning
joint carriers, and section 341.2(c)(1) pertains to general information
requirements for transmittal letters, it appears to be more appropriate
to include it there, rather than in the section on concurrences.
B. Part 342
Part 342 pertains to the methods that may be used to establish
initial rates, or change existing rates. Section 342.3 discusses rate
changes under the indexing methodology. Section 342.3(b)(1) currently
provides:
Carriers must specify in their letters of transmittal required
in Sec. 341.2(c) of this chapter the rate schedule to be changed,
the proposed new rate, the prior rate, and the applicable ceiling
level for the movement. No other rate information is required to
accompany the proposed rate change.
Under the revisions proposed in the NOPR, this section would
require carriers filing for rate changes to include the prior rate
ceiling level, in addition to the other information specified, in their
letters of transmittal. Including the prior ceiling level will provide
necessary information for the calculation of the index ceiling levels.
Section 342.3(b)(2) addresses the information required to be filed
by carriers with their initial rate changes. It currently reads as
follows:
On March 31, 1995, or concurrently with its first indexed rate
change filing made on or after January 1, 1995, whichever first
occurs, carriers must file a verified copy of a schedule for
calendar years 1993 and 1994 containing the information required by
page
[[Page 44402]]
700 of the 1995 edition of FERC Form No. 6. If actual data are not
available for calendar year 1994 when the rate change filing is
made, the information for calendar year 1994 must be comprised of
the most recently available actual data annualized for the year
1994. A schedule containing the information comprised of actual data
for calendar year 1994 must be filed not later than March 31, 1995.
Thereafter, carriers must file page 700 as a part of their annual
Form No. 6 filing.
This section directs carriers to file schedules containing the
information required by page 700 of the 1995 edition of FERC Form No.
6. on March 31, 1995, or concomitantly with its first indexed rate
change filing made on or after January 1, 1995, whichever occurs first.
Because the one-time need for the requirements of this section has
passed, the Commission proposed to delete it in its entirety.
Section 342.3(d)(3) states that a carrier must compute its ceiling
level each index year without regard to the rates filed pursuant to
this section. In Kaneb Pipeline Operating Partnership,
L.P.,11 and subsequent proceedings, the Commission explained
that because there are numerous pipelines that file rates measured in
hundredths of a cent, all ceiling level calculations for all pipelines
should be rounded 12 to the nearest hundredth of a cent. As
this explanation applies to all calculations by all carriers under
section 342.3, the NOPR proposed to add this explanation to the
regulations to assist carriers in making accurate and complete filings.
---------------------------------------------------------------------------
\11\ Kaneb Pipeline Operating Partnership, L.P., 71 FERC para.
61,409 (1995).
\12\ If the third decimal place number is five or more, the
second decimal number should be rounded up; if the third decimal
place number is four or less, the second decimal place number should
be rounded down. Kaneb Pipeline. 71 FERC para. 61,409 (1995), at p.
62,617 n.6.
---------------------------------------------------------------------------
AOPL considers the proposed changes to be positive ones for the oil
industry. AOPL also suggests including in the regulation an example
demonstrating how the rounding works. At the very least, AOPL requests
that the Commission include a more detailed explanation of the rounding
process.
The Commission will adopt the modification to section 342.3 in the
final rule as proposed in the NOPR. The regulations as revised will
include a thorough explanation for pipelines to use in calculating
their ceiling levels. Adding further material would add unnecessary
detail to the regulations. Oil pipelines have been calculating their
ceiling levels for a number of years under the current regulations, and
have done so successfully. The material added here will address the
area where pipelines, for the most part, have miscalculated. No
pipelines considered it necessary to file comments on the proposal, so
the revision adopted here should prove satisfactory.
C. Part 343
Part 343 discusses procedural matters related to oil pipeline
proceedings under part 342. Section 343.2 describes the requirements
for filing interventions, protests, and complaints. The Commission will
adopt the NOPR's proposal to correct section 343(c)(4) so that it
references paragraphs (c)(1), (2), or (3) within the section, rather
than paragraphs (b)(1), (2), or (3) as at present.
D. Part 346
Part 346 sets forth the filing requirements for oil pipelines that
seek to establish cost-of-service rates as permitted under Part 342.
Section 346.2(c)(7) states in part: ``If the presently effective rates
are not at the maximum ceiling rate established under Sec. 342.4(a) of
this chapter, then gross revenues must also be computed and set forth
as if the ceiling rates were effective for the 12 month period.'' The
Commission will adopt the proposed revisions to section 346.2(c)(7) to
correctly reference section 342.3, which is the section that sets forth
the indexing methodology, rather than section 342.4(a), which describes
cost-of-service rates.
E. Part 357
Part 357 concerns the annual special or periodic reports that
carriers subject to Part I of the Interstate Commerce Act are required
to file. Sections 357.3(a), (b), and (c) discuss the filing
requirements for FERC Form No. 73. In Order No. 561, the Commission
stated that it would be the oil pipeline carriers' responsibility in
the future to perform depreciation studies to establish revised
depreciation rates for oil pipelines. The specific requirements for
such studies were adopted as Part 347 of the Commission's regulations
in Order No. 571. Section 347.1(e)(5)(x) provides that a carrier must
submit a Service Life Data Form (FERC Form No. 73) if the proposed
depreciation rate adjustment is based on the remaining physical life of
the properties. The Commission proposed that section 357.3(a) and (b),
which address who must file FERC Form No. 73 and when the form must be
submitted, be revised to include filings under section 347.1(e)(5)(x).
The Commission also proposed to revise section 357.3(c) to update its
mailing address. AOPL considers the proposed changes to be an
appropriate clarification and the Commission will adopt them.
AOPL has pointed out that section 357.3(b), as proposed in the
NOPR, contains a clerical error. The proposed section read as follows:
Service life data is reported to the Commission by an oil
pipeline company, as necessary, concurrently with a filing made
pursuant to part 347 of this chapter and as directed during a
depreciation rate investigation. (emphasis added)
AOPL correctly noted that the word ``and'' should really be the word
``or.'' Accordingly, for the final rule, the Commission will adopt the
proposal and will supplant the word ``and'' with the word ``or.''
F. Part 362
Part 362 sets forth the various requirements for valuation. Part
362 came into being as a result of Order No. 119,13 which
transferred the ICC's valuation section, in addition to several other
sections pertaining to oil pipelines, from its regulations located at
Title 49 of the Code of Federal Regulations to the Commission's
regulations at Title 18. In Opinion No. 154,14 the
Commission intimated that it was considering abandoning the traditional
ICC valuation formula; however, the Commission ultimately retained the
valuation methodology. To the contrary, in Opinion No. 154-
B,15 the Commission adopted a methodology that is currently
used in oil pipeline rate cases. This new methodology is predicated on
a trended original cost (TOC) rate base and it does not follow the
ICC's historic valuation rate base. Because Opinion No. 154-B rejects
the valuation rate base methodology and thus eliminates the need for
any valuation of oil pipelines, the filing of valuation reports as now
required by Part 362 is no longer necessary. As a result, the
Commission proposed to remove Part 362 from its regulations. Order No.
561 removed Parts 360 and 361 pertaining to reporting of data for
valuation purposes. The proposal in the NOPR would complete the task of
removing unnecessary valuation regulations.
---------------------------------------------------------------------------
\13\ Regulation of Interstate Oil Pipelines, Order No. 119, 46
FR 9043 (Jan. 28, 1981), FERC Stats. & Regs. (Regulations Preambles,
1977-1981) para. 30,226 (Dec. 19, 1980).
\14\ Farmers Union Central Exchange, Inc. v. FERC, 734 F.2d 1486
(D.C. Cir. 1984), cert. denied sub nom., Williams Pipeline Company
v. Farmers Union Central Exchange, Inc., 105 S.Ct. 507 (1984). The
Commissions's opinion appears at 21 FERC para. 61,260 (1982), reh'g
denied, 21 FERC para. 61,086 (1983).
\15\ Williams Pipeline Company, 31 FERC para. 61,377 (1985).
---------------------------------------------------------------------------
AOPL welcomes removal of the rules on valuation, considering it to
be long
[[Page 44403]]
overdue. The Commission will adopt the proposed changes.
G. Part 385
Part 385 governs the Commission's rules of practice and procedure.
Section 385.101(b)(3) excepts ICC rules from Part 385 in cases where
regulations in the Commission's Rules of Practice and Procedure are
inconsistent with ICC rules that were not replaced by a Commission rule
or order. Because the Commission has promulgated and codified its own
rules governing oil pipelines, this section has become unnecessary;
therefore, the Commission proposed to remove this section from its
Rules of Practice and Procedure. Section 385.102(a), which defines
``decisional authority,'' refers to authority or responsibility under
``49 CFR Chapter X.'' As this is a reference to ICC regulations which
have been replaced, the Commission proposed the removal of this
section.
Section 385.1403 discusses the filing requirements for protests to
tariff filings. This section is inconsistent with, and has been
superseded by, section 343.3, which was adopted in Order No. 561.
Accordingly, the Commission proposed to delete section 385.1403 from
the Commission's Rules of Practice and Procedure.
Sections 385.1405 through 385.1414 set out the modified procedure
rules for oil pipeline proceedings. These rules provide that the
Commission can order a proceeding to be heard under a modified
procedure if it appears that substantially all important issues of fact
may be resolved by means of written materials without an oral hearing.
These rules were adopted from the ICC's procedural regulations, 49 CFR
1100, pursuant to Order No. 225.16 The regulations
concerning the modified procedure have been superseded by, and are in
conflict with, procedures and filing requirements in Parts 342, 343,
346, and 347 adopted in Order Nos. 561, 571, and 572. Therefore, the
Commission proposed in the NOPR to remove them. The Commission stated
it would continue to use paper hearing procedures in individual cases
where warranted, but that these procedures are not used frequently
enough to warrant continuing to include them in the regulations. Since
the Commission proposed to remove the modified procedure rules, the
NOPR also proposed to remove section 385.101(b)(4)(I) because it
excepts sections 385.1404 through 1414 from Part 385.
---------------------------------------------------------------------------
\16\ Revisions of Rules of Practice and Procedure to Expedite
Trial-Type Hearings, Order No. 225, 47 FR 19014 (May 3, 1982), FERC
Stats. & Regs. (Regulations Preambles, 1982-1985) para. 30,358 (Apr.
28, 1982).
---------------------------------------------------------------------------
AOPL objects to the removal of the modified procedure provisions.
AOPL contends that inclusion of the rules, even if only used
occasionally, may be of benefit to parties and the Commission in
rapidly resolving a dispute. AOPL claims that although the Commission
could still order paper hearings when necessary, the Commission would
be less likely to do so without a clearly defined template already in
place that sets out the rights and obligations of the parties in
conducting such a proceeding. AOPL also argues that a paper hearing
could prove beneficial to quickly resolving a complaint proceeding that
is clear as to the issue in dispute, but unclear as to an appropriate
resolution.
The Commission's modified procedure provisions have become outdated
as the result of changes to the Commission's procedural regulations
that specify resolution paths to be followed in particular instances.
For example, the regulations at section 343.5 provide that the
Commission may require parties to enter into good faith negotiations to
settle oil pipeline rate matters and specify that the Commission will
refer all protested rate filings to a settlement judge for recommended
resolution. The Commission also has adopted new complaint procedures
designed to encourage and support consensual resolution of complaints
and otherwise ensure that complaints are resolved in a timely and fair
manner. Thus, AOPL's concerns about there being in place procedures
that recognize the rights and obligations of parties in large part have
already been addressed. For those few instances where a proceeding may
not fit neatly into an established resolution process, the Commission
will be able to devise a procedure to ensure resolution of the dispute
in a manner that best serves all.17 Such a procedure could
include a paper hearing process through which issues of material fact
could be resolved by means of written statements. The Commission
therefore considers the modified procedure regulations to be no longer
necessary and will adopt the revisions proposed in the NOPR.
---------------------------------------------------------------------------
\17\ See, e.g., Express Pipeline Partnership, 75 FERC para.
61,303 (1996) (holding that the Commission will establish paper
hearing procedures to address whether to approve proposed rates and
a rate structure as a condition precedent to construction of a new
oil pipeline); Platte Pipe Line Company, 78 FERC para. 61,307 (1997)
(holding that the Commission will establish a technical conference
to examine issues raised by the pipeline's filing); and Sinclair Oil
Corporation v. Platte Pipe Line Company, 87 FERC para. 61,259 (1999)
(holding that the Director of the Commission's Dispute Resolution
Service is directed to arrange a process to foster negotiation and
agreement).
---------------------------------------------------------------------------
Some of the Commission's regulations include references to the Oil
Pipeline Board. Section 385.102, the definitions section, contains Oil
Pipeline Board references in paragraphs (a) and (e)(2). Part 3 pertains
to organization, operation, information and requests, and it also
refers to the Oil Pipeline Board. Section 385.502(a)(3), rules
concerning the initiation of a hearing, contains an Oil Pipeline Board
reference. Section 385.1902, rules for appealing staff action, also
makes reference to the Oil Pipeline Board. Since the Commission
abolished the Oil Pipeline Board in Order No. 561, the Commission
proposed to remove all references to the Oil Pipeline Board, and adopts
that proposal here.
H. AOPL's Suggestions
Finally, in addition to commenting on the revisions proposed in the
NOPR, AOPL, on behalf of the oil pipeline industry, requests that the
Commission implement two additional modifications in the final rule.
First, as a reflection of the current way in which carriers and their
shippers conduct business, AOPL suggests that the Commission modify the
definition of ``posting'' or ``post'' in section 341.0(a)(7), the
definitions and applications section, by allowing the placement of a
carrier's tariff on the Internet to serve as an alternate means of
``posting.''
AOPL's final suggestion is for the Commission to delete section
385.208, which pertains to notices of protests to tentative oil
pipeline valuations. According to AOPL, the sole purpose of this
section was to permit objections to valuations of oil pipeline
companies, which are no longer conducted.
The Commission finds that both of AOPL's suggestions are consistent
with the goals of this rulemaking and thus will integrate them into the
final rule. AOPL's suggestion to allow posting on the Internet as an
alternative recognizes the growing availability and use of electronic
media as a new way of conducting business. The change also will not
impose a requirement or burden on pipelines as it is an alternative and
wholly voluntary; thus, the Commission considers it unnecessary to
request comment before adopting the change. The Commission will also
delete section 385.208. As was stated by AOPL, this section is wholly
germane to objections to oil pipeline valuations, which are no longer
performed.
V. Environmental Analysis
The Commission is required to prepare an Environmental Assessment
[[Page 44404]]
or an Environmental Impact Statement for any action that may have a
significant adverse effect on the human environment.18 The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.19 The action proposed here is procedural in
nature and therefore falls within the categorical exclusions provided
in the Commission's regulations.20 Therefore, neither an
Environmental Impact Statement nor an Environmental Assessment is
necessary and will not be prepared in this rulemaking.
---------------------------------------------------------------------------
\18\ Order No. 486, Regulations Implementing the National
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. &
Regs. (Regulations Preambles, 1986-1990) para. 30,783 (Dec. 10,
1987).
\19\ 18 CFR 380.4.
\20\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------
VI. Regulatory Flexibility Act Certification
The Regulatory Flexibility Act 21 generally requires the
Commission to describe the impact that a proposed rule would have on
small entities or to certify that the rule will not have a significant
economic impact on a substantial number of small entities. The
Commission certifies that promulgating this rule does not represent a
major federal action having a significant economic impact on a
substantial number of small entities. Therefore, no regulatory
flexibility analysis is required.
---------------------------------------------------------------------------
\21\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
VII. Information Collection Statement
Office of Management and Budget (OMB) regulations 22
require that OMB approve certain information collection requirements
imposed by agency rule. Since this rule does not impose new regulations
and has no impact on current information collections, there is no need
to obtain OMB approval as to the deletion and modification of these
regulations. Nevertheless, the Commission is submitting a copy of the
final rule to the OMB for informational purposes.
---------------------------------------------------------------------------
\22\ 5 CFR Part 1320.
---------------------------------------------------------------------------
VIII. Effective Date and Congressional Notification
The regulations are effective September 15, 1999. The Small
Business Regulatory Enforcement Fairness Act of 1996 requires agencies
to report to Congress on the promulgation of certain final rules prior
to their effective dates.23 That reporting requirement
applies to this Final Rule. The Commission has determined, with the
concurrence of the Administrator of the Office of Information and
Regulatory Affairs of OMB, that this rule is not a major rule as
defined in section 351 of the Small Business Regulatory Enforcement
Fairness Act of 1996.
---------------------------------------------------------------------------
\23\ 5 U.S.C. 801 (Supp. III 1997).
---------------------------------------------------------------------------
List of Subjects
18 CFR Part 3
Organization and functions (Government agencies).
18 CFR Part 341
Maritime carriers, Pipelines, Reporting and recordkeeping
requirements.
18 CFR Part 342
Pipelines, Reporting and recordkeeping requirements.
18 CFR Part 343
Pipelines, Reporting and recordkeeping requirements.
18 CFR Part 346
Pipelines, Reporting and recordkeeping requirements.
18 CFR Part 357
Pipelines, Reporting and recordkeeping requirements, Uniform System
of Accounts.
18 CFR Part 362
Pipelines, Reporting and recordkeeping requirements.
18 CFR Part 385
Administrative practice and procedure, Electric power, Penalties,
Pipelines, Reporting and record keeping requirements.
By the Commission.
Linwood A. Watson, Jr.,
Acting Secretary.
In consideration of the foregoing, the Commission amends Parts 3,
341, 342, 343, 346, 357, 362, and 385, Chapter I, Title 18, Code of
Federal Regulations, as set forth below.
PART 3--[REMOVED AND RESERVED]
1.-2. Part 3 consisting of Sec. 3.4 is removed and reserved.
PART 341--OIL PIPELINE TARIFFS: OIL PIPELINE COMPANIES SUBJECT TO
SECTION 6 OF THE INTERSTATE COMMERCE ACT
3. The authority citation for Part 341 continues to read as
follows:
Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 1-27.
4. Section 341.0 is amended by revising paragraph (a)(7) to read as
follows:
Sec. 341.0 Definitions; application.
(a) * * *
(7) Posting or post means making a copy of a carrier's tariff
available during regular business hours for public inspection in a
convenient form and place at the carrier's principal office and other
offices of the carrier where business is conducted with affected
shippers, or placing a copy on the Internet in a form accessible by the
public.
* * * * *
5. Section 341.2 is amended by revising paragraph (c)(1) to read as
follows:
Sec. 341.2 Filing requirements.
* * * * *
(c) * * *
(1) Contents. Letters of transmittal must describe the filing and
explain any changes to the carrier's rates, rules, terms or conditions
of service; state if a waiver is being requested, and specify the
statute, section, regulation, policy or order requested to be waived;
and identify the tariffs or supplement numbers and the proposed
effective date of the tariff publication. Carriers must provide to the
Commission, in the letter of transmittal accompanying the filing of a
tariff publication containing a joint carrier, the address, phone
number, and a contact for each joint carrier listed in the tariff
publication.
* * * * *
6. Section 341.6 is amended by revising paragraph (d)(3) to read as
follows:
Sec. 341.6 Adoption rule.
* * * * *
(d) * * *
(3) The former owner must immediately file a consecutively numbered
supplement to each of its tariffs covered by the adoption notice,
reading as follows:
Effective [date of adoption notice] this tariff became the
tariff of [legal name of adopting carrier] for transportation
movements [identify origin and destination points], as per its
adoption notice FERC No. [number].
* * * * *
PART 342--OIL PIPELINE RATE METHODOLOGIES AND PROCEDURES
7. The authority citation for Part 342 continues to read as
follows:
Authority: 5 U.S.C. 571-583; 42 U.S.C. 7101-7532; 49 U.S.C.
60502; 49 App. U.S.C. 1-85.
8. Section 342.3 is amended by revising paragraph (b) in its
entirety, and paragraph (d)(3) to read as follows:
[[Page 44405]]
Sec. 342.3 Indexing.
* * * * *
(b) Information required to be filed with rate changes. The carrier
must comply with Part 341 of this title. Carriers must specify in their
letters of transmittal required in Sec. 341.2(c) of this chapter the
rate schedule to be changed, the proposed new rate, the prior rate, the
prior ceiling level, and the applicable ceiling level for the movement.
No other rate information is required to accompany the proposed rate
change.
* * * * *
(d) * * *
(3) A carrier must compute the ceiling level each index year
without regard to the actual rates filed pursuant to this section. All
carriers must round their ceiling levels each index year to the nearest
hundredth of a cent.
* * * * *
PART 343--PROCEDURAL RULES APPLICABLE TO OIL PIPELINE PROCEEDINGS
9. The authority citation for Part 343 continues to read as
follows:
Authority: 5 U.S.C. 571-583; 42 U.S.C. 7101-7352; 49 U.S.C.
60502; 49 App. U.S.C. 1-85.
10. Section 343.2 is amended by revising paragraph (c)(4) to read
as follows:
Sec. 343.2 Requirements for filing interventions, protests and
complaints.
* * * * *
(c) * * *
(4) A protest or complaint that does not meet the requirements of
paragraphs (c)(1), (c)(2), or (c)(3) of this section, whichever is
applicable, will be dismissed.
PART 346--OIL PIPELINE COST-OF-SERVICE FILING REQUIREMENTS
11. The authority citation for Part 346 continues to read as
follows:
Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C.
1-85.
12. Section 346.2 is amended by revising paragraph (c)(7) to read
as follows:
Sec. 346.2 Material in support of initial rates or change in rates.
* * * * *
(c) * * *
(7) Statement G--revenues. This statement must set forth the gross
revenues for the actual 12 months of experience as computed under both
the presently effective rates and the proposed rates. If the presently
effective rates are not at the maximum ceiling rate established under
Sec. 342.3 of this chapter, then gross revenues must also be computed
and set forth as if the ceiling rates were effective for the 12 month
period.
PART 357--ANNUAL SPECIAL OR PERIODIC REPORTS: CARRIERS SUBJECT TO
PART I OF THE INTERSTATE COMMERCE ACT
13. The authority citation for Part 357 continues to read as
follows:
Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C.
1-85.
14. Section 357.3 is revised to read as follows:
Sec. 357.3 FERC Form No. 73, Oil Pipeline Data for Depreciation
Analysis.
(a) Who must file. Any oil pipeline company requesting new or
changed depreciation rates pursuant to Part 347 of this title if the
proposed depreciation rates are based on the remaining physical life of
the properties or if directed by the Commission to file service life
data during an investigation of its book depreciation rates.
(b) When to submit. Service life data is reported to the Commission
by an oil pipeline company, as necessary, concurrently with a filing
made pursuant to Part 347 of this title or as directed during a
depreciation rate investigation.
(c) What to submit. The format and data which must be submitted are
prescribed in FERC Form No. 73, Oil Pipeline Data for Depreciation
Analysis, available for review at the Commission's Public Reference
Section, Room 2A, 888 First Street, NE, Washington, D.C. 20426.
SUBCHAPTER 5--[REMOVED AND RESERVED]
PART 362--[REMOVED AND RESERVED]
14a. Subchapter 5 consisting of part 362, Uniform System of Records
and Reports of Property Changes, is removed in its entirety and
reserved.
PART 385--RULES OF PRACTICE AND PROCEDURE
15. The authority citation for Part 385 continues to read as
follows:
Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16
U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42 U.S.C. 7101-7352; 49
U.S.C. 60502; 49 App. U.S.C. 1-85.
Sec. 385.101 [Amended]
16. Section 385.101 is amended by removing paragraphs (b)(3) and
(b)(4)(i), and redesignating paragraph (b)(4)(ii) as paragraph (b)(4).
17. Section 385.102 is amended by revising paragraphs (a) and
(e)(2) to read as follows:
Sec. 385.102 Definitions (Rule 102).
* * * * *
(a) Decisional authority means the Commission or Commission
employee that, at the time for decision on a question, has authority or
responsibility under this chapter to decide that particular question.
* * * * *
(e) * * *
(2) With respect to any proceeding not set for hearing under
subpart E, any employee designated by rule or order to conduct the
proceeding.
* * * * *
Sec. 385.208 [Removed and reserved].
18. Section 385.208 is removed and reserved.
19. Section 385.502 is amended by removing paragraph (a)(3) and
revising paragraphs (a)(1) and (a)(2) to read as follows:
Sec. 385.502 Initiation of hearing (Rule 502).
(a) * * *
(1) Order of the Commission; or
(2) Notice by the Secretary at the direction of the Commission or
under delegated authority.
* * * * *
Secs. 385.1403 and 385.1405-385.1415 [Removed]
Secs. 385.1404 and 385.1415 [Redesigated as Secs. 385.1403 and
385.1404]
20. Sections 385.1403 and 385.1405 through 385.1414 are removed and
sections 385.1404 and 385.1415 are redesignated paragraphs 385.1403 and
385.1404.
21. Section 385.1902 is amended by removing paragraph (b),
redesignating paragraph (c) as paragraph (b), and revising paragraph
(a) to read as follows:
Sec. 385.1902 Appeals from action of staff (Rule 1902).
(a) Any staff action (other than a decision or ruling of presiding
officer, as defined in Rule 102(e)(1), made in a proceeding set for
hearing under subpart E of this part) taken pursuant to authority
delegated to the staff by the Commission is a final agency action that
is subject to a request for rehearing under Rule 713 (request for
rehearing).
* * * * *
[FR Doc. 99-20574 Filed 8-13-99; 8:45 am]
BILLING CODE 6717-01-P
