[Federal Register Volume 63, Number 200 (Friday, October 16, 1998)]
[Proposed Rules]
[Pages 55682-55715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26721]
[[Page 55681]]
_______________________________________________________________________
Part II
Department of Energy
_______________________________________________________________________
Federal Energy Regulatory Commission
_______________________________________________________________________
18 CFR Parts 2, 153, 157, etc.
Revision of the Commission's Regulations Under the Natural Gas Act;
Proposed Rule
18 CFR Part 380
Landowner Notification, Residential Area Designation, and Other
Environmental Filing Requirements; Technical Conference; Proposed Rule
Federal Register / Vol. 63, No. 200 / Friday, October 16, 1998 /
Proposed Rules
[[Page 55682]]
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 2, 153, 157, 284, 375, 380, and 385
[Docket No. RM98-9-000]
Revision of the Commission's Regulations Under the Natural Gas
Act
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission is proposing to amend
the regulations codifying the Commission's responsibilities under the
Natural Gas Act and Executive Order 10485, as amended. The Commission
proposes to update its regulations governing the filing of applications
for the construction and operation of facilities to provide service or
to abandon facilities or service under section 7 of the Natural Gas
Act. The proposed changes are necessary to conform the Commission's
regulations to the Commission's current policies.
DATES: Comments are due on December 1, 1998.
ADDRESSES: Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington DC 20426.
FOR FURTHER INFORMATION CONTACT:
Michael J. McGehee, Office of Pipeline Regulation, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426.
(202) 208-2257
Carolyn Van Der Jagt, Office of the General Counsel, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426,
(202) 208-2246
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, NE., Room 2A, Washington, DC 20426.
The Commission Issuance Posting System (CIPS) provides access to
the texts of formal documents issued by the Commission. CIPS can be
accessed via Internet through FERC's Homepage (http://www.ferc.fed.us)
using the CIPS Link or the Energy Information Online icon. The full
text of this document will be available on CIPS in ASCII and
WordPerfect 6.1 format. CIPS is also available through the Commission's
electronic bulletin board service at no charge to the user and may be
accessed using a personal computer with a modem by dialing 202-208-
1397, if dialing locally, or 1-800-856-3920, if dialing long distance.
To access CIPS, set your communications software to 19200, 14400,
12000, 9600, 7200, 4800, 2400, or 1200 bps, full duplex, no parity, 8
data bits and 1 stop bit. User assistance is available at 202-208-2474
or by E-mail to cipsmaster@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 Homepage 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, NE., Washington, DC 20426.
In the matter of: Revision of the Commission's Regulations Under
the Natural Gas Act; Docket No. RM98-9-000.
Notice of Proposed Rulemaking
September 30, 1998.
I. Introduction
The Federal Energy Regulatory Commission (Commission) proposes to
amend its regulations governing the filing of applications for
certificates of public convenience and necessity authorizing the
construction and operation of facilities to provide service or to
abandon facilities or service under section 7 of the Natural Gas Act
(NGA),1 and to amend the blanket certificate under Subpart F
of Part 157. The Commission has determined that portions of its
regulations need to be revised and/or eliminated in order to reflect
the current regulatory environment of unbundled pipeline sales and
open-access transportation of natural gas. The proposed revisions
would: (1) bring the existing regulations up-to-date to match current
policies; (2) eliminate ambiguities and obsolete language; and (3) make
the regulations more germane, and less cumbersome.
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\1\ 15 U.S.C. 717b.
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Additionally, the Commission proposes to consolidate and clarify
its current practice concerning the reporting requirements needed for
its environmental review of pipeline construction projects. Generally,
the Commission's requirements concerning its environmental review
process are either outdated, found in several different parts of the
Commission's regulations, or replaced by current practice with a
preferred format that is not in the Commission's regulations, but has
been used routinely by jurisdictional companies. The proposed
regulations would provide better guidance to the regulated industry
concerning what particular information the Commission needs to conduct
a timely environmental analysis.
II. Information Collection Statement
The proposed rule, if adopted, would establish new reporting
requirements, modify existing reporting requirements and eliminate
those requirements that are now obsolete. The Commission seeks to
simplify and streamline its requirements to reduce the burden on
pipelines. The current public reporting burden for these information
collections is estimated to average the following number of hours per
response: FERC-537 2--146,160 hours for the 50 gas companies
that complete a filing; FERC-539 3--2400 hours for the 12
gas companies that complete a filing; FERC-577 4--181,794
hours for the 55 companies that complete a filing. These estimates
include the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information.
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\2\ Gas Pipeline Certificates: Construction, Acquisition, and
Abandonment.
\3\ Gas Pipeline Certificate: Import/Export Related.
\4\ Environmental Impact Statement (Pipeline Certificate).
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The overall burden of filing will be reduced based on the
elimination of certain filings by the rule. Further, the burden will be
reduced by the elimination of the requirement to report all but cost
information for prior notice activity in the annual report. On the
whole, the Commission estimates that the revised reporting schedule
will reduce the existing reporting burden by a total of 8,284 hours.
On balance, therefore, the Commission believes the overall burden
on the industry will be lessened over time by the proposed changes. To
consider the impact on the persons affected by this rulemaking, the
Commission would like specific comments on the impact of this rule on
individual natural gas companies. Both estimates of current burden and
impact
[[Page 55683]]
should be in work hours and dollar costs in sufficient detail to
demonstrate methodology and assumptions.
The burden estimates for complying with this proposed rule are as
follows:
Public Reporting Burden: Estimated Annual Burden.
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Total
Data collection Number of Number of Hours of annual
respondents responses response hours
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FERC-537.................................................... 50 11.2 245.82 137,660
FERC-539.................................................... 12 1 218 2,616
FERC-577.................................................... 70 16.8 154 181,720
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Total Annual Hours for collections
(Reporting + Record keeping, (if appropriate)) = 321,996
Based on the Commission's experience with processing applications
for construction and acquisition of pipeline facilities over the last
three fiscal years (FY95-FY97), it is estimated that 1754.5 filings per
year will be made over the next three years at a burden of 183 hours
per filing, for a total annual burden of 321,996 hours under the
proposed regulations.
Information Collection costs: The Commission seeks comments on the
costs to comply with these requirements. It has projected the average
annualized cost for all respondents to be:
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Annualized
Annualized costs Total
Data collection capital/start- (Operations & annualized
up costs Maintenance) costs
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FERC-537........................................................ $30,000 $7,189,717 $7,219,717
FERC-539........................................................ 7,200 136,639 143,829
FERC-577........................................................ 0 9,494,751 9,494,751
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The Office of Management of Budget (OMB) regulations require OMB to
approve certain information collection requirements imposed by agency
rule.5 Accordingly, pursuant to OMB regulations, the
Commission is providing notice of its proposed information collections
to OMB.
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\5\ 5 CFR 1320.11 (1997).
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The following collections of information contained in this proposed
rule are being submitted to the OMB for review under Section 3507(d) of
the Paperwork Reduction Act of 1995.6 FERC identifies the
information provided under Parts 2, 153, 157 and 284 as FERC Nos. 537,
539, and 577. The information submitted in response to these
requirements is mandatory.
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\6\ 44 U.S.C. 3507(d).
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Comments are solicited on the Commission's need for this
information, whether the information will have practical utility, the
accuracy of the provided burden estimates, ways to enhance the quality,
utility, and clarity of the information to be collected, and any
suggested methods for minimizing respondents' burden, including the use
of automated information techniques.
Title: FERC-537 ``Gas Pipeline Certificates: Construction,
Acquisition, and Abandonment''; FERC-539 ``Gas Pipeline Certificate:
Import/Export Related'' and FERC-577 ``Environmental Impact Statement
(Pipeline Certificate).
Action: Proposed Data Collections.
OMB Control No.: 1902-0060; 1902-0062; 1902-0128.
Applicants shall not be penalized for failure to respond to these
collections of information unless the collections of information
display a valid OMB control number.
Respondents: Businesses or other for profit.
Frequency of Responses: On occasion.
Necessity of Information: The proposed rule revises the
Commission's regulations governing the filing of applications for the
construction and operation of pipeline facilities to provide service or
to abandon facilities or service under section 7 of the NGA. Section 7
of the NGA requires the Commission to issue certificates of public
convenience and necessity for all interstate sales and transportation
of natural gas, the construction and operation of natural gas
facilities used for those interstate sales and transportation and prior
Commission approval of abandonment of jurisdictional facilities or
services. The Commission has determined that portions of its
regulations need to be revised to reflect recent regulatory changes, in
particular, implementation of pipeline restructuring under Order No.
636,7 which have rendered certain regulations implementing
Section 7 needless or outdated.
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\7\ Pipeline Service Obligations and Revisions to Regulations
Governing Self-Implementing Transportation; and Regulation of
Natural Gas Pipelines After Partial Wellhead Decontrol, Order No.
636, 57 FR 13267 (April 16, 1992) FERC Stats. & Regs. para. 30,939
(April 8, 1992).
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Internal Review: The Commission has assured itself, by means of its
internal review, that there is specific, objective support for the
burden estimates associated with the information requirements. The
Commission's Office of Pipeline Regulation (OPR) will use the data
included in applications to determine whether proposed facilities are
in the public interest and general industry oversight. This
determination involves, among other things, an examination of adequacy
of design, costs, reliability, redundancy, safety, and environmental
acceptability of the proposed facilities. These requirements conform to
the Commission's plan for efficient information collection,
communication, and management within the natural gas industry.
For information on the requirements, submitting comments concerning
the collection of information and the associated burden estimates,
including suggestions for reducing this burden, please send your
comments to the Federal Energy Regulatory Commission, 888 First Street,
NE., Washington, DC 20426 [Attention: Michael Miller, Office of the
Chief Information Officer, Phone: (202) 208-1415, fax: (202) 273-0873,
e-mail: michael.miller@ferc.fed.us]. In addition, comments on reducing
the burden and/or improving the collections of information should also
be submitted to the Office of Management and Budget, Office of
Information and Regulatory Affairs, Attention: Desk
[[Page 55684]]
Officer for the Federal Energy Regulatory Commission, 725 17th Street,
NW, Washington, D.C. 20503, phone (202)395-3087, fax: (202)395-7285.
III. Background and Proposal
Since the enactment of the Natural Gas Policy Act of 1978 (NGPA)
8 and the Natural Gas Wellhead Decontrol Act of 1989
(Decontrol Act),9 the natural gas industry has undergone
significant changes. Historically, the Commission regulated natural gas
producers and wellhead prices and interstate pipelines served as gas
merchants. Pipelines now generally only provide open-access
transportation services and the Commission no longer regulates
producers and wellhead prices. The Commission implemented these changes
through its rulemaking process 10 and through issuing policy
statements.11 Generally, the Notice of Proposed Rulemaking
(NOPR) proposes to amend the Commission's regulations to conform them
to its existing policies and procedures. Additionally, in response to
the natural gas industries' request,12 the NOPR proposes to
modify certain aspects of the Commission's current regulations to help
expedite the certificate process. We note that this is one of many
initiatives the Commission is implementing to improve upon the current
regulatory structure for natural gas transportation
service.13 Moreover, concurrent with the issuance of this
NOPR, the Commission is issuing another NOPR, in Docket No. RM98-16-
000, which proposes that pipelines use a collaborative process to
resolve significant issues prior to filing an application to construct
facilities. Additionally, the Commission is issuing a Notice of
Technical Conference, in Docket No. RM98-17-000, to address its
concerns regarding its present landowner notification policies and its
present environmental classification of residential areas.
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\8\ 15 U.S.C. 3301-3432 (1978).
\9\ Public Law No. 101-60, 103 Stat. 157 (1989).
\10\ See Regulation of Natural Gas Pipelines After Partial
Wellhead Decontrol, Order No. 436, 50 FR 42408 (November 5, 1985)
FERC Stats. and Regs. para. 30,665 (October 9, 1985)(Order No. 436
instituted open-access, non-discriminatory transportation to permit
downstream gas users to buy gas directly in the production area and
to ship that gas via interstate pipelines); Order Implementing the
Natural Gas Wellhead Decontrol Act of 1989, Order No. 523, 55 FR
17425 (April 25, 1990) FERC Stats. and Regs. para. 30,887 (April 18,
1990) and Removal of Outdated Regulations Pertaining to the Sales of
Natural Gas Production, Order No. 567, 59 FR 40240 (August 8, 1994)
FERC Stats. and Regs. para. 30,999 (July 28, 1994) (in Order Nos.
523 and 567, the Commission generally amended its regulations to
delete those pertaining to its jurisdiction over the sale of natural
gas production); and Pipeline Service Obligations and Revisions to
Regulations Governing Self-Implementing Transportation; and
Regulation of Natural Gas Pipelines After Partial Wellhead
Decontrol, Order No. 636, 57 FR 13267 (April 16, 1992) FERC Stats. &
Regs. para. 30,939 (April 8, 1992) (in Order No. 636, the Commission
adopted regulatory changes to finally complete the evolution to
competition in the natural gas industry by mandating the unbundling
of interstate natural gas sales service from transportation service,
requiring that those services be sold separately to natural gas
purchasers).
\11\ Pricing Policy For New and Existing Facilities Constructed
by Interstate Natural Gas Pipelines, 71 FERC para. 61,241 (1995).
\12\ As a result of the changes in the industry, the Commission
convened a public conference on May 29 and 30, 1997 (May
conference), to conduct a broad inquiry into the important issues
facing the natural gas industry today. Various participants at the
May conference raised concerns regarding the Commission's
certificate process in the post-Order No. 636 era. Generally, the
participants requested that the Commission focus on expediting the
approval process for construction certificates to enhance the
pipeline's ability to respond more quickly to accommodate new and
changing market conditions.
\13\ See Public Access to Information and Electronic Filing,
Docket No. PL98-1-000, 63 FR 27,529 (May 19, 1998), Regulations of
Short-Term Natural Gas Transportation Services, Docket No. RM98-10-
000, 63 FR 42,982 (Aug. 11, 1998) and Regulation of Interstate
Natural Gas Transportation Service, Docket No. RM98-12-000, 63 FR
42,973 (Aug. 11, 1998).
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The NOPR serves 5 basic purposes: (1) It eliminates certain
obsolete regulations and outdated or unnecessary filing requirements
and reports; (2) it clarifies and updates certain regulations to
conform to the Commission's present policies; (3) it modifies certain
existing regulations to help expedite the certificate process; (4) it
replaces certain outdated environmental filing procedures with the more
commonly followed industry practice; and (5) it makes minor
modifications to the existing electronic filing requirements.
A. Eliminating Obsolete Regulations and Outdated or Unnecessary Filing
Requirements and Reports
The Commission proposes to remove certain regulations that are
outdated and obsolete including, among other things, regulations that
pertain to producer related activities made obsolete by the Decontrol
Act and regulations that pertain to a pipeline's merchant function.
Additionally, the Commission proposes to remove various regulations
that pertain to certain activities that were performed under the
blanket certificate issued in Subpart F of Part 157 that are now
performed under Part 284 of the Commission's regulations. For example,
section 157.213 grants authorization for the certificate holder to
provide contract storage service. Pipelines now provide storage service
under their Part 284 blanket transportation certificate. Section
157.217 grants the certificate holder automatic authorization to permit
an existing customer to change from one rate schedule to another. Rate
schedules are now offered under Part 284.
The Commission also proposes: (1) to remove references to filing
fees eliminated by Order No. 548; 14 and (2) to change
outdated references to the Office of Pipeline and Producer Regulation
to Office of Pipeline Regulation (OPR), and change outdated references
to the Environmental Evaluation Branch to the Environmental Staff of
OPR.
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\14\ Elimination of Filing Fees, Order No. 548, 58 FR 2968
(January 7, 1993) FERC Stats. and Regs. para. 30,960 (January 4,
1993).
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The Commission proposes to remove certain outdated and/or
unnecessary filing requirements and reports. For example, the
Commission proposes to remove certain information in the exhibits filed
with a NGA section 7 certificate application including, among other
things, Exhibit J which requires that pipelines provide studies
regarding any impacts related to potential direct industrial customers
converting from other fuels to natural gas, and Exhibit L which
requires that pipelines file certain financial information that the
Commission no longer needs with a certificate application.
The Commission also proposes to remove certain blanket certificate
filing requirements including, among other things, information
concerning outdated budget-type certificates and rate schedules for
sales for resale and for storage services. The Commission also proposes
to remove the prior notice reporting requirements which require that
pipelines file certain gas supply information and the names of the
independent producers or other sellers.
B. Clarifying and Updating Regulations to Conform to the Commission's
Present Policies
The Commission proposes to clarify certain aspects of the
regulations. For example, the NOPR clarifies that auxiliary facilities
installed at the same time and related to newly proposed jurisdictional
facilities do not qualify for exemption under section 2.55(a), since
the exemption is limited to installations which are designed
specifically to improve the operation of an existing transmission
system. The Commission also proposes to amend section 157.10 to clarify
that pipelines do not have to serve voluminous or difficult to
reproduce materials, such as copies of environmental information, upon
all parties in a proceeding, except as specifically requested. This
procedure is consistent with our requirements for
[[Page 55685]]
pipelines filing rate schedules and tariffs under Part 154. However, we
expect pipelines to make all such information readily available in the
project area.
The Commission proposes to replace the term ``small-diameter
lateral'' with ``small diameter supply or delivery lateral'' to provide
a more objective description of facilities the Commission will not
consider to be mainline facilities. The Commission also proposes to add
an introductory sentence in section 157.206(d) that explains that the
environmental conditions contained in that section apply only to
activities under the blanket certificate that involve ground
disturbance or changes to operational air and noise emissions.
The Commission proposes, among other things, to amend section
2.55(b) consistent with the Commission's order in Arkla Energy
Resources Co. (Arkla) 15 by requiring that replacement
facilities constructed under section 2.55 must be constructed in the
existing right-of-way. The Commission also proposes to amend sections
157.20(b) and 157.206(f) to state that the facilities must be completed
and available for service within one year instead of in actual
operation within one year. This would address concerns that events
outside a pipeline's control could prevent facilities from being placed
in operation within the specified time frame, i.e., a shipper does not
actually flow gas on time.
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\15\ 67 FERC para. 61,173, at 61,516 (1994).
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The Commission intends to revise section 157.202(b)(2)(i) to
clarify that it includes receipt points in the definition of eligible
facilities consistent with our regulations under Part 284 which
recognize that a pipeline can construct any eligible facility under its
Part 157 blanket certificate to provide Part 284 service to use
existing capacity, including receipt points. The Commission also
proposes to add a new section 157.6(b)(8), which requires that
pipelines file the necessary information for the Commission to make an
upfront determination of the rate treatment of the proposed
construction project in accordance with the Commission's Pricing Policy
Statement.16
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\16\ Pricing Policy For New and Existing Facilities Constructed
By Interstate Natural Gas Pipelines, 71 FERC para. 61,241 (1995).
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C. Modifying Existing Regulations To Expedite the Certificate Process
As stated, the industry requested that the Commission focus on
expediting the approval process for construction project certificates
to enhance the pipeline's ability to respond more quickly to
accommodate new and changing market conditions. The Commission proposes
several changes to the regulations that would expedite its procedures
or construction of certain facilities while at the same time comply
with its mandate under the National Environmental Policy Act of 1969
(NEPA).17 For example, the Commission proposes to expand the
scope of the blanket certificate under Subpart F of Part 157 to include
new categories of facilities eligible for construction under automatic
and prior notice authorization, revise the prior notice procedures, and
expand automatic and prior notice abandonment opportunities. These
proposed changes are designed to allow pipelines to construct, operate,
rearrange, replace and abandon more facilities than are currently
covered by the blanket certificate. We propose to amend section
157.202(b)(2)(i) (Eligible Facilities) to include mainline and lateral
replacement facilities that do not currently qualify under section
2.55(b) as eligible facilities. These replacements would result in
increased line capacity because they generally would involve an
incrementally larger replacement pipe than the original.
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\17\ 42 U.S.C. 4321-4307a.
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The Commission proposes to allow pipelines to construct and operate
temporary compression facilities under their subpart F blanket
certificate in new section 157.209, in the same manner we have issued
separate blanket temporary compression certificates to Transwestern
Pipeline Company and Northwest Pipeline Corporation.18
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\18\ Transwestern Pipeline Co., 76 FERC para. 61,211 (1996),
Northwestern Pipeline Corp., 67 FERC para. 61,289 (1994).
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The Commission proposes to amend section 157.211 to include both
the existing sales taps, as well as delivery taps currently authorized
under section 157.212. We propose to remove section 157.212 as
obsolete. Amended section 157.211 will provide for both automatic and
prior notice authority under the blanket certificate. Currently,
delivery taps are limited to the prior notice procedures under section
157.212.
In order to help expedite the processing of prior notice requests,
the Commission proposes to amend section 157.205(e) to require the
issuance of a notice within 10 days of a prior notice application being
filed. Likewise, we propose to amend section 157.205(g) to allow the
Director of OPR to dismiss protests that do not raise a substantive
issue and fail to provide any specific detailed reason or rationale for
the objection, so as not to impede processing of legitimate filings.
The Commission also proposes to amend section 375.307(a)(1) to
increase the spending limits for orders delegated to the Director of
OPR to match the prior notice limits set forth in section 157.208(d).
The Commission believes that adjusting the spending limit in this
section will provide more flexibility and a faster regulatory track to
pipelines that want to construct facilities that are not ``eligible''
for prior notice treatment but are the subject of applications not
formally protested, and whose costs exceed the current $5,000,000 cost
limit in this section. The 1998 prior notice limits are $19.6 million
for eligible facilities and $4.5 million for storage testing.
D. Replacing Outdated Environmental Filing Procedures With Industry
Practice
Under section 380.3 of the Commission's current regulations, any
application filed under the NGA for a project that requires the
preparation of an environmental assessment or environmental impact
statement must contain the information identified in Appendix A to Part
380. However, in 1988 in the Northeast U.S. Pipeline Project
(Northeast) order,19 the Commission established additional
guidelines for the environmental filings for the competing projects in
that proceeding to facilitate its review and analysis of those
projects. The guidelines included environmental resource reports that
covered specific environmental resource areas. The Commission explained
that if all the pipelines followed the same format when filing the
necessary information it would expedite the Commission's review and
processing of the environmental reports.
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\19\ 44 FERC para. 61,149 (1988).
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In 1989, the Commission's staff compiled a report entitled
``Natural Gas Pipeline Company Certificate Filing'' (Certificate
Manual) which defined how applications should be filed electronically.
Appendix G to that document lists 12 resource reports similar to the
ones in the Northeast proceeding. Each resource report described
specific areas and topics that a pipeline needs to address to meet the
environmental filing requirements. The resource reports were described
as an alternative method to meeting the requirement of Appendix A to
Part 380 of the Commission's regulations. Since that time, the industry
has generally followed the resource report guideline in the Certificate
Manual instead of the guidelines listed in Appendix A to Part
[[Page 55686]]
380. Appendix G served as the template for the industry outreach
training sessions we have been conducting since 1995, to assist the
industry in preparing Environmental Reports. Accordingly, the NOPR
proposes to replace the current Appendix A with the resource reports,
slightly modified, from the Certificate Manual.
We note that, generally, conducting the environmental review is the
most time consuming part of the certificate process. The Commission
believes this is the result of several factors. First, too often
pipelines are filing minimal information with the intention of filing
the missing information at some later date. Accepting such filings
raises unreasonable expectations on the part of those who use the date
of filing as a measure of how much time it takes the Commission and its
staff to review projects. Further, applicants may be unsure of what is
needed because many of the Commission's environmental regulations
dealing with pipeline projects are either outdated, found in several
parts of the CFR, or, in the case of the environmental report, as
stated, replaced in current practice by a preferred format that does
not appear anywhere in the regulations.
An incomplete filing necessitates time consuming staff data
requests. However, the more complete the environmental information is
at the time of filing, the more expeditiously the Commission can
process the application.
While the resource reports may seem to represent a large amount of
material, they are written in an attempt to cover all types of possible
applications. They include specifications for what details are needed
based on project specifics. Indeed, the proposed regulation makes it
clear that some projects do not require some individual resource
reports at all. Finally, each resource report must be only as detailed
as required by the complexity of the proposal and its potential for
environmental impact.
To further improve the efficiency of the certificate process, we
are proposing to add a checklist at Appendix A to this section
specifying the minimum content of an acceptable environmental report.
Failure to provide at least the checklist items will result in
rejection of the application. This will ensure the staff has the
minimum reasonable environmental filing to begin its review.
Further, there are certain important mitigation measures that need
to be addressed for every construction filing. If each filing can be
measured against the same yardsticks, review can be completed faster.
Therefore, in addition to replacing Appendix A, as discussed above, the
NOPR proposes that pipelines describe how their project compares to two
staff guidance documents, the ``Upland Erosion Control, Revegetation,
and Maintenance Plan'' and ``Wetland and Waterbody Construction and
Mitigation Procedures,'' and describe in detail what measures they
propose to provide equal or greater protection to the environment.
A third guidance document, ``Guidance for Reporting on Cultural
Resources Investigations,'' is referenced to assist applicants in
preparation of the material required by the cultural resources portion
of section 380.12. All of these guidance documents have been the
subject of extensive outreach training. Since 1992, the staff has
conducted training sessions in an effort to assist the industry in
understanding the procedures that are specified in these documents. The
response has been very positive.
Finally, we propose to add two new regulations in sections 380.13
and 380.14 that instruct applicants on how to assist the Commission in
demonstrating its compliance with the Endangered Species Act
20 and the National Historic Preservation Act.21
Both of these sections outline the current process that applicants need
to follow in order to prepare the information the Commission needs for
these acts. These processes have been part of the training sessions
mentioned above, although in the case of section 380.13 there is
currently no guideline for the endangered species process.
Nevertheless, we are simply proposing that the Commission codify what
is current practice to assist applicants in knowing what is required of
them, thereby reducing the potential for extensive time-consuming data
requests and the need to consult with other agencies during the
Commission's review process. Once again, the more consultation that can
be accomplished early on in the proceeding the faster the environmental
review can be completed.
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\20\ 16 U.S.C. 1531-1544.
\21\ 16 U.S.C. 470h-2.
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A few of the proposed changes are to provide specific guidance
where none currently exists, thereby making it easier to prepare
complete filings and otherwise comply with the existing regulatory
requirements. In some cases, the proposed regulation will result in
faster preparation of complete environmental filings, which should, in
turn, facilitate faster review. The Commission's intent is to provide
the easiest, fastest route for the consideration of proposed pipeline
projects. Adherence to the proposed regulations will minimize extensive
and repeated environmental data requests that result from incomplete
applications and contribute to delaying the process.
We note that the proposed changes to the environmental regulations
discussed above do not change the filing requirements burden on the
pipeline. They simply codify existing standard practice to help
expedite the environmental review process.
E. Modifying Electronic Filing Requirements
The Commission currently requires that an electronic filing
consists of three parts, File1, a structured ASCII record, File2, a
footnote record applicable to material filed in File1, and File3, an
unstructured ASCII record. To reduce the burden of the current filing
requirements, effective upon issuance of this NOPR, the Commission will
only require that material currently submitted electronically be
submitted in File3, the unstructured ASCII format. Further, the header
and trailer records formerly required for File3 can also be eliminated.
Any further changes to the Commission's electronic filing requirements
will be discussed at the electronic filing technical conference to be
held in Docket No. PL98-1-000 on October 22, 1998.
IV. Discussion
A. Part 2--General Policy and Interpretations
Part 2 contains the Commission's statements of general policy and
interpretations regarding the NGA, NEPA, the Economic Stabilization Act
of 1970 and Executive Orders 11615 and 11627, the NGPA and the Public
Utility Regulatory Policies Act of 1978.
Section 2.1--Initial Notices; Service; and Information Copies of Formal
Documents
Section 2.1 describes the Commission's policy for publishing notice
in the Federal Register upon the institution of certain proceedings
before the Commission. Section 2.1(a)(1)(viii)(A) through (D) provides
that notice shall be published in the Federal Register of certain
proceedings pertaining to independent producers. This section will be
removed, since the Commission no longer regulates producer functions.
Section 2.55--Definition of Terms Used in NGA Section 7(c)
Section 2.55 defines facilities that are excluded from the
requirements of section 7(c) of the NGA and may, therefore, be
constructed without
[[Page 55687]]
additional certificate authority. Section 2.55(a) exempts auxiliary
facilities from NGA section 7(c) authority. These facilities include
valves, drips, yard and station piping, cathodic protection equipment,
gas cleaning, cooling, and dehydration equipment, which are merely
auxiliary or appurtenant to an existing transmission pipeline system
and which are installed only for the purpose of obtaining more
efficient or more economical operation of authorized transmission
facilities. The Commission clarifies that auxiliary facilities
installed at the same time and related to newly proposed jurisdictional
facilities do not qualify for the exemption under section 2.55(a).
Facilities constructed along with new transmission facilities do not
qualify as auxiliary under section 2.55(a) since the exemption is
limited to installations which are designed specifically to improve the
operation of an existing transmission system.
The Commission proposes to revise section 2.55(b)(1)(ii),
concerning the replacement of existing facilities, to clarify that this
section only applies to replacements that involve construction within
the certificated right-of-way. This is consistent with the Commission's
finding in NorAm Energy Corporation,22 that eminent domain
authority does not apply to replacement activities which are not within
the certificated facility footprint, since eminent domain is an adjunct
to the certificate itself.
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\22\ 67 FERC para. 61,173 (1994).
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Currently, section 2.55(d) exempts from section 7(c) of the NGA
taps that a pipeline constructs in order to take deliveries of natural
gas from independent producers. The Commission proposes to remove this
section as duplicative of the authority we propose to be available
under section 157.211, which will cover the construction of all
delivery points.
Section 2.69--Guidelines To Be Followed by Natural Gas Pipeline
Companies in the Planning, Location, Clearing and Maintenance of
Rights-of-Way and the Construction of Aboveground Facilities
The Commission proposes to move the current section 2.69, which
provides generic facility siting guidelines to part 380. Section 2.69
was promulgated at the same time as the Commission's initial NEPA
regulations in 1970. Since the current NEPA regulations are found at
part 380, the Commission proposes that it would be more appropriate to
move the section 2.69 material so that it would be located with the
other NEPA regulations. The Commission proposes to remove section 2.69
and replace it with a new section 380.15.
Section 2.102--Policy Respecting Production-Related Activities
Performed by an Interstate Pipeline
Section 2.102 sets forth the Commission's policy respecting
production-related activities performed by interstates pipelines.
Production-related activities were relevant from a regulatory
standpoint when the Commission regulated first sales of natural gas and
considered whether to add such costs to the maximum lawful price for a
particular sale of gas. However, the Decontrol Act deregulated all
wellhead price controls and provided that all first sales of natural
gas are no longer subject to federal regulation. In response to the
Decontrol Act, the Commission issued Order No. 567, which removed
regulations pertaining to the sales of natural gas production. Thus, we
propose to remove this section as outdated, since the Commission no
longer regulates wellhead sales.
Appendix A--Guidance for Determining the Acceptable Construction Area
for Replacements
The Commission also proposes to add new Appendix A to Part 2 which
provides the guidance for determining the acceptable construction area,
including temporary work space, for replacement pipeline facilities
under section 2.55.
B. Part 153--Application for Authorization to Export or Import Natural
Gas
Part 153 sets forth the regulations for siting, construction and
operation of facilities for the import and export of natural gas
between the United States and a foreign country. The Commission
recently updated this part in Docket No. RM97-1-000.23 That
order also provided for an environmental report to accompany all
applications filed under Part 153.
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\23\ Applications for Authorization to Construct, Operate, or
Modify Facilities Used for the Export or Import of Natural Gas,
Order No. 595, 62 FR 30435 (June 4, 1997) FERC Stats. and Regs.
para. 31,054 (May 28, 1997).
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Section 153.8--Required Exhibits
The Commission believes that section 153.8 should comport with the
proposed changes to the environmental report requirement proposed in
part 157. Therefore, the Commission proposes to revise section
153.8(a)(7) to track the proposed wording of Exhibit F-I in section
157.14(a)(6-a) of part 157.
Section 153.21--Conformity with Requirements
Section 153.21(b) sets forth the criteria for the rejection of
filings made under this subpart. The Commission proposes to revise this
section to authorize the Director of OPR to reject applications that do
not conform to the requirements of this part within 10 days of filing,
without prejudice to the applicant's refiling a complete application.
Currently, the Director must notify the applicant of all deficiencies
and provide at least 20 days for the applicant to amend the application
and submit the omitted information. The proposed revision is consistent
with the existing authority the Director of OPR has to reject tariff or
rate schedule filings as well as prior notice filings pursuant to the
authority delegated to the Director by the Commission in sections
375.307 (b)(2) and (e)(6), respectively, of the Commission's
regulations.
C. Part 157--Applications for Certificate of Public Convenience and
Necessity and for Orders Permitting and Approving Abandonment Under
Section 7 of the Natural Gas Act
The Commission's regulations under Part 157 specify the eligibility
requirements for both individual, blanket and optional certificates
under NGA section 7(c), as well as detail the contents required for
applications to request such certificates. In addition, Part 157
specifies the requirements necessary for orders permitting and
approving abandonment under NGA section 7(b) and presently provides a
blanket certificate for pipeline sales of natural gas.
In Order No. 636, interstate pipelines were issued blanket sales
certificates, covered under section 284.284 of the regulations, which
obviates the need for any blanket pipeline sales authorization under
part 157. The Commission proposes to amend its regulations in Subpart F
of part 157 to remove blanket sales authorization. However, pipelines
that have not yet become subject to Order No. 636 will still be able to
seek individual NGA section 7(c) authorization to perform sales service
in accordance with part 157.
References to producer sales in Part 157 have been removed, since
Subpart B of Part 157, which concerned filings by producers and
jurisdictional gatherers for certificates under NGA section 7 was
removed by Order No. 567 in response to the Decontrol Act.
[[Page 55688]]
Section 157.6--Applications; General Requirements
This section sets forth the general requirements for applications
to construct and operate facilities, provide service or abandon
facilities filed under NGA section 7. The Commission proposes to amend
section 157.6(a)(1) to remove as outdated the reference to the initial
date the Commission implemented its electronic filing requirements. The
Commission also proposes to amend section 157.6(a)(1)-(4) to simplify
the requirements. We also propose to redesignate existing section
157.6(a)(4) as new section 157.6(a)(5).
In addition, it is not clear that the regulations currently require
the same exhibits for both NGA sections 7(b) and 7(c). Therefore,
redesignated section 157.6(a)(5) and existing section 157.18 will state
that applications under sections 7 (b) and(c) must conform to the
requirements of section 157.5 through section 157.14. We also intend to
clarify that applications filed under NGA section 7(b) must also
conform to the additional requirements set forth in section 157.18.
Section 157.6(b) details the information required to be included in
a filing made under this subpart as well as the applicable fees. The
Commission proposes to amend this section to remove ``filing fee'' from
the heading and any reference to filing fees in the section. Filing
fees for such applications were removed by Order No. 548.24
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\24\ Elimination of Certain Filing Fees, Order No. 548, 58 FR
2968 (Jan. 7, 1993).
---------------------------------------------------------------------------
The Commission also proposes to add a new section 157.6(b)(8),
which will require pipelines to file the information necessary to make
an upfront determination on the rate treatment of new construction
projects in accordance with the Commission's Statement of Policy in
Docket No. PL94-4-000.25 This proposed addition will serve
to put pipelines on notice that they must provide justification for
their pricing of a particular construction project at the time an
application is filed.
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\25\ Pricing Policy For New And Existing Facilities constructed
By Interstate Natural Gas Pipelines, 71 FERC para. 61,241 (1995).
---------------------------------------------------------------------------
Section 157.8--Acceptance for filing or rejection of applications
This section sets forth the criteria for acceptance or rejection of
filings made under this subpart. The Commission proposes to revise this
section to refer to the ``Office of Pipeline and Producer Regulation''
as the ``Office of Pipeline Regulation.'' The Commission is also
proposing to amend this section to authorize the Director of OPR to
reject applications that do not conform to the requirements of this
part within 10 days of filing, without prejudice to the applicant's
refiling a complete application. Currently, the Director must notify
the applicant of all deficiencies and provide at least 20 days for the
applicant to supplement the application and submit the omitted
information. Revising this regulation is consistent with the existing
authority the Director of OPR has to reject tariff or rate schedule
filings as well as prior notice filings under the Subpart F blanket
construction certificate pursuant to the authority delegated to the
Director by the Commission in sections 375.307(b)(2) and (e)(6),
respectively, of the Commission's regulations. However, we do not
intend to reject applications that do not initially contain or include
complete environmental reports because the pipeline has not been
allowed access to the proposed route by the affected landowners to
perform the necessary surveys. The Commission also proposes to amend
section 385.2001(b) consistent with this proposed change.
Section 157.9--Notice of application
This section details the notice requirements for applications. In
order to help expedite the processing time for applications, we propose
to issue a notice within 10 days of filing.
Section 157.10--Interventions and Protests
This section details the requirements for intervening in Commission
proceedings, including the filing of protests and requests for formal
hearing. The Commission has determined that allowing interventions in
response to Draft Environmental Impact Statements is also appropriate.
In addition, we propose to amend section 157.10 to clarify that
pipelines do not have to serve voluminous or difficult to reproduce
materials, such as copies of environmental information, upon all
parties in a proceeding, except as specifically requested. This
procedure is consistent with our requirements for pipelines filing rate
schedules and tariffs under part 154. Therefore, pipelines must serve a
full copy of an application upon any party that requests such service
within two business days. In addition, pipelines will be required to
keep any voluminous or difficult to reproduce material, such as
complete sets of environmental information, on file with the Commission
and make such information available for inspection in the project area.
The Commission intends for pipelines to make such information available
in appropriate project areas, such as central locations along a
proposed route. Because the scope of projects vary, we will not set
forth specific locations for the placement of such information.
However, we expect pipelines to make all such information readily
available in the project area.
Section 157.14--Exhibits
This section sets forth the exhibits that are required to be
attached to each application filed under this subpart. The Commission
proposes to amend section 157.14(a) to remove as outdated the reference
to the initial date the Commission implemented its electronic filing
requirements.
In addition, existing section 157.14(a)(6-a)-(6-c), Exhibits F-I
through F-III should be removed as outdated. The Commission proposes to
replace those sections with a revised section 157.14(a)(6-a) Exhibit F-
I, which will be created from the environmental report required in new
sections 380.12 through 380.14. These sections will replace the current
Appendix A to part 380. This change is designed to expedite preparation
and review of the environmental report since it will give better
guidance than the current appendix and will standardize the format of
the environment report, making it easier for the staff to find specific
information. As stated, new section 380.12 is derived from the current
optional format for the environmental report that is contained in the
manual for electronic filing of applications. Many regulated companies
already use this format. For a more detailed discussion of the proposed
changes, see the section of this NOPR on part 380.
Section 157.14(a)(11) currently requires pipelines to file detailed
information pertaining to system-wide annual and peak day gas
requirements, various historical residential commercial and industrial
load requirements and related future estimates, historical supply
curtailment information, transportation agreements, market surveys and
a system supply life-index. The Commission recognizes that some of
these requirements are outdated. The Commission is reviewing its
policies concerning market need in the pending rulemaking in Docket No.
RM98-10-000. Therefore, the Commission is not proposing any changes in
this proceeding.
Section 157.14(a)(12) currently requires pipelines to provide
studies regarding any impacts related to potential direct industrial
customers converting from other fuels to natural gas.
[[Page 55689]]
This section was primarily used at times when pipelines performed a
bundled merchant function and when priorities for natural gas use were
relevant. Continuing to require the detailed information in this
exhibit is no longer necessary, since the Commission's emphasis is on
unbundled, open-access transportation, not bundled sales. End use
priorities are irrelevant when adequate supply is available for all
users. Thus, the Commission proposes to remove section 157.14(a)(12).
Section 157.14(a)(14) requires an applicant to provide a plan for
financing the proposed facilities. The Commission believes that some of
the existing financial information is no longer needed. The Commission
proposes to revise section 157.14(a)(14)(i)-(iv) to require, among
other things, only the information the Commission needs to make a
financial determination.
The Commission also proposes to revise section 157.14(a)(14)(vi) to
require that applicants state how they will determine the Allowance for
Funds Used During Construction when the applicant is a pre-operational
new entity or proposes incremental rates for services from the
facilities covered by the application. The Commission proposes to add
this requirement because the AFUDC rate formula contained in our
accounting regulations contemplates rolled-in embedded cost ratemaking
for entities with existing pipeline operations. 26 Depending
on the specific facts and circumstances, use of the AFUDC rate formula
may not be appropriate for newly formed entities or where rates for
services from new facilities are to be determined on an incremental
basis. The Commission also proposes to remove paragraphs (vii)-(xii) of
section 154.14(a)(14).
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\26\ 18 CFR part 201, Gas Plant Instruction No. 3(17).
---------------------------------------------------------------------------
Section 157.16--Exhibits Relating to Acquisitions
This section details the exhibits, in addition to those required in
section 157.14, that must be filed for applications involving the
acquisition of facilities. Specifically, the Commission proposes to
revise section 157.16(c)(1) to require the pipeline to include a brief
statement explaining the basis or methods used to derive the related
depreciation, depletion and amortization reserves.
Section 157.17--Applications for Temporary Certificates in Cases of
Emergency
This section sets forth the criteria for seeking temporary
certificate authorization to construct facilities or provide service in
an emergency situation. The Commission proposes to amend sections
157.17 (a) and (b) to remove as outdated the reference to the date the
Commission initiated its electronic filing requirements.
Section 157.18--Applications to Abandon Facilities or Services;
Exhibits
This section details the requirements necessary for seeking
abandonment authorization for facilities or service. In line with the
discussion of the proposed clarification of section 157.6, the
Commission proposes to add an explicit statement that makes it clear
that an environmental report is required for certain kinds of
abandonments as specified in section 380.3(c)(2).
The Commission also proposes to amend section 157.18(f) (2) and (3)
to provide information related to property abandoned by sale, including
a brief statement explaining the basis or methods used to derive the
accumulated depreciation related to the property to be disposed of, as
well as the tax basis of such property.
Section 157.20--General Conditions Applicable to Certificates
This section details terms and conditions that the Commission
attaches to the issuance of each certificate. The Commission proposes
to revise section 157.20(b) to allow for facilities to be completed
``and made available for service'' instead of ``in actual operation''
within the period of time specified in a particular order. This
proposed change is meant to address concerns that events outside a
pipeline's control could prevent facilities from being placed in
operation within the specified time frame, e.g., a shipper does not
actually flow gas on time. Since this change will still require a
pipeline to construct facilities and have them completed and
``available'' within the time frame specified in the certificate order,
the current intent of the regulations will not be frustrated. In order
to ensure that pipelines have a legitimate reason for not commencing
service on time, the Commission proposes to require the pipeline to
provide notification of the reason service cannot commence, for
example, that the end-user/shipper is unable to meet the imposed
timetable. We also propose that section 157.20(c) and (d) be amended to
remove as outdated the references to the date the Commission initially
implemented its electronic filing requirements. In addition, section
157.20(f) should be removed as obsolete since it refers to fees
prescribed in section 159.2, which was removed from the regulations by
Order No. 542 27. As a result, section 157.20(g) will be
redesignated section 157.20(f).
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\27\ Deletion of Certain Outdated or Nonessential Regulations
Pertaining to the Commission's Jurisdiction over Natural Gas, Order
No. 542, 57 FR 21891 (May 26, 1992), FERC Stats. and Regs. para.
30,945 (May 1, 1992).
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Section 157.21--Abandonment of Purchases
This section concerns the abandonment of purchases of natural gas
by producers, as well as purchases under expired contracts between
pipelines. The Decontrol Act deregulated all first sales of natural gas
as of January 1, 1993. Additionally, Order No. 636 removed the
section's applicability to pipeline sales, since Part 284 was amended
to issue pipelines a blanket certificate for unbundled sales, along
with pregranted abandonment. Abandonment of producer and pipeline
purchases no longer require separate coverage under Part 157.
Therefore, the Commission proposes to remove section 157.21 as
obsolete.
Section 157.102--Contents of Application and Other Pleadings
This section sets forth the contents required for applications,
amendments, exhibits and other submissions made under this subpart. The
Commission proposes to amend section 157.102(a)(1) to remove the last
sentence, which refers to filing fees for applications filed under this
subpart. Filing fees for such applications were removed by Order No.
548.
In addition, the Commission also proposes to amend the reference at
section 157.102(b)(1)(v) to the currently required environmental report
to comport with the revised wording at section 157.14(a)(6-a).
Section 157.103--Terms and Conditions; Other Requirements
The section details the terms and conditions applicable to filings
made under this subpart. The Commission proposes to amend section
157.103(j) to remove the words ``and Producer'' from the reference to
the ``Office of Pipeline and Producer Regulation.''
[[Page 55690]]
Subpart F--Interstate Pipeline Blanket Certificates and Authorization
Under Section 7 of the Natural Gas Act for Certain Transactions and
Abandonment
Subpart F implements Order No. 234 28 and allows
interstate pipelines to obtain blanket certificate authorization to
conduct certain NGA section 7 transactions, including making sales for
resale in interstate commerce. However, as part of the unbundling
mandated by Order No. 636, interstate pipelines were issued blanket,
unbundled sales certificates in accordance with Section 284.284. The
Commission proposes to remove all references to blanket pipeline sales
in subpart F of Part 157 as outdated.
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\28\ Interstate Pipeline Certificates for Routine Transactions,
Order No. 234, 47 FR 24254 (June 4, 1982), FERC Stats. and Regs.
para. 30,368 (May 28, 1982).
---------------------------------------------------------------------------
This proposed action will not take away any blanket authority
previously issued to interstate pipelines who have not restructured.
Rather, it will conform the existing regulations to the current
regulatory climate by requiring pipeline sales to be performed under
Part 284.
Nevertheless, interstate pipelines that do not have Subpart F
blanket certificates and are not currently covered under Order No. 636
can still seek individual NGA section 7(c) certificate authorization
under Subpart A of Part 157 to make interstate sales of natural gas.
In addition, the Commission proposes to revise various other
sections in Subpart F in order to bring the existing regulations up to
date to match current policies. These proposed changes will include
removing obsolete language, eliminating ambiguities, and consolidating
regulations.
Section 157.201--Applicability
This section details the scope of the authority of this subpart.
The Commission proposes to amend section 157.201(a) to remove reference
to ``sales arrangements'' in the scope of the blanket certificate as
obsolete.
Section 157.202--Definitions
Section 157.202 defines the terms applicable to blanket certificate
transactions under subpart F. In addition to making housekeeping-type
changes, the Commission proposes to expand the definition of ``eligible
facility'' contained in section 157.202(b)(2)(i). Currently, there are
various types of facilities, most notably mainline and compression
facilities, that are not eligible for automatic or prior notice
treatment under the Subpart F blanket certificate. As previously
described, the Commission proposes to allow pipelines to construct,
operate, rearrange, replace and abandon more facilities than are
currently covered under the blanket certificate, as more fully
described below.
In order to allow more flexibility under the blanket certificate,
the Commission proposes to allow pipelines to construct, as eligible
facilities, mainline and lateral replacements that do not currently
qualify under section 2.55(b) because they will have an impact on the
capacity of the mainline facilities. This proposal is meant to address
the problem being faced by pipelines trying to replace, for example, a
deteriorated or obsolete 40-year old 17-inch or 22-inch pipeline with
like-sized pipe, or a section of deteriorated or obsolete 18-inch pipe
located between existing 20-inch sections of pipe for continuity and/or
pigging purposes. To the extent that odd-sized replacement pipe is not
available, or continuity in line size is operationally necessary, a
pipeline should be able to go up to the next available standard size in
order to complete the replacement. Such replacements must be done for
sound engineering reasons and not for the purpose of creating
additional mainline capacity. These replacement facilities will still
be subject to the spending limits in section 157.208 and the
environmental requirements of section 157.206(d). In light of this
change, we seek comment on the impact of this proposal as well as on
whether or not to further expand the scope of the Subpart F blanket
certificate.
The Commission proposes to revise section 157.202(b) to add a new
category under the blanket certificate titled ``Temporary
Compression.'' 29 This is intended to allow pipelines to
install temporary compression facilities to maintain certificated
volumes during maintenance or repair of permanent compression
facilities. This proposal is consistent with our issuance of blanket
certificates for temporary compression,30 and is intended to
extend such authorization to all Subpart F blanket certificate holders.
The Commission proposes to implement this change by creating new
section 157.209 Temporary compression facilities.
---------------------------------------------------------------------------
\29\ We propose to replace Sec. 157.202(b)(4) ``Gas supply
facility'' with ``Temporary compression'' as further discussed
herein. Removal of the definition will not change the status of a
gas supply facility as an eligible facility.
\30\ See Northwest Pipeline Corporation, 67 FERC para. 61,289
(1994) and Transwestern Pipeline Company, 76 FERC para. 61,211
(1996).
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The Commission also proposes to revise section 157.202(b)(2)(i) in
order to reconcile an ambiguity between the Subpart F blanket
construction authority and the regulations implementing the Part 284
blanket transportation certificates. We propose to specifically include
receipt points as eligible facilities. In describing part 284 flexible
receipt point authority, section 284.221(g)(3) includes, as receipt
points to which natural gas volumes may be reassigned, eligible
facilities under section 157.208 that are authorized to be constructed
under the Subpart F blanket certificate. However, receipt points are
not specifically included in the section 157.202 definition of eligible
facilities. Therefore, the Commission proposes to revise section
157.202(b)(2)(i) to clarify that it includes receipt points (``any
facility, including receipt points, needed by the certificate holder to
receive gas into its system'') as facilities eligible for construction
under Subpart F. This clarification is consistent with an order issued
in Texas Eastern Transmission Corporation,31 where the
Commission recognized that Texas Eastern could rely on its part 157
blanket construction certificate to construct receipt point facilities
and other eligible facilities to provide transportation service for its
open-access shippers.
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\31\ 62 FERC para. 61,196, at 62,390 (1993).
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We also propose to clarify that the reference in section
157.202(b)(2)(i) to ``interconnecting points between transporters'' is
intended to include only interconnecting facilities such as the tap,
metering, M&R facilities and minor related piping as eligible
facilities.
Section 157.202(b)(2)(ii) sets forth the facilities that are not
included as an ``eligible facility.'' These include mainlines or
extensions of mainlines, compressors and looping that alter mainline
capacity, storage facilities, and sales taps. Consistent with the
proposed inclusion of the replacement facilities described above as
eligible facilities, the Commission proposes to revise this section to
recognize that these replacements are no longer excluded.
The Commission also proposes to amend section 157.202(b)(2)(ii)(E)
to remove the words ``Sales Tap'' and add, in their place, the words
``Delivery points under section 157.211.'' In section 157.202(b)(10),
we propose to remove the words ``Sales tap(s)'' and add in their place,
the words ``Delivery points.'' This is intended to reflect the post-
restructuring unbundling of sales service. Sales tap is defined as a
facility necessary to deliver gas to a distribution or end-use
customer. The sales tap regulations were promulgated at a time when
pipelines generally made sales for
[[Page 55691]]
resale from their own system supplies, rather than transport shipper/
user-owned gas. Delivery points, at the time, were used for direct
sales. However, pipeline sales now occur at the unbundling point, which
is located upstream of the general market area and no longer at the
city-gate. Thus, facilities constructed to deliver gas to shipper/end-
users would now be considered delivery facilities and not sales taps.
Delivery facilities include only the tap, M&R facilities and minor
related piping.
The Commission proposes to implement the change to section
157.202(b)(2)(ii)(E) and section 157.202(b)(10) by removing existing
section 157.212--Changes in delivery points--and revising section
157.211--Sales taps--to become new section 157.211--Delivery points.
This new section will provide for automatic and prior notice
authorization to construct, replace, modify or operate any delivery
point. The term modified would cover the conversion of receipt points
to delivery points and vice versa. As proposed, pipelines will be able
to construct facilities to attach new customers without going through
the existing prior notice procedure, to the extent that the new
delivery point does not involve bypass. The Commission proposes to
retain the prior notice requirement in instances associated with
bypass. In addition, taps currently constructed under section 2.55(d),
which we propose to remove, will be covered by the automatic authority
of section 157.211. Thus, pipelines holding blanket construction
certificates will be able to automatically construct taps in order to
either deliver gas to or take gas from independent producers.
The Commission proposes to revise section 157.202(b)(2)(ii)(D),
which excludes various storage facilities from the definition of
``Eligible facility.'' We propose to combine sections
157.202(b)(2)(ii)(D) and (G) and extend the blanket authority for tests
or other minor storage operations which do not increase certificated,
including grandfathered, storage capacity, provided the operation is
otherwise able to meet the terms of section 157.208.
Existing section 157.202(b)(4) defines a ``Gas supply facility''.
We propose to remove the definition to reflect that gas attached is no
longer exclusively destined for the merchant function of an interstate
pipeline company. The phrase is commonly accepted and its removal
should not cause any confusion. We propose to rename Section
157.202(b)(4) ``Temporary compression'', which, as described above,
means compressors installed for the limited purpose of maintenance or
repair of existing permanent compressor unit(s).
The Commission proposes to revise section 157.202(b)(5) to provide
a more objective description of main line facilities. We propose to
remove the phrase ``small diameter lateral'' and add, in their place,
the words ``small diameter supply or delivery lateral'' to further
clarify what facilities are not considered main line facilities.
In order to clear up another ambiguity, we propose to revise
section 157.202(b)(7), which defines the word ``Project'', to remove
the phrase ``without any further construction of facilities.'' This
phrase seems to preclude facilities that are jointly constructed. Since
section 157.202(b)(8), which defines ``Project cost'', states, in part,
``* * * In the case of a project constructed jointly * * *,'' this
proposed change will recognize that jointly constructed facilities are
contemplated under the Subpart F blanket certificate. However, the same
total project cost limits apply to individual or jointly constructed
facilities.
The Commission proposes to remove section 157.202(b)(12) ``Storage
service'' since storage is now provided under Subpart G of Part 284 as
part of a pipeline's transportation blanket certificate. Consistent
with this proposal, we intend to also remove section 157.213, as
detailed below, which provides pipelines with blanket authority under
Subpart F of Part 157 to provide storage services.
The Commission proposes to remove sections 157.202(b)(13) and
(b)(14) dealing with high priority end-use, because they relate to
sales curtailment situations. These references are no longer relevant
under the Subpart F blanket certificate. All existing sales service
occurs under individual NGA section 7 authorization or under Subpart J
of Part 284.
The Commission also proposes certain other changes to the
definitions contained in section 157.202. Those proposed changes are
described in detail below, in the discussion of various other sections
in Subpart F.
Section 157.203--Blanket Certification
This section provides for blanket certificate coverage for the
activities authorized by this subpart. We propose to amend this section
to make conforming changes based on the proposals herein. The
Commission proposes to remove references made in various parts of this
section to sections 157.210 and 157.213, which provide for blanket
sales and contract storage service. Both of these services are now
covered by the blanket transportation and sales certificates issued
under Part 284. We also propose to remove reference throughout this
section to section 157.212, since it will be removed and replaced with
section 157.211. The Commission proposes to add a reference in section
157.203(b) to recognize that the blanket certificate is proposed to
cover temporary compression facilities in new section 157.209(a). The
Commission further proposes to amend section 157.203(b) to remove
reference to section 157.217, which allows pipelines to permit
customers to change rate schedules. Rate schedules are offered under
Part 284 and may no longer need to be referenced in Subpart F. However,
we recognize that there could be existing customers with NGA section
7(c) individually certificated services that may, in the future, seek
to use the existing authority in section 157.217. Therefore, we seek
comment on our proposal to remove this section. In addition, we propose
to amend section 157.203(c) to remove the references to section
157.210,32 section 157.212 and section 157.213(b).
---------------------------------------------------------------------------
\32\ We note that the 18 CFR Chapter I regulations contains a
typographical error in Sec. 157.203(c) misidentifying the reference
to Sec. 157.210 as Sec. 157.211 and Sec. 157.211(a)(2) as
Sec. 157.211(b).
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Section 157.204--Application Procedures
This section details the procedures for interstate pipelines to
apply for the blanket certificate authority available under this
subpart. The Commission proposes to remove: (1) Section 157.204(d)(2),
which refers to outdated budget-type certificates; (2) section
157.202(d)(4) which requires filing a list of rate schedules under
which sales or storage service is provided; and (3) section
157.204(d)(5), which requires filing a list of storage field tests
commenced under budget-type certificates. These sections are obsolete.
The budget-type certificates have been completely replaced by the
Subpart F blanket certificates and need not be referenced any longer.
As a result, section 157.204(d)(3) will be redesignated section
157.204(d)(2). Pipeline sales and storage service are provided under
case-specific NGA section 7(c) certificates or under Part 284 and will
no longer be covered under Subpart F. We also propose to remove section
157.204(e), which refers to filing fees for applications for blanket
certificates filed under this subpart. Filing fees for such
applications were removed by Order No. 548.
[[Page 55692]]
Section 157.205--Notice Procedures
Section 157.205 sets forth the notice procedure requirements
applicable to activities under this subpart that do not qualify for
automatic authorization. Section 157.205(a) provides that no blanket
certificate activity shall be undertaken unless the notice procedures
have been fulfilled and there are no active protests. The Commission
proposes to amend section 157.205(a) to remove: (1) The reference to
blanket sales and storage in sections 157.210 and 157.213(b)
respectively, since those services are now covered under Part 284; (2)
the reference to section 157.212, since, as described above, section
157.212 will also be removed; and (3) the reference to section
284.223(b) and the language ``or by Part 284'', because blanket
transportation services under Part 284 were removed from the scope of
the prior notice and protest procedures by Order No. 537.33
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\33\ Revisions to Regulations Governing Transportation Under
Section 311 of the Natural Gas Policy Act of 1978 and Blanket
Transportation Certificates, Order No. 537, 56 FR 50235 (Oct. 4,
1991), FERC Stats. & Regs. para. 30,927 (Sept. 20, 1991). Order No.
436 provided blanket transportation under Sec. 284.223(b), subject
to the prior notice requirement under Subpart F. In Order No. 537,
we removed this requirement to eliminate the incentive for pipelines
to rely on NGPA section 311 transportation authority rather than
their Part 284 blanket transportation certificates.
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Section 157.205(b) details the contents required for applications
filed under the prior notice procedures. This section currently
requires pipelines to file an original and fifteen copies of all prior
notice applications. The Commission proposes to reduce the number of
copies of applications that must be filed from fifteen to seven, which
corresponds to the number of copies that are filed for applications
under Subpart A of this chapter. We have determined that fifteen copies
are not necessary for the Commission to process prior notice
applications in a timely manner. Therefore, section 157.205(b) should
be amended to remove the word ``fifteen'' and add, in its place
``seven.'' In addition, section 157.205(b) should be amended to remove
an obsolete reference to filing fees and outdated references to
``October 31, 1989.'' In the same manner, section 157.205(c) should be
removed in its entirety since it prescribes fees that have been removed
by Order No. 548. As a result, paragraphs (d) through (i) should be
redesignated (c) through (h).
Redesignated sections 157.205(c) and (f) should also be amended to
remove the words ``and Producer'' from the reference to the ``Office of
Pipeline and Producer Regulation.''
The Commission further proposes to amend redesignated section
157.205(c) to add that deficient applications will be rejected within
10 days of filing, without prejudice to the pipeline's refiling a
complete application.
In order to reduce the time it takes to process a prior notice
filing, the Commission proposes to amend redesignated section
157.205(d) to add that a notice be issued within 10 days of the date of
filing, and to remove the current vague requirement ``as soon as it is
practicable.''
We are concerned that the existing regulation in redesignated
section 157.205(e)(2) does not require parties to set forth specific
and substantial reasons for protesting a prior notice filing.
Therefore, we propose to amend section 157.205(e)(2) to add that
protestors specifically set out the reasons and rationale for their
protest.
The Commission proposes to allow the Director of OPR to make a
determination whether protests raise a substantive issue and provide
any specific detailed reason or rationale for the objection, and if
not, to dismiss them. We propose that redesignated sections 157.205(f),
(g), and (h) include language authorizing the Director of OPR to
dismiss such protests.
Concurrently, we are proposing to amend the delegation of authority
regulations by adding new section 375.307(a)(13), which will be
redesignated section 375.307(a)(11), to allow the Director of OPR to
dismiss such protests.
Section 157.206--Standard Conditions
This section imposes certain conditions upon any activity a
pipeline undertakes under its blanket certificate. We propose to remove
section 157.206(b)--Production-related costs--because the Decontrol Act
deregulated all wellhead price controls and Order No. 567 removed
regulations pertaining to the sales of natural gas production. Since
the Commission no longer regulates the sales price of natural gas, add-
ons to maximum lawful prices for such sales are no longer relevant.
Section 157.206(c) states that the proper apportionment of costs
related to transportation of liquids and liquefiables and natural gas
will be determined in a rate proceeding. The revenue received from the
transportation of liquids and liquefiables is currently reported in
section 154.312(j)(2)(v)(C) [Schedule G-5. Other Revenues], and must be
included when a pipeline files for a change in its rates or charges,
except for a minor rate change. The revenue treatment is related to
transportation performed under Part 284, and no longer needs to be in
Subpart F. Therefore, we propose to remove section 157.206(c).
The Commission proposes to create a lead-in to the environmental
conditions of subpart F in section 157.206(d) to indicate that the
conditions apply only to activities under the blanket certificate that
involve ground disturbance or changes to operational air and noise
emissions. This will avoid uncertainty about their applicability to
sections of Subpart F that clearly have no potential for environmental
impact.
We propose to amend section 157.206(d)(1) to remove the reference
to old section 2.69 and to replace it with a new section 380.15.
The Commission also proposes to revise section 157.206(d)(5) to
bring it into line with current usage concerning limitations on
compressor station noise levels. This proposal parallels the proposed
modification for the new environmental report for NGA section 7
filings. (See the discussion of changes to Part 380.)
The Commission proposes to remove existing section 157.206(e) as
obsolete because budget-type certificates have been replaced by the
Subpart F blanket certificates.
The Commission proposes to revise existing section 157.206(f) to
allow for facilities to be completed ``and made available for service''
instead of ``in actual operation'' within one year of authorization.
See the related discussion of a similar change in section 157.20(b). In
addition, we propose to amend section 157.206(e) to remove an obsolete
reference to pipeline blanket sales and to remove the words ``and
Producer'' from the reference to the ``Office of Pipeline and Producer
Regulation.''
In addition, section 157.206(g) should be removed as obsolete since
the section refers to old PGA accounts and accounting which are no
longer necessary under Subpart F.
As a result of the proposed removal of sections 157.206(b),(c),
(e), and (g), remaining sections 157.206(d),(f), and (g) should be
redesignated as (b)-(d).
Section 157.207 General Reporting Requirements
This section imposes certain reporting requirements on all
interstate pipelines that accept a blanket certificate under Subpart F.
The Commission proposes to revise section 157.207(b), regarding
reporting information related to the construction of sales taps. We
propose to make this change consistent with the previous discussion
removing sales taps
[[Page 55693]]
from the definitions under Subpart F and replacing them with delivery
taps.34
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\34\ See discussion of Sec. 157.202(b)(2)(E) and (b)(10).
---------------------------------------------------------------------------
Storage is now considered transportation under Order No. 636 and
covered under the blanket transportation certificate issued in section
284.221. As discussed below, the Commission is proposing to remove the
blanket authorization for storage services currently set forth in
section 157.213. Reports on storage operations by interstate pipelines
are included under the Part 284 reporting requirements. Because storage
will no longer be covered under Subpart F, section 157.207(c) is
obsolete. However, because we are adding new section 157.209 Temporary
compression facilities, we propose to amend section 157.207(c) to
include a report on such facilities.
We propose to remove section 157.207(f) related to reports filed
for changes in rates schedules authorized under section 157.217, since
we are also proposing to remove section 157.217. Rate schedules are
offered under Part 284 and no longer need to be referenced in Subpart
F.
Section 157.208--Construction, Acquisition, Operation, and
Miscellaneous Rearrangement of Facilities
This section details the criteria necessary to construct, acquire,
and operate any eligible facility and make miscellaneous rearrangement
of any facility. Currently, this section authorizes a blanket
certificate holder to perform certain activities on both an automatic
and prior notice basis.
Consistent with our proposed change to the definition of an
eligible facility in section 157.202(b)(i), we clarify that sections
157.208 (a) and (b) will now include certain replacement facilities
that do not qualify under section 2.55(b), e.g., replacements made in
conjunction with highway relocations where the replaced facilities are
not identical to the original. These facilities will also include
mainline replacements of different sizes that are necessary to match
other line sizes for continuity and/or pigging and could result in
increases in mainline capacity. Therefore, we intend to add the word
``replacement'' in the title of section 157.208. We note that
facilities eligible for automatic and prior notice authorization in
this manner will still be subject to the cost limitations in section
157.208 and the environmental conditions in redesignated section
157.206(b).
Section 157.208(c)(6) requires the certificate holder to provide
gas supply, market data or studies that support the need for proposed
facilities. This provision was required at a time when pipeline sales
were provided under individual NGA section 7 transactions or under the
Subpart F blanket certificate. Since pipelines no longer make bundled
sales after implementation of open access transportation under Order
Nos. 436 and 636, the construction of facilities under Subpart F
support transportation services, not sales, authorized under Part 284.
Thus, requiring gas supply or market data under Subpart F is no longer
meaningful and we propose to remove section 157.208(c)(6).
Section 157.208(c)(8) requires a statement showing the effect of
the facilities to be constructed on the certificate holder's operating
expenses and revenues. As reasoned above, since prior notice
construction activities support already authorized Part 284
transportation services, this section is no longer meaningful and
should be removed.
The existing section 157.208(c)(11), which will be redesignated as
section 157.208(c)(9), sets forth the content of the environmental
filing for construction under the blanket certificate. The Commission
proposes to amend this section to add the specification that a copy of
consultations for the Endangered Species Act, the National Historic
Preservation Act, and the Coastal Zone Management Act be included in
any prior notice filing made under this section. While this will
increase the amount of paper filed, it will ensure proper compliance
with the existing regulation and speed up review since currently this
material is often the subject of data requests and sometimes protests.
Section 157.208(d) sets the spending limits and inflation
adjustment for automatic and prior notice activities under section
157.208. The spending limits in this section are currently adjusted
each calendar year to reflect the Gross National Product (GNP) implicit
price deflator published by the Department of Commerce for the previous
calendar year. For the past few years, we have based the inflation
adjustments on the Gross Domestic Product (GDP) implicit price deflator
rather than the GNP implicit price deflator, which was not published at
the time we issued the orders adjusting the spending limits. We used
the GDP instead of the GNP because the Commerce Department advised that
in recent years the annual change has been virtually the same for both
indices. Therefore, we propose to amend section 157.208(d) to remove
the reference to the ``GNP implicit price deflator'' and add, in its
place, a reference to the ``GDP implicit price deflator.'' We also
propose to amend this section to remove the words ``and Producer'' from
the reference to the ``Office of Pipeline and Producer Regulation and
to correct an erroneous reference from ``section 375.307(t)'' to
``section 375.307(d)''.
Section 157.208(e) details the annual reporting requirements for
facilities completed under this section. The Commission proposes to
revise this section to require complete reports only for facilities
constructed under the automatic authority conferred by section
157.208(a). This change will recognize that the annual report will no
longer include any information, except cost information, for
construction prior notices authorized in section 157.208(b), because
the required environmental information is already filed with the prior
notice application. The effect will be to eliminate a duplicate filing.
The Commission also proposes in section 157.208(e)(2) that the
annual report indicate the date when construction began. This is
critical since the Commission's compliance with the Endangered Species
Act and National Historic Preservation Act depends on the required
consultations occurring before construction begins. It is not common,
but we have received a few reports indicating that this occurred after
the fact. Requiring the date of construction to be provided may raise
the industry's awareness of this important compliance issue.
Currently, sections 157.208(e)(4)-(7) require pipelines to provide
gas supply information and the names of the independent producers or
other sellers from whom the gas is being received, along with gas sales
or transportation contract information and FERC rate schedule
designations. These sections were germane when pipelines primarily
performed a merchant function and tracking of gas purchase costs was
required. The information required here is no longer needed and we
propose to remove these sections. These proposed changes will require
redesignating section 157.208(e) so that existing sections (e)(8) and
(e)(9) become (e)(4) and (e)(5), respectively.
In addition, section 157.208(g) should be amended to remove the
words ``and Producer'' from the reference to the ``Office of Pipeline
and Producer Regulation.''
[[Page 55694]]
Section 157.209--Temporary Compression Facilities
This new section is discussed in detail in our discussion of
section 157.202(b) above.
Section 157.210--Sales for Resale
This section was promulgated to authorize interstate pipelines to
make off-system sales to other interstate pipelines. This section is
now obsolete and should be removed from the regulations.
Section 157.211--Sales Taps
This section provides for pipelines to construct and operate sales
taps for delivery of gas to right-of-way grantors and end-users served
by a pipeline's system supply. See the detailed discussion of section
157.202(b)(2)(ii)(E) and section 157.202(b)(10), where we propose to
replace ``Sales tap(s)'' with ``Delivery points'' and redefine section
157.211 as Delivery points.
Section 157.212--Changes in Delivery Points
The Commission proposes to remove this section as detailed in our
discussion of section 157.202(b)(2)(ii)(E) and section 157.202(b)(10).
Section 157.213--Storage Services
This section provides blanket certificate authorization for
contract storage service and related incidental transportation.
However, Order No. 636 redefined storage as transportation under
section 284.1. The blanket transportation certificate issued in section
284.221 now covers pipeline storage service as well. In the same manner
that blanket pipeline sales are proposed to be removed from subpart F,
section 157.213 should also be removed as obsolete. The current
reporting requirements in section 284.106, which covers transactions
under section 284.221, will provide the Commission with the information
necessary to continue to monitor pipelines performing storage service.
This proposed revision will grandfather all existing pipeline
Subpart F blanket storage services and will only serve to remove the
regulations prospectively.
Section 157.215--Underground Storage Testing and Development
This section provides for automatic authorization, subject to
certain conditions, for the construction and operation of pipeline and
compression facilities to be used for the testing and development of
underground reservoirs for the possible storage of gas.
Consistent with the discussion of the modification of section
157.208(e)(2), the Commission is proposing to require the certificate
holder to identify the date construction began in revised section
157.215(b)(1)(iii).
Section 157.216--Abandonment
This section sets forth the requirements for automatic abandonment
of gas supply facilities in section 157.216(a), as well as the prior
notice requirements necessary to abandon sales taps, laterals and
related facilities and service in section 157.216(b). The Commission
proposes to remove the existing sections 157.216(a)(1) and (a)(2),
which requires abandonment by the gas supplier, as obsolete. While
pipelines may still need to construct and abandon gas supply facilities
under their Subpart F blanket certificate, they no longer need any
related supplier abandonment as a prerequisite.\35\ Therefore, sections
157.216(a)(1) and (a)(2) will be removed.
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\35\ These sections authorize abandonment of gas supply
facilities and service if the seller has been authorized to abandon
the sale, or the sale has ceased and been removed from the
Commission's jurisdiction by operation of section 601(a)(1) of the
NGPA, respectively. After the Decontrol Act deregulated all first
sales of natural gas as of January 1, 1993, the Commission issued
Order No. 567. Order No. 567, among other things, recognized that
first sales have been decontrolled and removed section 157.30, which
governed the abandonment of sales by independent producers and first
sellers, from the regulations. Thus, producers are no longer
required to make certificate or abandonment filings related to their
sales of natural gas.
---------------------------------------------------------------------------
The Commission proposes a new section 157.216(a)(1) to specifically
reference that receipt point facilities are eligible for automatic
abandonment authorization under the subpart F blanket certificate. The
Commission is proposing this clarification in order to eliminate any
ambiguity regarding the eligibility of transportation receipt points
for abandonment under the blanket certificate procedures.
The Commission proposes to expand the automatic authority under
section 157.216 to allow abandonment of firm and interruptible delivery
points. The Commission proposes that interruptible delivery points that
have not been used for transportation service during the prior year be
eligible for automatic abandonment. However, the Commission does not
propose to permit blanket certificate holders to abandon automatically
firm delivery points under contracts that are in force and effect.
Parties paying demand charges for primary points, whether in use or
not, should retain the availability of those points. The Commission
recognizes that there are other circumstances where abandonment of
delivery points may be appropriate. Therefore, it proposes that firm
delivery points no longer under contract and not in use during the
preceding 12 months qualify for automatic abandonment. In order for a
blanket certificate holder to abandon either interruptible delivery
points or firm delivery points not under contract that have been in use
during the prior year, it must proceed under the prior notice
requirements set forth below.
In addition, the Commission proposes to allow automatic
authorization for abandonment of any eligible facility, subject to the
pipeline's receiving written customer consent for specific facility
abandonments. Consent is required from customers that have received
service during the immediate past 12 month period. The Commission
proposes the consent feature as a customer protection against
unwarranted abandonment of facilities constructed to serve particular
customers.
In the past, the Commission has often found it difficult to review
filings to abandon facilities under this section expeditiously, since
there is currently no explicit requirement to describe the facilities
to be abandoned, how they would be abandoned or where they are located.
Therefore, the Commission proposes to include such a requirement at new
section 157.216(c)(5).
The Commission also proposes to amend the reporting requirement
related to abandonments in section 157.216(d)(2) to remove reference to
``the sale of gas and'' as outdated.
At section 157.216(d)(4) and new section 157.216(d)(5) the
Commission proposes to require that pipelines supply: (1) The date
earth disturbance related to an abandonment began, and (2) the date
clearances were actually received under the Endangered Species Act, the
National Historic Preservation Act, and the Coastal Zone Management
Act. This is for the same reasons, i.e., work processing improvement,
discussed with respect to section 157.208(e).
Section 157.217--Changes in Rate Schedules
The Commission proposes to remove this section, which provides
pipelines with automatic authority to permit customers to change rate
schedules. Rate schedules are offered under Part 284 and may no longer
need to be referenced in Subpart F. However, the Commission recognizes
that there could be existing customers with NGA section 7(c)
individually certificated services that may, in the future, seek to use
this authority. Therefore, the Commission
[[Page 55695]]
seeks comment on our proposal to remove this section.
Section 157.218--Changes in Customer Name
The Commission proposes to revise this section. Under Part 284
there is automatic authorization for name changes, subject to the
filing of an updated Index of Customers. Therefore, any remaining need
for this provision is limited to name changes related to individually
certificated agreements.
Appendix I to Subpart F--Procedures for Compliance With the Endangered
Species Act of 1973 Under Section 157.206(d)(3)(i)
This appendix sets forth procedures that apply to blanket
certificate holders that undertake projects subject to the
environmental compliance requirements of current section 157.206(d).
The Commission proposes to revise the appendix to reflect that the U.S.
Fish and Wildlife Service (FWS) need only determine either (1) the
project will not affect the listed species or critical habitat; (2) the
project is not likely to aversely affect a listed species or critical
habitat; or (3) no further consultation is needed. This change should
remove any ambiguity regarding whether the current regulations require
specific wording in the concurrence. In addition, this section also
needs to be revised to make minor changes to correct typographical
errors. The Commission proposes to change the reference in the title to
``section 157.206(d)(3)(i)'' to read ``section 157.206(b)(3)(i)'' and
to change all references to ``section 157.206(d)(2)(vii)'' to read
``section 157.206(b)(2)(vi).'' These references are in the introduction
and paragraphs 2, 3, and 4(b).
Appendix II to Subpart F--Procedures for Compliance With the National
Historic Preservation Act of 1966 Under Sec. 157.206(d)(3)(ii)
This appendix also sets forth procedures that apply to blanket
certificate holders that undertake projects subject to the
environmental compliance requirements of section 157.206(d). This
section also needs to be amended to make minor changes to correct
typographical errors in the appendix. The Commission proposes to change
the reference in the title to ``section 157.206(d)(3)(ii)'' to read
``section 157.206(b)(3)(ii)'' and to change all references to ``section
157.206(d)(2)(iv)'' to read ``section 157.206(b)(2)(iii).'' In
addition, this section should also be amended to remove an outdated
reference to ``Environmental Evaluation Branch, Office of Pipeline and
Producer Regulation'' and to add, in its place, ``environmental staff
of the Office of Pipeline Regulation.'' These references are in the
introduction and in paragraphs (4), (6), (7), and (8).
D. Part 284--Certain Sales and Transportation of Natural Gas Under the
Natural Gas Policy Act of 1978 and Related Authority
Part 284 sets forth the general provisions and conditions that
govern certain sales and transportation of natural gas under the NGA
and the NGPA.
Section 284.221--General rule; Transportation by Interstate Pipelines
on Behalf of Others
This section sets forth the requirements for an interstate pipeline
to apply for a blanket transportation certificate. The Commission
proposes to amend this section in order to remove various outdated or
erroneous language.
Section 284.221(d)(1)describes the limitations of the pregranted
abandonment authority. The Commission proposes to amend this section to
remove the reference to paragraph (d)(3). This change will reflect the
removal of section 284.221(d)(3) from the regulations as explained
below.
Section 284.221(d)(3) states that pregranted abandonment does not
apply where shippers converted from sales service to firm
transportation service under the provisions of section 284.10 or under
a separate agreement. The Commission proposes to remove this section as
obsolete. Section 284.221(d)(3) was necessary during the industry
transition from bundled to unbundled services, as is evidenced by its
dependence on the conversion rights originally contained in section
284.10. Section 284.10 provided an interim program for bundled sales
customers to convert to firm transportation services. However, Order
No. 636 has unbundled sales service, so that sales and transportation
are now separate services and there is no further need for customers to
convert from one to the other. In Order No. 581 36, the
Commission removed and reserved section 284.10. Therefore, there is no
continuing need for section 284.221(d)(3) and it should be removed.
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\36\ Revisions to Uniform System of Accounts, Forms, Statements,
and Reporting Requirements for Natural Gas Companies, Order No. 581,
60 FR 53019 (October 11, 1995), FERC Stats. and Regs. ] 31,026
(September 28, 1995).
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The Commission proposes to revise section 284.221(f)(4). The
section refers to sales taps being subject to the prior notice
procedures in Subpart F. However, new section 157.211 relates to
delivery points (which have been redefined to include sales taps) and
confers both automatic authorization and authorization under the prior
notice procedures of section 157.205.
The Commission also proposes to amend section 284.221(h)(3) to
remove the reference to ``section 157.212'' as obsolete. As noted
above, delivery points are proposed to be constructed and operated
under new section 157.211, on both an automatic basis and subject to
the prior notice procedures.
Section 284.288--Reporting Requirements
This section sets forth the annual reporting requirements for an
interstate pipeline making sales under this subpart. Blanket sales
certificates were issued to interstate pipelines in Order No. 636.
There, the Commission required pipelines to file an annual report
describing the type of service provided, the total volumes sold and the
total revenues received. The Commission stated that such information
would provide an indication of how the market is functioning and
whether a pipeline has been able to exercise market power.
The industry has completed its transition to a fully unbundled
environment and pipelines are authorized to charge market-based rates
for their sales in order to compete directly with third-party sellers
of natural gas. In view of this, the Commission seeks comment on
whether the information required by this section is still necessary or
whether it has become obsolete, leading to removal of the section from
the regulations.
E. Part 375--The Commission
Part 375 sets forth the general provisions of the Commission, the
procedures for Sunshine Act meetings and delegations of authority. We
propose the following revisions to the subpart C delegation of
authority regulations.
Section 375.307 Delegations to the Director of the Office of Pipeline
Regulation.
This section details the authorities delegated from the Commission
to the Director of OPR. Sections 375.307(a)(1) and (a)(5) delegate to
the Director of OPR the authority to grant applications or amendments
for the construction, acquisition and operation of certain facilities
that have a construction or acquisition cost of less than $5,000,000.
The Commission proposes to increase this spending limit to match the
prior
[[Page 55696]]
notice limits set forth in section 157.208(d) Limits and inflation
adjustment. The Commission believes that adjusting the spending limit
in this section will provide more flexibility and a faster regulatory
track to pipelines that want to construct facilities that are not
``eligible'' for prior notice treatment, i.e., mainlines, but are the
subject of applications not formally protested, and whose costs exceed
the $5,000,000 limit in this section. Pipelines should not, however,
break projects into segments for the purpose of meeting the above-
stated spending limit.
Section 375.307(a)(2) delegates to the Director of OPR the
authority to grant applications filed under sections 157.7(b), (c),
(d), (e), and (g) of this chapter. These sections originally set out
rules for budget-type certificates for gas supply facilities,
miscellaneous rearrangement of facilities, storage facilities, direct
sales service and facilities and field compression and facilities. In
Order No. 542,37 the Commission determined that the
transactions covered by these sections were covered under subpart F of
Part 157 of the regulations and removed sections 157.7(b)-(g) as
unnecessary. Since these sections have been removed from the
regulations, there is no need to retain section 375.307(a)(2).
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\37\ Deletion of Certain Outdated or Nonessential Regulations
Pertaining to the Commission's Jurisdiction over Natural Gas, Order
No. 542, 57 FR 21891 (May 26, 1992) FERC Stats. and Regs.
para.30,945 (May 1, 1992).
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Section 375.307(a)(3) delegates abandonment authority to the
Director of OPR for gas purchase facilities with a construction cost of
less than $1 million or the deletion of delivery points. This authority
is conditioned upon the producer's having been authorized to abandon
its related service or the gas having been removed from the
Commission's jurisdiction by operation of section 601(a)(1)(A) of the
NGPA. The Decontrol Act deregulated all first sales of natural gas as
of January 1, 1993 and Order No. 567 eliminated the regulations
pertaining to producer sales and abandonment requirements. Therefore,
this condition is obsolete and will be removed. While pipelines will
still need authority to abandon gas purchase facilities and delete
delivery points, we propose to expand this section to include
abandonment of any facility. The Commission proposes to revise this
section to allow the Director of OPR to act on uncontested applications
for the abandonment of any pipeline facilities, including mainline and
compression facilities, regardless of their construction cost. However,
this section does not, as described in section 375.307(a)(4) below,
cover facilities involving specific customers.
Similarly, section 375.307(a)(4) delegates to the Director of OPR
abandonment authority for pipeline or producer facilities or services.
Since the Commission no longer regulates producer activities, this
section should be amended to remove the reference ``or producer.''
Section 375.307(a)(5) authorizes the Director of OPR to issue
temporary or permanent certificates for transportation, exchange or
storage service, provided the related facilities cost less than
$5,000,000. For the same reasons detailed above, we propose to increase
this spending limit to match the prior notice limits set forth in
section 157.208(d) Limits and inflation adjustment. Under section
375.307(a)(8), the Director of OPR can issue temporary or permanent
certificates to independent producers. Since Order No. 567 removed the
regulations pertaining to producer filings, this section should also be
removed as obsolete.
Section 375.307(a)(9) provides that the Director of OPR can
authorize adding or changing delivery points or changing volumes
between existing delivery points under NGA section 7(c), provided that
the pipeline ``sales'' volumes remain within total existing contract
demand and certificated levels. We propose to remove this section as
obsolete. Since unbundling under Order No. 636, we no longer need to
monitor changes in delivery points for sales volumes, because pipelines
transport gas to customers' delivery points. Changes in delivery points
for transportation volumes are now covered under section 157.211.
We propose new section 375.307(a)(10) to delegate to the Director
of OPR the authority to dismiss protests to prior notice filings that
the Director determines do not raise a substantive issue and fail to
provide any specific detailed reason or rationale for the objection. We
propose to amend section 157.205(g) to add that such protests may be
dismissed.
Section 375.307(a)(17) delegates to the Director of OPR authority
to act on certificates and related rate schedules of independent
producers. Since Order No. 567 eliminated the regulations pertaining to
producers, the Commission proposes to remove this section as obsolete.
Section 375.307(a)(18) authorizes the Director of OPR to act on
offers of settlement in the Independent Oil and Gas Association of West
Virginia proceedings in Docket Nos. RI74-188 and RI75-21 involving
indefinite price escalator clauses (also referred to as area rate
clauses).38 On December 10, 1996, the Presiding
Administrative Law Judge issued an Initial Decision Terminating
Proceedings in the above dockets.39 The initial decision
found that all pipeline parties have settled or otherwise satisfied all
claims asserted against them in these proceeding and that no issues
remained. On January 21, 1997, the Commission issued a Notice of
Finality of Initial Decision allowing the December 16, 1996 initial
decision to become a final Commission decision.40 Therefore,
the Commission proposes to remove this section. With the deletion of
sections 375.307(a)(2), (8), (9), (17) and (18), the remaining
paragraphs are redesignated as (a)(2) through (a)(13).
---------------------------------------------------------------------------
\38\ See Opinion No. 77, 10 FERC para. 61,214 (1980).
\39\ Independent Oil & Gas Association of West Virginia, 77 FERC
para. 63,020 (1996).
\40\ Independent Oil & Gas Association of West Virginia, 78 FERC
para. 61,052 (1997).
---------------------------------------------------------------------------
Section 375.307(b) authorizes the Director of OPR to act upon a
variety of filings related to rate schedules filed by natural gas
companies. Section 375.307(b)(4) allows the Director of OPR to accept
rate filings of jurisdictional natural gas companies which involve
replacement and rollover contracts. Section 375.307(b)(5) allows the
Director of OPR to accept statements of eligibility by producers filed
under section 2.56 41 and section 157.40. As noted above,
following issuance of the Decontrol Act, Order No. 567 eliminated the
regulations pertaining to producers. Therefore, the Commission proposes
to remove sections 375.307(b)(4) and (b)(5) as obsolete.
---------------------------------------------------------------------------
\41\ Section 2.56 was a policy statement concerning area rates
for natural gas sales by independent producers. This section was
removed from the regulations by Order No. 542 as obsolete because
the NGPA superseded area rates.
---------------------------------------------------------------------------
Section 375.307(c) authorizes the Director of OPR to take certain
actions under the NGPA, including computing maximum lawful prices under
section 375.307(c)(1), notifying jurisdictional agencies under section
375.307(c)(2), and passing on uncontested requests for extensions of
time to file reports under section 284.148(c) under section
375.307(c)(3). These sections are now obsolete and the Commission
proposes to remove all of section 375.307(c). Sections 375.307(c)(1)
and (c)(2) are outdated because the Wellhead Decontrol Act deregulated
all first sales of natural gas as of January 1, 1993 and Order No. 567
eliminated the regulations pertaining to the sales of natural gas
production. Section 375.307(c)(3) is no longer germane since it is
linked to reports filed under section
[[Page 55697]]
284.148(c), which has been removed by Order No. 581.42
---------------------------------------------------------------------------
\42\ Revisions to Uniform Systems of Accounts, Forms,
Statements, and Reporting Requirements for natural gas Companies,
Order No. 881 (Oct. 11, 1995).
---------------------------------------------------------------------------
Section 375.307(e)(3) authorizes the Director of OPR to initiate an
annual survey of winter gas supply. The Commission no longer requires
the submission of detailed gas supply information in support of new
construction projects. Pipelines proposing new construction are
currently required only to describe the production areas accessible
that contain existing or potential supplies for the proposed
project.43 In Order No. 554,44 the Commission
revised its regulations to remove the requirement that natural gas
pipeline companies file FERC Form No. 15, ``Interstate Pipeline's
Annual Report of Gas Supply,'' and FERC Form No. 16, ``Report of Gas
Supply and Requirements.'' The Commission found that the information in
those reports was no longer necessary since the interstate pipelines
have evolved from performing primarily as merchants of natural gas to
providing primarily transportation services to non-pipeline shippers.
For the same reason, the Commission is proposing to remove section
375.307(e)(3).
---------------------------------------------------------------------------
\43\ See section 157.14(a)(10), Exhibit H--Total gas supply
data.
\44\ Revisions to the Regulations Governing Natural Gas
Pipelines, Order No. 554, 58 FR 38524 (July 19, 1993), FERC Stats.
and Regs. para. 30,973 (July 13, 1993).
---------------------------------------------------------------------------
Section 375.307(e)(7) authorizes the Director of OPR to grant any
producer's uncontested application for abandonment. Since Order No. 567
removed the regulations pertaining to producers, the Commission
proposes to remove this section as obsolete.
The existing section 375.307(f)(3), which will be redesignated as
section 375.307(e)(3), will delegate to the Director of OPR the
authority to waive fees prescribed in various sections of the
regulations. The Commission proposes to remove the reference in
redesignated section 375.307(e)(3) to section 381.402 as outdated.
Since we propose to remove section 375.307(c), remaining sections
375.307(d)-(g) should be redesignated section 375.307(c)-(f).
F. Part 380--Regulations Implementing the National Environmental Policy
Act
The regulations in Part 380 implement the Commission's procedures
under the NEPA. These regulations supplement the regulations of the
Council on Environmental Quality (CEQ), 40 CFR Parts 1500 through 1508
(1986). Part 380 essentially follows the CEQ procedures concerning
early and efficient review of environmental issues, public notice and
participation, scooping, interagency cooperation, comments, and timing
of decisions on proposals.
Section 380.4--Projects or Actions Categorically Excluded.
As a procedural matter, the Commission proposes to amend section
380.4(a)(28) to the correct a typographical error by replacing the word
``tops'' with ``taps''.
Section 380.12--Environmental Reports for Natural Gas Act Applications.
The Commission proposes to replace Part 380 Appendix A (guidelines
for the environmental report), which is out of date and contains
numerous errors, with the currently optional Appendix G resource
reports in the electronic filing requirements, which virtually all
companies are now using instead of Appendix A. These resource reports
would be in new section 380.12. In section 380.12 the Commission
proposes to list, in detail, the information it needs to conduct an
environmental review of a proposal under NEPA. Applications not meeting
a minimum specified portion of these requirements will be rejected. It
is very inefficient for the Commission's staff to try to process
filings with minimal data for analysis while the applicant files the
necessary information in a piecemeal fashion. Moreover, accepting
incomplete applications fosters unreasonable expectations by the
applicant, i.e., filling in the blanks as time progresses, and
expecting staff to be able to complete its analysis as if the
application had been complete from the beginning.
In addition, it causes undue concern to landowners and other
opponents. This is also a practice that the industry is not allowed to
follow at other agencies. Acceptance of such incomplete filings can
cause affected parties and staff to prematurely expend significant
effort which may ultimately be unnecessary or duplicative once the
project is more fully developed. Nor does filing prematurely confer any
real competitive advantage on the applicant. Any perceived advantage of
filing early is nullified by our practice of not noticing incomplete
applications. The applicant with a complete filing can expect expedited
processing with minimal delays due to data requests.
The information listed in proposed section 380.12 would not only
provide better guidance to the regulated industry on what the
Commission needs for its environmental analysis, but when the
information should be provided. Both of these factors have a strong
impact on the staff's ability to quickly process applications in a way
that protects the environment and ensures the procedural requirements
of NEPA are met.
Some of these changes include:
Adding a new Resource Report 13 on Liquified Natural Gas (LNG)
engineering filing requirements.
Adding a requirement to compare the proposal to the
staff's current ``Upland Erosion Control, Revegetation, and
Maintenance Plan'' and ``Wetland and Waterbody Construction and
Mitigation Procedures.''
Specifying that supplemental or amendment filings which
include changes in facility locations provide tables showing exactly
how the substitution of those locations for the ones originally
proposed affects the environmental factors relevant to the locations
on file prior to the amendment.
Additionally, proposed section 380.12(c)(2) lists the information
the Commission needs to consider the environmental impact of related
nonjurisdictional facilities that would be constructed upstream or
downstream of the jurisdictional facilities for the purpose of
delivering, receiving, or using the proposed gas volumes. Integrally-
related nonjurisdictional facilities could include major power
facilities, such as cogeneration plants, as well as less significant
facilities, such as lateral pipeline connections built by local
distribution companies. The extent of the Commission's analyses of
nonjurisdictional facilities depends on the Commission's determination
of its and other Federal agencies' control and responsibility over
these facilities.
Section 380.13--Compliance With the Endangered Species Act
This section makes it clear how the Commission expects applicants
to assist the Commission in complying with its responsibilities under
the Endangered Species Act. It is similar to the current process under
the blanket certificate program of Subpart F of Part 157 of this
chapter and is fashioned to parallel the regulations implementing the
Endangered Species Act. This process is to be used when the applicant
is preparing the environmental documents required by section
380.12(e)(5).
Section 380.14--Compliance With the National Historic Preservation Act
This section identifies applicants as non-Federal parties and
specifies principles that natural gas companies are expected to follow
in assisting the Commission in complying with its responsibilities
under the National Historic Preservation Act. These
[[Page 55698]]
principles are to be used when the applicant is preparing the
environmental documents required by section 380.12(f).
Section 380.15--Siting and Maintenance Requirements
The Commission also proposes that the facility siting guidelines
currently at section 2.69 would be redesignated as new section 380.15.
This would put them with the rest of the environmental regulations.
Appendix A to Part 380--Minimum Filing Requirements for Environmental
Reports Under the Natural Gas Act
The Commission proposes to replace the old Part 380 Appendix A with
a checklist of minimum environmental filing requirements. The checklist
in the proposed new Appendix A represents the minimum filing
requirement an applicant would need to provide the Commission at the
time the application is filed. Failure to provide these minimum
requirements would result in the application's being rejected.
G. Part 385--Rules of Practice and Procedure
Part 385 sets forth the Commission's Rules of Practice and
Procedure. The Commission is proposing to revise certain of the
regulations under Subpart T relating to the rejection of filings and to
electronic filing of applications.
Section 385.2001--Filings (Rule 2001)
Consistent with our proposal to reject patently deficient filings
under section 157.8 and section 157.205(d), the Commission proposes to
modify section 385.2001(b)(3), dealing with rejection of filings, to
provide for a letter of rejection indicating the reasons for rejection.
V. Regulatory Flexibility Act Certification
The Regulatory Flexibility Act (RFA) requires agencies to prepare
certain statements, descriptions, and analyses of proposed rules that
will have a significant impact on a substantial number of small
entities.45 The Commission is not required to make such
analysis if a rule would not have such an effect.
---------------------------------------------------------------------------
\45\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
The Commission does not believe that this rule would have such an
impact on small entities. Most filing companies regulated by the
Commission do not fall within the RFA's definition of small
entity.46 Further, the filing requirements of small entities
are reduced by the rule. Therefore, the Commission certifies that this
rule will not have a significant economic impact on a substantial
number of small entities.
---------------------------------------------------------------------------
\46\ 5 U.S.C. 601(3), citing to section 3 of the Small Business
Act, 15 U.S.C. 632. Section 3 of the Small Business Act defines a
``small-business concern'' as a business which is independently
owned and operated and which is not dominant in its field of
operation.
---------------------------------------------------------------------------
VI. Environmental Statement
The Commission excludes certain actions not having a significant
effect on the human environment from the requirement to prepare an
environmental assessment or an environmental impact
statement.47 No environmental consideration is raised by the
promulgation of a rule that is procedural or that does not
substantially change the effect of legislation or regulations being
amended.48 The instant rule updates the various regulations
and does not substantially change the effect of the underlying
legislation or the regulations being revised or eliminated.
---------------------------------------------------------------------------
\47\ 18 CFR 380.4.
\48\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------
The primary effect of this rule is procedural or changes some of
the filing requirements placed on applicants. It also clarifies some of
the existing regulations (Sec. 2.55) without changing their effect.
These clarifications and changes to filing requirements have no
potential for environmental effect. Whether the Commission approves or
denies the application is the Federal action that can be said to have
an environmental effect.
There are only minor changes to what a project sponsor may
construct under the blanket certificate program with little or no
Commission review. Eligible facilities now include mainline and lateral
replacements and wells in a certificated storage field. However, there
is no difference, from an environmental standpoint, between the
pipeline that could be built under the previous regulations and these
proposed regulations. In addition, wells may already be drilled under
the blanket program for testing and development of fields for storage
of natural gas (Sec. 157.215). The change proposed herein does not
allow drilling of wells for the purpose of increasing the capacity of
the storage field, only for enhanced operational efficiency. An
Environmental Assessment was done for the blanket program in July of
1981. For these reasons, no environmental analysis is necessary.
VII. Public Comment Procedures
The Commission invites all interested persons to submit written
comments on this NOPR.
The original and 14 copies of such comments must be received by the
Commission before 5:00 p.m. December 1, 1998. Comments should be
submitted to the Office of the Secretary, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington DC 20426 and should refer
to Docket No. RM98-9-000. Commenters also can submit comments on
computer diskette in WordPerfect 6.1 or lower format or in ASCII
format, with the name of the filer and Docket No. RM98-9-000 on the
outside of the diskette.
All comments will be placed in the Commission's public files and
will be available for inspection in the Commission's Public Reference
room at 888 First Street, NE., Washington, DC 20426, during regular
business hours. Additionally, comments can be viewed and printed
remotely via the Internet through FERC's Homepage 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.
List of Subjects
18 CFR Part 2
Administrative practice and procedure, Electric power, Natural gas,
Pipelines, Reporting and recordkeeping requirements.
18 CFR Part 153
Exports, Imports, Natural gas, Reporting and recordkeeping
requirements.
18 CFR Part 157
Administrative practice and procedure, Natural gas, Reporting and
recordkeeping requirements.
18 CFR Part 284
Continental shelf, Incorporating by Reference, Natural gas,
Reporting and recordkeeping requirements.
18 CFR Part 375
Authority delegations (Government agencies), Seals and insignia,
Sunshine Act.
18 CFR Part 380
Environmental impact statements, Reporting and recordkeeping
requirements.
18 CFR Part 385
Administrative practice and procedure, Electric power, Penalties,
Pipelines, Reporting and recordkeeping.
[[Page 55699]]
By direction of the Commission.
David P. Boergers,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
Parts 2, 153, 157, 284, 375, 380, 381 and 385, Chapter I, Title 18,
Code of Federal Regulations, as set forth below.
PART 2--GENERAL POLICY AND INTERPRETATIONS
1. The authority citation for Part 2 continues to read as follows:
Authority: U.S.C. 601; 15 U.S.C. 717-717w, 3301-3432; 16 U.S.C.
792-825y, 2601-2645; 42 U.S.C. 4321-4361, 7101-7352.
Sec. 2.1 [Amended]
2. In Sec. 2.1, paragraph (a)(1)(viii)(A) through (D) are removed
and (a)(1)(viii) introductory text is removed and reserved.
3. In Sec. 2.55, paragraph (a) is amended to add a new sentence at
the end; (b)(1) (ii) and (iii) are revised; and paragraph (d) is
removed and reserved, to read as follows:
Sec. 2.55 Definition of terms used in section 7(c).
* * * * *
(a) * * * Facilities constructed along with new transmission
facilities do not qualify as auxiliary installations for the purposes
of this section.
(b) * * *
(1) * * *
(ii) The replacement facilities will have a substantially
equivalent designed delivery capacity, will be located in the same
right-of-way or on the same site as the facilities being replaced, and,
except as specified in paragraph (b)(1)(iv) of this section will be
constructed using the temporary work space used to construct the
replaced facility (See Appendix A of this part for guidelines on what
is considered to be the appropriate work area in this context);
(iii) Except as described in paragraph (b)(2) of this section, the
company files notification of such activity with the Commission at
least 30 days prior to commencing construction.
* * * * *
(d) [Reserved]
Sec. 2.69 [Removed]
4. Section 2.69 is removed and reserved.
Sec. 2.102 [Removed]
5. Section 2.102 is removed and reserved.
6. Appendix A to Part 2 is added to read as follows:
Appendix A to Part 2--Guidance for Determining the Acceptable
Construction Area for Replacements
1. Pipeline replacement must be within the existing right-of-way as
specified by Sec. 2.55(b)(1)(ii). Construction activities for the
replacement can extend outside the current permanent right-of-way to
the extent that they are constrained by the temporary and permanent
right-of-way and associated work spaces used in the original
installation.
2. If documentation is not available on the location and width of
the temporary and permanent rights-of-way and associated work space
that was used to construct the original facility, the company may use
the following guidance in replacing its facility, providing the
appropriate easements have been obtained:
a. Construction should be limited to no more than a 75-foot-wide
right-of-way including the existing permanent right-of-way for large
diameter pipeline (pipe greater than 12 inches in diameter) to carry
out routine construction. Pipeline 12 inches in diameter and smaller
should use no more than a 50-foot-wide right-of-way.
b. The temporary right-of-way (working side) should be on the
same side that was used in constructing the original pipeline.
c. A reasonable amount of additional temporary work space on
both sides of roads and interstate highways, railroads, and
significant stream crossings and in side-slope areas is allowed. The
size should be dependent upon site-specific conditions. Typical work
spaces are:
------------------------------------------------------------------------
Typical extra area (width/
Item length)
------------------------------------------------------------------------
Two lane road (bored)..................... 25-50 by 100 feet.
Four lane road (bored).................... 50 by 100 feet.
Major river (wet cut)..................... 100 by 200 feet.
Intermediate stream (wet cut)............. 50 by 100 feet.
Single railroad track..................... 25-50 by 100 feet.
------------------------------------------------------------------------
d. The replacement facility must be located within the permanent
right-of-way or, in the case of nonlinear facilities, the cleared
building site. In the case of pipelines this is assumed to be 50-
feet-wide and centered over the pipeline unless otherwise legally
specified.
3. However, use of the these guidelines for work space size is
constrained by the physical evidence in the area. Areas obviously
not cleared during the original construction, as evidenced by stands
of mature trees, structures, or other features that exceed the age
of the facility being replaced, should not be used for construction
of the replacement facility.
4. If these guidelines cannot be met, the company should consult
with the staff to determine if the exemption afforded by Sec. 2.55
of this chapter may be used. Usually, it may not and construction
authorization must be obtained pursuant to another regulation under
the Natural Gas Act.
PART 153--APPLICATIONS FOR AUTHORIZATION TO CONSTRUCT, OPERATE, OR
MODIFY FACILITIES FOR THE EXPORT OR IMPORT NATURAL GAS
7. The authority citation for Part 153 continues to read as
follows:
Authority: 15 U.S.C. 717b, 717o; E.O. 10485, 3 CFR, 1949-1953
Comp., p. 970, as amended by E.O. 12038, 3 CFR, 1978 Comp., p. 136,
DOE Delegation Order No. 0204-112, 49 FR 6684 (February 22, 1984).
8. In Sec. 153.8, paragraph (a)(7) is revised to read as follows:
Sec. 153.8 Required exhibits.
(a) * * *
(7) Exhibit F. An environmental report as specified in
Sec. 380.3 and Sec. 380.12 of this chapter. Applicant must submit
all appropriate revisions to Exhibit F whenever route or site
changes are filed. These revisions should identify the specific
differences resulting from the route or site changes, and not just
provide revised totals for the resources affected; and
* * * * *
9. In Sec. 153.21, paragraph (b) is revised to read as follows:
Sec. 153.21 Conformity with requirements.
* * * * *
(b) Rejection of applications. If an application does not conform
to the requirements of this part, the Director of the Office of
Pipeline Regulation may reject the application within 10 days of filing
as provided by Sec. 385.2001(b) of this chapter. An application that
relates to an operation, service, or construction concerning which a
prior application has been filed and rejected, shall be docketed as a
new application. Such new application shall state the docket number of
the prior rejected application.
PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND
NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER
SECTION 7 OF THE NATURAL GAS ACT
10. The authority citation for Part 157 continues to read as
follows: st
Authority: 15 U.S.C. 717-717W, 3301-3432; 42 U.S.C. 7101-7352.
11. In Sec. 157.6, paragraphs(a)(1)-(4) are revised; a new
paragraph (a)5 is added; the heading in paragraph (b) revised; and a
new paragraph (b)(8) is added to read as follows:
[[Page 55700]]
Sec. 157.6 Applications; general requirements.
(a) Applicable rules--(1) Submission required to be furnished by
applicant under this subpart. Applications, amendments thereto, and all
exhibits and other submissions required to be furnished by an applicant
to the Commission under this subpart must be submitted in an original
and 7 conformed copies. To the extent that data required under this
subpart has been provided to the Commission, this data need not be
duplicated. The applicant must, however, include a statement
identifying the forms and records containing the required information
and when that form or record was submitted.
(2) The following must be submitted in electronic format as
prescribed by the Commission:
(i) Applications;
(ii) Exhibits to applications;
(iii) Applications covering acquisitions and all attached exhibits;
(iv) Applications for temporary certificates;
(v) Applications to abandon facilities or services and attached
exhibits;
(vi) The progress reports required under Sec. 157.20(c) and (d);
(vii) Applications submitted under Subpart E of this part;
(viii) Applications under Subpart F of this part;
(ix) Requests for authorization under the notice procedures
established in Sec. 157.205;
(x) The annual report required by Sec. 157.207;
(xi) The report required under Sec. 157.214 when storage capacity
is increased;
(xii) Amendments to any of the sections listed in paragraph (a)(2).
(3) All filings must be signed in compliance with the following:
(i) The signature on a filing constitutes a certification that: the
signer has read the filing signed and knows the contents of the paper
copies and electronic filing; the paper copies contain the same
information as contained in the electronic filing; the contents as
stated in the copies and in the electronic filing are true to the best
knowledge and belief of the signer; and the signer possesses full power
and authority to sign the filing.
(ii) A filing must be signed by one of the following:
(A) the person on behalf of whom the filing is made;
(B) an officer, agent, or employee of the governmental authority,
agency, or instrumentality on behalf of which the filing is made; or,
(C) a representative qualified to practice before the Commission
under Sec. 385.2101 of this chapter who possesses authority to sign.
(4) Suitable means of electronic transmission or electronic media
suitable for Commission filings are listed in the instructions for each
form and filing. Lists of suitable electronic media are available upon
request from the Commission. The formats for the electronic filing and
paper copy can be obtained at the Federal Energy Regulatory Commission,
Public Information and Reference Branch, 888 First Street, NE.,
Washington, D.C. 20426.
(5) Other requirements. Applications under section 7 of the Natural
Gas Act must conform to the requirements of Secs. 157.5 through 157.14.
Amendments to or withdrawals of applications must conform to the
requirements of Secs. 385.213 and 385.214 of this chapter. If the
application involves an acquisition of facilities, it must conform to
the additional requirements prescribed in Secs. 157.15 and 157.16. If
the application involves an abandonment of facilities or service, it
must conform to the additional requirements prescribed in Sec. 157.18.
(b) General content of application.
* * * * *
(8) For applications to construct new facilities, the complete
information necessary for the Commission to make an upfront
determination on the rate treatment of the proposed project in
accordance with the Statement of Policy in Docket No. PL94-4-000, if
the applicant does not propose to charge incremental rates. The Policy
Statement can be found at 71 FERC (CCH) para. 61,241 (1995) or on the
FERC Homepage at http://www.ferc.fed.us/news1/policy/pages/policy.htm.
Such information should include, but is not limited to the following:
(i) Documentation specifically showing that an expansion project
will increase system or operational reliability, or provide other
financial benefits;
(ii) Detailed cost-of-service data supporting the cost of the
expansion project, a detailed study showing the revenue responsibility
for each firm rate schedule under the pipeline's currently effective
rate design and under the pipeline's proposed rolled-in rate design, a
detailed rate impact analysis by rate schedule (including by zone, if
applicable), and an analysis reflecting the impact of the fuel usage by
zone resulting from the proposed expansion project.
* * * * *
12. Section 157.8 is revised to read as follows:
Sec. 157.8 Acceptance for filing or rejection of applications.
Applications will be docketed when received and the applicant so
advised. If an application does not conform to the requirements of this
part, the Director of the Office of Pipeline Regulation may reject the
application within 10 days of filing as provided by Sec. 385.2001(b) of
this chapter. This rejection is without prejudice to an applicant's
refiling a complete application. However, an application will not be
rejected solely on the basis of environmental reports that are
incomplete because the company has not been granted access by the
affected landowner(s) to perform required surveys, etc. An application
which relates to an operation, sale, service, construction, extension
acquisition, or abandonment concerning which a prior application has
been filed and rejected, shall be docketed as a new application. Such
new application shall state the docket number of the prior rejected
application.
13. In Sec. 157.9, the first sentence is revised to read as
follows:
Sec. 157.9 Notice of application.
Notice of each application filed, except when rejected in
accordance with Sec. 157.8, will be issued within 10 days of filing,
and subsequently will be published in the Federal Register and copies
of such notice mailed to States affected thereby. * * *
14. Section 157.10 is revised to read as follows:
Sec. 157.10 Interventions and protests.
Notices of applications, as provided by Sec. 157.9, will fix the
time within which any person desiring to participate in the proceeding
may file a petition to intervene, and within which any interested
regulatory agency, as provided by Sec. 385.214 of this chapter,
desiring to intervene may file its notice of intervention. Any person
filing a petition to intervene or notice of intervention shall state
specifically whether he seeks formal hearing on the application. Any
person may file to intervene on environmental grounds based on the
draft environmental impact statement as stated at Sec. 380.10(a)(1)(i)
of this chapter. In accordance with that section, such intervention
will be deemed timely as long it is filed within the comment period for
the draft environmental impact statement. Failure to make timely filing
will constitute grounds for denial of participation in the absence of
extraordinary circumstances for good cause shown. A copy of each
application, supplement and
[[Page 55701]]
amendment thereto, including exhibits required by Sec. 157.14, 157.16,
and 157.18, shall upon request be promptly supplied by the applicant to
anyone who has filed a petition for leave to intervene or given notice
of intervention. However, an applicant is not required to serve
voluminous or difficult to reproduce material, such as copies of
environmental information, to all parties, unless such material is
specifically requested. Within two business days of receiving a request
for a complete copy from any party, the applicant must serve a full
copy of any filing. Pipelines will be required to keep all voluminous
material on file with the Commission and make such information
available for inspection in the project area. Protests may be filed in
accordance with Sec. 385.211 of this chapter within the time permitted
by any person who does not seek to participate in the proceeding.
15. In Sec. 157.14, paragraph (a) is amended to remove the words
``On or after October 31, 1989, exhibits'' and the word ``Exhibits''
added in its place; paragraph (a)(6-a) is revised; paragraph (a)(6-b)
is removed; paragraph (a)(6-d) is redesignated as (a)(6-b); both
references in newly redesignated (a)(6-b) to ``IV'' is removed and a
reference to ``II'' is added in its place; paragraph (a)(6-c) is
removed; paragraph (a)(12) is removed and reserved; paragraphs
(a)(14)(i) through (vi) are revised; and paragraphs (a)(14)(vii)
through (xiii) are removed, all to read as follows:
Sec. 157.14 Exhibits.
(a) * * *
(6) * * *
(6-a) Exhibit F-I, Environmental Report. An environmental report as
specified in Secs. 380.3 and 380.12 of this chapter. Applicant must
submit all appropriate revisions to Exhibit F-I whenever route or site
changes are filed. These revisions should identify the locations by
mile post and describe all other specific differences resulting from
the route or site changes, and should not simply provide revised totals
for the resources affected.
* * * * *
(12) [Reserved]
* * * * *
(14) * * *
(i) A description of the class (e.g. commercial paper, long-term
debt, preferred stock) and cost rates for securities expected to be
issued with construction period and post-operational sources of
financing separately identified.
(ii) Statement of anticipated cash flow, including provision during
the period of construction and the first 3 full years of operation of
proposed facilities for interest requirements, dividends, and capital
requirements.
(iii) A balance sheet and income statement (12 months) of most
recent data available.
(iv) Comparative pro forma balance sheets and income statements for
the period of construction and each of the first 3 full years of
operation, giving effect to the proposed construction and proposed
financing of the project.
(v) Any additional data and information upon which applicant
proposes to rely in showing the adequacy and availability of resources
for financing its proposed project.
(vi) In instances for which principal operations of the company
have not commenced or where proposed rates for services are developed
on an incremental basis, a brief statement explaining how the applicant
will determine the actual allowance for funds used during construction
(AFUDC) rate, or if a rate is not to be used, how the applicant will
determine the actual amount of AFUDC to be capitalized as a component
of construction cost, and why the method is appropriate under the
circumstances.
* * * * *
16. In Sec. 157.16, paragraph (c)(1) is revised to read as follows:
Sec. 157.16 Exhibits relating to acquisitions.
* * * * *
(c) * * *
(1) The amounts recorded upon the books of the vendor, as being
applicable to the facilities to be acquired, and the related
depreciation, depletion, and amortization reserves. Include a brief
statement explaining the basis or methods used to derive the related
depreciation, depletion and amortization reserves.
* * * * *
Sec. 157.17 [Amended]
17. In Sec. 157.17, the words ``Before October 31, 1989, and
thereafter whenever'' are removed from paragraph (a) and the word
``Whenever'' added in their place; and the words ``On or after October
31, 1989, the'' are removed from paragraph (b) and the word ``The''
added in their place.
18. In Sec. 157.18, a new sentence is added between the first and
second sentence in the introductory paragraph and in paragraph (f)(2);
paragraph (f)(3) is revised to read as follows:
Sec. 157.18 Applications to abandon facilities or service; exhibits.
* * * Any application for an abandonment that is not excluded by
Sec. 380.4(a)(28) or (29), must include an environmental report as
specified by Sec. 380.3(c)(2). * * *
* * * * *
(f) * * *
(2) * * * Include a brief statement explaining the basis or methods
used to derive the accumulated depreciation related to the property to
be disposed of. * * *
(3) State the amount of accumulated deferred income taxes
attributable to the property to be abandoned and the tax basis of the
property. * * *
* * * * *
19. In Sec. 157.20, paragraph (b) is revised; the phrases ``, until
October 31, 1989,'' and ``, and thereafter,'' are removed from
paragraph (c), the phrases ``, before October 31, 1989,'' and and
thereafter'' are removed from paragraph (d); paragraph (f) is removed
and paragraph (g) is redesignated as (f) to read as follows:
Sec. 157.20 General conditions applicable to certificates.
* * * * *
(b) Any authorized construction, extension, or acquisition shall be
completed and made available for service by applicant and any
authorized operation, service, or sale shall be actually undertaken and
regularly performed by applicant within (period of time to be specified
by the Commission in each order) from the issue date of the
Commission's order issuing the certificate. Applicant shall notify the
Commission in writing at least 30 days prior to (expiration date of
time period specified in the Commission's order issuing the
certificate) that the end-user/shipper is unable to meet the imposed
timetable to commence service.
* * * * *
Sec. 157.21 [Removed]
20. Section 157.21 is removed and reserved.
21. In Sec. 157.102, the last sentence in paragraph (a)(1) is
removed; paragraph (b)(1)(v) is revised to read as follows:
Sec. 157.102 Contents of application and other pleadings.
* * * * *
(b) * * *
(1) * * *
(v) An environmental report as specified in Secs. 380.3 and 380.12
of this chapter. Applicant must submit all appropriate revisions to the
environmental report whenever route or site changes are filed. These
revisions should identify and describe the specific differences
resulting from the route or site changes, and not just
[[Page 55702]]
provide revised totals for the resources affected; and
* * * * *
Sec. 157.103 [Amended]
22. In Sec. 157.103(j), the words ``and Producer'' are removed.
Sec. 157.201 [Amended]
23. In Sec. 157.201(a) the words ``sales arrangements'' are
removed.
24. In Sec. 157.202, paragraphs (b)(2)(i) and (b)(2)(ii)(A), (B),
(D), (E), and (F), and paragraphs (b)(4), (5), (7), (10) are revised;
and (b)(12) through (14) are removed to read as follows:
Sec. 157.202 Definitions.
* * * * *
(b) * * *
(2)(i) Eligible facility means, except as provided in paragraph
(b)(2)(ii) of this section, any facility subject to the Natural Gas Act
jurisdiction of the Commission that is necessary to provide service
within existing certificated volumes. Eligible facility also includes
any gas supply facility or any facility, including receipt points,
needed by the certificate holder to receive gas into its system for
further transport or storage, and interconnecting points between
transporters that transport natural gas under part 284 of this chapter.
Further, eligible facility includes mainline and lateral replacements
that do not qualify under Sec. 2.55(b) of this chapter because they
will have an impact on the capacity of the mainline facilities.
(ii) * * *
(A) A main line of a transmission system, except replacement
facilities covered under paragraph (b)(2)(i) of this section.
(B) An extension of a main line, except replacement facilities
covered under paragraph (b)(2)(i).
* * * * *
(D) A facility required to test, develop or utilize an underground
storage field and that alters the certificated capacity of the storage
field, or a facility required to store gas above ground in either a
gaseous or liquified state, or a facility used to receive gas from
plants manufacturing synthetic gas or from plants gasifying liquefied
natural gas.
(E) Delivery points under Sec. 157.211.
(F) Temporary compression under Sec. 157.209.
* * * * *
(4) Temporary compression means compressor facilities installed and
operated at existing compressor locations for the limited purpose of
temporarily replacing existing permanent compressor facilities that are
undergoing maintenance or repair or that are pending permanent
replacement.
(5) Main line means the principal transmission facilities of a
pipeline system extending from supply areas to market areas and does
not include small diameter supply or delivery laterals or gathering
lines.
* * * * *
(7) Project means a unit of improvement or construction that is
used and useful upon completion.
* * * * *
(10) Delivery point(s) means a tap and/or metering and appurtenant
facilities necessary to enable the certificate holder to deliver gas to
any customer.
* * * * *
Sec. 157.203 [Amended]
25. In Sec. 157.203, paragraph (b) is amended to remove the
references to ``157.213(a)'' and ``157.217'' and to add the reference
``157.209(a)'' immediately after ``Secs. 157.208(a)''. Paragraph (c) is
amended to remove the reference to ``157.211, 157.211(b), 157.212,
157.213(b)'' and to add the reference ``157.211(a)(2)'' in their place.
Sec. 157.204 [Amended]
26. In Sec. 157.204, paragraph (d)(2) is removed; paragraph (d)(3)
is redesignated as d(2); and paragraphs (d)(4) and (5) and paragraph
(e) are removed.
27. In Sec. 157.205, paragraphs (a) introductory text and (b)
introductory text are revised; paragraph (c) is removed; paragraphs (d)
through (i) are redesignated as (c) through (h); newly designated (c)
is revised; redesignated (f) the words ``and Producer'' is removed; in
redesignated (d) add the phrase ``issue a notice of the request within
10 days of the date of the filing and'' after the words ``Commission
shall'; redesignated (e)(2) is revised; in redesignated (f) add the
words ``or dismissed'' after the words ``is not withdrawn''; in
redesignated (g) introductory text is revised, the words ``and staff''
are removed, the phrase ``certificate holder, the protestor'' is
revised to read ``certificate holder and protestor'', and a sentence is
added at the end of the paragraph; and in redesignated (h)(2) add the
words ``or dismissed'' after the words ``subsequently withdrawn'' and
the words ``or dismissal'' after the words ``after the withdrawal'' to
read as follows:
Sec. 157.205 Notice Procedure.
(a) Applicability. No activity described in Secs. 157.208(b),
157.211, 157.214 or 157.216(b) is authorized by a blanket certificate
granted under this subpart, unless, prior to undertaking such activity:
* * * * *
(b) Contents. For any activity subject to the requirements of this
section, the certificate holder must file with the Secretary of the
Commission an original and seven copies, as prescribed in Sec. 157.6(a)
and 385.2011 of this chapter, a request for authorization under the
notice procedures of this section that contains:
* * * * *
(c) Rejection of request. The Director of the Office of Pipeline
Regulation may reject within 10 days of the date of filing a request
which patently fails to comply with the provisions of paragraph (b) of
this section, without prejudice to the pipeline's refiling a complete
application.
* * * * *
(e) * * *
(2) Protests shall be filed in the following form:
UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY
COMMISSION
[Name of pipeline holding the blanket certificate]
Docket No. [Include both docket no. of the blanket certificate and the
prior notice transaction]
PROTEST TO PROPOSED BLANKET CERTIFICATE ACTIVITY
(Name of Protestor) hereby protests the request filed by (Name of
pipeline) to conduct a (construction of facilities, abandonment, etc.)
under Sec. 157.____ of the Commission's regulations. Protestor seeks to
have this request processed as a separate application.
(Include a detailed statement of Protestor's interest in the
activity and the specific reasons and rationale for the objection and
whether the protestor seeks to be an intervenor.)
* * * * *
(g) Withdrawal or dismissal of protests. * * * The Director of the
Office of Pipeline Regulation may dismiss any protest which does not
raise a substantive issue and fails to provide any specific detailed
reason or rationale for the objection.
* * * * *
28. In Sec. 157.206, paragraphs (b), (c), (e), and (h) are removed;
paragraph (d) is redesignated as paragraph (b); paragraph (f) is
redesignated as (c); paragraph (g) is redesignated as (d); in
redesignated (b)(1) the reference to ``Sec. 2.69'' is removed and the
reference to ``Sec. 380.15'' is added in its place; in redesignated
(b)(3)(i) through (iii) the
[[Page 55703]]
references to paragraph ``(d)'' are removed and a reference to ``(b)''
is added in its place; redesignated (b)(5) is revised; and redesignated
paragraph (c) is revised to read as follows:
Sec. 157.206 Standard conditions.
* * * * *
(b) * * *
(5) The noise attributable to any compressor facility installed,
modified, upgraded, or uprated pursuant to the blanket certificate
shall not exceed a day-night sound level (Ldn) of 55 db (A)
at any noise-sensitive area unless the noise-sensitive areas (such as
schools, hospitals, or residences) are established after facility
construction, modification, upgrade, or uprate.
* * * * *
(c) Commencement. Any authorized construction, extension, or
acquisition shall be completed and made available for service by the
certificate holder and any authorized operation, or service, shall be
available within one year of the date the activity is authorized
pursuant to Sec. 157.205(h). The certificate holder may apply to the
Director of the Office of Pipeline Regulation for an extension of this
deadline. However, if the request for extension is not due to
construction delays, the certificate holder must provide notification
that the end-user/shipper is unable to meet the one year timetable.
* * * * *
29. In Sec. 157.207, paragraphs (b) and (c) are revised; paragraph
(f) is removed; paragraphs (g) and (h) are redesignated as paragraphs
(f) and (g) to read as follows:
Sec. 157.207 General reporting requirements.
* * * * *
(b) For each delivery point authorized under Sec. 157.211(a)(1),
the information required by Sec. 157.211(c);
(c) For each temporary compressor facility under Sec. 157.209, the
information required by Sec. 157.209(b);
* * * * *
30. In Sec. 157.208, the heading is revised; in paragraphs (a)(2)
and (b)(2) add the word ``replace'' after the word ``construct,';
remove paragraphs (c)(6) and (c)(8); paragraph (c)(7) is redesignated
as (c)(6), paragraphs (c)(9) through (11) are redesignated as (c)(7)
through (9); in redesignated (c)(9) the first sentence is revised and a
new sentence is added at the end; in paragraph (d) the reference to
``GNP'' is removed and a reference to ``GDP'' is added in its place,
the words ``and Producer'' are removed, and the reference to
``375.307(t)'' is corrected to ``375.307(d)''; in paragraph (e) the
introductory text and paragraph (e)(2) are revised, paragraphs (e)(4)
through (e)(7) are removed; paragraph (e)(8) is redesignated as (e)(4),
paragraph (e)(9) is redesignated as (e)(5); and in paragraph (g) the
words ``and Producer'' are removed to read as follows:
Sec. 157.208 Construction, acquisition, operation, replacement, and
miscellaneous rearrangement of facilities.
* * * * *
(c) * * *
(9) A concise analysis discussing the relevant issues outlined in
Sec. 380.12 of this chapter. * * * Include a copy of the ``clearances''
received for compliance with the Endangered Species Act, National
Historic Preservation Act, and Coastal Zone Management Act.
* * * * *
(e) Reporting requirements. For each facility completed during the
calendar year pursuant to paragraph (a) of this section, the
certificate holder shall file, in the manner prescribed in
Secs. 157.6(a) and 385.2011 of this chapter, as part of the required
annual report under Sec. 157.207(a) the information described in
paragraph (e)(1) through (5) of this section. For each facility
completed during the calendar year pursuant to paragraph (b) of this
section, the certificate holder shall file in the manner prescribed in
this paragraph only the information described in paragraph (e)(3).
(1) * * *
(2) The specific purpose, location, and beginning and completion
date of construction of the facilities installed, and, if applicable, a
statement indicating the extent to which the facilities were jointly
constructed;
* * * * *
31. Section 157.209 is added to read as follows:
Sec. 157.209 Temporary compression facilities
(a) Automatic authorization. If the cost does not exceed the cost
limitations set forth in column 1 in the Limit section of Table I,
under Sec. 157.208(d) of this chapter, the certificate holder may
install, operate and remove temporary facilities provided that the
temporary compressor facilities shall not be used to increase the
volume or service above that rendered by the involved existing
permanent compressor unit(s).
(b) Reporting requirements. As part of the certificate holder's
annual report of projects authorized under paragraph (a) of this
section, the certificate holder must report the following in the manner
prescribed in Secs. 157.6(a) and 385.2011 of this chapter:
(1) A description of the temporary compression facility, including
the size, type and number of compressor units;
(2) The location at which temporary compression was installed,
operated and removed, including its location relative to existing
facilities;
(3) A description of the permanent compression facility which was
unavailable, and a statement explaining the reason for the temporary
compression;
(4) The dates for which the temporary compression was installed,
operated and removed; and
(5) If applicable, the information required in Sec. 157.208(e)(4).
Sec. 157.210 [Removed]
32. Sec. 157.210 is removed and reserved.
33. In Sec. 157.211, the heading, paragraphs (a), (b)(1) through
(5), and (c)(1) through (3) are revised and a new paragraph (c)(4) is
added to read as follows:
Sec. 157.211 Delivery points
(a) Construction and operation--(1) Automatic authorization. The
certificate holder may acquire, construct, replace, modify, or operate
any delivery point, excluding the construction of certain delivery
points subject to the prior notice provisions in paragraph (a)(2) of
this section if:
(i) The natural gas is being delivered to, or for the account of, a
shipper for whom the certificate holder is, or will be, authorized to
transport gas; and
(ii) The certificate holder's tariff does not prohibit the addition
of new delivery points.
(2) Prior notice. Subject to the notice procedure in Sec. 157.205,
the certificate holder may construct a delivery point if:
(i) The natural gas is being delivered to, or for the account of,
an end-user that is currently being served by a local distribution
company; and
(ii) The natural gas is being delivered to a shipper for whom the
certificate holder is, or will be, authorized to transport gas; and
(iii) The certificate holder's tariff does not prohibit the
addition of new delivery points.
(b) * * *
(1) The name of the end-user, the location of the delivery point,
and the distribution company currently serving the end-user;
(2) A description of the facility and any appurtenant facilities;
(3) A USGS 7\1/2\-minute series (scale 1:24,000 or 1:25,000)
topographic map (or map of equivalent or greater detail, as
appropriate) showing the location of the proposed facilities;
[[Page 55704]]
(4) The quantity of gas to be delivered through the proposed
facility;
(5) A description, with supporting data, of the impact of the
service rendered through the proposed delivery tap upon the certificate
holder's peak day and annual deliveries.
(c) * * *
(1) A description of the facilities acquired, constructed,
replaced, modified or operated pursuant to this section;
(2) The location and maximum quantities delivered at such delivery
point;
(3) The actual cost of the delivery point and the date such
delivery point is ready and available for service; and
(4) The date of each clearance obtained pursuant to
Sec. 157.206(b)(3) and the date construction began.
* * * * *
Sec. 157.212 [Removed]
34. Section 157.212 is removed and reserved.
Sec. 157.213 [Removed]
35. Section 157.213 is removed and reserved.
36. In Sec. 157.215, paragraph (b)(1)(iii) is revised to read as
follows:
Sec. 157.215 Underground storage testing and development.
* * * * *
(b) * * *
(1) * * *
(iii) The cost of such facilities, the date construction began, and
the date they were placed in service;
* * * * *
37. In Sec. 157.216, paragraphs (a)(1) and (2), (b), (c)(1) and
(3), and (d)(1), (2), and (4) are revised; and new paragraphs (c)(5),
and (d)(5) are added to read as follows:
Sec. 157.216 Abandonment.
(a) * * *
(1) A receipt or delivery point, or related supply or delivery
lateral, provided the point has not been used to provide (i)
Interruptible transportation service during the one year period prior
to the effective date of the proposed abandonment, or
(ii) Firm transportation service during the one year period prior
to the effective date of the proposed abandonment, provided the point
is no longer covered under a firm contract; or
(2) An eligible facility that was installed pursuant to automatic
authority under Sec. 157.208(a), or that now qualifies for automatic
authority under Sec. 157.208(a), provided the certificate holder
obtains the written consent of the customers served through such
facility. Consent is required from customers that have received service
during the immediate past 12 months.
(b) Prior notice. Subject to the notice requirements of
Sec. 157.205, the certificate holder is authorized pursuant to section
7(b) of the Natural Gas Act to abandon:
(1) Any receipt or delivery point if all of the existing customers
of the pipeline served through the receipt or delivery point consent in
writing to the abandonment. When filing a request for authorization of
the proposed abandonment under the notice procedures of Sec. 157.205,
the certificate holder shall notify, in writing, the State public
service commission having regulatory authority over retail service to
the customers served through the delivery point.
(2) Any other facility which qualifies as an eligible facility, and
which is not otherwise eligible for automatic authorization under
paragraph (a)(2) of this section, provided the certificate holder
obtains the written consent of all of the customers served through such
facility. Consent is required from customers that have received service
during the immediate past 12 months.
(c) * * *
(1) The location, type, size, and length of the subject facilities;
* * * * *
(3) For each facility an oath statement that all of the customers
served during the past year by the subject facilities have consented to
the abandonment, or an explanation of why the customers' consent is not
available;
* * * * *
(5) For any abandonment resulting in earth disturbance, a USGS 7\1/
2\-minute-series (scale 1:24,000 or 1:25,000) topographic map (or map
of equivalent or greater detail, as appropriate) showing the location
of the proposed facilities.
(d) * * *
(1) A description of the facilities abandoned pursuant to this
section;
(2) The docket number(s) of the certificate(s) authorizing the
construction and operation of the facilities to be abandoned;
* * * * *
(4) The date earth disturbance, if any, related to the abandonment
began and the date the facilities were abandoned; and
(5) The date of the clearances obtained pursuant to
Sec. 157.206(b)(3), if earth disturbance was involved.
Sec. 157.217 [Removed]
38. Sec. 157.217 is removed and reserved.
39. In Sec. 157.218, paragraph (a) is revised to read as follows:
Sec. 157.218 Changes in customer name.
(a) Automatic authorization. The effective certificates of the
certificate holder may be amended to the extent necessary to reflect
the change in the name of an existing customer, if the certificate
holder has filed any necessary conforming changes in its tariffs,
including the customer's old name.
* * * * *
Appendix I to Subpart F of Part 157
40. In appendix I to subpart F of part 157, in the reference to
``Sec. 157.206(d)(3)(i)'' in the heading and the references to
``Sec. 157.206(d)'' and ``Sec. 157.206(d)(7)'' in the introduction the
``(d)'' is removed and a ``(b)'' is added in their place; the
references to ``Sec. 157.206(d)(2)(vii)'' in the second introductory
paragraph, paragraphs 2, 3, and 4(b) are revised to read
``Sec. 157.206(b)(2)(vi)''; and the words'', or that no further
consultation is necessary'' is added to the end of paragraph 4(b).
Appendix II to Subpart F of Part 157
41. In appendix II to subpart F of part 157, in the references to
``Sec. 157.206(d)(3)(ii)'' in the heading and
``Sec. 157.206(d)(3)(ii)'' in the introduction the ``(d)'' is removed
and a ``(b)'' is added in its place; in the references to
``Sec. 157.206(d)(2)(iv)'' in paragraphs (4), (6), (7) and (8) the
``(d)'' and ``(iv)'' are removed and a ``(b)'' and ``(iii)'' are added
in their place; in paragraph (1)(b) the reference to ``Environmental
Evaluation Branch, Office of Pipeline and Producer Regulation'' is
removed and a reference to ``Environmental staff of the Office of
Pipeline Regulation'' is added in its place.
PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE
NATURAL GAS ACT, THE NATURAL GAS POLICY ACT OF 1978 AND RELATED
AUTHORITIES
42. The authority citation for Part 284 continues to read as
follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352;
43 U.S.C. 1331-1356.
43. In Sec. 284.221, paragraph (d)(1) is amended to remove the
``s'' from the word ``paragraphs'' and to remove the phrase ``and
(d)(3)''; paragraph (d)(3) is removed; the word ``replacement,'' is
added to paragraph (f)(3) after the word ``operation''; paragraph
(f)(4) is revised; and the phrase ``and Sec. 157.212'' is removed from
paragraph (h)(3) to read as follows:
[[Page 55705]]
Sec. 284.221 General rule; transportation by interstate pipelines on
behalf of others.
* * * * *
(f) * * *
(4) Authorization for delivery points is subject to the automatic
authorization under Sec. 157.211(a)(1) and the prior notice procedures
under Sec. 157.211(a)(2) and Sec. 157.205.
* * * * *
Sec. 284.288 [Removed]
44. Sec. 284.288 is removed and reserved.
PART 375--THE COMMISSION
45. The authority citation for Part 375 continues to read as
follows:
Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717w, 3301-3432; 16
U.S.C. 791-825r, 2601-2645; 42 U.S.C. 7101-7352.
46. In Sec. 375.307, paragraph (a)(1) is amended to remove
``$5,000,000'' and to add the words ``the limits specified in Column 2
of Table I in Sec. 157.208(d)'' in its place; paragraph (a)(2) is
removed; paragraphs (a)(3) through (5) are redesignated as paragraphs
(a)(2) through (4) and are revised; paragraphs (a)(6) and (a)(7) are
redesignated as (a)(5) and (6); paragraphs (a)(8) and (a)(9) are
removed; paragraph (a)(10) through (12) are redesignated as (a)(7)
through (9); new paragraph (a)(10) is added; paragraphs (a)(14) through
(16) are redesignated as (a)(11) through (13), and paragraphs (a)(17)
and (a)(18) are removed; paragraphs (b)(4) and (5) and (c) are removed;
paragraph (d) is redesignated as (c); paragraphs (e)(3) and (7) are
removed; paragraphs (e)(4) through (6) are redesignated as (e)(3)
through (5); paragraphs (e) through (g) are redesignated as (d) through
(f); and redesignated paragraph (e)(3) is revised all to read as
follows:
Sec. 375.307 Delegations to the Director of the Office of Pipeline
Regulation.
* * * * *
(a) * * *
(2) Applications by a pipeline for the abandonment of pipeline
facilities or for the deletion of delivery points;
(3) Applications to abandon pipeline facilities or services
involving a specific customer or customers, if such customer or
customers have agreed to the abandonment;
(4) Applications for temporary or permanent certificates (and for
amendments thereto) for the transportation, exchange, or storage of
natural gas, provided that the cost of construction of the certificate
applicant's related facility is less than the limits specified in
Column 2 of Table I in Sec. 157.208(d).
* * * * *
(10) Dismiss any protest that does not raise a substantive issue
and fails to provide any specific detailed reason or rationale for the
objection;
* * * * *
(e) * * *
(3) Fees prescribed in Secs. 381.207 and 381.403 of this chapter in
accordance with Secs. 381.106(b) of this chapter;
* * * * *
PART 380--REGULATIONS IMPLEMENTING THE NATIONAL ENVIRONMENTAL
POLICY ACT.
47. The authority citation for Part 380 continues to read as
follows:
Authority: National Environmental Policy Act of 1969, 42 U.S.C.
4321-4370a; Department of Energy Organization Act, 42 U.S.C. 7107-
7352; E.O. 12009, 3 CFR 1978 Comp., p. 142.
Sec. 380.3 [Amended]
48. Section 380.3(c)(2) is amended to add the words ``Sec. 380.12
and'' after the words ``information identified in''.
Sec. 380.4 [Amended]
49. At Sec. 380.4(a)(28) remove the word ``tops'' and add the word
``taps'' in its place.
50. Section 380.12 is added to read as follows:
Sec. 380.12 Environmental reports for Natural Gas Act applications.
(a)(1) The applicant must submit an environmental report with any
application that proposes the construction, operation, or abandonment
of any facility identified in Sec. 380.3(c)(2)(i). The environmental
report shall consist of the thirteen resource reports and related
material described in this paragraph.
(2) The detail of each resource report must be commensurate with
the complexity of the proposal and its potential for environmental
impact. Each topic in each resource report shall be addressed or its
omission justified, unless resource report description indicates that
the data is not required for that type of proposal. If material
required for one resource report is provided in another resource report
or in another exhibit, it may be incorporated by reference. If any
resource report topic is required for a particular project but is not
provided at the time the application is filed, the environmental report
shall explain why it is missing and when the applicant anticipates it
will be filed.
(3) The appendix to this Part contains a checklist of the minimum
filing requirements for an environmental report. Failure to provide at
least the applicable checklist items will result in rejection of the
application.
(b) As appropriate, each resource report shall:
(1) Address conditions or resources that might be directly or
indirectly affected by the project.
(2) Identify significant environmental effects expected to occur as
a result of the project;
(3) Identify the effects of construction, operation (including
maintenance and malfunctions), and termination of the project, as well
as cumulative effects resulting from existing or reasonably foreseeable
projects;
(4) Identify measures proposed to enhance the environment or to
avoid, mitigate, or compensate for adverse effects of the project;
(5) Provide a list of publications, reports, and other literature
or communications, including agency contacts, that were cited or relied
upon to prepare each report. This list should include the name and
title of the person contacted, their affiliations, and telephone
number.
(c) Resource Report 1--General project description. This report is
required for all applications. It will describe facilities associated
with the project, special construction and operation procedures,
construction timetables, future plans for related construction,
compliance with regulations and codes, and permits that must be
obtained. Resource Report 1 must:
(1) Describe and provide location maps of all jurisdictional
facilities, including all aboveground facilities associated with the
project (such as: meter stations, pig launchers/receivers, valves), to
be constructed, modified, abandoned, replaced, or removed, including
related construction and operational support activities and areas such
as maintenance bases, staging areas, communications towers, power
lines, and new access roads (roads to be built or modified). As
relevant, the report must describe the length and diameter of the
pipeline, the types of aboveground facilities that would be installed,
and associated land requirements. It must also identify other companies
that must construct jurisdictional facilities related to the project,
where the facilities would be located, and where they are in the
Commission's approval process.
(2) Identify and describe all nonjurisdictional facilities that
will be built in association with the project, including facilities to
be built by other companies.
[[Page 55706]]
(i) Provide the following information:
(A) A brief description of each facility, including as appropriate:
ownership, land requirements, gas consumption, megawatt size,
construction status, and an update of the latest status of Federal,
state, and local permits/approvals;
(B) The length and diameter of any interconnecting pipeline;
(C) Current 1:24,000/1:25,000 scale topographic maps showing the
location of the facilities;
(D) Correspondence with the appropriate State Historic Preservation
Officer (SHPO) regarding whether properties eligible for listing on the
National Register of Historic Places (NRHP) would be affected;
(E) Correspondence with the Fish and Wildlife Service (and National
Marine Fisheries Service, if appropriate) regarding potential impacts
of the proposed facility on federally listed threatened and endangered
species; and
(F) For facilities within a designated coastal zone management
area, a consistency determination or evidence that the owner has
requested a consistency determination from the state's coastal zone
management program.
(ii) Address each of the following factors and indicate which ones,
if any, indicate the need to do an environmental review of project-
related nonjurisdictional facilities.
(A) Whether or not the regulated activity comprises ``merely a
link'' in a corridor type project (e.g., a transportation or utility
transmission project).
(B) Whether there are aspects of the nonjurisdictional facility in
the immediate vicinity of the regulated activity which affect the
location and configuration of the regulated activity.
(C) The extent to which the entire project will be within the
Commission's jurisdiction.
(D) The extent of cumulative Federal control and responsibility.
(3) Provide the following maps and photos:
(i) Current, original United States Geological Survey (USGS) 7.5-
minute series topographic maps or maps of equivalent detail, covering
at least a 0.5-mile-wide corridor centered on the pipeline, with
integer mileposts identified, showing the location of rights-of-way,
new access roads, other linear construction areas, compressor stations,
and pipe storage areas. Show nonlinear construction areas on maps at a
scale of 1:3,600 or larger keyed graphically and by milepost to the
right-of-way maps.
(ii) Original aerial photographs or photo-based alignment sheets,
not more than 1 year old and with a scale of 1:6,000 or larger, showing
the proposed pipeline route and location of major aboveground
facilities, covering at least a 0.5 mile-wide corridor, and including
mileposts. Alternative formats (e.g., blue-line prints of acceptable
resolution) need prior approval by the environmental staff of the
Office of Pipeline Regulation.
(iii) In addition to the copy required under Sec. 157.6(a)(2) of
this chapter, applicant should send two additional copies of
topographic maps and aerial photos directly to the environmental staff
of the Office of Pipeline Regulation.
(4) When new or additional compression is proposed, include large
scale (1:3,600 or greater) plot plans of each compressor station. The
plot plan should reference a readily identifiable point(s) on the USGS
maps required in paragraph (c)(2) of this section. The maps and plot
plans must identify the location of noise-sensitive areas (schools,
hospitals, or residences) near the compressor station, existing and
proposed compressor and auxiliary buildings, access roads, and the
limits of areas that would be permanently disturbed.
(5) Identify aboveground facilities to be abandoned, how they would
be abandoned, and how the site would be restored.
(6) Describe and identify by milepost, proposed construction and
restoration methods to be used in areas of rugged topography,
residential areas, active croplands, sites where the pipeline would be
located longitudinally under roads, and sites where explosives are
likely to be used.
(7) Unless provided in response to Resource Report 5, describe
estimated workforce requirements, including the number of pipeline
construction spreads, average workforce requirements for each
construction spread and meter or compressor station, estimated duration
of construction from initial clearing to final restoration, and number
of personnel to be hired to operate the proposed project.
(8) Describe reasonably foreseeable plans for future expansion of
facilities, including additional land requirements and the
compatibility of those plans with the current proposal.
(9) Describe all authorizations required to complete the proposed
action and the status of applications for such authorizations. Identify
environmental mitigation requirements specified in any permit or
proposed in any permit application to the extent not specified
elsewhere in this section.
(10) Provide the names and addresses of all landowners whose land
would be crossed by the project facilities. Include the names and
addresses of all residents adjacent to new or modified compressor
stations.
(d) Resource Report 2--Water use and quality. This report is
required for all applications, except those which involve only
facilities within the areas of an existing compressor, meter, or
regulator station that were disturbed by construction of the existing
facilities, no wetlands or waterbodies are on the site and there would
not be a significant increase in water use. The report must describe
water quality and provide data sufficient to determine the expected
impact of the project and the effectiveness of mitigative, enhancement,
or protective measures. Resource Report 2 must:
(1) Identify and describe by milepost perennial waterbodies and
municipal water supply or watershed areas, especially designated
surface water protection areas and sensitive waterbodies, and wetlands
that would be crossed. For each waterbody crossing, identify the
approximate width, state water quality classifications, any known
potential pollutants present in the water or sediments, and any potable
water intake sources within 3 miles downstream.
(2) Compare proposed mitigation measures with the staff's current
``Wetland and Waterbody Construction and Mitigation Procedures,'' which
are available from the Commission's Internet Homepage at http://
www.ferc.fed.us/gas/environment/gidlines.htm or from the Commission's
staff, describe what proposed alternative mitigation would provide
equivalent or greater protection to the environment, and provide a
description of site-specific construction techniques that would be used
at each major waterbody crossing.
(3) Describe typical staging area requirements at waterbody and
wetland crossings. Also, identify and describe waterbodies and wetlands
where staging areas are likely to be more extensive.
(4) Describe, by milepost, wetland crossings as determined by field
delineation using the current Federal methodology, or as listed on
National Wetland Inventory (NWI) maps. Identify, for each crossing, the
wetland classification specified by the U.S. Fish and Wildlife Service
and the length of the crossing. If NWI maps are provided, include two
copies clearly showing the proposed route and mileposts. If NWI maps
are not provided, provide two copies of USGS maps depicting wetlands
delineated by the applicant.
[[Page 55707]]
(5) Identify aquifers within excavation depth in the project area,
including the depth of the aquifer, current and projected use, water
quality and average yield, and known or suspected contamination
problems.
(6) Describe specific locations, the quantity required, and the
method and rate of withdrawal and discharge of hydrostatic test water.
Describe suspended or dissolved material likely to be present in the
water as a result of contact with the pipeline, particularly if an
existing pipeline is being retested. Describe chemical or physical
treatment of the pipeline or hydrostatic test water. Discuss waste
products generated and disposal methods.
(7) If underground storage of natural gas is proposed:
(i) Identify how water produced from the storage field will be
disposed of, and
(ii) For salt caverns, identify the source locations, the quantity
required, and the method and rate of withdrawal of water for creating
salt cavern(s), as well as the means of disposal of brine resulting
from cavern leaching.
(8) Discuss proposed mitigation measures to reduce the potential
for adverse impacts to surface water or groundwater quality to the
extent they are not described in response to paragraph (d)(2) of this
section. Discuss the potential for blasting to affect water wells,
springs, and wetlands, and measures to be taken to detect and remedy
such effects.
(9) Identify the location of known public and private groundwater
supply wells or springs within 150 feet of proposed construction areas.
Identify locations of EPA or state-designated sole-source aquifers and
well-head protection areas crossed by the proposed pipeline facilities.
(e) Resource Report 3--Fish, wildlife, and vegetation. This report
is required for all applications, except those involving only
facilities within the improved area of an existing compressor, meter,
or regulator station. It must describe aquatic life, wildlife, and
vegetation in the vicinity of the proposed project; expected impacts on
these resources including potential effects on biodiversity; and
proposed mitigation, enhancement or protection measures. Resource
Report 3 must:
(1) Describe commercial and recreational warmwater, coldwater, and
saltwater fisheries in the affected area and associated significant
habitats such as spawning or rearing areas and estuaries.
(2) Describe terrestrial habitats, including wetlands, typical
wildlife habitats, and significant wildlife habitats that might be
affected by the proposed action. Describe typical species that have
commercial, recreational, or aesthetic value.
(3) Describe and provide the affected acreage of vegetation cover
types that would be affected, including unique ecosystems or
communities such as remnant prairie or old-growth forest, or
significant individual plants, such as old-growth specimen trees.
(4) Describe the impact of construction and operation on aquatic
and terrestrial species and their habitats, including the possibility
of a major alteration to ecosystems or biodiversity, and any potential
impact on state-listed endangered or threatened species. Describe the
impact of maintenance, clearing and treatment of the project area on
fish, wildlife, and vegetation, including specific areas of significant
habitats or communities.
(5) Identify all federally listed or proposed endangered or
threatened species and state-listed endangered or threatened species
that potentially occur in the vicinity of the project. Discuss the
results of the consultation requirements listed in Sec. 380.13(b) and
include any written correspondence that resulted from the consultation.
(6) Describe site-specific mitigation measures to minimize impacts
on fisheries, wildlife, and vegetation.
(7) Include copies of correspondence not provided pursuant to
paragraph (e)(5) of this section, containing recommendations from
appropriate Federal and state fish and wildlife agencies to avoid or
limit impact on wildlife, fisheries, and vegetation, and the
applicant's response to the recommendations.
(f) Resource Report 4--Cultural resources. This report is required
for all applications. In order to prepare this report, the applicant
must follow the principles in Sec. 380.14. Guidance on the content and
the format for the documentation listed in this paragraph, as well as
professional qualifications of preparers, is detailed in ``OPR's
Guidelines for Reporting on Cultural Resources Investigations,'' which
is available from the Commission's Internet Homepage at http://
www.ferc.fed.us/gas/environment/gidlines.htm or from the Commission's
staff.
(1) Resource Report 4 must ultimately contain:
(i) Plan for Unanticipated Historic Properties and Human Remains--
The Commission may consider a previously approved unanticipated
discovery plan for the state in which the project would be located. The
applicant should reference the docket number of the proceeding in which
the plan was approved in its filing;
(ii) Documentation of applicant's initial cultural resources
consultation, including consultations with Native Americans (if
appropriate);
(iii) Overview and Survey Reports, as appropriate;
(iv) Evaluation Report, as appropriate;
(v) Treatment Plan, as appropriate; and
(vi) Written comments from State Historic Preservation Officer(s)
(SHPO) and applicable land-managing agencies on the reports in
paragraphs (f)(1)(ii through v) of this section.
(2) The Plan for Unanticipated Historic Properties and Human
Remains, the Documentation of initial cultural resource consultation,
the Overview and Survey Reports, if required, and written comments from
SHPOs and land-management agencies must be filed with the initial
application.
(i) If the SHPOs' and land-management agencies' comments are not
available at the time the application is filed, they may be filed
separately.
(ii) If landowners deny access to private property and certain
areas are not surveyed, the unsurveyed area must be identified by
mileposts, and supplemental surveys or evaluations may be conducted
after access is granted. In such circumstances, reports, and treatment
plans, if necessary, for those inaccessible lands may be filed after a
certificate is issued.
(3) The Evaluation Report and Treatment Plan, if required, for the
entire project must be filed before a final certificate is issued.
(i) The Evaluation Report may be combined in a single synthetic
report with the Overview and Survey Reports if the SHPOs and land-
managing agencies allow and if it is available at the time the
application is filed.
(ii) In preparing the Treatment Plan, the applicant must consult
with the staff, the SHPO, and any applicable land-managing agency.
(iii) Authorization to implement the Treatment Plan occurs only
after the final certificate is issued.
(4) Applicant must request privileged treatment for all material
filed with the Commission containing location, character, and ownership
information about cultural resources in accordance with Sec. 388.112 of
this chapter. The cover and relevant pages or portions of the report
should be clearly labeled in bold lettering: CONTAINS PRIVILEGED
INFORMATION--DO NOT RELEASE.
(5) Except as specified in a final Commission order, or by the
Director of the Office of Pipeline Regulation,
[[Page 55708]]
construction may not begin until all cultural resource reports and
plans have been approved.
(g) Resource Report 5--Socioeconomics. This report is required only
for applications involving significant aboveground facilities,
including, among others, conditioning or liquefied natural gas (LNG)
plants. It must identify and quantify the impacts of constructing and
operating the proposed project on factors affecting towns and counties
in the vicinity of the project. Resource Report 5 must:
(1) Describe the socioeconomic impact area.
(2) Evaluate the impact of any substantial immigration of people on
governmental facilities and services and plans to reduce the impact on
the local infrastructure.
(3) Describe on-site manpower requirements and payroll during
construction and operation, including the number of construction
personnel who currently reside within the impact area, would commute
daily to the site from outside the impact area, or would relocate
temporarily within the impact area.
(4) Determine whether existing housing within the impact area is
sufficient to meet the needs of the additional population.
(5) Describe the number and types of residences and businesses that
would be displaced by the project, procedures to be used to acquire
these properties, and types and amounts of relocation assistance
payments.
(6) Conduct a fiscal impact analysis evaluating incremental local
government expenditures in relation to incremental local government
revenues that would result from construction of the project.
Incremental expenditures include, but are not limited to, school
operating costs, road maintenance and repair, public safety, and public
utility costs.
(h) Resource Report 6--Geological resources. This report is
required for applications involving LNG facilities and all other
applications, except those involving only facilities within the
boundaries of existing aboveground facilities, such as a compressor,
meter, or regulator station. It must describe geological resources and
hazards in the project area that might be directly or indirectly
affected by the proposed action or that could place the proposed
facilities at risk, the potential effects of those hazards on the
facility, and methods proposed to reduce the effects or risks. Resource
Report 6 must:
(1) Describe, by milepost, mineral resources that are currently or
potentially exploitable;
(2) Describe, by milepost, existing and potential geological
hazards and areas of nonroutine geotechnical concern, such as high
seismicity areas, active faults, and areas susceptible to soil
liquefaction; planned, active and abandoned mines; karst terrain; and
areas of potential ground failure, such as subsidence, slumping, and
landsliding. Discuss the hazards posed to the facility from each one.
(3) Describe how the project would be located or designed to avoid
or minimize adverse effects to the resources or risk to itself,
including geotechnical investigations and monitoring that would be
conducted before, during, and after construction. Discuss also the
potential for blasting to affect structures, and the measures to be
taken to remedy such effects.
(4) Specify methods to be used to prevent project-induced
contamination from surface mines or from mine tailings along the right-
of-way and whether the project would hinder mine reclamation or
expansion efforts.
(5) If the application involves an LNG facility located in zones 2,
3, or 4 of the Uniform Building Code's Seismic Risk Map, or where there
is potential for surface faulting or liquefaction, prepare a report on
earthquake hazards and engineering in conformance with ``Data
Requirements for the Seismic Review of LNG Facilities,'' NBSIR 84-2833.
This document may be obtained from Commission staff.
(6) If the application is for underground storage facilities:
(i) Describe how the applicant would control and monitor the
drilling activity of others within the field and buffer zone;
(ii) Describe how the applicant would monitor potential effects of
the operation of adjacent storage or production facilities on the
proposed facility, and vice versa;
(iii) Describe measures taken to locate and determine the condition
of old wells within the field and buffer zone and how the applicant
would reduce risk from failure of known and undiscovered wells; and
(iv) Identify and discuss safety and environmental safeguards
required by state and Federal drilling regulations.
(i) Resource Report 7--Soils. This report is required for all
applications except those not involving soil disturbance. It must
describe the soils that would be affected by the proposed project, the
effect on those soils, and measures proposed to minimize or avoid
impact. Resource Report 7 must:
(1) List, by milepost, the soil associations that would be crossed
and describe the erosion potential, fertility, and drainage
characteristics of each association.
(2) If an aboveground facility site is greater than 5 acres:
(i) List the soil series within the property and the percentage of
the property comprised of each series;
(ii) List the percentage of each series which would be permanently
disturbed;
(iii) Describe the characteristics of each soil series; and
(iv) Indicate which are classified as prime or unique farmland by
the U.S. Department of Agriculture, Natural Resources Conservation
Service.
(3) Identify, by milepost, potential impact from: soil erosion due
to water, wind, or loss of vegetation; soil compaction and damage to
soil structure resulting from movement of construction vehicles; wet
soils and soils with poor drainage that are especially prone to
structural damage; damage to drainage tile systems due to movement of
construction vehicles and trenching activities; and interference with
the operation of agricultural equipment due to the probability of large
stones or blasted rock occurring on or near the surface as a result of
construction.
(4) Identify, by milepost, cropland and residential areas where
loss of soil fertility due to trenching and backfilling could occur.
(5) Describe proposed mitigation measures to reduce the potential
for adverse impact to soils or agricultural productivity. Compare
proposed mitigation measures with the staff's current ``Upland Erosion
Control, Revegetation and Maintenance Plan'', which is available from
the Commission's Internet Homepage at http://www.ferc.fed.us/gas/
environment/gidlines.htm or from the Commission's staff, explain how
proposed mitigation measures provide equivalent or greater protections
to the environment.
(j) Resource Report 8--Land use, recreation and aesthetics. This
report is required for all applications except those involving only
facilities which are of comparable use at existing compressor, meter,
and regulator stations. It must describe the existing uses of lands on,
and within 0.25 mile of, the proposed project and changes to those land
uses that would occur if the project is approved. The report shall
discuss proposed mitigation measures, including protection and
enhancement of existing land use. Resource Report 8 must:
(1) Describe the width and acreage requirements of all construction
and permanent rights-of-way and the acreage required for each proposed
plant and
[[Page 55709]]
operational site, including injection or withdrawal wells.
(i) List, by milepost, locations where the proposed right-of-way
would be adjacent to existing rights-of-way of any kind.
(ii) Identify, preferably by diagrams, existing rights-of-way that
would be used for a portion of the construction or operational right-
of-way, the overlap and how much additional width would be required.
(iii) Identify the total amount of land to be purchased or leased
for each aboveground facility, the amount of land that would be
disturbed for construction and operation of the facility, and the use
of the remaining land not required for project operation.
(iv) Identify the size of typical staging areas and expanded work
areas, such as those at railroad, road, and waterbody crossings, and
the size and location of all pipe storage yards and access roads.
(2) Identify, by milepost, the existing use of lands crossed by the
proposed pipeline, or on or adjacent to each proposed plant and
operational site.
(3) Describe planned development, the time frame for such
development, and proposed coordination to minimize impacts on land use.
(4) Identify, by milepost and length of crossing, the area of
direct effect of each proposed facility and operational site on sugar
maple stands, orchards and nurseries, landfills, operating mines,
hazardous waste sites, state wild and scenic rivers, state or local
designated trails, nature preserves, game management areas, remnant
prairie, old-growth forest, national or state forests, parks, golf
courses, designated natural, recreational or scenic areas, or
registered natural landmarks, Native American religious sites and
reservations, lands identified under the Special Area Management Plan
of the Office of Coastal Zone Management, National Oceanic and
Atmospheric Administration, and lands owned or controlled by Federal or
state agencies or private preservation groups shall be identified by
milepost and length of crossing.
(5) Identify, by milepost, all residences and buildings within 50
feet of the proposed pipeline construction right-of-way and the
distance of the residence or building from the right-of-way. Provide
survey drawings or alignment sheets to illustrate the location of the
facilities in relation to the buildings.
(6) Describe any areas crossed by the proposed pipeline at or
adjacent to each proposed plant and operational site which are included
in, or are designated for study for inclusion in: The National Wild and
Scenic Rivers System (16 U.S.C. 1271); The National Trails System (16
U.S.C. 1241); or a wilderness area designated under the Wilderness Act
(16 U.S.C. 1132).
(7) For facilities within a designated coastal zone management
area, provide a consistency determination or evidence that the
applicant has requested a consistency determination from the state's
coastal zone management program.
(8) Describe the impact the project will have on present uses of
the affected area, including commercial uses, mineral resources,
recreational areas, public health and safety, and the aesthetic value
of the land and its features. Describe any temporary or permanent
restrictions on land use resulting from the project.
(9) Describe mitigation measures intended for all special use areas
identified under paragraphs (j)(2) through (6) of this section.
(10) Describe proposed typical mitigation measures for each
residence that is within 50 feet of the edge of the pipeline
construction right-of-way, as well as any proposed residence-specific
mitigation. Describe how residential property would be restored
(fences, driveways, stone walls, sidewalks, water supply, and septic
systems, for example). Describe compensation plans for temporary and
permanent rights-of-way and the eminent domain process for the affected
areas.
(11) Describe measures proposed to mitigate the aesthetic impact of
the facilities especially for aboveground facilities such as compressor
or meter stations.
(12) Demonstrate that applications for rights-of-way or other
proposed land use have been or soon will be filed with Federal land-
managing agencies with jurisdiction over land that would be affected by
the project.
(k) Resource Report 9--Air and noise quality. This report is
required for applications involving compressor facilities at new or
existing stations, and for all new LNG facilities. It must identify the
effects of the project on the existing air quality and noise
environment and describe proposed measures to mitigate the effects.
Resource Report 9 must:
(1) Describe the existing air quality, including background levels
of nitrogen dioxide and other criteria pollutants which may be emitted
above EPA-identified significance levels.
(2) Quantitatively describe existing and proposed noise levels at
noise-sensitive areas.
(i) Report existing noise levels as the Leq (day),
Leq (night), and Ldn and include the basis for
the data or estimates.
(ii) For existing compressor stations, include the results of a
sound level survey at the site property line and nearby noise-sensitive
areas while the compressors are operated at full load.
(iii) For proposed new compressor station sites, measure or
estimate the existing ambient sound environment based on current land
uses and activities.
(iv) Include a plot plan that identifies the locations and duration
of noise measurements, the time of day, weather conditions, wind speed
and direction, engine load, and other noise sources present during each
measurement.
(3) Estimate the impact of the project on air quality, including
how existing regulatory standards would be met.
(i) Provide the emission rate of nitrogen oxides from existing and
proposed facilities, expressed in pounds per hour and tons per year for
maximum operating conditions, include supporting calculations, emission
factors, fuel consumption rates, and annual hours of operation.
(ii) For major sources of air emissions (as defined by the
Environmental Protection Agency), provide copies of applications for
permits to construct (and operate, if applicable) or for applicability
determinations under regulations for the prevention of significant air
quality deterioration and subsequent determinations.
(4) Provide a quantitative estimate of the impact of the project on
noise levels at noise-sensitive areas, such as schools, hospitals, or
residences.
(i) Include step-by-step supporting calculations, far-field sound
level data for maximum facility operation, and the source of the data.
(ii) Include sound pressure levels for unmuffled engine inlets and
exhausts, engine casings, and cooling equipment; dynamic insertion loss
for all mufflers; sound transmission loss for all compressor building
components, including walls, roof, doors, windows, and ventilation
openings; sound attenuation from the station to nearby noise-sensitive
areas; the manufacturer's name, the model number, the performance
rating; and a description of each noise source and noise control
component to be employed at the proposed compressor station.
(iii) Far-field sound level data measured from similar units in
service elsewhere, when available, may be substituted for
manufacturer's far-field sound level data.
(iv) If specific noise control equipment has not been chosen,
include
[[Page 55710]]
a schedule for submitting the data prior to certification.
(v) The estimate must demonstrate that the project will comply with
applicable noise regulations and show how the facility will meet the
following requirements:
(A) The noise attributable to any new compressor station or
compression added at an existing station or an existing station that is
otherwise modified, upgraded, or uprated, must not exceed a day-night
sound level (Ldn) of 55 dBA at any pre-existing noise-
sensitive area (such as schools, hospitals, or residences).
(B) New compressor stations or modification of existing stations
shall not result in a perceptible increase in vibration at any noise-
sensitive area.
(5) Describe measures and manufacturer's specifications for
equipment proposed to mitigate impact to air and noise quality,
including emission control systems, installation of filters, mufflers,
or insulation of piping and buildings, and orientation of equipment
away from noise-sensitive areas.
(l) Resource Report 10--Alternatives. This report is required for
all applications. It must describe alternatives to the project and
compare the environmental impacts of such alternatives to those of the
proposal. The discussion must demonstrate how environmental benefits
and costs were weighed against economic benefits and costs, and
technological and procedural constraints. The potential for each
alternative to meet project deadlines and the environmental
consequences of each alternative shall be discussed. Resource Report 10
must:
(1) Discuss the ``no action'' alternative and the potential for
accomplishing the proposed objectives through the use of other systems,
energy conservation, or realistic alternatives. Provide an analysis of
the relative environmental benefits and costs.
(2) Describe alternative routes or locations considered for each
facility during the initial screening but rejected. Include the
environmental characteristics of each route or site, and the reasons
for rejecting it. Identify the location of such alternatives on maps of
sufficient scale to depict their location and relationship to the
proposed action, and the relationship of the pipeline to existing
rights-of-way.
(3) Describe alternative routes or locations considered for more
in-depth consideration. Include a description of the environmental
characteristics of each route or site and the reasons for rejecting it.
Provide comparative tables showing the differences in environmental
characteristics for the alternative and proposed action. The location
of any alternatives in this paragraph shall be provided on maps
equivalent to those required in paragraph (c)(2) of this section.
(m) Resource Report 11--Reliability and safety. This report is
required for applications involving new or recommissioned LNG
facilities. Information previously filed with the Commission need not
be refiled if the applicant verifies its continued validity. This
report shall address the potential hazard to the public from failure of
facility components resulting from accidents or natural catastrophes,
how these events would affect reliability, and what procedures and
design features have been used to reduce potential hazards. Resource
Report 11 must:
(1) Describe measures proposed to protect the public from failure
of the proposed facilities (including coordination with local
agencies).
(2) Discuss hazards, the environmental impact, and service
interruptions which could reasonably ensue from failure of the proposed
facilities.
(3) Discuss design and operational measures to avoid or reduce
risk.
(4) Discuss contingency plans for maintaining service or reducing
downtime.
(5) Describe measures used to exclude the public from hazardous
areas. Discuss measures used to minimize problems arising from
malfunctions and accidents (with estimates of probability of
occurrence) and identify standard procedures for protecting services
and public safety during maintenance and breakdowns.
(n) Resource Report 12--PCB Contamination. This report is required
for applications involving the replacement, abandonment by removal, or
abandonment in place of pipeline facilities determined to have
polychlorinated biphenyls (PCBs) in excess of 50 ppm in pipeline
liquids. Resource Report 12 must:
(1) Provide a statement that activities would comply with an
approved EPA disposal permit, with the dates of issuance and expiration
specified, or with the requirements of the Toxic Substances Control
Act.
(2) For compressor station modifications on sites that have been
determined to have soils contaminated with PCBs, describe the status of
remediation efforts completed to date.
(o) Resource Report 13--Engineering and design material. This
report is required for construction of new liquefied natural gas (LNG)
facilities, or the recommissioning of existing LNG facilities. If the
recommissioned facility is existing and is not being replaced,
relocated, or significantly altered, resubmittal of information already
on file with the Commission is unnecessary. Resource Report 13 must:
(1) Provide a detailed plot plan showing the location of all major
components to be installed, including compression, pretreatment,
liquefaction, storage, transfer piping, vaporization, truck loading/
unloading, vent stacks, pumps, and auxiliary or appurtenant service
facilities.
(2) Provide a detailed layout of the fire protection system showing
the location of fire water pumps, piping, hydrants, hose reels, dry
chemical systems, high expansion foam systems, and auxiliary or
appurtenant service facilities.
(3) Provide a layout of the hazard detection system showing the
location of combustible-gas detectors, fire detectors, heat detectors,
smoke or combustion product detectors, and low temperature detectors.
Identify those detectors that activate automatic shutdowns and the
equipment that would shutdown. Include all safety provisions
incorporated in the plant design, including automatic and manually
activated emergency shutdown (ESD) systems.
(4) Provide a detailed layout of the spill containment system
showing the location of impoundments, sumps, subdikes, channels, and
water removal systems.
(5) Provide manufacturer specifications, drawings, and literature
on the fail-safe shut-off valve for each loading area at a marine
terminal (if applicable).
(6) Provide a detailed layout of the fuel gas system showing all
taps with process components.
(7) Provide copies of company, engineering firm, or consultant
studies of a conceptual nature that show the engineering planning or
design approach to the construction of new facilities or plants.
(8) Provide engineering information on major process components
related to the items in paragraphs (o) (1) through (6) of this section,
which include (as applicable) function, capacity, type, manufacturer,
drive system (horsepower, voltage), operating pressure, and
temperature.
(9) Provide manuals and construction drawings for LNG storage
tank(s).
(10) Provide up-to-date piping and instrumentation diagrams.
Include a description of the instrumentation and control philosophy,
type of instrumentation (pneumatic, electronic), use of computer
technology, and control
[[Page 55711]]
room display and operation. Also, provide an overall schematic diagram
of the entire process flow system, including maps, materials, and
energy balances.
(11) Provide engineering information on the plant's electrical
power generation system, distribution system, emergency power system,
uninterruptible power system, and battery backup system.
(12) Identify of all codes and standards under which the plant (and
marine terminal, if applicable) will be designed, and any special
considerations of safety provisions that were applied to the design of
plant components.
(13) Provide a list of all permits or approvals from local, state,
Federal, or Native American groups or Indian agencies required prior to
and during construction of the plant, and the status of each, including
the date filed, the date issued, and any known obstacles to approval.
Include a description of data records required for submission to such
agencies and transcripts of any public hearings by such agencies. Also
provide copies of any correspondence relating to the actions by all, or
any, of these agencies regarding all required approvals.
(14) Identify how each applicable requirement will comply with 49
CFR part 193 and the National Fire Protection Association 59A LNG
Standards. For new facilities, the siting requirements of 49 CFR part
193, subpart B must be given special attention. If applicable, vapor
dispersion calculations from LNG spills over water should also be
presented to ensure compliance with the U.S. Coast Guard's LNG
regulations in 33 CFR part 127.
(15) Provide seismic information specified in Data Requirements for
the Seismic Review of LNG facilities (NBSIR 84-2833, available from
FERC staff) for facilities that would be located in zone 2, 3, or 4 of
the Uniform Building Code Seismic Map of the United States.
51. New Sec. 380.13 is added to read as follows:
Sec. 380.13 Compliance with the Endangered Species Act.
(a) Definitions. For purposes of this section:
(1) ``Listed species'' and ``critical habitat'' have the same
meaning as provided in 50 CFR 402.02.
(2) ``Project area'' means any area subject to construction
activities (for example, material storage sites, temporary work areas,
and new access roads) necessary to install or abandon the facilities.
(b) Procedures for informal consultation. (1) Designation of non-
Federal representative. The project sponsor is designated as the
Commission's non-Federal representative for purposes of informal
consultations with the U.S. Fish and Wildlife Service (FWS) and the
National Marine Fisheries Service (NMFS) under the Endangered Species
Act of 1973, as amended (ESA).
(2) Consultation requirement. (i) Prior to the filing of the
environmental report specified in Sec. 380.12, the project sponsor must
contact the appropriate regional or field office of the FWS or the
NMFS, or both if appropriate, to initiate informal consultations,
unless it is proceeding pursuant to a blanket clearance issued by the
FWS and/or NMFS which is less than 1 year old and the clearance does
not specify more frequent consultation.
(ii) If a blanket clearance is more than 1 year old or less than 1
year old and specifies more frequent consultations, or if the project
sponsor is not proceeding pursuant to a blanket clearance, the project
sponsor must request a list of federally listed or proposed species and
designated or proposed critical habitat that may be present in the
project area, or provide the consulted agency with such a list for its
concurrence.
(iii) The consulted agency will provide any information requested
by a project sponsor pursuant to this paragraph within 30 days of its
receipt of the initial request. In the event that the consulted agency
does not provide this information within this time period, the project
sponsor may notify the Director, OPR, and follow the procedures in
paragraph (c) of this section.
(3) Finding of no impact. (i) If, at any time during the informal
consultations, the agency arrives at a finding of no impact, the
consulted agency agency will provide this information to the project
sponsor within 30 days.
(ii) Such a finding confirms:
(A) That no listed or proposed species, or its listed or proposed
critical habitat, occurs in the project area; or
(B) That the project is not likely to adversely affect a listed
species or critical.
(iii) In the event that the consulted agency does not provide this
information within this time period, the project sponsor may notify the
Director, OPR, and follow the procedures in paragraph (c) of this
section.
(4) Potential impact to proposed species. (i) If the consulted
agency, pursuant to informal consultations, initially determines that
any species proposed to be listed, or its proposed critical habitat,
occurs in the project area, the project sponsor must confer with the
consulted agency on methods to avoid or reduce the potential impact.
(ii) The project sponsor should include in its proposal,
implementation of any mitigating measures recommended through the
consultation process.
(5) Continued informal consultations for listed species. (i) If the
consulted agency initially determines, pursuant to the informal
consultations, that a listed species or its designated critical habitat
may occur in the project area, the project sponsor must continue
informal consultations with the consulted agency to determine if the
proposed project may affect the species or habitat. These consultations
may include discussions with experts (including experts provided by the
consulted agency), field surveys, biological analyses, and the
formulation of mitigation measures. If the biological assessment or
other pertinent information indicates that the project is not likely to
adversely affect a listed species or critical habitat, the consulting
agency provides a letter of concurrence which completes informal
consultation.
(ii) The project sponsor must prepare a Biological Assessment
unless the consulted agency indicates that the proposed project is not
likely to adversely affect a specific listed species or its designated
critical habitat. The Biological Assessment must contain the following
information for each species contained in the consulted agency's
species list:
(A) Life history and habitat requirements;
(B) Results of detailed surveys to determine if individuals,
populations, or suitable, unoccupied habitat exists in the proposed
project's area of effect;
(C) Potential impacts, both beneficial and negative, that could
result from the construction and operation of the proposed project, or
disturbance associated with the abandonment, if applicable; and
(D) Proposed mitigation that would eliminate or minimize these
potential impacts.
(iii) All surveys must be conducted by qualified biologists and
must use FWS and/or NMFS approved survey methodology. In addition, the
Biological Assessment must include the following information:
(A) Name(s) and qualifications of person(s) conducting the survey;
(B) Survey methodology;
(C) Date of survey(s); and
(D) Detailed and site-specific identification of size and location
of all areas surveyed.
[[Page 55712]]
(iv) The project sponsor must submit the Biological Assessment to
the consulted agency for its review and comment. If the consulted
agency fails to provide formal comments on the Biological Assessment to
the project sponsor within 30 days of its receipt, as specified in 50
CFR 402.12(d), the project sponsor may notify the Director, OPR, and
follow the procedures in paragraph (c) of this section.
(v) The consulted agency's comments on the Biological Assessment's
determination must be filed with the Commission.
(c) Notification to Director of OPR. In the event that the
consulted agency fails to respond to requests by the project sponsor
under paragraph (b) of this section, the project sponsor must notify
the Director, OPR. The notification must include all information,
reports, letters, and other correspondence prepared pursuant to this
section. The Director will determine whether:
(1) Additional informal consultation is required;
(2) Formal consultation must be initiated under paragraph (d) of
this section; or
(3) Construction may proceed.
(d) Procedures for Formal Consultation. (1) In the event that
Formal Consultation is required pursuant to paragraphs (b)(5)(v) or
(c)(2) of this section, the Commission staff will initiate Formal
Consultation with the FWS and/or NMFS, as appropriate, and will request
that the consulted agency designate a lead Regional Office, lead Field/
District Office, and Project Manager, as necessary, to facilitate the
Formal Consultation process. In addition, the Commission will designate
a contact for Formal Consultation purposes.
(2) During Formal Consultation, the consulted agency, the
Commission, and the project sponsor will coordinate and consult to
determine potential impacts and mitigation which can be implemented to
minimize impacts. The Commission and the consulted agency will schedule
coordination meetings and/or field visits as necessary.
(3) The Formal Consultation period will last no longer than 90
days, unless the consulted agency, the Commission, and project sponsor
mutually agree to an extension of this time period.
(4) The consulted agency will provide the Commission with a
Biological Opinion on the proposed project, as specified in 50 CFR
402.14(e), within 45 days of the completion of Formal Consultation.
52. New Sec. 380.14 is added to read as follows:
Sec. 380.14 Compliance with the National Historic Preservation Act.
Section 106 of the National Historic Preservation Act, as amended
(NHPA), requires the Commission take into account the effect of a
proposed project on any historic property and to afford the Advisory
Council on Historic Preservation (Council) an opportunity to comment on
the undertaking. The project sponsor, as a non-Federal party, assists
the Commission in meeting its obligations under NHPA section 106 by
following the procedures at Sec. 380.12(f). The project sponsor may
contact the Commission at any time for assistance. The Commission will
review the resultant filings.
(a) The Commission's NHPA section 106 responsibilities apply to
public and private lands, unless subject to the provisions of paragraph
(b) of this section. The project sponsor will assist the Commission in
taking into account the views of interested parties, Native Americans,
and tribal leaders.
(b) If Federal or Tribal land is affected by a proposed project,
the project sponsor shall adhere to any requirements for cultural
resources studies of the applicable Federal land-managing agencies on
Federal lands and any tribal requirements on Tribal lands. The project
sponsor must identify, in Resource Report 4 filed with the application
the status of cultural resources studies on Federal or Tribal lands, as
applicable
(c) The project sponsor must consult with the SHPO(s). If the SHPO
declines to consult with the project sponsor, the project sponsor shall
not continue, except as instructed by the Director, Office of Pipeline
Regulation.
(d) If the project is covered by an agreement document among the
Commission, Council, SHPO(s), land-managing agencies, project sponsors,
and interested persons, as appropriate, then that agreement will
provide for compliance with NHPA section 106, as applicable.
53. New Sec. 380.15 is added to read as follows:
Sec. 380.15 Siting and maintenance requirements.
(a) The siting, construction, and maintenance of facilities shall
be undertaken in a way that minimizes effects on scenic, historic,
wildlife, and recreational values.
(b) The desires of landowners should be taken into account in the
planning, locating, clearing, and maintenance of rights-of-way and the
construction of facilities on their property, so long as the result is
consistent with laws relating to land-use and any requirements imposed
by the Commission.
(c) The requirements of this section do not affect a project
sponsor's obligation to comply with safety regulations of the U.S.
Department of Transportation. Furthermore, the requirements of this
paragraph shall not detract from recognized safe engineering practices.
(d) Pipeline construction. (1) The use, widening, or extension of
existing rights-of way must be considered in locating proposed
facilities.
(2) In locating proposed facilities, the project sponsor shall, to
the extent practicable, avoid places listed on, or eligible for listing
on, the National Register of Historic Places; natural landmarks listed
on the National Register of Natural Landmarks; officially designated
parks; wetlands; and scenic, recreational, and wildlife lands. If
rights-of-way must be routed near or through such places, attempts
should be made to minimize visibility from areas of public view and to
preserve the character and existing environment of the area.
(3) Rights-of-way should avoid forested areas and steep slopes
where practical.
(4) Rights-of-way clearing should be kept to the minimum width
necessary.
(5) In selecting a method to clear rights-of-way, soil stability
and protection of natural vegetation and adjacent resources should be
taken into account.
(6) Trees and vegetation cleared from rights-of-way in areas of
public view should be disposed of without undue delay.
(7) Remaining trees and shrubs should not be unnecessarily damaged.
(8) Long foreground views of cleared rights-of-way through wooded
areas that are visible from areas of public view should be avoided.
(9) Where practical, rights-of-way should avoid crossing hills and
other high points at their crests where the crossing is in a forested
area and the resulting notch is clearly visible in the foreground from
areas of public view.
(10) Screen plantings should be employed where rights-of-way enter
forested areas from a clearing and where the clearing is plainly
visible in the foreground from areas of public view.
(11) Temporary roads should be designed for proper drainage and
built to minimize soil erosion. Upon abandonment, the road area should
be restored and stabilized without undue delay.
(e) Right-of-way maintenance. (1) Vegetation covers established on
a right-of-way should be properly maintained.
[[Page 55713]]
(2) Access and service roads should be maintained with proper
cover, water bars, and the proper slope to minimize soil erosion. They
should be jointly used with other utilities and land-management
agencies where practical.
(3) Chemical control of vegetation should not be used unless
authorized by the landowner or land-managing agency. When chemicals are
used for control of vegetation, they should be approved by EPA for such
use and used in conformance with all applicable regulations.
(f) Construction of aboveground facilities. (1) Unobtrusive sites
should be selected for the location of aboveground facilities.
(2) Aboveground facilities should cover the minimum area
practicable.
(3) Noise potential should be considered in locating compressor
stations, or other aboveground facilities.
(4) The exterior of aboveground facilities should be harmonious
with the surroundings and other buildings in the area.
54. Appendix A to Part 380 is revised to read as follows:
Appendix A to Part 380--Minimum Filing Requirements for
Environmental Reports Under the Natural Gas Act
------------------------------------------------------------------------
Resource Report 1--General Project Description
------------------------------------------------------------------------
Provide a detailed description and location map of the project
facilities. (Sec. 380.12(c)(1))
Describe any nonjurisdictional facilities that would be built
in association with the project. (Sec. 380.12(c)(2))
Provide current original U.S. Geological Survey (USGS) 7.5-
minute-series topographic maps with mileposts showing the project
facilities; (Sec. 380.12(c)(3))
Provide aerial photographs or photo-based alignment sheets with
mileposts showing the project facilities; (Sec. 380.12(c)(3))
Provide plot/site plans of compressor stations showing the
location of the nearest noise-sensitive areas (NSA) within 1 mile.
(Sec. 380.12(c)(3,4))
Describe construction and restoration methods. (Sec.
380.12(c)(6))
Identify the permits required for construction across surface
waters. (Sec. 380.12(c)(9))
Provide the names and addresses of all landowners whose land
would be crossed by the project facilities. Include the names and
addresses of all residents adjacent to new or modified compressor
stations. (Sec. 380.12(c)(10))
------------------------------------------------------------------------
Resource Report 2--Water Use and Quality
------------------------------------------------------------------------
Identify all perennial surface waterbodies crossed by the
proposed project and their water quality classification. (Sec.
380.12(d)(1))
Identify all waterbody crossings that may have contaminated
waters or sediments. (Sec. 380.12(d)(1))
Identify watershed areas, designated surface water protection
areas, and sensitive waterbodies crossed by the proposed project. (Sec.
380.12(d)(1))
Provide a table identifying all wetlands, by milepost and
length, crossed by the project (including abandoned pipeline), and the
total acreage and acreage of each wetland type that would be affected
by construction. (Sec. 380.12(d)(1 & 4))
Discuss construction and restoration methods proposed for
crossing wetlands, and compare them to staff's Wetland and Waterbody
Construction and Mitigation Procedures; (Sec. 380.12(d)(2))
Describe the proposed waterbody construction, impact
mitigation, and restoration methods to be used to cross surface waters
and compare to the staff's Wetland and Waterbody Construction and
Mitigation Procedures. (Sec. 380.12(d)(2))
Provide original National Wetlands Inventory (NWI) maps that
show all proposed facilities and include milepost locations for
proposed pipeline routes. (Sec. 380.12(d)(4))
Identify all U.S. Environmental Protection Agency (EPA)- or
state-designated aquifers crossed. (Sec. 380.12(d)(9))
------------------------------------------------------------------------
Resource Report 3--Vegetation and Wildlife
------------------------------------------------------------------------
Classify the fishery type of each surface waterbody that would
be crossed, including fisheries of special concern. (Sec.
380.12(e)(1))
Describe terrestrial and wetland wildlife and habitats that
would be affected by the project. (Sec. 380.12(e)(2))
Describe the major vegetative cover types that would be crossed
and provide the acreage of each vegetative cover type that would be
affected by construction. (Sec. 380.12(e)(3))
Describe the effects of construction and operation procedures
on the fishery resources and proposed mitigation measures. (Sec.
380.12(e)(4))
Evaluate the potential for short-term, long-term, and permanent
impact on the wildlife resources caused by construction and operation
of the project and proposed mitigation measures. (Sec. 380.12(e)(4))
Identify all federally listed or proposed endangered or
threatened species and state-listed endangered or threatened species
that potentially occur in the vicinity of the project and discussion
results of consultations with other agencies. (Sec. 380.12(e)(4,5))
Describe any significant biological resources that would be
affected. Describe impact and any mitigation proposed to avoid or
minimize that impact. (Sec. 380.12(e)(4 & 6))
------------------------------------------------------------------------
Resource Report 4--Cultural Resources
------------------------------------------------------------------------
See Sec. 380.14 and ``OPR's Guidelines for Reporting on
Cultural Resources Investigations'' for further guidance.
Plan for Unanticipated Historic Properties and Remains. (Sec.
380.12(f)(1)(i) & (2))
Initial cultural resources consultation and documentation, and
documentation of consultation with Native Americans. (Sec.
380.12(f)(1)(ii) & (2))
Overview/Survey Report(s). (Sec. 380.12(f)(1)(iii) & (2))
------------------------------------------------------------------------
Resource Report 5--Socioeconomics
------------------------------------------------------------------------
For major aboveground facilities and major pipeline projects
that require an EIS, describe existing socioeconomic conditions within
the project area. (Sec. 380.12(g)(1))
For major aboveground facilities, quantify impact on
employment, housing, local government services, local tax revenues,
transportation, and other relevant factors within the project area.
(Sec. 380.12(g)(2-6))
------------------------------------------------------------------------
[[Page 55714]]
Resource Report 6--Geological Resources
------------------------------------------------------------------------
Identify the location (by milepost) of mineral resources and
any planned or active surface mines crossed by the proposed facilities.
(Sec. 380.12(h)(1))
Identify any geologic hazards to the proposed facilities. (Sec.
380.12(h)(2))
Discuss the need for and locations where blasting may be
necessary in order to construct the proposed facilities. (Sec.
380.12(h)(3))
For LNG projects in seismic areas, the materials required by
``Data Requirements for the Seismic Review of LNG Facilities,'' NBSIR84-
2833. (Sec. 380.12(h)(5))
For underground storage facilities, how drilling activity by
others within or adjacent to the facilities would be monitored, and how
old wells would be located and monitored within the facility
boundaries. (Sec. 380.12(h)(6))
------------------------------------------------------------------------
Resource Report 7--Soils
------------------------------------------------------------------------
Identify, describe, and group by milepost the soils affected by
the proposed pipeline and aboveground facilities. (Sec. 380.12(i)(1))
For aboveground facilities that would occupy sites over 5
acres, determine the acreage of prime farmland soils that would be
affected by construction and operation. (Sec. 380.12(i)(2))
Describe, by milepost, potential impacts on soils. (Sec.
380.12(i)(3,4))
Identify proposed mitigation to minimize impact on soils, and
compare with the staff's Upland Erosion Control, Revegetation, and
Maintenance Plan. (Sec. 380.12(i)(5))
------------------------------------------------------------------------
Resource Report 8--Land Use, Recreation and Aesthetics
------------------------------------------------------------------------
Classify and quantify land use affected by: (Sec.
380.12(j)(1))
ipeline construction and permanent rights-of-way (Sec.
380.12(j)(1));
Extra work/staging areas (Sec. 380.12(j)(1));
Access roads (Sec. 380.12(j)(1));
Pipe and contractor yards (Sec. 380.12(j)(1)); and
Aboveground facilities (Sec. 380.12(j)(1)).
Identify by milepost all locations where the pipeline right-of-
way would at least partially coincide with existing right-of-way, where
it would be adjacent to existing rights-of-way, and where it would be
outside of existing right-of-way. (Sec. 380.12(j)(1))
Provide detailed typical construction right-of-way cross-
section diagrams showing information such as widths and relative
locations of existing rights-of-way, new permanent right-of-way, and
temporary construction right-of-way. (Sec. 380.12(j)(1))
Summarize the total acreage of land affected by construction
and operation of the project. (Sec. 380.12(j)(1))
Identify by milepost all planned residential or commercial/
business development and the time frame for construction. (Sec.
380.12(j)(3))
Identify by milepost special land uses (e.g., sugar maple
stands, specialty crops, natural areas, national and state forests,
conservation land, etc.). (Sec. 380.12(j)(4))
Identify by beginning milepost and length of crossing all land
administered by Federal, state, or local agencies, or private
conservation organizations. (Sec. 380.12(j)(4))
Identify by milepost all natural, recreational, or scenic
areas, and all registered natural landmarks crossed by the project.
(Sec. 380.12(j)(4 & 6))
Identify all facilities that would be within designated coastal
zone management areas. (Sec. 380.12(j)(4))
Identify by milepost all residences that would be within 50
feet of the construction right-of-way or extra work area. (Sec.
380.12(j)(5))
Identify all designated or proposed candidate National or State
Wild and Scenic Rivers crossed by the project. (Sec. 380.12(j)(6))
Describe any measures to visually screen aboveground
facilities, such as compressor stations. (Sec. 380.12(j)(11))
Demonstrate that applications for rights-of-way or other
proposed land use have been or soon will be filed with Federal land-
managing agencies with jurisdiction over land that would be affected by
the project. (Sec. 380.12(j)(12))
------------------------------------------------------------------------
Resource Report 9--Air and Noise Quality
------------------------------------------------------------------------
Describe existing air quality in the vicinity of the project.
(Sec. 380.12(k)(1))
Quantify the existing noise levels (day-night sound level (Ldn)
and other applicable noise parameters) at the noise sensitive area and
at other locations required by state and local noise ordinances. (Sec.
380.12(k)(2))
Quantify existing and proposed emissions of compressor
equipment, plus construction emissions, including nitrogen oxides (NOX)
and carbon monoxide (CO), and the basis for these calculations.
Summarize anticipated air quality impacts for the project. (Sec.
380.12(k)(3))
Describe the existing and proposed compressor units at each
station where new, additional, or modified compression units are
proposed, including the manufacturer, model number, and horsepower of
the compressor units. (Sec. 380.12(k)(4))
Identify any nearby NSA by distance and direction from the
proposed compressor unit building/enclosure. (Sec. 380.12(k)(4))
Identify any applicable state or local noise regulations. (Sec.
380.12(k)(4))
Calculate the noise impact of the proposed compressor unit
modifications or additions, specifying how the impact was calculated,
including manufacturer's data and proposed noise control equipment.
(Sec. 380.12(k)(4))
------------------------------------------------------------------------
Resource Report 10--Alternatives
------------------------------------------------------------------------
Address the ``no action'' alternative. (Sec. 380.12(l)(1))
For large projects, address the effect of energy conservation
or energy alternatives to the project. (Sec. 380.12(l)(1))
Identify system alternatives considered during the
identification of the project and provide the rationale for rejecting
each alternative. (Sec. 380.12(l)(1))
Identify major and minor route alternatives considered to avoid
impact on sensitive environmental areas (e.g., wetlands, parks, or
residences) and provide sufficient comparative data to justify the
selection of the proposed route. (Sec. 380.12(l)(3))
Identify alternative sites considered for the location of major
new aboveground facilities and provide sufficient comparative data to
justify the selection of the proposed site. (Sec. 380.12(l)(3))
------------------------------------------------------------------------
Resource Report 11--Reliability and Safety
------------------------------------------------------------------------
Describe how the project facilities would be designed,
constructed, operated, and maintained to minimize potential hazard to
the public from the failure of project components as a result of
accidents or natural catastrophes. (Sec. 380.12(m))
------------------------------------------------------------------------
[[Page 55715]]
Resource Report 12--PCB Contamination
------------------------------------------------------------------------
For projects involving the replacement or abandonment of
facilities determined to have PCBs, provide a statement that activities
would comply with an approved EPA disposal permit or with the
requirements of the TSCA. (Sec. 380.12(n)(1))
For compressor station modifications on sites that have been
determined to have soils contaminated with PCBs, describe the status of
remediation efforts completed to date. (Sec. 380.12(n)(2))
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Resource Report 13--Additional Information Related to LNG Plants
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Provide all the listed detailed engineering materials. (Sec.
380.12(o))
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PART 385--RULES OF PRACTICE AND PROCEDURE
55. 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. 1085.
56. In Sec. 385.2001, paragraph (b)(3) is revised to read as
follows:
Sec. 385.2001 Filings (Rule 2001).
* * * * *
(b) * * *
(3) The Secretary, or the office director to whom the filing has
been referred, will send a letter of rejections with an indication of
the deficiencies in the filing and the reasons for rejection.
* * * * *
[FR Doc. 98-26721 Filed 10-15-98; 8:45 am]
BILLING CODE 6717-01-P
