[Federal Register Volume 64, Number 157 (Monday, August 16, 1999)]
[Rules and Regulations]
[Pages 44400-44405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20574]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

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

[Docket No. RM99-1-000; Order No. 606]


Revisions to Oil Pipeline Regulations

Issued August 4, 1999.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
revising its regulations governing oil pipelines. The regulations to be 
modified or deleted are located in 18 CFR Parts 3, 341, 342, 343, 346, 
357, 362, and 385. These revisions are intended to clarify the 
Commission's regulations and bring them up to date.

EFFECTIVE DATE: The regulations are effective September 15, 1999.

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

FOR FURTHER INFORMATION CONTACT: Travis R. Smith, Office of the General 
Counsel, Federal Energy Regulatory Commission, 888 First Street, N.E., 
Washington, D.C. 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, N.E., Room 2A, Washington, D.C. 20426.
    The Commission Issuance Posting System (CIPS) provides access to 
the texts of formal documents issued by the Commission from November 
14, 1994, to the present. CIPS can be accessed via Internet through 
FERC's Home Page (http://www.ferc.fed.us) using the CIPS Link or the 
Energy Information Online icon. Documents will be available on CIPS in 
ASCII and WordPerfect 6.1 format. 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 Home Page 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, N.E., Washington, D.C. 20426.

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

I. Introduction

    The Federal Energy Regulatory Commission (Commission) is revising 
its regulations governing oil pipelines at 18 CFR Parts 341, 342, 343, 
and 346 to remove various provisions that are either outdated or in 
conflict with other oil pipeline regulations. The goals of these 
revisions are to clarify the Commission's regulations and bring them up 
to date. The Commission is also revising 18 CFR Parts 3, 357, 362, and 
385 to conform to the other changes adopted here.

II. 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 are among some of the Commission's current regulations 
that

[[Page 44401]]

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 
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 18 CFR 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 (Jan. 28, 1981), FERC Stats. & Regs. (Regulations Preambles, 
1977-1981) para. 30,226 (Dec. 19, 1980).
    \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\ 18 CFR 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 (Apr. 
28, 1982).
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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 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 index-methodology 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. No. 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 (Nov. 4, 1993), FERC 
Stats. & Regs. (Regulations Preambles, 1991-1996) para. 30,985 (Oct. 
22, 1993), order on rehearing and clarification, Order No. 561-A, 59 
FR 40243 (Aug. 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 (Nov. 16, 1994) FERC Stats. & 
Regs. (Regulations Preambles, 1991-1996) para. 31,006 (Oct. 28, 
1994), order on rehearing and clarification, Order No. 571-A, 60 FR 
356 (Jan. 4, 1995) FERC Stats. & Regs. (Regulations Preambles, 1991-
1996) para. 31,012 (Dec. 28, 1994).
    \9\ Market-Based Ratemaking for Oil Pipelines, Order No. 572, 59 
FR 59148 (Nov. 16, 1994), FERC Stats. & Regs. (Regulations 
Preambles, 1991-1996) para. 31,007 (Oct. 28, 1994), order denying 
rehearing, Order No. 572-A, 69 FERC para. 61,412 (Dec. 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, unutilized, or are inconsistent.
    On October 20, 1998, the Commission issued a Notice of Proposed 
Rulemaking in Docket No. RM99-1-000.10 The Commission 
received comments from the Association of Oil Pipelines (AOPL).
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    \10\ Revisions to Oil Pipeline Regulations, 63 FR 57081 (Oct. 
26, 1998), IV FERC Stats. & Regs. para. 32,537 (Oct. 20 1998).
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III. 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.

IV. 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. 
In the NOPR, the Commission proposed to amend this section by removing 
duplicative language from the provision that 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. The Commission did 
not receive any adverse comments in response to this proposal, so the 
Commission will implement this modification in its final rule.
    Section 341.7 addresses the requirements for concurrences. The 
Commission proposed to modify 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. The Commission 
concluded that 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.
    AOPL supports the Commission's proposal to include the foregoing 
information concerning joint carriers in the transmittal letter for a 
joint tariff. However, AOPL contends that the better place for this 
requirement is in the Commission's regulations on transmittal letters 
in section 341.2(c)(1).
    The Commission will adopt the proposed modifications and revise 
section 341.2(c)(1), not section 341.7, as recommended by AOPL. While 
section 341.2(c)(1) is not a perfect fit, since the modification 
involves information requirements for transmittal letters concerning 
joint carriers, and section 341.2(c)(1) pertains to general information 
requirements for transmittal letters, it appears to be more appropriate 
to include it there, rather than in the section on concurrences.

B. Part 342

    Part 342 pertains to the methods that may be used to establish 
initial rates, or change existing rates. Section 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 revisions proposed in the NOPR, this section would 
require carriers filing for rate changes to include the prior rate 
ceiling level, in addition to the other information specified, in their 
letters of transmittal. 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

[[Page 44402]]

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 proposed 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 Pipeline Operating Partnership, 
L.P.,11 and subsequent proceedings, 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 12 to the nearest hundredth of a cent. As 
this explanation applies to all calculations by all carriers under 
section 342.3, the NOPR proposed to add this explanation to the 
regulations to assist carriers in making accurate and complete filings.
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    \11\ Kaneb Pipeline Operating Partnership, L.P., 71 FERC para. 
61,409 (1995).
    \12\ 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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    AOPL considers the proposed changes to be positive ones for the oil 
industry. AOPL also suggests including in the regulation an example 
demonstrating how the rounding works. At the very least, AOPL requests 
that the Commission include a more detailed explanation of the rounding 
process.
    The Commission will adopt the modification to section 342.3 in the 
final rule as proposed in the NOPR. The regulations as revised will 
include a thorough explanation for pipelines to use in calculating 
their ceiling levels. Adding further material would add unnecessary 
detail to the regulations. Oil pipelines have been calculating their 
ceiling levels for a number of years under the current regulations, and 
have done so successfully. The material added here will address the 
area where pipelines, for the most part, have miscalculated. No 
pipelines considered it necessary to file comments on the proposal, so 
the revision adopted here should prove satisfactory.

C. Part 343

    Part 343 discusses procedural matters related to oil pipeline 
proceedings under part 342. Section 343.2 describes the requirements 
for filing interventions, protests, and complaints. The Commission will 
adopt the NOPR's proposal to correct section 343(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.'' The 
Commission will adopt the proposed revisions to section 346.2(c)(7) to 
correctly reference section 342.3, which is the section that sets forth 
the indexing methodology, rather than section 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. Sections 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 proposed that section 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 section 347.1(e)(5)(x). 
The Commission also proposed to revise section 357.3(c) to update its 
mailing address. AOPL considers the proposed changes to be an 
appropriate clarification and the Commission will adopt them.
    AOPL has pointed out that section 357.3(b), as proposed in the 
NOPR, contains a clerical error. The proposed section read as follows:

    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. (emphasis added)

AOPL correctly noted that the word ``and'' should really be the word 
``or.'' Accordingly, for the final rule, the Commission will adopt the 
proposal and will supplant the word ``and'' with the word ``or.''

F. Part 362

    Part 362 sets forth the various requirements for valuation. Part 
362 came into being as a result of Order No. 119,13 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. 154,14 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,15 the Commission adopted a methodology that is currently 
used in 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 proposed to remove Part 362 from its regulations. Order No. 
561 removed Parts 360 and 361 pertaining to reporting of data for 
valuation purposes. The proposal in the NOPR would complete the task of 
removing unnecessary valuation regulations.
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    \13\ Regulation of Interstate Oil Pipelines, Order No. 119, 46 
FR 9043 (Jan. 28, 1981), FERC Stats. & Regs. (Regulations Preambles, 
1977-1981) para. 30,226 (Dec. 19, 1980).
    \14\ 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), reh'g 
denied, 21 FERC para. 61,086 (1983).
    \15\ Williams Pipeline Company, 31 FERC para. 61,377 (1985).
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    AOPL welcomes removal of the rules on valuation, considering it to 
be long

[[Page 44403]]

overdue. The Commission will adopt the proposed changes.

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 proposed 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 proposed 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, section 343.3, which was adopted in Order No. 561. 
Accordingly, the Commission proposed to delete section 385.1403 from 
the Commission's Rules of Practice and Procedure.
    Sections 385.1405 through 385.1414 set out the modified procedure 
rules for oil pipeline proceedings. These rules provide that 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 
1100, pursuant to Order No. 225.16 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. Therefore, the 
Commission proposed in the NOPR to remove them. The Commission stated 
it would continue to use paper hearing procedures in individual cases 
where warranted, but that these procedures are not used frequently 
enough to warrant continuing to include them in the regulations. Since 
the Commission proposed to remove the modified procedure rules, the 
NOPR also proposed to remove section 385.101(b)(4)(I) because it 
excepts sections 385.1404 through 1414 from Part 385.
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    \16\ 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 (Apr. 
28, 1982).
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    AOPL objects to the removal of the modified procedure provisions. 
AOPL contends that inclusion of the rules, even if only used 
occasionally, may be of benefit to parties and the Commission in 
rapidly resolving a dispute. AOPL claims that although the Commission 
could still order paper hearings when necessary, the Commission would 
be less likely to do so without a clearly defined template already in 
place that sets out the rights and obligations of the parties in 
conducting such a proceeding. AOPL also argues that a paper hearing 
could prove beneficial to quickly resolving a complaint proceeding that 
is clear as to the issue in dispute, but unclear as to an appropriate 
resolution.
    The Commission's modified procedure provisions have become outdated 
as the result of changes to the Commission's procedural regulations 
that specify resolution paths to be followed in particular instances. 
For example, the regulations at section 343.5 provide that the 
Commission may require parties to enter into good faith negotiations to 
settle oil pipeline rate matters and specify that the Commission will 
refer all protested rate filings to a settlement judge for recommended 
resolution. The Commission also has adopted new complaint procedures 
designed to encourage and support consensual resolution of complaints 
and otherwise ensure that complaints are resolved in a timely and fair 
manner. Thus, AOPL's concerns about there being in place procedures 
that recognize the rights and obligations of parties in large part have 
already been addressed. For those few instances where a proceeding may 
not fit neatly into an established resolution process, the Commission 
will be able to devise a procedure to ensure resolution of the dispute 
in a manner that best serves all.17 Such a procedure could 
include a paper hearing process through which issues of material fact 
could be resolved by means of written statements. The Commission 
therefore considers the modified procedure regulations to be no longer 
necessary and will adopt the revisions proposed in the NOPR.
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    \17\ See, e.g., Express Pipeline Partnership, 75 FERC para. 
61,303 (1996) (holding that the Commission will establish paper 
hearing procedures to address whether to approve proposed rates and 
a rate structure as a condition precedent to construction of a new 
oil pipeline); Platte Pipe Line Company, 78 FERC para. 61,307 (1997) 
(holding that the Commission will establish a technical conference 
to examine issues raised by the pipeline's filing); and Sinclair Oil 
Corporation v. Platte Pipe Line Company, 87 FERC para. 61,259 (1999) 
(holding that the Director of the Commission's Dispute Resolution 
Service is directed to arrange a process to foster negotiation and 
agreement).
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    Some of the Commission's regulations include references to the 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, and it also 
refers to the Oil Pipeline Board. 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. Since the Commission 
abolished the Oil Pipeline Board in Order No. 561, the Commission 
proposed to remove all references to the Oil Pipeline Board, and adopts 
that proposal here.

H. AOPL's Suggestions

    Finally, in addition to commenting on the revisions proposed in the 
NOPR, AOPL, on behalf of the oil pipeline industry, requests that the 
Commission implement two additional modifications in the final rule. 
First, as a reflection of the current way in which carriers and their 
shippers conduct business, AOPL suggests that the Commission modify the 
definition of ``posting'' or ``post'' in section 341.0(a)(7), the 
definitions and applications section, by allowing the placement of a 
carrier's tariff on the Internet to serve as an alternate means of 
``posting.''
    AOPL's final suggestion is for the Commission to delete section 
385.208, which pertains to notices of protests to tentative oil 
pipeline valuations. According to AOPL, the sole purpose of this 
section was to permit objections to valuations of oil pipeline 
companies, which are no longer conducted.
    The Commission finds that both of AOPL's suggestions are consistent 
with the goals of this rulemaking and thus will integrate them into the 
final rule. AOPL's suggestion to allow posting on the Internet as an 
alternative recognizes the growing availability and use of electronic 
media as a new way of conducting business. The change also will not 
impose a requirement or burden on pipelines as it is an alternative and 
wholly voluntary; thus, the Commission considers it unnecessary to 
request comment before adopting the change. The Commission will also 
delete section 385.208. As was stated by AOPL, this section is wholly 
germane to objections to oil pipeline valuations, which are no longer 
performed.

V. Environmental Analysis

    The Commission is required to prepare an Environmental Assessment

[[Page 44404]]

or an Environmental Impact Statement for any action that may have a 
significant adverse effect on the human environment.18 The 
Commission has categorically excluded certain actions from these 
requirements as not having a significant effect on the human 
environment.19 The action proposed here is procedural in 
nature and therefore falls within the categorical exclusions provided 
in the Commission's regulations.20 Therefore, neither an 
Environmental Impact Statement nor an Environmental Assessment is 
necessary and will not be prepared in this rulemaking.
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    \18\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & 
Regs. (Regulations Preambles, 1986-1990) para. 30,783 (Dec. 10, 
1987).
    \19\ 18 CFR 380.4.
    \20\ 18 CFR 380.4(a)(2)(ii).
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VI. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act 21 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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    \21\ 5 U.S.C. 601-612.
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VII. Information Collection Statement

    Office of Management and Budget (OMB) regulations 22 
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 
final rule to the OMB for informational purposes.
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    \22\ 5 CFR Part 1320.
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VIII. Effective Date and Congressional Notification

    The regulations are effective September 15, 1999. The Small 
Business Regulatory Enforcement Fairness Act of 1996 requires agencies 
to report to Congress on the promulgation of certain final rules prior 
to their effective dates.23 That reporting requirement 
applies to this Final Rule. The Commission has determined, 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 351 of the Small Business Regulatory Enforcement 
Fairness Act of 1996.
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    \23\ 5 U.S.C. 801 (Supp. III 1997).
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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 record keeping requirements.

    By the Commission.
Linwood A. Watson, Jr.,
Acting Secretary.
    In consideration of the foregoing, the Commission amends Parts 3, 
341, 342, 343, 346, 357, 362, and 385, Chapter I, Title 18, Code of 
Federal Regulations, as set forth below.

PART 3--[REMOVED AND RESERVED]

    1.-2. Part 3 consisting of Sec. 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 341.0 is amended by revising paragraph (a)(7) to read as 
follows:


Sec. 341.0  Definitions; application.

    (a) * * *
    (7) Posting or post means making a copy of a carrier's tariff 
available during regular business hours for public inspection in a 
convenient form and place at the carrier's principal office and other 
offices of the carrier where business is conducted with affected 
shippers, or placing a copy on the Internet in a form accessible by the 
public.
* * * * *
    5. Section 341.2 is amended by revising paragraph (c)(1) to read as 
follows:


Sec. 341.2  Filing requirements.

* * * * *
    (c) * * *
    (1) Contents. Letters of transmittal must describe the filing and 
explain any changes to the carrier's rates, rules, terms or conditions 
of service; state if a waiver is being requested, and specify the 
statute, section, regulation, policy or order requested to be waived; 
and identify the tariffs or supplement numbers and the proposed 
effective date of the tariff publication. 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.
* * * * *
    6. 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].
* * * * *

PART 342--OIL PIPELINE RATE METHODOLOGIES AND PROCEDURES

    7. 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.

    8. Section 342.3 is amended by revising paragraph (b) in its 
entirety, and paragraph (d)(3) to read as follows:

[[Page 44405]]

Sec. 342.3  Indexing.

* * * * *
    (b) Information required to be filed with rate changes. The carrier 
must comply with Part 341 of this title. 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.
* * * * *
    (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

    9. 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.

    10. 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

    11. 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.

    12. 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

    13. 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.

    14. 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 title 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 title or 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.

SUBCHAPTER 5--[REMOVED AND RESERVED]

PART 362--[REMOVED AND RESERVED]

    14a. Subchapter 5 consisting of part 362, Uniform System of Records 
and Reports of Property Changes, 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)(4).
    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, any employee designated by rule or order to conduct the 
proceeding.
* * * * *


Sec. 385.208  [Removed and reserved].

    18. Section 385.208 is removed and reserved.
    19. Section 385.502 is amended by removing paragraph (a)(3) and 
revising paragraphs (a)(1) and (a)(2) to read as follows:


Sec. 385.502  Initiation of hearing (Rule 502).

    (a) * * *
    (1) Order of the Commission; or
    (2) Notice by the Secretary at the direction of the Commission or 
under delegated authority.
* * * * *


Secs. 385.1403 and 385.1405-385.1415  [Removed]


Secs. 385.1404 and 385.1415  [Redesigated as Secs. 385.1403 and 
385.1404]

    20. 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.
    21. 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. 99-20574 Filed 8-13-99; 8:45 am]
BILLING CODE 6717-01-P