[Federal Register Volume 59, Number 152 (Tuesday, August 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18871]


[[Page Unknown]]

[Federal Register: August 9, 1994]


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DEPARTMENT OF ENERGY
18 CFR Parts 342, 346, 347, 357, and 385

[Docket No. RM94-2-000]

 

Cost-of-Service Filing and Reporting Requirements for Oil 
Pipelines; Notice of Proposed Rulemaking

July 28, 1994.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission is proposing to 
revise the information reported by oil pipelines in their Form No. 6, 
Annual Report of Oil Pipeline Companies, and to amend its regulations 
to adopt filing requirements for cost-of-service rate filings by oil 
pipelines.

DATES: Comments are due no later than September 8, 1994.

ADDRESSES: An original and 14 copies of written comments must be filed. 
All filings should refer to Docket No. RM94-2-000 and should be 
addressed to Office of the Secretary, Federal Energy Regulatory 
Commission, 825 North Capitol Street, NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT:
Harris S. Wood, Office of the General Counsel, Federal Energy 
Regulatory Commission, 825 North Capitol Street, NE., Washington, DC 
20426, (202) 208-0224.

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 an 1 stop bit. CIPS can also be accessed at 9600 bps by dialing 
(202) 208-1781. The full text of this proposed rule 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) proposes to 
revise the information reported by oil pipelines in their FERC Form No. 
6, Annual Report of Oil Pipeline Companies (Form No. 6), and to 
establish filing requirements for cost-of-service rate filings by oil 
pipelines. The Commission also proposes to issue rules for oil 
pipelines performing depreciation studies. Finally, the Commission 
proposes to require oil pipelines to file Form No. 6 on an electronic 
medium in addition to a paper filing. All these changes are proposed to 
become effective January 1, 1995, concurrently with the new regulations 
promulgated by Order No. 561.\1\
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    \1\Revisions to Oil Pipeline Regulations Pursuant to Energy 
Policy Act, Order No. 561, III FERC Stats. & Regs. 30,985 (1993); 
Order on Rehearing, Order No. 561-A, 68 FERC paragraph 61,138 
(1994), issued concurrently with this Notice.
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I. Background

    In Order No. 561, issued by the Commission on October 22, 1993, the 
Commission established an indexing methodology to be used by oil 
pipelines as the generally applicable and simplified methodology for 
regulating oil pipeline rates on or after January 1, 1995. The indexing 
methodology will establish ceilings on oil pipeline rates. The 
Commission also recognized that there might be instances where 
pipelines using the indexing methodology to establish ceilings on their 
rates could substantially underrecover their prudent costs. The 
Commission provided the opportunity for pipelines to seek an exception 
to indexing in those instances. Further, the Commission provided that 
rates for new services could be established either through negotiation 
or by use of a cost-of-service methodology.\2\
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    \2\18 CFR Sec. 342.2.
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    In Order No. 561, as modified by Order No. 561-A, the Commission 
has provided a balanced approach to the index ratemaking methodology. 
On the one hand, it would allow an oil pipeline to file for rates above 
the indexed ceiling when the pipeline can show that there is a 
substantial divergence between the costs to be experienced by the 
pipeline and the revenues that would be produced by indexed rates. On 
the other hand, it would allow challenges to an oil pipeline's proposed 
indexed rates based on allegations that the indexed rates would produce 
increased revenues substantially in excess of the pipeline's actual 
increase in costs.\3\ The Commission also recognized that cost-of-
service rate filing information would be necessary for interested 
parties to decide whether to challenge proposed cost-of-service rates, 
and that Form No. 6 might need to be revised to enable effective cost-
based challenges to indexed rates.
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    \3\As noted in Order No. 561-A, the Commission is requiring that 
there be a substantial divergence between actual costs and rates to 
allow for efficiency gains that may occur.
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    The Commission initiated this proceeding as a companion to Order 
No. 561 to inquire into the cost information that oil pipelines should 
include with their cost-of-service rate filings and in their annual 
Form No. 6 reports. The Commission thus issued a Notice of Inquiry 
(NOI)\4\ to solicit comments on the appropriate information to be 
included by oil pipelines with their cost-of-service rate filings and 
whether it is necessary to revise the information reported by oil 
pipelines in Form No. 6. The Commission further solicited comments on 
whether and how cost-of-service ratemaking might be streamlined.\5\
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    \4\IV FERC Stats. & Regs. 35,528, entitled Cost-of-Service 
Filing and Reporting Requirements for Oil Pipelines.
    \5\In Docket No. RM94-1-000, Market-Based Ratemaking for Oil 
Pipelines, the Commission solicited comments on whether to continue 
to permit oil pipelines to seek market based rates and, if so, the 
appropriate standards for making a determination that a pipeline 
lacks significant market power. This matter is the subject of a 
separate notice of proposed rulemaking, issued contemporaneously.
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    Comments and/or reply comments were received from six oil 
pipelines,\6\ one shipper,\7\ four trade associations representing 
either pipelines or shippers,\8\ and the State of Alaska. These 
comments indicated a need for revising Form No. 6 in many respects, as 
discussed below. While the Commission has not had specific filing 
requirements for rate changes since it began regulating oil pipelines 
in 1977,\9\ the comments generally supported a specific set of 
regulations for cost-of-service rate filings. However, there was no 
consensus on what those regulations should contain.
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    \6\ARCO Pipe Line Company, Four Corners Pipeline Company and 
ARCO Transportation Alaska, Inc. (collectively, ARCO); Williams Pipe 
Line Company (Williams); Marathon Pipe Line Company (Marathon); 
CITGO Pipeline Company (CITGO); Badger Pipe Line Company (Badger); 
Kaneb P/L Operating Partnership, L.P. (Kaneb); and Lakehead Pipe 
Line Company (Lakehead).
    \7\Chevron U.S.A. Products Company (Chevron).
    \8\Association of Oil Pipe Lines (AOPL) representing pipelines; 
and the Petrochemical Energy Group (PEG), the Independent Petroleum 
Association of America (IPAA), and the National Counsel of Farmer 
Cooperatives (NCFC), representing shippers.
    \9\Jurisdiction of oil pipelines was transferred from the 
Interstate Commerce Commission to the Commission in 1977. See 
Department of Energy Organization Act, 42 U.S.C. 7101 (1988).
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    Upon review of the comments, the Commission proposes to revise and 
update Form No. 6 so that the information reported by oil pipelines 
will enable shippers to analyze oil pipeline cost changes to determine 
whether to challenge indexed rate filings, and enable the Commission to 
monitor the effectiveness of the index in reflecting cost changes 
experienced by pipelines. The Commission also proposes to establish, 
through regulations, the specific filing requirements for cost-of-
service filings for oil pipelines to conform to the Opinion No. 154-B 
methodology.\10\
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    \10\Opinion No. 154-B methodology is derived from the 
Commission's opinions in Williams Pipe Line Company, Opinion No. 
154-B, 31 FERC 61,377 (1985), on rehearing, Opinion No. 154-C, 
Williams Pipeline Company, 33 FERC 61,327 (1985); and ARCO Pipe 
Line Company, Opinion No. 351, 52 FERC 61,055 (1990), on rehearing, 
Opinion No. 351-A, ARCO Pipe Line Company, 53 FERC 61,398 (1990).
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II. Public Reporting Burden

    The Commission estimates the public reporting burden for the 
collections of information under the proposed rule will be reduced for 
Form No. 6 by approximately 7 percent and will, in effect, remain 
unchanged for rate filings, since the Commission proposes to codify the 
information to be provided which the Commission's staff has requested 
of oil pipelines for cost-of-service rate filings in the past. The 
information will be collected on Form No. 6, ``Annual Report of Oil 
Pipeline Companies'' and FERC-550, ``Oil Pipeline Rates: Tariff 
Filings.''\11\ These estimates include the time for reviewing 
instructions, researching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. The current annual reporting burden 
associated with these information collection requirements is as 
follows:

    \11\FERC-550 is the designation covering oil pipeline tariff 
filings made to the Commission.
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Form No. 6: 22,200 hours, 148 responses, and 148 respondents; and
FERC-550: 5,350 hours, 535 responses, and 140 respondents.

    The proposed rule will reduce the existing reporting burden 
associated with Form No. 6 by an estimated 1480 hours annually, or an 
average of 10 hours per response based on an estimated 148 responses. 
This estimate includes the addition of two new schedules, the 
elimination of several schedules, and increasing the reporting 
thresholds for which oil pipelines must analyze and report certain 
data.
    Comments regarding these burden estimates or any other aspect of 
these collections of information, including suggestions for reducing 
this burden, can be sent to the Federal Energy Regulatory Commission, 
941 North Capitol Street, N.E., Washington, DC 20426 [Attention: 
Michael Miller, Information Services Division, (202) 208-1415]; and to 
the Office of Information and Regulatory Affairs of OMB (Attention: 
Desk Officer for Federal Energy Regulatory Commission), FAX: (202) 395-
5167.

III. Overview

    Under Sec. 342.4(a) of the regulations as promulgated by Order No. 
561-A, a pipeline can make a cost-of-service rate filing to show that 
there is a substantial divergence between the actual costs experienced 
by the carrier and the revenues which will be realized from ceiling 
rates resulting from application of the index.\12\ A shipper may 
protest an indexed rate change where it can show a significant 
discrepancy between the rate change filed and the change in the 
pipeline's costs in the interim since the last rate change.\13\
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    \12\18 CFR Sec. 342.4(a).
    \13\18 CFR Sec. 343.2(c)(1).
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    The NOI requested comments on how standard information might be 
collected and made available to provide a minimum adequate basis for 
comparing changes in a pipeline's rates and costs, without requiring 
unduly burdensome data filings by the pipelines. The goal was to 
develop a final rule that would be supported by a consensus of the oil 
pipeline industry and its customers. Some pipelines' comments urged 
adoption of a stand-alone costing methodology,\14\ while others 
indicated that the Commission should continue to use the Opinion No. 
154-B methodology.\15\ Shippers and the State of Alaska also urged 
retention of the Opinion No. 154-B methodology.\16\ Some conmmenters 
also suggested modifications to the data contained in Form No. 6.\17\
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    \14\AOPL, Marathon.
    \15\Williams, ARCO.
    \16\See, PEG and NCFC comments and reply comments.
    \17\AOPL, Williams, ARCO, Marathon, PEG, Alaska, and Chevron.
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    In view of the lack of a consensus among the parties filing 
comments and the absence of any persuasive reasons for changing the 
existing cost-based methodology, the Commission will continue to use 
the Opinion No. 154-B ratemaking methodology as reflected in the 
proposed regulations. The Commission proposed cost-of-service rate 
filing requirements that are intended to include all the information 
necessary to support a rate filing under Opinion No. 154-B. As for the 
historical base data in Form No. 6, the Commission proposes changes 
that are intended to permit a first level analysis of the relation of a 
proposed change in rates under the indexing methodology to the changes 
in cost actually experienced by a pipeline. They also are intended to 
provide a basis for a Commission determination of whether a protest has 
merit.

IV. The Proposed Rule

A. Revisions to Form No. 6

1. Proposed Changes to Conform With Order No. 561
    Form No. 6 should contain information that will permit its use for 
a number of purposes: developing initial rates for new service, 
reviewing changes in rates made by use of the index, monitoring 
existing rages, and analyzing and auditing finances. At present, the 
primary focus of Form No. 6 is on financial accounting information that 
is gathered based on accounting principles which are different in some 
respects from the ratemaking principles used to establish rates for oil 
pipelines. To serve as a tool to evaluate the performance of the index 
and future changes in oil pipeline rates using the index methodology, 
Form No. 6 should be revised to include additional information.
    Revisions to Form No. 6 are needed to provide at least a 
preliminary basis for shipper assessments of filed rate changes under 
Order No. 561. Form No. 6 data should be complete enough to enable an 
evaluation of whether a proposed rate change substantially exceeds the 
pipeline's changes in costs. As currently structured, Form No. 6 does 
not provide sufficient information to do this.
    Only limited additional information would be needed in Form No. 6 
to permit adequate preliminary review of a pipeline's cost-of-service 
showings, and to permit shipper comparison of indexed rate changes with 
changes in costs incurred. A single new schedule is proposed to be 
added to Form No. 6, showing basic information needed for a review of 
rate filings made within the index cap. The proposed new schedule, 
appearing as page 700 of Form No. 6, would require each pipeline 
company to report, as of the end of the reporting year and the 
immediately preceding year, its Total Annual Cost of Service (as 
calculated under the Order No. 154-B methodology), operating revenues, 
and throughput in barrels and barrel-miles. This schedule should permit 
a shipper to compare proposed changes in rates against the change in 
the level of a pipeline's cost of service. It should also permit a 
shipper to compare the change in a shipper's individual rate with the 
change in the pipeline's average company-wide barrel-mile rate. The 
proposed new schedule is set forth as a part of Appendix A to this 
NOPR. Underlying calculations of and supporting data for these figures 
would not be required to be reported in Form No. 6.
    The use of trended original cost to establish a rate base for oil 
pipelines, as required by the Opinion No. 154-B methodology, entails 
complex calculations to derive annual figures for equity and equity 
returns for ratemaking purposes. This calculation will differ from the 
book equity figures contained in Form No. 6, which are required for 
financial reporting purposes. In the Commission's view, to require the 
display of these calculations in Form No. 6 would be cumbersome and not 
be of significant benefit in a shipper's determination of whether to 
protest a pipeline's indexed rate filing.\18\ In any event, if a 
shipper protest results in a cost-of-service justification by the 
pipeline, the underlying calculations would be available.
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    \18\For a discussion of the differences in the equity and equity 
return figures contained in Form No. 6 and the use of those figures 
for ratemaking purposes under the Opinion No. 154-B methodology, see 
Supplemental Brief of AOPL filed in Docket No. RM93-11-000 on 
January 21, 1994, at 11-12.
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    The changes proposed to Form No. 6 are proposed to be effective for 
reporting year 1995. The 1995 Form No. 6 would be filed on or before 
March 31, 1996. The new schedule appearing on page 700 therefore would 
not be required for Form No. 6 filings until March 31, 1996, for 
reporting year 1995. In the interim, the Commission proposed that a 
verified copy of this new schedule for calendar years 1993 and 1994 be 
prepared separately and filed concurrently with the first indexed rate 
change filing made by a pipeline after January 1, 1995, or by March 31, 
1995, whichever is earlier. For index rate change filings made early in 
1995, complete data may not be available. In this instance, a 1994 
schedule shall be prepared utilizing the most recently available data 
annualized for 1994. By March 31, 1995, a new 1994 schedule must be 
submitted, using the actual 1994 data.
    This would provide shippers with the necessary information for an 
analysis of proposed indexed rate changes after January 1, 1995, the 
effective date of the regulations in Order No. 561. In addition, as 
discussed below, the information on this page would become part of the 
Commission's evaluation of the effectiveness of the index. Accordingly, 
the Commission proposes to amend Sec. 342.3(b) of the regulations to 
require a verified copy of a schedule containing the information 
contained on page 700 for calendar years 1993 and 1994 to be filed with 
the first indexed rate change filing made after January 1, 1995, or by 
March 31, 1995, whichever is earlier.
    In Order No. 561, the Commission stated it would monitor the 
effectiveness of the index in tracing industry costs. These reviews 
will occur every five years, commencing July 1, 2000.\19\ The proposed 
page 700, together with other information contained in Form No. 6, will 
permit the Commission to use the Form No. 6 data to help fulfill this 
commitment. Since the Total Cost of Service, for example, is derived 
from all of the components of a pipeline's cost and capital properties, 
this figure, when used in conjunction with other Form No. 6 
information, will provide details on general trends affecting each 
company.
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    \19\III FERC Stats. & Regs. 30,985 (1993), at 30,947.
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2. Other Proposed Changes to Form No. 6
    Since the regulatory responsibility for oil pipelines was 
transferred to this Commission from the Interstate Commerce Commission 
in 1977, only cosmetic changes have been made to Form No. 6, other than 
the addition of a Statement of Cash Flow. In addition to the changes 
that are proposed to conform with Order No. 561, as discussed above, 
there are other changes that should make Form No. 6 a more useful 
report.
    The Commission asked, in the NOI, what existing Form No. 6 
reporting requirements (e.g., data or cost elements, schedules, or 
instructions) should be eliminated or modified. Alaska recommended that 
the Commission eliminate all schedules in Form No. 6 that are unrelated 
to a pipeline's cost of service. It suggested that the Commission 
require pipeline companies to report information separately for each 
pipeline or system for which a cost of service is calculated. Alaska 
also suggested that the Commission require pipelines to calculate and 
report expense items using their cost-of-service methods in addition to 
the method used for financial reporting.\20\ PEG similarly suggested 
that the Commission adjust the Form No. 6 filing requirements so that 
the data in Form No. 6 conforms to the principles of cost-of-service 
ratemaking, and suggested that the Commission require pipelines to 
conform their Form No. 6 data to embody the principles set forth in the 
initial decision in Southern Pacific Pipe Lines, Inc., 39 FERC 63,018 
(1987),\21\ and that the Commission require pipelines to calculate and 
report data consistent with that initial decision.\22\
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    \20\Alaska comments, pp. 5-8.
    \21\Settlement in this case was reached before the Commission's 
review of the initial decision.
    \22\PEG comments, pp. 3-9.
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    AOPL suggested that numerous schedules in Form No. 6 be changed or 
eliminated to bring it up to date and to facilitate the Commission's 
review of industry cost experience for purposes of the index 
mechanism.\23\ ARCO suggested that several schedules, such as those 
relating to accounts receivable and accounts payable, the miles of pipe 
operated at the end of the year, and statistics of operation, be 
eliminated to lessen the reporting burden.\24\ Marathon suggested 
extension changes to Form No. 6, such as the establishment of an 
electronic spreadsheet and filing capability, use of comparative 
information for certain accounts, and consolidation or elimination of 
certain schedules.\25\
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    \23\AOPL comments, pp. 42-47.
    \24\ARCO comments, p. 13, n. 24.
    \25\Marathon comments, pp. 7-8.
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    Based on the comments and review of the current schedules in Form 
No. 6, the Commission proposes several changes to the annual report for 
oil pipelines. To simplify the Form No. 6 data, the Commission proposes 
to delete information not relevant to the Commission's regulatory 
responsibilities under the ICA. The Commission also proposes to modify 
certain Form No. 6 financial statements to a comparative format by 
requiring two years of data to enhance their usefulness and to conform 
the Form No. 6 data formats to the formats of FERC Nos. 1\26\ and 2\27\ 
(Form Nos. 1 and 2) for electric utilities and natural gas pipeline 
companies, respectively.
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    \26\Annual Report of Major Electric Utilities, Licensees, and 
Others.
    \27\Annual Report of Natural Gas Companies.
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    The Commission proposes to change the format of several schedules 
to accommodate electronic filing and reporting requirements for Form 
No. 6 similar to that used for Form No. 1. The Commission proposes to 
require electronic filing beginning with reports filed for the 1995 
reporting year (i.e, reports due on or before March 31, 1996). 
Electronic filing of Form No. 6 information, similar to that for Form 
No. 1, should reduce the reporting burden for both large and small 
pipelines. Financial information reported electronically should also 
aid the Commission in conducting reviews of the pipeline companies and 
the rates charged.
    The Commission also proposes to eliminate unneeded schedules or 
individual data elements, and to modify certain schedules so they will 
contain more useful and relevant data. A sample copy of the pages in 
Form No. 6 as proposed to be modified are attached as Appendix A.
    The specific changes the Commission proposes are:

Corporate Control Over Respondent--Page 102

    Some format modifications are proposed for electronic reporting 
purposes to better report vertical control of respondent from the 
immediate parent to ultimate controlling parent company.

Companies Controlled by Respondent--Page 103

    This is a new schedule proposed to be added a new page 103, similar 
to the schedules currently in Forms Nos. 1 and 2, to report all 
subsidiaries directly controlled by a respondent.

Principal General Officers--Page 104

    The Commission proposes that ``Office Address'' be replaced by 
``Salary,'' to make the format the same as Form Nos. 1 and 2.

Directors--Page 105

    The Commission proposes to modify this schedule to delete the 
instructions at the top of the page and information required at lines 
21 through 23. The Commission proposes to replace the deleted material 
with similar instructions at the top of the schedule and to insert 
``Title'' in addition to ``Name of Director'' in column (a). This will 
make the format the same as Form Nos. 1 and 2.

Voting Powers of Security Holders--Pages 106 and 107

    The Commission proposes to delete this schedule because it is not 
needed for Commission regulatory purposes.

Important Changes During the Year--Pages 108 and 109

    The Commission proposes that the current format be replaced with 
instructions similar to Form Nos. 1 and 2.

Comparative Balance Sheet Statement--Pages 110, 111 and 113

Income Statement--Page 114

Appropriated Retained Income--Page 118

Unappropriated Retained Income Statement--Page 119

Statement of Cash Flows--Pages 120 and 121

    The Commission proposes to modify these financial statements to 
require that data be presented on a comparative basis (i.e., for two 
years) to enhance the usefulness of these financial statements. The 
Commission proposes to delete from page 119 the schedule showing 
Dividend Appropriations of Retained Income, because it is not needed 
for Commission regulatory purposes.

Working Capital--Page 117

    The Commission proposes to delete this schedule because it is not 
needed for Commission regulatory purposes.

Notes to Financial Statements--Pages 122 and 123

    The Commission proposes to add new instructions which would require 
statements of a company's accounting practices and policies (with 
specific reference to such matters as income taxes, pensions and post-
retirement benefits); and significant matters concerning acquisitions 
and sales, significant contingencies and liabilities existing at the 
end of the year, and other matters that will materially affect company 
operations.

Receivables From Affiliated Companies--Page 200

    The reporting thresholds in Instruction No. 2 are proposed to be 
raised from $100,000 to $500,000.

General Instructions Concerning Schedules 202 Through 205--Page 201

    The Commission proposes to modify these instructions to conform 
with Form Nos. 1 and 2 by deleting the subclassifications presently 
required.

Other Investments--Pages 206 and 207

Securities, Advances and Other Intangibles Owned or Controlled Through 
Nonreporting Carrier and Noncarrier Subsidiaries--Pages 208 and 209

    The Commission proposes to delete these schedules because they are 
not needed for Commission regulatory purposes.

Instructions for Schedule 212-213--Page 211

    The Commission proposes to modify the footnote to Instruction No. 3 
to require that a respondent identify the original cost of property 
purchased or sold. This information is useful in the analysis of 
carrier property transactions between oil pipeline companies. In 
addition, the reporting thresholds in Instruction Nos. 3 and 5 are 
proposed to be raised from $50,000 and $100,000 to $250,000 and 
$500,000, respectively.

Amortization Base and Reserve--Pages 218 and 219

    The reporting thresholds in Instruction No. 4 are proposed to be 
raised from $10,000 to $100,000.

Noncarrier Property--Page 220

    The reporting thresholds in Instruction No. 2 are proposed to be 
raised from $100,000 to $250,000.

Other Deferred Charges--Page 221

    The reporting thresholds in the instruction are proposed to be 
raised from $100,000 to $250,000.

Payables to Affiliated Companies--Page 225

    The reporting thresholds in Instruction Nos. 2 and 3 are proposed 
to be raised from $100,000 to $250,000.

Analysis of Federal Income and Other Taxes Deferred--230 and 231

    The Commission proposes to replace the current reporting format 
with instructions that require an analysis of the respondent's current 
and deferred income tax liability.

Capital Stock--Pages 250 and 251

    The Commission proposes that the current schedules be replaced with 
schedules and instructions similar to Form No. 2.

Operating Expense Accounts--Pages 302 Through 304

    The Commission proposes to delete ``Operating Ratio'' at line 23 
because it is not needed for Commission regulatory purposes.

Interest and Dividend Income--Page 336

    The Commission proposes to delete the reference to Schedule pages 
206 to 207 at line 2 because these pages are proposed to be eliminated.

Miscellaneous Items in Income and Retained Income Accounts for the 
Year--Page 337

    The reporting thresholds in Instruction No. 2 are proposed to be 
raised from $100,000 to $250,000.

Employees and Their Compensation--Page 350

    The Commission proposes to replace the present number of classes on 
this schedule with only four work classes.

Payments for Services Rendered by Other Than Employees--Page 351

    The reporting thresholds in Instruction No. 1 are proposed to be 
raised from $30,000 to $100,000.
    Finally, since the Commission proposes to require oil pipelines to 
file Form No. 6 on an electronic medium, in addition to paper filing, 
commencing with reporting year 1995 (reports due March 31, 1996), 
Sec. 385.2011 of Part 385 of the Code of Federal Regulations is 
proposed to be changed. The formats for electronic filing and the paper 
copy would be obtainable at the Federal Energy Regulatory Commission, 
Division of Public Information, 825 North Capitol Street, N.E., 
Washington, D.C. 20426. It is anticipated that the electronic formats 
would be established by January 1, 1996, after consideration of the 
views of all interested parties.

B. Cost-of-Service Filing Requirements

1. Summary
    In the NOI in this docket, the Commission asked whether there are 
ways to simplify and streamline the Commission's current cost-of-
service methodology to aid review of a pipeline's over-all revenue 
requirement. As discussed earlier, a number of comments were received 
on the methodology, but no consensus could be ascertained from the 
comments. Therefore, the Commission will continue to require the use of 
the Opinion No. 154-B cost-of-service methodology. The proposed filing 
requirements are designed to implement this requirement.
    As with present rate filings, and as required by Order No. 561, a 
pipeline seeking to change rates is required to file a transmittal 
letter containing the previous rate for the same movement or service, 
the applicable ceiling rate for the movement in question, and the new 
proposed tariff.\28\ This is all that is required to be filed for a 
rate change within the index.
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    \28\18 CFR 342.3(b).
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    The Commission proposes to require a pipeline to file additional 
information if it is filing for a cost-of-service rate above the 
indexed rate change, or as support for an initial rate. This 
information should permit a pipeline to establish an initial case for 
cost-of-service rates. The additional filing requirements should 
provide sufficient information for a preliminary cost-of-service 
showing and will include an up-to-date overall cost of service for the 
pipeline, calculated in accordance with Opinion No. 154-B methodology. 
If the Commission institutes an investigation into a pipeline's rates, 
additional information may be required of the pipeline. The new filing 
requirements are set forth in proposed Part 346.
    Part 346 also contains the Commission's proposed definition of the 
terms ``base period'' and ``test period.'' The definitions of these 
terms are consistent with the principles contained in the definitions 
of similar terms in Section 154.63 of the Regulations under the Natural 
Gas Act,\29\ applicable to natural gas pipeline companies.
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    \29\18 CFR Sec. 154.63(e)(2)(i) (1993).
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2. The Supporting Statements
    The oil pipeline must file the following statements and supporting 
work papers to support either an initial rate developed on a cost-of-
service basis or a change in rates using the cost-of-service 
methodology. Such filing is proposed to be in both electronic and paper 
formats.

Statement A--Total Cost of Service

    This statement would show the calculation of the Total Cost of 
Service for a pipeline.

Statement B--Operation and Maintenance

    This statement would report the operation, maintenance, 
administrative and general expenses, and depreciation and amortization 
expenses.

Statement C--Overall Return on Rate Base

    This statement would show the derivation of the return on rate base 
consisting of deferred earnings, equity and debt ratios, weighted cost 
of capital, and costs of debt and equity.

Statement D--Income Taxes

    This statement would show the calculation of the Income Tax 
Allowance.

Statement E--Rate Base

    This statement would show the calculation of the return rate base 
required by Opinion No. 154-B methodology to derive the cost of 
service.

Statement F--Allowance for Funds Used During Construction

    This statement would show the calculation of the Allowance for 
Funds Used During Construction (AFUDC).
    Details of the various statements and supporting schedules are 
found in the proposed regulations.

C. Other Proposed Changes

Depreciation Studies
    In Order No. 561, the Commission stated that it would be the 
pipelines' responsibility in the future to perform depreciation studies 
to establish revised depreciation rates for oil pipelines. The 
Commission further stated that the specific requirements for such 
studies would be developed in this proceeding.\30\
---------------------------------------------------------------------------

    \30\III FERC Stats. & Regs, 30,985 (1993), at 30,967-8.
---------------------------------------------------------------------------

    In new Part 347 of the Commission's regulations, the Commission 
proposes to require the following information to justify a request for 
either new or changed carrier account depreciation rates:
    a. A brief summary of the general principles on which the proposed 
depreciation rates are based (e.g., why the economic life of the 
pipeline section is less than the physical life).
    b. An explanation of the organization, ownership, and operation of 
the pipeline.
    c. A table of the proposed depreciation rates by primary carrier 
account.
    d. An explanation of the average remaining life on a physical basis 
and on an economic basis.
    e. The following specific background data would be submitted 
concurrently with any request for new or changed property account 
depreciation rates for oil pipelines:\31\
---------------------------------------------------------------------------

    \31\All of the information listed here may not be appropriate 
and thus could be omitted from the filing. For example, if the 
pipeline carries only crude oil, information requested concerning 
petroleum products would not be needed.
---------------------------------------------------------------------------

    (1) Up-to-date engineering maps of the pipeline including the 
location of all gathering facilities, trunkline facilities, terminals, 
interconnections with other pipeline systems, and interconnections with 
refineries/plants. These maps must indicate the direction of flow.
    (2) A brief description of the pipeline's operations and an 
estimate of any major near-term additions or retirements including the 
estimated costs, location, reason, and probable year of transaction.
    (3) The present depreciation rates being used, by account.
    (4) For the most current year available and for the two prior 
years, a breakdown of the throughput (by type of product, if 
applicable) received from each source (e.g., name of well, pipeline 
company) at each receipt point and throughput delivered at each 
delivery point.
    (5) The daily average throughput (in barrels per day) and the 
actual average capacity (in barrels per day) for the most current year, 
by line section.
    (6) A list of shippers and their associated receipt points, 
delivery points, and volumes (in barrels) by type of product (where 
applicable) for the most current year.
    (7) For each primary carrier account, the latest month's book 
balances for gross plant and accumulated reserve for depreciation.
    (8) An estimate of the remaining life of the system (both gathering 
and trunk lines) including the basis for the estimate.
    (9) For crude oil, a list of the fields or areas from which crude 
oil is obtained and the most recent estimated reserves, actual 
production for the previous three years, and five years of estimated 
future production.
    (10) If the proposed depreciation rate adjustment is based on the 
remaining physical life of the properties, the Service Life Data Form 
(FERC Form No. 73) through the most current year. This may only require 
an updating from the last year for which information was filed with the 
Commission.
    (11) Estimated salvage value of properties by primary carrier 
account.
    An oil pipeline company would be required to provide this, and any 
other information it deems pertinent, in sufficient detail to fully 
explain and justify its proposed rates. Any modifications, additions, 
and deletions to these data elements should be made to reflect the 
individual circumstances of the pipeline's properties and operations, 
and should be accompanied by a full explanation of why the 
modifications, additions, or deletions are being made.

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.\32\ The Commission 
has categorically excluded certain actions from these requirements as 
not having a significant effect on the human environment.\33\ The 
action proposed here is procedural in nature and therefore falls within 
the categorical exclusions provided in the Commission's 
regulations.\34\ Therefore, neither an environmental impact statement 
nor an environmental assessment is necessary and will not be prepared 
in this rulemaking.
---------------------------------------------------------------------------

    \32\Order No. 486, Regulations Implementing the National 
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Statutes 
and Regulations, Regulations Preambles 1986-1990 30,783 (1987).
    \33\18 CFR 380.4.
    \34\See 18 CFR Sec. 380.4(a)(2)(ii).
---------------------------------------------------------------------------

VI. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act (RFA)\35\ generally requires the 
Commission to describe the impact that a proposed rule would have on 
small entities or to certify that the rule will not have a significant 
economic impact on a substantial number of small entities. An analysis 
is not required if a proposed rule will not have such an impact.\36\ 
Most oil pipelines to whom the proposed rule would apply do not fall 
within the definition of small entity.\37\ In fact, the reporting 
thresholds for numerous of the revised schedules in FERC Form No. 6 are 
proposed to be raised, which may exclude certain small entities from 
completing those schedules. Consequently, pursuant to section 605(b) of 
the RFA, the Commission certifies that the proposed regulations, if 
promulgated, will not have a significant adverse impact on a 
substantial number of small entities.
---------------------------------------------------------------------------

    \35\5 U.S.C. Secs. 601-612 (1988)
    \36\Section 605(b)
    \37\Section 601(c) of the RFA defines a ``small entity'' as a 
small business, a small not-for-profit enterprise, or a small 
governmental jurisdiction. A ``small business'' is defined by 
reference to section 3 of the Small Business Act as an enterprise 
which is ``independently owned and operated and which is not 
dominant in its field of operation.'' 15 U.S.C. Sec. 632(a).
---------------------------------------------------------------------------

VII. Information Collection Requirements

    The Office of Management and Budget's (OMB) regulations at 5 C.F.R. 
Sec. 1320.13 (footnote) require that OMB approve certain information 
and recordkeeping requirements imposed by an agency. The information 
collection requirements in this proposed rule are contained in FERC-6 
``Annual Report of Oil Pipeline Companies'' (1902-0022) and FERC-550 
``Oil Pipeline Rates: Tariff Filings'' (1902-0089).
    The Commission uses the data collected in these information 
requirements to carry out its regulatory responsibilities pursuant to 
the Interstate Commerce Act (ICA), the Act of 1992, and delegations to 
the Commission from the Secretary of Energy. The Commission's Office of 
Pipeline Regulation uses the data for the analysis of all rates, fares, 
or charges demanded, charged, or collected by any common carriers in 
connection with the transportation of petroleum and petroleum products 
and also as a basis for determining just and reasonable rates that 
should be charged by the regulated pipeline company.
    The Office of Economic Policy and the Office of General Counsel use 
the data in their functions relating to the administration of the ICA 
and the Act of 1992. The Commission's Office of Chief Accountant uses 
the data collected in Form No. 6 to carry out its compliance audits and 
for continuous review of the financial conditions of regulated 
companies.
    Because of the proposed revisions to both FERC-550 and Form No. 6, 
and the expected reduction in public reporting burden of the latter, 
the Commission is submitting a copy of the proposed rule to OMB for its 
review and approval. Interested persons may obtain information on these 
reporting requirements by contracting 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 this rule can be sent to the 
Office of Information and Regulatory Affairs of OMB (Attention: Desk 
Officer for Federal Energy Regulatory Commission), Washington, DC 
20503, FAX: (202) 395-5167.

VIII. Comment Procedures

    Copies of this notice of proposed rulemaking can be obtained from 
the Office of Public Information, Room 3104, 941 North Capitol Street, 
NE., Washington, DC 20426. Any person desiring to file comments should 
submit an original and fourteen (14) copies of such comments to the 
Federal Energy Regulatory Commission, 825 North Capitol Street, NE., 
Washington, DC 20426 not later than 30 days after the date of 
publication of this notice of proposed rulemaking in the Federal 
Register.
    The full text of this notice of proposed rulemaking, excluding the 
revised Form No. 6 schedules, also is available through the Commission 
Issuance Posting System (CIPS), an electronic bulletin board service, 
which provides access to the text 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, communications software should be set 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. Paper copies of the Appendix may be obtained from the 
Office of Public Information. The complete text, excluding the revised 
Form No. 6 schedules, 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.

List of Subjects in 18 CFR Parts 342, 346, 347, and 357

    Pipelines, Reporting and recordkeeping requirements.

List of Subjects in 18 CFR Part 385

    Reporting and recordkeeping requirements.

    In consideration of the foregoing, the Commission gives notice of 
its proposal to amend Parts 342, 357, and 385, and to add parts 346 and 
347, chapter I, title 18, Code of Federal Regulations, as set forth 
below.

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

PART 342--OIL PIPELINE RATE METHODOLOGIES AND PROCEDURES

    1. The authority citation for Part 342 continues to read as 
follows:

    Authority: 5 U.S.C. 571-83; 42 U.S.C. 7101-7532; 49 App. U.S.C. 
1-85; 42 U.S.C. 7172 note.

    2. Sections 342.2(a), 342.3(b) and 342.4(a) are proposed to be 
revised as follows:


Sec. 342.2  Establishing initial rates.

* * * * *
    (a) Filing cost, revenue, and throughput data supporting such rate 
as required by part 346; or
* * * * *


Sec. 342.3  Indexing.

* * * * *
    (b) Information required to be filed with rate changes. The carrier 
must comply with part 341 of this chapter.
    (1) Carriers must specify in their letters of transmittal required 
in Sec. 341.2(c) of this chapter the rate schedule to be changed, the 
proposed new rate, the prior rate, and the applicable ceiling level for 
the movement. No other rate information is required to accompany the 
proposed rate change.
    (2) Carriers must file a verified copy of a schedule for calendar 
years 1993 and 1994 containing the information required by page 700 of 
the 1995 edition of FERC Form No. 6 concurrently with the first indexed 
rate change filing made by a carrier on or after January 1, 1995, or by 
March 31, 1995, whichever occurs first. If actual data are not 
available for calendar year 1994 when the rate change filing is made, 
the information for calendar year 1994 must be comprised of the most 
recently available actual data annualized for the year 1994. A schedule 
containing the information comprised of actual data for calendar year 
1994 must be filed not later than March 31, 1995.
* * * * *


Sec. 342.4  Other rate changing methodologies.

    (a) Cost-of-service rates. A carrier may change a rate pursuant to 
this section if it shows that there is a substantial divergence between 
the actual costs experienced by the carrier and the rate resulting from 
application of the index such that the rate at the ceiling level would 
preclude the carrier from being able to charge a just and reasonable 
rate within the meaning of the Interstate Commerce Act. A carrier must 
substantiate the cost incurred by filing the data required by part 346. 
A carrier that makes such a showing may change the rate in question, 
based upon the cost of providing the service covered by the rate, 
without regard to the applicable ceiling level under Sec. 342.3.
* * * * *
    3. In subchapter P, chapter I, title 18, Code of Federal 
Regulations, part 346 is proposed to be added to read as follows:

PART 346--OIL PIPELINE COST-OF-SERVICE FILING REQUIREMENTS

Sec.
346.1  Content of Filing for Cost-of-Service Rates.
346.2  Material in support of initial rates or change in rates.

    Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 1-27.


Sec. 346.1  Content of filing for cost-of-service rates.

    (a) If a carrier seeks to establish rates pursuant to 
Sec. 342.2(a), of this chapter, or if a carrier seeks to change rates 
pursuant to Sec. 342.4(a), of this chapter, it must file and provide 
supporting justification as set forth in this part.
    (b) The carrier must file a letter of transmittal which conforms to 
Secs. 341.2(c) and 342.4(a) of this chapter; the proposed tariff; and 
the statements and supporting workpapers required in Sec. 346.2.


Sec. 346.2  Material in support of initial rates or change in rates.

    A carrier which files for rates in accordance with Sec. 342.2(a) or 
Sec. 342.4(a) of this Chapter must file the following statements, 
schedules, and all supporting workpapers. The statements, schedules, 
and workpapers must be based upon an appropriate test period.
    (a) Base and test periods defined.
    (1) For a carrier which has been in operation for at least twelve 
months:
    (i) A base period must consist of 12 consecutive months of actual 
experience. The 12 months of experience must be adjusted to eliminate 
nonrecurring items (except minor accounts). The filing carrier may 
include appropriate normalizing adjustments in lieu of nonrecurring 
items.
    (ii) A test period must consist of a base period adjusted for 
changes in revenues and costs which are known and are measurable with 
reasonable accuracy at the time of filing and which will become 
effective within nine months after the last month of available actual 
experience utilized in the filing. For good cause shown, the Commission 
may allow reasonable deviation from the prescribed test period.
    (2) For a carrier which has less than 12 months' experience, the 
test period may consist of 12 consecutive months ending not more than 
one year from the filing date. For good cause shown, the Commission may 
allow reasonable deviation from the prescribed test period.
    (3) For a carrier which is establishing rates for new service, the 
test period will be based on a 12-month projection of costs and 
revenues.
    (b) Cost-of-service summary schedule. This schedule must contain 
the following information:
    (1) Total carrier cost of service for the test period.
    (2) Throughput for the test period in both barrels and barrels-
miles.
    (3) For filings in accordance with Sec. 342.4(a) of this chapter, 
the schedule must include the proposed rates and the rates which would 
be permitted under Sec. 342.3 of this chapter, and the revenues to be 
realized from both sets of rates.
    (c) Content of statements. Any cost-of-service rate filing must 
include supporting statements containing the following information for 
the test period.
    (1) Statement A--total cost of service. This statement must 
summarize the total cost of service for a carrier (operating and 
maintenance expense, depreciation and amortization, return, and taxes) 
developed from the supporting statements described below.
    (2) Statement B--operation and maintenance expense. This statement 
must set forth the operation, maintenance, administration and general, 
and depreciation expenses for the test period. Items used in the 
computations or derived on this statement must include operations, 
including salaries and wages, supplies and expenses, outside services, 
operating fuel and power, and oil losses and shortages; maintenance, 
including salaries and wages, supplies and expenses, outside services, 
and maintenance and materials; administrative and general, including 
salaries and wages, supplies and expenses, outside services, rentals, 
pensions and benefits, insurance, casualty and other losses, and 
pipeline taxes; and depreciation and amortization.
    (3) Statement C--overall return on rate base. This statement must 
set forth the rate base for return purposes from Statement E and must 
also state the claimed rate of return and the application of the 
claimed rate of return to the overall rate base. The claimed rate of 
return must consist of a weighted cost of capital, combining the rate 
of return on debt capital and the real rate of return on equity 
capital. Items used in the computations or derived on this statement 
must include deferred earnings, equity ratio, debt ratio, weighted cost 
of capital, and costs of debt and equity.
    (4) Statement D--income taxes. This statement must set forth the 
income tax computation. Items used in the computations or derived on 
this statement must show: return allowance, interest expense, return on 
equity rate base, accrued annual amortization or deferred earnings, 
depreciation on equity AFUDC, under/over-funded ADIT amortization 
amount, taxable income, tax factor, and income tax allowance.
    (5) Statement E--rate base. This statement must set forth the 
return rate base. Items used in the computations or derived on this 
statement must include beginning balances of the rate base at December 
31, 1983, working capital (including materials and supplies, 
prepayments, and oil inventory), accrued depreciation on carrier plant, 
accrued depreciation on rights of way, and accumulated deferred income 
taxes; and adjustments and end balances for original cost of 
retirements, interest during construction, AFUDC adjustments, original 
cost of net additions and retirements from land, original cost of net 
additions and retirements from rights of way, original cost of plant 
additions, original cost accruals for depreciation, AFUDC accrued 
depreciation adjustment, original cost depreciation accruals added to 
rights of way, net charge for retirements from accrued depreciation, 
accumulated deferred income taxes, changes in working capital 
(including materials and supplies, prepayments, and oil inventory), 
accrued deferred earnings, annual amortization of accrued deferred 
earnings, and amortization of starting rate base write-up.
    (6) Statement F--allowance for funds used during construction. This 
statement must set forth the computation of allowances for funds used 
during construction (AFUDC) including the AFUDC for each year 
commencing in 1984 and a summary of AFUDC and AFUDC depreciation for 
the years 1984 through the test year.
    (7) Statement G--revenues. This statement must set forth the gross 
revenues for the actual 12 months of experience as computed under both 
the presently effective rates and the proposed rates. If the presently 
effective rates are not at the maximum ceiling rate established under 
Sec. 342.4(a) of this chapter, then gross revenues must also be 
computed and set forth as if the ceiling rates were effective for the 
12 month period.
    4. In subchapter P, chapter I, title 18, Code of Federal 
Regulations, Part 347 is proposed to be added to read as follows:

PART 347--OIL PIPELINE DEPRECIATION STUDIES

Sec.
347.1  Material to support request for newly established or changed 
property account depreciation studies.

    Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 1-27.


Sec. 347.1  Material to support request for newly established or 
changed property account depreciation studies.

    (a) Means of filing. Filing of a request for new or changed 
property account depreciation rates must be made with the Secretary of 
the Commission. Filings made by mail must be addressed to the Federal 
Energy Regulatory Commission with the envelope clearly marked as 
containing ``Oil Pipeline Depreciation Rates.''
    (b) Number of copies. Carriers must file three paper copies of each 
request with attendant information identified below.
    (c) Transmittal letter. Letters of transmittal must give a general 
description of the change in depreciation rates being proposed in the 
filing. Letters of transmittal must also certify that the letter of 
transmittal (not including the information to be provided, as 
identified below) has been sent to each shipper and to each subscriber. 
If there are no subscribers, letters of transmittal must so state. 
Carriers requesting acknowledgement of the receipt of a filing by mail 
must submit a duplicate copy of the letter of transmittal marked 
``Receipt requested.'' The request must include a postage paid, self-
addressed return envelope.
    (d) Effectiveness of property account depreciation rates.
    (1) The proposed depreciation rates being established in the first 
instance must be used until they are either accepted or modified by the 
Commission. Rates in effect at the time of the proposed revision must 
continue to be used until the proposed revised rates are approved or 
modified by the Commission.
    (2) When filing for approval of either new or changed property 
account depreciation rates, a carrier must provide information in 
sufficient detail to fully explain and justify its proposed rates.
    (e) Information to be provided. The items delineated below are the 
data to be provided as justification for depreciation changes. 
Modifications, additions, and deletions to these data elements should 
be made to reflect the individual circumstances of the carrier's 
properties and operations.
    (1) A brief summary relating the general principles on which the 
proposed depreciation rates are based (e.g., why the economic life of 
the pipeline section is less then the physical life).
    (2) An explanation of the organization, ownership, and operation of 
the pipeline.
    (3) A table of the proposed depreciation rates by account.
    (4) An explanation of the average remaining life on a physical 
basis and on an economic basis.
    (5) The following specific background data must be submitted at the 
time of and concurrently with any request for the establishment of, or 
modification to, depreciation rates for carriers. If the information 
listed is not applicable, it may be omitted from the filing:
    (i) Up-to-date engineering maps of the pipeline including the 
location of all gathering facilities, trunkline facilities, terminals, 
interconnections with the other pipeline systems, and interconnections 
with refineries/plants. Maps must indicate the direction of flow.
    (ii) A brief description of the carrier's operations and an 
estimate of any major near-term additions or retirements including the 
estimated costs, location, reason, and probable year of transaction.
    (iii) The present depreciation rates being used by account.
    (iv) For the most current year available and for the two prior 
years, a breakdown of the throughput (by type of product, if 
applicable) received with source (e.g. name of well, pipeline company) 
at each receipt point and throughput delivered at each delivery point.
    (v) The daily average capacity (in barrels per day) and the actual 
average capacity (in barrels per day) for the most current year, by 
line section.
    (vi) A list of shippers and their associated receipt points, 
delivery points, and volumes (in barrels) by type of product (where 
applicable) for the most current year.
    (vii) For each primary carrier account, the latest month's book 
balances for gross plant and for accumulated reserve for depreciation.
    (viii) An estimate of the remaining life of the system (both 
gathering and trunk lines) including the basis for the estimate.
    (ix) For crude oil, a list of the fields or areas from which crude 
oil is obtained and the most recent estimated reserves, actual 
production for the previous three years, and five years of estimated 
future production.
    (x) If the proposed depreciation rate adjustment is based on the 
remaining physical life of the properties, a complete, or updated, if 
applicable, Service Life Date Form (FERC Form No. 73) through the most 
current year.
    (xi) Estimated salvage value of properties by account.

PART 357--ANNUAL SPECIAL OR PERIODIC REPORTS: CARRIERS SUBJECT TO 
PART I OF THE INTERSTATE COMMERCE ACT

    5. The authority citation for Part 357 is proposed to be revised to 
read as follows:

    Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 1-27 (1976).
    6. Section 357.2 is revised to read as follows:


Sec. 357.2  FERC Form No. 6, Annual Report of Oil Pipeline Companies.

    Every carrier pipeline subject to the provisions of section 20 of 
the Interstate Commerce Act must file with the Commission FERC Form No. 
6, ``Annual Report of Oil Pipeline Companies,'' in the manner 
prescribed in Sec. 385.2011 of this chapter and as indicated in the 
general instructions set out in this report form. This report must be 
filed on or before March 31st of each year for the previous calendar 
year, and must be properly completed and verified.

PART 385--RULES OF PRACTICE AND PROCEDURE

    7. The authority citation for Part 385 continues to read as 
follows:

    Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717w, 3301-3432; 16 
U.S.C. 792-825r, 2601-2605; 31 U.S.C. 9701; 42 U.S.C. 7101-7352; 49 
U.S.C. 1-27.

    8. Section 385.2011, paragraph (a), is proposed to be amended by 
redesignating paragraphs (a)(3) through (a)(5) as paragraphs (a)(4) 
through (a)(6), and adding a new paragraph (a)(3) as follows:


Sec. 385.2011  Procedures for filing on electronic media.

    (a) * * *
    (3) FERC Form No. 6, Annual Report of Oil Pipeline Companies.
* * * * *

Appendix to the Proposed Rule

    Note: This appendix is not being published in full in the 
Federal Register, but is available from the Commission's Public 
Reference Room.

Appendix A--Revised Sheets for Form No. 6: Annual Report of Oil 
Pipeline Companies

    This Appendix A contains the pages from Form No. 6 which are 
proposed to be revised in the Commission's Notice Of Proposed 
Rulemaking, Docket No. RM94-2-000.

[FR Doc. 94-18871 Filed 8-8-94; 8:45 am]
BILLING CODE 6717-01-M