[Federal Register Volume 63, Number 206 (Monday, October 26, 1998)]
[Proposed Rules]
[Pages 57081-57085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28545]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 3, 341, 342, 343, 346, 357, 362 and 385

[Docket No. RM99-1-000]


Revisions to Oil Pipeline Regulations

October 20, 1998.
AGENCY: Federal Energy Regulatory Commission. DOE.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
proposing to revise its regulations governing oil pipelines. The goals 
of these proposed revisions are to clarify the Commission's regulations 
and bring them up to date.

DATES: Comments are due November 25, 1998.

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

FOR FURTHER INFORMATION CONTACT: Travis R. Smith, Office of the General 
Counsel, Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 208-0696.

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.
    The Federal Energy Regulatory Commission (Commission) has reviewed 
its regulations governing oil pipelines and has determined that various 
provisions are either outdated or in conflict with other oil pipeline 
regulations. Accordingly, the Commission is proposing to revise 18 CFR 
parts 341, 342, 343, and 346 to remove these provisions. The Commission 
is also proposing to revise 18 CFR parts 3, 357, 362, and 385. The 
goals of these proposed revisions are to clarify the Commission's 
regulations and bring them up to date.

I. Background

    Jurisdiction over oil pipelines, as it relates to the establishment 
of rates or charges for the transportation of oil by pipeline or to the 
establishment of valuations for pipelines, was transferred from the 
Interstate Commerce Commission (ICC) to the Commission pursuant to 
sections 306 and 402 of the Department of Energy Organization Act (DOE 
Act).1 At the time the DOE Act transferred jurisdiction over 
oil pipeline rates to the Commission, the regulations governing oil 
pipelines were located in the ICC's regulations at Title 49 of the Code 
of Federal Regulations (CFR). Initially, the Commission ordered that 
the regulations concerning oil pipelines remain in effect until 
modified by the Commission. In Order No. 119,2 the 
Commission started transferring some of the ICC's oil pipeline 
regulations from Title 49 of the Code of Federal Regulations to the 
Commission's regulations in Title 18. parts 357 3 and 362 
4 were among some of the Commission's current regulations 
that were adopted from this initial transfer. In Order No. 
225,5 the Commission adopted the ICC's rules pertaining to 
paper hearings called the ``modified procedure,'' currently codified at 
18 CFR sections 385.1404 through 385.1414, and to ex parte 
communications, presently located at 18 CFR 385.1415, from 49 CFR part 
1100. Also, pursuant to Order No. 225, the Commission moved all of its 
Rules of Practice and Procedure from 18 CFR part 1 to 18 CFR part 385. 
Notwithstanding some limited revisions, most of the provisions in parts 
357, 362, and 385 are the same as they were in Title 49.
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    \1\ Department of Energy Organization Act, 42 U.S.C. 7155 and 
7172(b) (1988).
    \2\ Regulation of Interstate Oil Pipelines, Order No. 119, 46 FR 
9043 (January 28, 1981), FERC Stats. & Regs. (Regulations Preambles, 
1977-1981) para. 30,226 (May 5, 1981).
    \3\ Part 357 addresses the annual special or periodic reports 
that carriers subject to Part I of the Interstate Commerce Act are 
required to file.
    \4\ Part 362 sets forth the various requirements for valuation.
    \5\ Revisions of Rules of Practice and Procedure to Expedite 
Trial-Type Hearings, Order No. 225, 47 FR 19014 (May 3, 1982), FERC 
Stats. & Regs. (Regulations Preambles, 1982-1985) para. 30,358 
(January 18, 1983).
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    The Energy Policy Act of 1992 (Act of 1992) required the Commission 
to promulgate new regulations to provide a simplified and generally 
applicable ratemaking methodology for oil pipelines, and to streamline 
its procedures in oil pipeline proceedings.6

[[Page 57082]]

Pursuant to Congress' directive in the Act of 1992, the Commission 
issued Order No. 561 7 and two companion rulemakings, Order 
Nos. 571 8 and 572.9 In Order No. 561, the 
Commission established a simplified and generally applicable way for 
oil pipelines to change their rates and also provided alternatives to 
this methodology. In Order No. 571, the Commission addressed a cost-of-
service rate filing alternative for oil pipelines. In Order No. 572, 
the Commission addressed market-based rates for oil pipelines. These 
rulemakings also included new rate filing requirements and procedural 
reforms to reflect the new ratemaking methodologies, and streamlined 
the Commission's internal processes for oil pipelines.
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    \6\ The Energy Policy Act of 1992 (Act of 1992) contemplated two 
rulemakings--one on ratemaking methodology and another on 
streamlined procedures--and established separate deadlines for their 
completion. Energy Policy Act of 1992 Pub. L. 102-46, Title XVIII, 
1801 to 1804, 106 Stat. 2776, 3010-3011 (codified as 42 U.S.C.A. 
7172 note (West Supp. 1995)).
    \7\ Revisions to Oil Pipeline Regulations pursuant to Energy 
Policy Act of 1992, Order No. 561, 58 FR 58753 (November 4, 1993), 
FERC Stats. & Regs. (Regulations Preambles, 1991-1996) para. 30,985 
(October 22, 1993), order on rehearing and clarification, Order No. 
561-A, 59 FR 40243 (August 8, 1994) FERC Stats. & Regs. (Regulations 
Preambles, 1991-1996) para. 31,000 (July 28, 1994).
    \8\ Cost-of-Service Reporting and Filing Requirements for Oil 
Pipelines, Order No. 571, 59 FR 59137 (November 16, 1994) FERC 
Stats. & Regs. (Regulations Preambles, 1991-1996) para. 31,006 
(October 28, 1994), order on hearing and clarification, Order No. 
571-A, 60 FR 356 (January 4, 1995) FERC Stats. & Regs. (Regulations 
Preambles, 1991-1996) para. 31,012 (December 28, 1994).
    \9\ Market-Based Ratemaking for Oil Pipelines, Order No. 572, 59 
FR 59148 (November 16, 1994), FERC Stats. & Regs. (Regulations 
Preambles, 1991-1996) para. 31,007 (October 28, 1994), order denying 
rehearing, Order No. 572-A, 69 FERC para. 61,412 (December 28, 
1994).
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    At the time the Commission adopted changes to its ratemaking 
methodologies and procedural requirements, it intended that its new 
regulations would supersede existing procedural rules that were in 
conflict and do away with those that were no longer necessary, such as 
those describing the modified procedure. The final rules, however, did 
not take steps to remove these outdated regulations. As a result, the 
current Commission regulations governing oil pipelines include both 
recent provisions adopted or modified pursuant to the Act of 1992 and 
conflicting regulations adopted from the ICC which have been superseded 
and thus are inconsistent. Consequently, the Commission is proposing to 
revise 18 CFR parts 341, 342, 343, and 346 to remove outdated and 
conflicting regulations. The Commission is also proposing to revise 18 
CFR parts 3, 357, 362, and 385 to conform them to the other proposed 
changes.

II. Public Reporting Burden

    The Commission believes that there will be no impact on the public 
reporting burden from the elimination of outdated and nonessential 
regulations, and the related modification of other regulations. Because 
the regulations being removed are outdated, they effectively ceased 
being a reporting burden years ago. As for the regulations being 
modified, they are simply clarifying, not augmenting, reporting 
requirements.

III. Discussion

A. Part 341

    Part 341 relates to the requirements for preparing, filing, and 
withdrawing oil pipeline tariffs. Section 341.6(3) pertains to the 
rules for partial adoption by a carrier of another carrier's tariffs. 
The Commission proposes to amend this section by removing duplicative 
language from the provision which now requires a carrier to state the 
effective date of an adoption notice twice in a tariff supplement 
required to be filed with the Commission.
    Section 341.7 addresses the requirements for concurrences. The 
Commission is proposing a modification of this section to specify the 
information that should be included in letters of transmittal 
accompanying the filing of a tariff publication containing a joint 
carrier. Under the proposed revision, letters of transmittal would be 
required to include the address, phone number, and contact for each 
joint carrier listed in the tariff publication. This is information 
that the Commission, as a routine matter, has required carriers to 
submit. Including it as part of the regulations will inform carriers 
that such information must be included with their filings and make it 
unnecessary for carriers to supplement their filings later.

B. Part 342

    Part 342 pertains to the methods that may be used to establish 
initial rates, or change existing rates. To be more specific, 
Sec. 342.3 discusses rate changes under the indexing methodology. 
Section 342.3(b)(1) currently provides:

    Carriers must specify in their letters of transmittal required 
in Sec. 341.2(c) of this chapter the rate schedule to be changed, 
the proposed new rate, the prior rate, and the applicable ceiling 
level for the movement. No other rate information is required to 
accompany the proposed rate change.

    Under the proposed revisions in this Notice of Proposed Rulemaking 
(NOPR), this section would require carriers filing for rate changes to 
also include the prior rate ceiling level, in addition to the other 
information specified, in their letters of transmittal. It is the 
Commission's position that including the prior ceiling level will 
provide necessary information for the calculation of the index ceiling 
levels.
    Section 342.3(b)(2) addresses the information required to be filed 
by carriers with their initial rate changes. It currently reads as 
follows:

    On March 31, 1995, or concurrently with its first indexed rate 
change filing made on or after January 1, 1995, whichever first 
occurs, carriers must file a verified copy of a schedule for 
calendar years 1993 and 1994 containing the information required by 
page 700 of the 1995 edition of FERC Form No. 6. If actual data are 
not available for calendar year 1994 when the rate change filing is 
made, the information for calendar year 1994 must be comprised of 
the most recently available actual data annualized for the year 
1994. A schedule containing the information comprised of actual data 
for calendar year 1994 must be filed not later than March 31, 1995. 
Thereafter, carriers must file page 700 as a part of their annual 
Form No. 6 filing.

    This section directs carriers to file schedules containing the 
information required by page 700 of the 1995 edition of FERC Form No. 
6. on March 31, 1995, or concomitantly with its first indexed rate 
change filing made on or after January 1, 1995, whichever occurs first. 
Because the one-time need for the requirements of this section has 
passed, the Commission proposes to delete it in its entirety.
    Section 342.3(d)(3) states that a carrier must compute its ceiling 
level each index year without regard to the rates filed pursuant to 
this section. In Kaneb and subsequent proceedings,10 the 
Commission explained that because there are numerous pipelines that 
file rates measured in hundredths of a cent, all ceiling level 
calculations for all pipelines should be rounded 11 to the 
nearest hundredth of a cent, i.e., to two decimal places. As this 
explanation applies to all calculations by all carriers under 
Sec. 342.3, the Commission proposes to add this explanation to the 
regulations to assist carriers in making accurate and complete filings.
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    \10\ Kaneb Pipeline Operating Partnership, L.P., 71 FERC para. 
61,409 (1995).
    \11\ If the third decimal place number is five or more, the 
second decimal number should be rounded up; if the third decimal 
place number is four or less, the second decimal place number should 
be rounded down. Kaneb Pipeline. 71 FERC para. 61,409 (1995), at p. 
62,617. n.6.
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C. Part 343

    Part 343 discusses procedural matters related to oil pipeline 
proceedings under part 342. Section 343.2 describes

[[Page 57083]]

the requirements for filing interventions, protests, and complaints. 
The Commission is proposing to correct Sec. 343.2(c)(4) so that it 
references paragraphs (c)(1), (2), or (3) within the section, rather 
than paragraphs (b)(1), (2), or (3) as at present.

D. Part 346

    Part 346 sets forth the filing requirements for oil pipelines that 
seek to establish cost-of-service rates as permitted under part 342. 
Section 346.2(c)(7) states in part: ``If the presently effective rates 
are not at the maximum ceiling rate established under Sec. 342.4(a) of 
this chapter, then gross revenues must also be computed and set forth 
as if the ceiling rates were effective for the 12 month period.'' Under 
the proposed revisions in this NOPR, Sec. 346.2(c)(7) would be revised 
to correctly reference Sec. 342.3, which is the section that sets forth 
the indexing methodology, rather than Sec. 342.4(a), which describes 
cost-of-service rates.

E. Part 357

    Part 357 concerns the annual special or periodic reports that 
carriers subject to Part I of the Interstate Commerce Act are required 
to file. Sec. 357.3(a), (b), and (c) discuss the filing requirements 
for FERC Form No. 73. In Order No. 561, the Commission stated that it 
would be the oil pipeline carriers' responsibility in the future to 
perform depreciation studies to establish revised depreciation rates 
for oil pipelines. The specific requirements for such studies were 
adopted as part 347 of the Commission's regulations in Order No. 571. 
Section 347.1(e)(5)(x) provides that a carrier must submit a Service 
Life Data Form (FERC Form No. 73) if the proposed depreciation rate 
adjustment is based on the remaining physical life of the properties. 
The Commission is proposing that Sec. 357.3(a) and (b), which address 
who must file FERC Form No. 73 and when the form must be submitted, be 
revised to include filings under Sec. 347.1(e)(5)(x). The Commission 
also proposes to revise Sec. 357.3(c) to update its mailing address.

F. Part 362

    Part 362 sets forth the various requirements for valuation. Part 
362 came into being as a result of Order No. 119,12 which 
transferred the ICC's valuation section, in addition to several other 
sections pertaining to oil pipelines, from its regulations located at 
Title 49 of the Code of Federal Regulations to the Commission's 
regulations at Title 18. In Opinion No. 154,13 the 
Commission intimated that it was considering abandoning the traditional 
ICC valuation formula; however, the Commission ultimately retained the 
valuation methodology. To the contrary, in Opinion No. 154-
B,14 the Commission adopted a methodology that is currently 
used in many oil pipeline rate cases. This new methodology is 
predicated on a trended original cost (TOC) rate base and it does not 
follow the ICC's historic valuation rate base. Because Opinion No. 154-
B rejects the valuation rate base methodology and thus eliminates the 
need for any valuation of oil pipelines, the filing of valuation 
reports as now required by part 362 is no longer necessary. As a 
result, the Commission is proposing to remove part 362 in its entirety 
from its regulations. Order No. 561 removed parts 360 and 361 
pertaining to reporting of data for valuation purposes. The proposal 
here would complete the task of removing unnecessary valuation 
regulations.
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    \12\ Regulation of Interstate Oil Pipelines, Order No. 119, 46 
FR 9043 (January 28, 1981), FERC Stats. & Regs. (Regulations 
Preambles, 1977-1981) para. 30,226 (May 5, 1981).
    \13\ Farmers Union Central Exchange, Inc. v. FERC, 734 F.2d 1486 
(D.C. Cir. 1984), cert. denied sub nom., Williams Pipeline Company 
v. Farmers Union Central Exchange, Inc., 105 S.Ct. 507 (1984). The 
Commissions's opinion appears at 21 FERC para. 61,260 (1982), 
rehearing denied, 21 FERC para. 61,086 (1983).
    \14\ Williams Pipeline Company, 31 FERC para. 61,377 (1985).
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G. Part 385

    Part 385 governs the Commission's rules of practice and procedure. 
Section 385.101(b)(3) excepts ICC rules from Part 385 in cases where 
regulations in the Commission's Rules of Practice and Procedure are 
inconsistent with ICC rules that were not replaced by a Commission rule 
or order. Because the Commission has promulgated and codified its own 
rules governing oil pipelines, this section has become unnecessary; 
therefore, the Commission proposes to remove this section from its 
Rules of Practice and Procedure. Section 385.102(a), which defines 
``decisional authority'' refers to authority or responsibility under 
``49 CFR Chapter X.'' As this is a reference to ICC regulations which 
have been replaced, the Commission proposes the removal of this 
section.
    Section 385.1403 discusses the filing requirements for protests to 
tariff filings. This section is inconsistent with, and has been 
superseded by, Sec. 343.3, which was adopted in Order No. 561. 
Accordingly, the Commission proposes to delete Sec. 385.1403 from the 
Commission's rules of practice and procedure.
    Penultimately, Secs. 385.1405 through 385.1414 set out the modified 
procedure rules for oil pipeline proceedings. Specifically, the 
Commission can order a proceeding to be heard under a modified 
procedure if it appears that substantially all important issues of fact 
may be resolved by means of written materials without an oral hearing. 
These rules were adopted from the ICC's procedural regulations, 49 CFR 
part 1100, pursuant to Order No. 225.15 The regulations 
concerning the modified procedure have been superseded by, and are in 
conflict with, procedures and filing requirements in parts 342, 343, 
346, and 347 adopted in Order Nos. 561, 571, and 572. The Commission 
will continue to use paper hearing procedures in individual cases where 
warranted. These procedures, however, are not used frequently enough to 
warrant continuing to include them in the regulations. Consequently, 
the Commission proposes to remove these regulations from the rules of 
practice and procedure. Since the Commission is proposing to remove the 
modified procedure rules, this NOPR is also proposing to remove 
Sec. 385.101(b)(4)(i) because it excepts Secs. 385.1404 through 1414 
from Part 385.
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    \15\ Revisions of Rules of Practice and Procedure to Expedite 
Trial-Type Hearings, Order No. 225, 47 FR 19014 (May 3, 1982), FERC 
Stats. & Regs. (Regulations Preambles, 1982-1985) ] 30,358 (January 
18, 1983).
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    Finally, some of the Commission's regulations still contain 
references to the now defunct Oil Pipeline Board. Section 385.102, the 
definitions section, contains Oil Pipeline Board references in 
paragraphs (a) and (e)(2). Part 3 pertains to organization, operation, 
information and requests. Section 385.502(a)(3), rules concerning the 
initiation of a hearing, contains an Oil Pipeline Board reference. 
Section 385.1902, rules for appealing staff action, also makes 
reference to the Oil Pipeline Board. Due to the fact that the 
Commission abolished the Oil Pipeline Board in Order No. 561, the 
Commission is proposing to revise the foregoing sections by removing 
all references to the Oil Pipeline Board.

IV. Environmental Analysis

    The Commission is required to prepare an Environmental Assessment 
or an Environmental Impact Statement for any action that may have a 
significant adverse effect on the human environment.16 The 
Commission has categorically excluded certain actions

[[Page 57084]]

from these requirements as not having a significant effect on the human 
environment.17 The action proposed here is procedural in 
nature and therefore falls within the categorical exclusions provided 
in the Commission's regulations.18 Therefore, neither an 
Environmental Impact Statement nor an Environmental Assessment is 
necessary and will not be prepared in this rulemaking.
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    \16\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act, 52 FR 47897 (December 17, 1987), FERC 
Stats. & Regs. (Regulations Preambles, 1986-1990) para. 30,783 
(1987).
    \17\ 18 CFR 380.4 (1998).
    \18\ 18 CFR 380.4(a)(2)(ii)(1998).
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V. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act 19 generally requires the 
Commission to describe the impact that a proposed rule would have on 
small entities or to certify that the rule will not have a significant 
economic impact on a substantial number of small entities. The 
Commission certifies that promulgating this rule does not represent a 
major federal action having a significant economic impact on a 
substantial number of small entities. Therefore, no regulatory 
flexibility analysis is required.
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    \19\ 5 U.S.C. 601-612 (1988).
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VI. Information Collection Statement

    Office of Management and Budget (OMB) regulations 20 
require that OMB approve certain information collection requirements 
imposed by agency rule. Since this rule does not impose new regulations 
and has no impact on current information collections, there is no need 
to obtain OMB approval as to the deletion and modification of these 
regulations. Nevertheless, the Commission is submitting a copy of the 
proposed rule to the OMB for informational purposes. Interested persons 
may obtain information on these reporting requirements by contacting 
the Federal Energy Regulatory Commission, 888 First Street, NE, 
Washington, DC 20426 (Attention Michael Miller, Office of the Chief 
Information Officer, (202) 208-1415). Comments on the requirements of 
this rule can be sent to the Office of Information and Regulatory 
Affairs of OMB (Attention: Desk Officer for Federal Energy Regulatory 
Commission), 725 17th Street, NW, Washington, DC 20503, Phone: (202) 
395-3087 Fax: (202) 395-5167.
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    \20\ 5 CFR part 1320 (1998).
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VII. Comment Procedures

    Copies of this notice of proposed rulemaking can be obtained from 
the Public Reference and Files Maintenance Branch, Room 2-A, 888 First 
Street, NE, Washington, DC 20426. Any person desiring to file comments 
should submit an original and fourteen (14) copies of such comments to 
the Federal Energy Regulatory Commission, 888 First Street, NE, 
Washington, DC 20426, not later than November 25, 1998.
    All written comments will be placed in the Commission's public 
files and will be available for public inspection in the Commission's 
Public Reference Room at 888 First Street, NE, Washington, DC 20426, 
during regular business hours.

List of Subjects

18 CFR Part 3

    Organization and functions (Government agencies).

18 CFR Part 341

    Maritime carriers, Pipelines, Reporting and recordkeeping 
requirements.

18 CFR Part 342

    Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 343

    Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 346

    Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 357

    Pipelines, Reporting and recordkeeping requirements, Uniform System 
of Accounts.

18 CFR Part 362

    Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 385

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

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

    In consideration of the foregoing, the Commission proposes to amend 
parts 3, 341, 342, 343, 346, 357, 362, and 385, Chapter I, Title 18, 
Code of Federal Regulations, as set forth below.

PART 3--ORGANIZATION; OPERATION; INFORMATION AND REQUESTS

    1. The authority citation for part 3 continues to read as follows:

    Authority: Department of Energy Organization Act, 42 U.S.C. 
7101-7352 (1982); E.O. 12009, 3 CFR 1978 Comp., p. 142 (1978); 
Administrative Procedure Act, 5 U.S.C. 551-557 (1982); Natural Gas 
Act, 15 U.S.C. 717-717z (1982); Federal Power Act, 16 U.S.C. 791a-
828c (1982); Natural Gas Policy Act, 15 U.S.C. 3301-3432 (1982); 
Public Utility Regulatory Policies Act, 16 U.S.C. 2601-2645 (1982); 
Interstate Commerce Act, 49 U.S.C. 1-27 (1976); Freedom of 
Information Act, 5 U.S.C. 552 (1982) as amended by Freedom of 
Information Reform Act of 1986.


Sec. 3.4  [Removed and Reserved]

    2. Section 3.4 is removed and reserved.

PART 341--OIL PIPELINE TARIFFS: OIL PIPELINE COMPANIES SUBJECT TO 
SECTION 6 OF THE INTERSTATE COMMERCE ACT

    3. The authority citation for Part 341 continues to read as 
follows:

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

    4. Section 341.6 is amended by revising paragraph (d)(3) to read as 
follows:


Sec. 341.6  Adoption Rule.

* * * * *
    (d) * * *
    (3) The former owner must immediately file a consecutively numbered 
supplement to each of its tariffs covered by the adoption notice, 
reading as follows:

    Effective [date of adoption notice] this tariff became the 
tariff of [legal name of adopting carrier] for transportation 
movements [identify origin and destination points], as per its 
adoption notice FERC No. [number].
* * * * *
    5. Section 341.7 is revised to read as follows:


Sec. 341.7  Concurrences.

    Concurrences must be maintained at carriers' offices and produced 
upon request. Cancellations or changes to concurrences affecting FERC 
Tariffs must be shown in those tariffs. Carriers must provide to the 
Commission, in the letter of transmittal accompanying the filing of a 
tariff publication containing a joint carrier, the address, phone 
number, and a contact for each joint carrier listed in the tariff 
publication.

PART 342--OIL PIPELINE RATE METHODOLOGIES AND PROCEDURES

    6. The authority citation for part 342 continues to read as 
follows:

    Authority: 5 U.S.C. 571-583; 42 U.S.C. 7101-7532; 49 U.S.C. 
60502; 49 App. U.S.C. 1-85.

    7. Section 342.3 is amended by removing paragraph (b)(2), 
redesignating

[[Page 57085]]

paragraph (b)(1) as paragraph (b), and revising redesignated paragraph 
(b) and paragraph (d)(3) to read as follows:


Sec. 342.3  Indexing.

* * * * *
    (b) Information required to be filed with rate changes. The carrier 
must comply with part 341 of this chapter. Carriers must specify in 
their letters of transmittal required in Sec. 341.2(c) of this chapter 
the rate schedule to be changed, the proposed new rate, the prior rate, 
the prior ceiling level, and the applicable ceiling level for the 
movement. No other rate information is required to accompany the 
proposed rate change.
    (c) * * *
    (d) * * *
    (3) A carrier must compute the ceiling level each index year 
without regard to the actual rates filed pursuant to this section. All 
carriers must round their ceiling levels each index year to the nearest 
hundredth of a cent.
* * * * *

PART 343--PROCEDURAL RULES APPLICABLE TO OIL PIPELINE PROCEEDINGS

    8. The authority citation for part 343 continues to read as 
follows:

    Authority: 5 U.S.C. 571-583; 42 U.S.C. 7101-7352; 49 U.S.C. 
60502; 49 App. U.S.C. 1-85.

    9. Section 343.2 is amended by revising paragraph (c)(4) to read as 
follows:


Sec. 343.2  Requirements for filing interventions, protests and 
complaints.

* * * * *
    (c) * * *
    (4) A protest or complaint that does not meet the requirements of 
paragraphs (c)(1), (c)(2), or (c)(3) of this section, whichever is 
applicable, will be dismissed.

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

    10. The authority citation for part 346 continues to read as 
follows:

    Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C. 
1-85.

    11. Section 346.2 is amended by revising paragraph (c)(7) to read 
as follows:


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

* * * * *
    (c) * * *
    (7) Statement G--revenues. This statement must set forth the gross 
revenues for the actual 12 months of experience as computed under both 
the presently effective rates and the proposed rates. If the presently 
effective rates are not at the maximum ceiling rate established under 
Sec. 342.3 of this chapter, then gross revenues must also be computed 
and set forth as if the ceiling rates were effective for the 12 month 
period.

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

    12. The authority citation for part 357 continues to read as 
follows:

    Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C. 
1-85.

    13. Section 357.3 is revised to read as follows:


Sec. 357.3  FERC Form No. 73, oil pipeline data for depreciation 
analysis.

    (a) Who must file. Any oil pipeline company requesting new or 
changed depreciation rates pursuant to part 347 of this chapter if the 
proposed depreciation rates are based on the remaining physical life of 
the properties or if directed by the Commission to file service life 
data during an investigation of its book depreciation rates.
    (b) When to submit. Service life data is reported to the Commission 
by an oil pipeline company, as necessary, concurrently with a filing 
made pursuant to part 347 of this chapter and as directed during a 
depreciation rate investigation.
    (c) What to submit. The format and data which must be submitted are 
prescribed in FERC Form No. 73, Oil Pipeline Data for Depreciation 
Analysis, available for review at the Commission's Public Reference 
Section, Room 2A, 888 First Street, NE, Washington, D.C. 20426.

PART 362--[REMOVED AND RESERVED]

    14. Part 362 is removed in its entirety and reserved.

PART 385--RULES OF PRACTICE AND PROCEDURE

    15. 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. 1-85.


Sec. 385.101  [Amended]

    16. Section 385.101 is amended by removing paragraphs (b)(3) and 
(b)(4)(i), and redesignating paragraph (b)(4)(ii) as paragraph (b)(3).
    17. Section 385.102 is amended by revising paragraphs (a) and 
(e)(2) to read as follows:


Sec. 385.102  Definitions (Rule 102).

    (a) Decisional authority means the Commission or Commission 
employee that at the time for decision on a question, has authority or 
responsibility under this chapter to decide that particular question.
* * * * *
    (e) * * *
    (2) With respect to any proceeding not set for hearing under 
subpart E of this part, any employee designated by rule or order to 
conduct the proceeding.
* * * * *
    18. Section 385.502 is amended by removing paragraph (a)(3) and 
revising paragraph (a)(1) to read as follows:


Sec. 385.502  Initiation of hearing (Rule 502).

    (a) * * *
    (1) Order of the Commission; or
* * * * *
    19. Sections 385.1403 and 385.1405 through 385.1414 are removed and 
sections 385.1404 and 385.1415 are redesignated paragraphs 385.1403 and 
385.1404.
    20. Section 385.1902 is amended by removing paragraph (b), 
redesignating paragraph (c) as paragraph (b), and revising paragraph 
(a) to read as follows:


Sec. 385.1902  Appeals from action of staff (Rule 1902).

    (a) Any staff action (other than a decision or ruling of presiding 
officer, as defined in Rule 102(e)(1), made in a proceeding set for 
hearing under subpart E of this part) taken pursuant to authority 
delegated to the staff by the Commission is a final agency action that 
is subject to a request for rehearing under Rule 713 (request for 
rehearing).
* * * * *
[FR Doc. 98-28545 Filed 10-23-98; 8:45 am]
BILLING CODE 6717-01-P