[Federal Register Volume 81, Number 55 (Tuesday, March 22, 2016)]
[Rules and Regulations]
[Pages 15156-15159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06288]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 157
[Docket No. RM96-1-038]
Standards for Business Practices of Interstate Natural Gas
Pipelines; Correction
AGENCY: Federal Energy Regulatory Commission.
ACTION: Correcting amendments.
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SUMMARY: This document contains corrections to the final rule that was
published in the Federal Register on Monday, November 2, 2015 (Order
No. 587-W). These revisions correct an instruction error and reinstate
the regulations describing the exhibits required to be attached to each
certificate application by interstate natural gas pipelines. This
document corrects that omission.
DATES: Effective March 22, 2016.
FOR FURTHER INFORMATION CONTACT: Gary D. Cohen (legal issues), Office
of the General Counsel, Federal Energy Regulatory Commission, 888 First
Street NE., Washington, DC 20426, Telephone: (202) 502-8321, Email:
[email protected].
SUPPLEMENTARY INFORMATION: The Commission published a document in the
Federal Register on Monday, November 2, 2015 (80 FR 67302), that
omitted a portion of 18 CFR 157.14(a) describing the exhibits required
to be submitted in certificate applications by interstate natural gas
pipelines. This correction restores that text to the regulation. In
addition, due to style requirements, 18 CFR 157.14(a)(6-a) has been
redesignated as 157.14(a)(7) and subsequent provisions have been
redesignated accordingly.
List of Subjects in 18 CFR Part 157
Natural gas, Reporting and recordkeeping requirements.
Dated: March 14, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
In consideration of the foregoing, the Commission amends part 157,
chapter I, title 18, Code of Federal Regulations, as follows.
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
0
1. The authority citation for part 157 continues to read as follows:
Authority: 15 U.S.C. 717-717z.
0
2. Section 157.14 is amended by adding paragraphs (a)(1) through (19)
to read as follows:
Sec. 157.14 Exhibits.
(a) * * *
(1) Exhibit A--Articles of incorporation and bylaws. If applicant
is not an individual, a conformed copy of its articles of incorporation
and bylaws, or other similar documents.
(2) Exhibit B--State authorization. For each State where applicant
is authorized to do business, a statement showing the date of
authorization, the scope of the business applicant is authorized to
carry on and all limitations, if any, including expiration dates and
renewal obligations. A conformed copy of applicant's authorization to
do business in each State affected shall be supplied upon request.
(3) Exhibit C--Company officials. A list of the names and business
addresses of applicant's officers and directors, or similar officials
if applicant is not a corporation.
(4) Exhibit D--Subsidiaries and affiliation. If applicant or any of
its officers or directors, directly or indirectly, owns, controls, or
holds with power to vote, 10 percent or more of the outstanding voting
securities of any other person or organized group of persons engaged in
production, transportation, distribution, or sale of natural gas, or of
any person or organized group of persons engaged in the construction or
financing of such enterprises or operations, a detailed explanation of
each such relationship, including the percentage of voting strength
represented by such ownership of securities. If any person or organized
group of persons, directly or indirectly, owns, controls, or holds with
power to vote, 10 percent or more of the outstanding voting securities
of applicant--a detailed explanation of each such relationship.
(5) Exhibit E--Other pending applications and filings. A list of
other applications and filings under sections 1, 3, 4 and 7 of the
Natural Gas Act filed by the applicant which are pending before the
Commission at the time of the filing of an application and which
directly and significantly affect the application filed, including an
explanation of any material effect the grant or denial of those other
applications and filings will have on the application and of any
material effect the grant or denial of the application will have on
those other applications and filings.
(6) Exhibit F--Location of facilities. Unless shown on Exhibit G or
elsewhere, a geographical map of suitable scale and detail showing, and
appropriately differentiating between all of the facilities proposed to
be constructed, acquired or abandoned and existing facilities of
applicant, the operation or capacity of which will be directly affected
by the proposed facilities or the facilities proposed to be abandoned.
This map, or an additional map, shall clearly show the relationship of
the new facilities to the applicant's overall system and shall include:
(i) Location, length, and size of pipelines.
(ii) Location and size (rated horsepower) of compressor stations.
[[Page 15157]]
(iii) Location and designation of each point of connection of
existing and proposed facilities with:
(A) Main-line industrial customers, gas pipeline or distribution
systems, showing towns and communities served and to be served at
wholesale and retail, and
(B) Gas-producing and storage fields, or other sources of gas
supply.
(7) Exhibit F-I--Environmental report. An environmental report as
specified in Sec. Sec. 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.
(8) Exhibit G--Flow diagrams showing daily design capacity and
reflecting operation with and without proposed facilities added. A flow
diagram showing daily design capacity and reflecting operating
conditions with only existing facilities in operation. A second flow
diagram showing daily design capacity and reflecting operating
conditions with both proposed and existing facilities in operation.
Both flow diagrams shall include the following for the portion of the
system affected:
(i) Diameter, wall thickness, and length of pipe installed and
proposed to be installed and the diameter and wall thickness of the
installed pipe to which connection is proposed.
(ii) For each proposed new compressor station and existing station,
the size, type and number of compressor units, horsepower required,
horsepower installed and proposed to be installed, volume of gas to be
used as fuel, suction and discharge pressures, and compression ratio.
(iii) Pressures and volumes of gas at the main line inlet and
outlet connections at each compressor station.
(iv) Pressures and volumes of gas at each intake and take-off point
and at the beginning and terminus of the existing and proposed
facilities and at the intake or take-off point of the existing
facilities to which the proposed facilities are to be connected.
(9) Exhibit G-I--Flow diagrams reflecting maximum capabilities. If
Exhibit G does not reflect the maximum deliveries which applicant's
existing and proposed facilities would be capable of achieving under
most favorable operating conditions with utilization of all facilities,
include an additional diagram or diagrams to depict such maximum
capabilities. If the horsepower, pipelines, or other facilities on the
segment of applicant's system under consideration are not being fully
utilized due, e.g., to capacity limitation of connecting facilities or
because of the need for standby or spare equipment, the reason for such
nonutilization shall be stated.
(10) Exhibit G-II--Flow diagram data. Exhibits G and G-I shall be
accompanied by a statement of engineering design data in explanation
and support of the diagrams and the proposed project, setting forth:
(i) Assumptions, bases, formulae, and methods used in the
development and preparation of such diagrams and accompanying data.
(ii) A description of the pipe and fittings to be installed,
specifying the diameter, wall thickness, yield point, ultimate tensile
strength, method of fabrication, and methods of testing proposed.
(iii) When lines are looped, the length and size of the pipe in
each loop.
(iv) Type, capacity, and location of each natural gas storage field
or facility, and of each dehydration, desulphurization, natural gas
liquefaction, hydrocarbon extraction, or other similar plant or
facility directly attached to the applicant's system, indicating which
of such plants are owned or operated by applicant, and which by others,
giving their names and addresses.
(v) If the daily design capacity shown in Exhibit G is predicated
upon an ability to meet each customer's maximum contract quantity on
the same day, explain the reason for such coincidental peak-day design.
If the design day capacity shown in Exhibit G is predicated upon an
assumed diversity factor, state that factor and explain its derivation.
(vi) The maximum allowable operating pressure of each proposed
facility for which a certificate is requested, as permitted by the
Department of Transportation's safety standards. The applicant shall
certify that it will design, install, inspect, test, construct,
operate, replace, and maintain the facilities for which a certificate
is requested in accordance with Federal safety standards and plans for
maintenance and inspection or shall certify that it has been granted a
waiver of the requirements of the safety standards by the Department of
Transportation in accordance with the provisions of section 3(e) of the
Natural Gas Pipeline Safety Act of 1968. Pertinent details concerning
the waiver shall be set forth.
(11) Exhibit H--Total gas supply data. A statement by applicant
describing:
(i) Those production areas accessible to the proposed construction
that contain sufficient existing or potential gas supplies for the
proposed project; and
(ii) How those production areas are connected to the proposed
construction.
(12) Exhibit I--Market data. A system-wide estimate of the volumes
of gas to be delivered during each of the first 3 full years of
operation of the proposed service, sale, or facilities and during the
years when the proposed facilities are under construction, and actual
data of like import for each of the 3 years next preceding the filing
of the application, together with:
(i) Names and locations of customer companies and municipalities,
showing the number of residential, commercial, firm industrial,
interruptible industrial, residential space-heating, commercial space-
heating, and other types of customers for each distribution system to
be served at retail or wholesale; and the names and locations of each
firm and interruptible direct industrial customer whose estimated
consumption totals 10,000 Mcf or more in any calendar month or 100,000
Mcf or more per year together with an explanation of the end use to
which each of these industrial customers will put the gas.
(ii) Applicant's total annual and peak day gas requirements by
classification of service in paragraph (a)(11)(i) of this section,
divided as follows: Gas requirements for each distribution area where
gas is sold by applicant at retail; for each wholesale customer; for
all main line direct industrial customers; and company use and
unaccounted-for gas, for both the applicant and each wholesale
customer.
(iii) Total past and expected curtailments of service by the
applicant and each wholesale customer proposing to receive new or
additional supplies of gas from the project, all to be listed by the
classifications of service in paragraph (a)(12)(i) of this section.
(iv) Explanation and derivation of basic factors used in estimating
future requirements, including, for example: Peak-day and annual
degree-day deficiencies, annual load factors of applicant's system and
of its deliveries to its proposed customers; individual consumer peak-
day and annual consumption factors for each class of consumers, with
supporting historical data; forecasted saturation of space-heating as
related to past experience; and full detail as to all other sources of
gas supply available to applicant and to each of its customers,
including manufacturing facilities and liquid petroleum gas.
[[Page 15158]]
(v) Conformed copy of each contract, letter of intent or other
agreement for sale or transportation of natural gas proposed by the
application. Indicate the rate to be charged. If no agreements have
been made, indicate the basis for assuming that contracts will be
consummated and that service will be rendered under the terms
contemplated in the application.
(vi) A full description of all facilities, other than those covered
by the application, necessary to provide service in the communities to
be served, the estimated cost of such facilities, by whom they are to
be constructed, and evidence of economic feasibility.
(vii) A copy of each market survey made within the past three years
for such markets as are to receive new or increased service from the
project applied for.
(viii) A statement showing the franchise rights of applicant or
other person to distribute gas in each community in which service is
proposed.
(ix) When an application requires a statement of total peak-day or
annual market requirements of affiliates, whose operations are
integrated with those of applicant, to demonstrate applicant's ability
to provide the service proposed or to establish a gas supply, estimates
and data required by this paragraph (a)(12)(ix) shall also be stated in
like detail for such affiliates.
(x) When the proposed project is for service which would not
decrease the life index of the total system gas supply by more than one
year, the data required in paragraphs (a)(12)(i) to (ix), inclusive, of
this section need be submitted only as to the particular market to
receive new or additional service.
(13) Exhibit J--Federal authorizations. A statement identifying
each Federal authorization that the proposal will require; the Federal
agency or officer, or State agency or officer acting pursuant to
delegated Federal authority, that will issue each required
authorization; the date each request for authorization was submitted;
why any request was not submitted and the date submission is expected;
and the date by which final action on each Federal authorization has
been requested or is expected.
(14) Exhibit K--Cost of facilities. A detailed estimate of total
capital cost of the proposed facilities for which application is made,
showing cost of construction by operating units such as compressor
stations, main pipelines, laterals, measuring and regulating stations,
and separately stating the cost of right-of-way, damages, surveys,
materials, labor, engineering and inspection, administrative overhead,
fees for legal and other services, allowance for funds used during
construction, and contingencies. Include a brief statement indicating
the source of information used as the basis for the above estimate. If
not otherwise set forth, submit data on preliminary bids, if any, for
the proposed facilities and recent experienced cost data for facilities
of similar character.
(15) Exhibit L--Financing. Plans for financing the proposed
facilities for which the application is filed, together with:
(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) Exhibit M--Construction, operation, and management. A concise
statement setting forth arrangements for supervision, management,
engineering, accounting, legal, or other similar service to be rendered
in connection with the construction or operation of the project, if not
to be performed by employees of applicant, including reference to any
existing or contemplated agreements therefor, together with:
(i) A statement showing affiliation between applicant and any
parties to such agreements or arrangements. See Exhibit D, paragraph
(a)(4) of this section.
(ii) Conformed copies of all construction, engineering, management,
and other similar service agreements or contracts in any way operative
with respect to construction, operation, or financing of facilities
which are the subject of the application or will be applicable under
system operations.
(17) Exhibit N--Revenues--Expenses--Income. When the estimated
revenues and expenses related to a proposed facility will significantly
affect the operating revenues or operating expenses of an applicant,
there shall be submitted a system-wide statement for the last year
preceding the proposed construction or service and pro forma system-
wide and incremental statements for each of the first three full years
of operation of the proposed facilities, showing:
(i) Gas system annual revenues and volumes of natural gas related
thereto, subdivided by classes of service, and further subdivided by
sales to direct industrial customers, sales to other gas utilities, and
other sales, indicating billing quantities used for computing charges,
e.g., actual demands, billing demands, volumes, heat-content adjustment
or other determinants. In addition, if enlargement or extension of
facilities is involved, the revenues attributable solely to the
proposed facilities shall be stated separately, and the basis and data
used in such computation shall be clearly shown.
(ii) Gas system annual operating expenses classified in accordance
with the Commission's Uniform System of Accounts for Natural Gas
Companies; the annual depreciation, depletion, taxes, utility income,
and resulting rate of return on net investment in gas plant including
working capital. In addition if enlargement or extension of facilities
is involved, the cost of service attributable solely to the proposed
facilities shall be stated separately with supporting data.
(iii) When the data required in paragraphs (a)(17)(i) and (ii) of
this section is not submitted, applicant shall provide in lieu thereof
a statement in sufficient detail to show clearly the effect on the
operating revenues and operating expenses of the estimated revenues and
expenses related to the proposed facility.
(18) Exhibit O--Depreciation and depletion. Depreciation and
depletion rates to be established, the method of determination and the
justification therefor.
(19) Exhibit P--Tariff. (i) A statement of the rates to be charged
for the proposed sales or service, including:
[[Page 15159]]
(A) Identification of the applicable presently effective rate
schedules, when no additional tariff filings will be required, or
(B) When changes are required in applicant's presently effective
tariff, or if applicant has no tariff, pro forma copies of appropriate
changes in or additions to the effective tariff or a pro forma copy of
the new gas tariff proposed, or
(C) When a new rate is proposed, a statement explaining the basis
used in arriving at the proposed rate. Such statement shall clearly
show whether such rate results from negotiation, cost-of-service
determination, competitive factors or others, and shall give the nature
of any studies which have been made in connection therewith.
(ii) When new rates or changes in present rates are proposed or
when the proposed facilities will result in a material change in
applicant's average cost of service, such statement shall be
accompanied by supporting data showing:
(A) System cost of service for the first calendar year of operation
after the proposed facilities are placed in service.
(B) An allocation of such costs to each particular service
classification, with the basis for each allocation clearly stated.
(C) The proposed rate base and rate of return.
(D) Gas operating expenses, segregated functionally by accounts.
(E) Depletion and depreciation.
(F) Taxes with the basis upon which computed.
* * * * *
[FR Doc. 2016-06288 Filed 3-21-16; 8:45 am]
BILLING CODE 6717-01-P