[Federal Register Volume 60, Number 23 (Friday, February 3, 1995)]
[Notices]
[Pages 6767-6768]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2672]



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DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration


Pipeline Safety User Fees

[Docket No. PS-138; Notice 1]
AGENCY: Research and Special Programs Administration, (RSPA), DOT.

ACTION: Notice of agency action and request for comments.

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SUMMARY: This notice announces proposed changes in administering user 
fee assessments for natural gas, liquefied natural gas, and hazardous 
liquid pipeline facilities beginning with fiscal year 1995 (October 1, 
1994) and solicits public comment on these changes.

DATES: Comments must be submitted on or before March 6, 1995: Comments 
may be mailed to the Dockets Branch, Room 8421, U.S. Department of 
Transportation, 400 Seventh Street, SW., Washington, DC 20590. All 
comments and docket material may be reviewed in the Dockets Branch, 
room 8426, Between the hours of 8:30 a.m. to 5:00 p.m. Monday through 
Friday, except federal holidays.

FOR FURTHER INFORMATION CONTACT: Lisa C. Kokoszka, (202) 366-4554 
regarding the subject matter of this notice, or the Dockets Unit, (202) 
366-5046, regarding copies of this notice or other material that is 
referenced herein.

SUPPLEMENTARY INFORMATION:

I. Background:

    Section 60301 of Title 49, United States Code1 authorizes the 
assessment and collection of pipeline user fees to fund the pipeline 
safety activities conducted under Chapter 601 of that title2. The 
Research and Special Programs Administration (RSPA) assesses each 
operator of regulated interstate and intrastate natural gas 
transmission pipelines (as defined in 49 CFR part 192), and hazardous 
liquid pipelines carrying petroleum, petroleum products, anhydrous 
ammonia and carbon dioxide (as defined in 49 CFR part 195), a share of 
the total Federal pipeline safety program costs in proportion to the 
number of miles of pipeline each operator has in service. The fee 
schedule for LNG facilities is based on the number of facilities each 
operator has in service and total storage capacity of those facilities.

    \1\Formerly, section 7005 of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (Pub.L. 99-272). The change in citation 
is the result of the enactment, on July 5, 1994, of Pub. L. 103-272, 
which recodified various transportation laws.
    \2\Formerly, the Natural Gas Pipeline Safety Act of 1968 and the 
Hazardous Liquid Pipeline Safety Act of 1979. This change in 
citation is the result of the enactment, on July 5, 1994, of Pub.L. 
103-272, which codified various transportation laws.
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    RSPA is authorized to collect an amount equal to or 105% of the 
annual Congressional appropriation for pipeline safety. The fiscal year 
1995 appropriation is $37.424 million.

II. Administrative Clarifications and Proposals

    RSPA is proposing several program clarifications and administrative 
changes described below. These proposals will insure that all operators 
are aware of the effects of certain terms and procedures on 
administering the program by the Office of Pipeline Safety (OPS). The 
public is specifically invited to comment on these proposals.

A. Definition of ``In Service''

    The annual assessment is for those gas transmission and hazardous 
liquid pipelines which are ``in service''. Over the last year some 
operators have requested clarification of the term ``in service'' as it 
pertains to calculating total milage subject to assessment. As used in 
the assessment letter, the term ``in service'' applies to each pipeline 
that is: transporting a regulated commodity, or that has transported a 
regulated commodity and has not been abandoned during the assessment 
year, October 1 through September 30. This would mean that in order to 
be taken ``out of service'' a pipeline must be abandoned in accordance 
with applicable pipeline safety regulations found in 49 CFR Parts 192 
and 195.

B. Procedures for Correcting Previous Mileage Reported

    On occasion, operators discover that they have incorrectly reported 
their actual mileage or storage capacity. The operators may claim that 
these errors go back several years. Because the total collected is 
apportioned among all pipeline operators, a change in one operator's 
amount could conceivably affect the amount owed by all other pipeline 
operators. Therefore, RSPA has determined that adjustments of 
assessments will only be allowed for the current assessment year.
    Reporting errors must be sent in writing to the Information 
Resources Manager, Research and Special Programs Administration, Office 
of Pipeline Safety, room 2335, 400 Seventh Street, SW., Washington, DC 
20590. Gas operators should also submit a supplemental RSPA form 
7100.2-1.

C. Assessment Procedures

    Under the regulations implementing 31 U.S.C. 3717, governing debts 
owed to the Federal government, assessments are due 30 days after the 
date of the assessment. If payment cannot be made in full within the 30 
day time frame, partial payments, installments, or extensions may be 
granted upon written request to the User Fee Manager, room 2335, 400 
Seventh Street, SW., Washington, DC 20590. Interest, penalties, and 
administrative charges will be assessed on delinquent debts.
    User fees are deposited in the Pipeline Safety Fund (the Fund) and 
since 1987, OPS expenditures have been made using appropriations from 
the Fund. Because in prior years OPS appropriations were lower than the 
Fund balance, RSPA was able to collect user fees late in each fiscal 
year (FY). However, the FY 1995 appropriation exceeds the amount 
currently in the Fund (approximately $17 million), and future 
appropriations are likely to also exceed the amount in the Fund. 
Therefore, in order for OPS to have assured funding to operate without 
a shortfall later in the fiscal year, RSPA will need to collect user 
fees earlier. RSPA proposes to phase in the earlier assessment over a 
period of four years, as follows:

                                                                        
[[Page 6768]]                                                           
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  Fiscal                                                                
   year                          Date of assessment                     
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1995.....  March 1995.                                                  
1996.....  December 1995.                                               
1997.....  November 1996.                                               
1998.....  October 1997.                                                
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D. Low Stress Pipelines

    A final rule on hazardous liquid pipelines operating at 20 percent 
or less of specified minimum yield strength (low stress pipelines), was 
published in the Federal Register on July 12, 1994. This rule became 
effective on August 11, 1994. Low Stress Pipelines include pipelines 
that carry highly volatile liquids (HVL), pipelines or pipeline 
segments in populated areas, and pipelines or pipeline segments in 
navigable waterways. Therefore, operators must incorporate these low 
stress mileage on the verification notice which were mailed to pipeline 
operators on or about November 30, 1994. Onshore rural gathering 
pipelines, pipelines that operate at less than 20% of SMYS (non-HVL 
located outside populated areas and navigable waterways), and other 
pipelines excluded from regulation by 49 CFR 195, should not be 
included.

    Issued in Washington, DC on January 30, 1995.
George W. Tenley, Jr.,
Associate Administrator for Pipeline Safety.
[FR Doc. 95-2672 Filed 2-2-95; 8:45 am]
BILLING CODE 4910-60-P