98-28545. Revisions to Oil Pipeline Regulations  

  • [Federal Register Volume 63, Number 206 (Monday, October 26, 1998)]
    [Proposed Rules]
    [Pages 57081-57085]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-28545]
    
    
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    DEPARTMENT OF ENERGY
    
    Federal Energy Regulatory Commission
    
    18 CFR Parts 3, 341, 342, 343, 346, 357, 362 and 385
    
    [Docket No. RM99-1-000]
    
    
    Revisions to Oil Pipeline Regulations
    
    October 20, 1998.
    AGENCY: Federal Energy Regulatory Commission. DOE.
    
    ACTION: Notice of Proposed Rulemaking.
    
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    SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
    proposing to revise its regulations governing oil pipelines. The goals 
    of these proposed revisions are to clarify the Commission's regulations 
    and bring them up to date.
    
    DATES: Comments are due November 25, 1998.
    
    ADDRESSES: Federal Energy Regulatory Commission, 888 First Street, NE., 
    Washington, D.C. 20426.
    
    FOR FURTHER INFORMATION CONTACT: Travis R. Smith, Office of the General 
    Counsel, Federal Energy Regulatory Commission, 888 First Street, NE., 
    Washington, DC 20426, (202) 208-0696.
    
    SUPPLEMENTARY INFORMATION: In addition to publishing the full text of 
    this document in the Federal Register, the Commission also provides all 
    interested persons an opportunity to inspect or copy the contents of 
    this document during normal business hours in the Public Reference Room 
    at 888 First Street, 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 [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, NE., Washington, DC 20426.
        The Federal Energy Regulatory Commission (Commission) has reviewed 
    its regulations governing oil pipelines and has determined that various 
    provisions are either outdated or in conflict with other oil pipeline 
    regulations. Accordingly, the Commission is proposing to revise 18 CFR 
    parts 341, 342, 343, and 346 to remove these provisions. The Commission 
    is also proposing to revise 18 CFR parts 3, 357, 362, and 385. The 
    goals of these proposed revisions are to clarify the Commission's 
    regulations and bring them up to date.
    
    I. Background
    
        Jurisdiction over oil pipelines, as it relates to the establishment 
    of rates or charges for the transportation of oil by pipeline or to the 
    establishment of valuations for pipelines, was transferred from the 
    Interstate Commerce Commission (ICC) to the Commission pursuant to 
    sections 306 and 402 of the Department of Energy Organization Act (DOE 
    Act).1 At the time the DOE Act transferred jurisdiction over 
    oil pipeline rates to the Commission, the regulations governing oil 
    pipelines were located in the ICC's regulations at Title 49 of the Code 
    of Federal Regulations (CFR). Initially, the Commission ordered that 
    the regulations concerning oil pipelines remain in effect until 
    modified by the Commission. In Order No. 119,2 the 
    Commission started transferring some of the ICC's oil pipeline 
    regulations from Title 49 of the Code of Federal Regulations to the 
    Commission's regulations in Title 18. parts 357 3 and 362 
    4 were among some of the Commission's current regulations 
    that were adopted from this initial transfer. In Order No. 
    225,5 the Commission adopted the ICC's rules pertaining to 
    paper hearings called the ``modified procedure,'' currently codified at 
    18 CFR sections 385.1404 through 385.1414, and to ex parte 
    communications, presently located at 18 CFR 385.1415, from 49 CFR part 
    1100. Also, pursuant to Order No. 225, the Commission moved all of its 
    Rules of Practice and Procedure from 18 CFR part 1 to 18 CFR part 385. 
    Notwithstanding some limited revisions, most of the provisions in parts 
    357, 362, and 385 are the same as they were in Title 49.
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        \1\ Department of Energy Organization Act, 42 U.S.C. 7155 and 
    7172(b) (1988).
        \2\ Regulation of Interstate Oil Pipelines, Order No. 119, 46 FR 
    9043 (January 28, 1981), FERC Stats. & Regs. (Regulations Preambles, 
    1977-1981) para. 30,226 (May 5, 1981).
        \3\ Part 357 addresses the annual special or periodic reports 
    that carriers subject to Part I of the Interstate Commerce Act are 
    required to file.
        \4\ Part 362 sets forth the various requirements for valuation.
        \5\ Revisions of Rules of Practice and Procedure to Expedite 
    Trial-Type Hearings, Order No. 225, 47 FR 19014 (May 3, 1982), FERC 
    Stats. & Regs. (Regulations Preambles, 1982-1985) para. 30,358 
    (January 18, 1983).
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        The Energy Policy Act of 1992 (Act of 1992) required the Commission 
    to promulgate new regulations to provide a simplified and generally 
    applicable ratemaking methodology for oil pipelines, and to streamline 
    its procedures in oil pipeline proceedings.6
    
    [[Page 57082]]
    
    Pursuant to Congress' directive in the Act of 1992, the Commission 
    issued Order No. 561 7 and two companion rulemakings, Order 
    Nos. 571 8 and 572.9 In Order No. 561, the 
    Commission established a simplified and generally applicable way for 
    oil pipelines to change their rates and also provided alternatives to 
    this methodology. In Order No. 571, the Commission addressed a cost-of-
    service rate filing alternative for oil pipelines. In Order No. 572, 
    the Commission addressed market-based rates for oil pipelines. These 
    rulemakings also included new rate filing requirements and procedural 
    reforms to reflect the new ratemaking methodologies, and streamlined 
    the Commission's internal processes for oil pipelines.
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        \6\ The Energy Policy Act of 1992 (Act of 1992) contemplated two 
    rulemakings--one on ratemaking methodology and another on 
    streamlined procedures--and established separate deadlines for their 
    completion. Energy Policy Act of 1992 Pub. L. 102-46, Title XVIII, 
    1801 to 1804, 106 Stat. 2776, 3010-3011 (codified as 42 U.S.C.A. 
    7172 note (West Supp. 1995)).
        \7\ Revisions to Oil Pipeline Regulations pursuant to Energy 
    Policy Act of 1992, Order No. 561, 58 FR 58753 (November 4, 1993), 
    FERC Stats. & Regs. (Regulations Preambles, 1991-1996) para. 30,985 
    (October 22, 1993), order on rehearing and clarification, Order No. 
    561-A, 59 FR 40243 (August 8, 1994) FERC Stats. & Regs. (Regulations 
    Preambles, 1991-1996) para. 31,000 (July 28, 1994).
        \8\ Cost-of-Service Reporting and Filing Requirements for Oil 
    Pipelines, Order No. 571, 59 FR 59137 (November 16, 1994) FERC 
    Stats. & Regs. (Regulations Preambles, 1991-1996) para. 31,006 
    (October 28, 1994), order on hearing and clarification, Order No. 
    571-A, 60 FR 356 (January 4, 1995) FERC Stats. & Regs. (Regulations 
    Preambles, 1991-1996) para. 31,012 (December 28, 1994).
        \9\ Market-Based Ratemaking for Oil Pipelines, Order No. 572, 59 
    FR 59148 (November 16, 1994), FERC Stats. & Regs. (Regulations 
    Preambles, 1991-1996) para. 31,007 (October 28, 1994), order denying 
    rehearing, Order No. 572-A, 69 FERC para. 61,412 (December 28, 
    1994).
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        At the time the Commission adopted changes to its ratemaking 
    methodologies and procedural requirements, it intended that its new 
    regulations would supersede existing procedural rules that were in 
    conflict and do away with those that were no longer necessary, such as 
    those describing the modified procedure. The final rules, however, did 
    not take steps to remove these outdated regulations. As a result, the 
    current Commission regulations governing oil pipelines include both 
    recent provisions adopted or modified pursuant to the Act of 1992 and 
    conflicting regulations adopted from the ICC which have been superseded 
    and thus are inconsistent. Consequently, the Commission is proposing to 
    revise 18 CFR parts 341, 342, 343, and 346 to remove outdated and 
    conflicting regulations. The Commission is also proposing to revise 18 
    CFR parts 3, 357, 362, and 385 to conform them to the other proposed 
    changes.
    
    II. Public Reporting Burden
    
        The Commission believes that there will be no impact on the public 
    reporting burden from the elimination of outdated and nonessential 
    regulations, and the related modification of other regulations. Because 
    the regulations being removed are outdated, they effectively ceased 
    being a reporting burden years ago. As for the regulations being 
    modified, they are simply clarifying, not augmenting, reporting 
    requirements.
    
    III. Discussion
    
    A. Part 341
    
        Part 341 relates to the requirements for preparing, filing, and 
    withdrawing oil pipeline tariffs. Section 341.6(3) pertains to the 
    rules for partial adoption by a carrier of another carrier's tariffs. 
    The Commission proposes to amend this section by removing duplicative 
    language from the provision which now requires a carrier to state the 
    effective date of an adoption notice twice in a tariff supplement 
    required to be filed with the Commission.
        Section 341.7 addresses the requirements for concurrences. The 
    Commission is proposing a modification of this section to specify the 
    information that should be included in letters of transmittal 
    accompanying the filing of a tariff publication containing a joint 
    carrier. Under the proposed revision, letters of transmittal would be 
    required to include the address, phone number, and contact for each 
    joint carrier listed in the tariff publication. This is information 
    that the Commission, as a routine matter, has required carriers to 
    submit. Including it as part of the regulations will inform carriers 
    that such information must be included with their filings and make it 
    unnecessary for carriers to supplement their filings later.
    
    B. Part 342
    
        Part 342 pertains to the methods that may be used to establish 
    initial rates, or change existing rates. To be more specific, 
    Sec. 342.3 discusses rate changes under the indexing methodology. 
    Section 342.3(b)(1) currently provides:
    
        Carriers must specify in their letters of transmittal required 
    in Sec. 341.2(c) of this chapter the rate schedule to be changed, 
    the proposed new rate, the prior rate, and the applicable ceiling 
    level for the movement. No other rate information is required to 
    accompany the proposed rate change.
    
        Under the proposed revisions in this Notice of Proposed Rulemaking 
    (NOPR), this section would require carriers filing for rate changes to 
    also include the prior rate ceiling level, in addition to the other 
    information specified, in their letters of transmittal. It is the 
    Commission's position that including the prior ceiling level will 
    provide necessary information for the calculation of the index ceiling 
    levels.
        Section 342.3(b)(2) addresses the information required to be filed 
    by carriers with their initial rate changes. It currently reads as 
    follows:
    
        On March 31, 1995, or concurrently with its first indexed rate 
    change filing made on or after January 1, 1995, whichever first 
    occurs, carriers must file a verified copy of a schedule for 
    calendar years 1993 and 1994 containing the information required by 
    page 700 of the 1995 edition of FERC Form No. 6. If actual data are 
    not available for calendar year 1994 when the rate change filing is 
    made, the information for calendar year 1994 must be comprised of 
    the most recently available actual data annualized for the year 
    1994. A schedule containing the information comprised of actual data 
    for calendar year 1994 must be filed not later than March 31, 1995. 
    Thereafter, carriers must file page 700 as a part of their annual 
    Form No. 6 filing.
    
        This section directs carriers to file schedules containing the 
    information required by page 700 of the 1995 edition of FERC Form No. 
    6. on March 31, 1995, or concomitantly with its first indexed rate 
    change filing made on or after January 1, 1995, whichever occurs first. 
    Because the one-time need for the requirements of this section has 
    passed, the Commission proposes to delete it in its entirety.
        Section 342.3(d)(3) states that a carrier must compute its ceiling 
    level each index year without regard to the rates filed pursuant to 
    this section. In Kaneb and subsequent proceedings,10 the 
    Commission explained that because there are numerous pipelines that 
    file rates measured in hundredths of a cent, all ceiling level 
    calculations for all pipelines should be rounded 11 to the 
    nearest hundredth of a cent, i.e., to two decimal places. As this 
    explanation applies to all calculations by all carriers under 
    Sec. 342.3, the Commission proposes to add this explanation to the 
    regulations to assist carriers in making accurate and complete filings.
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        \10\ Kaneb Pipeline Operating Partnership, L.P., 71 FERC para. 
    61,409 (1995).
        \11\ If the third decimal place number is five or more, the 
    second decimal number should be rounded up; if the third decimal 
    place number is four or less, the second decimal place number should 
    be rounded down. Kaneb Pipeline. 71 FERC para. 61,409 (1995), at p. 
    62,617. n.6.
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    C. Part 343
    
        Part 343 discusses procedural matters related to oil pipeline 
    proceedings under part 342. Section 343.2 describes
    
    [[Page 57083]]
    
    the requirements for filing interventions, protests, and complaints. 
    The Commission is proposing to correct Sec. 343.2(c)(4) so that it 
    references paragraphs (c)(1), (2), or (3) within the section, rather 
    than paragraphs (b)(1), (2), or (3) as at present.
    
    D. Part 346
    
        Part 346 sets forth the filing requirements for oil pipelines that 
    seek to establish cost-of-service rates as permitted under part 342. 
    Section 346.2(c)(7) states in part: ``If the presently effective rates 
    are not at the maximum ceiling rate established under Sec. 342.4(a) of 
    this chapter, then gross revenues must also be computed and set forth 
    as if the ceiling rates were effective for the 12 month period.'' Under 
    the proposed revisions in this NOPR, Sec. 346.2(c)(7) would be revised 
    to correctly reference Sec. 342.3, which is the section that sets forth 
    the indexing methodology, rather than Sec. 342.4(a), which describes 
    cost-of-service rates.
    
    E. Part 357
    
        Part 357 concerns the annual special or periodic reports that 
    carriers subject to Part I of the Interstate Commerce Act are required 
    to file. Sec. 357.3(a), (b), and (c) discuss the filing requirements 
    for FERC Form No. 73. In Order No. 561, the Commission stated that it 
    would be the oil pipeline carriers' responsibility in the future to 
    perform depreciation studies to establish revised depreciation rates 
    for oil pipelines. The specific requirements for such studies were 
    adopted as part 347 of the Commission's regulations in Order No. 571. 
    Section 347.1(e)(5)(x) provides that a carrier must submit a Service 
    Life Data Form (FERC Form No. 73) if the proposed depreciation rate 
    adjustment is based on the remaining physical life of the properties. 
    The Commission is proposing that Sec. 357.3(a) and (b), which address 
    who must file FERC Form No. 73 and when the form must be submitted, be 
    revised to include filings under Sec. 347.1(e)(5)(x). The Commission 
    also proposes to revise Sec. 357.3(c) to update its mailing address.
    
    F. Part 362
    
        Part 362 sets forth the various requirements for valuation. Part 
    362 came into being as a result of Order No. 119,12 which 
    transferred the ICC's valuation section, in addition to several other 
    sections pertaining to oil pipelines, from its regulations located at 
    Title 49 of the Code of Federal Regulations to the Commission's 
    regulations at Title 18. In Opinion No. 154,13 the 
    Commission intimated that it was considering abandoning the traditional 
    ICC valuation formula; however, the Commission ultimately retained the 
    valuation methodology. To the contrary, in Opinion No. 154-
    B,14 the Commission adopted a methodology that is currently 
    used in many oil pipeline rate cases. This new methodology is 
    predicated on a trended original cost (TOC) rate base and it does not 
    follow the ICC's historic valuation rate base. Because Opinion No. 154-
    B rejects the valuation rate base methodology and thus eliminates the 
    need for any valuation of oil pipelines, the filing of valuation 
    reports as now required by part 362 is no longer necessary. As a 
    result, the Commission is proposing to remove part 362 in its entirety 
    from its regulations. Order No. 561 removed parts 360 and 361 
    pertaining to reporting of data for valuation purposes. The proposal 
    here would complete the task of removing unnecessary valuation 
    regulations.
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        \12\ Regulation of Interstate Oil Pipelines, Order No. 119, 46 
    FR 9043 (January 28, 1981), FERC Stats. & Regs. (Regulations 
    Preambles, 1977-1981) para. 30,226 (May 5, 1981).
        \13\ Farmers Union Central Exchange, Inc. v. FERC, 734 F.2d 1486 
    (D.C. Cir. 1984), cert. denied sub nom., Williams Pipeline Company 
    v. Farmers Union Central Exchange, Inc., 105 S.Ct. 507 (1984). The 
    Commissions's opinion appears at 21 FERC para. 61,260 (1982), 
    rehearing denied, 21 FERC para. 61,086 (1983).
        \14\ Williams Pipeline Company, 31 FERC para. 61,377 (1985).
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    G. Part 385
    
        Part 385 governs the Commission's rules of practice and procedure. 
    Section 385.101(b)(3) excepts ICC rules from Part 385 in cases where 
    regulations in the Commission's Rules of Practice and Procedure are 
    inconsistent with ICC rules that were not replaced by a Commission rule 
    or order. Because the Commission has promulgated and codified its own 
    rules governing oil pipelines, this section has become unnecessary; 
    therefore, the Commission proposes to remove this section from its 
    Rules of Practice and Procedure. Section 385.102(a), which defines 
    ``decisional authority'' refers to authority or responsibility under 
    ``49 CFR Chapter X.'' As this is a reference to ICC regulations which 
    have been replaced, the Commission proposes the removal of this 
    section.
        Section 385.1403 discusses the filing requirements for protests to 
    tariff filings. This section is inconsistent with, and has been 
    superseded by, Sec. 343.3, which was adopted in Order No. 561. 
    Accordingly, the Commission proposes to delete Sec. 385.1403 from the 
    Commission's rules of practice and procedure.
        Penultimately, Secs. 385.1405 through 385.1414 set out the modified 
    procedure rules for oil pipeline proceedings. Specifically, the 
    Commission can order a proceeding to be heard under a modified 
    procedure if it appears that substantially all important issues of fact 
    may be resolved by means of written materials without an oral hearing. 
    These rules were adopted from the ICC's procedural regulations, 49 CFR 
    part 1100, pursuant to Order No. 225.15 The regulations 
    concerning the modified procedure have been superseded by, and are in 
    conflict with, procedures and filing requirements in parts 342, 343, 
    346, and 347 adopted in Order Nos. 561, 571, and 572. The Commission 
    will continue to use paper hearing procedures in individual cases where 
    warranted. These procedures, however, are not used frequently enough to 
    warrant continuing to include them in the regulations. Consequently, 
    the Commission proposes to remove these regulations from the rules of 
    practice and procedure. Since the Commission is proposing to remove the 
    modified procedure rules, this NOPR is also proposing to remove 
    Sec. 385.101(b)(4)(i) because it excepts Secs. 385.1404 through 1414 
    from Part 385.
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        \15\ Revisions of Rules of Practice and Procedure to Expedite 
    Trial-Type Hearings, Order No. 225, 47 FR 19014 (May 3, 1982), FERC 
    Stats. & Regs. (Regulations Preambles, 1982-1985) ] 30,358 (January 
    18, 1983).
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        Finally, some of the Commission's regulations still contain 
    references to the now defunct Oil Pipeline Board. Section 385.102, the 
    definitions section, contains Oil Pipeline Board references in 
    paragraphs (a) and (e)(2). Part 3 pertains to organization, operation, 
    information and requests. Section 385.502(a)(3), rules concerning the 
    initiation of a hearing, contains an Oil Pipeline Board reference. 
    Section 385.1902, rules for appealing staff action, also makes 
    reference to the Oil Pipeline Board. Due to the fact that the 
    Commission abolished the Oil Pipeline Board in Order No. 561, the 
    Commission is proposing to revise the foregoing sections by removing 
    all references to the Oil Pipeline Board.
    
    IV. Environmental Analysis
    
        The Commission is required to prepare an Environmental Assessment 
    or an Environmental Impact Statement for any action that may have a 
    significant adverse effect on the human environment.16 The 
    Commission has categorically excluded certain actions
    
    [[Page 57084]]
    
    from these requirements as not having a significant effect on the human 
    environment.17 The action proposed here is procedural in 
    nature and therefore falls within the categorical exclusions provided 
    in the Commission's regulations.18 Therefore, neither an 
    Environmental Impact Statement nor an Environmental Assessment is 
    necessary and will not be prepared in this rulemaking.
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        \16\ Order No. 486, Regulations Implementing the National 
    Environmental Policy Act, 52 FR 47897 (December 17, 1987), FERC 
    Stats. & Regs. (Regulations Preambles, 1986-1990) para. 30,783 
    (1987).
        \17\ 18 CFR 380.4 (1998).
        \18\ 18 CFR 380.4(a)(2)(ii)(1998).
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    V. Regulatory Flexibility Act Certification
    
        The Regulatory Flexibility Act 19 generally requires the 
    Commission to describe the impact that a proposed rule would have on 
    small entities or to certify that the rule will not have a significant 
    economic impact on a substantial number of small entities. The 
    Commission certifies that promulgating this rule does not represent a 
    major federal action having a significant economic impact on a 
    substantial number of small entities. Therefore, no regulatory 
    flexibility analysis is required.
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        \19\ 5 U.S.C. 601-612 (1988).
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    VI. Information Collection Statement
    
        Office of Management and Budget (OMB) regulations 20 
    require that OMB approve certain information collection requirements 
    imposed by agency rule. Since this rule does not impose new regulations 
    and has no impact on current information collections, there is no need 
    to obtain OMB approval as to the deletion and modification of these 
    regulations. Nevertheless, the Commission is submitting a copy of the 
    proposed rule to the OMB for informational purposes. Interested persons 
    may obtain information on these reporting requirements by contacting 
    the Federal Energy Regulatory Commission, 888 First Street, NE, 
    Washington, DC 20426 (Attention Michael Miller, Office of the Chief 
    Information Officer, (202) 208-1415). Comments on the requirements of 
    this rule can be sent to the Office of Information and Regulatory 
    Affairs of OMB (Attention: Desk Officer for Federal Energy Regulatory 
    Commission), 725 17th Street, NW, Washington, DC 20503, Phone: (202) 
    395-3087 Fax: (202) 395-5167.
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        \20\ 5 CFR part 1320 (1998).
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    VII. Comment Procedures
    
        Copies of this notice of proposed rulemaking can be obtained from 
    the Public Reference and Files Maintenance Branch, Room 2-A, 888 First 
    Street, NE, Washington, DC 20426. Any person desiring to file comments 
    should submit an original and fourteen (14) copies of such comments to 
    the Federal Energy Regulatory Commission, 888 First Street, NE, 
    Washington, DC 20426, not later than November 25, 1998.
        All written comments will be placed in the Commission's public 
    files and will be available for public inspection in the Commission's 
    Public Reference Room at 888 First Street, NE, Washington, DC 20426, 
    during regular business hours.
    
    List of Subjects
    
    18 CFR Part 3
    
        Organization and functions (Government agencies).
    
    18 CFR Part 341
    
        Maritime carriers, Pipelines, Reporting and recordkeeping 
    requirements.
    
    18 CFR Part 342
    
        Pipelines, Reporting and recordkeeping requirements.
    
    18 CFR Part 343
    
        Pipelines, Reporting and recordkeeping requirements.
    
    18 CFR Part 346
    
        Pipelines, Reporting and recordkeeping requirements.
    
    18 CFR Part 357
    
        Pipelines, Reporting and recordkeeping requirements, Uniform System 
    of Accounts.
    
    18 CFR Part 362
    
        Pipelines, Reporting and recordkeeping requirements.
    
    18 CFR Part 385
    
        Administrative practice and procedure, Electric power, Penalties, 
    Pipelines, Reporting and recordkeeping requirements.
    
        By direction of the Commission.
    David P. Boergers,
    Secretary.
    
        In consideration of the foregoing, the Commission proposes to amend 
    parts 3, 341, 342, 343, 346, 357, 362, and 385, Chapter I, Title 18, 
    Code of Federal Regulations, as set forth below.
    
    PART 3--ORGANIZATION; OPERATION; INFORMATION AND REQUESTS
    
        1. The authority citation for part 3 continues to read as follows:
    
        Authority: Department of Energy Organization Act, 42 U.S.C. 
    7101-7352 (1982); E.O. 12009, 3 CFR 1978 Comp., p. 142 (1978); 
    Administrative Procedure Act, 5 U.S.C. 551-557 (1982); Natural Gas 
    Act, 15 U.S.C. 717-717z (1982); Federal Power Act, 16 U.S.C. 791a-
    828c (1982); Natural Gas Policy Act, 15 U.S.C. 3301-3432 (1982); 
    Public Utility Regulatory Policies Act, 16 U.S.C. 2601-2645 (1982); 
    Interstate Commerce Act, 49 U.S.C. 1-27 (1976); Freedom of 
    Information Act, 5 U.S.C. 552 (1982) as amended by Freedom of 
    Information Reform Act of 1986.
    
    
    Sec. 3.4  [Removed and Reserved]
    
        2. Section 3.4 is removed and reserved.
    
    PART 341--OIL PIPELINE TARIFFS: OIL PIPELINE COMPANIES SUBJECT TO 
    SECTION 6 OF THE INTERSTATE COMMERCE ACT
    
        3. The authority citation for Part 341 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 1-27.
    
        4. Section 341.6 is amended by revising paragraph (d)(3) to read as 
    follows:
    
    
    Sec. 341.6  Adoption Rule.
    
    * * * * *
        (d) * * *
        (3) The former owner must immediately file a consecutively numbered 
    supplement to each of its tariffs covered by the adoption notice, 
    reading as follows:
    
        Effective [date of adoption notice] this tariff became the 
    tariff of [legal name of adopting carrier] for transportation 
    movements [identify origin and destination points], as per its 
    adoption notice FERC No. [number].
    * * * * *
        5. Section 341.7 is revised to read as follows:
    
    
    Sec. 341.7  Concurrences.
    
        Concurrences must be maintained at carriers' offices and produced 
    upon request. Cancellations or changes to concurrences affecting FERC 
    Tariffs must be shown in those tariffs. Carriers must provide to the 
    Commission, in the letter of transmittal accompanying the filing of a 
    tariff publication containing a joint carrier, the address, phone 
    number, and a contact for each joint carrier listed in the tariff 
    publication.
    
    PART 342--OIL PIPELINE RATE METHODOLOGIES AND PROCEDURES
    
        6. The authority citation for part 342 continues to read as 
    follows:
    
        Authority: 5 U.S.C. 571-583; 42 U.S.C. 7101-7532; 49 U.S.C. 
    60502; 49 App. U.S.C. 1-85.
    
        7. Section 342.3 is amended by removing paragraph (b)(2), 
    redesignating
    
    [[Page 57085]]
    
    paragraph (b)(1) as paragraph (b), and revising redesignated paragraph 
    (b) and paragraph (d)(3) to read as follows:
    
    
    Sec. 342.3  Indexing.
    
    * * * * *
        (b) Information required to be filed with rate changes. The carrier 
    must comply with part 341 of this chapter. Carriers must specify in 
    their letters of transmittal required in Sec. 341.2(c) of this chapter 
    the rate schedule to be changed, the proposed new rate, the prior rate, 
    the prior ceiling level, and the applicable ceiling level for the 
    movement. No other rate information is required to accompany the 
    proposed rate change.
        (c) * * *
        (d) * * *
        (3) A carrier must compute the ceiling level each index year 
    without regard to the actual rates filed pursuant to this section. All 
    carriers must round their ceiling levels each index year to the nearest 
    hundredth of a cent.
    * * * * *
    
    PART 343--PROCEDURAL RULES APPLICABLE TO OIL PIPELINE PROCEEDINGS
    
        8. The authority citation for part 343 continues to read as 
    follows:
    
        Authority: 5 U.S.C. 571-583; 42 U.S.C. 7101-7352; 49 U.S.C. 
    60502; 49 App. U.S.C. 1-85.
    
        9. Section 343.2 is amended by revising paragraph (c)(4) to read as 
    follows:
    
    
    Sec. 343.2  Requirements for filing interventions, protests and 
    complaints.
    
    * * * * *
        (c) * * *
        (4) A protest or complaint that does not meet the requirements of 
    paragraphs (c)(1), (c)(2), or (c)(3) of this section, whichever is 
    applicable, will be dismissed.
    
    PART 346--OIL PIPELINE COST-OF-SERVICE FILING REQUIREMENTS
    
        10. The authority citation for part 346 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C. 
    1-85.
    
        11. Section 346.2 is amended by revising paragraph (c)(7) to read 
    as follows:
    
    
    Sec. 346.2  Material in support of initial rates or change in rates.
    
    * * * * *
        (c) * * *
        (7) Statement G--revenues. This statement must set forth the gross 
    revenues for the actual 12 months of experience as computed under both 
    the presently effective rates and the proposed rates. If the presently 
    effective rates are not at the maximum ceiling rate established under 
    Sec. 342.3 of this chapter, then gross revenues must also be computed 
    and set forth as if the ceiling rates were effective for the 12 month 
    period.
    
    PART 357--ANNUAL SPECIAL OR PERIODIC REPORTS: CARRIERS SUBJECT TO 
    PART I OF THE INTERSTATE COMMERCE ACT
    
        12. The authority citation for part 357 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C. 
    1-85.
    
        13. Section 357.3 is revised to read as follows:
    
    
    Sec. 357.3  FERC Form No. 73, oil pipeline data for depreciation 
    analysis.
    
        (a) Who must file. Any oil pipeline company requesting new or 
    changed depreciation rates pursuant to part 347 of this chapter if the 
    proposed depreciation rates are based on the remaining physical life of 
    the properties or if directed by the Commission to file service life 
    data during an investigation of its book depreciation rates.
        (b) When to submit. Service life data is reported to the Commission 
    by an oil pipeline company, as necessary, concurrently with a filing 
    made pursuant to part 347 of this chapter and as directed during a 
    depreciation rate investigation.
        (c) What to submit. The format and data which must be submitted are 
    prescribed in FERC Form No. 73, Oil Pipeline Data for Depreciation 
    Analysis, available for review at the Commission's Public Reference 
    Section, Room 2A, 888 First Street, NE, Washington, D.C. 20426.
    
    PART 362--[REMOVED AND RESERVED]
    
        14. Part 362 is removed in its entirety and reserved.
    
    PART 385--RULES OF PRACTICE AND PROCEDURE
    
        15. The authority citation for part 385 continues to read as 
    follows:
    
        Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16 
    U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42 U.S.C. 7101-7352; 49 
    U.S.C. 60502; 49 App. U.S.C. 1-85.
    
    
    Sec. 385.101  [Amended]
    
        16. Section 385.101 is amended by removing paragraphs (b)(3) and 
    (b)(4)(i), and redesignating paragraph (b)(4)(ii) as paragraph (b)(3).
        17. Section 385.102 is amended by revising paragraphs (a) and 
    (e)(2) to read as follows:
    
    
    Sec. 385.102  Definitions (Rule 102).
    
        (a) Decisional authority means the Commission or Commission 
    employee that at the time for decision on a question, has authority or 
    responsibility under this chapter to decide that particular question.
    * * * * *
        (e) * * *
        (2) With respect to any proceeding not set for hearing under 
    subpart E of this part, any employee designated by rule or order to 
    conduct the proceeding.
    * * * * *
        18. Section 385.502 is amended by removing paragraph (a)(3) and 
    revising paragraph (a)(1) to read as follows:
    
    
    Sec. 385.502  Initiation of hearing (Rule 502).
    
        (a) * * *
        (1) Order of the Commission; or
    * * * * *
        19. Sections 385.1403 and 385.1405 through 385.1414 are removed and 
    sections 385.1404 and 385.1415 are redesignated paragraphs 385.1403 and 
    385.1404.
        20. Section 385.1902 is amended by removing paragraph (b), 
    redesignating paragraph (c) as paragraph (b), and revising paragraph 
    (a) to read as follows:
    
    
    Sec. 385.1902  Appeals from action of staff (Rule 1902).
    
        (a) Any staff action (other than a decision or ruling of presiding 
    officer, as defined in Rule 102(e)(1), made in a proceeding set for 
    hearing under subpart E of this part) taken pursuant to authority 
    delegated to the staff by the Commission is a final agency action that 
    is subject to a request for rehearing under Rule 713 (request for 
    rehearing).
    * * * * *
    [FR Doc. 98-28545 Filed 10-23-98; 8:45 am]
    BILLING CODE 6717-01-P
    
    
    

Document Information

Published:
10/26/1998
Department:
Federal Energy Regulatory Commission
Entry Type:
Proposed Rule
Action:
Notice of Proposed Rulemaking.
Document Number:
98-28545
Dates:
Comments are due November 25, 1998.
Pages:
57081-57085 (5 pages)
Docket Numbers:
Docket No. RM99-1-000
PDF File:
98-28545.pdf
CFR: (13)
49 CFR 385.101(b)(4)(i)
18 CFR 3.4
18 CFR 341.6
18 CFR 341.7
18 CFR 342.3
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