[Federal Register Volume 59, Number 2 (Tuesday, January 4, 1994)]
[Proposed Rules]
[Pages 268-278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31]


[[Page Unknown]]

[Federal Register: January 4, 1994]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 161 and 250

[Docket No. RM94-6-000]

 

Standards of Conduct and Reporting Requirements for 
Transportation and Affiliate Transactions

Issued December 23, 1993.
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 standards of conduct and 
reporting requirements for transportation and affiliate transactions. 
The Commission is proposing to reduce the reporting requirements based 
on changes in the way pipelines will be allocating capacity after 
implementation of Order No. 636 and the Commission's experience with 
the reporting requirements.

DATES: Comments are due February 3, 1994.

ADDRESSES: Office of the Secretary, Federal Energy Regulatory 
Commission, 825 North Capitol Street, NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT: Michael Goldenberg, Federal Energy 
Regulatory Commission, 825 North Capitol Street, NE., Washington, DC 
20426, (202) 208-2294.

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 room 3104, 941 North 
Capitol Street NE., Washington, DC 20426.
    The Commission Issuance Posting System (CIPS), an electronic 
bulletin board service, provides access to the texts of formal 
documents issued by the Commission. CIPS is available at no charge to 
the user and may be accessed using a personal computer with a modem by 
dialing (202) 208-1397. To access CIPS, set your communications 
software to use 300, 1200 or 2400 bps, full duplex, no parity, 8 data 
bits, and 1 stop bit. CIPS can also be accessed at 9600 bps by dialing 
(202) 208-1781. The full text of this notice will be available on CIPS 
for 30 days from the date of issuance. The complete text on diskette in 
WordPerfect format may also be purchased from the Commission's copy 
contractor, La Dorn Systems Corporation, also located in room 3104, 941 
North Capitol Street, NE., Washington, DC 20426.
    The Federal Energy Regulatory Commission (Commission) is proposing 
to amend its regulations governing standards of conduct and reporting 
requirements for transportation and affiliate transactions. The 
Commission is proposing to reduce the reporting requirements 
significantly based on changes in the way pipelines will be allocating 
capacity after implementation of Order No. 6361 and the 
Commission's experience with the reporting requirements.
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    \1\Pipeline Service Obligations and Revisions to Regulations 
Governing Self-Implementing Transportation; and Regulation of 
Natural Gas Pipelines After Partial Wellhead Decontrol, 57 FR 13,267 
(Apr. 16, 1992), III FERC Stats. & Regs. Preambles 30,939 (Apr. 8, 
1992), order on reh'g, Order No. 636-A, 57 FR 36,128 (Aug. 12, 
1992), III FERC Stats. & Regs. Preambles 30,950 (Aug. 3, 1992), 
order on reh'g, Order No. 636-B, 57 FR 57,911 (Dec. 8, 1992), 61 
FERC 61,272 (1992), appeal pending sub nom., Atlanta Gas Light Co. 
and Chattanooga Gas Co. v. FERC, No. 92-8782 (11th Cir. Aug. 13, 
1992).
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I. Reporting Requirements

    The Commission estimates the public reporting burden for this 
collection of information under the proposed rule to average 66.2 hours 
per respondent, including the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. The 
information will be collected under FERC-592, Marketing Affiliates of 
Interstate Pipelines. In lieu of being physically filed with the 
Commission on a periodic basis as a ``response'' or ``filing'', the 
data will be updated continuously and made available to customers/
shippers, the public, and the Commission by Electronic Bulletin Boards 
(EBBs) established and maintained by the pipeline respondents pursuant 
to Order No. 636. The annual reporting burden for some 61 respondents 
under the proposed rule is estimated to total 4,038.2 hours.
    Because the proposed rule provides for fewer information items, the 
burden estimate for FERC-592 in the subject Notice of Proposed 
Rulemaking (NOPR) represents a burden reduction of 63 hours per 
respondent--or a total reduction of 3,843 hours. The current annual 
reporting burden attributable to the FERC-592 information collection is 
7,882 hours. A copy of this proposed rule is being provided to the 
Office of Management and Budget (OMB).
    Interested persons may send comments regarding the burden estimates 
or any other aspect of this collection of information, including 
suggestions for further reductions of this burden, to the Federal 
Energy Regulatory Commission, 941 North Capitol Street, NE., 
Washington, DC 20426 [Attention: Michael Miller, Information Services 
Division, (202) 208-1415, FAX (202) 208-2425]. Comments on the 
requirements of this proposed rule may also be sent to the Office of 
Information and Regulatory Affairs of OMB, Washington, DC 20503 
[Attention: Desk Officer for Federal Energy Regulatory Commission (202) 
395-6880].

II. Background

    The Commission, in Order No. 497,2 issued a rule intended to 
prevent pipelines from providing preferential treatment to their 
marketing or brokering affiliates. The rule adopted standards of 
conduct (codified at part 161 of the Commission's regulations)3 
and tariff and reporting requirements (codified in Sec. 250.16).4 
The reporting requirements required the pipelines to file FERC Form No. 
592, a log containing information relating to transportation for 
affiliated marketers, and to maintain the same information for 
nonaffiliated shippers. The Commission imposed a sunset provision 
requiring a reevaluation of the requirements of the rule within one 
year to determine whether increased competition in transportation had 
mitigated the concerns about affiliate abuse. The Commission has 
extended the sunset provision until December 31, 1993, and, 
contemporaneously with this NOPR, is issuing Order No. 497-E which 
extends the reporting requirements until June 30, 1994.5
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    \2\Inquiry Into Alleged Anticompetitive Practices Related to 
Marketing Affiliates of Interstate Pipelines, Order No. 497, 53 FR 
22139 (June 14, 1988), FERC Stats. & Regs. [Regulations Preambles 
1986-1990] 30,820 (1988), order on rehearing, Order No. 497-A, 54 
FR 52781 (Dec. 22, 1989), FERC Stats. & Regs. [Regulations Preambles 
1986-1990] 30,868 (1989), order extending sunset date, Order No. 
497-B, 55 FR 53291 (Dec. 28, 1990), FERC Stats. & Regs. [Regulations 
Preambles 1986-1990] 30,908 (1990), order extending sunset date and 
amending final rule, Order No. 497-C, 57 FR 9 (Jan. 2, 1992), III 
FERC Stats. & Regs. 30,934 (1991), reh'g denied, 57 FR 5815 (Feb. 
18, 1992), 58 FERC 61,139 (1992), aff'd in part and remanded in 
part, Tenneco Gas v. Federal Energy Regulatory Commission, 969 F.2d 
1187 (D.C. Cir. 1992), order on remand, Order No. 497-D, 57 FR 58978 
(Dec. 14, 1992), III FERC Stats. & Regs. 30,958 (1992).
    \3\18 CFR part 161.
    \4\18 CFR 250.16.
    \5\Order No. 497-E also revises Sec. 161.3(f) of the standards 
of conduct dealing with the contemporaneous disclosure to 
nonaffiliates of transportation, sales, and marketing information 
provided to affiliates.
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    In Order No. 636, the Commission created a new operating 
environment for interstate pipelines and shippers by requiring 
pipelines to unbundle their sale of gas from their transportation 
service and implementing changes in the terms and conditions for 
providing transportation. One of the principal changes introduced by 
Order No. 636 was the initiation of capacity release mechanisms through 
which firm shippers can release their firm transportation capacity, 
including storage capacity, to others wanting to obtain the capacity. 
The Commission mandated that all allocations of firm capacity, both 
firm capacity available from the pipeline and released capacity, be 
implemented through Electronic Bulletin Boards (EBBs) operated by the 
pipelines (or operated on their behalf by third parties). The 
Commission also has begun the process, in Docket No. RM93-4-000, of 
standardizing the methods by which pipelines will provide information 
about available capacity through their EBBs.
    Another significant change in Order No. 636 was the Commission's 
determination that pipelines must provide shippers with flexible 
receipt and delivery points. The Commission provided this flexibility 
to promote efficient use of pipeline capacity particularly through the 
capacity releasing mechanism. A shipper obtaining released capacity 
(replacement shipper) is not restricted to using the receipt or 
delivery points of the releasing shipper; it is able to select 
alternate receipt or delivery points for that capacity to accord with 
its requirements for transportation service.
    The Commission previously has addressed the effect of EBBs and 
capacity release on the Order No. 497 requirements. In Order No. 497-D, 
the Commission eliminated the requirement that pipelines file the Form 
No. 592 containing the affiliated transportation log with the 
Commission, requiring instead that they provide this information on 
their EBBs.6 The Commission also determined that Order No. 497 
does not apply to temporary capacity releases, because such releases 
are not a request for transportation to the pipeline.7 The 
releasing shipper, not the pipeline, controls and makes the 
determination to release capacity; the pipeline merely facilitates the 
transaction.
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    \6\Order No. 497-D, III FERC Stats. & Regs. Preambles at 30,737.
    \7\Northwest Pipeline Corporation, 65 FERC 61,007 (1993). A 
temporary capacity release occurs when the releasing shipper retains 
its rights to the capacity when the release period ends. A permanent 
release ends the releasing shipper's rights and responsibilities 
under the contract and the contract is transferred to the 
replacement shipper.
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    Now that Order No. 636 has been implemented on virtually all 
pipelines, the Commission finds this to be the opportune time to do a 
comprehensive reevaluation of the Order No. 497 requirements in light 
of the requirements of Order No. 636 as well as the Commission's 
experience under Order No. 497. In Order No. 636, the Commission stated 
that increased competition resulting from the unbundling of gas sales 
from transportation service might reduce the pipelines' incentive for 
granting preferences to affiliates, but it concluded such competition 
probably would not eliminate the incentive altogether.8 Similarly, 
the implementation of capacity release may reduce the pipelines' 
incentive to provide its marketing affiliates with preferences for 
interruptible transportation, because shippers seeking interruptible 
service are not restricted to the pipeline as the sole avenue for such 
service, as they were in the past; they now can obtain firm service 
through capacity release which is superior to the pipelines' 
interruptible service.
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    \8\Order No. 636-A, III FERC Stats. & Regs. Preambles at 30,621.
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    At this juncture, the Commission does not deem the evidence 
sufficient to warrant rescission of the Order No. 497 standards of 
conduct and tariff and reporting requirements. As part of its 
continuing assessment of the need for these regulations, the Commission 
will consider in the final rule any comments relating to the need for, 
and retention of, these regulations as a whole. Nevertheless, the 
significant changes wrought by Order No. 636 do appear to warrant 
substantial revision of the Order No. 497 standards of conduct and 
tariff and reporting requirements to eliminate unnecessary information 
and to reduce and streamline the compliance burden. Modifications to 
the Order No. 497 filing requirements also are needed to conform the 
regulations with the requirement that affiliate information be posted 
on pipeline EBBs.9
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    \9\The Commission is proposing to eliminate current 
Sec. 161.3(h), Secs. 250.16(b)(1) (ii) and (iv), and 
Secs. 250.16(b)(2) (ii), (iv), and (vii)-(xiv). It proposes to 
modify current Sec. 250.16(a), Secs. 250.16(b)(1)(i), 
Secs. 250.16(b)(2) (iii), (vi), and (xvii), and Secs. 250.16(c)-(e).
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III. The Proposed Rule

A. Standards Of Conduct

    The Commission proposes to eliminate Sec. 161.3(h) of the 
regulations which prohibits pipelines from conditioning or tieing an 
agreement to release gas subject to take-or-pay relief to the purchase 
of services from a marketing affiliate. The Commission in Order No. 636 
established procedures for dealing with gas supply realignment costs 
resulting from the reformation or termination of take-or-pay contracts 
after the unbundling of sales from transportation service.10 
Accordingly, a standard of conduct provision relating to take-or-pay 
relief should no longer be needed.11
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    \1\0Order No. 636, III FERC Stats. & Regs. Preambles at 30,458.
    \1\1For the same reason, the Commission is proposing to 
eliminate current Sec. 250.16(b)(2)(xiii) requiring pipelines to 
include in their transportation log a statement of whether the gas 
being transported is subject to take-or-pay relief.
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B. Tariff And Reporting Requirements

1. Revisions To Coordinate With Other Regulatory Changes
    The reporting requirements currently apply to interstate pipelines 
transporting gas pursuant to subparts B, G, H, or K of part 284. The 
Commission proposes to remove the references to subparts H and K. 
Subpart H applies to capacity release transactions and is an 
unnecessary and duplicative reference, since, by its own terms, it 
applies only to pipelines transporting gas under subparts B and G. 
Subpart K, which applies to pipelines transporting gas on the outer 
continental shelf, is similarly unnecessary because, it too, requires 
such pipelines to transport gas pursuant to subpart G.
2. Tariff Provisions
    Current Sec. 250.16(b)(1) presently requires pipelines to include 
in their tariffs information about shared operating personnel and 
facilities, the information and format for a request for service, the 
procedures used to address complaints, and the procedures used to 
inform shippers about the availability and pricing of transportation 
service. Current Sec. 250.16(g)(1) requires pipelines to maintain and 
follow certain procedures to make the tariff information available to 
the public.
    The Commission proposes to eliminate the requirement, in current 
Sec. 250.16(b)(1)(ii), that pipelines include in their tariffs the 
information required for a valid request for service, including the 
information required for the Form No. 592 affiliate transportation log. 
This provision was intended to ensure that pipelines obtained from a 
shipper requesting service information known to the shipper, but not to 
the pipeline, which the pipeline was required to maintain by the 
regulations.12 The information which pipelines needed to obtain 
included items such as the supplier of gas, the end-user, and whether 
or not the gas was subject to take-or-pay relief. The requirement for 
pipelines to include the request for service information in their 
tariff no longer appears necessary, because pipeline tariffs already 
include procedures for requesting service, and more important, this 
NOPR is proposing to eliminate the information which the pipelines 
previously had to obtain from the transportation request form. Under 
the proposed regulations, pipelines should know all the relevant 
information, without having to obtain additional information from the 
requesting shipper.
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    \1\2See Order No. 497, FERC Stats. & Regs. [Regulations 
Preambles 1986-1990] at 31,147 (transportation request must include 
the items to be disclosed).
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    The Commission proposes to eliminate the requirement, in current 
Sec. 250.16(b)(1)(iv), that requires pipeline tariffs to include the 
procedures used to inform affiliated and nonaffiliated shippers of the 
availability and pricing of transportation service and of the capacity 
available for transportation. This requirement appears superfluous 
since pipelines are required under Order No. 636 to provide equal and 
timely access on their EBBs to information relevant to the availability 
of service on their systems.13
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    \1\318 CFR 284.8(b)(3), (4); 18 CFR 284.9(b)(3), (4).
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    The Commission also is proposing to eliminate the requirement, in 
current Sec. 250.16(g)(1), that pipelines maintain and make available 
to the public (at the pipelines' offices and through the mail) the 
tariff information they file with the Commission. This provision merely 
duplicates existing provisions. Section 4(c) of the Natural Gas Act 
requires pipeline tariff information to be publicly available and the 
Commission's regulations already require that the information be made 
available at the pipelines' offices as well as through the mail.14
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    \1\415 U.S.C. 717c(c) (1988); 18 CFR 154.16, 154.22.
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3. Reporting Transportation Transactions
    Current Sec. 250.16(b)(2) requires pipelines to file with the 
Commission a transportation log reporting a variety of information 
related to affiliate transactions, and Sec. 250.16(c) requires 
pipelines to maintain the same information for nonaffiliate 
transactions. The Commission is proposing to reduce the amount of 
information that must be maintained and to clarify the filing 
requirements in light of the requirement, promulgated in Order No. 497-
D, that pipelines post the information on their EBBs in lieu of filing 
it with the Commission.15
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    \1\5Order No. 497-D, III FERC Stats. & Regs. Preambles at 
30,737; 18 CFR 250.16(d)(1).
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    a. Information requirements. The Commission is proposing to 
eliminate the requirement that pipelines maintain information relating 
to firm transportation under Sec. 250.16. As a result of Order No. 636, 
the posting and awarding of firm service, including the reservation 
charge for that service, will be conducted through, and reported on, 
the pipelines' EBBs.16 Since all the details regarding an 
affiliate's or other shipper's acquisition of firm service will be on 
the EBB, a similar posting requirement for affiliate information under 
Sec. 250.16 appears unnecessary.17
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    \1\618 CFR 284.8(b)(3), 284.8(b)(4); Order No. 636, III FERC 
Stats. & Regs. Preambles at 30,419-20.
    \1\7The Commission recognizes that pipelines may offer firm 
shippers discounts on the reservation charge after the capacity is 
awarded and also may discount the firm usage charge. But the 
Commission does not deem the potential for such discounting 
sufficient to warrant the continuation of the reporting requirements 
under Sec. 250.16. Such discounting has not proven to have been 
extensive in the past. Moreover, information on any firm discounts 
that pipelines do provide affiliates will be available on pipeline 
EBBs under former standard I and under the Commission's Part 284 
discount reporting requirements, although without as much detail as 
required by Sec. 250.16. See 18 CFR 161.3(i)(revised Sec. 161.3(h)); 
18 CFR .8(b)(4)(v) (requiring standards of conduct information to be 
posted on EBBs); 18 CFR 284.7(d)(5)(4). In addition, the 
Commission's adoption of straight-fixed-variable (SFV) rate design 
in Order No. 636 virtually eliminates the pipelines' ability to 
discount the firm usage rate as well as the impact of any discounts 
if they did occur. Under SFV, the usage rate reflects only variable 
costs (and applicable volumetric surcharges), and pipelines cannot 
discount below variable cost.
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    For interruptible transportation, however, the EBBs will not 
provide the relevant discount information, because, unlike firm 
service, the EBBs will not be used to allocate interruptible capacity 
or establish a shipper's rate for interruptible service.18 The 
allocation of interruptible transportation and the rate for individual 
transactions usually takes place during the pipelines' monthly and 
daily nomination and scheduling process. Accordingly, the Commission is 
retaining the current requirement to maintain and post information for 
discounts on interruptible service (proposed Sec. 250.16(c)).
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    \1\8Order No. 636 only required pipelines to post their 
available interruptible capacity on their EBBs, but it did not 
mandate that the awarding of interruptible capacity take place on 
the EBBs. 18 CFR 284.9(b)(3).
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    The Commission is proposing to eliminate a number of reporting 
requirements relating to requests for interruptible service.19 The 
Commission's experience in administering Order No. 497 is that the most 
important information for monitoring potential undue discrimination is 
the discount information for individual transactions. Once that 
information is known, the Commission can obtain information regarding 
the transportation request during an investigation if it is needed. 
Indeed, some of the information on the request, such as the extent of 
affiliation between pipelines and suppliers or shippers, would appear 
to be well known to the parties transacting business on the pipelines 
and should not need to be posted.20
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    \1\9The Commission is proposing to eliminate current 
Secs. 250.16(b)(2)(ii), (iii), (v), (vi), (xiv), (xv), (xvii).
    \2\0For the same reason, the Commission is proposing to 
eliminate the reporting of corporate affiliation in the discount 
reporting requirement under current Sec. 250.16(b)(2)(xix).
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    The Commission is proposing to eliminate a series of requirements 
for posting information obtained from the transportation request on the 
source and destination of gas.21 Information from the 
transportation request form on source and destination should no longer 
be of much value since the Commission has required pipelines to provide 
for flexible receipt and delivery points. By making use of alternate 
receipt or delivery points, shippers will be able to transport gas 
between a variety of sources and destinations, regardless of the source 
or destination information provided on the transportation request form. 
The Commission, however, is retaining the requirement that pipelines 
post the quantity of gas at each delivery point for discounts actually 
granted.
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    \2\1Current Secs. 250.16(b)(2) (vii), (ix), (xi).
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    The Commission has not proposed to delete certain information 
relating to requests for service, such as the position of the request 
in the transportation queue and the disposition of the request. 
Nevertheless, the Commission is unsure about the value of retaining the 
requirements for posting information concerning the requests for 
service and solicits comments on whether they should be deleted as 
well.
    In Order No. 636-A, the Commission addressed the requirement in 
current Sec. 250.16(b)(2)(xiv) for reporting whether gas sales are 
being made below cost.22 A commenter had requested additional 
protection against affiliate abuse, contending that, after unbundling, 
a pipeline could avoid the Order No. 497 requirement to post 
transportation discounts by charging its affiliate the maximum 
transportation rate to deliver the gas, but selling gas to its 
affiliate at a loss. As part of its response, the Commission stated 
that concealment of such an arrangement would be difficult in light of 
the Sec. 250.16(b)(2)(xiv) requirement for pipelines to report whether 
affiliated marketers or their blanket sales operating units were 
selling gas below cost.
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    \2\2Order No. 636-A, III FERC Stats. & Regs. Preambles at 
30,622-23.
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    However, after further consideration and review of experience under 
Order No. 497, the Commission is proposing to eliminate the sales below 
cost provision, because it has not proved meaningful in evaluating 
discounts granted by pipelines. The Commission understands the 
pipelines obtain the information on below cost sales from the 
affiliated marketer in its initial request for service. The information 
reported by the pipeline, therefore, would not provide current below 
cost sales information that can be directly related to the current 
transportation arrangements posted in the log. Experience also shows 
that 98% of the time pipelines report this information as ``no'' or 
``unknown''.
    The Commission has no evidence that the manipulation of gas and 
transportation prices, as suggested by the comment in Order No. 636-A, 
has occurred or resulted in discrimination. Moreover, the Commission 
seriously doubts whether, in the competitive market for gas sales, any 
pipeline reporting requirement would permit monitoring of the ever-
changing price which shippers, whether affiliated marketers or others, 
will be paying for gas. Shippers in the market are in a better position 
to obtain information on gas prices and to file complaints with the 
Commission if they believe a manipulation of gas and transportation 
prices results in an undue discrimination relating to the 
transportation component.
    The Commission also is proposing to clarify the reporting 
requirements by requiring the provision of information on whether an 
affiliate or sales operating unit is involved in the transportation 
transaction and its role. Current Sec. 250.16(b)(2) (revised 
Sec. 250.16(d)) already requires pipelines to report transactions in 
which an affiliated marketer is involved, even if it is not the 
shipper. For example, an affiliate or pipeline sales operating unit 
could be involved in a transaction as a seller of gas or as an agent, 
but not as the shipper. The requirement to report the extent of such 
involvement would ensure that those obtaining the affiliate information 
would know the role of the pipeline affiliate when it is not a shipper.
    b. Access to the affiliate and nonaffiliate information. The 
existing regulations require pipelines to file transportation logs at 
the Commission. The Commission is proposing to conform these filing 
requirements to the requirement, established in Order Nos. 497-D and 
497-E, that pipelines post affiliate information on their EBBs rather 
than submitting it to the Commission.23
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    \2\3Under Order No. 497-E, the requirement for filing 
transportation logs at the Commission terminates the earlier of 90 
days after a pipeline is in compliance with Order No. 636 or June 
30, 1994.
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    To conform the Order No. 497 regulations with the requirements for 
EBBs, the new regulations would require pipelines to post affiliate 
information on their EBBs in conformity with the requirements of 
Sec. 284.8(b)(4) and their tariffs and to provide access to the 
affiliate information using the same procedures and protocols as used 
for accessing their EBBs.24 Pipelines, therefore, must ensure that 
their EBBs for affiliate information are user-friendly and incorporate 
the same features as apply to the other aspects of the pipelines' 
EBBs.25 They also must permit users to obtain the affiliate 
information by using the same phone number and log-on procedures they 
would use to access and obtain information about available capacity 
from the pipelines' EBBs.26
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    \2\4Pipelines with waivers of the EBB requirements under Order 
No. 636 would have to file for a waiver of the posting and 
downloading requirements for the affiliate information and propose 
an alternate method for making the information available.
    \2\5See Order No. 636, III FERC Stats. & Regs. Preambles at 
30,415. For example, the requirements to provide information through 
downloadable files, to provide on-line help, search functions, and 
menus, and to provide for backing-up, archiving, and retrieval of 
this material would be the same as those for the capacity 
availability information posted pursuant to Sec. 284.8(b)(4).
    \2\6For example, the Commission envisions that, in most cases, 
the Order No. 497 information would be a separate menu item that 
users could choose when they log-on to the pipeline's EBB.
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    The Commission previously had required pipelines to file their 
affiliate transportation logs with the Commission on magnetic tape or 
computer disks according to specified data formats.27 The 
Commission similarly required the pipelines to maintain nonaffiliate 
information in electronic form and to provide this information to the 
Commission upon request or to the public under the Commission's 
discovery procedures.28 Since pipelines are now required to comply 
with the Part 284 EBB requirements for posting of the affiliate 
information, they must make this information available through 
downloadable files. The regulations have been revised to reflect this 
requirement.
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    \2\718 CFR 250.16(e).
    \2\818 CFR 250.16(c); 18 CFR 385.401-11.
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    The Commission is also proposing to modify the requirements for 
providing both affiliate and nonaffiliate information to the Commission 
upon request. Under the proposal, pipelines would only have to maintain 
the information and be prepared to make it available electronically 
within a reasonable time upon request, according to specifications and 
formats promulgated by the Commission. Under the proposal, pipelines 
would not have to maintain the nonaffiliate information in one computer 
file. They could maintain the information in different files so long as 
they could extract the information and provide it, upon request, in 
electronic form. The Commission proposes to revise Form No. 592 to set 
forth the specifications and formats to be used for downloading and for 
providing the information to the Commission upon request.29
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    \2\9The proposed specifications and format are attached as 
Appendix A.
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    Current Sec. 250.16(d)(4)(ii) provides that filing the discounted 
rate report for affiliate transactions within 15 days of the close of 
the billing period satisfies a pipeline's obligation to file discount 
reports under Sec. 284.7(d)(5)(iv). Since pipelines are no longer 
required routinely to file transportation logs with the Commission, 
they must now fully comply with Sec. 284.7(d)(5)(iv) for affiliate 
transactions.

IV. Sunset Date

    The Commission is not proposing to include a sunset provision in 
this rule. The proposed revisions reduce the compliance burden 
significantly, and a firm sunset date, such as one year from issuance, 
would not necessarily provide sufficient time for the Commission fully 
to evaluate the effect of Order No. 636 on the pipelines' incentive to 
favor affiliates. The Commission always can reevaluate the rule when 
sufficient information is available. For example, after evaluation of 
the impact of the capacity release mechanism, the Commission may find 
that the availability of released capacity has so reduced the 
significance of interruptible discounts from the pipeline that the 
regulations are no longer needed. But, the Commission cannot predict 
when it would have sufficient data to make such a determination. The 
Commission notes that even without a sunset provision, it must review 
these regulations within three years because the Paperwork Reduction 
Act does not permit OMB to approve an information collection 
requirement for a period in excess of three years.30
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    \3\044 U.S.C. 3507(d).
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V. 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.31 The 
Commission has categorically excluded certain actions from these 
requirements as not having a significant effect on the human 
environment.32 The action taken here falls within categorical 
exclusions provided in the Commission's regulations.33 Therefore, 
an environmental assessment is unnecessary and has not been prepared in 
this rulemaking.
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    \3\1Order No. 486, Regulations Implementing the National 
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & 
Regs. Preambles 1986-1990  30,783 (1987).
    \3\218 CFR 380.4.
    \3\3See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5).
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VI. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act of 1980 (RFA)34 generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
Pursuant to section 605(b) of the RFA, the Commission hereby certifies 
that the regulations proposed herein will not have a significant impact 
on a substantial number of small entities.
---------------------------------------------------------------------------

    \3\45 U.S.C. 601-612.
---------------------------------------------------------------------------

VII. Information Collection Requirement

    Office of Management and Budget (OMB) regulations require approval 
of certain information collection requirements imposed by agency 
rules.35 The proposed rule revises and reduces the reporting 
requirements/burden under existing FERC-592, Marketing Affiliates of 
Interstate Pipelines (OMB Control No. 1902-0157).
---------------------------------------------------------------------------

    \3\55 CFR 1320.13.
---------------------------------------------------------------------------

    The information required under FERC-592 enables the Commission to 
carry out its legislative mandate under the NGA and NGPA and will help 
ensure a viable capacity release market under the Commission's Order 
No. 636. Specifically, the required information allows the Commission 
to review/monitor pipeline transportation, sales, and storage 
transactions with its marketing affiliates to deter undue 
discrimination and to take appropriate action, where and when 
necessary. The information is also used by others to indicate whether 
or not there has been discrimination in pipeline/affiliate/nonaffiliate 
transactions.
    The Commission is submitting notification of these FERC-592 
information requirements to OMB for its review and approval. Interested 
persons may obtain further information by contacting the Federal Energy 
Regulatory Commission, 941 North Capitol Street, NE., Washington, DC 
20426 [Attention: Michael Miller, Information Services Division, (202) 
208-1415]. Comments on the requirements of the subject proposed rule 
may also be sent to the Office of Information and Regulatory Affairs, 
Office of Management and Budget, Washington, DC 20503 [Attention: Desk 
Officer for Federal Energy Regulatory Commission].

VIII. Comment Procedures

    The Commission invites interested persons to submit written 
comments on the matters proposed in this notice, including any related 
matters or alternative proposals that commenters may wish to discuss. 
An original and 14 copies of comments to this notice must be filed with 
the Commission no later than February 4, 1994. Comments should be 
submitted to the Office of the Secretary, Federal Energy Regulatory 
Commission, 825 North Capitol Street, NE, Washington, DC 20426, and 
should refer to Docket No. RM94-6-000.
    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 941 North Capitol Street, NE, Washington, DC 20426, 
during regular business hours.

List of Subjects

18 CFR Part 161

    Natural gas, Reporting and recordkeeping requirements.

18 CFR Part 250

    Natural gas, Reporting and recordkeeping requirements.

    By direction of the Commission.
Lois D. Cashell,
Secretary.

    In consideration of the foregoing, the Commission proposes to amend 
parts 161 and 250, chapter I, title 18, Code of Federal Regulations, as 
set forth below.

PART 161--STANDARDS OF CONDUCT FOR INTERSTATE PIPELINES WITH 
MARKETING AFFILIATES

    1. The authority citation for part 161 continues to read as 
follows:

    Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.

    2. In Sec. 161.3, paragraph (h) is removed, paragraphs (i) through 
(l) are redesignated (h) through (k), and redesignated paragraph (i) is 
revised to read as follows:


Sec. 161.3  Standards of conduct.

* * * * *
    (i) It must file with the Commission procedures that will enable 
shippers and the Commission to determine how the pipeline is complying 
with the standards in this section.

PART 250--FORMS

    1. The authority citation for part 250 continues to read as 
follows:

    Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.

    2. Sec. 250.16 is revised to read as follows:


Sec. 250.16  Format of compliance plan for transportation services and 
affiliate transactions.

    (a) Who must comply. The requirements of this section apply to 
interstate natural gas pipelines that transport natural gas for others 
pursuant to subparts B or G of part 284 of this chapter and are 
affiliated, as that term is defined in Sec. 161.2 of this chapter, in 
any way with a natural gas marketing or brokering entity and conducts 
transportation transactions with its affiliate.
    (b) Tariff requirements. An interstate pipeline must maintain 
tariff provisions containing the following:
    (1) A complete list of operating personnel and facilities shared by 
the interstate natural gas pipeline and the affiliated marketing or 
brokering company, which the pipeline must update and refile with the 
Commission on a quarterly basis to reflect changes occurring during the 
quarter;
    (2) The procedures used to address and resolve complaints by 
shippers and potential shippers including a provision that the pipeline 
will respond within 48 hours and in writing within 30 days to such 
complaints.
    (c) Transportation information. An interstate pipeline must 
maintain the following information for all requests for interruptible 
transportation service conducted pursuant to subparts B or G of part 
284 of this chapter.
    (1) The identity of the shipper making the request for service, 
including a designation of whether the shipper is a local distribution 
company, an interstate pipeline, an intrastate pipeline, an end user, a 
producer, or a marketer.
    (2) The date of receipt of the request.
    (3) The specific affiliation of the requester with the interstate 
pipeline.
    (4) Whether an affiliated marketer or pipeline sales operating unit 
is involved in the transaction and its role.
    (5) The maximum daily contract volume of gas requested to be 
transported.
    (6) The position of the request in the transportation request 
queue.
    (7) The disposition of the request.
    (8) Any complaints by the shipper or end user concerning the 
requested or furnished service and the disposition of such complaints.
    (9) Whenever service is requested, offered, or provided at 
discounted rates: The name of the shipper requesting or being offered 
or provided the discount; the amount and duration of the discount 
requested, offered or provided; the maximum rate or fee; the rate or 
fee actually charged during the billing period; and the quantity of gas 
scheduled at the discounted rate during the billing period for each 
delivery point.
    (10) Whether the pipeline has granted a waiver of a tariff 
provision in providing the requested service.
    (d) Filing requirements for transportation involving affiliated 
marketers or brokers. An interstate pipeline must file the information 
specified in paragraph (c) of this section for transportation requests 
by affiliated marketers or brokers or in which an affiliated marketer 
or broker is involved in the following manner and must provide this 
information when service begins and update the information on a daily 
basis.
    (1) It must post each transaction on its Electronic Bulletin Board 
for no less than 90 days in conformity with the requirements of subpart 
A, part 284, Sec. 284.8(b)(4) of this chapter and its tariff, and using 
the same protocols and procedures for access as used for its Electronic 
Bulletin Board.
    (2) It must provide for downloading of the information according to 
specifications and format contained in Form No. 592, which can be 
obtained at the Federal Energy Regulatory Commission, Public Reference 
and Files Maintenance Branch, 941 North Capitol St., NE., Washington, 
DC 20426
    (e) Provision of data for affiliate and nonaffiliate transactions. 
(1) The information pipelines are required to maintain by paragraph (c) 
of this section for both affiliate and nonaffiliate transaction must be 
made available to the Commission upon request and to the public under 
subpart D of part 385 of this chapter.
    (2) When requested by the Commission, the information must be 
provided, within a reasonable time, according to the specifications and 
format contained in Form No. 592, which can be obtained at the Federal 
Energy Regulatory Commission, Public Reference and Files Maintenance 
Branch, 941 North Capitol St., NE., Washington, DC 20426.
    (f) Penalty for failure to comply. (1) Any person who transports 
gas for others pursuant to subparts B or G of part 284 of this chapter 
and who knowingly violates the requirements of Sec. 161.3, Sec. 250.16, 
or Sec. 284.13 of this chapter will be subject, pursuant to 
Secs. 311(c), 501, and 504(b)(6) of the Natural Gas Policy Act of 1978, 
to a civil penalty, which the Commission may assess, of not more than 
$5,000 for any one violation.
    (2) For purposes of this paragraph, in the case of a continuing 
violation, each day of the violation will constitute a separate 
violation.

    Note: The following Appendix will not appear in the Code of 
Federal Regulations.

Appendix A

Form Approved OMB No. 1902-0157; FERC Form No. 592

Marketing Affiliates of Interstate Pipelines

Record Formats

Revised December 7, 1993.
    Public reporting burden for this collection of information is 
estimated to average 66.2 hours per year per respondent, including 
the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing 
and reviewing the collection of information. Send comments regarding 
this burden estimate or any other aspect of this collection of 
information, including suggestions for reducing the burden, to each 
of the following:

Michael Miller, Federal Energy Regulatory Commission, 825 North 
Capitol Street, NE., Washington, DC 20426;
Office of Information and Regulatory Affairs, Office of Management 
and Budget, Washington, DC 20503, Attention: Desk Officer for the 
Federal Energy Regulatory Commission.

Table of Contents

General Information
    I Purpose
    II Who must Comply
    III How to Comply
    IV Where to Submit
General Instructions
Specific Instructions
Schedules: Marketing Affiliates of Interstate Pipelines, Schedule X1
    (1) The Header Record
    (2) The Transportation/Storage Request Record
    (3) The Transportation Discounted Rate Record
    (4) The Storage Discounted Rate Record
    (5) The Narrative Record
    (6) The Footnotes Record

General Information

I. Purpose

    The information required is to support the monitoring of 
activities of pipeline marketing affiliates (which includes holders 
of subpart J of part 284 blanket sales certificates) so as to deter 
undue discrimination by pipeline companies in favor of marketing 
affiliates, and to prevent any harassment of non-affiliates.

II. Who Must Comply

    All interstate natural gas pipeline companies that
     Transport natural gas for others pursuant to subparts B 
or G of part 284
     Are affiliated in any way with a natural gas marketing 
or brokering entity, as that term is defined in 18 CFR Sec. 161.2, 
and
     Conduct transportation transactions with an affiliate

must maintain the requisite information for interruptible 
transportation service as specified in the FERC Form No. 592 and in 
the manner prescribed herein.

III. How to Comply

A. Affiliate Data

    The required Form No. 592 information for interruptible 
transportation/storage service must be publicly available on an 
electronic bulletin board (EBB) which satisfies the pipeline's 
obligations under Order No. 636. This Form No. 592 data/information 
is also required to be downloadable in ASCII flat files conforming 
with the specifications of these instructions and record formats.
    The requirement for back-up, archive, and retrieval of the Form 
No. 592 interruptible transportation/storage information on the EBB 
is the same as for information posted pursuant to Sec. 284.8(b)(4). 
Each affiliate interruptible transportation/storage transaction must 
be posted for a 90 day period. EBB functionality shall be provided 
to permit users to extract currently posted Form No. 592 data, for 
one or more months, and to download a flat file containing this 
material formatted in accordance with these instructions.

B. Affiliate and Nonaffiliate Data

    Pipelines must have the capability to create flat files 
containing the Form No. 592 interruptible transportation/storage 
information, for a specified time period, for both pipeline 
affiliates and nonaffiliates. For discovery, the Commission may 
require pipelines to submit these Form No. 592 flat files for both 
affiliates and nonaffiliates on 9-track tape reel(s), 18-track tape 
cartridges(s), or on computer diskette(s).
    The pipeline may also be requested to provide one paper copy of 
the information submitted on the magnetic tape(s) or diskette(s) 
formatted so as to assist Commission staff in reading the company's 
flat files. The paper copy, if requested, must cover the same time 
period as the flat files submitted on the magnetic tape(s) or 
diskette(s).

IV. Where to Submit

    (1) Any required submission should be addressed to: Office of 
the Secretary, Federal Energy Regulatory Commission, 825 N. Capitol 
Street, NE., Washington, DC 20426.
    (2) Hand deliveries can be made to: Office of the Secretary, 
Federal Energy Regulatory Commission, room 3110, 825 N. Capitol 
Street, NE., Washington, DC 20426.

General Instructions

    1. The notation f(m,n) will be used to denote a numeric string 
of length ``m'' including a decimal (``.'') with ``n'' digits 
following the decimal.
    2. In preparing the required flat file, the following 
conventions must be followed:
    (A) All numeric fields must not be left blank and must be right 
justified unless indicated otherwise.
    (B) All money items should be rounded to the nearest dollar 
except where noted.
    (C) All volumetric data should be stated in MMbtu's (rounded to 
the nearest MMbtu), except where noted.
    (D) All rates should be stated in cents per MMbtu fixed decimal 
numbers, format f(10,2). For example, $1.5264/MMbtu should be stated 
as 152.64.
    (E) Negative values should be reported with a ``-'' sign 
preceding the first nonzero digit reported.
    (F) Commas must not be included in any numeric field.
    (G) Percents should be reported as whole numbers between 0 and 
100 inclusive.
    (H) All dates should be reported as six digit numerics (year, 
month, day), unless otherwise indicated.
    3. The sequence number is the sequential number assigned to a 
record as it is recorded on a schedule/record. The sequence number 
is incremented as additional records are added to a schedule/record 
and will be between 1 and 999,999, inclusive. (Note: The sequence 
number should be right justified, zero filled.)
    4. The reference number is the alphanumeric string formed by 
concatenation of the Schedule ID, Record ID, sequence number, and 
item location number. E.g., a respondent's Company ID reported in 
the first record on the ``General Information'' record would have 
reference number ``X101000001011'' formed by joining (concatenating) 
the schedule ID ``X1'', the record ID ``01'', the sequence number 
``000001'', and the item location number ``011''.
    5. Report any footnote relative to any item reported on Schedule 
X1 in the ``Footnotes Record'', (Record 06 of Schedule X1). Each 
footnote should be cross referenced to the schedule and record 
(line) it pertains to by the appropriate reference number. E.g., a 
footnote for Company ID reported in the first record of the 
``General Information'' record, (Schedule X1, Record 01), would be 
recorded in the ``Footnote Record,'' (Schedule X1, Record 06), using 
the reference number ``X101000001011''. At a minimum, the respondent 
should report the following information, in footnotes, for each 
contract/ request reported in the ``Transportation Service Data 
Record,'' (Schedule X1, Record 02).
    a. The field ``Respondent Affiliation,'' item number 15, should 
be footnoted to provide a complete list of personnel and facilities 
shared by the interstate pipeline and affiliated marketer or broker, 
or by the interstate pipeline and its blanket sales operating unit. 
Negative reports are required.
    b. The field ``Disposition of Request,'' item number 11, should 
be footnoted to provide any complaints and the disposition of such 
complaints by the shipper or end user concerning the requested or 
furnished service.
    6. Source of codes.
    (A) Pipeline Company ID: Use the code for the pipeline as 
contained in the Buyer Seller Code List, U.S. Department of Energy's 
publication DOE/EIA-0176. A code may be obtained by calling EIA at 
(202) 254-5435.
    (B) Contract ID: The respondent's own designation for the 
contract or agreement covering the transaction being reported. This 
identifier will either be assigned by the respondent or the party 
providing a service to the respondent.
    7. A pipeline blanket sales operating unit is any entity 
operating under a subpart J of part 284 blanket sales certificate, 
and is considered the functional equivalent of a marketing 
affiliate.

Specific Instructions

    1. Request ID: The Request ID is the unique sequential number 
assigned by the respondent to a request for transportation service 
when that request is received by the respondent.
    2. Date Request Received: The month, day, and year the pipeline 
company received the request for transportation service.
    3. Maximum Daily Contract Volumes To Be Transported (or Maximum 
Storage Withdrawal Quantity): The total maximum daily contract 
volumes of natural gas to be transported by the pipeline company (or 
withdrawn from storage).
    4. Delivery Point ID: The point at which the pipeline company 
delivers the natural gas to a designated end user, local 
distribution company, etc. as specified by the transportation 
service requested. The respondent will provide a unique 20-byte 
alphanumeric identifier for each delivery point on his pipeline 
system. This delivery point ID will be the alphanumeric label/name 
which the respondent uses in conducting his daily business, (or a 
unique abbreviation thereof if the company identifier is more than 
20 characters in length.)
    5. Maximum Rate for Transportation Service: The maximum rate 
contained in the respondent's currently effective tariff for the 
rate schedule under which the interruptible transportation service 
is being conducted.
    6. Discounted Rate for Transportation Service: A rate that is 
less than the maximum rate on file with the Commission.
    7. Contracted Storage Capacity: Contracted working gas (Top Gas) 
volume.

Schedules

Marketing Affiliates of Interstate Pipelines--Schedule X1

Definitions of Items and File Layout for the Marketing Affiliates of 
Interstate Pipelines--Schedule X1

    This schedule will consist of six record formats:

(01) The Header Record
(02) The Transportation/Storage Request Record
(03) The Transportation Discounted Rate Record
(04) The Storage Discounted Rate Record
(05) The Narrative Record
(06) The Footnotes Record

(1) The Header Record 

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Character                                                                         
   Item No.                             Item                          position       Data type                           Comments                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 Schedule ID.......................................          1-2  Character......  Sch=X1.                                              
                 Record ID.........................................          3-4  Numeric........  Code=01.                                             
1..............  Company ID........................................         5-10  Numeric........  Company code from buyer/seller code list, see general
                                                                                                    instruction 6.                                      
3..............  Month Posted......................................        11-14  Numeric........  (MMYY); month and year which data represents.        
--------------------------------------------------------------------------------------------------------------------------------------------------------

(2) The Transportation/Storage Request Record 

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Character                                                                         
   Item No.                             Item                          position       Data type                            Comments                      
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 Schedule ID.......................................          1-2  Character......  Sch=X1.                                              
                 Record ID.........................................          3-4  Numeric........  Code=02.                                             
                 Sequence No.......................................         5-10  Numeric........  Right justified, zero filled, see general instruction
                                                                                                    3.                                                  
4..............  Contract ID.......................................        11-18  Character......  See general instruction 6(b).                        
5..............  Request ID........................................        19-25  Numeric........  See specific instruction 1.                          
7..............  Position in Queue.................................        26-30  Numeric........  Place in waiting line for contract for transportation
                                                                                                    service.                                            
8..............  Total Number of Requests in Queue.................        31-35  Numeric........  Total number of requests pending with pipeline for   
                                                                                                    initial transportation service.                     
9..............  Date Request Received.............................        36-41  Numeric........  (MMDDYY); see specific instruction 2.                
11.............  Disposition of Request............................           42  Numeric........  See general instruction 5b; code=1, granted at       
                                                                                                    maximum rate; code=2, granted a discounted rate;    
                                                                                                    code=3, denied due to a capacity limitation; code=4,
                                                                                                    denied due to financial condition of requestor;     
                                                                                                    code=5, other (provide specific details in a        
                                                                                                    footnote).                                          
14.............  Shipper...........................................        43-82  Character......  Name of the shipper requesting service.              
15.............  Pipeline Affiliation with Shipper.................           83  Numeric........  See general instruction 5a and note 1; code=1,       
                                                                                                    respondent affiliated with shipper; code=2,         
                                                                                                    respondent not affiliated with shipper.             
18.............  Shipper Type......................................           84  Numeric........  Code=1, LDC/distributor; code=2, interstate pipeline;
                                                                                                    code=3, intrastate pipeline; code=4, end user;      
                                                                                                    code=5, producer; code=6, marketer; code=7, other,  
                                                                                                    (specify in footnote).                              
                 Affiliate Name....................................       85-124  Character......  Name of the pipeline affiliate involved in the       
                                                                                                    transportation/storage service being provided; if   
                                                                                                    more than one affiliate is involved in the service, 
                                                                                                    provide name(s) in a footnote.                      
                 Role of Affiliate.................................          125  Character......  Affiliates role in the transportation/storage service
                                                                                                    is: code=1, shipper; code=2, marketer; code=3,      
                                                                                                    supplier; code=4, seller; code=5, buyer; code=6,    
                                                                                                    agent; code=7, enduser; code=8, other, (identify    
                                                                                                    role in a footnote).                                
                 Is Affiliate a Pipeline Sales Operating Unit of             126  Character......  Code=Y, yes; code=N, no.                             
                  the Respondent.                                                                                                                       
20.............  Discounted Rate Requested.........................          127  Numeric........  Discounted rate requested by party requesting the    
                                                                                                    transportation service; code=0, discount not        
                                                                                                    requested; code=1, discount requested.              
21.............  Maximum Daily Contract Volume to be Transported         128-137  Numeric........  (MMbtu); see specific instruction 3. Post contracted 
                  (or Maximum Storage Withdrawal Quantity).                                         storage capacity in Item 33b.                       
31.............  Type of Service...................................          138  Numeric........  See note 1; code=1, interruptible service without    
                                                                                                    waiver; code=2, interruptible service with waiver.  
33a............  Type of Transaction...............................          139  Numeric........  Code=1, code=2, a previously posted transaction in   
                                                                                                    which changes occurred.                             
33b............  Contracted Storage Capacity.......................      140-149  Numeric........  (MMbtu); see specific instruction 7.                 
33c............  Character of Service..............................          150  Numeric........  Code=1, storage service; code=2, transportation      
                                                                                                    related to sale made by pipeline blanket sales      
                                                                                                    operating unit; code=3, other transportation.       
                 Posting Date......................................      151-156  Numeric........  (YYMMDD), year, month, and day entry is posted on    
                                                                                                    pipeline's electronic bulletin board.               
                 Footnote..........................................          157  Numeric........  Code=1, footnote is provided for this record; code=0,
                                                                                                    no footnote provided.                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note 1: Report in this data item whether a waiver of a tariff provision has been granted in providing the requested service. Code 1 will be used to     
  indicate interruptible transportation service without waiver of a tariff provision; code 3 and 4 will be used to indicate interruptible transportation
  service with a waiver of a tariff provision of the respondent. Provide details on any waiver granted in a footnote.                                   

(3) The Transportation Discounted Rate Record 

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Character                                                                         
   Item No.                             Item                          position       Data type                           Comments                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 Schedule ID.......................................          1-2  Character......  Sch=X1.                                              
                 Record ID.........................................          3-4  Numeric........  Code=03.                                             
                 Sequence Number...................................         5-10  Numeric........  Right justified, zero filled, see general instruction
                                                                                                    3.                                                  
4..............  Contract ID.......................................        11-18  Character......  See general instruction 6(b).                        
5..............  Request ID........................................        19-25  Numeric........  See specific instruction 1.                          
35.............  Delivery Point ID.................................        26-45  Character......  See specific instruction 4 and note 2.               
38.............  Billing Period....................................        46-65  Character......  The billing period during which the discounted rate  
                                                                                                    was collected.                                      
39.............  Duration of Discount..............................        66-67  Numeric........  Number of days in the billing period the discount was
                                                                                                    offered or provided.                                
14.............  Shipper...........................................       68-107  Character......  Name of the shipper receiving transportation service.
18.............  Shipper Type......................................          108  Numeric........  Code=1, LDC/distributor; code=2, interstate pipeline;
                                                                                                    code=3, intrastate pipeline; code=4, end user;      
                                                                                                    code=5, producer; code=6, marketer; code=7, other,  
                                                                                                    (specify in footnote).                              
36.............  Maximum Rate for Transportation Service...........      109-118  Numeric........  (Cents/MMbtu); maximum effective rate/fee currently  
                                                                                                    on file with the Commission for the service         
                                                                                                    provided; format f(10,2); e.g., 35.62 cents is      
                                                                                                    reported as ``35.62''; see specific instruction 5.  
37.............  Discounted Rate for Transportation Service........      119-128  Numeric........  (Cents/MMbtu); actual rate/fee collected for the     
                                                                                                    transportation service rendered; format f(10,2);    
                                                                                                    e.g., 32.15 cents is reported as ``32.15''; do not  
                                                                                                    report a negative value; see specific instruction 6.
40.............  Volume Transported................................      129-139  Numeric........  (MMbtu); volume of gas transported at the discounted 
                                                                                                    rate.                                               
                 Posting Date......................................      140-145  Numeric........  (YYMMDD), year, month, and day entry is posted on    
                                                                                                    pipeline's electronic bulletin board.               
                 Footnote..........................................          146  Numeric........  Code=1, footnote is provided for this record; code=0,
                                                                                                    no footnote provided.                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note 2: This record is filed for each delivery point actually used during the billing period reported. Only transactions actually discounted should be  
  reported.                                                                                                                                             

(4) The Storage Discounted Rate Record 

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Character                                                                         
   Item No.                             Item                          position       Data type                           Comments                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 Schedule ID.......................................          1-2  Character......  Sch=X1.                                              
                 Record ID.........................................          3-4  Numeric........  Code=04.                                             
                 Sequence No.......................................         5-10  Numeric........  Right justified, zero filled, see general instruction
                                                                                                    3.                                                  
4..............  Contract ID.......................................        11-18  Character......  See general instruction 6(b).                        
5..............  Request ID........................................        19-25  Numeric........  See specific instruction 1.                          
35.............  Delivery Point ID.................................        26-45  Character......  See specific instruction 4 and note 3.               
38.............  Billing Period....................................        46-65  Character......  The billing period during which the discounted rate  
                                                                                                    was collected.                                      
39.............  Duration of Discount..............................        66-67  Numeric........  Number of days in the billing period the discount was
                                                                                                    offered or provided.                                
14.............  Shipper...........................................       68-107  Character......  Name of the shipper receiving storage service.       
18.............  Shipper Type......................................          108  Numeric........  Code=1, LDC/distributor; code=2, interstate pipeline;
                                                                                                    code=3, intrastate pipeline; code=4, end user;      
                                                                                                    code=5, producer; code=6, marketer; code=7, other,  
                                                                                                    (specify in footnote).                              
42.............  Maximum Rate for Storage Capacity.................      109-118  Numeric........  (Cents/MMbtu); format f(10,2); see specific          
                                                                                                    instruction 5 for definition.                       
43.............  Maximum Rate for Maximum Storage Withdrawal             119-128  Numeric........  (Cents/MMbtu); format f(10,2); see specific          
                  Quantity.                                                                         instruction 5 for definition                        
44.............  Maximum Storage Injection Rate....................      129-138  Numeric........  (Cents/MMbtu); format f(10,2); see specific          
                                                                                                    instruction 5 for definition.                       
45.............  Maximum Storage Withdrawal Rate...................      139-148  Numeric........  (Cents/MMbtu); format f(10,2); see specific          
                                                                                                    instruction 5 for definition.                       
46.............  Discounted Rate For Storage Capacity..............      149-158  Numeric........  (Cents/MMbtu); format f(10,2); see specific          
                                                                                                    instruction 6 for definition                        
47.............  Discounted Rate For Maximum Storage Withdrawal          159-168  Numeric........  (Cents/MMbtu); format f(10,2); see specific          
                  Quantity.                                                                         instruction 6 for definition.                       
48.............  Discounted Storage Injection Rate.................      169-178  Numeric........  (Cents/MMbtu); format f(10,2); see specific          
                                                                                                    instruction 6 for definition                        
49.............  Discounted Storage Withdrawal Rate................      179-188  Numeric........  (Cents/MMbtu); format f(10,2); see specific          
                                                                                                    instruction 6 for definition.                       
50.............  Discounted Storage Capacity Volume................      189-198  Numeric........  (MMbtu).                                             
51.............  Discounted Maximum Storage Withdrawal Quantity....      199-208  Numeric........  (MMbtu).                                             
52.............  Discounted Storage Injection Volume...............      209-218  Numeric........  (MMbtu).                                             
53.............  Discounted Storage Withdrawal Volume..............      219-228  Numeric........  (MMbtu).                                             
                 Posting Date......................................      229-234  Numeric........  (YYMMDD), year, month, and day entry is posted on    
                                                                                                    pipeline's electronic bulletin board.               
                 Footnote..........................................          235  Numeric........  Code=1, footnote is provided for this record; Code=0,
                                                                                                    no footnote provided.                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note 3: This record is filed for each delivery point actually used during the billing period reported. Only transactions actually discounted should be  
  reported.                                                                                                                                             

(5) The Narrative Record

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Character                                                                         
    Item No.                            Item                           position      Data type                            Comments                      
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 Schedule ID.......................................          1-2  Character......  Sch=X1.                                              
                 Record ID.........................................          3-4  Numeric........  Code=05                                              
                 Sequence No.......................................         5-10  Numeric........  Right justified, zero filled, see general instruction
                                                                                                    3.                                                  
                 Text ID...........................................           11  Numeric........  See note 4.                                          
                 Text..............................................       12-143  Character......  See note 5.                                          
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note 4: Character positions 12-143 are to be used to enter free form text. The ``Text ID'' is the corresponding code as set forth below which identifies
  the required information.                                                                                                                             
                                                                                                                                                        
Text ID: 1. Required Information: A complete list of operating personnel and facilities shared by the interstate natural gas pipeline and any affiliated
  marketing or brokering company (or blanket sales operating unit).                                                                                     
Text ID: 2. Required Information: The procedures used to address and resolve complaints by shippers and potential shippers.                             
                                                                                                                                                        
Note 5: A total of 132 character positions are provided for entering footnote text. If the respondent chooses to enter information in less than the 132 
  allowed character positions, the information should be left justified and the remainder of the record (line) should be blank filled through character 
  position 255.                                                                                                                                         

(6) The Footnotes Record

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Character                                                                         
    Item No.                            Item                           position      Data type                            Comments                      
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 Schedule ID.......................................          1-2  Character......  Sch=X1.                                              
                 Record ID.........................................          3-4  Numeric........  Code=06.                                             
                 Sequence No.......................................         5-10  Numeric........  Right justified, zero filled, see general instruction
                                                                                                    3.                                                  
                 Reference No......................................        11-23  Numeric........  Reference number for record being footnoted see      
                                                                                                    general instruction 4.                              
                 Footnote Text.....................................       24-155  Character......  See note 6.                                          
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note 6: A total of 132 character positions are provided for entering footnote text.                                                                     

[FR Doc. 94-31 Filed 1-3-94; 8:45 am]
BILLING CODE 6717-01-P