[Federal Register Volume 63, Number 246 (Wednesday, December 23, 1998)]
[Rules and Regulations]
[Pages 71014-71015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33986]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 284
[Docket No. RM96-1-012]
Standards for Business Practices of Interstate Natural Gas
Pipelines
Issued December 17, 1998.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Final rule; order establishing implementation date for OBA
regulations.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission is establishing April
1, 1999, as the date by which pipelines are required to comply with the
regulations requiring pipelines to enter into operational balancing
agreements with interconnecting interstate and intrastate pipelines.
(18 CFR Sec. 284.10(c)(2)(i)). These regulations were adopted in Order
No. 587-G. (63 FR 20072).
DATES: Pipelines must comply with 18 CFR Sec. 284.10(c)(2)(i) by April
1, 1999.
ADDRESSES: Federal Energy Regulatory Commission, 888 First Street,
N.E., Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT:
Michael Goldenberg, Office of the General Counsel, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426,
(202) 208-2294
Marvin Rosenberg, Office of Economic Policy, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, (202) 208-1283
Kay Morice, Office of Pipeline Regulation, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, (202) 208-0507
SUPPLEMENTARY INFORMATION: In addition to publishing the full text of
this document in the Federal Register, the Commission also provides all
interested persons an opportunity to inspect or copy the contents of
this document during normal business hours in the Public Reference Room
at 888 First Street, N.E., Room 2A, Washington, D.C. 20426. The
Commission Issuance Posting System (CIPS) provides access to the texts
of formal documents issued by the Commission. 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
[email protected]
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 [email protected]
Finally, the complete text on diskette in WordPerfect format may be
purchased from the Commission's copy contractor, RVJ International,
Inc. RVJ International, Inc., is located in the Public Reference Room
at 888 First Street, N.E., Washington, D.C. 20426.
Before Commissioners: James J. Hoecker, Chairman; Vicky A.
Bailey, William L. Massey, Linda Breathitt, and Curt Hebert, Jr.
In Order No. 587-G,\1\ the Commission adopted a regulation
(284.10(c)(2)(i)) \2\ requiring each interstate pipeline to enter into
operational balancing agreements (OBAs) at points of interconnection
between its system and the system of another interstate or intrastate
pipeline. In Order No. 587-G, the Commission deferred implementation of
this regulation until the Gas Industry Standards Board (GISB) had an
opportunity to develop standards related to OBAs and imbalance trading.
The Commission also stated that the pipelines would have three months
from the date on which final OBA regulations are adopted to conclude
OBA agreements with interconnecting interstate and intrastate
pipelines.\3\
---------------------------------------------------------------------------
\1\ Standards for Business Practices of Interstate Natural Gas
Pipelines, Order No. 587-G, 63 FR 20072 (Apr. 23, 1998), III FERC
Stats. & Regs. Regulations Preambles para. 31,062 (Apr. 16, 1998),
on reh'g, Order No. 587-I, 63 FR 53565 (Oct. 6, 1998), III FERC
Stats. & Regs. Regulations Preambles para. 31,067 (Sep. 29, 1998).
\2\ 18 CFR Sec. 284.10(c)(2)(i).
\3\ Order No. 587-G 63 FR at 20080, III FERC Stats. & Regs.
Regulations Preambles para. 31,062 at 30,676.
---------------------------------------------------------------------------
On November 9, 1998, GISB filed with the Commission a report on its
standards development progress. GISB reports that its Executive
Committee approved a model OBA on July 16, 1998,\4\ and that its OBA
standards are completed.\5\
---------------------------------------------------------------------------
\4\ In Order No. 587-G, the Commission found that pipelines did
not have to adopt a standard OBA if its terms are inapplicable to
their situation, although a standard OBA would provide a benchmark
in the event of disputes over OBA provisions. Order No. 587-G, 63 FR
at 20081, III FERC Stats. & Regs. Regulations Preambles para. 31,062
at 30,676-77.
\5\ GISB's November 9, 1998 filing, Docket No. RM96-1-010, at
Appendix 5.
---------------------------------------------------------------------------
[[Page 71015]]
Since the OBA standards are now complete, the Commission is
establishing an April 1, 1999 date for the pipelines to comply with the
requirement to enter into OBAs with interconnecting interstate and
intrastate pipelines. In Order No. 587-G, the Commission determined
that pipelines would not have to file OBAs with the Commission as long
as they maintained the contracts and made them available, along with
all relevant records of volumes and amounts paid, to the Commission and
any person requesting copies.\6\ Since pipelines are not required to
file OBA contracts with the Commission, each pipeline will be required
to file by April 1, 1999, a statement as to whether it has complied
with Sec. 284.10(c)(2)(i) of the regulations at all pipeline to
pipeline interconnects on its system.
---------------------------------------------------------------------------
\6\ Order No. 587-G, 63 FR at 20080, III FERC Stats. & Regs.
Regulations Preambles para. 31,062 at 30,676.
---------------------------------------------------------------------------
The Commission orders:
(A) Each interstate pipeline must comply with Sec. 284.10(c)(2)(i)
of the Commission's regulations by April 1, 1999.
(B) Each interstate pipeline must file by April 1, 1999, a
statement setting forth its compliance with Sec. 284.10(c)(2)(i) of the
Commission's regulations.
By the Commission.
David P. Boergers,
Secretary.
[FR Doc. 98-33986 Filed 12-22-98; 8:45 am]
BILLING CODE 6717-01-U
