[Federal Register Volume 63, Number 77 (Wednesday, April 22, 1998)]
[Proposed Rules]
[Pages 19861-19864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10684]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 284
[Docket No. RM96-1-008]
Standards for Business Practices of Interstate Natural Gas
Pipelines
April 16, 1998.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission (Commission) is
proposing to amend Sec. 284.10 of its regulations governing standards
for conducting business practices and electronic communication with
interstate natural gas pipelines. The Commission is proposing to
incorporate by reference, in Sec. 284.10(b)(1)(i), the standards
relating to intra-day nominations promulgated March 12, 1998 by the Gas
Industry Standards Board (GISB).
DATES: Comments are due May 22, 1998.
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, N.E., Washington, DC 20426, (202) 208-
1283
Kay Morice, Office of Pipeline Regulation, Federal Energy Regulatory
Commission, 888 First Street, N.E., Washington, DC 20426, (202) 208-
0507
SUPPLEMENTARY INFORMATION: In addition to publishing the full text of
this document in the Federal Register, the Commission provides all
interested persons an opportunity to inspect or copy the contents of
this document during normal business hours in Room 2A, 888 First
Street, N.E., Washington D.C. 20426. The complete text on diskette in
WordPerfect format may be purchased from the Commission's copy
contractor, La Dorn Systems Corporation. La Dorn Systems Corporation is
located in the Public Reference Room at 888 First Street, N.E.,
Washington, D.C. 20426.
The Commission Issuance Posting System (CIPS), an electronic
bulletin board service, also provides access to the texts of formal
documents issued by the Commission. CIPS is available at no charge to
the user. CIPS can be accessed over the Internet by pointing your
browser to the URL address: http://www.ferc.fed.us. Select the link to
CIPS. The full text of this document can be obtained in ASCII or
WordPerfect format. CIPS also 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. The full text of
this order will be available on CIPS in ASCII and WordPerfect 6.1
format. CIPS user assistance is available at 202-208-2474.
The Federal Energy Regulatory Commission (Commission) is proposing
to amend Sec. 284.10 of its regulations governing standards for
conducting business practices and electronic communications with
interstate natural gas pipelines. The Commission is proposing to adopt
the consensus standards, promulgated March 12, 1998, by the Gas
Industry Standards Board (GISB) dealing with intra-day nominations and
revisions to nomination and confirmation procedures.
I. Background
In Order Nos. 587, 587-B, and 587-C 1 the Commission
adopted regulations to standardize the business practices and
communication methodologies of interstate pipelines in order to create
a more integrated and efficient pipeline grid. In those orders, the
Commission incorporated by reference consensus standards developed by
GISB, a private, consensus standards developer composed of members from
all segments of the natural gas industry.
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\1\ Standards For Business Practices of Interstate Natural Gas
Pipelines, Order No. 587, 61 FR 39053 (Jul. 26, 1996), III FERC
Stats. & Regs. Regulations Preambles para. 31,038 (Jul. 17, 1996),
Order No. 587-B, 62 FR 5521 (Feb. 6, 1997), III FERC Stats. & Regs.
Regulations Preambles para. 31,046 (Jan. 30, 1997), Order No. 587-C,
62 FR 10684 (Mar. 10, 1997), III FERC Stats. & Regs. Regulations
Preambles para. 31,050 (Mar. 4, 1997).
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In Order No. 587, the Commission adopted a standard requiring
pipelines to permit shippers to make at least one intra-day nomination
per day.2 An intra-day nomination is a nomination submitted
after the initial nomination deadline at 11:30 a.m. to change a
shipper's scheduled quantities for the next gas day.3
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\2\ 18 CFR 284.10(b)(1)(i) (1997), Nominations Related Standards
1.3.10.
\3\ 18 CFR 284.10(b)(1)(i) (1997), Nominations Related Standards
1.2.4.
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In Order No. 587-C, the Commission did not adopt additional
standards approved by GISB concerning intra-day nominations, because
the standards did not clearly outline the pipelines' obligations. The
Commission further noted that pipelines had implemented GISB's previous
intra-day standards in divergent ways, for instance, by establishing
different times for submission of intra-day nominations. These
differences prevented shippers from coordinating their intra-day
nominations across the pipeline grid. The Commission gave GISB and the
industry until September 1, 1997 to propose additional standards that
would create the needed uniformity in intra-day procedures.
On September 2, 1997, GISB filed a report detailing its progress in
reaching consensus on the intra-day standards. While GISB reported
making significant progress in developing the standards, it highlighted
conflicts between its members that were inhibiting completion of the
standards. The disagreements concerned the circumstances under which
intra-day nominations by shippers holding firm capacity should be given
scheduling priority over previously scheduled interruptible service.
In Order No. 587-G, issued contemporaneously with this NOPR, the
Commission resolved this conflict. It issued regulations requiring
pipelines to accord an intra-day nomination submitted by a firm shipper
scheduling priority over nominated and scheduled volumes for
interruptible shippers. The Commission, however, deferred
implementation of this requirement until GISB had developed, and the
Commission had adopted, standards to implement the regulation.
On March 23, 1998, GISB filed with the Commission intra-day
nomination standards approved, on March 12, 1998,
[[Page 19862]]
by a consensus vote of the gas industry.4 These standards
establish three synchronization times for shippers to coordinate their
intra-day nominations: 6 p.m. to take effect the next gas day and 10
a.m. and 5 p.m. to take effect on the same gas day. Under the
standards, the 10 a.m. intra-day nomination would become effective, if
confirmed, at 5 p.m. the same day, with any bumping notice to
interruptible shippers given by 2 p.m. The 5 p.m. intra-day nomination
would become effective, if confirmed, at 9 p.m. the same day. No
bumping is allowed at the 5 p.m. nomination. The 6 p.m. intra-day
nomination would become effective, if confirmed, at 9 a.m. the next
morning if all parties can be scheduled, but GISB did not establish the
time at which a bumping intra-day nomination would become effective,
leaving that determination for the Commission. Bumping notice for the 6
p.m. intra-day nomination would be given by 10 p.m.5
[GRAPHIC] [TIFF OMITTED] TP22AP98.002
The standards also establish protocols for pipeline processing of
nominations and confirmations for both regular and intra-day
nominations.
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\4\ The new standards are 1.1.17 through 1.1.19, 1.2.8 through
1.2.12, 1.3.39 through 1.3.44. In addition, modifications were made
to existing standards. Standards 1.2.7, 1.3.10, and 1.3.12 were
deleted. Standards 1.3.2, 1.3.20, 1.3.22, and 1.3.32 were revised.
\5\ The term ``TSP'' in the chart stands for transportation
service provider.
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As discussed above, the standards do not establish the time at
which a firm intra-day nomination submitted on the day prior to gas
flow (6 p.m.), which bumps interruptible service, would take effect.
The standards leave that date to be determined by the Commission. The
Commission already has resolved this issue in Order No. 587-G, adopting
a regulation requiring that an intra-day nomination submitted on the
day prior to gas flow will take effect at the start of the gas day, 9
a.m. central-clock-time (CCT).6
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\6\ 18 CFR 284.10(c)(1)(i)(B). Central clock time adjusts for
daylight savings time.
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II. Discussion
The Commission is proposing to adopt GISB's consensus standards.
Adoption of these standards would provide shippers with greater
opportunities to change their nominated quantities to better accord
with changes in weather or other market circumstances and would improve
the efficiency of the intra-day nomination process. The adoption of the
GISB standards would expand from one to three the number of intra-day
opportunities to which shippers are entitled. By creating times at
which shippers can synchronize their intra-day nominations, these
standards, together with the Commission's regulations adopted in Order
No. 587-G, also would create the uniform process shippers need to
coordinate their intra-day nominations across the pipeline grid. The
standards governing nomination and confirmation procedures further
should help create a more reliable nomination process in which
pipelines will receive accurate information, so they can schedule
nominations and intra-day nominations that their systems can
accommodate.
GISB approved the standards under its consensus procedures. This
process first requires a super-majority vote of 17 out of 25 members
with support from at least two members from each of the five industry
segments--interstate pipelines, local distribution companies, gas
producers, end-users, and services (including marketers and computer
service providers). For final approval, 67% of GISB's general
membership must ratify the standards.
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\7\ Pub. L. No. 104-113, Sec. 12(d), 110 Stat. 775 (1996), 15
U.S.C. 272 note (1997).
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As the Commission found in Order No. 587, adoption of consensus
standards is appropriate because the consensus process helps ensure the
reasonableness of the standards by requiring that the standards draw
support from a broad spectrum of all segments of the industry.
Moreover, since the industry itself has to conduct business under these
standards, the standards should reflect those business practices that
have the widest possible
[[Page 19863]]
support. Indeed, in Sec. 12(d) of the National Technology Transfer and
Advancement Act (NTT&AA) of 1995, Congress affirmatively requires
federal agencies to use technical standards developed by voluntary
consensus standards organizations, like GISB, as means to carry out
policy objectives or activities.7
In Order No. 587-G, the Commission has deferred implementation of
its regulations relating to intra-day nominations,
Sec. 284.10(c)(1)(i), until it adopts standards to implement the
regulations. The Commission is contemplating a September 1, 1998,
implementation date both for the standards proposed to be adopted here
and the intra-day nomination regulations adopted in Order No. 587-G.
III. Information Collection Statement
The following collections of information would be affected by this
proposed rule and have been submitted to the Office of Management and
Budget (OMB) for review under Section 3507(d) of the Paperwork
Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits
comments 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. The burden estimate in Order No. 587-G includes
the cost for pipelines to comply with the Commission's regulations
concerning the scheduling priority of intra-day nominations. The
following burden estimates include only the incremental costs of
complying with GISB's new and revised standards intended to implement
the Commission's regulations. The burden estimates are primarily
related to start-up and will not be on-going costs.
Estimated Annual Burden: The estimated annual burden associated
with this NOPR is shown below.
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Number of Estimated
Data collection Number of responses per burden hours Total annual
respondents respondent per response hours
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FERC-549C....................................... 93 1 45 4,185
FERC-545........................................ 93 1 47 4,371
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The estimated number of reporting hours attributable to the
revisions proposed herein are expected to total 8,556 hours annually.
Information Collection Costs: The Commission seeks comments on the
estimated cost to comply with these requirements. It has projected
average annualized costs for all 93 respondents to be the following:
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FERC-549C FERC-545 Totals
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Annualized Capital/Startup Costs................................ $220,580 $230,383 $450,963
Annualized Costs (Operations and Maintenance)................... 0 0 0
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Total Annualized Costs...................................... 220,580 230,383 450,963
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OMB regulations 8 require OMB to approve certain
information collection requirements imposed by agency rule. The
Commission is submitting notification of the data collections affected
by this proposed rule to OMB.
\8\ 5 CFR 1320.11.
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Title:
FERC-549C, Standards for Business Practices of Interstate Natural
Gas Pipelines
FERC-545, Gas Pipeline Rates: Rate Change (Non-Formal)
Action: Proposed collections.
OMB Control No.: 1902-0174, 1902-0154.
Respondents: Business or other for profit (Interstate natural gas
pipelines. (Not applicable to small business.))
Frequency of Responses: One-time implementation (business
procedures, capital/start-up).
Necessity of the Information: This proposed rule, if implemented,
would revise the requirements contained in 18 CFR 284.10 to further the
process of standardizing business practices and electronic
communications with interstate pipelines begun by the Commission in
Order No. 587. Adoption of these regulations will provide shippers with
increased options to change their scheduled gas quantities to reflect
weather and other changed conditions and enable shippers to more
efficiently transact business across multiple pipelines.
The information collection requirements of this proposed rule will
be reported directly to the industry users. The implementation of these
data requirements will help the Commission carry out its
responsibilities under the Natural Gas Act to monitor activities of the
natural gas industry to ensure its competitiveness and to assure the
improved efficiency of the industry's operations. The Commission's
Office of Pipeline Regulation will use the data in rate proceedings to
review rate and tariff changes by natural gas companies for the
transportation of gas, for general industry oversight, and to
supplement the documentation used during the Commission's audit
process.
Internal Review: The Commission has reviewed these requirements and
made a determination that the proposed revisions are necessary to
establish a more efficient and integrated pipeline grid. These
requirements conform to the Commission's plan for efficient information
collection, communication, and management within the natural gas
industry. 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 requirement.
Interested persons may obtain information on the reporting
requirement by contacting the following: Federal Energy Regulatory
Commission, 888 First Street, N.E., Washington, D.C. 20426 [Attention:
Michael Miller, Division of Information Services, Phone: (202) 208-
1415, fax: (202) 273-0873, email:[email protected]].
Comments concerning the collection of information and the
associated burden estimates, should be sent to the contact listed above
and to the Office of Management and Budget, Office of Information and
Regulatory Affairs, Washington, D.C. 20503 [Attention: Desk Officer for
the Federal Energy
[[Page 19864]]
Regulatory Commission, phone: (202) 395-3087, fax: (202) 395-7285].
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.9 The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.10 The actions proposed to be taken here fall
within categorical exclusions in the Commission's regulations for rules
that are clarifying, corrective, or procedural, for information
gathering, analysis, and dissemination, and for sales, exchange, and
transportation of natural gas that requires no construction of
facilities.11 Therefore, an environmental assessment is
unnecessary and has not been prepared in this rulemaking.
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\9\ Order No. 486, Regulations Implementing the National
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. &
Regs. Preambles 1986-1990 para. 30,783 (1987).
\10\ 18 CFR 380.4.
\11\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
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V. Regulatory Flexibility Act Certification
The Regulatory Flexibility Act of 1980 (RFA) 12
generally requires a description and analysis of final rules that will
have significant economic impact on a substantial number of small
entities. The proposed regulations would impose requirements only on
interstate pipelines, which are not small businesses, and, these
requirements are, in fact, designed to reduce the difficulty of dealing
with pipelines by all customers, including small businesses.
Accordingly, pursuant to Sec. 605(b) of the RFA, the Commission hereby
certifies that the regulations proposed herein will not have a
significant adverse impact on a substantial number of small entities.
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\12\ 5 U.S.C. 601-612.
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VI. Comment Procedures
The Commission invites interested persons to submit written
comments on the matters and issues proposed in this notice to be
adopted, including any related matters or alternative proposals that
commenters may wish to discuss. An original and 14 copies of comments
must be filed with the Commission no later than May 22, 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. RM96-1-008. All written 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 should be submitted electronically.
Commenters are encouraged to file comments using Internet E-Mail.
Comments should be submitted through the Internet by E-Mail to
[email protected] in the following format: on the subject line,
specify Docket No. RM96-1-008; in the body of the E-Mail message,
specify the name of the filing entity and the name, telephone number
and E-Mail address of a contact person; and attach the comment in
WordPerfect 6.1 or lower format or in ASCII format as an
attachment to the E-Mail message. The Commission will send a reply to
the E-Mail to acknowledge receipt. Questions or comments on electronic
filing using Internet E-Mail should be directed to Marvin Rosenberg at
202-208-1283, E-Mail address [email protected].
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. RM96-1-008 on the outside of the
diskette.
List of Subjects in 18 CFR Part 284
Continental shelf, Natural gas, Reporting and recordkeeping
requirements; Incorporation by reference.
By direction of the Commission.
Linwood A. Watson, Jr.,
Acting Secretary.
In consideration of the foregoing, the Commission proposes to amend
Part 284, Chapter I, Title 18, Code of Federal Regulations, as set
forth below.
PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE
NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES
1. The authority citation for Part 284 continues to read as
follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C 7101-7532; 43
U.S.C 1331-1356.
2. In section 284.10, paragraph (b)(1)(i) is revised to read as
follows:
Sec. 284.10 Standards for pipeline business operations and
communications.
* * * * *
(b) * * *
(1) * * *
(i) Nominations Related Standards (Version 1.2, July 31, 1997),
with the addition of standards 1.1.17 through 1.1.19, 1.2.8 through
1.2.12, 1.3.39 through 1.3.44 (as approved March 12, 1998), the
modification of standards 1.3.2, 1.3.20, 1.3.22 1.3.32 (as approved
March 12, 1998), and the deletion of standards 1.2.7, 1.3.10, and
1.3.12;
* * * * *
[FR Doc. 98-10684 Filed 4-21-98; 8:45 am]
BILLING CODE 6717-01-P