[Federal Register Volume 64, Number 68 (Friday, April 9, 1999)]
[Rules and Regulations]
[Pages 17276-17279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8691]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 284

[Docket No. RM96-1-011; Order No. 587-K]


Standards For Business Practices Of Interstate Natural Gas 
Pipelines

Issued April 2, 1999.

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final Rule.

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SUMMARY: The Federal Energy Regulatory Commission is amending its 
regulations to incorporate by reference the most recent version of the 
standards, Version 1.3 promulgated July 31, 1998, by the Gas Industry 
Standards Board (GISB). These standards establish rules for conducting 
business practices and electronic communication with interstate natural 
gas pipelines.

DATES: Effective Date: The rule is effective May 10, 1999. The 
incorporation by reference of the publication listed in the rule is 
approved by the Director of the Federal Register of May 10, 1999.
    Implementation Date: Pipelines must implement the regulations 
adopted in this rule by August 1, 1999.

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

FOR FURTHER INFORMATION CONTACT:
Michael Goldenberg, Office of the General Counsel, Federal Energy 
Regulatory Commission. 888 First Street, NE., Washington, DC 20426, 
(202) 208-2294.
Marvin Rosenberg, Office of Economic Policy, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, (202) 208-
1283.
Kay Morice, Office of Pipeline Regulation, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, (202) 208-
0507.

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.

    Before Commissioners: James J. Hoecker, Chairman; William L. 
Massey, Linda Breathitt, and Curt Hebert, Jr.

    The Federal Energy Regulatory Commission (Commission) is amending 
Sec. 284.10 of its regulations to incorporate by reference the most 
recent version, Version 1.3, of the consensus industry standards, 
promulgated by the Gas Industry Standards Board (GISB). The GISB 
standards establish uniform principles for conducting business and 
electronic communications with interstate natural gas pipelines.

I. Background

    In Order Nos. 587, 587-B, 587-C, 587-G, 587-H, and 587-I \1\ the 
Commission adopted regulations to standardize the business practices 
and communication methodologies of interstate pipelines in order to 
create a more integrated and efficient pipeline grid. In those orders, 
the Commission incorporated by reference consensus standards developed 
by GISB, a private, consensus standards developer composed of members 
from all segments of the natural gas industry.
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    \1\ Standards For Business Practices Of Interstate Natural Gas 
Pipelines, Order No. 587, 61 FR 39053 (Jul. 26, 1996), III FERC 
Stats. & Regs. Regulations Preambles para. 31,038 (Jul. 17, 1996), 
Order No. 587-B, 62 FR 5521 (Feb. 6, 1997), III FERC Stats. & Regs. 
Regulations Preambles para. 31,046 (Jan. 30, 1997), Order No. 587-C, 
62 FR 10684 (Mar. 10, 1997), III FERC Stats. & Regs. Regulations 
Preambles para. 31,050 (Mar. 4, 1997), Order No. 587-G, 63 FR 20072 
(Apr. 23, 1998), III FERC Stats. & Regs. Regulations Preambles para. 
31,062 (Apr. 16, 1998), Order No. 587-H, 63 FR 39509 (July 23, 
1998), III FERC Stats. & Regs. Regulations Preambles para. 31,063 
(July 15, 1998); Order No. 587-I, 63 FR 53565 (Oct. 6, 1998), III 
FERC Stats. & Regs. Regulations Preambles para. 31,067 (Sept. 29, 
1998).
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    On November 9, 1998, GISB filed with the Commission Version 1.3 of 
its standards. On December 17, 1998, the Commission issued a Notice of 
Proposed Rulemaking (NOPR) proposing to incorporate by reference 
Version 1.3 of the GISB standards. Comments were due by January 22, 
1999. Comments were filed by Williston Basin Interstate Pipeline 
Company (Williston Basin) and, collectively, Process Gas Consumers, 
American Iron and Steel Institute, and Georgia Industrial Group (PGC, 
et al.).

[[Page 17277]]

II. Discussion

    The Commission is adopting Version 1.3 of GISB's consensus 
standards with an implementation date on the first day of the month 
occurring 90 days after publication of the final rule in the Federal 
Register. Version 1.3 of the GISB standards updates and improves the 
standards, with the principal changes occurring in the areas of 
confirmation practices, further standardization of the information 
provided on pipeline Internet web sites, and revisions to the data 
sets.2 Commission adoption of these standards will keep the 
Commission regulations current.
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    \2\ The following reflects the changes from the Version 1.2 
standards previously adopted by the Commission. The list does not 
include the intra-day nomination standards that already were adopted 
in Order No. 587-H. Revised standards are: 1.3.3, 1.3.14, 1.3.24, 
1.3.27, 2.3.9, 2.3.16, 2.3.20, and 4.3.16. New standards are: 1.3.35 
through 1.3.38, 1.3.45, 1.3.46, 3.3.22, 4.1.16 through 4.1.21, 4.2.1 
through 4.2.8, and 4.3.17 through 4.3.35. Revised data sets are: 
1.4.1 through 1.4.6, 2.4.1 through 2.4.6, 3.4.1 through 3.4.3, 5.4.1 
through 5.4.9, 5.4.11 through 5.4.13, 5.4.16, and 5.4.17. New data 
sets are: 1.4.7 and 3.4.4.
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    GISB approved the standards under its consensus 
procedures.3 As the Commission found in Order No. 587, 
adoption of consensus standards is appropriate because the consensus 
process helps ensure the reasonableness of the standards by requiring 
that the standards draw support from a broad spectrum of all segments 
of the industry. Moreover, since the industry itself has to conduct 
business under these standards, the Commission's regulations should 
reflect those standards that have the widest possible support. In 
Sec. 12(d) of the National Technology Transfer and Advancement Act 
(NTT&AA) of 1995, Congress affirmatively requires federal agencies to 
use technical standards developed by voluntary consensus standards 
organizations, like GISB, as means to carry out policy objectives or 
activities.4
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    \3\ This process first requires a super-majority vote of 17 out 
of 25 members of GISB's Executive Committee with support from at 
least two members from each of the five industry segments--
interstate pipelines, local distribution companies, gas producers, 
end-users, and services (including marketers and computer service 
providers). For final approval, 67% of GISB's general membership 
must ratify the standards.
    \4\ Pub L. No. 104-113, Sec. 12(d), 110 Stat. 775 (1996), 15 
U.S.C. 272 note (1997).
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    Because the Version 1.3 standards include the nomination and intra-
day nomination standards adopted by the Commission in Order No. 587-H, 
separate reference to these standards in the regulations is no longer 
necessary and will be removed. The Commission also is continuing its 
previous practice by not incorporating standards 2.3.29 dealing with 
operational balancing agreements (OBAs), 2.3.30 dealing with netting 
and trading of imbalances, and 4.3.4 dealing with retention of 
electronic data. The Commission has issued its own regulations in these 
areas,5 so that incorporation of the GISB standards is 
unnecessary and may cause confusion as to the applicable Commission 
requirements.
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    \5\ 18 CFR 284.10(c)(2)(i) (OBAs), (c)(2)(ii) (netting and 
trading of imbalances), and (c)(3)(v) (record retention).
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    In its comments, Williston Basin does not object to the adoption of 
Version 1.3 of the standards. It suggests, however, that the Commission 
defer implementation of any future GISB standards until three months 
following the completion of the pipelines' transition to Internet 
communication by June 1, 2000. Williston Basin states that, as a 
relatively small interstate pipeline, it would have difficulty 
implementing any additional standards at the same time as it completes 
its transition to Internet communication and resolves any Year 2000 
computer problems.
    The Commission cannot, at this time, anticipate when it will 
require pipelines to implement additional standards developed by GISB. 
That will depend in part on GISB's schedule for revising its standards 
and the importance to the industry of the additional standards. For 
example, GISB still has not completed development of standards 
necessary to implement imbalance trading, which the Commission required 
in Order No. 587-G.
    PGC, et al. object to the Commission's policy of not making copies 
of the standards available to the public for copying, leaving the 
public to obtain copies from GISB. They contend that if the Commission 
is requiring adherence to the standards, the Commission must make those 
standards available to the public for copying. The Commission 
previously responded to this contention in Order No. 587-A, explaining 
that when dealing with copyrighted material, the appropriate, and 
required, method for adoption is to incorporate the material by 
reference with the material being available from the 
source.6 When the NOPR was issued, the standards were 
publicly available from GISB, and PGC, et al. do not contend that they 
encountered difficulty in obtaining them.
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    \6\ Order No. 587-A, 61 FR 55208, 55212-13 (Oct. 25, 1996), 77 
FERC para. 61,061, at 61,232-33 (Oct. 21, 1996). See 5 U.S.C. 552 
(a)(1) and (a)(3) (documents incorporated by reference need not be 
published in the Federal Register or provided by the agency); 1 CFR 
51 (1998) (standards for approval of incorporation by reference).
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III. Implementation Schedule

    Pipelines are required to implement this rule August 1, 1999. 
Pipelines must file revised tariff sheets to conform their tariffs to 
Version 1.3 of the standards not more than 60 and not less than 30 days 
prior to the implementation date.

IV. Notice of Proposed Use of Standards

    Office of Management and Budget Circular A-119 (Sec. 11) (February 
10, 1998) provides that, when a federal agency is issuing or revising a 
regulation that contains a standard, the agency must publish a 
statement in the preamble of a final rule identifying whether a 
voluntary consensus standard or a government-unique standard is being 
proposed. In this rule, the Commission is adopting Version 1.3 (July 
31, 1998) of the voluntary consensus standards developed by GISB.

V. Information Collection Statement

    OMB's regulations in 5 CFR 1320.11 require that it approve certain 
reporting and recordkeeping requirements (collections of information) 
imposed by an agency. Upon approval of a collection of information, OMB 
shall assign an OMB control number and an expiration date. Respondents 
subject to the filing requirements of this Rule shall not be penalized 
for failing to respond to these collections of information unless the 
collections of information display valid OMB control numbers.
    The collections of information related to the subject Final Rule 
fall under the existing reporting requirements of: FERC-545, Gas 
Pipeline Rates: Rate Change (Non-Formal) (OMB Control No. 1902-0154) 
and FERC-549C, Standards for Business Practices of Interstate Natural 
Gas Pipelines (OMB Control No. 1902-0174). The following burden 
estimates are related only to this rule and include the costs of 
complying with GISB's version 1.3 standards. The burden estimates are 
primarily related to start-up for implementing the latest version of 
the standards and data sets and will not be on-going costs.
    Public Reporting Burden:

[[Page 17278]]



                                             Estimated Annual Burden
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                                                                      No. of
                 Data collection                      No. of       responses per     Hrs. per      Total no. of
                                                    respondents     respondent       response          hrs.
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FERC-545........................................              93               1              38           3,534
FERC-549C.......................................              93               1           2,610         242,730
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    The total annual hours for collection (including recordkeeping) are 
estimated to be 246,264. The average annualized cost per respondent is 
projected to be the following:

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                                             FERC-545        FERC-549C
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Annualized Capital/Startup Costs........          $2,008        $137,888
Annualized Costs (Operations &                         0               0
 Maintenance)...........................
                                         -------------------------------
    Total Annualized Costs..............           2,008         137,888
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    The Commission received no comments on the burden estimates and is 
submitting a copy of this Final Rule to OMB for information purposes 
because the Final Rule is not significantly different from the NOPR and 
OMB has not provided any comments on the NOPR.
    The Commission regulations adopted in this order are necessary to 
further the process begun in Order No. 587 of standardizing business 
practices and electronic communications with interstate pipelines. 
Adoption of these regulations will update the Commission's regulations 
relating to business practices and communication protocols to conform 
to the latest version, Version 1.3, approved by GISB.
    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 information required 
in this Final Rule will be reported directly to the industry users and 
later be subject to audit by the Commission. This information also will 
be retained for a three year period. The implementation of these data 
requirements will help the Commission carry out its responsibilities 
under the Natural Gas Act and conforms to the Commission's plan for 
efficient information collection, communication, and management within 
the natural gas industry.
    Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street, N.E., Washington, D.C. 20426 [Attention: 
Michael Miller, Office of the Chief Information Officer, phone (202) 
208-1415, fax (202) 208-2425, E-mail [email protected]]; or the 
Office of Management and Budget [Attention: Desk Officer for the 
Federal Energy Regulatory Commission, phone 202-395-3087, fax (202) 
395-7285].

VI. 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.7 The 
Commission has categorically excluded certain actions from these 
requirements as not having a significant effect on the human 
environment.8 The actions proposed to be taken here fall 
within categorical exclusions in the Commission's regulations for rules 
that are clarifying, corrective, or procedural, for information 
gathering, analysis, and dissemination, and for sales, exchange, and 
transportation of natural gas that requires no construction of 
facilities.9 Therefore, an environmental assessment is 
unnecessary and has not been prepared in this rulemaking.
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    \7\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & 
Regs. Preambles 1986-1990 para. 30,783 (1987).
    \8\ 18 CFR 380.4.
    \9\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
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VII. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act of 1980 (RFA)10 generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
The regulations adopted in this rule would impose requirements only on 
interstate pipelines, which are not small businesses, and, these 
requirements are, in fact, designed to reduce the difficulty of dealing 
with pipelines by all customers, including small businesses. 
Accordingly, pursuant to Sec. 605(b) of the RFA, the Commission hereby 
certifies that the regulations adopted herein will not have a 
significant adverse impact on a substantial number of small entities.
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    \10\ 5 U.S.C. 601-612.
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VIII. Effective Date

    These regulations will become effective May 10, 1999. The 
Commission has concluded, with the concurrence of the Administrator of 
the Office of Information and Regulatory Affairs of OMB, that this rule 
is not a ``major rule'' as defined in section 251 of the Small Business 
Regulatory Enforcement Fairness Act of 1996.

List of Subjects in 18 CFR Part 284

    Continental shelf, Incorporation by reference, Natural gas, 
Reporting and recordkeeping requirements.

    By the Commission.
Linwood A. Watson, Jr.,
Acting Secretary.

    In consideration of the foregoing, the Commission amends Part 284, 
Chapter I, Title 18, Code of Federal Regulations, as set forth below.

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

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

    Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7532; 
43 U.S.C. 1331-1356.

    2. In section 284.10, paragraphs (b)(1)(i) through (v) are revised 
to read as follows:


Sec. 284.10  Standards for pipeline business operations and 
communications.

* * * * *
    (b) * * *
    (1) * * *
    (i) Nominations Related Standards (Version 1.3, July 31, 1998);

[[Page 17279]]

    (ii) Flowing Gas Related Standards (Version 1.3, July 31, 1998) 
with the exception of Standards 2.3.29 and 2.3.30;
    (iii) Invoicing Related Standards (Version 1.3, July 31, 1998);
    (iv) Electronic Delivery Mechanism Related Standards (Version 1.3, 
July 31, 1998) with the exception of Standard 4.3.4; and
    (v) Capacity Release Related Standards (Version 1.3, July 31, 
1998).
* * * * *
[FR Doc. 99-8691 Filed 4-8-99; 8:45 am]
BILLING CODE 6717-01-P