[Federal Register Volume 63, Number 200 (Friday, October 16, 1998)]
[Proposed Rules]
[Pages 55682-55715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26721]



[[Page 55681]]

_______________________________________________________________________

Part II





Department of Energy





_______________________________________________________________________



Federal Energy Regulatory Commission



_______________________________________________________________________



18 CFR Parts 2, 153, 157, etc.



Revision of the Commission's Regulations Under the Natural Gas Act; 
Proposed Rule



18 CFR Part 380



Landowner Notification, Residential Area Designation, and Other 
Environmental Filing Requirements; Technical Conference; Proposed Rule

  Federal Register / Vol. 63, No. 200 / Friday, October 16, 1998 / 
Proposed Rules  

[[Page 55682]]



DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 2, 153, 157, 284, 375, 380, and 385

[Docket No. RM98-9-000]


Revision of the Commission's Regulations Under the Natural Gas 
Act

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Federal Energy Regulatory Commission is proposing to amend 
the regulations codifying the Commission's responsibilities under the 
Natural Gas Act and Executive Order 10485, as amended. The Commission 
proposes to update its regulations governing the filing of applications 
for the construction and operation of facilities to provide service or 
to abandon facilities or service under section 7 of the Natural Gas 
Act. The proposed changes are necessary to conform the Commission's 
regulations to the Commission's current policies.

DATES: Comments are due on December 1, 1998.

ADDRESSES: Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington DC 20426.

FOR FURTHER INFORMATION CONTACT:
Michael J. McGehee, Office of Pipeline Regulation, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426. 
(202) 208-2257
Carolyn Van Der Jagt, Office of the General Counsel, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 
(202) 208-2246

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 the Public Reference Room 
at 888 First Street, NE., Room 2A, Washington, DC 20426.
    The Commission Issuance Posting System (CIPS) provides access to 
the texts of formal documents issued by the Commission. CIPS can be 
accessed via Internet through FERC's Homepage (http://www.ferc.fed.us) 
using the CIPS Link or the Energy Information Online icon. The full 
text of this document will be available on CIPS in ASCII and 
WordPerfect 6.1 format. CIPS is also available through the Commission's 
electronic bulletin board service at no charge to the user and may be 
accessed using a personal computer with a modem by dialing 202-208-
1397, if dialing locally, or 1-800-856-3920, if dialing long distance. 
To access CIPS, set your communications software to 19200, 14400, 
12000, 9600, 7200, 4800, 2400, or 1200 bps, full duplex, no parity, 8 
data bits and 1 stop bit. User assistance is available at 202-208-2474 
or by E-mail to [email protected].
    This document is also available through the Commission's Records 
and Information Management System (RIMS), an electronic storage and 
retrieval system of documents submitted to and issued by the Commission 
after November 16, 1981. Documents from November 1995 to the present 
can be viewed and printed. RIMS is available in the Public Reference 
Room or remotely via Internet through FERC's Homepage using the RIMS 
link or the Energy Information Online icon. User assistance is 
available at 202-208-2222, or by E-mail to [email protected].
    Finally, the complete text on diskette in WordPerfect format may be 
purchased from the Commission's copy contractor, RVJ International, 
Inc. RVJ International, Inc. is located in the Public Reference Room at 
888 First Street, NE., Washington, DC 20426.
    In the matter of: Revision of the Commission's Regulations Under 
the Natural Gas Act; Docket No. RM98-9-000.

Notice of Proposed Rulemaking

September 30, 1998.

I. Introduction

    The Federal Energy Regulatory Commission (Commission) proposes to 
amend its regulations governing the filing of applications for 
certificates of public convenience and necessity authorizing the 
construction and operation of facilities to provide service or to 
abandon facilities or service under section 7 of the Natural Gas Act 
(NGA),1 and to amend the blanket certificate under Subpart F 
of Part 157. The Commission has determined that portions of its 
regulations need to be revised and/or eliminated in order to reflect 
the current regulatory environment of unbundled pipeline sales and 
open-access transportation of natural gas. The proposed revisions 
would: (1) bring the existing regulations up-to-date to match current 
policies; (2) eliminate ambiguities and obsolete language; and (3) make 
the regulations more germane, and less cumbersome.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 717b.
---------------------------------------------------------------------------

    Additionally, the Commission proposes to consolidate and clarify 
its current practice concerning the reporting requirements needed for 
its environmental review of pipeline construction projects. Generally, 
the Commission's requirements concerning its environmental review 
process are either outdated, found in several different parts of the 
Commission's regulations, or replaced by current practice with a 
preferred format that is not in the Commission's regulations, but has 
been used routinely by jurisdictional companies. The proposed 
regulations would provide better guidance to the regulated industry 
concerning what particular information the Commission needs to conduct 
a timely environmental analysis.

II. Information Collection Statement

    The proposed rule, if adopted, would establish new reporting 
requirements, modify existing reporting requirements and eliminate 
those requirements that are now obsolete. The Commission seeks to 
simplify and streamline its requirements to reduce the burden on 
pipelines. The current public reporting burden for these information 
collections is estimated to average the following number of hours per 
response: FERC-537 2--146,160 hours for the 50 gas companies 
that complete a filing; FERC-539 3--2400 hours for the 12 
gas companies that complete a filing; FERC-577 4--181,794 
hours for the 55 companies that complete a filing. These estimates 
include the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing and 
reviewing the collection of information.
---------------------------------------------------------------------------

    \2\ Gas Pipeline Certificates: Construction, Acquisition, and 
Abandonment.
    \3\ Gas Pipeline Certificate: Import/Export Related.
    \4\ Environmental Impact Statement (Pipeline Certificate).
---------------------------------------------------------------------------

    The overall burden of filing will be reduced based on the 
elimination of certain filings by the rule. Further, the burden will be 
reduced by the elimination of the requirement to report all but cost 
information for prior notice activity in the annual report. On the 
whole, the Commission estimates that the revised reporting schedule 
will reduce the existing reporting burden by a total of 8,284 hours.
    On balance, therefore, the Commission believes the overall burden 
on the industry will be lessened over time by the proposed changes. To 
consider the impact on the persons affected by this rulemaking, the 
Commission would like specific comments on the impact of this rule on 
individual natural gas companies. Both estimates of current burden and 
impact

[[Page 55683]]

should be in work hours and dollar costs in sufficient detail to 
demonstrate methodology and assumptions.
    The burden estimates for complying with this proposed rule are as 
follows:
    Public Reporting Burden: Estimated Annual Burden.

----------------------------------------------------------------------------------------------------------------
                                                                                                        Total
                       Data collection                         Number of    Number of     Hours of      annual
                                                              respondents   responses     response      hours
----------------------------------------------------------------------------------------------------------------
FERC-537....................................................           50         11.2       245.82      137,660
FERC-539....................................................           12            1          218        2,616
FERC-577....................................................           70         16.8          154      181,720
----------------------------------------------------------------------------------------------------------------

Total Annual Hours for collections
(Reporting + Record keeping, (if appropriate)) = 321,996
    Based on the Commission's experience with processing applications 
for construction and acquisition of pipeline facilities over the last 
three fiscal years (FY95-FY97), it is estimated that 1754.5 filings per 
year will be made over the next three years at a burden of 183 hours 
per filing, for a total annual burden of 321,996 hours under the 
proposed regulations.
    Information Collection costs: The Commission seeks comments on the 
costs to comply with these requirements. It has projected the average 
annualized cost for all respondents to be:

----------------------------------------------------------------------------------------------------------------
                                                                                    Annualized
                                                                    Annualized         costs           Total
                         Data collection                          capital/start-   (Operations &    annualized
                                                                     up costs      Maintenance)        costs
----------------------------------------------------------------------------------------------------------------
FERC-537........................................................         $30,000      $7,189,717      $7,219,717
FERC-539........................................................           7,200         136,639         143,829
FERC-577........................................................               0       9,494,751       9,494,751
----------------------------------------------------------------------------------------------------------------

    The Office of Management of Budget (OMB) regulations require OMB to 
approve certain information collection requirements imposed by agency 
rule.5 Accordingly, pursuant to OMB regulations, the 
Commission is providing notice of its proposed information collections 
to OMB.
---------------------------------------------------------------------------

    \5\ 5 CFR 1320.11 (1997).
---------------------------------------------------------------------------

    The following collections of information contained in this proposed 
rule are being submitted to the OMB for review under Section 3507(d) of 
the Paperwork Reduction Act of 1995.6 FERC identifies the 
information provided under Parts 2, 153, 157 and 284 as FERC Nos. 537, 
539, and 577. The information submitted in response to these 
requirements is mandatory.
---------------------------------------------------------------------------

    \6\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------

    Comments are solicited on the Commission's need for this 
information, whether the information will have practical utility, the 
accuracy of the provided burden estimates, ways to enhance the quality, 
utility, and clarity of the information to be collected, and any 
suggested methods for minimizing respondents' burden, including the use 
of automated information techniques.
    Title: FERC-537 ``Gas Pipeline Certificates: Construction, 
Acquisition, and Abandonment''; FERC-539 ``Gas Pipeline Certificate: 
Import/Export Related'' and FERC-577 ``Environmental Impact Statement 
(Pipeline Certificate).
    Action: Proposed Data Collections.
    OMB Control No.: 1902-0060; 1902-0062; 1902-0128.
    Applicants shall not be penalized for failure to respond to these 
collections of information unless the collections of information 
display a valid OMB control number.
    Respondents: Businesses or other for profit.
    Frequency of Responses: On occasion.
    Necessity of Information: The proposed rule revises the 
Commission's regulations governing the filing of applications for the 
construction and operation of pipeline facilities to provide service or 
to abandon facilities or service under section 7 of the NGA. Section 7 
of the NGA requires the Commission to issue certificates of public 
convenience and necessity for all interstate sales and transportation 
of natural gas, the construction and operation of natural gas 
facilities used for those interstate sales and transportation and prior 
Commission approval of abandonment of jurisdictional facilities or 
services. The Commission has determined that portions of its 
regulations need to be revised to reflect recent regulatory changes, in 
particular, implementation of pipeline restructuring under Order No. 
636,7 which have rendered certain regulations implementing 
Section 7 needless or outdated.
---------------------------------------------------------------------------

    \7\ Pipeline Service Obligations and Revisions to Regulations 
Governing Self-Implementing Transportation; and Regulation of 
Natural Gas Pipelines After Partial Wellhead Decontrol, Order No. 
636, 57 FR 13267 (April 16, 1992) FERC Stats. & Regs. para. 30,939 
(April 8, 1992).
---------------------------------------------------------------------------

    Internal Review: The Commission has assured itself, by means of its 
internal review, that there is specific, objective support for the 
burden estimates associated with the information requirements. The 
Commission's Office of Pipeline Regulation (OPR) will use the data 
included in applications to determine whether proposed facilities are 
in the public interest and general industry oversight. This 
determination involves, among other things, an examination of adequacy 
of design, costs, reliability, redundancy, safety, and environmental 
acceptability of the proposed facilities. These requirements conform to 
the Commission's plan for efficient information collection, 
communication, and management within the natural gas industry.
    For information on the requirements, submitting comments concerning 
the collection of information and the associated burden estimates, 
including suggestions for reducing this burden, please send your 
comments to the Federal Energy Regulatory Commission, 888 First Street, 
NE., Washington, DC 20426 [Attention: Michael Miller, Office of the 
Chief Information Officer, Phone: (202) 208-1415, fax: (202) 273-0873, 
e-mail: [email protected]]. In addition, comments on reducing 
the burden and/or improving the collections of information should also 
be submitted to the Office of Management and Budget, Office of 
Information and Regulatory Affairs, Attention: Desk

[[Page 55684]]

Officer for the Federal Energy Regulatory Commission, 725 17th Street, 
NW, Washington, D.C. 20503, phone (202)395-3087, fax: (202)395-7285.

III. Background and Proposal

    Since the enactment of the Natural Gas Policy Act of 1978 (NGPA) 
8 and the Natural Gas Wellhead Decontrol Act of 1989 
(Decontrol Act),9 the natural gas industry has undergone 
significant changes. Historically, the Commission regulated natural gas 
producers and wellhead prices and interstate pipelines served as gas 
merchants. Pipelines now generally only provide open-access 
transportation services and the Commission no longer regulates 
producers and wellhead prices. The Commission implemented these changes 
through its rulemaking process 10 and through issuing policy 
statements.11 Generally, the Notice of Proposed Rulemaking 
(NOPR) proposes to amend the Commission's regulations to conform them 
to its existing policies and procedures. Additionally, in response to 
the natural gas industries' request,12 the NOPR proposes to 
modify certain aspects of the Commission's current regulations to help 
expedite the certificate process. We note that this is one of many 
initiatives the Commission is implementing to improve upon the current 
regulatory structure for natural gas transportation 
service.13 Moreover, concurrent with the issuance of this 
NOPR, the Commission is issuing another NOPR, in Docket No. RM98-16-
000, which proposes that pipelines use a collaborative process to 
resolve significant issues prior to filing an application to construct 
facilities. Additionally, the Commission is issuing a Notice of 
Technical Conference, in Docket No. RM98-17-000, to address its 
concerns regarding its present landowner notification policies and its 
present environmental classification of residential areas.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 3301-3432 (1978).
    \9\ Public Law No. 101-60, 103 Stat. 157 (1989).
    \10\ See Regulation of Natural Gas Pipelines After Partial 
Wellhead Decontrol, Order No. 436, 50 FR 42408 (November 5, 1985) 
FERC Stats. and Regs. para. 30,665 (October 9, 1985)(Order No. 436 
instituted open-access, non-discriminatory transportation to permit 
downstream gas users to buy gas directly in the production area and 
to ship that gas via interstate pipelines); Order Implementing the 
Natural Gas Wellhead Decontrol Act of 1989, Order No. 523, 55 FR 
17425 (April 25, 1990) FERC Stats. and Regs. para. 30,887 (April 18, 
1990) and Removal of Outdated Regulations Pertaining to the Sales of 
Natural Gas Production, Order No. 567, 59 FR 40240 (August 8, 1994) 
FERC Stats. and Regs. para. 30,999 (July 28, 1994) (in Order Nos. 
523 and 567, the Commission generally amended its regulations to 
delete those pertaining to its jurisdiction over the sale of natural 
gas production); and Pipeline Service Obligations and Revisions to 
Regulations Governing Self-Implementing Transportation; and 
Regulation of Natural Gas Pipelines After Partial Wellhead 
Decontrol, Order No. 636, 57 FR 13267 (April 16, 1992) FERC Stats. & 
Regs. para. 30,939 (April 8, 1992) (in Order No. 636, the Commission 
adopted regulatory changes to finally complete the evolution to 
competition in the natural gas industry by mandating the unbundling 
of interstate natural gas sales service from transportation service, 
requiring that those services be sold separately to natural gas 
purchasers).
    \11\ Pricing Policy For New and Existing Facilities Constructed 
by Interstate Natural Gas Pipelines, 71 FERC para. 61,241 (1995).
    \12\ As a result of the changes in the industry, the Commission 
convened a public conference on May 29 and 30, 1997 (May 
conference), to conduct a broad inquiry into the important issues 
facing the natural gas industry today. Various participants at the 
May conference raised concerns regarding the Commission's 
certificate process in the post-Order No. 636 era. Generally, the 
participants requested that the Commission focus on expediting the 
approval process for construction certificates to enhance the 
pipeline's ability to respond more quickly to accommodate new and 
changing market conditions.
    \13\ See Public Access to Information and Electronic Filing, 
Docket No. PL98-1-000, 63 FR 27,529 (May 19, 1998), Regulations of 
Short-Term Natural Gas Transportation Services, Docket No. RM98-10-
000, 63 FR 42,982 (Aug. 11, 1998) and Regulation of Interstate 
Natural Gas Transportation Service, Docket No. RM98-12-000, 63 FR 
42,973 (Aug. 11, 1998).
---------------------------------------------------------------------------

    The NOPR serves 5 basic purposes: (1) It eliminates certain 
obsolete regulations and outdated or unnecessary filing requirements 
and reports; (2) it clarifies and updates certain regulations to 
conform to the Commission's present policies; (3) it modifies certain 
existing regulations to help expedite the certificate process; (4) it 
replaces certain outdated environmental filing procedures with the more 
commonly followed industry practice; and (5) it makes minor 
modifications to the existing electronic filing requirements.

A. Eliminating Obsolete Regulations and Outdated or Unnecessary Filing 
Requirements and Reports

    The Commission proposes to remove certain regulations that are 
outdated and obsolete including, among other things, regulations that 
pertain to producer related activities made obsolete by the Decontrol 
Act and regulations that pertain to a pipeline's merchant function. 
Additionally, the Commission proposes to remove various regulations 
that pertain to certain activities that were performed under the 
blanket certificate issued in Subpart F of Part 157 that are now 
performed under Part 284 of the Commission's regulations. For example, 
section 157.213 grants authorization for the certificate holder to 
provide contract storage service. Pipelines now provide storage service 
under their Part 284 blanket transportation certificate. Section 
157.217 grants the certificate holder automatic authorization to permit 
an existing customer to change from one rate schedule to another. Rate 
schedules are now offered under Part 284.
    The Commission also proposes: (1) to remove references to filing 
fees eliminated by Order No. 548; 14 and (2) to change 
outdated references to the Office of Pipeline and Producer Regulation 
to Office of Pipeline Regulation (OPR), and change outdated references 
to the Environmental Evaluation Branch to the Environmental Staff of 
OPR.
---------------------------------------------------------------------------

    \14\ Elimination of Filing Fees, Order No. 548, 58 FR 2968 
(January 7, 1993) FERC Stats. and Regs. para. 30,960 (January 4, 
1993).
---------------------------------------------------------------------------

    The Commission proposes to remove certain outdated and/or 
unnecessary filing requirements and reports. For example, the 
Commission proposes to remove certain information in the exhibits filed 
with a NGA section 7 certificate application including, among other 
things, Exhibit J which requires that pipelines provide studies 
regarding any impacts related to potential direct industrial customers 
converting from other fuels to natural gas, and Exhibit L which 
requires that pipelines file certain financial information that the 
Commission no longer needs with a certificate application.
    The Commission also proposes to remove certain blanket certificate 
filing requirements including, among other things, information 
concerning outdated budget-type certificates and rate schedules for 
sales for resale and for storage services. The Commission also proposes 
to remove the prior notice reporting requirements which require that 
pipelines file certain gas supply information and the names of the 
independent producers or other sellers.

B. Clarifying and Updating Regulations to Conform to the Commission's 
Present Policies

    The Commission proposes to clarify certain aspects of the 
regulations. For example, the NOPR clarifies that auxiliary facilities 
installed at the same time and related to newly proposed jurisdictional 
facilities do not qualify for exemption under section 2.55(a), since 
the exemption is limited to installations which are designed 
specifically to improve the operation of an existing transmission 
system. The Commission also proposes to amend section 157.10 to clarify 
that pipelines do not have to serve voluminous or difficult to 
reproduce materials, such as copies of environmental information, upon 
all parties in a proceeding, except as specifically requested. This 
procedure is consistent with our requirements for

[[Page 55685]]

pipelines filing rate schedules and tariffs under Part 154. However, we 
expect pipelines to make all such information readily available in the 
project area.
    The Commission proposes to replace the term ``small-diameter 
lateral'' with ``small diameter supply or delivery lateral'' to provide 
a more objective description of facilities the Commission will not 
consider to be mainline facilities. The Commission also proposes to add 
an introductory sentence in section 157.206(d) that explains that the 
environmental conditions contained in that section apply only to 
activities under the blanket certificate that involve ground 
disturbance or changes to operational air and noise emissions.
    The Commission proposes, among other things, to amend section 
2.55(b) consistent with the Commission's order in Arkla Energy 
Resources Co. (Arkla) 15 by requiring that replacement 
facilities constructed under section 2.55 must be constructed in the 
existing right-of-way. The Commission also proposes to amend sections 
157.20(b) and 157.206(f) to state that the facilities must be completed 
and available for service within one year instead of in actual 
operation within one year. This would address concerns that events 
outside a pipeline's control could prevent facilities from being placed 
in operation within the specified time frame, i.e., a shipper does not 
actually flow gas on time.
---------------------------------------------------------------------------

    \15\ 67 FERC para. 61,173, at 61,516 (1994).
---------------------------------------------------------------------------

    The Commission intends to revise section 157.202(b)(2)(i) to 
clarify that it includes receipt points in the definition of eligible 
facilities consistent with our regulations under Part 284 which 
recognize that a pipeline can construct any eligible facility under its 
Part 157 blanket certificate to provide Part 284 service to use 
existing capacity, including receipt points. The Commission also 
proposes to add a new section 157.6(b)(8), which requires that 
pipelines file the necessary information for the Commission to make an 
upfront determination of the rate treatment of the proposed 
construction project in accordance with the Commission's Pricing Policy 
Statement.16
---------------------------------------------------------------------------

    \16\ Pricing Policy For New and Existing Facilities Constructed 
By Interstate Natural Gas Pipelines, 71 FERC para. 61,241 (1995).
---------------------------------------------------------------------------

C. Modifying Existing Regulations To Expedite the Certificate Process

    As stated, the industry requested that the Commission focus on 
expediting the approval process for construction project certificates 
to enhance the pipeline's ability to respond more quickly to 
accommodate new and changing market conditions. The Commission proposes 
several changes to the regulations that would expedite its procedures 
or construction of certain facilities while at the same time comply 
with its mandate under the National Environmental Policy Act of 1969 
(NEPA).17 For example, the Commission proposes to expand the 
scope of the blanket certificate under Subpart F of Part 157 to include 
new categories of facilities eligible for construction under automatic 
and prior notice authorization, revise the prior notice procedures, and 
expand automatic and prior notice abandonment opportunities. These 
proposed changes are designed to allow pipelines to construct, operate, 
rearrange, replace and abandon more facilities than are currently 
covered by the blanket certificate. We propose to amend section 
157.202(b)(2)(i) (Eligible Facilities) to include mainline and lateral 
replacement facilities that do not currently qualify under section 
2.55(b) as eligible facilities. These replacements would result in 
increased line capacity because they generally would involve an 
incrementally larger replacement pipe than the original.
---------------------------------------------------------------------------

    \17\ 42 U.S.C. 4321-4307a.
---------------------------------------------------------------------------

    The Commission proposes to allow pipelines to construct and operate 
temporary compression facilities under their subpart F blanket 
certificate in new section 157.209, in the same manner we have issued 
separate blanket temporary compression certificates to Transwestern 
Pipeline Company and Northwest Pipeline Corporation.18
---------------------------------------------------------------------------

    \18\ Transwestern Pipeline Co., 76 FERC para. 61,211 (1996), 
Northwestern Pipeline Corp., 67 FERC para. 61,289 (1994).
---------------------------------------------------------------------------

    The Commission proposes to amend section 157.211 to include both 
the existing sales taps, as well as delivery taps currently authorized 
under section 157.212. We propose to remove section 157.212 as 
obsolete. Amended section 157.211 will provide for both automatic and 
prior notice authority under the blanket certificate. Currently, 
delivery taps are limited to the prior notice procedures under section 
157.212.
    In order to help expedite the processing of prior notice requests, 
the Commission proposes to amend section 157.205(e) to require the 
issuance of a notice within 10 days of a prior notice application being 
filed. Likewise, we propose to amend section 157.205(g) to allow the 
Director of OPR to dismiss protests that do not raise a substantive 
issue and fail to provide any specific detailed reason or rationale for 
the objection, so as not to impede processing of legitimate filings.
    The Commission also proposes to amend section 375.307(a)(1) to 
increase the spending limits for orders delegated to the Director of 
OPR to match the prior notice limits set forth in section 157.208(d). 
The Commission believes that adjusting the spending limit in this 
section will provide more flexibility and a faster regulatory track to 
pipelines that want to construct facilities that are not ``eligible'' 
for prior notice treatment but are the subject of applications not 
formally protested, and whose costs exceed the current $5,000,000 cost 
limit in this section. The 1998 prior notice limits are $19.6 million 
for eligible facilities and $4.5 million for storage testing.

D. Replacing Outdated Environmental Filing Procedures With Industry 
Practice

    Under section 380.3 of the Commission's current regulations, any 
application filed under the NGA for a project that requires the 
preparation of an environmental assessment or environmental impact 
statement must contain the information identified in Appendix A to Part 
380. However, in 1988 in the Northeast U.S. Pipeline Project 
(Northeast) order,19 the Commission established additional 
guidelines for the environmental filings for the competing projects in 
that proceeding to facilitate its review and analysis of those 
projects. The guidelines included environmental resource reports that 
covered specific environmental resource areas. The Commission explained 
that if all the pipelines followed the same format when filing the 
necessary information it would expedite the Commission's review and 
processing of the environmental reports.
---------------------------------------------------------------------------

    \19\ 44 FERC para. 61,149 (1988).
---------------------------------------------------------------------------

    In 1989, the Commission's staff compiled a report entitled 
``Natural Gas Pipeline Company Certificate Filing'' (Certificate 
Manual) which defined how applications should be filed electronically. 
Appendix G to that document lists 12 resource reports similar to the 
ones in the Northeast proceeding. Each resource report described 
specific areas and topics that a pipeline needs to address to meet the 
environmental filing requirements. The resource reports were described 
as an alternative method to meeting the requirement of Appendix A to 
Part 380 of the Commission's regulations. Since that time, the industry 
has generally followed the resource report guideline in the Certificate 
Manual instead of the guidelines listed in Appendix A to Part

[[Page 55686]]

380. Appendix G served as the template for the industry outreach 
training sessions we have been conducting since 1995, to assist the 
industry in preparing Environmental Reports. Accordingly, the NOPR 
proposes to replace the current Appendix A with the resource reports, 
slightly modified, from the Certificate Manual.
    We note that, generally, conducting the environmental review is the 
most time consuming part of the certificate process. The Commission 
believes this is the result of several factors. First, too often 
pipelines are filing minimal information with the intention of filing 
the missing information at some later date. Accepting such filings 
raises unreasonable expectations on the part of those who use the date 
of filing as a measure of how much time it takes the Commission and its 
staff to review projects. Further, applicants may be unsure of what is 
needed because many of the Commission's environmental regulations 
dealing with pipeline projects are either outdated, found in several 
parts of the CFR, or, in the case of the environmental report, as 
stated, replaced in current practice by a preferred format that does 
not appear anywhere in the regulations.
    An incomplete filing necessitates time consuming staff data 
requests. However, the more complete the environmental information is 
at the time of filing, the more expeditiously the Commission can 
process the application.
    While the resource reports may seem to represent a large amount of 
material, they are written in an attempt to cover all types of possible 
applications. They include specifications for what details are needed 
based on project specifics. Indeed, the proposed regulation makes it 
clear that some projects do not require some individual resource 
reports at all. Finally, each resource report must be only as detailed 
as required by the complexity of the proposal and its potential for 
environmental impact.
    To further improve the efficiency of the certificate process, we 
are proposing to add a checklist at Appendix A to this section 
specifying the minimum content of an acceptable environmental report. 
Failure to provide at least the checklist items will result in 
rejection of the application. This will ensure the staff has the 
minimum reasonable environmental filing to begin its review.
    Further, there are certain important mitigation measures that need 
to be addressed for every construction filing. If each filing can be 
measured against the same yardsticks, review can be completed faster. 
Therefore, in addition to replacing Appendix A, as discussed above, the 
NOPR proposes that pipelines describe how their project compares to two 
staff guidance documents, the ``Upland Erosion Control, Revegetation, 
and Maintenance Plan'' and ``Wetland and Waterbody Construction and 
Mitigation Procedures,'' and describe in detail what measures they 
propose to provide equal or greater protection to the environment.
    A third guidance document, ``Guidance for Reporting on Cultural 
Resources Investigations,'' is referenced to assist applicants in 
preparation of the material required by the cultural resources portion 
of section 380.12. All of these guidance documents have been the 
subject of extensive outreach training. Since 1992, the staff has 
conducted training sessions in an effort to assist the industry in 
understanding the procedures that are specified in these documents. The 
response has been very positive.
    Finally, we propose to add two new regulations in sections 380.13 
and 380.14 that instruct applicants on how to assist the Commission in 
demonstrating its compliance with the Endangered Species Act 
20 and the National Historic Preservation Act.21 
Both of these sections outline the current process that applicants need 
to follow in order to prepare the information the Commission needs for 
these acts. These processes have been part of the training sessions 
mentioned above, although in the case of section 380.13 there is 
currently no guideline for the endangered species process. 
Nevertheless, we are simply proposing that the Commission codify what 
is current practice to assist applicants in knowing what is required of 
them, thereby reducing the potential for extensive time-consuming data 
requests and the need to consult with other agencies during the 
Commission's review process. Once again, the more consultation that can 
be accomplished early on in the proceeding the faster the environmental 
review can be completed.
---------------------------------------------------------------------------

    \20\ 16 U.S.C. 1531-1544.
    \21\ 16 U.S.C. 470h-2.
---------------------------------------------------------------------------

    A few of the proposed changes are to provide specific guidance 
where none currently exists, thereby making it easier to prepare 
complete filings and otherwise comply with the existing regulatory 
requirements. In some cases, the proposed regulation will result in 
faster preparation of complete environmental filings, which should, in 
turn, facilitate faster review. The Commission's intent is to provide 
the easiest, fastest route for the consideration of proposed pipeline 
projects. Adherence to the proposed regulations will minimize extensive 
and repeated environmental data requests that result from incomplete 
applications and contribute to delaying the process.
    We note that the proposed changes to the environmental regulations 
discussed above do not change the filing requirements burden on the 
pipeline. They simply codify existing standard practice to help 
expedite the environmental review process.

E. Modifying Electronic Filing Requirements

    The Commission currently requires that an electronic filing 
consists of three parts, File1, a structured ASCII record, File2, a 
footnote record applicable to material filed in File1, and File3, an 
unstructured ASCII record. To reduce the burden of the current filing 
requirements, effective upon issuance of this NOPR, the Commission will 
only require that material currently submitted electronically be 
submitted in File3, the unstructured ASCII format. Further, the header 
and trailer records formerly required for File3 can also be eliminated. 
Any further changes to the Commission's electronic filing requirements 
will be discussed at the electronic filing technical conference to be 
held in Docket No. PL98-1-000 on October 22, 1998.

IV. Discussion

A. Part 2--General Policy and Interpretations

    Part 2 contains the Commission's statements of general policy and 
interpretations regarding the NGA, NEPA, the Economic Stabilization Act 
of 1970 and Executive Orders 11615 and 11627, the NGPA and the Public 
Utility Regulatory Policies Act of 1978.
Section 2.1--Initial Notices; Service; and Information Copies of Formal 
Documents
    Section 2.1 describes the Commission's policy for publishing notice 
in the Federal Register upon the institution of certain proceedings 
before the Commission. Section 2.1(a)(1)(viii)(A) through (D) provides 
that notice shall be published in the Federal Register of certain 
proceedings pertaining to independent producers. This section will be 
removed, since the Commission no longer regulates producer functions.
Section 2.55--Definition of Terms Used in NGA Section 7(c)
    Section 2.55 defines facilities that are excluded from the 
requirements of section 7(c) of the NGA and may, therefore, be 
constructed without

[[Page 55687]]

additional certificate authority. Section 2.55(a) exempts auxiliary 
facilities from NGA section 7(c) authority. These facilities include 
valves, drips, yard and station piping, cathodic protection equipment, 
gas cleaning, cooling, and dehydration equipment, which are merely 
auxiliary or appurtenant to an existing transmission pipeline system 
and which are installed only for the purpose of obtaining more 
efficient or more economical operation of authorized transmission 
facilities. The Commission clarifies that auxiliary facilities 
installed at the same time and related to newly proposed jurisdictional 
facilities do not qualify for the exemption under section 2.55(a). 
Facilities constructed along with new transmission facilities do not 
qualify as auxiliary under section 2.55(a) since the exemption is 
limited to installations which are designed specifically to improve the 
operation of an existing transmission system.
    The Commission proposes to revise section 2.55(b)(1)(ii), 
concerning the replacement of existing facilities, to clarify that this 
section only applies to replacements that involve construction within 
the certificated right-of-way. This is consistent with the Commission's 
finding in NorAm Energy Corporation,22 that eminent domain 
authority does not apply to replacement activities which are not within 
the certificated facility footprint, since eminent domain is an adjunct 
to the certificate itself.
---------------------------------------------------------------------------

    \22\ 67 FERC para. 61,173 (1994).
---------------------------------------------------------------------------

    Currently, section 2.55(d) exempts from section 7(c) of the NGA 
taps that a pipeline constructs in order to take deliveries of natural 
gas from independent producers. The Commission proposes to remove this 
section as duplicative of the authority we propose to be available 
under section 157.211, which will cover the construction of all 
delivery points.
Section 2.69--Guidelines To Be Followed by Natural Gas Pipeline 
Companies in the Planning, Location, Clearing and Maintenance of 
Rights-of-Way and the Construction of Aboveground Facilities
    The Commission proposes to move the current section 2.69, which 
provides generic facility siting guidelines to part 380. Section 2.69 
was promulgated at the same time as the Commission's initial NEPA 
regulations in 1970. Since the current NEPA regulations are found at 
part 380, the Commission proposes that it would be more appropriate to 
move the section 2.69 material so that it would be located with the 
other NEPA regulations. The Commission proposes to remove section 2.69 
and replace it with a new section 380.15.
Section 2.102--Policy Respecting Production-Related Activities 
Performed by an Interstate Pipeline
    Section 2.102 sets forth the Commission's policy respecting 
production-related activities performed by interstates pipelines. 
Production-related activities were relevant from a regulatory 
standpoint when the Commission regulated first sales of natural gas and 
considered whether to add such costs to the maximum lawful price for a 
particular sale of gas. However, the Decontrol Act deregulated all 
wellhead price controls and provided that all first sales of natural 
gas are no longer subject to federal regulation. In response to the 
Decontrol Act, the Commission issued Order No. 567, which removed 
regulations pertaining to the sales of natural gas production. Thus, we 
propose to remove this section as outdated, since the Commission no 
longer regulates wellhead sales.
Appendix A--Guidance for Determining the Acceptable Construction Area 
for Replacements
    The Commission also proposes to add new Appendix A to Part 2 which 
provides the guidance for determining the acceptable construction area, 
including temporary work space, for replacement pipeline facilities 
under section 2.55.

B. Part 153--Application for Authorization to Export or Import Natural 
Gas

    Part 153 sets forth the regulations for siting, construction and 
operation of facilities for the import and export of natural gas 
between the United States and a foreign country. The Commission 
recently updated this part in Docket No. RM97-1-000.23 That 
order also provided for an environmental report to accompany all 
applications filed under Part 153.
---------------------------------------------------------------------------

    \23\ Applications for Authorization to Construct, Operate, or 
Modify Facilities Used for the Export or Import of Natural Gas, 
Order No. 595, 62 FR 30435 (June 4, 1997) FERC Stats. and Regs. 
para. 31,054 (May 28, 1997).
---------------------------------------------------------------------------

Section 153.8--Required Exhibits
    The Commission believes that section 153.8 should comport with the 
proposed changes to the environmental report requirement proposed in 
part 157. Therefore, the Commission proposes to revise section 
153.8(a)(7) to track the proposed wording of Exhibit F-I in section 
157.14(a)(6-a) of part 157.
Section 153.21--Conformity with Requirements
    Section 153.21(b) sets forth the criteria for the rejection of 
filings made under this subpart. The Commission proposes to revise this 
section to authorize the Director of OPR to reject applications that do 
not conform to the requirements of this part within 10 days of filing, 
without prejudice to the applicant's refiling a complete application. 
Currently, the Director must notify the applicant of all deficiencies 
and provide at least 20 days for the applicant to amend the application 
and submit the omitted information. The proposed revision is consistent 
with the existing authority the Director of OPR has to reject tariff or 
rate schedule filings as well as prior notice filings pursuant to the 
authority delegated to the Director by the Commission in sections 
375.307 (b)(2) and (e)(6), respectively, of the Commission's 
regulations.

C. Part 157--Applications for Certificate of Public Convenience and 
Necessity and for Orders Permitting and Approving Abandonment Under 
Section 7 of the Natural Gas Act

    The Commission's regulations under Part 157 specify the eligibility 
requirements for both individual, blanket and optional certificates 
under NGA section 7(c), as well as detail the contents required for 
applications to request such certificates. In addition, Part 157 
specifies the requirements necessary for orders permitting and 
approving abandonment under NGA section 7(b) and presently provides a 
blanket certificate for pipeline sales of natural gas.
    In Order No. 636, interstate pipelines were issued blanket sales 
certificates, covered under section 284.284 of the regulations, which 
obviates the need for any blanket pipeline sales authorization under 
part 157. The Commission proposes to amend its regulations in Subpart F 
of part 157 to remove blanket sales authorization. However, pipelines 
that have not yet become subject to Order No. 636 will still be able to 
seek individual NGA section 7(c) authorization to perform sales service 
in accordance with part 157.
    References to producer sales in Part 157 have been removed, since 
Subpart B of Part 157, which concerned filings by producers and 
jurisdictional gatherers for certificates under NGA section 7 was 
removed by Order No. 567 in response to the Decontrol Act.

[[Page 55688]]

Section 157.6--Applications; General Requirements
    This section sets forth the general requirements for applications 
to construct and operate facilities, provide service or abandon 
facilities filed under NGA section 7. The Commission proposes to amend 
section 157.6(a)(1) to remove as outdated the reference to the initial 
date the Commission implemented its electronic filing requirements. The 
Commission also proposes to amend section 157.6(a)(1)-(4) to simplify 
the requirements. We also propose to redesignate existing section 
157.6(a)(4) as new section 157.6(a)(5).
    In addition, it is not clear that the regulations currently require 
the same exhibits for both NGA sections 7(b) and 7(c). Therefore, 
redesignated section 157.6(a)(5) and existing section 157.18 will state 
that applications under sections 7 (b) and(c) must conform to the 
requirements of section 157.5 through section 157.14. We also intend to 
clarify that applications filed under NGA section 7(b) must also 
conform to the additional requirements set forth in section 157.18.
    Section 157.6(b) details the information required to be included in 
a filing made under this subpart as well as the applicable fees. The 
Commission proposes to amend this section to remove ``filing fee'' from 
the heading and any reference to filing fees in the section. Filing 
fees for such applications were removed by Order No. 548.24
---------------------------------------------------------------------------

    \24\ Elimination of Certain Filing Fees, Order No. 548, 58 FR 
2968 (Jan. 7, 1993).
---------------------------------------------------------------------------

    The Commission also proposes to add a new section 157.6(b)(8), 
which will require pipelines to file the information necessary to make 
an upfront determination on the rate treatment of new construction 
projects in accordance with the Commission's Statement of Policy in 
Docket No. PL94-4-000.25 This proposed addition will serve 
to put pipelines on notice that they must provide justification for 
their pricing of a particular construction project at the time an 
application is filed.
---------------------------------------------------------------------------

    \25\ Pricing Policy For New And Existing Facilities constructed 
By Interstate Natural Gas Pipelines, 71 FERC para. 61,241 (1995).
---------------------------------------------------------------------------

Section 157.8--Acceptance for filing or rejection of applications
    This section sets forth the criteria for acceptance or rejection of 
filings made under this subpart. The Commission proposes to revise this 
section to refer to the ``Office of Pipeline and Producer Regulation'' 
as the ``Office of Pipeline Regulation.'' The Commission is also 
proposing to amend this section to authorize the Director of OPR to 
reject applications that do not conform to the requirements of this 
part within 10 days of filing, without prejudice to the applicant's 
refiling a complete application. Currently, the Director must notify 
the applicant of all deficiencies and provide at least 20 days for the 
applicant to supplement the application and submit the omitted 
information. Revising this regulation is consistent with the existing 
authority the Director of OPR has to reject tariff or rate schedule 
filings as well as prior notice filings under the Subpart F blanket 
construction certificate pursuant to the authority delegated to the 
Director by the Commission in sections 375.307(b)(2) and (e)(6), 
respectively, of the Commission's regulations. However, we do not 
intend to reject applications that do not initially contain or include 
complete environmental reports because the pipeline has not been 
allowed access to the proposed route by the affected landowners to 
perform the necessary surveys. The Commission also proposes to amend 
section 385.2001(b) consistent with this proposed change.
Section 157.9--Notice of application
    This section details the notice requirements for applications. In 
order to help expedite the processing time for applications, we propose 
to issue a notice within 10 days of filing.
Section 157.10--Interventions and Protests
    This section details the requirements for intervening in Commission 
proceedings, including the filing of protests and requests for formal 
hearing. The Commission has determined that allowing interventions in 
response to Draft Environmental Impact Statements is also appropriate.
    In addition, we propose to amend section 157.10 to clarify that 
pipelines do not have to serve voluminous or difficult to reproduce 
materials, such as copies of environmental information, upon all 
parties in a proceeding, except as specifically requested. This 
procedure is consistent with our requirements for pipelines filing rate 
schedules and tariffs under part 154. Therefore, pipelines must serve a 
full copy of an application upon any party that requests such service 
within two business days. In addition, pipelines will be required to 
keep any voluminous or difficult to reproduce material, such as 
complete sets of environmental information, on file with the Commission 
and make such information available for inspection in the project area. 
The Commission intends for pipelines to make such information available 
in appropriate project areas, such as central locations along a 
proposed route. Because the scope of projects vary, we will not set 
forth specific locations for the placement of such information. 
However, we expect pipelines to make all such information readily 
available in the project area.
Section 157.14--Exhibits
    This section sets forth the exhibits that are required to be 
attached to each application filed under this subpart. The Commission 
proposes to amend section 157.14(a) to remove as outdated the reference 
to the initial date the Commission implemented its electronic filing 
requirements.
    In addition, existing section 157.14(a)(6-a)-(6-c), Exhibits F-I 
through F-III should be removed as outdated. The Commission proposes to 
replace those sections with a revised section 157.14(a)(6-a) Exhibit F-
I, which will be created from the environmental report required in new 
sections 380.12 through 380.14. These sections will replace the current 
Appendix A to part 380. This change is designed to expedite preparation 
and review of the environmental report since it will give better 
guidance than the current appendix and will standardize the format of 
the environment report, making it easier for the staff to find specific 
information. As stated, new section 380.12 is derived from the current 
optional format for the environmental report that is contained in the 
manual for electronic filing of applications. Many regulated companies 
already use this format. For a more detailed discussion of the proposed 
changes, see the section of this NOPR on part 380.
    Section 157.14(a)(11) currently requires pipelines to file detailed 
information pertaining to system-wide annual and peak day gas 
requirements, various historical residential commercial and industrial 
load requirements and related future estimates, historical supply 
curtailment information, transportation agreements, market surveys and 
a system supply life-index. The Commission recognizes that some of 
these requirements are outdated. The Commission is reviewing its 
policies concerning market need in the pending rulemaking in Docket No. 
RM98-10-000. Therefore, the Commission is not proposing any changes in 
this proceeding.
    Section 157.14(a)(12) currently requires pipelines to provide 
studies regarding any impacts related to potential direct industrial 
customers converting from other fuels to natural gas.

[[Page 55689]]

    This section was primarily used at times when pipelines performed a 
bundled merchant function and when priorities for natural gas use were 
relevant. Continuing to require the detailed information in this 
exhibit is no longer necessary, since the Commission's emphasis is on 
unbundled, open-access transportation, not bundled sales. End use 
priorities are irrelevant when adequate supply is available for all 
users. Thus, the Commission proposes to remove section 157.14(a)(12).
    Section 157.14(a)(14) requires an applicant to provide a plan for 
financing the proposed facilities. The Commission believes that some of 
the existing financial information is no longer needed. The Commission 
proposes to revise section 157.14(a)(14)(i)-(iv) to require, among 
other things, only the information the Commission needs to make a 
financial determination.
    The Commission also proposes to revise section 157.14(a)(14)(vi) to 
require that applicants state how they will determine the Allowance for 
Funds Used During Construction when the applicant is a pre-operational 
new entity or proposes incremental rates for services from the 
facilities covered by the application. The Commission proposes to add 
this requirement because the AFUDC rate formula contained in our 
accounting regulations contemplates rolled-in embedded cost ratemaking 
for entities with existing pipeline operations. 26 Depending 
on the specific facts and circumstances, use of the AFUDC rate formula 
may not be appropriate for newly formed entities or where rates for 
services from new facilities are to be determined on an incremental 
basis. The Commission also proposes to remove paragraphs (vii)-(xii) of 
section 154.14(a)(14).
---------------------------------------------------------------------------

    \26\ 18 CFR part 201, Gas Plant Instruction No. 3(17).
---------------------------------------------------------------------------

Section 157.16--Exhibits Relating to Acquisitions
    This section details the exhibits, in addition to those required in 
section 157.14, that must be filed for applications involving the 
acquisition of facilities. Specifically, the Commission proposes to 
revise section 157.16(c)(1) to require the pipeline to include a brief 
statement explaining the basis or methods used to derive the related 
depreciation, depletion and amortization reserves.
Section 157.17--Applications for Temporary Certificates in Cases of 
Emergency
    This section sets forth the criteria for seeking temporary 
certificate authorization to construct facilities or provide service in 
an emergency situation. The Commission proposes to amend sections 
157.17 (a) and (b) to remove as outdated the reference to the date the 
Commission initiated its electronic filing requirements.
Section 157.18--Applications to Abandon Facilities or Services; 
Exhibits
    This section details the requirements necessary for seeking 
abandonment authorization for facilities or service. In line with the 
discussion of the proposed clarification of section 157.6, the 
Commission proposes to add an explicit statement that makes it clear 
that an environmental report is required for certain kinds of 
abandonments as specified in section 380.3(c)(2).
    The Commission also proposes to amend section 157.18(f) (2) and (3) 
to provide information related to property abandoned by sale, including 
a brief statement explaining the basis or methods used to derive the 
accumulated depreciation related to the property to be disposed of, as 
well as the tax basis of such property.
Section 157.20--General Conditions Applicable to Certificates
    This section details terms and conditions that the Commission 
attaches to the issuance of each certificate. The Commission proposes 
to revise section 157.20(b) to allow for facilities to be completed 
``and made available for service'' instead of ``in actual operation'' 
within the period of time specified in a particular order. This 
proposed change is meant to address concerns that events outside a 
pipeline's control could prevent facilities from being placed in 
operation within the specified time frame, e.g., a shipper does not 
actually flow gas on time. Since this change will still require a 
pipeline to construct facilities and have them completed and 
``available'' within the time frame specified in the certificate order, 
the current intent of the regulations will not be frustrated. In order 
to ensure that pipelines have a legitimate reason for not commencing 
service on time, the Commission proposes to require the pipeline to 
provide notification of the reason service cannot commence, for 
example, that the end-user/shipper is unable to meet the imposed 
timetable. We also propose that section 157.20(c) and (d) be amended to 
remove as outdated the references to the date the Commission initially 
implemented its electronic filing requirements. In addition, section 
157.20(f) should be removed as obsolete since it refers to fees 
prescribed in section 159.2, which was removed from the regulations by 
Order No. 542 27. As a result, section 157.20(g) will be 
redesignated section 157.20(f).
---------------------------------------------------------------------------

    \27\ Deletion of Certain Outdated or Nonessential Regulations 
Pertaining to the Commission's Jurisdiction over Natural Gas, Order 
No. 542, 57 FR 21891 (May 26, 1992), FERC Stats. and Regs. para. 
30,945 (May 1, 1992).
---------------------------------------------------------------------------

Section 157.21--Abandonment of Purchases
    This section concerns the abandonment of purchases of natural gas 
by producers, as well as purchases under expired contracts between 
pipelines. The Decontrol Act deregulated all first sales of natural gas 
as of January 1, 1993. Additionally, Order No. 636 removed the 
section's applicability to pipeline sales, since Part 284 was amended 
to issue pipelines a blanket certificate for unbundled sales, along 
with pregranted abandonment. Abandonment of producer and pipeline 
purchases no longer require separate coverage under Part 157. 
Therefore, the Commission proposes to remove section 157.21 as 
obsolete.
Section 157.102--Contents of Application and Other Pleadings
    This section sets forth the contents required for applications, 
amendments, exhibits and other submissions made under this subpart. The 
Commission proposes to amend section 157.102(a)(1) to remove the last 
sentence, which refers to filing fees for applications filed under this 
subpart. Filing fees for such applications were removed by Order No. 
548.
    In addition, the Commission also proposes to amend the reference at 
section 157.102(b)(1)(v) to the currently required environmental report 
to comport with the revised wording at section 157.14(a)(6-a).
Section 157.103--Terms and Conditions; Other Requirements
    The section details the terms and conditions applicable to filings 
made under this subpart. The Commission proposes to amend section 
157.103(j) to remove the words ``and Producer'' from the reference to 
the ``Office of Pipeline and Producer Regulation.''

[[Page 55690]]

Subpart F--Interstate Pipeline Blanket Certificates and Authorization 
Under Section 7 of the Natural Gas Act for Certain Transactions and 
Abandonment
    Subpart F implements Order No. 234 28 and allows 
interstate pipelines to obtain blanket certificate authorization to 
conduct certain NGA section 7 transactions, including making sales for 
resale in interstate commerce. However, as part of the unbundling 
mandated by Order No. 636, interstate pipelines were issued blanket, 
unbundled sales certificates in accordance with Section 284.284. The 
Commission proposes to remove all references to blanket pipeline sales 
in subpart F of Part 157 as outdated.
---------------------------------------------------------------------------

    \28\ Interstate Pipeline Certificates for Routine Transactions, 
Order No. 234, 47 FR 24254 (June 4, 1982), FERC Stats. and Regs. 
para. 30,368 (May 28, 1982).
---------------------------------------------------------------------------

    This proposed action will not take away any blanket authority 
previously issued to interstate pipelines who have not restructured. 
Rather, it will conform the existing regulations to the current 
regulatory climate by requiring pipeline sales to be performed under 
Part 284.
    Nevertheless, interstate pipelines that do not have Subpart F 
blanket certificates and are not currently covered under Order No. 636 
can still seek individual NGA section 7(c) certificate authorization 
under Subpart A of Part 157 to make interstate sales of natural gas.
    In addition, the Commission proposes to revise various other 
sections in Subpart F in order to bring the existing regulations up to 
date to match current policies. These proposed changes will include 
removing obsolete language, eliminating ambiguities, and consolidating 
regulations.
Section 157.201--Applicability
    This section details the scope of the authority of this subpart. 
The Commission proposes to amend section 157.201(a) to remove reference 
to ``sales arrangements'' in the scope of the blanket certificate as 
obsolete.
Section 157.202--Definitions
    Section 157.202 defines the terms applicable to blanket certificate 
transactions under subpart F. In addition to making housekeeping-type 
changes, the Commission proposes to expand the definition of ``eligible 
facility'' contained in section 157.202(b)(2)(i). Currently, there are 
various types of facilities, most notably mainline and compression 
facilities, that are not eligible for automatic or prior notice 
treatment under the Subpart F blanket certificate. As previously 
described, the Commission proposes to allow pipelines to construct, 
operate, rearrange, replace and abandon more facilities than are 
currently covered under the blanket certificate, as more fully 
described below.
    In order to allow more flexibility under the blanket certificate, 
the Commission proposes to allow pipelines to construct, as eligible 
facilities, mainline and lateral replacements that do not currently 
qualify under section 2.55(b) because they will have an impact on the 
capacity of the mainline facilities. This proposal is meant to address 
the problem being faced by pipelines trying to replace, for example, a 
deteriorated or obsolete 40-year old 17-inch or 22-inch pipeline with 
like-sized pipe, or a section of deteriorated or obsolete 18-inch pipe 
located between existing 20-inch sections of pipe for continuity and/or 
pigging purposes. To the extent that odd-sized replacement pipe is not 
available, or continuity in line size is operationally necessary, a 
pipeline should be able to go up to the next available standard size in 
order to complete the replacement. Such replacements must be done for 
sound engineering reasons and not for the purpose of creating 
additional mainline capacity. These replacement facilities will still 
be subject to the spending limits in section 157.208 and the 
environmental requirements of section 157.206(d). In light of this 
change, we seek comment on the impact of this proposal as well as on 
whether or not to further expand the scope of the Subpart F blanket 
certificate.
    The Commission proposes to revise section 157.202(b) to add a new 
category under the blanket certificate titled ``Temporary 
Compression.'' 29 This is intended to allow pipelines to 
install temporary compression facilities to maintain certificated 
volumes during maintenance or repair of permanent compression 
facilities. This proposal is consistent with our issuance of blanket 
certificates for temporary compression,30 and is intended to 
extend such authorization to all Subpart F blanket certificate holders. 
The Commission proposes to implement this change by creating new 
section 157.209 Temporary compression facilities.
---------------------------------------------------------------------------

    \29\ We propose to replace Sec. 157.202(b)(4) ``Gas supply 
facility'' with ``Temporary compression'' as further discussed 
herein. Removal of the definition will not change the status of a 
gas supply facility as an eligible facility.
    \30\ See Northwest Pipeline Corporation, 67 FERC para. 61,289 
(1994) and Transwestern Pipeline Company, 76 FERC para. 61,211 
(1996).
---------------------------------------------------------------------------

    The Commission also proposes to revise section 157.202(b)(2)(i) in 
order to reconcile an ambiguity between the Subpart F blanket 
construction authority and the regulations implementing the Part 284 
blanket transportation certificates. We propose to specifically include 
receipt points as eligible facilities. In describing part 284 flexible 
receipt point authority, section 284.221(g)(3) includes, as receipt 
points to which natural gas volumes may be reassigned, eligible 
facilities under section 157.208 that are authorized to be constructed 
under the Subpart F blanket certificate. However, receipt points are 
not specifically included in the section 157.202 definition of eligible 
facilities. Therefore, the Commission proposes to revise section 
157.202(b)(2)(i) to clarify that it includes receipt points (``any 
facility, including receipt points, needed by the certificate holder to 
receive gas into its system'') as facilities eligible for construction 
under Subpart F. This clarification is consistent with an order issued 
in Texas Eastern Transmission Corporation,31 where the 
Commission recognized that Texas Eastern could rely on its part 157 
blanket construction certificate to construct receipt point facilities 
and other eligible facilities to provide transportation service for its 
open-access shippers.
---------------------------------------------------------------------------

    \31\ 62 FERC para. 61,196, at 62,390 (1993).
---------------------------------------------------------------------------

    We also propose to clarify that the reference in section 
157.202(b)(2)(i) to ``interconnecting points between transporters'' is 
intended to include only interconnecting facilities such as the tap, 
metering, M&R facilities and minor related piping as eligible 
facilities.
    Section 157.202(b)(2)(ii) sets forth the facilities that are not 
included as an ``eligible facility.'' These include mainlines or 
extensions of mainlines, compressors and looping that alter mainline 
capacity, storage facilities, and sales taps. Consistent with the 
proposed inclusion of the replacement facilities described above as 
eligible facilities, the Commission proposes to revise this section to 
recognize that these replacements are no longer excluded.
    The Commission also proposes to amend section 157.202(b)(2)(ii)(E) 
to remove the words ``Sales Tap'' and add, in their place, the words 
``Delivery points under section 157.211.'' In section 157.202(b)(10), 
we propose to remove the words ``Sales tap(s)'' and add in their place, 
the words ``Delivery points.'' This is intended to reflect the post-
restructuring unbundling of sales service. Sales tap is defined as a 
facility necessary to deliver gas to a distribution or end-use 
customer. The sales tap regulations were promulgated at a time when 
pipelines generally made sales for

[[Page 55691]]

resale from their own system supplies, rather than transport shipper/
user-owned gas. Delivery points, at the time, were used for direct 
sales. However, pipeline sales now occur at the unbundling point, which 
is located upstream of the general market area and no longer at the 
city-gate. Thus, facilities constructed to deliver gas to shipper/end-
users would now be considered delivery facilities and not sales taps. 
Delivery facilities include only the tap, M&R facilities and minor 
related piping.
    The Commission proposes to implement the change to section 
157.202(b)(2)(ii)(E) and section 157.202(b)(10) by removing existing 
section 157.212--Changes in delivery points--and revising section 
157.211--Sales taps--to become new section 157.211--Delivery points. 
This new section will provide for automatic and prior notice 
authorization to construct, replace, modify or operate any delivery 
point. The term modified would cover the conversion of receipt points 
to delivery points and vice versa. As proposed, pipelines will be able 
to construct facilities to attach new customers without going through 
the existing prior notice procedure, to the extent that the new 
delivery point does not involve bypass. The Commission proposes to 
retain the prior notice requirement in instances associated with 
bypass. In addition, taps currently constructed under section 2.55(d), 
which we propose to remove, will be covered by the automatic authority 
of section 157.211. Thus, pipelines holding blanket construction 
certificates will be able to automatically construct taps in order to 
either deliver gas to or take gas from independent producers.
    The Commission proposes to revise section 157.202(b)(2)(ii)(D), 
which excludes various storage facilities from the definition of 
``Eligible facility.'' We propose to combine sections 
157.202(b)(2)(ii)(D) and (G) and extend the blanket authority for tests 
or other minor storage operations which do not increase certificated, 
including grandfathered, storage capacity, provided the operation is 
otherwise able to meet the terms of section 157.208.
    Existing section 157.202(b)(4) defines a ``Gas supply facility''. 
We propose to remove the definition to reflect that gas attached is no 
longer exclusively destined for the merchant function of an interstate 
pipeline company. The phrase is commonly accepted and its removal 
should not cause any confusion. We propose to rename Section 
157.202(b)(4) ``Temporary compression'', which, as described above, 
means compressors installed for the limited purpose of maintenance or 
repair of existing permanent compressor unit(s).
    The Commission proposes to revise section 157.202(b)(5) to provide 
a more objective description of main line facilities. We propose to 
remove the phrase ``small diameter lateral'' and add, in their place, 
the words ``small diameter supply or delivery lateral'' to further 
clarify what facilities are not considered main line facilities.
    In order to clear up another ambiguity, we propose to revise 
section 157.202(b)(7), which defines the word ``Project'', to remove 
the phrase ``without any further construction of facilities.'' This 
phrase seems to preclude facilities that are jointly constructed. Since 
section 157.202(b)(8), which defines ``Project cost'', states, in part, 
``* * * In the case of a project constructed jointly * * *,'' this 
proposed change will recognize that jointly constructed facilities are 
contemplated under the Subpart F blanket certificate. However, the same 
total project cost limits apply to individual or jointly constructed 
facilities.
    The Commission proposes to remove section 157.202(b)(12) ``Storage 
service'' since storage is now provided under Subpart G of Part 284 as 
part of a pipeline's transportation blanket certificate. Consistent 
with this proposal, we intend to also remove section 157.213, as 
detailed below, which provides pipelines with blanket authority under 
Subpart F of Part 157 to provide storage services.
    The Commission proposes to remove sections 157.202(b)(13) and 
(b)(14) dealing with high priority end-use, because they relate to 
sales curtailment situations. These references are no longer relevant 
under the Subpart F blanket certificate. All existing sales service 
occurs under individual NGA section 7 authorization or under Subpart J 
of Part 284.
    The Commission also proposes certain other changes to the 
definitions contained in section 157.202. Those proposed changes are 
described in detail below, in the discussion of various other sections 
in Subpart F.
Section 157.203--Blanket Certification
    This section provides for blanket certificate coverage for the 
activities authorized by this subpart. We propose to amend this section 
to make conforming changes based on the proposals herein. The 
Commission proposes to remove references made in various parts of this 
section to sections 157.210 and 157.213, which provide for blanket 
sales and contract storage service. Both of these services are now 
covered by the blanket transportation and sales certificates issued 
under Part 284. We also propose to remove reference throughout this 
section to section 157.212, since it will be removed and replaced with 
section 157.211. The Commission proposes to add a reference in section 
157.203(b) to recognize that the blanket certificate is proposed to 
cover temporary compression facilities in new section 157.209(a). The 
Commission further proposes to amend section 157.203(b) to remove 
reference to section 157.217, which allows pipelines to permit 
customers to change rate schedules. Rate schedules are offered under 
Part 284 and may no longer need to be referenced in Subpart F. However, 
we recognize that there could be existing customers with NGA section 
7(c) individually certificated services that may, in the future, seek 
to use the existing authority in section 157.217. Therefore, we seek 
comment on our proposal to remove this section. In addition, we propose 
to amend section 157.203(c) to remove the references to section 
157.210,32 section 157.212 and section 157.213(b).
---------------------------------------------------------------------------

    \32\ We note that the 18 CFR Chapter I regulations contains a 
typographical error in Sec. 157.203(c) misidentifying the reference 
to Sec. 157.210 as Sec. 157.211 and Sec. 157.211(a)(2) as 
Sec. 157.211(b).
---------------------------------------------------------------------------

Section 157.204--Application Procedures
    This section details the procedures for interstate pipelines to 
apply for the blanket certificate authority available under this 
subpart. The Commission proposes to remove: (1) Section 157.204(d)(2), 
which refers to outdated budget-type certificates; (2) section 
157.202(d)(4) which requires filing a list of rate schedules under 
which sales or storage service is provided; and (3) section 
157.204(d)(5), which requires filing a list of storage field tests 
commenced under budget-type certificates. These sections are obsolete. 
The budget-type certificates have been completely replaced by the 
Subpart F blanket certificates and need not be referenced any longer. 
As a result, section 157.204(d)(3) will be redesignated section 
157.204(d)(2). Pipeline sales and storage service are provided under 
case-specific NGA section 7(c) certificates or under Part 284 and will 
no longer be covered under Subpart F. We also propose to remove section 
157.204(e), which refers to filing fees for applications for blanket 
certificates filed under this subpart. Filing fees for such 
applications were removed by Order No. 548.

[[Page 55692]]

Section 157.205--Notice Procedures
    Section 157.205 sets forth the notice procedure requirements 
applicable to activities under this subpart that do not qualify for 
automatic authorization. Section 157.205(a) provides that no blanket 
certificate activity shall be undertaken unless the notice procedures 
have been fulfilled and there are no active protests. The Commission 
proposes to amend section 157.205(a) to remove: (1) The reference to 
blanket sales and storage in sections 157.210 and 157.213(b) 
respectively, since those services are now covered under Part 284; (2) 
the reference to section 157.212, since, as described above, section 
157.212 will also be removed; and (3) the reference to section 
284.223(b) and the language ``or by Part 284'', because blanket 
transportation services under Part 284 were removed from the scope of 
the prior notice and protest procedures by Order No. 537.33
---------------------------------------------------------------------------

    \33\ Revisions to Regulations Governing Transportation Under 
Section 311 of the Natural Gas Policy Act of 1978 and Blanket 
Transportation Certificates, Order No. 537, 56 FR 50235 (Oct. 4, 
1991), FERC Stats. & Regs. para. 30,927 (Sept. 20, 1991). Order No. 
436 provided blanket transportation under Sec. 284.223(b), subject 
to the prior notice requirement under Subpart F. In Order No. 537, 
we removed this requirement to eliminate the incentive for pipelines 
to rely on NGPA section 311 transportation authority rather than 
their Part 284 blanket transportation certificates.
---------------------------------------------------------------------------

    Section 157.205(b) details the contents required for applications 
filed under the prior notice procedures. This section currently 
requires pipelines to file an original and fifteen copies of all prior 
notice applications. The Commission proposes to reduce the number of 
copies of applications that must be filed from fifteen to seven, which 
corresponds to the number of copies that are filed for applications 
under Subpart A of this chapter. We have determined that fifteen copies 
are not necessary for the Commission to process prior notice 
applications in a timely manner. Therefore, section 157.205(b) should 
be amended to remove the word ``fifteen'' and add, in its place 
``seven.'' In addition, section 157.205(b) should be amended to remove 
an obsolete reference to filing fees and outdated references to 
``October 31, 1989.'' In the same manner, section 157.205(c) should be 
removed in its entirety since it prescribes fees that have been removed 
by Order No. 548. As a result, paragraphs (d) through (i) should be 
redesignated (c) through (h).
    Redesignated sections 157.205(c) and (f) should also be amended to 
remove the words ``and Producer'' from the reference to the ``Office of 
Pipeline and Producer Regulation.''
    The Commission further proposes to amend redesignated section 
157.205(c) to add that deficient applications will be rejected within 
10 days of filing, without prejudice to the pipeline's refiling a 
complete application.
    In order to reduce the time it takes to process a prior notice 
filing, the Commission proposes to amend redesignated section 
157.205(d) to add that a notice be issued within 10 days of the date of 
filing, and to remove the current vague requirement ``as soon as it is 
practicable.''
    We are concerned that the existing regulation in redesignated 
section 157.205(e)(2) does not require parties to set forth specific 
and substantial reasons for protesting a prior notice filing. 
Therefore, we propose to amend section 157.205(e)(2) to add that 
protestors specifically set out the reasons and rationale for their 
protest.
    The Commission proposes to allow the Director of OPR to make a 
determination whether protests raise a substantive issue and provide 
any specific detailed reason or rationale for the objection, and if 
not, to dismiss them. We propose that redesignated sections 157.205(f), 
(g), and (h) include language authorizing the Director of OPR to 
dismiss such protests.
    Concurrently, we are proposing to amend the delegation of authority 
regulations by adding new section 375.307(a)(13), which will be 
redesignated section 375.307(a)(11), to allow the Director of OPR to 
dismiss such protests.
Section 157.206--Standard Conditions
    This section imposes certain conditions upon any activity a 
pipeline undertakes under its blanket certificate. We propose to remove 
section 157.206(b)--Production-related costs--because the Decontrol Act 
deregulated all wellhead price controls and Order No. 567 removed 
regulations pertaining to the sales of natural gas production. Since 
the Commission no longer regulates the sales price of natural gas, add-
ons to maximum lawful prices for such sales are no longer relevant.
    Section 157.206(c) states that the proper apportionment of costs 
related to transportation of liquids and liquefiables and natural gas 
will be determined in a rate proceeding. The revenue received from the 
transportation of liquids and liquefiables is currently reported in 
section 154.312(j)(2)(v)(C) [Schedule G-5. Other Revenues], and must be 
included when a pipeline files for a change in its rates or charges, 
except for a minor rate change. The revenue treatment is related to 
transportation performed under Part 284, and no longer needs to be in 
Subpart F. Therefore, we propose to remove section 157.206(c).
    The Commission proposes to create a lead-in to the environmental 
conditions of subpart F in section 157.206(d) to indicate that the 
conditions apply only to activities under the blanket certificate that 
involve ground disturbance or changes to operational air and noise 
emissions. This will avoid uncertainty about their applicability to 
sections of Subpart F that clearly have no potential for environmental 
impact.
    We propose to amend section 157.206(d)(1) to remove the reference 
to old section 2.69 and to replace it with a new section 380.15.
    The Commission also proposes to revise section 157.206(d)(5) to 
bring it into line with current usage concerning limitations on 
compressor station noise levels. This proposal parallels the proposed 
modification for the new environmental report for NGA section 7 
filings. (See the discussion of changes to Part 380.)
    The Commission proposes to remove existing section 157.206(e) as 
obsolete because budget-type certificates have been replaced by the 
Subpart F blanket certificates.
    The Commission proposes to revise existing section 157.206(f) to 
allow for facilities to be completed ``and made available for service'' 
instead of ``in actual operation'' within one year of authorization. 
See the related discussion of a similar change in section 157.20(b). In 
addition, we propose to amend section 157.206(e) to remove an obsolete 
reference to pipeline blanket sales and to remove the words ``and 
Producer'' from the reference to the ``Office of Pipeline and Producer 
Regulation.''
    In addition, section 157.206(g) should be removed as obsolete since 
the section refers to old PGA accounts and accounting which are no 
longer necessary under Subpart F.
    As a result of the proposed removal of sections 157.206(b),(c), 
(e), and (g), remaining sections 157.206(d),(f), and (g) should be 
redesignated as (b)-(d).
Section 157.207 General Reporting Requirements
    This section imposes certain reporting requirements on all 
interstate pipelines that accept a blanket certificate under Subpart F. 
The Commission proposes to revise section 157.207(b), regarding 
reporting information related to the construction of sales taps. We 
propose to make this change consistent with the previous discussion 
removing sales taps

[[Page 55693]]

from the definitions under Subpart F and replacing them with delivery 
taps.34
---------------------------------------------------------------------------

    \34\ See discussion of Sec. 157.202(b)(2)(E) and (b)(10).
---------------------------------------------------------------------------

    Storage is now considered transportation under Order No. 636 and 
covered under the blanket transportation certificate issued in section 
284.221. As discussed below, the Commission is proposing to remove the 
blanket authorization for storage services currently set forth in 
section 157.213. Reports on storage operations by interstate pipelines 
are included under the Part 284 reporting requirements. Because storage 
will no longer be covered under Subpart F, section 157.207(c) is 
obsolete. However, because we are adding new section 157.209 Temporary 
compression facilities, we propose to amend section 157.207(c) to 
include a report on such facilities.
    We propose to remove section 157.207(f) related to reports filed 
for changes in rates schedules authorized under section 157.217, since 
we are also proposing to remove section 157.217. Rate schedules are 
offered under Part 284 and no longer need to be referenced in Subpart 
F.
Section 157.208--Construction, Acquisition, Operation, and 
Miscellaneous Rearrangement of Facilities
    This section details the criteria necessary to construct, acquire, 
and operate any eligible facility and make miscellaneous rearrangement 
of any facility. Currently, this section authorizes a blanket 
certificate holder to perform certain activities on both an automatic 
and prior notice basis.
    Consistent with our proposed change to the definition of an 
eligible facility in section 157.202(b)(i), we clarify that sections 
157.208 (a) and (b) will now include certain replacement facilities 
that do not qualify under section 2.55(b), e.g., replacements made in 
conjunction with highway relocations where the replaced facilities are 
not identical to the original. These facilities will also include 
mainline replacements of different sizes that are necessary to match 
other line sizes for continuity and/or pigging and could result in 
increases in mainline capacity. Therefore, we intend to add the word 
``replacement'' in the title of section 157.208. We note that 
facilities eligible for automatic and prior notice authorization in 
this manner will still be subject to the cost limitations in section 
157.208 and the environmental conditions in redesignated section 
157.206(b).
    Section 157.208(c)(6) requires the certificate holder to provide 
gas supply, market data or studies that support the need for proposed 
facilities. This provision was required at a time when pipeline sales 
were provided under individual NGA section 7 transactions or under the 
Subpart F blanket certificate. Since pipelines no longer make bundled 
sales after implementation of open access transportation under Order 
Nos. 436 and 636, the construction of facilities under Subpart F 
support transportation services, not sales, authorized under Part 284. 
Thus, requiring gas supply or market data under Subpart F is no longer 
meaningful and we propose to remove section 157.208(c)(6).
    Section 157.208(c)(8) requires a statement showing the effect of 
the facilities to be constructed on the certificate holder's operating 
expenses and revenues. As reasoned above, since prior notice 
construction activities support already authorized Part 284 
transportation services, this section is no longer meaningful and 
should be removed.
    The existing section 157.208(c)(11), which will be redesignated as 
section 157.208(c)(9), sets forth the content of the environmental 
filing for construction under the blanket certificate. The Commission 
proposes to amend this section to add the specification that a copy of 
consultations for the Endangered Species Act, the National Historic 
Preservation Act, and the Coastal Zone Management Act be included in 
any prior notice filing made under this section. While this will 
increase the amount of paper filed, it will ensure proper compliance 
with the existing regulation and speed up review since currently this 
material is often the subject of data requests and sometimes protests.
    Section 157.208(d) sets the spending limits and inflation 
adjustment for automatic and prior notice activities under section 
157.208. The spending limits in this section are currently adjusted 
each calendar year to reflect the Gross National Product (GNP) implicit 
price deflator published by the Department of Commerce for the previous 
calendar year. For the past few years, we have based the inflation 
adjustments on the Gross Domestic Product (GDP) implicit price deflator 
rather than the GNP implicit price deflator, which was not published at 
the time we issued the orders adjusting the spending limits. We used 
the GDP instead of the GNP because the Commerce Department advised that 
in recent years the annual change has been virtually the same for both 
indices. Therefore, we propose to amend section 157.208(d) to remove 
the reference to the ``GNP implicit price deflator'' and add, in its 
place, a reference to the ``GDP implicit price deflator.'' We also 
propose to amend this section to remove the words ``and Producer'' from 
the reference to the ``Office of Pipeline and Producer Regulation and 
to correct an erroneous reference from ``section 375.307(t)'' to 
``section 375.307(d)''.
    Section 157.208(e) details the annual reporting requirements for 
facilities completed under this section. The Commission proposes to 
revise this section to require complete reports only for facilities 
constructed under the automatic authority conferred by section 
157.208(a). This change will recognize that the annual report will no 
longer include any information, except cost information, for 
construction prior notices authorized in section 157.208(b), because 
the required environmental information is already filed with the prior 
notice application. The effect will be to eliminate a duplicate filing.
    The Commission also proposes in section 157.208(e)(2) that the 
annual report indicate the date when construction began. This is 
critical since the Commission's compliance with the Endangered Species 
Act and National Historic Preservation Act depends on the required 
consultations occurring before construction begins. It is not common, 
but we have received a few reports indicating that this occurred after 
the fact. Requiring the date of construction to be provided may raise 
the industry's awareness of this important compliance issue.
    Currently, sections 157.208(e)(4)-(7) require pipelines to provide 
gas supply information and the names of the independent producers or 
other sellers from whom the gas is being received, along with gas sales 
or transportation contract information and FERC rate schedule 
designations. These sections were germane when pipelines primarily 
performed a merchant function and tracking of gas purchase costs was 
required. The information required here is no longer needed and we 
propose to remove these sections. These proposed changes will require 
redesignating section 157.208(e) so that existing sections (e)(8) and 
(e)(9) become (e)(4) and (e)(5), respectively.
    In addition, section 157.208(g) should be amended to remove the 
words ``and Producer'' from the reference to the ``Office of Pipeline 
and Producer Regulation.''

[[Page 55694]]

Section 157.209--Temporary Compression Facilities
    This new section is discussed in detail in our discussion of 
section 157.202(b) above.
Section 157.210--Sales for Resale
    This section was promulgated to authorize interstate pipelines to 
make off-system sales to other interstate pipelines. This section is 
now obsolete and should be removed from the regulations.
Section 157.211--Sales Taps
    This section provides for pipelines to construct and operate sales 
taps for delivery of gas to right-of-way grantors and end-users served 
by a pipeline's system supply. See the detailed discussion of section 
157.202(b)(2)(ii)(E) and section 157.202(b)(10), where we propose to 
replace ``Sales tap(s)'' with ``Delivery points'' and redefine section 
157.211 as Delivery points.
Section 157.212--Changes in Delivery Points
    The Commission proposes to remove this section as detailed in our 
discussion of section 157.202(b)(2)(ii)(E) and section 157.202(b)(10).
Section 157.213--Storage Services
    This section provides blanket certificate authorization for 
contract storage service and related incidental transportation. 
However, Order No. 636 redefined storage as transportation under 
section 284.1. The blanket transportation certificate issued in section 
284.221 now covers pipeline storage service as well. In the same manner 
that blanket pipeline sales are proposed to be removed from subpart F, 
section 157.213 should also be removed as obsolete. The current 
reporting requirements in section 284.106, which covers transactions 
under section 284.221, will provide the Commission with the information 
necessary to continue to monitor pipelines performing storage service.
    This proposed revision will grandfather all existing pipeline 
Subpart F blanket storage services and will only serve to remove the 
regulations prospectively.
Section 157.215--Underground Storage Testing and Development
    This section provides for automatic authorization, subject to 
certain conditions, for the construction and operation of pipeline and 
compression facilities to be used for the testing and development of 
underground reservoirs for the possible storage of gas.
    Consistent with the discussion of the modification of section 
157.208(e)(2), the Commission is proposing to require the certificate 
holder to identify the date construction began in revised section 
157.215(b)(1)(iii).
Section 157.216--Abandonment
    This section sets forth the requirements for automatic abandonment 
of gas supply facilities in section 157.216(a), as well as the prior 
notice requirements necessary to abandon sales taps, laterals and 
related facilities and service in section 157.216(b). The Commission 
proposes to remove the existing sections 157.216(a)(1) and (a)(2), 
which requires abandonment by the gas supplier, as obsolete. While 
pipelines may still need to construct and abandon gas supply facilities 
under their Subpart F blanket certificate, they no longer need any 
related supplier abandonment as a prerequisite.\35\ Therefore, sections 
157.216(a)(1) and (a)(2) will be removed.
---------------------------------------------------------------------------

    \35\ These sections authorize abandonment of gas supply 
facilities and service if the seller has been authorized to abandon 
the sale, or the sale has ceased and been removed from the 
Commission's jurisdiction by operation of section 601(a)(1) of the 
NGPA, respectively. After the Decontrol Act deregulated all first 
sales of natural gas as of January 1, 1993, the Commission issued 
Order No. 567. Order No. 567, among other things, recognized that 
first sales have been decontrolled and removed section 157.30, which 
governed the abandonment of sales by independent producers and first 
sellers, from the regulations. Thus, producers are no longer 
required to make certificate or abandonment filings related to their 
sales of natural gas.
---------------------------------------------------------------------------

    The Commission proposes a new section 157.216(a)(1) to specifically 
reference that receipt point facilities are eligible for automatic 
abandonment authorization under the subpart F blanket certificate. The 
Commission is proposing this clarification in order to eliminate any 
ambiguity regarding the eligibility of transportation receipt points 
for abandonment under the blanket certificate procedures.
    The Commission proposes to expand the automatic authority under 
section 157.216 to allow abandonment of firm and interruptible delivery 
points. The Commission proposes that interruptible delivery points that 
have not been used for transportation service during the prior year be 
eligible for automatic abandonment. However, the Commission does not 
propose to permit blanket certificate holders to abandon automatically 
firm delivery points under contracts that are in force and effect. 
Parties paying demand charges for primary points, whether in use or 
not, should retain the availability of those points. The Commission 
recognizes that there are other circumstances where abandonment of 
delivery points may be appropriate. Therefore, it proposes that firm 
delivery points no longer under contract and not in use during the 
preceding 12 months qualify for automatic abandonment. In order for a 
blanket certificate holder to abandon either interruptible delivery 
points or firm delivery points not under contract that have been in use 
during the prior year, it must proceed under the prior notice 
requirements set forth below.
    In addition, the Commission proposes to allow automatic 
authorization for abandonment of any eligible facility, subject to the 
pipeline's receiving written customer consent for specific facility 
abandonments. Consent is required from customers that have received 
service during the immediate past 12 month period. The Commission 
proposes the consent feature as a customer protection against 
unwarranted abandonment of facilities constructed to serve particular 
customers.
    In the past, the Commission has often found it difficult to review 
filings to abandon facilities under this section expeditiously, since 
there is currently no explicit requirement to describe the facilities 
to be abandoned, how they would be abandoned or where they are located. 
Therefore, the Commission proposes to include such a requirement at new 
section 157.216(c)(5).
    The Commission also proposes to amend the reporting requirement 
related to abandonments in section 157.216(d)(2) to remove reference to 
``the sale of gas and'' as outdated.
    At section 157.216(d)(4) and new section 157.216(d)(5) the 
Commission proposes to require that pipelines supply: (1) The date 
earth disturbance related to an abandonment began, and (2) the date 
clearances were actually received under the Endangered Species Act, the 
National Historic Preservation Act, and the Coastal Zone Management 
Act. This is for the same reasons, i.e., work processing improvement, 
discussed with respect to section 157.208(e).
Section 157.217--Changes in Rate Schedules
    The Commission proposes to remove this section, which provides 
pipelines with automatic authority to permit customers to change rate 
schedules. Rate schedules are offered under Part 284 and may no longer 
need to be referenced in Subpart F. However, the Commission recognizes 
that there could be existing customers with NGA section 7(c) 
individually certificated services that may, in the future, seek to use 
this authority. Therefore, the Commission

[[Page 55695]]

seeks comment on our proposal to remove this section.
Section 157.218--Changes in Customer Name
    The Commission proposes to revise this section. Under Part 284 
there is automatic authorization for name changes, subject to the 
filing of an updated Index of Customers. Therefore, any remaining need 
for this provision is limited to name changes related to individually 
certificated agreements.
Appendix I to Subpart F--Procedures for Compliance With the Endangered 
Species Act of 1973 Under Section 157.206(d)(3)(i)
    This appendix sets forth procedures that apply to blanket 
certificate holders that undertake projects subject to the 
environmental compliance requirements of current section 157.206(d). 
The Commission proposes to revise the appendix to reflect that the U.S. 
Fish and Wildlife Service (FWS) need only determine either (1) the 
project will not affect the listed species or critical habitat; (2) the 
project is not likely to aversely affect a listed species or critical 
habitat; or (3) no further consultation is needed. This change should 
remove any ambiguity regarding whether the current regulations require 
specific wording in the concurrence. In addition, this section also 
needs to be revised to make minor changes to correct typographical 
errors. The Commission proposes to change the reference in the title to 
``section 157.206(d)(3)(i)'' to read ``section 157.206(b)(3)(i)'' and 
to change all references to ``section 157.206(d)(2)(vii)'' to read 
``section 157.206(b)(2)(vi).'' These references are in the introduction 
and paragraphs 2, 3, and 4(b).
Appendix II to Subpart F--Procedures for Compliance With the National 
Historic Preservation Act of 1966 Under Sec. 157.206(d)(3)(ii)
    This appendix also sets forth procedures that apply to blanket 
certificate holders that undertake projects subject to the 
environmental compliance requirements of section 157.206(d). This 
section also needs to be amended to make minor changes to correct 
typographical errors in the appendix. The Commission proposes to change 
the reference in the title to ``section 157.206(d)(3)(ii)'' to read 
``section 157.206(b)(3)(ii)'' and to change all references to ``section 
157.206(d)(2)(iv)'' to read ``section 157.206(b)(2)(iii).'' In 
addition, this section should also be amended to remove an outdated 
reference to ``Environmental Evaluation Branch, Office of Pipeline and 
Producer Regulation'' and to add, in its place, ``environmental staff 
of the Office of Pipeline Regulation.'' These references are in the 
introduction and in paragraphs (4), (6), (7), and (8).

D. Part 284--Certain Sales and Transportation of Natural Gas Under the 
Natural Gas Policy Act of 1978 and Related Authority

    Part 284 sets forth the general provisions and conditions that 
govern certain sales and transportation of natural gas under the NGA 
and the NGPA.
Section 284.221--General rule; Transportation by Interstate Pipelines 
on Behalf of Others
    This section sets forth the requirements for an interstate pipeline 
to apply for a blanket transportation certificate. The Commission 
proposes to amend this section in order to remove various outdated or 
erroneous language.
    Section 284.221(d)(1)describes the limitations of the pregranted 
abandonment authority. The Commission proposes to amend this section to 
remove the reference to paragraph (d)(3). This change will reflect the 
removal of section 284.221(d)(3) from the regulations as explained 
below.
    Section 284.221(d)(3) states that pregranted abandonment does not 
apply where shippers converted from sales service to firm 
transportation service under the provisions of section 284.10 or under 
a separate agreement. The Commission proposes to remove this section as 
obsolete. Section 284.221(d)(3) was necessary during the industry 
transition from bundled to unbundled services, as is evidenced by its 
dependence on the conversion rights originally contained in section 
284.10. Section 284.10 provided an interim program for bundled sales 
customers to convert to firm transportation services. However, Order 
No. 636 has unbundled sales service, so that sales and transportation 
are now separate services and there is no further need for customers to 
convert from one to the other. In Order No. 581 36, the 
Commission removed and reserved section 284.10. Therefore, there is no 
continuing need for section 284.221(d)(3) and it should be removed.
---------------------------------------------------------------------------

    \36\ Revisions to Uniform System of Accounts, Forms, Statements, 
and Reporting Requirements for Natural Gas Companies, Order No. 581, 
60 FR 53019 (October 11, 1995), FERC Stats. and Regs. ] 31,026 
(September 28, 1995).
---------------------------------------------------------------------------

    The Commission proposes to revise section 284.221(f)(4). The 
section refers to sales taps being subject to the prior notice 
procedures in Subpart F. However, new section 157.211 relates to 
delivery points (which have been redefined to include sales taps) and 
confers both automatic authorization and authorization under the prior 
notice procedures of section 157.205.
    The Commission also proposes to amend section 284.221(h)(3) to 
remove the reference to ``section 157.212'' as obsolete. As noted 
above, delivery points are proposed to be constructed and operated 
under new section 157.211, on both an automatic basis and subject to 
the prior notice procedures.
Section 284.288--Reporting Requirements
    This section sets forth the annual reporting requirements for an 
interstate pipeline making sales under this subpart. Blanket sales 
certificates were issued to interstate pipelines in Order No. 636. 
There, the Commission required pipelines to file an annual report 
describing the type of service provided, the total volumes sold and the 
total revenues received. The Commission stated that such information 
would provide an indication of how the market is functioning and 
whether a pipeline has been able to exercise market power.
    The industry has completed its transition to a fully unbundled 
environment and pipelines are authorized to charge market-based rates 
for their sales in order to compete directly with third-party sellers 
of natural gas. In view of this, the Commission seeks comment on 
whether the information required by this section is still necessary or 
whether it has become obsolete, leading to removal of the section from 
the regulations.

E. Part 375--The Commission

    Part 375 sets forth the general provisions of the Commission, the 
procedures for Sunshine Act meetings and delegations of authority. We 
propose the following revisions to the subpart C delegation of 
authority regulations.
Section 375.307 Delegations to the Director of the Office of Pipeline 
Regulation.
    This section details the authorities delegated from the Commission 
to the Director of OPR. Sections 375.307(a)(1) and (a)(5) delegate to 
the Director of OPR the authority to grant applications or amendments 
for the construction, acquisition and operation of certain facilities 
that have a construction or acquisition cost of less than $5,000,000. 
The Commission proposes to increase this spending limit to match the 
prior

[[Page 55696]]

notice limits set forth in section 157.208(d) Limits and inflation 
adjustment. The Commission believes that adjusting the spending limit 
in this section will provide more flexibility and a faster regulatory 
track to pipelines that want to construct facilities that are not 
``eligible'' for prior notice treatment, i.e., mainlines, but are the 
subject of applications not formally protested, and whose costs exceed 
the $5,000,000 limit in this section. Pipelines should not, however, 
break projects into segments for the purpose of meeting the above-
stated spending limit.
    Section 375.307(a)(2) delegates to the Director of OPR the 
authority to grant applications filed under sections 157.7(b), (c), 
(d), (e), and (g) of this chapter. These sections originally set out 
rules for budget-type certificates for gas supply facilities, 
miscellaneous rearrangement of facilities, storage facilities, direct 
sales service and facilities and field compression and facilities. In 
Order No. 542,37 the Commission determined that the 
transactions covered by these sections were covered under subpart F of 
Part 157 of the regulations and removed sections 157.7(b)-(g) as 
unnecessary. Since these sections have been removed from the 
regulations, there is no need to retain section 375.307(a)(2).
---------------------------------------------------------------------------

    \37\ Deletion of Certain Outdated or Nonessential Regulations 
Pertaining to the Commission's Jurisdiction over Natural Gas, Order 
No. 542, 57 FR 21891 (May 26, 1992) FERC Stats. and Regs. 
para.30,945 (May 1, 1992).
---------------------------------------------------------------------------

    Section 375.307(a)(3) delegates abandonment authority to the 
Director of OPR for gas purchase facilities with a construction cost of 
less than $1 million or the deletion of delivery points. This authority 
is conditioned upon the producer's having been authorized to abandon 
its related service or the gas having been removed from the 
Commission's jurisdiction by operation of section 601(a)(1)(A) of the 
NGPA. The Decontrol Act deregulated all first sales of natural gas as 
of January 1, 1993 and Order No. 567 eliminated the regulations 
pertaining to producer sales and abandonment requirements. Therefore, 
this condition is obsolete and will be removed. While pipelines will 
still need authority to abandon gas purchase facilities and delete 
delivery points, we propose to expand this section to include 
abandonment of any facility. The Commission proposes to revise this 
section to allow the Director of OPR to act on uncontested applications 
for the abandonment of any pipeline facilities, including mainline and 
compression facilities, regardless of their construction cost. However, 
this section does not, as described in section 375.307(a)(4) below, 
cover facilities involving specific customers.
    Similarly, section 375.307(a)(4) delegates to the Director of OPR 
abandonment authority for pipeline or producer facilities or services. 
Since the Commission no longer regulates producer activities, this 
section should be amended to remove the reference ``or producer.''
    Section 375.307(a)(5) authorizes the Director of OPR to issue 
temporary or permanent certificates for transportation, exchange or 
storage service, provided the related facilities cost less than 
$5,000,000. For the same reasons detailed above, we propose to increase 
this spending limit to match the prior notice limits set forth in 
section 157.208(d) Limits and inflation adjustment. Under section 
375.307(a)(8), the Director of OPR can issue temporary or permanent 
certificates to independent producers. Since Order No. 567 removed the 
regulations pertaining to producer filings, this section should also be 
removed as obsolete.
    Section 375.307(a)(9) provides that the Director of OPR can 
authorize adding or changing delivery points or changing volumes 
between existing delivery points under NGA section 7(c), provided that 
the pipeline ``sales'' volumes remain within total existing contract 
demand and certificated levels. We propose to remove this section as 
obsolete. Since unbundling under Order No. 636, we no longer need to 
monitor changes in delivery points for sales volumes, because pipelines 
transport gas to customers' delivery points. Changes in delivery points 
for transportation volumes are now covered under section 157.211.
    We propose new section 375.307(a)(10) to delegate to the Director 
of OPR the authority to dismiss protests to prior notice filings that 
the Director determines do not raise a substantive issue and fail to 
provide any specific detailed reason or rationale for the objection. We 
propose to amend section 157.205(g) to add that such protests may be 
dismissed.
    Section 375.307(a)(17) delegates to the Director of OPR authority 
to act on certificates and related rate schedules of independent 
producers. Since Order No. 567 eliminated the regulations pertaining to 
producers, the Commission proposes to remove this section as obsolete.
    Section 375.307(a)(18) authorizes the Director of OPR to act on 
offers of settlement in the Independent Oil and Gas Association of West 
Virginia proceedings in Docket Nos. RI74-188 and RI75-21 involving 
indefinite price escalator clauses (also referred to as area rate 
clauses).38 On December 10, 1996, the Presiding 
Administrative Law Judge issued an Initial Decision Terminating 
Proceedings in the above dockets.39 The initial decision 
found that all pipeline parties have settled or otherwise satisfied all 
claims asserted against them in these proceeding and that no issues 
remained. On January 21, 1997, the Commission issued a Notice of 
Finality of Initial Decision allowing the December 16, 1996 initial 
decision to become a final Commission decision.40 Therefore, 
the Commission proposes to remove this section. With the deletion of 
sections 375.307(a)(2), (8), (9), (17) and (18), the remaining 
paragraphs are redesignated as (a)(2) through (a)(13).
---------------------------------------------------------------------------

    \38\ See Opinion No. 77, 10 FERC para. 61,214 (1980).
    \39\ Independent Oil & Gas Association of West Virginia, 77 FERC 
para. 63,020 (1996).
    \40\ Independent Oil & Gas Association of West Virginia, 78 FERC 
para. 61,052 (1997).
---------------------------------------------------------------------------

    Section 375.307(b) authorizes the Director of OPR to act upon a 
variety of filings related to rate schedules filed by natural gas 
companies. Section 375.307(b)(4) allows the Director of OPR to accept 
rate filings of jurisdictional natural gas companies which involve 
replacement and rollover contracts. Section 375.307(b)(5) allows the 
Director of OPR to accept statements of eligibility by producers filed 
under section 2.56 41 and section 157.40. As noted above, 
following issuance of the Decontrol Act, Order No. 567 eliminated the 
regulations pertaining to producers. Therefore, the Commission proposes 
to remove sections 375.307(b)(4) and (b)(5) as obsolete.
---------------------------------------------------------------------------

    \41\ Section 2.56 was a policy statement concerning area rates 
for natural gas sales by independent producers. This section was 
removed from the regulations by Order No. 542 as obsolete because 
the NGPA superseded area rates.
---------------------------------------------------------------------------

    Section 375.307(c) authorizes the Director of OPR to take certain 
actions under the NGPA, including computing maximum lawful prices under 
section 375.307(c)(1), notifying jurisdictional agencies under section 
375.307(c)(2), and passing on uncontested requests for extensions of 
time to file reports under section 284.148(c) under section 
375.307(c)(3). These sections are now obsolete and the Commission 
proposes to remove all of section 375.307(c). Sections 375.307(c)(1) 
and (c)(2) are outdated because the Wellhead Decontrol Act deregulated 
all first sales of natural gas as of January 1, 1993 and Order No. 567 
eliminated the regulations pertaining to the sales of natural gas 
production. Section 375.307(c)(3) is no longer germane since it is 
linked to reports filed under section

[[Page 55697]]

284.148(c), which has been removed by Order No. 581.42
---------------------------------------------------------------------------

    \42\ Revisions to Uniform Systems of Accounts, Forms, 
Statements, and Reporting Requirements for natural gas Companies, 
Order No. 881 (Oct. 11, 1995).
---------------------------------------------------------------------------

    Section 375.307(e)(3) authorizes the Director of OPR to initiate an 
annual survey of winter gas supply. The Commission no longer requires 
the submission of detailed gas supply information in support of new 
construction projects. Pipelines proposing new construction are 
currently required only to describe the production areas accessible 
that contain existing or potential supplies for the proposed 
project.43 In Order No. 554,44 the Commission 
revised its regulations to remove the requirement that natural gas 
pipeline companies file FERC Form No. 15, ``Interstate Pipeline's 
Annual Report of Gas Supply,'' and FERC Form No. 16, ``Report of Gas 
Supply and Requirements.'' The Commission found that the information in 
those reports was no longer necessary since the interstate pipelines 
have evolved from performing primarily as merchants of natural gas to 
providing primarily transportation services to non-pipeline shippers. 
For the same reason, the Commission is proposing to remove section 
375.307(e)(3).
---------------------------------------------------------------------------

    \43\ See section 157.14(a)(10), Exhibit H--Total gas supply 
data.
    \44\ Revisions to the Regulations Governing Natural Gas 
Pipelines, Order No. 554, 58 FR 38524 (July 19, 1993), FERC Stats. 
and Regs. para. 30,973 (July 13, 1993).
---------------------------------------------------------------------------

    Section 375.307(e)(7) authorizes the Director of OPR to grant any 
producer's uncontested application for abandonment. Since Order No. 567 
removed the regulations pertaining to producers, the Commission 
proposes to remove this section as obsolete.
    The existing section 375.307(f)(3), which will be redesignated as 
section 375.307(e)(3), will delegate to the Director of OPR the 
authority to waive fees prescribed in various sections of the 
regulations. The Commission proposes to remove the reference in 
redesignated section 375.307(e)(3) to section 381.402 as outdated.
    Since we propose to remove section 375.307(c), remaining sections 
375.307(d)-(g) should be redesignated section 375.307(c)-(f).

F. Part 380--Regulations Implementing the National Environmental Policy 
Act

    The regulations in Part 380 implement the Commission's procedures 
under the NEPA. These regulations supplement the regulations of the 
Council on Environmental Quality (CEQ), 40 CFR Parts 1500 through 1508 
(1986). Part 380 essentially follows the CEQ procedures concerning 
early and efficient review of environmental issues, public notice and 
participation, scooping, interagency cooperation, comments, and timing 
of decisions on proposals.
Section 380.4--Projects or Actions Categorically Excluded.
    As a procedural matter, the Commission proposes to amend section 
380.4(a)(28) to the correct a typographical error by replacing the word 
``tops'' with ``taps''.
Section 380.12--Environmental Reports for Natural Gas Act Applications.
    The Commission proposes to replace Part 380 Appendix A (guidelines 
for the environmental report), which is out of date and contains 
numerous errors, with the currently optional Appendix G resource 
reports in the electronic filing requirements, which virtually all 
companies are now using instead of Appendix A. These resource reports 
would be in new section 380.12. In section 380.12 the Commission 
proposes to list, in detail, the information it needs to conduct an 
environmental review of a proposal under NEPA. Applications not meeting 
a minimum specified portion of these requirements will be rejected. It 
is very inefficient for the Commission's staff to try to process 
filings with minimal data for analysis while the applicant files the 
necessary information in a piecemeal fashion. Moreover, accepting 
incomplete applications fosters unreasonable expectations by the 
applicant, i.e., filling in the blanks as time progresses, and 
expecting staff to be able to complete its analysis as if the 
application had been complete from the beginning.
    In addition, it causes undue concern to landowners and other 
opponents. This is also a practice that the industry is not allowed to 
follow at other agencies. Acceptance of such incomplete filings can 
cause affected parties and staff to prematurely expend significant 
effort which may ultimately be unnecessary or duplicative once the 
project is more fully developed. Nor does filing prematurely confer any 
real competitive advantage on the applicant. Any perceived advantage of 
filing early is nullified by our practice of not noticing incomplete 
applications. The applicant with a complete filing can expect expedited 
processing with minimal delays due to data requests.
    The information listed in proposed section 380.12 would not only 
provide better guidance to the regulated industry on what the 
Commission needs for its environmental analysis, but when the 
information should be provided. Both of these factors have a strong 
impact on the staff's ability to quickly process applications in a way 
that protects the environment and ensures the procedural requirements 
of NEPA are met.
    Some of these changes include:

     Adding a new Resource Report 13 on Liquified Natural Gas (LNG) 
engineering filing requirements.
     Adding a requirement to compare the proposal to the 
staff's current ``Upland Erosion Control, Revegetation, and 
Maintenance Plan'' and ``Wetland and Waterbody Construction and 
Mitigation Procedures.''
     Specifying that supplemental or amendment filings which 
include changes in facility locations provide tables showing exactly 
how the substitution of those locations for the ones originally 
proposed affects the environmental factors relevant to the locations 
on file prior to the amendment.

    Additionally, proposed section 380.12(c)(2) lists the information 
the Commission needs to consider the environmental impact of related 
nonjurisdictional facilities that would be constructed upstream or 
downstream of the jurisdictional facilities for the purpose of 
delivering, receiving, or using the proposed gas volumes. Integrally-
related nonjurisdictional facilities could include major power 
facilities, such as cogeneration plants, as well as less significant 
facilities, such as lateral pipeline connections built by local 
distribution companies. The extent of the Commission's analyses of 
nonjurisdictional facilities depends on the Commission's determination 
of its and other Federal agencies' control and responsibility over 
these facilities.
Section 380.13--Compliance With the Endangered Species Act
    This section makes it clear how the Commission expects applicants 
to assist the Commission in complying with its responsibilities under 
the Endangered Species Act. It is similar to the current process under 
the blanket certificate program of Subpart F of Part 157 of this 
chapter and is fashioned to parallel the regulations implementing the 
Endangered Species Act. This process is to be used when the applicant 
is preparing the environmental documents required by section 
380.12(e)(5).
Section 380.14--Compliance With the National Historic Preservation Act
    This section identifies applicants as non-Federal parties and 
specifies principles that natural gas companies are expected to follow 
in assisting the Commission in complying with its responsibilities 
under the National Historic Preservation Act. These

[[Page 55698]]

principles are to be used when the applicant is preparing the 
environmental documents required by section 380.12(f).
Section 380.15--Siting and Maintenance Requirements
    The Commission also proposes that the facility siting guidelines 
currently at section 2.69 would be redesignated as new section 380.15. 
This would put them with the rest of the environmental regulations.
Appendix A to Part 380--Minimum Filing Requirements for Environmental 
Reports Under the Natural Gas Act
    The Commission proposes to replace the old Part 380 Appendix A with 
a checklist of minimum environmental filing requirements. The checklist 
in the proposed new Appendix A represents the minimum filing 
requirement an applicant would need to provide the Commission at the 
time the application is filed. Failure to provide these minimum 
requirements would result in the application's being rejected.

G. Part 385--Rules of Practice and Procedure

    Part 385 sets forth the Commission's Rules of Practice and 
Procedure. The Commission is proposing to revise certain of the 
regulations under Subpart T relating to the rejection of filings and to 
electronic filing of applications.
Section 385.2001--Filings (Rule 2001)
    Consistent with our proposal to reject patently deficient filings 
under section 157.8 and section 157.205(d), the Commission proposes to 
modify section 385.2001(b)(3), dealing with rejection of filings, to 
provide for a letter of rejection indicating the reasons for rejection.

V. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act (RFA) requires agencies to prepare 
certain statements, descriptions, and analyses of proposed rules that 
will have a significant impact on a substantial number of small 
entities.45 The Commission is not required to make such 
analysis if a rule would not have such an effect.
---------------------------------------------------------------------------

    \45\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    The Commission does not believe that this rule would have such an 
impact on small entities. Most filing companies regulated by the 
Commission do not fall within the RFA's definition of small 
entity.46 Further, the filing requirements of small entities 
are reduced by the rule. Therefore, the Commission certifies that this 
rule will not have a significant economic impact on a substantial 
number of small entities.
---------------------------------------------------------------------------

    \46\ 5 U.S.C. 601(3), citing to section 3 of the Small Business 
Act, 15 U.S.C. 632. Section 3 of the Small Business Act defines a 
``small-business concern'' as a business which is independently 
owned and operated and which is not dominant in its field of 
operation.
---------------------------------------------------------------------------

VI. Environmental Statement

    The Commission excludes certain actions not having a significant 
effect on the human environment from the requirement to prepare an 
environmental assessment or an environmental impact 
statement.47 No environmental consideration is raised by the 
promulgation of a rule that is procedural or that does not 
substantially change the effect of legislation or regulations being 
amended.48 The instant rule updates the various regulations 
and does not substantially change the effect of the underlying 
legislation or the regulations being revised or eliminated.
---------------------------------------------------------------------------

    \47\ 18 CFR 380.4.
    \48\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

    The primary effect of this rule is procedural or changes some of 
the filing requirements placed on applicants. It also clarifies some of 
the existing regulations (Sec. 2.55) without changing their effect. 
These clarifications and changes to filing requirements have no 
potential for environmental effect. Whether the Commission approves or 
denies the application is the Federal action that can be said to have 
an environmental effect.
    There are only minor changes to what a project sponsor may 
construct under the blanket certificate program with little or no 
Commission review. Eligible facilities now include mainline and lateral 
replacements and wells in a certificated storage field. However, there 
is no difference, from an environmental standpoint, between the 
pipeline that could be built under the previous regulations and these 
proposed regulations. In addition, wells may already be drilled under 
the blanket program for testing and development of fields for storage 
of natural gas (Sec. 157.215). The change proposed herein does not 
allow drilling of wells for the purpose of increasing the capacity of 
the storage field, only for enhanced operational efficiency. An 
Environmental Assessment was done for the blanket program in July of 
1981. For these reasons, no environmental analysis is necessary.

VII. Public Comment Procedures

    The Commission invites all interested persons to submit written 
comments on this NOPR.
    The original and 14 copies of such comments must be received by the 
Commission before 5:00 p.m. December 1, 1998. Comments should be 
submitted to the Office of the Secretary, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington DC 20426 and should refer 
to Docket No. RM98-9-000. Commenters also can submit comments on 
computer diskette in WordPerfect 6.1 or lower format or in ASCII 
format, with the name of the filer and Docket No. RM98-9-000 on the 
outside of the diskette.
    All comments will be placed in the Commission's public files and 
will be available for inspection in the Commission's Public Reference 
room at 888 First Street, NE., Washington, DC 20426, during regular 
business hours. Additionally, comments can be viewed and printed 
remotely via the Internet through FERC's Homepage using the RIMS link 
or the Energy Information Online icon. User assistance is available at 
202-208-2222, or by E-mail to [email protected].

List of Subjects

18 CFR Part 2

    Administrative practice and procedure, Electric power, Natural gas, 
Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 153

    Exports, Imports, Natural gas, Reporting and recordkeeping 
requirements.

18 CFR Part 157

    Administrative practice and procedure, Natural gas, Reporting and 
recordkeeping requirements.

18 CFR Part 284

    Continental shelf, Incorporating by Reference, Natural gas, 
Reporting and recordkeeping requirements.

18 CFR Part 375

    Authority delegations (Government agencies), Seals and insignia, 
Sunshine Act.

18 CFR Part 380

    Environmental impact statements, Reporting and recordkeeping 
requirements.

18 CFR Part 385

    Administrative practice and procedure, Electric power, Penalties, 
Pipelines, Reporting and recordkeeping.


[[Page 55699]]


    By direction of the Commission.
David P. Boergers,
Secretary.

    In consideration of the foregoing, the Commission proposes to amend 
Parts 2, 153, 157, 284, 375, 380, 381 and 385, Chapter I, Title 18, 
Code of Federal Regulations, as set forth below.

PART 2--GENERAL POLICY AND INTERPRETATIONS

    1. The authority citation for Part 2 continues to read as follows:

    Authority: U.S.C. 601; 15 U.S.C. 717-717w, 3301-3432; 16 U.S.C. 
792-825y, 2601-2645; 42 U.S.C. 4321-4361, 7101-7352.


Sec. 2.1  [Amended]

    2. In Sec. 2.1, paragraph (a)(1)(viii)(A) through (D) are removed 
and (a)(1)(viii) introductory text is removed and reserved.
    3. In Sec. 2.55, paragraph (a) is amended to add a new sentence at 
the end; (b)(1) (ii) and (iii) are revised; and paragraph (d) is 
removed and reserved, to read as follows:


Sec. 2.55  Definition of terms used in section 7(c).

* * * * *
    (a) * * * Facilities constructed along with new transmission 
facilities do not qualify as auxiliary installations for the purposes 
of this section.
    (b) * * *
    (1) * * *
    (ii) The replacement facilities will have a substantially 
equivalent designed delivery capacity, will be located in the same 
right-of-way or on the same site as the facilities being replaced, and, 
except as specified in paragraph (b)(1)(iv) of this section will be 
constructed using the temporary work space used to construct the 
replaced facility (See Appendix A of this part for guidelines on what 
is considered to be the appropriate work area in this context);
    (iii) Except as described in paragraph (b)(2) of this section, the 
company files notification of such activity with the Commission at 
least 30 days prior to commencing construction.
* * * * *
    (d) [Reserved]


Sec. 2.69  [Removed]

    4. Section 2.69 is removed and reserved.


Sec. 2.102  [Removed]

    5. Section 2.102 is removed and reserved.
    6. Appendix A to Part 2 is added to read as follows:

Appendix A to Part 2--Guidance for Determining the Acceptable 
Construction Area for Replacements

    1. Pipeline replacement must be within the existing right-of-way as 
specified by Sec. 2.55(b)(1)(ii). Construction activities for the 
replacement can extend outside the current permanent right-of-way to 
the extent that they are constrained by the temporary and permanent 
right-of-way and associated work spaces used in the original 
installation.
    2. If documentation is not available on the location and width of 
the temporary and permanent rights-of-way and associated work space 
that was used to construct the original facility, the company may use 
the following guidance in replacing its facility, providing the 
appropriate easements have been obtained:
    a. Construction should be limited to no more than a 75-foot-wide 
right-of-way including the existing permanent right-of-way for large 
diameter pipeline (pipe greater than 12 inches in diameter) to carry 
out routine construction. Pipeline 12 inches in diameter and smaller 
should use no more than a 50-foot-wide right-of-way.
    b. The temporary right-of-way (working side) should be on the 
same side that was used in constructing the original pipeline.
    c. A reasonable amount of additional temporary work space on 
both sides of roads and interstate highways, railroads, and 
significant stream crossings and in side-slope areas is allowed. The 
size should be dependent upon site-specific conditions. Typical work 
spaces are:

------------------------------------------------------------------------
                                             Typical extra area (width/
                   Item                                length)
------------------------------------------------------------------------
Two lane road (bored).....................  25-50 by 100 feet.
Four lane road (bored)....................  50 by 100 feet.
Major river (wet cut).....................  100 by 200 feet.
Intermediate stream (wet cut).............  50 by 100 feet.
Single railroad track.....................  25-50 by 100 feet.
------------------------------------------------------------------------

    d. The replacement facility must be located within the permanent 
right-of-way or, in the case of nonlinear facilities, the cleared 
building site. In the case of pipelines this is assumed to be 50-
feet-wide and centered over the pipeline unless otherwise legally 
specified.
    3. However, use of the these guidelines for work space size is 
constrained by the physical evidence in the area. Areas obviously 
not cleared during the original construction, as evidenced by stands 
of mature trees, structures, or other features that exceed the age 
of the facility being replaced, should not be used for construction 
of the replacement facility.
    4. If these guidelines cannot be met, the company should consult 
with the staff to determine if the exemption afforded by Sec. 2.55 
of this chapter may be used. Usually, it may not and construction 
authorization must be obtained pursuant to another regulation under 
the Natural Gas Act.

PART 153--APPLICATIONS FOR AUTHORIZATION TO CONSTRUCT, OPERATE, OR 
MODIFY FACILITIES FOR THE EXPORT OR IMPORT NATURAL GAS

    7. The authority citation for Part 153 continues to read as 
follows:

    Authority: 15 U.S.C. 717b, 717o; E.O. 10485, 3 CFR, 1949-1953 
Comp., p. 970, as amended by E.O. 12038, 3 CFR, 1978 Comp., p. 136, 
DOE Delegation Order No. 0204-112, 49 FR 6684 (February 22, 1984).

    8. In Sec. 153.8, paragraph (a)(7) is revised to read as follows:


Sec. 153.8  Required exhibits.

    (a) * * *
    (7) Exhibit F. An environmental report as specified in 
Sec. 380.3 and Sec. 380.12 of this chapter. Applicant must submit 
all appropriate revisions to Exhibit F whenever route or site 
changes are filed. These revisions should identify the specific 
differences resulting from the route or site changes, and not just 
provide revised totals for the resources affected; and
* * * * *
    9. In Sec. 153.21, paragraph (b) is revised to read as follows:


Sec. 153.21  Conformity with requirements.

* * * * *
    (b) Rejection of applications. If an application does not conform 
to the requirements of this part, the Director of the Office of 
Pipeline Regulation may reject the application within 10 days of filing 
as provided by Sec. 385.2001(b) of this chapter. An application that 
relates to an operation, service, or construction concerning which a 
prior application has been filed and rejected, shall be docketed as a 
new application. Such new application shall state the docket number of 
the prior rejected application.

PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND 
NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER 
SECTION 7 OF THE NATURAL GAS ACT

    10. The authority citation for Part 157 continues to read as 
follows: st

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

    11. In Sec. 157.6, paragraphs(a)(1)-(4) are revised; a new 
paragraph (a)5 is added; the heading in paragraph (b) revised; and a 
new paragraph (b)(8) is added to read as follows:

[[Page 55700]]

Sec. 157.6  Applications; general requirements.

    (a) Applicable rules--(1) Submission required to be furnished by 
applicant under this subpart. Applications, amendments thereto, and all 
exhibits and other submissions required to be furnished by an applicant 
to the Commission under this subpart must be submitted in an original 
and 7 conformed copies. To the extent that data required under this 
subpart has been provided to the Commission, this data need not be 
duplicated. The applicant must, however, include a statement 
identifying the forms and records containing the required information 
and when that form or record was submitted.
    (2) The following must be submitted in electronic format as 
prescribed by the Commission:
    (i) Applications;
    (ii) Exhibits to applications;
    (iii) Applications covering acquisitions and all attached exhibits;
    (iv) Applications for temporary certificates;
    (v) Applications to abandon facilities or services and attached 
exhibits;
    (vi) The progress reports required under Sec. 157.20(c) and (d);
    (vii) Applications submitted under Subpart E of this part;
    (viii) Applications under Subpart F of this part;
    (ix) Requests for authorization under the notice procedures 
established in Sec. 157.205;
    (x) The annual report required by Sec. 157.207;
    (xi) The report required under Sec. 157.214 when storage capacity 
is increased;
    (xii) Amendments to any of the sections listed in paragraph (a)(2).
    (3) All filings must be signed in compliance with the following:
    (i) The signature on a filing constitutes a certification that: the 
signer has read the filing signed and knows the contents of the paper 
copies and electronic filing; the paper copies contain the same 
information as contained in the electronic filing; the contents as 
stated in the copies and in the electronic filing are true to the best 
knowledge and belief of the signer; and the signer possesses full power 
and authority to sign the filing.
    (ii) A filing must be signed by one of the following:
    (A) the person on behalf of whom the filing is made;
    (B) an officer, agent, or employee of the governmental authority, 
agency, or instrumentality on behalf of which the filing is made; or,
    (C) a representative qualified to practice before the Commission 
under Sec. 385.2101 of this chapter who possesses authority to sign.
    (4) Suitable means of electronic transmission or electronic media 
suitable for Commission filings are listed in the instructions for each 
form and filing. Lists of suitable electronic media are available upon 
request from the Commission. The formats for the electronic filing and 
paper copy can be obtained at the Federal Energy Regulatory Commission, 
Public Information and Reference Branch, 888 First Street, NE., 
Washington, D.C. 20426.
    (5) Other requirements. Applications under section 7 of the Natural 
Gas Act must conform to the requirements of Secs. 157.5 through 157.14. 
Amendments to or withdrawals of applications must conform to the 
requirements of Secs. 385.213 and 385.214 of this chapter. If the 
application involves an acquisition of facilities, it must conform to 
the additional requirements prescribed in Secs. 157.15 and 157.16. If 
the application involves an abandonment of facilities or service, it 
must conform to the additional requirements prescribed in Sec. 157.18.
    (b) General content of application.
* * * * *
    (8) For applications to construct new facilities, the complete 
information necessary for the Commission to make an upfront 
determination on the rate treatment of the proposed project in 
accordance with the Statement of Policy in Docket No. PL94-4-000, if 
the applicant does not propose to charge incremental rates. The Policy 
Statement can be found at 71 FERC (CCH) para. 61,241 (1995) or on the 
FERC Homepage at http://www.ferc.fed.us/news1/policy/pages/policy.htm. 
Such information should include, but is not limited to the following:
    (i) Documentation specifically showing that an expansion project 
will increase system or operational reliability, or provide other 
financial benefits;
    (ii) Detailed cost-of-service data supporting the cost of the 
expansion project, a detailed study showing the revenue responsibility 
for each firm rate schedule under the pipeline's currently effective 
rate design and under the pipeline's proposed rolled-in rate design, a 
detailed rate impact analysis by rate schedule (including by zone, if 
applicable), and an analysis reflecting the impact of the fuel usage by 
zone resulting from the proposed expansion project.
* * * * *
    12. Section 157.8 is revised to read as follows:


Sec. 157.8  Acceptance for filing or rejection of applications.

    Applications will be docketed when received and the applicant so 
advised. If an application does not conform to the requirements of this 
part, the Director of the Office of Pipeline Regulation may reject the 
application within 10 days of filing as provided by Sec. 385.2001(b) of 
this chapter. This rejection is without prejudice to an applicant's 
refiling a complete application. However, an application will not be 
rejected solely on the basis of environmental reports that are 
incomplete because the company has not been granted access by the 
affected landowner(s) to perform required surveys, etc. An application 
which relates to an operation, sale, service, construction, extension 
acquisition, or abandonment concerning which a prior application has 
been filed and rejected, shall be docketed as a new application. Such 
new application shall state the docket number of the prior rejected 
application.
    13. In Sec. 157.9, the first sentence is revised to read as 
follows:


Sec. 157.9  Notice of application.

    Notice of each application filed, except when rejected in 
accordance with Sec. 157.8, will be issued within 10 days of filing, 
and subsequently will be published in the Federal Register and copies 
of such notice mailed to States affected thereby. * * *
    14. Section 157.10 is revised to read as follows:


Sec. 157.10  Interventions and protests.

    Notices of applications, as provided by Sec. 157.9, will fix the 
time within which any person desiring to participate in the proceeding 
may file a petition to intervene, and within which any interested 
regulatory agency, as provided by Sec. 385.214 of this chapter, 
desiring to intervene may file its notice of intervention. Any person 
filing a petition to intervene or notice of intervention shall state 
specifically whether he seeks formal hearing on the application. Any 
person may file to intervene on environmental grounds based on the 
draft environmental impact statement as stated at Sec. 380.10(a)(1)(i) 
of this chapter. In accordance with that section, such intervention 
will be deemed timely as long it is filed within the comment period for 
the draft environmental impact statement. Failure to make timely filing 
will constitute grounds for denial of participation in the absence of 
extraordinary circumstances for good cause shown. A copy of each 
application, supplement and

[[Page 55701]]

amendment thereto, including exhibits required by Sec. 157.14, 157.16, 
and 157.18, shall upon request be promptly supplied by the applicant to 
anyone who has filed a petition for leave to intervene or given notice 
of intervention. However, an applicant is not required to serve 
voluminous or difficult to reproduce material, such as copies of 
environmental information, to all parties, unless such material is 
specifically requested. Within two business days of receiving a request 
for a complete copy from any party, the applicant must serve a full 
copy of any filing. Pipelines will be required to keep all voluminous 
material on file with the Commission and make such information 
available for inspection in the project area. Protests may be filed in 
accordance with Sec. 385.211 of this chapter within the time permitted 
by any person who does not seek to participate in the proceeding.
    15. In Sec. 157.14, paragraph (a) is amended to remove the words 
``On or after October 31, 1989, exhibits'' and the word ``Exhibits'' 
added in its place; paragraph (a)(6-a) is revised; paragraph (a)(6-b) 
is removed; paragraph (a)(6-d) is redesignated as (a)(6-b); both 
references in newly redesignated (a)(6-b) to ``IV'' is removed and a 
reference to ``II'' is added in its place; paragraph (a)(6-c) is 
removed; paragraph (a)(12) is removed and reserved; paragraphs 
(a)(14)(i) through (vi) are revised; and paragraphs (a)(14)(vii) 
through (xiii) are removed, all to read as follows:


Sec. 157.14  Exhibits.

    (a) * * *
    (6) * * *
    (6-a) Exhibit F-I, Environmental Report. An environmental report as 
specified in Secs. 380.3 and 380.12 of this chapter. Applicant must 
submit all appropriate revisions to Exhibit F-I whenever route or site 
changes are filed. These revisions should identify the locations by 
mile post and describe all other specific differences resulting from 
the route or site changes, and should not simply provide revised totals 
for the resources affected.
* * * * *
    (12) [Reserved]
* * * * *
    (14) * * *
    (i) A description of the class (e.g. commercial paper, long-term 
debt, preferred stock) and cost rates for securities expected to be 
issued with construction period and post-operational sources of 
financing separately identified.
    (ii) Statement of anticipated cash flow, including provision during 
the period of construction and the first 3 full years of operation of 
proposed facilities for interest requirements, dividends, and capital 
requirements.
    (iii) A balance sheet and income statement (12 months) of most 
recent data available.
    (iv) Comparative pro forma balance sheets and income statements for 
the period of construction and each of the first 3 full years of 
operation, giving effect to the proposed construction and proposed 
financing of the project.
    (v) Any additional data and information upon which applicant 
proposes to rely in showing the adequacy and availability of resources 
for financing its proposed project.
    (vi) In instances for which principal operations of the company 
have not commenced or where proposed rates for services are developed 
on an incremental basis, a brief statement explaining how the applicant 
will determine the actual allowance for funds used during construction 
(AFUDC) rate, or if a rate is not to be used, how the applicant will 
determine the actual amount of AFUDC to be capitalized as a component 
of construction cost, and why the method is appropriate under the 
circumstances.
* * * * *
    16. In Sec. 157.16, paragraph (c)(1) is revised to read as follows:


Sec. 157.16  Exhibits relating to acquisitions.

* * * * *
    (c) * * *
    (1) The amounts recorded upon the books of the vendor, as being 
applicable to the facilities to be acquired, and the related 
depreciation, depletion, and amortization reserves. Include a brief 
statement explaining the basis or methods used to derive the related 
depreciation, depletion and amortization reserves.
* * * * *


Sec. 157.17  [Amended]

    17. In Sec. 157.17, the words ``Before October 31, 1989, and 
thereafter whenever'' are removed from paragraph (a) and the word 
``Whenever'' added in their place; and the words ``On or after October 
31, 1989, the'' are removed from paragraph (b) and the word ``The'' 
added in their place.
    18. In Sec. 157.18, a new sentence is added between the first and 
second sentence in the introductory paragraph and in paragraph (f)(2); 
paragraph (f)(3) is revised to read as follows:


Sec. 157.18  Applications to abandon facilities or service; exhibits.

    * * * Any application for an abandonment that is not excluded by 
Sec. 380.4(a)(28) or (29), must include an environmental report as 
specified by Sec. 380.3(c)(2). * * *
* * * * *
    (f) * * *
    (2) * * * Include a brief statement explaining the basis or methods 
used to derive the accumulated depreciation related to the property to 
be disposed of. * * *
    (3) State the amount of accumulated deferred income taxes 
attributable to the property to be abandoned and the tax basis of the 
property. * * *
* * * * *
    19. In Sec. 157.20, paragraph (b) is revised; the phrases ``, until 
October 31, 1989,'' and ``, and thereafter,'' are removed from 
paragraph (c), the phrases ``, before October 31, 1989,'' and and 
thereafter'' are removed from paragraph (d); paragraph (f) is removed 
and paragraph (g) is redesignated as (f) to read as follows:


Sec. 157.20  General conditions applicable to certificates.

* * * * *
    (b) Any authorized construction, extension, or acquisition shall be 
completed and made available for service by applicant and any 
authorized operation, service, or sale shall be actually undertaken and 
regularly performed by applicant within (period of time to be specified 
by the Commission in each order) from the issue date of the 
Commission's order issuing the certificate. Applicant shall notify the 
Commission in writing at least 30 days prior to (expiration date of 
time period specified in the Commission's order issuing the 
certificate) that the end-user/shipper is unable to meet the imposed 
timetable to commence service.
* * * * *


Sec. 157.21  [Removed]

    20. Section 157.21 is removed and reserved.
    21. In Sec. 157.102, the last sentence in paragraph (a)(1) is 
removed; paragraph (b)(1)(v) is revised to read as follows:


Sec. 157.102  Contents of application and other pleadings.

* * * * *
    (b) * * *
    (1) * * *
    (v) An environmental report as specified in Secs. 380.3 and 380.12 
of this chapter. Applicant must submit all appropriate revisions to the 
environmental report whenever route or site changes are filed. These 
revisions should identify and describe the specific differences 
resulting from the route or site changes, and not just

[[Page 55702]]

provide revised totals for the resources affected; and
* * * * *


Sec. 157.103  [Amended]

    22. In Sec. 157.103(j), the words ``and Producer'' are removed.


Sec. 157.201  [Amended]

    23. In Sec. 157.201(a) the words ``sales arrangements'' are 
removed.
    24. In Sec. 157.202, paragraphs (b)(2)(i) and (b)(2)(ii)(A), (B), 
(D), (E), and (F), and paragraphs (b)(4), (5), (7), (10) are revised; 
and (b)(12) through (14) are removed to read as follows:


Sec. 157.202  Definitions.

* * * * *
    (b) * * *
    (2)(i) Eligible facility means, except as provided in paragraph 
(b)(2)(ii) of this section, any facility subject to the Natural Gas Act 
jurisdiction of the Commission that is necessary to provide service 
within existing certificated volumes. Eligible facility also includes 
any gas supply facility or any facility, including receipt points, 
needed by the certificate holder to receive gas into its system for 
further transport or storage, and interconnecting points between 
transporters that transport natural gas under part 284 of this chapter. 
Further, eligible facility includes mainline and lateral replacements 
that do not qualify under Sec. 2.55(b) of this chapter because they 
will have an impact on the capacity of the mainline facilities.
    (ii) * * *
    (A) A main line of a transmission system, except replacement 
facilities covered under paragraph (b)(2)(i) of this section.
    (B) An extension of a main line, except replacement facilities 
covered under paragraph (b)(2)(i).
* * * * *
    (D) A facility required to test, develop or utilize an underground 
storage field and that alters the certificated capacity of the storage 
field, or a facility required to store gas above ground in either a 
gaseous or liquified state, or a facility used to receive gas from 
plants manufacturing synthetic gas or from plants gasifying liquefied 
natural gas.
    (E) Delivery points under Sec. 157.211.
    (F) Temporary compression under Sec. 157.209.
* * * * *
    (4) Temporary compression means compressor facilities installed and 
operated at existing compressor locations for the limited purpose of 
temporarily replacing existing permanent compressor facilities that are 
undergoing maintenance or repair or that are pending permanent 
replacement.
    (5) Main line means the principal transmission facilities of a 
pipeline system extending from supply areas to market areas and does 
not include small diameter supply or delivery laterals or gathering 
lines.
* * * * *
    (7) Project means a unit of improvement or construction that is 
used and useful upon completion.
* * * * *
    (10) Delivery point(s) means a tap and/or metering and appurtenant 
facilities necessary to enable the certificate holder to deliver gas to 
any customer.
* * * * *


Sec. 157.203  [Amended]

    25. In Sec. 157.203, paragraph (b) is amended to remove the 
references to ``157.213(a)'' and ``157.217'' and to add the reference 
``157.209(a)'' immediately after ``Secs. 157.208(a)''. Paragraph (c) is 
amended to remove the reference to ``157.211, 157.211(b), 157.212, 
157.213(b)'' and to add the reference ``157.211(a)(2)'' in their place.


Sec. 157.204  [Amended]

    26. In Sec. 157.204, paragraph (d)(2) is removed; paragraph (d)(3) 
is redesignated as d(2); and paragraphs (d)(4) and (5) and paragraph 
(e) are removed.
    27. In Sec. 157.205, paragraphs (a) introductory text and (b) 
introductory text are revised; paragraph (c) is removed; paragraphs (d) 
through (i) are redesignated as (c) through (h); newly designated (c) 
is revised; redesignated (f) the words ``and Producer'' is removed; in 
redesignated (d) add the phrase ``issue a notice of the request within 
10 days of the date of the filing and'' after the words ``Commission 
shall'; redesignated (e)(2) is revised; in redesignated (f) add the 
words ``or dismissed'' after the words ``is not withdrawn''; in 
redesignated (g) introductory text is revised, the words ``and staff'' 
are removed, the phrase ``certificate holder, the protestor'' is 
revised to read ``certificate holder and protestor'', and a sentence is 
added at the end of the paragraph; and in redesignated (h)(2) add the 
words ``or dismissed'' after the words ``subsequently withdrawn'' and 
the words ``or dismissal'' after the words ``after the withdrawal'' to 
read as follows:


Sec. 157.205  Notice Procedure.

    (a) Applicability. No activity described in Secs. 157.208(b), 
157.211, 157.214 or 157.216(b) is authorized by a blanket certificate 
granted under this subpart, unless, prior to undertaking such activity:
* * * * *
    (b) Contents. For any activity subject to the requirements of this 
section, the certificate holder must file with the Secretary of the 
Commission an original and seven copies, as prescribed in Sec. 157.6(a) 
and 385.2011 of this chapter, a request for authorization under the 
notice procedures of this section that contains:
* * * * *
    (c) Rejection of request. The Director of the Office of Pipeline 
Regulation may reject within 10 days of the date of filing a request 
which patently fails to comply with the provisions of paragraph (b) of 
this section, without prejudice to the pipeline's refiling a complete 
application.
* * * * *
    (e) * * *
    (2) Protests shall be filed in the following form:
UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY 
COMMISSION
[Name of pipeline holding the blanket certificate]
Docket No. [Include both docket no. of the blanket certificate and the 
prior notice transaction]
PROTEST TO PROPOSED BLANKET CERTIFICATE ACTIVITY
    (Name of Protestor) hereby protests the request filed by (Name of 
pipeline) to conduct a (construction of facilities, abandonment, etc.) 
under Sec. 157.____ of the Commission's regulations. Protestor seeks to 
have this request processed as a separate application.
    (Include a detailed statement of Protestor's interest in the 
activity and the specific reasons and rationale for the objection and 
whether the protestor seeks to be an intervenor.)
* * * * *
    (g) Withdrawal or dismissal of protests. * * * The Director of the 
Office of Pipeline Regulation may dismiss any protest which does not 
raise a substantive issue and fails to provide any specific detailed 
reason or rationale for the objection.
* * * * *
    28. In Sec. 157.206, paragraphs (b), (c), (e), and (h) are removed; 
paragraph (d) is redesignated as paragraph (b); paragraph (f) is 
redesignated as (c); paragraph (g) is redesignated as (d); in 
redesignated (b)(1) the reference to ``Sec. 2.69'' is removed and the 
reference to ``Sec. 380.15'' is added in its place; in redesignated 
(b)(3)(i) through (iii) the

[[Page 55703]]

references to paragraph ``(d)'' are removed and a reference to ``(b)'' 
is added in its place; redesignated (b)(5) is revised; and redesignated 
paragraph (c) is revised to read as follows:


Sec. 157.206  Standard conditions.

* * * * *
    (b) * * *
    (5) The noise attributable to any compressor facility installed, 
modified, upgraded, or uprated pursuant to the blanket certificate 
shall not exceed a day-night sound level (Ldn) of 55 db (A) 
at any noise-sensitive area unless the noise-sensitive areas (such as 
schools, hospitals, or residences) are established after facility 
construction, modification, upgrade, or uprate.
* * * * *
    (c) Commencement. Any authorized construction, extension, or 
acquisition shall be completed and made available for service by the 
certificate holder and any authorized operation, or service, shall be 
available within one year of the date the activity is authorized 
pursuant to Sec. 157.205(h). The certificate holder may apply to the 
Director of the Office of Pipeline Regulation for an extension of this 
deadline. However, if the request for extension is not due to 
construction delays, the certificate holder must provide notification 
that the end-user/shipper is unable to meet the one year timetable.
* * * * *
    29. In Sec. 157.207, paragraphs (b) and (c) are revised; paragraph 
(f) is removed; paragraphs (g) and (h) are redesignated as paragraphs 
(f) and (g) to read as follows:


Sec. 157.207  General reporting requirements.

* * * * *
    (b) For each delivery point authorized under Sec. 157.211(a)(1), 
the information required by Sec. 157.211(c);
    (c) For each temporary compressor facility under Sec. 157.209, the 
information required by Sec. 157.209(b);
* * * * *
    30. In Sec. 157.208, the heading is revised; in paragraphs (a)(2) 
and (b)(2) add the word ``replace'' after the word ``construct,'; 
remove paragraphs (c)(6) and (c)(8); paragraph (c)(7) is redesignated 
as (c)(6), paragraphs (c)(9) through (11) are redesignated as (c)(7) 
through (9); in redesignated (c)(9) the first sentence is revised and a 
new sentence is added at the end; in paragraph (d) the reference to 
``GNP'' is removed and a reference to ``GDP'' is added in its place, 
the words ``and Producer'' are removed, and the reference to 
``375.307(t)'' is corrected to ``375.307(d)''; in paragraph (e) the 
introductory text and paragraph (e)(2) are revised, paragraphs (e)(4) 
through (e)(7) are removed; paragraph (e)(8) is redesignated as (e)(4), 
paragraph (e)(9) is redesignated as (e)(5); and in paragraph (g) the 
words ``and Producer'' are removed to read as follows:


Sec. 157.208  Construction, acquisition, operation, replacement, and 
miscellaneous rearrangement of facilities.

* * * * *
    (c) * * *
    (9) A concise analysis discussing the relevant issues outlined in 
Sec. 380.12 of this chapter. * * * Include a copy of the ``clearances'' 
received for compliance with the Endangered Species Act, National 
Historic Preservation Act, and Coastal Zone Management Act.
* * * * *
    (e) Reporting requirements. For each facility completed during the 
calendar year pursuant to paragraph (a) of this section, the 
certificate holder shall file, in the manner prescribed in 
Secs. 157.6(a) and 385.2011 of this chapter, as part of the required 
annual report under Sec. 157.207(a) the information described in 
paragraph (e)(1) through (5) of this section. For each facility 
completed during the calendar year pursuant to paragraph (b) of this 
section, the certificate holder shall file in the manner prescribed in 
this paragraph only the information described in paragraph (e)(3).
    (1) * * *
    (2) The specific purpose, location, and beginning and completion 
date of construction of the facilities installed, and, if applicable, a 
statement indicating the extent to which the facilities were jointly 
constructed;
* * * * *
    31. Section 157.209 is added to read as follows:


Sec. 157.209  Temporary compression facilities

    (a) Automatic authorization. If the cost does not exceed the cost 
limitations set forth in column 1 in the Limit section of Table I, 
under Sec. 157.208(d) of this chapter, the certificate holder may 
install, operate and remove temporary facilities provided that the 
temporary compressor facilities shall not be used to increase the 
volume or service above that rendered by the involved existing 
permanent compressor unit(s).
    (b) Reporting requirements. As part of the certificate holder's 
annual report of projects authorized under paragraph (a) of this 
section, the certificate holder must report the following in the manner 
prescribed in Secs. 157.6(a) and 385.2011 of this chapter:
    (1) A description of the temporary compression facility, including 
the size, type and number of compressor units;
    (2) The location at which temporary compression was installed, 
operated and removed, including its location relative to existing 
facilities;
    (3) A description of the permanent compression facility which was 
unavailable, and a statement explaining the reason for the temporary 
compression;
    (4) The dates for which the temporary compression was installed, 
operated and removed; and
    (5) If applicable, the information required in Sec. 157.208(e)(4).


Sec. 157.210  [Removed]

    32. Sec. 157.210 is removed and reserved.
    33. In Sec. 157.211, the heading, paragraphs (a), (b)(1) through 
(5), and (c)(1) through (3) are revised and a new paragraph (c)(4) is 
added to read as follows:


Sec. 157.211  Delivery points

    (a) Construction and operation--(1) Automatic authorization. The 
certificate holder may acquire, construct, replace, modify, or operate 
any delivery point, excluding the construction of certain delivery 
points subject to the prior notice provisions in paragraph (a)(2) of 
this section if:
    (i) The natural gas is being delivered to, or for the account of, a 
shipper for whom the certificate holder is, or will be, authorized to 
transport gas; and
    (ii) The certificate holder's tariff does not prohibit the addition 
of new delivery points.
    (2) Prior notice. Subject to the notice procedure in Sec. 157.205, 
the certificate holder may construct a delivery point if:
    (i) The natural gas is being delivered to, or for the account of, 
an end-user that is currently being served by a local distribution 
company; and
    (ii) The natural gas is being delivered to a shipper for whom the 
certificate holder is, or will be, authorized to transport gas; and
    (iii) The certificate holder's tariff does not prohibit the 
addition of new delivery points.
    (b) * * *
    (1) The name of the end-user, the location of the delivery point, 
and the distribution company currently serving the end-user;
    (2) A description of the facility and any appurtenant facilities;
    (3) A USGS 7\1/2\-minute series (scale 1:24,000 or 1:25,000) 
topographic map (or map of equivalent or greater detail, as 
appropriate) showing the location of the proposed facilities;

[[Page 55704]]

    (4) The quantity of gas to be delivered through the proposed 
facility;
    (5) A description, with supporting data, of the impact of the 
service rendered through the proposed delivery tap upon the certificate 
holder's peak day and annual deliveries.
    (c) * * *
    (1) A description of the facilities acquired, constructed, 
replaced, modified or operated pursuant to this section;
    (2) The location and maximum quantities delivered at such delivery 
point;
    (3) The actual cost of the delivery point and the date such 
delivery point is ready and available for service; and
    (4) The date of each clearance obtained pursuant to 
Sec. 157.206(b)(3) and the date construction began.
* * * * *


Sec. 157.212  [Removed]

    34. Section 157.212 is removed and reserved.


Sec. 157.213  [Removed]

    35. Section 157.213 is removed and reserved.
    36. In Sec. 157.215, paragraph (b)(1)(iii) is revised to read as 
follows:


Sec. 157.215  Underground storage testing and development.

* * * * *
    (b) * * *
    (1) * * *
    (iii) The cost of such facilities, the date construction began, and 
the date they were placed in service;
* * * * *
    37. In Sec. 157.216, paragraphs (a)(1) and (2), (b), (c)(1) and 
(3), and (d)(1), (2), and (4) are revised; and new paragraphs (c)(5), 
and (d)(5) are added to read as follows:


Sec. 157.216  Abandonment.

    (a) * * *
    (1) A receipt or delivery point, or related supply or delivery 
lateral, provided the point has not been used to provide (i) 
Interruptible transportation service during the one year period prior 
to the effective date of the proposed abandonment, or
    (ii) Firm transportation service during the one year period prior 
to the effective date of the proposed abandonment, provided the point 
is no longer covered under a firm contract; or
    (2) An eligible facility that was installed pursuant to automatic 
authority under Sec. 157.208(a), or that now qualifies for automatic 
authority under Sec. 157.208(a), provided the certificate holder 
obtains the written consent of the customers served through such 
facility. Consent is required from customers that have received service 
during the immediate past 12 months.
    (b) Prior notice. Subject to the notice requirements of 
Sec. 157.205, the certificate holder is authorized pursuant to section 
7(b) of the Natural Gas Act to abandon:
    (1) Any receipt or delivery point if all of the existing customers 
of the pipeline served through the receipt or delivery point consent in 
writing to the abandonment. When filing a request for authorization of 
the proposed abandonment under the notice procedures of Sec. 157.205, 
the certificate holder shall notify, in writing, the State public 
service commission having regulatory authority over retail service to 
the customers served through the delivery point.
    (2) Any other facility which qualifies as an eligible facility, and 
which is not otherwise eligible for automatic authorization under 
paragraph (a)(2) of this section, provided the certificate holder 
obtains the written consent of all of the customers served through such 
facility. Consent is required from customers that have received service 
during the immediate past 12 months.
    (c) * * *
    (1) The location, type, size, and length of the subject facilities;
* * * * *
    (3) For each facility an oath statement that all of the customers 
served during the past year by the subject facilities have consented to 
the abandonment, or an explanation of why the customers' consent is not 
available;
* * * * *
    (5) For any abandonment resulting in earth disturbance, a USGS 7\1/
2\-minute-series (scale 1:24,000 or 1:25,000) topographic map (or map 
of equivalent or greater detail, as appropriate) showing the location 
of the proposed facilities.
    (d) * * *
    (1) A description of the facilities abandoned pursuant to this 
section;
    (2) The docket number(s) of the certificate(s) authorizing the 
construction and operation of the facilities to be abandoned;
* * * * *
    (4) The date earth disturbance, if any, related to the abandonment 
began and the date the facilities were abandoned; and
    (5) The date of the clearances obtained pursuant to 
Sec. 157.206(b)(3), if earth disturbance was involved.


Sec. 157.217  [Removed]

    38. Sec. 157.217 is removed and reserved.
    39. In Sec. 157.218, paragraph (a) is revised to read as follows:


Sec. 157.218  Changes in customer name.

    (a) Automatic authorization. The effective certificates of the 
certificate holder may be amended to the extent necessary to reflect 
the change in the name of an existing customer, if the certificate 
holder has filed any necessary conforming changes in its tariffs, 
including the customer's old name.
* * * * *

Appendix I to Subpart F of Part 157

    40. In appendix I to subpart F of part 157, in the reference to 
``Sec. 157.206(d)(3)(i)'' in the heading and the references to 
``Sec. 157.206(d)'' and ``Sec. 157.206(d)(7)'' in the introduction the 
``(d)'' is removed and a ``(b)'' is added in their place; the 
references to ``Sec. 157.206(d)(2)(vii)'' in the second introductory 
paragraph, paragraphs 2, 3, and 4(b) are revised to read 
``Sec. 157.206(b)(2)(vi)''; and the words'', or that no further 
consultation is necessary'' is added to the end of paragraph 4(b).

Appendix II to Subpart F of Part 157

    41. In appendix II to subpart F of part 157, in the references to 
``Sec. 157.206(d)(3)(ii)'' in the heading and 
``Sec. 157.206(d)(3)(ii)'' in the introduction the ``(d)'' is removed 
and a ``(b)'' is added in its place; in the references to 
``Sec. 157.206(d)(2)(iv)'' in paragraphs (4), (6), (7) and (8) the 
``(d)'' and ``(iv)'' are removed and a ``(b)'' and ``(iii)'' are added 
in their place; in paragraph (1)(b) the reference to ``Environmental 
Evaluation Branch, Office of Pipeline and Producer Regulation'' is 
removed and a reference to ``Environmental staff of the Office of 
Pipeline Regulation'' is added in its place.

PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE 
NATURAL GAS ACT, THE NATURAL GAS POLICY ACT OF 1978 AND RELATED 
AUTHORITIES

    42. The authority citation for Part 284 continues to read as 
follows:

    Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352; 
43 U.S.C. 1331-1356.

    43. In Sec. 284.221, paragraph (d)(1) is amended to remove the 
``s'' from the word ``paragraphs'' and to remove the phrase ``and 
(d)(3)''; paragraph (d)(3) is removed; the word ``replacement,'' is 
added to paragraph (f)(3) after the word ``operation''; paragraph 
(f)(4) is revised; and the phrase ``and Sec. 157.212'' is removed from 
paragraph (h)(3) to read as follows:

[[Page 55705]]

Sec. 284.221  General rule; transportation by interstate pipelines on 
behalf of others.

* * * * *
    (f) * * *
    (4) Authorization for delivery points is subject to the automatic 
authorization under Sec. 157.211(a)(1) and the prior notice procedures 
under Sec. 157.211(a)(2) and Sec. 157.205.
* * * * *


Sec. 284.288  [Removed]

    44. Sec. 284.288 is removed and reserved.

PART 375--THE COMMISSION

    45. The authority citation for Part 375 continues to read as 
follows:

    Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717w, 3301-3432; 16 
U.S.C. 791-825r, 2601-2645; 42 U.S.C. 7101-7352.

    46. In Sec. 375.307, paragraph (a)(1) is amended to remove 
``$5,000,000'' and to add the words ``the limits specified in Column 2 
of Table I in Sec. 157.208(d)'' in its place; paragraph (a)(2) is 
removed; paragraphs (a)(3) through (5) are redesignated as paragraphs 
(a)(2) through (4) and are revised; paragraphs (a)(6) and (a)(7) are 
redesignated as (a)(5) and (6); paragraphs (a)(8) and (a)(9) are 
removed; paragraph (a)(10) through (12) are redesignated as (a)(7) 
through (9); new paragraph (a)(10) is added; paragraphs (a)(14) through 
(16) are redesignated as (a)(11) through (13), and paragraphs (a)(17) 
and (a)(18) are removed; paragraphs (b)(4) and (5) and (c) are removed; 
paragraph (d) is redesignated as (c); paragraphs (e)(3) and (7) are 
removed; paragraphs (e)(4) through (6) are redesignated as (e)(3) 
through (5); paragraphs (e) through (g) are redesignated as (d) through 
(f); and redesignated paragraph (e)(3) is revised all to read as 
follows:


Sec. 375.307  Delegations to the Director of the Office of Pipeline 
Regulation.

* * * * *
    (a) * * *
    (2) Applications by a pipeline for the abandonment of pipeline 
facilities or for the deletion of delivery points;
    (3) Applications to abandon pipeline facilities or services 
involving a specific customer or customers, if such customer or 
customers have agreed to the abandonment;
    (4) Applications for temporary or permanent certificates (and for 
amendments thereto) for the transportation, exchange, or storage of 
natural gas, provided that the cost of construction of the certificate 
applicant's related facility is less than the limits specified in 
Column 2 of Table I in Sec. 157.208(d).
* * * * *
    (10) Dismiss any protest that does not raise a substantive issue 
and fails to provide any specific detailed reason or rationale for the 
objection;
* * * * *
    (e) * * *
    (3) Fees prescribed in Secs. 381.207 and 381.403 of this chapter in 
accordance with Secs. 381.106(b) of this chapter;
* * * * *

PART 380--REGULATIONS IMPLEMENTING THE NATIONAL ENVIRONMENTAL 
POLICY ACT.

    47. The authority citation for Part 380 continues to read as 
follows:

    Authority: National Environmental Policy Act of 1969, 42 U.S.C. 
4321-4370a; Department of Energy Organization Act, 42 U.S.C. 7107-
7352; E.O. 12009, 3 CFR 1978 Comp., p. 142.


Sec. 380.3  [Amended]

    48. Section 380.3(c)(2) is amended to add the words ``Sec. 380.12 
and'' after the words ``information identified in''.


Sec. 380.4  [Amended]

    49. At Sec. 380.4(a)(28) remove the word ``tops'' and add the word 
``taps'' in its place.
    50. Section 380.12 is added to read as follows:


Sec. 380.12  Environmental reports for Natural Gas Act applications.

    (a)(1) The applicant must submit an environmental report with any 
application that proposes the construction, operation, or abandonment 
of any facility identified in Sec. 380.3(c)(2)(i). The environmental 
report shall consist of the thirteen resource reports and related 
material described in this paragraph.
    (2) The detail of each resource report must be commensurate with 
the complexity of the proposal and its potential for environmental 
impact. Each topic in each resource report shall be addressed or its 
omission justified, unless resource report description indicates that 
the data is not required for that type of proposal. If material 
required for one resource report is provided in another resource report 
or in another exhibit, it may be incorporated by reference. If any 
resource report topic is required for a particular project but is not 
provided at the time the application is filed, the environmental report 
shall explain why it is missing and when the applicant anticipates it 
will be filed.
    (3) The appendix to this Part contains a checklist of the minimum 
filing requirements for an environmental report. Failure to provide at 
least the applicable checklist items will result in rejection of the 
application.
    (b) As appropriate, each resource report shall:
    (1) Address conditions or resources that might be directly or 
indirectly affected by the project.
    (2) Identify significant environmental effects expected to occur as 
a result of the project;
    (3) Identify the effects of construction, operation (including 
maintenance and malfunctions), and termination of the project, as well 
as cumulative effects resulting from existing or reasonably foreseeable 
projects;
    (4) Identify measures proposed to enhance the environment or to 
avoid, mitigate, or compensate for adverse effects of the project;
    (5) Provide a list of publications, reports, and other literature 
or communications, including agency contacts, that were cited or relied 
upon to prepare each report. This list should include the name and 
title of the person contacted, their affiliations, and telephone 
number.
    (c) Resource Report 1--General project description. This report is 
required for all applications. It will describe facilities associated 
with the project, special construction and operation procedures, 
construction timetables, future plans for related construction, 
compliance with regulations and codes, and permits that must be 
obtained. Resource Report 1 must:
    (1) Describe and provide location maps of all jurisdictional 
facilities, including all aboveground facilities associated with the 
project (such as: meter stations, pig launchers/receivers, valves), to 
be constructed, modified, abandoned, replaced, or removed, including 
related construction and operational support activities and areas such 
as maintenance bases, staging areas, communications towers, power 
lines, and new access roads (roads to be built or modified). As 
relevant, the report must describe the length and diameter of the 
pipeline, the types of aboveground facilities that would be installed, 
and associated land requirements. It must also identify other companies 
that must construct jurisdictional facilities related to the project, 
where the facilities would be located, and where they are in the 
Commission's approval process.
    (2) Identify and describe all nonjurisdictional facilities that 
will be built in association with the project, including facilities to 
be built by other companies.

[[Page 55706]]

    (i) Provide the following information:
    (A) A brief description of each facility, including as appropriate: 
ownership, land requirements, gas consumption, megawatt size, 
construction status, and an update of the latest status of Federal, 
state, and local permits/approvals;
    (B) The length and diameter of any interconnecting pipeline;
    (C) Current 1:24,000/1:25,000 scale topographic maps showing the 
location of the facilities;
    (D) Correspondence with the appropriate State Historic Preservation 
Officer (SHPO) regarding whether properties eligible for listing on the 
National Register of Historic Places (NRHP) would be affected;
    (E) Correspondence with the Fish and Wildlife Service (and National 
Marine Fisheries Service, if appropriate) regarding potential impacts 
of the proposed facility on federally listed threatened and endangered 
species; and
    (F) For facilities within a designated coastal zone management 
area, a consistency determination or evidence that the owner has 
requested a consistency determination from the state's coastal zone 
management program.
    (ii) Address each of the following factors and indicate which ones, 
if any, indicate the need to do an environmental review of project-
related nonjurisdictional facilities.
    (A) Whether or not the regulated activity comprises ``merely a 
link'' in a corridor type project (e.g., a transportation or utility 
transmission project).
    (B) Whether there are aspects of the nonjurisdictional facility in 
the immediate vicinity of the regulated activity which affect the 
location and configuration of the regulated activity.
    (C) The extent to which the entire project will be within the 
Commission's jurisdiction.
    (D) The extent of cumulative Federal control and responsibility.
    (3) Provide the following maps and photos:
    (i) Current, original United States Geological Survey (USGS) 7.5-
minute series topographic maps or maps of equivalent detail, covering 
at least a 0.5-mile-wide corridor centered on the pipeline, with 
integer mileposts identified, showing the location of rights-of-way, 
new access roads, other linear construction areas, compressor stations, 
and pipe storage areas. Show nonlinear construction areas on maps at a 
scale of 1:3,600 or larger keyed graphically and by milepost to the 
right-of-way maps.
    (ii) Original aerial photographs or photo-based alignment sheets, 
not more than 1 year old and with a scale of 1:6,000 or larger, showing 
the proposed pipeline route and location of major aboveground 
facilities, covering at least a 0.5 mile-wide corridor, and including 
mileposts. Alternative formats (e.g., blue-line prints of acceptable 
resolution) need prior approval by the environmental staff of the 
Office of Pipeline Regulation.
    (iii) In addition to the copy required under Sec. 157.6(a)(2) of 
this chapter, applicant should send two additional copies of 
topographic maps and aerial photos directly to the environmental staff 
of the Office of Pipeline Regulation.
    (4) When new or additional compression is proposed, include large 
scale (1:3,600 or greater) plot plans of each compressor station. The 
plot plan should reference a readily identifiable point(s) on the USGS 
maps required in paragraph (c)(2) of this section. The maps and plot 
plans must identify the location of noise-sensitive areas (schools, 
hospitals, or residences) near the compressor station, existing and 
proposed compressor and auxiliary buildings, access roads, and the 
limits of areas that would be permanently disturbed.
    (5) Identify aboveground facilities to be abandoned, how they would 
be abandoned, and how the site would be restored.
    (6) Describe and identify by milepost, proposed construction and 
restoration methods to be used in areas of rugged topography, 
residential areas, active croplands, sites where the pipeline would be 
located longitudinally under roads, and sites where explosives are 
likely to be used.
    (7) Unless provided in response to Resource Report 5, describe 
estimated workforce requirements, including the number of pipeline 
construction spreads, average workforce requirements for each 
construction spread and meter or compressor station, estimated duration 
of construction from initial clearing to final restoration, and number 
of personnel to be hired to operate the proposed project.
    (8) Describe reasonably foreseeable plans for future expansion of 
facilities, including additional land requirements and the 
compatibility of those plans with the current proposal.
    (9) Describe all authorizations required to complete the proposed 
action and the status of applications for such authorizations. Identify 
environmental mitigation requirements specified in any permit or 
proposed in any permit application to the extent not specified 
elsewhere in this section.
    (10) Provide the names and addresses of all landowners whose land 
would be crossed by the project facilities. Include the names and 
addresses of all residents adjacent to new or modified compressor 
stations.
    (d) Resource Report 2--Water use and quality. This report is 
required for all applications, except those which involve only 
facilities within the areas of an existing compressor, meter, or 
regulator station that were disturbed by construction of the existing 
facilities, no wetlands or waterbodies are on the site and there would 
not be a significant increase in water use. The report must describe 
water quality and provide data sufficient to determine the expected 
impact of the project and the effectiveness of mitigative, enhancement, 
or protective measures. Resource Report 2 must:
    (1) Identify and describe by milepost perennial waterbodies and 
municipal water supply or watershed areas, especially designated 
surface water protection areas and sensitive waterbodies, and wetlands 
that would be crossed. For each waterbody crossing, identify the 
approximate width, state water quality classifications, any known 
potential pollutants present in the water or sediments, and any potable 
water intake sources within 3 miles downstream.
    (2) Compare proposed mitigation measures with the staff's current 
``Wetland and Waterbody Construction and Mitigation Procedures,'' which 
are available from the Commission's Internet Homepage at http://
www.ferc.fed.us/gas/environment/gidlines.htm or from the Commission's 
staff, describe what proposed alternative mitigation would provide 
equivalent or greater protection to the environment, and provide a 
description of site-specific construction techniques that would be used 
at each major waterbody crossing.
    (3) Describe typical staging area requirements at waterbody and 
wetland crossings. Also, identify and describe waterbodies and wetlands 
where staging areas are likely to be more extensive.
    (4) Describe, by milepost, wetland crossings as determined by field 
delineation using the current Federal methodology, or as listed on 
National Wetland Inventory (NWI) maps. Identify, for each crossing, the 
wetland classification specified by the U.S. Fish and Wildlife Service 
and the length of the crossing. If NWI maps are provided, include two 
copies clearly showing the proposed route and mileposts. If NWI maps 
are not provided, provide two copies of USGS maps depicting wetlands 
delineated by the applicant.

[[Page 55707]]

    (5) Identify aquifers within excavation depth in the project area, 
including the depth of the aquifer, current and projected use, water 
quality and average yield, and known or suspected contamination 
problems.
    (6) Describe specific locations, the quantity required, and the 
method and rate of withdrawal and discharge of hydrostatic test water. 
Describe suspended or dissolved material likely to be present in the 
water as a result of contact with the pipeline, particularly if an 
existing pipeline is being retested. Describe chemical or physical 
treatment of the pipeline or hydrostatic test water. Discuss waste 
products generated and disposal methods.
    (7) If underground storage of natural gas is proposed:
    (i) Identify how water produced from the storage field will be 
disposed of, and
    (ii) For salt caverns, identify the source locations, the quantity 
required, and the method and rate of withdrawal of water for creating 
salt cavern(s), as well as the means of disposal of brine resulting 
from cavern leaching.
    (8) Discuss proposed mitigation measures to reduce the potential 
for adverse impacts to surface water or groundwater quality to the 
extent they are not described in response to paragraph (d)(2) of this 
section. Discuss the potential for blasting to affect water wells, 
springs, and wetlands, and measures to be taken to detect and remedy 
such effects.
    (9) Identify the location of known public and private groundwater 
supply wells or springs within 150 feet of proposed construction areas. 
Identify locations of EPA or state-designated sole-source aquifers and 
well-head protection areas crossed by the proposed pipeline facilities.
    (e) Resource Report 3--Fish, wildlife, and vegetation. This report 
is required for all applications, except those involving only 
facilities within the improved area of an existing compressor, meter, 
or regulator station. It must describe aquatic life, wildlife, and 
vegetation in the vicinity of the proposed project; expected impacts on 
these resources including potential effects on biodiversity; and 
proposed mitigation, enhancement or protection measures. Resource 
Report 3 must:
    (1) Describe commercial and recreational warmwater, coldwater, and 
saltwater fisheries in the affected area and associated significant 
habitats such as spawning or rearing areas and estuaries.
    (2) Describe terrestrial habitats, including wetlands, typical 
wildlife habitats, and significant wildlife habitats that might be 
affected by the proposed action. Describe typical species that have 
commercial, recreational, or aesthetic value.
    (3) Describe and provide the affected acreage of vegetation cover 
types that would be affected, including unique ecosystems or 
communities such as remnant prairie or old-growth forest, or 
significant individual plants, such as old-growth specimen trees.
    (4) Describe the impact of construction and operation on aquatic 
and terrestrial species and their habitats, including the possibility 
of a major alteration to ecosystems or biodiversity, and any potential 
impact on state-listed endangered or threatened species. Describe the 
impact of maintenance, clearing and treatment of the project area on 
fish, wildlife, and vegetation, including specific areas of significant 
habitats or communities.
    (5) Identify all federally listed or proposed endangered or 
threatened species and state-listed endangered or threatened species 
that potentially occur in the vicinity of the project. Discuss the 
results of the consultation requirements listed in Sec. 380.13(b) and 
include any written correspondence that resulted from the consultation.
    (6) Describe site-specific mitigation measures to minimize impacts 
on fisheries, wildlife, and vegetation.
    (7) Include copies of correspondence not provided pursuant to 
paragraph (e)(5) of this section, containing recommendations from 
appropriate Federal and state fish and wildlife agencies to avoid or 
limit impact on wildlife, fisheries, and vegetation, and the 
applicant's response to the recommendations.
    (f) Resource Report 4--Cultural resources. This report is required 
for all applications. In order to prepare this report, the applicant 
must follow the principles in Sec. 380.14. Guidance on the content and 
the format for the documentation listed in this paragraph, as well as 
professional qualifications of preparers, is detailed in ``OPR's 
Guidelines for Reporting on Cultural Resources Investigations,'' which 
is available from the Commission's Internet Homepage at http://
www.ferc.fed.us/gas/environment/gidlines.htm or from the Commission's 
staff.
    (1) Resource Report 4 must ultimately contain:
    (i) Plan for Unanticipated Historic Properties and Human Remains--
The Commission may consider a previously approved unanticipated 
discovery plan for the state in which the project would be located. The 
applicant should reference the docket number of the proceeding in which 
the plan was approved in its filing;
    (ii) Documentation of applicant's initial cultural resources 
consultation, including consultations with Native Americans (if 
appropriate);
    (iii) Overview and Survey Reports, as appropriate;
    (iv) Evaluation Report, as appropriate;
    (v) Treatment Plan, as appropriate; and
    (vi) Written comments from State Historic Preservation Officer(s) 
(SHPO) and applicable land-managing agencies on the reports in 
paragraphs (f)(1)(ii through v) of this section.
    (2) The Plan for Unanticipated Historic Properties and Human 
Remains, the Documentation of initial cultural resource consultation, 
the Overview and Survey Reports, if required, and written comments from 
SHPOs and land-management agencies must be filed with the initial 
application.
    (i) If the SHPOs' and land-management agencies' comments are not 
available at the time the application is filed, they may be filed 
separately.
    (ii) If landowners deny access to private property and certain 
areas are not surveyed, the unsurveyed area must be identified by 
mileposts, and supplemental surveys or evaluations may be conducted 
after access is granted. In such circumstances, reports, and treatment 
plans, if necessary, for those inaccessible lands may be filed after a 
certificate is issued.
    (3) The Evaluation Report and Treatment Plan, if required, for the 
entire project must be filed before a final certificate is issued.
    (i) The Evaluation Report may be combined in a single synthetic 
report with the Overview and Survey Reports if the SHPOs and land-
managing agencies allow and if it is available at the time the 
application is filed.
    (ii) In preparing the Treatment Plan, the applicant must consult 
with the staff, the SHPO, and any applicable land-managing agency.
    (iii) Authorization to implement the Treatment Plan occurs only 
after the final certificate is issued.
    (4) Applicant must request privileged treatment for all material 
filed with the Commission containing location, character, and ownership 
information about cultural resources in accordance with Sec. 388.112 of 
this chapter. The cover and relevant pages or portions of the report 
should be clearly labeled in bold lettering: CONTAINS PRIVILEGED 
INFORMATION--DO NOT RELEASE.
    (5) Except as specified in a final Commission order, or by the 
Director of the Office of Pipeline Regulation,

[[Page 55708]]

construction may not begin until all cultural resource reports and 
plans have been approved.
    (g) Resource Report 5--Socioeconomics. This report is required only 
for applications involving significant aboveground facilities, 
including, among others, conditioning or liquefied natural gas (LNG) 
plants. It must identify and quantify the impacts of constructing and 
operating the proposed project on factors affecting towns and counties 
in the vicinity of the project. Resource Report 5 must:
    (1) Describe the socioeconomic impact area.
    (2) Evaluate the impact of any substantial immigration of people on 
governmental facilities and services and plans to reduce the impact on 
the local infrastructure.
    (3) Describe on-site manpower requirements and payroll during 
construction and operation, including the number of construction 
personnel who currently reside within the impact area, would commute 
daily to the site from outside the impact area, or would relocate 
temporarily within the impact area.
    (4) Determine whether existing housing within the impact area is 
sufficient to meet the needs of the additional population.
    (5) Describe the number and types of residences and businesses that 
would be displaced by the project, procedures to be used to acquire 
these properties, and types and amounts of relocation assistance 
payments.
    (6) Conduct a fiscal impact analysis evaluating incremental local 
government expenditures in relation to incremental local government 
revenues that would result from construction of the project. 
Incremental expenditures include, but are not limited to, school 
operating costs, road maintenance and repair, public safety, and public 
utility costs.
    (h) Resource Report 6--Geological resources. This report is 
required for applications involving LNG facilities and all other 
applications, except those involving only facilities within the 
boundaries of existing aboveground facilities, such as a compressor, 
meter, or regulator station. It must describe geological resources and 
hazards in the project area that might be directly or indirectly 
affected by the proposed action or that could place the proposed 
facilities at risk, the potential effects of those hazards on the 
facility, and methods proposed to reduce the effects or risks. Resource 
Report 6 must:
    (1) Describe, by milepost, mineral resources that are currently or 
potentially exploitable;
    (2) Describe, by milepost, existing and potential geological 
hazards and areas of nonroutine geotechnical concern, such as high 
seismicity areas, active faults, and areas susceptible to soil 
liquefaction; planned, active and abandoned mines; karst terrain; and 
areas of potential ground failure, such as subsidence, slumping, and 
landsliding. Discuss the hazards posed to the facility from each one.
    (3) Describe how the project would be located or designed to avoid 
or minimize adverse effects to the resources or risk to itself, 
including geotechnical investigations and monitoring that would be 
conducted before, during, and after construction. Discuss also the 
potential for blasting to affect structures, and the measures to be 
taken to remedy such effects.
    (4) Specify methods to be used to prevent project-induced 
contamination from surface mines or from mine tailings along the right-
of-way and whether the project would hinder mine reclamation or 
expansion efforts.
    (5) If the application involves an LNG facility located in zones 2, 
3, or 4 of the Uniform Building Code's Seismic Risk Map, or where there 
is potential for surface faulting or liquefaction, prepare a report on 
earthquake hazards and engineering in conformance with ``Data 
Requirements for the Seismic Review of LNG Facilities,'' NBSIR 84-2833. 
This document may be obtained from Commission staff.
    (6) If the application is for underground storage facilities:
    (i) Describe how the applicant would control and monitor the 
drilling activity of others within the field and buffer zone;
    (ii) Describe how the applicant would monitor potential effects of 
the operation of adjacent storage or production facilities on the 
proposed facility, and vice versa;
    (iii) Describe measures taken to locate and determine the condition 
of old wells within the field and buffer zone and how the applicant 
would reduce risk from failure of known and undiscovered wells; and
    (iv) Identify and discuss safety and environmental safeguards 
required by state and Federal drilling regulations.
    (i) Resource Report 7--Soils. This report is required for all 
applications except those not involving soil disturbance. It must 
describe the soils that would be affected by the proposed project, the 
effect on those soils, and measures proposed to minimize or avoid 
impact. Resource Report 7 must:
    (1) List, by milepost, the soil associations that would be crossed 
and describe the erosion potential, fertility, and drainage 
characteristics of each association.
    (2) If an aboveground facility site is greater than 5 acres:
    (i) List the soil series within the property and the percentage of 
the property comprised of each series;
    (ii) List the percentage of each series which would be permanently 
disturbed;
    (iii) Describe the characteristics of each soil series; and
    (iv) Indicate which are classified as prime or unique farmland by 
the U.S. Department of Agriculture, Natural Resources Conservation 
Service.
    (3) Identify, by milepost, potential impact from: soil erosion due 
to water, wind, or loss of vegetation; soil compaction and damage to 
soil structure resulting from movement of construction vehicles; wet 
soils and soils with poor drainage that are especially prone to 
structural damage; damage to drainage tile systems due to movement of 
construction vehicles and trenching activities; and interference with 
the operation of agricultural equipment due to the probability of large 
stones or blasted rock occurring on or near the surface as a result of 
construction.
    (4) Identify, by milepost, cropland and residential areas where 
loss of soil fertility due to trenching and backfilling could occur.
    (5) Describe proposed mitigation measures to reduce the potential 
for adverse impact to soils or agricultural productivity. Compare 
proposed mitigation measures with the staff's current ``Upland Erosion 
Control, Revegetation and Maintenance Plan'', which is available from 
the Commission's Internet Homepage at http://www.ferc.fed.us/gas/
environment/gidlines.htm or from the Commission's staff, explain how 
proposed mitigation measures provide equivalent or greater protections 
to the environment.
    (j) Resource Report 8--Land use, recreation and aesthetics. This 
report is required for all applications except those involving only 
facilities which are of comparable use at existing compressor, meter, 
and regulator stations. It must describe the existing uses of lands on, 
and within 0.25 mile of, the proposed project and changes to those land 
uses that would occur if the project is approved. The report shall 
discuss proposed mitigation measures, including protection and 
enhancement of existing land use. Resource Report 8 must:
    (1) Describe the width and acreage requirements of all construction 
and permanent rights-of-way and the acreage required for each proposed 
plant and

[[Page 55709]]

operational site, including injection or withdrawal wells.
    (i) List, by milepost, locations where the proposed right-of-way 
would be adjacent to existing rights-of-way of any kind.
    (ii) Identify, preferably by diagrams, existing rights-of-way that 
would be used for a portion of the construction or operational right-
of-way, the overlap and how much additional width would be required.
    (iii) Identify the total amount of land to be purchased or leased 
for each aboveground facility, the amount of land that would be 
disturbed for construction and operation of the facility, and the use 
of the remaining land not required for project operation.
    (iv) Identify the size of typical staging areas and expanded work 
areas, such as those at railroad, road, and waterbody crossings, and 
the size and location of all pipe storage yards and access roads.
    (2) Identify, by milepost, the existing use of lands crossed by the 
proposed pipeline, or on or adjacent to each proposed plant and 
operational site.
    (3) Describe planned development, the time frame for such 
development, and proposed coordination to minimize impacts on land use.
    (4) Identify, by milepost and length of crossing, the area of 
direct effect of each proposed facility and operational site on sugar 
maple stands, orchards and nurseries, landfills, operating mines, 
hazardous waste sites, state wild and scenic rivers, state or local 
designated trails, nature preserves, game management areas, remnant 
prairie, old-growth forest, national or state forests, parks, golf 
courses, designated natural, recreational or scenic areas, or 
registered natural landmarks, Native American religious sites and 
reservations, lands identified under the Special Area Management Plan 
of the Office of Coastal Zone Management, National Oceanic and 
Atmospheric Administration, and lands owned or controlled by Federal or 
state agencies or private preservation groups shall be identified by 
milepost and length of crossing.
    (5) Identify, by milepost, all residences and buildings within 50 
feet of the proposed pipeline construction right-of-way and the 
distance of the residence or building from the right-of-way. Provide 
survey drawings or alignment sheets to illustrate the location of the 
facilities in relation to the buildings.
    (6) Describe any areas crossed by the proposed pipeline at or 
adjacent to each proposed plant and operational site which are included 
in, or are designated for study for inclusion in: The National Wild and 
Scenic Rivers System (16 U.S.C. 1271); The National Trails System (16 
U.S.C. 1241); or a wilderness area designated under the Wilderness Act 
(16 U.S.C. 1132).
    (7) For facilities within a designated coastal zone management 
area, provide a consistency determination or evidence that the 
applicant has requested a consistency determination from the state's 
coastal zone management program.
    (8) Describe the impact the project will have on present uses of 
the affected area, including commercial uses, mineral resources, 
recreational areas, public health and safety, and the aesthetic value 
of the land and its features. Describe any temporary or permanent 
restrictions on land use resulting from the project.
    (9) Describe mitigation measures intended for all special use areas 
identified under paragraphs (j)(2) through (6) of this section.
    (10) Describe proposed typical mitigation measures for each 
residence that is within 50 feet of the edge of the pipeline 
construction right-of-way, as well as any proposed residence-specific 
mitigation. Describe how residential property would be restored 
(fences, driveways, stone walls, sidewalks, water supply, and septic 
systems, for example). Describe compensation plans for temporary and 
permanent rights-of-way and the eminent domain process for the affected 
areas.
    (11) Describe measures proposed to mitigate the aesthetic impact of 
the facilities especially for aboveground facilities such as compressor 
or meter stations.
    (12) Demonstrate that applications for rights-of-way or other 
proposed land use have been or soon will be filed with Federal land-
managing agencies with jurisdiction over land that would be affected by 
the project.
    (k) Resource Report 9--Air and noise quality. This report is 
required for applications involving compressor facilities at new or 
existing stations, and for all new LNG facilities. It must identify the 
effects of the project on the existing air quality and noise 
environment and describe proposed measures to mitigate the effects. 
Resource Report 9 must:
    (1) Describe the existing air quality, including background levels 
of nitrogen dioxide and other criteria pollutants which may be emitted 
above EPA-identified significance levels.
    (2) Quantitatively describe existing and proposed noise levels at 
noise-sensitive areas.
    (i) Report existing noise levels as the Leq (day), 
Leq (night), and Ldn and include the basis for 
the data or estimates.
    (ii) For existing compressor stations, include the results of a 
sound level survey at the site property line and nearby noise-sensitive 
areas while the compressors are operated at full load.
    (iii) For proposed new compressor station sites, measure or 
estimate the existing ambient sound environment based on current land 
uses and activities.
    (iv) Include a plot plan that identifies the locations and duration 
of noise measurements, the time of day, weather conditions, wind speed 
and direction, engine load, and other noise sources present during each 
measurement.
    (3) Estimate the impact of the project on air quality, including 
how existing regulatory standards would be met.
    (i) Provide the emission rate of nitrogen oxides from existing and 
proposed facilities, expressed in pounds per hour and tons per year for 
maximum operating conditions, include supporting calculations, emission 
factors, fuel consumption rates, and annual hours of operation.
    (ii) For major sources of air emissions (as defined by the 
Environmental Protection Agency), provide copies of applications for 
permits to construct (and operate, if applicable) or for applicability 
determinations under regulations for the prevention of significant air 
quality deterioration and subsequent determinations.
    (4) Provide a quantitative estimate of the impact of the project on 
noise levels at noise-sensitive areas, such as schools, hospitals, or 
residences.
    (i) Include step-by-step supporting calculations, far-field sound 
level data for maximum facility operation, and the source of the data.
    (ii) Include sound pressure levels for unmuffled engine inlets and 
exhausts, engine casings, and cooling equipment; dynamic insertion loss 
for all mufflers; sound transmission loss for all compressor building 
components, including walls, roof, doors, windows, and ventilation 
openings; sound attenuation from the station to nearby noise-sensitive 
areas; the manufacturer's name, the model number, the performance 
rating; and a description of each noise source and noise control 
component to be employed at the proposed compressor station.
    (iii) Far-field sound level data measured from similar units in 
service elsewhere, when available, may be substituted for 
manufacturer's far-field sound level data.
    (iv) If specific noise control equipment has not been chosen, 
include

[[Page 55710]]

a schedule for submitting the data prior to certification.
    (v) The estimate must demonstrate that the project will comply with 
applicable noise regulations and show how the facility will meet the 
following requirements:
    (A) The noise attributable to any new compressor station or 
compression added at an existing station or an existing station that is 
otherwise modified, upgraded, or uprated, must not exceed a day-night 
sound level (Ldn) of 55 dBA at any pre-existing noise-
sensitive area (such as schools, hospitals, or residences).
    (B) New compressor stations or modification of existing stations 
shall not result in a perceptible increase in vibration at any noise-
sensitive area.
    (5) Describe measures and manufacturer's specifications for 
equipment proposed to mitigate impact to air and noise quality, 
including emission control systems, installation of filters, mufflers, 
or insulation of piping and buildings, and orientation of equipment 
away from noise-sensitive areas.
    (l) Resource Report 10--Alternatives. This report is required for 
all applications. It must describe alternatives to the project and 
compare the environmental impacts of such alternatives to those of the 
proposal. The discussion must demonstrate how environmental benefits 
and costs were weighed against economic benefits and costs, and 
technological and procedural constraints. The potential for each 
alternative to meet project deadlines and the environmental 
consequences of each alternative shall be discussed. Resource Report 10 
must:
    (1) Discuss the ``no action'' alternative and the potential for 
accomplishing the proposed objectives through the use of other systems, 
energy conservation, or realistic alternatives. Provide an analysis of 
the relative environmental benefits and costs.
    (2) Describe alternative routes or locations considered for each 
facility during the initial screening but rejected. Include the 
environmental characteristics of each route or site, and the reasons 
for rejecting it. Identify the location of such alternatives on maps of 
sufficient scale to depict their location and relationship to the 
proposed action, and the relationship of the pipeline to existing 
rights-of-way.
    (3) Describe alternative routes or locations considered for more 
in-depth consideration. Include a description of the environmental 
characteristics of each route or site and the reasons for rejecting it. 
Provide comparative tables showing the differences in environmental 
characteristics for the alternative and proposed action. The location 
of any alternatives in this paragraph shall be provided on maps 
equivalent to those required in paragraph (c)(2) of this section.
    (m) Resource Report 11--Reliability and safety. This report is 
required for applications involving new or recommissioned LNG 
facilities. Information previously filed with the Commission need not 
be refiled if the applicant verifies its continued validity. This 
report shall address the potential hazard to the public from failure of 
facility components resulting from accidents or natural catastrophes, 
how these events would affect reliability, and what procedures and 
design features have been used to reduce potential hazards. Resource 
Report 11 must:
    (1) Describe measures proposed to protect the public from failure 
of the proposed facilities (including coordination with local 
agencies).
    (2) Discuss hazards, the environmental impact, and service 
interruptions which could reasonably ensue from failure of the proposed 
facilities.
    (3) Discuss design and operational measures to avoid or reduce 
risk.
    (4) Discuss contingency plans for maintaining service or reducing 
downtime.
    (5) Describe measures used to exclude the public from hazardous 
areas. Discuss measures used to minimize problems arising from 
malfunctions and accidents (with estimates of probability of 
occurrence) and identify standard procedures for protecting services 
and public safety during maintenance and breakdowns.
    (n) Resource Report 12--PCB Contamination. This report is required 
for applications involving the replacement, abandonment by removal, or 
abandonment in place of pipeline facilities determined to have 
polychlorinated biphenyls (PCBs) in excess of 50 ppm in pipeline 
liquids. Resource Report 12 must:
    (1) Provide a statement that activities would comply with an 
approved EPA disposal permit, with the dates of issuance and expiration 
specified, or with the requirements of the Toxic Substances Control 
Act.
    (2) For compressor station modifications on sites that have been 
determined to have soils contaminated with PCBs, describe the status of 
remediation efforts completed to date.
    (o) Resource Report 13--Engineering and design material. This 
report is required for construction of new liquefied natural gas (LNG) 
facilities, or the recommissioning of existing LNG facilities. If the 
recommissioned facility is existing and is not being replaced, 
relocated, or significantly altered, resubmittal of information already 
on file with the Commission is unnecessary. Resource Report 13 must:
    (1) Provide a detailed plot plan showing the location of all major 
components to be installed, including compression, pretreatment, 
liquefaction, storage, transfer piping, vaporization, truck loading/
unloading, vent stacks, pumps, and auxiliary or appurtenant service 
facilities.
    (2) Provide a detailed layout of the fire protection system showing 
the location of fire water pumps, piping, hydrants, hose reels, dry 
chemical systems, high expansion foam systems, and auxiliary or 
appurtenant service facilities.
    (3) Provide a layout of the hazard detection system showing the 
location of combustible-gas detectors, fire detectors, heat detectors, 
smoke or combustion product detectors, and low temperature detectors. 
Identify those detectors that activate automatic shutdowns and the 
equipment that would shutdown. Include all safety provisions 
incorporated in the plant design, including automatic and manually 
activated emergency shutdown (ESD) systems.
    (4) Provide a detailed layout of the spill containment system 
showing the location of impoundments, sumps, subdikes, channels, and 
water removal systems.
    (5) Provide manufacturer specifications, drawings, and literature 
on the fail-safe shut-off valve for each loading area at a marine 
terminal (if applicable).
    (6) Provide a detailed layout of the fuel gas system showing all 
taps with process components.
    (7) Provide copies of company, engineering firm, or consultant 
studies of a conceptual nature that show the engineering planning or 
design approach to the construction of new facilities or plants.
    (8) Provide engineering information on major process components 
related to the items in paragraphs (o) (1) through (6) of this section, 
which include (as applicable) function, capacity, type, manufacturer, 
drive system (horsepower, voltage), operating pressure, and 
temperature.
    (9) Provide manuals and construction drawings for LNG storage 
tank(s).
    (10) Provide up-to-date piping and instrumentation diagrams. 
Include a description of the instrumentation and control philosophy, 
type of instrumentation (pneumatic, electronic), use of computer 
technology, and control

[[Page 55711]]

room display and operation. Also, provide an overall schematic diagram 
of the entire process flow system, including maps, materials, and 
energy balances.
    (11) Provide engineering information on the plant's electrical 
power generation system, distribution system, emergency power system, 
uninterruptible power system, and battery backup system.
    (12) Identify of all codes and standards under which the plant (and 
marine terminal, if applicable) will be designed, and any special 
considerations of safety provisions that were applied to the design of 
plant components.
    (13) Provide a list of all permits or approvals from local, state, 
Federal, or Native American groups or Indian agencies required prior to 
and during construction of the plant, and the status of each, including 
the date filed, the date issued, and any known obstacles to approval. 
Include a description of data records required for submission to such 
agencies and transcripts of any public hearings by such agencies. Also 
provide copies of any correspondence relating to the actions by all, or 
any, of these agencies regarding all required approvals.
    (14) Identify how each applicable requirement will comply with 49 
CFR part 193 and the National Fire Protection Association 59A LNG 
Standards. For new facilities, the siting requirements of 49 CFR part 
193, subpart B must be given special attention. If applicable, vapor 
dispersion calculations from LNG spills over water should also be 
presented to ensure compliance with the U.S. Coast Guard's LNG 
regulations in 33 CFR part 127.
    (15) Provide seismic information specified in Data Requirements for 
the Seismic Review of LNG facilities (NBSIR 84-2833, available from 
FERC staff) for facilities that would be located in zone 2, 3, or 4 of 
the Uniform Building Code Seismic Map of the United States.
    51. New Sec. 380.13 is added to read as follows:


Sec. 380.13  Compliance with the Endangered Species Act.

    (a) Definitions. For purposes of this section:
    (1) ``Listed species'' and ``critical habitat'' have the same 
meaning as provided in 50 CFR 402.02.
    (2) ``Project area'' means any area subject to construction 
activities (for example, material storage sites, temporary work areas, 
and new access roads) necessary to install or abandon the facilities.
    (b) Procedures for informal consultation. (1) Designation of non-
Federal representative. The project sponsor is designated as the 
Commission's non-Federal representative for purposes of informal 
consultations with the U.S. Fish and Wildlife Service (FWS) and the 
National Marine Fisheries Service (NMFS) under the Endangered Species 
Act of 1973, as amended (ESA).
    (2) Consultation requirement. (i) Prior to the filing of the 
environmental report specified in Sec. 380.12, the project sponsor must 
contact the appropriate regional or field office of the FWS or the 
NMFS, or both if appropriate, to initiate informal consultations, 
unless it is proceeding pursuant to a blanket clearance issued by the 
FWS and/or NMFS which is less than 1 year old and the clearance does 
not specify more frequent consultation.
    (ii) If a blanket clearance is more than 1 year old or less than 1 
year old and specifies more frequent consultations, or if the project 
sponsor is not proceeding pursuant to a blanket clearance, the project 
sponsor must request a list of federally listed or proposed species and 
designated or proposed critical habitat that may be present in the 
project area, or provide the consulted agency with such a list for its 
concurrence.
    (iii) The consulted agency will provide any information requested 
by a project sponsor pursuant to this paragraph within 30 days of its 
receipt of the initial request. In the event that the consulted agency 
does not provide this information within this time period, the project 
sponsor may notify the Director, OPR, and follow the procedures in 
paragraph (c) of this section.
    (3) Finding of no impact. (i) If, at any time during the informal 
consultations, the agency arrives at a finding of no impact, the 
consulted agency agency will provide this information to the project 
sponsor within 30 days.
    (ii) Such a finding confirms:
    (A) That no listed or proposed species, or its listed or proposed 
critical habitat, occurs in the project area; or
    (B) That the project is not likely to adversely affect a listed 
species or critical.
    (iii) In the event that the consulted agency does not provide this 
information within this time period, the project sponsor may notify the 
Director, OPR, and follow the procedures in paragraph (c) of this 
section.
    (4) Potential impact to proposed species. (i) If the consulted 
agency, pursuant to informal consultations, initially determines that 
any species proposed to be listed, or its proposed critical habitat, 
occurs in the project area, the project sponsor must confer with the 
consulted agency on methods to avoid or reduce the potential impact.
    (ii) The project sponsor should include in its proposal, 
implementation of any mitigating measures recommended through the 
consultation process.
    (5) Continued informal consultations for listed species. (i) If the 
consulted agency initially determines, pursuant to the informal 
consultations, that a listed species or its designated critical habitat 
may occur in the project area, the project sponsor must continue 
informal consultations with the consulted agency to determine if the 
proposed project may affect the species or habitat. These consultations 
may include discussions with experts (including experts provided by the 
consulted agency), field surveys, biological analyses, and the 
formulation of mitigation measures. If the biological assessment or 
other pertinent information indicates that the project is not likely to 
adversely affect a listed species or critical habitat, the consulting 
agency provides a letter of concurrence which completes informal 
consultation.
    (ii) The project sponsor must prepare a Biological Assessment 
unless the consulted agency indicates that the proposed project is not 
likely to adversely affect a specific listed species or its designated 
critical habitat. The Biological Assessment must contain the following 
information for each species contained in the consulted agency's 
species list:
    (A) Life history and habitat requirements;
    (B) Results of detailed surveys to determine if individuals, 
populations, or suitable, unoccupied habitat exists in the proposed 
project's area of effect;
    (C) Potential impacts, both beneficial and negative, that could 
result from the construction and operation of the proposed project, or 
disturbance associated with the abandonment, if applicable; and
    (D) Proposed mitigation that would eliminate or minimize these 
potential impacts.
    (iii) All surveys must be conducted by qualified biologists and 
must use FWS and/or NMFS approved survey methodology. In addition, the 
Biological Assessment must include the following information:
    (A) Name(s) and qualifications of person(s) conducting the survey;
    (B) Survey methodology;
    (C) Date of survey(s); and
    (D) Detailed and site-specific identification of size and location 
of all areas surveyed.

[[Page 55712]]

    (iv) The project sponsor must submit the Biological Assessment to 
the consulted agency for its review and comment. If the consulted 
agency fails to provide formal comments on the Biological Assessment to 
the project sponsor within 30 days of its receipt, as specified in 50 
CFR 402.12(d), the project sponsor may notify the Director, OPR, and 
follow the procedures in paragraph (c) of this section.
    (v) The consulted agency's comments on the Biological Assessment's 
determination must be filed with the Commission.
    (c) Notification to Director of OPR. In the event that the 
consulted agency fails to respond to requests by the project sponsor 
under paragraph (b) of this section, the project sponsor must notify 
the Director, OPR. The notification must include all information, 
reports, letters, and other correspondence prepared pursuant to this 
section. The Director will determine whether:
    (1) Additional informal consultation is required;
    (2) Formal consultation must be initiated under paragraph (d) of 
this section; or
    (3) Construction may proceed.
    (d) Procedures for Formal Consultation. (1) In the event that 
Formal Consultation is required pursuant to paragraphs (b)(5)(v) or 
(c)(2) of this section, the Commission staff will initiate Formal 
Consultation with the FWS and/or NMFS, as appropriate, and will request 
that the consulted agency designate a lead Regional Office, lead Field/
District Office, and Project Manager, as necessary, to facilitate the 
Formal Consultation process. In addition, the Commission will designate 
a contact for Formal Consultation purposes.
    (2) During Formal Consultation, the consulted agency, the 
Commission, and the project sponsor will coordinate and consult to 
determine potential impacts and mitigation which can be implemented to 
minimize impacts. The Commission and the consulted agency will schedule 
coordination meetings and/or field visits as necessary.
    (3) The Formal Consultation period will last no longer than 90 
days, unless the consulted agency, the Commission, and project sponsor 
mutually agree to an extension of this time period.
    (4) The consulted agency will provide the Commission with a 
Biological Opinion on the proposed project, as specified in 50 CFR 
402.14(e), within 45 days of the completion of Formal Consultation.
    52. New Sec. 380.14 is added to read as follows:


Sec. 380.14  Compliance with the National Historic Preservation Act.

    Section 106 of the National Historic Preservation Act, as amended 
(NHPA), requires the Commission take into account the effect of a 
proposed project on any historic property and to afford the Advisory 
Council on Historic Preservation (Council) an opportunity to comment on 
the undertaking. The project sponsor, as a non-Federal party, assists 
the Commission in meeting its obligations under NHPA section 106 by 
following the procedures at Sec. 380.12(f). The project sponsor may 
contact the Commission at any time for assistance. The Commission will 
review the resultant filings.
    (a) The Commission's NHPA section 106 responsibilities apply to 
public and private lands, unless subject to the provisions of paragraph 
(b) of this section. The project sponsor will assist the Commission in 
taking into account the views of interested parties, Native Americans, 
and tribal leaders.
    (b) If Federal or Tribal land is affected by a proposed project, 
the project sponsor shall adhere to any requirements for cultural 
resources studies of the applicable Federal land-managing agencies on 
Federal lands and any tribal requirements on Tribal lands. The project 
sponsor must identify, in Resource Report 4 filed with the application 
the status of cultural resources studies on Federal or Tribal lands, as 
applicable
    (c) The project sponsor must consult with the SHPO(s). If the SHPO 
declines to consult with the project sponsor, the project sponsor shall 
not continue, except as instructed by the Director, Office of Pipeline 
Regulation.
    (d) If the project is covered by an agreement document among the 
Commission, Council, SHPO(s), land-managing agencies, project sponsors, 
and interested persons, as appropriate, then that agreement will 
provide for compliance with NHPA section 106, as applicable.
    53. New Sec. 380.15 is added to read as follows:


Sec. 380.15  Siting and maintenance requirements.

    (a) The siting, construction, and maintenance of facilities shall 
be undertaken in a way that minimizes effects on scenic, historic, 
wildlife, and recreational values.
    (b) The desires of landowners should be taken into account in the 
planning, locating, clearing, and maintenance of rights-of-way and the 
construction of facilities on their property, so long as the result is 
consistent with laws relating to land-use and any requirements imposed 
by the Commission.
    (c) The requirements of this section do not affect a project 
sponsor's obligation to comply with safety regulations of the U.S. 
Department of Transportation. Furthermore, the requirements of this 
paragraph shall not detract from recognized safe engineering practices.
    (d) Pipeline construction. (1) The use, widening, or extension of 
existing rights-of way must be considered in locating proposed 
facilities.
    (2) In locating proposed facilities, the project sponsor shall, to 
the extent practicable, avoid places listed on, or eligible for listing 
on, the National Register of Historic Places; natural landmarks listed 
on the National Register of Natural Landmarks; officially designated 
parks; wetlands; and scenic, recreational, and wildlife lands. If 
rights-of-way must be routed near or through such places, attempts 
should be made to minimize visibility from areas of public view and to 
preserve the character and existing environment of the area.
    (3) Rights-of-way should avoid forested areas and steep slopes 
where practical.
    (4) Rights-of-way clearing should be kept to the minimum width 
necessary.
    (5) In selecting a method to clear rights-of-way, soil stability 
and protection of natural vegetation and adjacent resources should be 
taken into account.
    (6) Trees and vegetation cleared from rights-of-way in areas of 
public view should be disposed of without undue delay.
    (7) Remaining trees and shrubs should not be unnecessarily damaged.
    (8) Long foreground views of cleared rights-of-way through wooded 
areas that are visible from areas of public view should be avoided.
    (9) Where practical, rights-of-way should avoid crossing hills and 
other high points at their crests where the crossing is in a forested 
area and the resulting notch is clearly visible in the foreground from 
areas of public view.
    (10) Screen plantings should be employed where rights-of-way enter 
forested areas from a clearing and where the clearing is plainly 
visible in the foreground from areas of public view.
    (11) Temporary roads should be designed for proper drainage and 
built to minimize soil erosion. Upon abandonment, the road area should 
be restored and stabilized without undue delay.
    (e) Right-of-way maintenance. (1) Vegetation covers established on 
a right-of-way should be properly maintained.

[[Page 55713]]

    (2) Access and service roads should be maintained with proper 
cover, water bars, and the proper slope to minimize soil erosion. They 
should be jointly used with other utilities and land-management 
agencies where practical.
    (3) Chemical control of vegetation should not be used unless 
authorized by the landowner or land-managing agency. When chemicals are 
used for control of vegetation, they should be approved by EPA for such 
use and used in conformance with all applicable regulations.
    (f) Construction of aboveground facilities. (1) Unobtrusive sites 
should be selected for the location of aboveground facilities.
    (2) Aboveground facilities should cover the minimum area 
practicable.
    (3) Noise potential should be considered in locating compressor 
stations, or other aboveground facilities.
    (4) The exterior of aboveground facilities should be harmonious 
with the surroundings and other buildings in the area.
    54. Appendix A to Part 380 is revised to read as follows:

Appendix A to Part 380--Minimum Filing Requirements for 
Environmental Reports Under the Natural Gas Act

------------------------------------------------------------------------
             Resource Report 1--General Project Description
------------------------------------------------------------------------
 Provide a detailed description and location map of the project
 facilities. (Sec.  380.12(c)(1))
 Describe any nonjurisdictional facilities that would be built
 in association with the project. (Sec.  380.12(c)(2))
 Provide current original U.S. Geological Survey (USGS) 7.5-
 minute-series topographic maps with mileposts showing the project
 facilities; (Sec.  380.12(c)(3))
 Provide aerial photographs or photo-based alignment sheets with
 mileposts showing the project facilities; (Sec.  380.12(c)(3))
 Provide plot/site plans of compressor stations showing the
 location of the nearest noise-sensitive areas (NSA) within 1 mile.
 (Sec.  380.12(c)(3,4))
 Describe construction and restoration methods. (Sec.
 380.12(c)(6))
 Identify the permits required for construction across surface
 waters. (Sec.  380.12(c)(9))
 Provide the names and addresses of all landowners whose land
 would be crossed by the project facilities. Include the names and
 addresses of all residents adjacent to new or modified compressor
 stations. (Sec.  380.12(c)(10))
------------------------------------------------------------------------
                Resource Report 2--Water Use and Quality
------------------------------------------------------------------------
 Identify all perennial surface waterbodies crossed by the
 proposed project and their water quality classification. (Sec.
 380.12(d)(1))
 Identify all waterbody crossings that may have contaminated
 waters or sediments. (Sec.  380.12(d)(1))
 Identify watershed areas, designated surface water protection
 areas, and sensitive waterbodies crossed by the proposed project. (Sec.
  380.12(d)(1))
 Provide a table identifying all wetlands, by milepost and
 length, crossed by the project (including abandoned pipeline), and the
 total acreage and acreage of each wetland type that would be affected
 by construction. (Sec.  380.12(d)(1 & 4))
 Discuss construction and restoration methods proposed for
 crossing wetlands, and compare them to staff's Wetland and Waterbody
 Construction and Mitigation Procedures; (Sec.  380.12(d)(2))
 Describe the proposed waterbody construction, impact
 mitigation, and restoration methods to be used to cross surface waters
 and compare to the staff's Wetland and Waterbody Construction and
 Mitigation Procedures. (Sec.  380.12(d)(2))
 Provide original National Wetlands Inventory (NWI) maps that
 show all proposed facilities and include milepost locations for
 proposed pipeline routes. (Sec.  380.12(d)(4))
 Identify all U.S. Environmental Protection Agency (EPA)- or
 state-designated aquifers crossed. (Sec.  380.12(d)(9))
------------------------------------------------------------------------
               Resource Report 3--Vegetation and Wildlife
------------------------------------------------------------------------
 Classify the fishery type of each surface waterbody that would
 be crossed, including fisheries of special concern. (Sec.
 380.12(e)(1))
 Describe terrestrial and wetland wildlife and habitats that
 would be affected by the project. (Sec.  380.12(e)(2))
 Describe the major vegetative cover types that would be crossed
 and provide the acreage of each vegetative cover type that would be
 affected by construction. (Sec.  380.12(e)(3))
 Describe the effects of construction and operation procedures
 on the fishery resources and proposed mitigation measures. (Sec.
 380.12(e)(4))
 Evaluate the potential for short-term, long-term, and permanent
 impact on the wildlife resources caused by construction and operation
 of the project and proposed mitigation measures. (Sec.  380.12(e)(4))
 Identify all federally listed or proposed endangered or
 threatened species and state-listed endangered or threatened species
 that potentially occur in the vicinity of the project and discussion
 results of consultations with other agencies. (Sec.  380.12(e)(4,5))
 Describe any significant biological resources that would be
 affected. Describe impact and any mitigation proposed to avoid or
 minimize that impact. (Sec.  380.12(e)(4 & 6))
------------------------------------------------------------------------
                  Resource Report 4--Cultural Resources
------------------------------------------------------------------------
 See Sec.  380.14 and ``OPR's Guidelines for Reporting on
 Cultural Resources Investigations'' for further guidance.
 Plan for Unanticipated Historic Properties and Remains. (Sec.
 380.12(f)(1)(i) & (2))
 Initial cultural resources consultation and documentation, and
 documentation of consultation with Native Americans. (Sec.
 380.12(f)(1)(ii) & (2))
 Overview/Survey Report(s). (Sec.  380.12(f)(1)(iii) & (2))
------------------------------------------------------------------------
                    Resource Report 5--Socioeconomics
------------------------------------------------------------------------
 For major aboveground facilities and major pipeline projects
 that require an EIS, describe existing socioeconomic conditions within
 the project area. (Sec.  380.12(g)(1))
 For major aboveground facilities, quantify impact on
 employment, housing, local government services, local tax revenues,
 transportation, and other relevant factors within the project area.
 (Sec.  380.12(g)(2-6))
------------------------------------------------------------------------

[[Page 55714]]

                 Resource Report 6--Geological Resources
------------------------------------------------------------------------
 Identify the location (by milepost) of mineral resources and
 any planned or active surface mines crossed by the proposed facilities.
 (Sec.  380.12(h)(1))
 Identify any geologic hazards to the proposed facilities. (Sec.
  380.12(h)(2))
 Discuss the need for and locations where blasting may be
 necessary in order to construct the proposed facilities. (Sec.
 380.12(h)(3))
 For LNG projects in seismic areas, the materials required by
 ``Data Requirements for the Seismic Review of LNG Facilities,'' NBSIR84-
 2833. (Sec.  380.12(h)(5))
 For underground storage facilities, how drilling activity by
 others within or adjacent to the facilities would be monitored, and how
 old wells would be located and monitored within the facility
 boundaries. (Sec.  380.12(h)(6))
------------------------------------------------------------------------
                        Resource Report 7--Soils
------------------------------------------------------------------------
 Identify, describe, and group by milepost the soils affected by
 the proposed pipeline and aboveground facilities. (Sec.  380.12(i)(1))
 For aboveground facilities that would occupy sites over 5
 acres, determine the acreage of prime farmland soils that would be
 affected by construction and operation. (Sec.  380.12(i)(2))
 Describe, by milepost, potential impacts on soils. (Sec.
 380.12(i)(3,4))
 Identify proposed mitigation to minimize impact on soils, and
 compare with the staff's Upland Erosion Control, Revegetation, and
 Maintenance Plan. (Sec.  380.12(i)(5))
------------------------------------------------------------------------
         Resource Report 8--Land Use, Recreation and Aesthetics
------------------------------------------------------------------------
 Classify and quantify land use affected by: (Sec.
 380.12(j)(1))
 ipeline construction and permanent rights-of-way (Sec.
 380.12(j)(1));
 Extra work/staging areas (Sec.  380.12(j)(1));
 Access roads (Sec.  380.12(j)(1));
 Pipe and contractor yards (Sec.  380.12(j)(1)); and
 Aboveground facilities (Sec.  380.12(j)(1)).
 Identify by milepost all locations where the pipeline right-of-
 way would at least partially coincide with existing right-of-way, where
 it would be adjacent to existing rights-of-way, and where it would be
 outside of existing right-of-way. (Sec.  380.12(j)(1))
 Provide detailed typical construction right-of-way cross-
 section diagrams showing information such as widths and relative
 locations of existing rights-of-way, new permanent right-of-way, and
 temporary construction right-of-way. (Sec.  380.12(j)(1))
 Summarize the total acreage of land affected by construction
 and operation of the project. (Sec.  380.12(j)(1))
 Identify by milepost all planned residential or commercial/
 business development and the time frame for construction. (Sec.
 380.12(j)(3))
 Identify by milepost special land uses (e.g., sugar maple
 stands, specialty crops, natural areas, national and state forests,
 conservation land, etc.). (Sec.  380.12(j)(4))
 Identify by beginning milepost and length of crossing all land
 administered by Federal, state, or local agencies, or private
 conservation organizations. (Sec.  380.12(j)(4))
 Identify by milepost all natural, recreational, or scenic
 areas, and all registered natural landmarks crossed by the project.
 (Sec.  380.12(j)(4 & 6))
 Identify all facilities that would be within designated coastal
 zone management areas. (Sec.  380.12(j)(4))
 Identify by milepost all residences that would be within 50
 feet of the construction right-of-way or extra work area. (Sec.
 380.12(j)(5))
 Identify all designated or proposed candidate National or State
 Wild and Scenic Rivers crossed by the project. (Sec.  380.12(j)(6))
 Describe any measures to visually screen aboveground
 facilities, such as compressor stations. (Sec.  380.12(j)(11))
 Demonstrate that applications for rights-of-way or other
 proposed land use have been or soon will be filed with Federal land-
 managing agencies with jurisdiction over land that would be affected by
 the project. (Sec.  380.12(j)(12))
------------------------------------------------------------------------
                Resource Report 9--Air and Noise Quality
------------------------------------------------------------------------
 Describe existing air quality in the vicinity of the project.
 (Sec.  380.12(k)(1))
 Quantify the existing noise levels (day-night sound level (Ldn)
 and other applicable noise parameters) at the noise sensitive area and
 at other locations required by state and local noise ordinances. (Sec.
 380.12(k)(2))
 Quantify existing and proposed emissions of compressor
 equipment, plus construction emissions, including nitrogen oxides (NOX)
 and carbon monoxide (CO), and the basis for these calculations.
 Summarize anticipated air quality impacts for the project. (Sec.
 380.12(k)(3))
 Describe the existing and proposed compressor units at each
 station where new, additional, or modified compression units are
 proposed, including the manufacturer, model number, and horsepower of
 the compressor units. (Sec.  380.12(k)(4))
 Identify any nearby NSA by distance and direction from the
 proposed compressor unit building/enclosure. (Sec.  380.12(k)(4))
 Identify any applicable state or local noise regulations. (Sec.
  380.12(k)(4))
 Calculate the noise impact of the proposed compressor unit
 modifications or additions, specifying how the impact was calculated,
 including manufacturer's data and proposed noise control equipment.
 (Sec.  380.12(k)(4))
------------------------------------------------------------------------
                    Resource Report 10--Alternatives
------------------------------------------------------------------------
 Address the ``no action'' alternative. (Sec.  380.12(l)(1))
 For large projects, address the effect of energy conservation
 or energy alternatives to the project. (Sec.  380.12(l)(1))
 Identify system alternatives considered during the
 identification of the project and provide the rationale for rejecting
 each alternative. (Sec.  380.12(l)(1))
 Identify major and minor route alternatives considered to avoid
 impact on sensitive environmental areas (e.g., wetlands, parks, or
 residences) and provide sufficient comparative data to justify the
 selection of the proposed route. (Sec.  380.12(l)(3))
 Identify alternative sites considered for the location of major
 new aboveground facilities and provide sufficient comparative data to
 justify the selection of the proposed site. (Sec.  380.12(l)(3))
------------------------------------------------------------------------
               Resource Report 11--Reliability and Safety
------------------------------------------------------------------------
 Describe how the project facilities would be designed,
 constructed, operated, and maintained to minimize potential hazard to
 the public from the failure of project components as a result of
 accidents or natural catastrophes. (Sec.  380.12(m))
------------------------------------------------------------------------

[[Page 55715]]

                  Resource Report 12--PCB Contamination
------------------------------------------------------------------------
 For projects involving the replacement or abandonment of
 facilities determined to have PCBs, provide a statement that activities
 would comply with an approved EPA disposal permit or with the
 requirements of the TSCA. (Sec.  380.12(n)(1))
 For compressor station modifications on sites that have been
 determined to have soils contaminated with PCBs, describe the status of
 remediation efforts completed to date. (Sec.  380.12(n)(2))
------------------------------------------------------------------------
    Resource Report 13--Additional Information Related to LNG Plants
------------------------------------------------------------------------
  Provide all the listed detailed engineering materials. (Sec.
 380.12(o))
------------------------------------------------------------------------

PART 385--RULES OF PRACTICE AND PROCEDURE

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

    Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16 
U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42 U.S.C. 7101-7352; 49 
U.S.C. 60502; 49 App. U.S.C. 1085.

    56. In Sec. 385.2001, paragraph (b)(3) is revised to read as 
follows:


Sec. 385.2001  Filings (Rule 2001).

* * * * *
    (b) * * *
    (3) The Secretary, or the office director to whom the filing has 
been referred, will send a letter of rejections with an indication of 
the deficiencies in the filing and the reasons for rejection.
* * * * *
[FR Doc. 98-26721 Filed 10-15-98; 8:45 am]
BILLING CODE 6717-01-P