[Federal Register Volume 60, Number 104 (Wednesday, May 31, 1995)]
[Notices]
[Pages 28434-28435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13222]



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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration


Pipeline Safety User Fees

AGENCY: Research and Special Programs Administration, (RSPA), DOT.

ACTION: Notice.

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SUMMARY: This notice announces that the fiscal year 1995 user fee 
assessments for pipeline facilities were mailed to pipeline operators 
the week of April 3, 1995.

FOR FURTHER INFORMATION CONTACT: Lisa Kokoszka, (202) 366-4554, U.S. 
Department of Transportation, RSPA, Office of Pipeline Safety, 400 
Seventh Street SW., Washington, DC, 20590, regarding the subject matter 
of this notice.

SUPPLEMENTARY INFORMATION: The fee to be assessed for Natural Gas 
Transmission, Hazardous Liquid and Liquefied Natural Gas (LNG) are as 
indicated below:
    Natural gas transmission pipelines: $95.57 per mile (based on 
299,077 miles of pipeline).
    Hazardous liquid pipelines: $47.03 per mile (based on 154,233 miles 
of pipeline).
    LNG is based on the number of plants and total storage capacity:

------------------------------------------------------------------------
                                                             Assessment/
                Total storage capacity BBLS                     plant   
------------------------------------------------------------------------
<10,000....................................................     = $1,250
10,000-100,000.............................................      = 2,500
100,000-250,000............................................      = 3,750
250,000-500,000............................................      = 5,000
>500,000...................................................      = 7,500
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    Section 60301 of Title 49, U.S.C.,\1\ authorizes the assessment and 
collection of pipeline user fees to fund the pipeline safety activities 
conducted under 49 U.S.C. 60101 et seq. The Research and Special 
Program Administration (RSPA) assesses each operator of regulated 
interstate and intrastate natural gas transmission pipelines (as 
defined in 49 CFR Part [[Page 28435]] 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. Operators of LNG 
facilities are assessed based on total storage capacity (as defined in 
49 CFR Part 193).

    \1\ Formally 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 codified various transportation laws.
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    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 (58 FR 12213, July 
12, 1994). This rule became effective on August 11, 1994. Because of 
this regulation, low stress pipeline mileage must be included in the 
fiscal year 1995 user fee assessments. 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. 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.
    In accordance with the provisions of 49 U.S.C. 60301, Departmental 
resources were taken into consideration for determining total program 
costs. The apportionment ratio between gas and liquid is shown below:

------------------------------------------------------------------------
                                       General program   General program
               Year(s)                   costs (gas)     costs (liquid) 
------------------------------------------------------------------------
1986-1990...........................  80%.............  20%             
1991-1992...........................  75%.............  25%             
1993................................  75% (\3/4\ yr.).  25% (\3/4\ yr.) 
                                      60% (\1/4\ yr.).  40% (\1/4\ yr.) 
1994................................  60%.............  40%             
1995................................  75%.............  25%             
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    Comments: On Friday, February 3, 1995, a notice of agency action 
and request for comments was issued (60 FR 6767, Feb. 3, 1995), 
regarding proposed changes in administering user fee assessments. Seven 
pipeline operators, one commenter acting as an agent for several 
operators, and two major gas pipeline trade organizations opposed 
collecting the fee twice within calendar year 1995. These commenters 
stated that the budgets of most companies are prepared by calendar 
year, and that companies have planned for only one assessment in 1995. 
The commenters recommended moving the two assessment dates to 1996, 
which would give companies time to plan their budgets.
    Response: RSPA agrees that assessing the user fee twice in calendar 
year 1995 may be burdensome for the pipeline operators. Therefore, RSPA 
will assess only once in 1995. In 1996, RSPA will send out two 
assessments. The first assessment in 1996 will be January 31, 1996, and 
the second will be in the October-December 1996 timeframe. This should 
provide ample budgetary preparation time.
    Additional comments received by RSPA in response to the February 3, 
1995, notice are currently being reviewed and will be addressed in the 
near future.
    Collection Dates: In accordance with the regulations of the 
Department of the Treasury, user fees will be due 30 days after the 
date of the assessment. Interest, penalties, and administrative charges 
will be assessed on delinquent debts in accordance with 31 U.S.C. 3717.

    Issued in Washington, DC on May 24, 1995.
Ana Sol Gutierrez,
Deputy Administrator, Research and Special Programs Administration.
[FR Doc. 95-13222 Filed 5-30-95; 8:45 am]
BILLING CODE 4910-60-P