[Federal Register Volume 60, Number 23 (Friday, February 3, 1995)]
[Notices]
[Pages 6767-6768]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2672]
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DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration
Pipeline Safety User Fees
[Docket No. PS-138; Notice 1]
AGENCY: Research and Special Programs Administration, (RSPA), DOT.
ACTION: Notice of agency action and request for comments.
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SUMMARY: This notice announces proposed changes in administering user
fee assessments for natural gas, liquefied natural gas, and hazardous
liquid pipeline facilities beginning with fiscal year 1995 (October 1,
1994) and solicits public comment on these changes.
DATES: Comments must be submitted on or before March 6, 1995: Comments
may be mailed to the Dockets Branch, Room 8421, U.S. Department of
Transportation, 400 Seventh Street, SW., Washington, DC 20590. All
comments and docket material may be reviewed in the Dockets Branch,
room 8426, Between the hours of 8:30 a.m. to 5:00 p.m. Monday through
Friday, except federal holidays.
FOR FURTHER INFORMATION CONTACT: Lisa C. Kokoszka, (202) 366-4554
regarding the subject matter of this notice, or the Dockets Unit, (202)
366-5046, regarding copies of this notice or other material that is
referenced herein.
SUPPLEMENTARY INFORMATION:
I. Background:
Section 60301 of Title 49, United States Code1 authorizes the
assessment and collection of pipeline user fees to fund the pipeline
safety activities conducted under Chapter 601 of that title2. The
Research and Special Programs Administration (RSPA) assesses each
operator of regulated interstate and intrastate natural gas
transmission pipelines (as defined in 49 CFR part 192), and hazardous
liquid pipelines carrying petroleum, petroleum products, anhydrous
ammonia and carbon dioxide (as defined in 49 CFR part 195), a share of
the total Federal pipeline safety program costs in proportion to the
number of miles of pipeline each operator has in service. The fee
schedule for LNG facilities is based on the number of facilities each
operator has in service and total storage capacity of those facilities.
\1\Formerly, section 7005 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (Pub.L. 99-272). The change in citation
is the result of the enactment, on July 5, 1994, of Pub. L. 103-272,
which recodified various transportation laws.
\2\Formerly, the Natural Gas Pipeline Safety Act of 1968 and the
Hazardous Liquid Pipeline Safety Act of 1979. This change in
citation is the result of the enactment, on July 5, 1994, of Pub.L.
103-272, which codified various transportation laws.
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RSPA is authorized to collect an amount equal to or 105% of the
annual Congressional appropriation for pipeline safety. The fiscal year
1995 appropriation is $37.424 million.
II. Administrative Clarifications and Proposals
RSPA is proposing several program clarifications and administrative
changes described below. These proposals will insure that all operators
are aware of the effects of certain terms and procedures on
administering the program by the Office of Pipeline Safety (OPS). The
public is specifically invited to comment on these proposals.
A. Definition of ``In Service''
The annual assessment is for those gas transmission and hazardous
liquid pipelines which are ``in service''. Over the last year some
operators have requested clarification of the term ``in service'' as it
pertains to calculating total milage subject to assessment. As used in
the assessment letter, the term ``in service'' applies to each pipeline
that is: transporting a regulated commodity, or that has transported a
regulated commodity and has not been abandoned during the assessment
year, October 1 through September 30. This would mean that in order to
be taken ``out of service'' a pipeline must be abandoned in accordance
with applicable pipeline safety regulations found in 49 CFR Parts 192
and 195.
B. Procedures for Correcting Previous Mileage Reported
On occasion, operators discover that they have incorrectly reported
their actual mileage or storage capacity. The operators may claim that
these errors go back several years. Because the total collected is
apportioned among all pipeline operators, a change in one operator's
amount could conceivably affect the amount owed by all other pipeline
operators. Therefore, RSPA has determined that adjustments of
assessments will only be allowed for the current assessment year.
Reporting errors must be sent in writing to the Information
Resources Manager, Research and Special Programs Administration, Office
of Pipeline Safety, room 2335, 400 Seventh Street, SW., Washington, DC
20590. Gas operators should also submit a supplemental RSPA form
7100.2-1.
C. Assessment Procedures
Under the regulations implementing 31 U.S.C. 3717, governing debts
owed to the Federal government, assessments are due 30 days after the
date of the assessment. If payment cannot be made in full within the 30
day time frame, partial payments, installments, or extensions may be
granted upon written request to the User Fee Manager, room 2335, 400
Seventh Street, SW., Washington, DC 20590. Interest, penalties, and
administrative charges will be assessed on delinquent debts.
User fees are deposited in the Pipeline Safety Fund (the Fund) and
since 1987, OPS expenditures have been made using appropriations from
the Fund. Because in prior years OPS appropriations were lower than the
Fund balance, RSPA was able to collect user fees late in each fiscal
year (FY). However, the FY 1995 appropriation exceeds the amount
currently in the Fund (approximately $17 million), and future
appropriations are likely to also exceed the amount in the Fund.
Therefore, in order for OPS to have assured funding to operate without
a shortfall later in the fiscal year, RSPA will need to collect user
fees earlier. RSPA proposes to phase in the earlier assessment over a
period of four years, as follows:
[[Page 6768]]
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Fiscal
year Date of assessment
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1995..... March 1995.
1996..... December 1995.
1997..... November 1996.
1998..... October 1997.
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D. Low Stress Pipelines
A final rule on hazardous liquid pipelines operating at 20 percent
or less of specified minimum yield strength (low stress pipelines), was
published in the Federal Register on July 12, 1994. This rule became
effective on August 11, 1994. Low Stress Pipelines include pipelines
that carry highly volatile liquids (HVL), pipelines or pipeline
segments in populated areas, and pipelines or pipeline segments in
navigable waterways. Therefore, operators must incorporate these low
stress mileage on the verification notice which were mailed to pipeline
operators on or about November 30, 1994. Onshore rural gathering
pipelines, pipelines that operate at less than 20% of SMYS (non-HVL
located outside populated areas and navigable waterways), and other
pipelines excluded from regulation by 49 CFR 195, should not be
included.
Issued in Washington, DC on January 30, 1995.
George W. Tenley, Jr.,
Associate Administrator for Pipeline Safety.
[FR Doc. 95-2672 Filed 2-2-95; 8:45 am]
BILLING CODE 4910-60-P
