[Federal Register Volume 61, Number 130 (Friday, July 5, 1996)]
[Rules and Regulations]
[Pages 35141-35142]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16990]


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DEPARTMENT OF TRANSPORTATION
49 CFR Part 1305

[STB Ex Parte No. 538]


Disclosure and Notice of Change of Rates and Other Service Terms 
for Pipeline Common Carriage

AGENCY: Surface Transportation Board

ACTION: Final rules.

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SUMMARY: The ICC Termination Act of 1995 (ICCTA) eliminated the tariff 
requirements formerly applicable to pipeline carriers transporting 
commodities other than water, gas or oil. Instead, the ICCTA imposed 
certain obligations to disclose rates and service terms, as well as a 
requirement for advance notice of an increase in such rates or a change 
in service terms. The ICCTA requires the Board to promulgate 
regulations to administer these new obligations by June 29, 1996. The 
Board adds a new part 1305 to its regulations for that purpose.

EFFECTIVE DATE: These rules are effective August 4, 1996.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-5660. [TDD for 
the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: The Board's decision adopting these 
regulations is available to all persons for a charge by phoning DC NEWS 
& DATA, INC., at (202) 289-4357.
    A notice of proposed rulemaking was published in the Federal 
Register on May 15, 1996 at 61 FR 24474.

Small Entities

    The Board certifies that this rule will not have a significant 
economic effect on a substantial number of small entities. The rules 
should result in easier access to pipeline rate and service 
information, and, to that extent, our action should benefit small 
entities.

Environment

    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.

List of Subjects in 49 CFR Part 1305

    Pipelines, Reporting and recordkeeping requirements, 
Transportation.

    Decided: June 27, 1996.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen.
Vernon A. Williams,
Secretary.

    For the reasons set forth in the preamble, the Board adds a new 
part 1305 to title 49, chapter X, of the Code of Federal Regulations, 
to read as follows:

PART 1305--DISCLOSURE AND NOTICE OF CHANGE OF RATES AND OTHER 
SERVICE TERMS FOR PIPELINE COMMON CARRIAGE

Sec.
1305.1  Scope; definitions.
1305.2  Disclosure requirement for existing rates.
1305.3  Response to request for establishment of a new rate.
1305.4  Notice requirement.

    Authority: 49 U.S.C. 721(a) and 15701(e).


Sec. 1305.1  Scope; definitions.

    (a) The provisions of this part address the requirements imposed on 
pipeline carriers by 49 U.S.C. 15701(b) and 15701(c). Such requirements 
apply to pipeline carriers only with respect to the transportation of 
commodities other than water, gas, or oil.
    (b) Except as otherwise provided in paragraph (c) of this section, 
the provisions of this part apply to any transportation or service 
provided by a pipeline carrier subject to the jurisdiction of the 
Surface Transportation Board under 49 U.S.C. 15301.
    (c) The provisions of this part do not apply to any transportation 
or service provided by a pipeline carrier to the extent that such 
transportation or service is exempted from rate notice and disclosure 
requirements pursuant to 49 U.S.C. 15302.
    (d) For the purposes of this part, service terms means all 
classifications, rules, and practices that affect the rates, charges, 
or level of service for pipeline transportation.


Sec. 1305.2  Disclosure requirement for existing rates.

    (a) A pipeline carrier must disclose to any person, on request, the 
specific rate(s) requested (or the basis for calculating the specific 
rate(s)), as well as all charges and service terms that may be 
applicable to transportation covered by those rate(s).
    (b) The information provided by a pipeline carrier under this 
section must be provided immediately. (It is expected that the response 
will be sent within hours, or at the latest by the next business day, 
in most situations.) Such information may be provided either in writing 
or in electronic form, as agreed to by the parties. If the parties 
cannot agree, such information is to be provided in electronic form 
where both parties have the requisite capabilities; otherwise, it is to 
be provided in writing.
    (c) A pipeline carrier may, at its option, require that all 
requests

[[Page 35142]]

submitted under this section be in writing or electronic form, or the 
carrier may permit oral requests.


Sec. 1305.3  Response to request for establishment of a new rate.

    Where a shipper or a prospective shipper, or a person acting on 
behalf of a shipper or a prospective shipper, requests that the carrier 
establish a rate in the absence of an existing rate for particular 
transportation, the carrier must promptly establish and provide to the 
requester a rate and applicable service terms. The information may be 
provided either in writing or in electronic form, as agreed to by the 
parties. If the parties cannot agree, such information is to be 
provided in electronic form where both parties have the requisite 
capabilities; otherwise, it is to be provided in writing. The response 
should be provided as soon as reasonably possible, but no later than 10 
business days from receipt of the request. If a carrier determines that 
additional information is required from the requester before a rate or 
term can be established, the carrier must so notify the requester as 
soon as possible, but no later than 10 business days after receipt of 
the request. Once the additional information is received, the carrier 
must set the rate and related service terms, and relay them to the 
requester, as soon as possible, but no later than 10 business days. The 
time period for response set forth in this section will not apply when 
the parties agree to a different time period. A pipeline carrier may, 
at its option, require that requests submitted under this section be in 
writing or electronic form, or the carrier may permit oral requests.


Sec. 1305.4  Notice requirement.

    (a) A pipeline carrier may not increase any rates or charges, or 
change any service terms (except for changes that are equivalent to 
rate reductions) unless 20 days have expired after written or 
electronic notice has been provided to all persons who, within the 
previous 12 months:
    (1) Have requested, under Sec. 1305.2 or Sec. 1305.3, the affected 
rates or service terms; or
    (2) Have made arrangements with the carrier for a shipment that 
would be subject to the increased rates or changed service terms.
    (b) The notice required by this section may be provided either in 
writing or in electronic form, as agreed to by the parties. If the 
parties cannot agree, the information is to be provided in electronic 
form where both parties have the requisite capabilities; otherwise, it 
is to be provided in writing.
    (c) For purposes of this section, a mailed notice is deemed 
``provided'' on the date such notice is postmarked.
    (d) The notice required by this section must clearly identify the 
increase in rates or charges or the change in service terms.

[FR Doc. 96-16990 Filed 7-3-96; 8:45 am]
BILLING CODE 4915-00-P