[Federal Register Volume 65, Number 248 (Tuesday, December 26, 2000)]
[Rules and Regulations]
[Pages 81335-81344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32382]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 352, 357, and 385

[Docket No. RM99-10-000; Order No. 620]


Revisions to and Electronic Filing of the FERC Form No. 6 and 
Related Uniform Systems of Accounts

Issued December 13, 2000.
AGENCY: Federal Energy Regulatory Commission, DEO.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
amending of its regulations. The Commission is revising Form 6 
schedules and instructions to better meet current and future regulatory 
requirements and industry needs; updating Uniform Systems of Accounts 
(USofA) requirements to be more consistent with current Generally 
Accepted Accounting Principles (GAAP), and amending its regulations to 
provide for the electronic filing of Form 6 commencing with reporting 
year 2000, due on or before March 31, 2001. The Commission has tested 
the software and related elements of the electronic filing.

EFFECTIVE DATE: This final rule is effective January 25, 2001.

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

FOR FURTHER INFORMATION CONTACT:

Mary C. Lauermann (Technical Information), Office of the Executive 
Director, 888 First Street, N.E., Washington, D.C. 20426, (202) 208-
0087.
Julia A. Lake (Legal Information), Office of General Counsel, 888 First 
Street, N.E., Washington, D.C. 20426, (202) 208-2019.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction

II. Background

III. Discussion

A. Changes to the Form 6 Reporting Threshold
B. Form 6 Revisions
    1. General Instructions (Page i-ii)
    2. Definitions (Page iii)
    3. Instructions for Schedules 212-215 (New Title--Instructions 
for Schedules 212-217) (Page 211)
    4. Carrier Property (Pages 212-213)
    5. Depreciation Base and Rates, Undivided Joint Interest 
Property) (Pages 214-215), Accrued Depreciation--Carrier Property 
(Page 216), Accrued Depreciation--Undivided Joint Interest Property 
(Page 217)
    6. Noncarrier Property (Page 220)
    7. Operating Revenue Accounts (Account 600) (Page 301)
    8. Operating Expense Accounts (Account 610) (Pages 302-304)
    9. Statistics of Operations (Pages 600-601) and Miles of 
Pipeline Operated at End of Year (Pages 602-603)
    10. Annual Cost of Service Based Analysis Schedule (Page 700)
    11. Miscellaneous Items
    a. Electronic Filing of Form 6
    b. Form 6 Reporting Alternatives
    12. Miscellaneous Corrections

IV. Environmental Statement

V. Regulatory Flexibility Act

VI. Information Collection Statement

VII. Document Availability

VIII. Effective Date and Congressional Notification

Regulatory Text

Appendix A--FERC Form No. 6: Annual Report of Oil

    Pipeline Companies Schedules

I. Introduction

    The Federal Energy Regulatory Commission (Commission or FERC) is 
revising Parts 352, 357, and 385 of its regulations to revise its FERC 
Form No. 6: Annual Report of Oil Pipeline Companies (Form 6) schedules 
and instructions to better meet current and future regulatory 
requirements and industry needs; update Uniform Systems of Accounts 
(USofA) requirements to be more consistent with current Generally 
Accepted Accounting Principles (GAAP); and amend its regulations to 
provide for the electronic filing of Form 6 commencing with reporting 
year 2000, due on or before March 31, 2001. The Commission has tested 
the software and related elements of the electronic filing mechanism. 
This rule is part of the Commission's ongoing program to update and 
eliminate burdensome and unnecessary accounting and reporting 
requirements. These changes will reduce, by about 25 percent, the 
burden on regulated companies for maintaining and reporting information 
under the Commission's regulations.

II. Background

    In 1977, the responsibility to regulate oil pipeline companies was 
transferred to the Commission from the Interstate Commerce Commission 
(ICC).\1\ In accordance with the transfer of authority, the Commission 
was delegated the responsibility under section 1 of the Interstate 
Commerce Act (49 U.S.C. 1) to regulate the rates and charges for 
transportation of oil by pipeline and establish valuation of those 
pipelines, and under section 20 of that Act to require pipelines to 
file annual reports of information necessary for the Commission to 
exercise its statutory responsibilities.\2\
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    \1\ Section 402(b) of the Department of Energy Organization Act 
(DOE Act), 42 U.S.C. 7172, provides that: ``[t]here are hereby 
transferred to, and vested in, the Commission all functions and 
authority of the Interstate Commerce Commission or any officer of 
component of such Commission where the regulatory function 
establishes rates or charges for the transportation of oil by 
pipeline or established the valuation of any such pipeline.''
    \2\ The Secretary of Energy delegated to the Commission the 
authority under the Interstate Commerce Act which was formerly 
vested in the ICC, as that statute relates ``to the transportation 
of oil pipeline to the extent that such * * * [statute is] not 
transferred to, and vested in, FERC by Section 402(b) of the DOE Act 
* * *'' (Delegation Order No. 0204-1, Oct. 1, 1977).
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    The ICC developed the Form P to collect information on an annual 
basis to enable it to carry out its regulation of oil pipeline 
companies under the Interstate Commerce Act. A comprehensive review of 
the reporting requirements for oil pipeline companies

[[Page 81336]]

was performed on September 21, 1982, when the Commission issued Order 
No. 260 \3\ revising the former ICC Form P, ``Annual Report of Carriers 
by Pipeline'' and redesignating it as FERC Form No. 6, ``Annual Report 
of Oil Pipeline Companies.'' In 1994, the Commission addressed 
additional revisions to the Form 6 in Order Nos. 571 and 571-A,\4\ 
including adding a new page 700. The information included in the Form 6 
was determined at that time to be the minimum necessary for Shippers to 
assess filed rate changes under Order No. 561.\5\
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    \3\ Order No. 260, 47 FR 42327 (Sept. 27, 1982); FERC Stats. & 
Regs. [Regulations Preambles 1982-1985] para. 30,397 (Sept. 21, 
1982).
    \4\ Order No. 571, 59 FR 59137 (Nov. 16, 1994); FERC Stats. & 
Regs. [Regulations Preambles January 1991--June 1996] para. 31,006 
(Oct. 28, 1994). Order No. 571-A, 60 FR 356 (Jan. 4, 1995); FERC 
Stats. & Regs. [Regulations Preambles January 1991-June 1996] para. 
31,012 (Dec. 28, 1994).
    \5\ Revisions to Oil Pipeline Regulations Pursuant to the Energy 
Policy Act of 1992, Order No. 561, 58 FR 58753 (Nov. 4, 1993) FERC 
Stats. & Regs. [Regulations Preambles January 1991-June 1996] para. 
30,985 (Oct. 22, 1993); Order No. 561-A, 59 FR 40243 (Aug. 8, 1994) 
FERC Stats. & Regs. [Regulations Preambles, January 1991-June 1996] 
para. 31,000 (1994), affirmed, Association of Oil Pipelines v. FERC, 
83 F.3d 1424 (D.C. Cir. 1996).
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    In Order No. 561, the Commission adopted an indexing methodology to 
regulate oil pipeline rate changes as well as certain alternative rate-
changing methodologies where a Pipeline or a Shipper could justify a 
departure from the indexing methodology. The Commission found that this 
indexing methodology would simplify and thereby expedite the process of 
changing rates. Under the Commission's indexing methodology, oil 
pipeline Shippers play a more active role in monitoring the application 
of the Commission's rate indexing methodology. Unlike Shippers in the 
natural gas and electric industries regulated by the Commission, oil 
pipeline Shippers bear a greater burden in proving that proposed 
indexed rate changes are unjust and unreasonable. Moreover, when a 
Shipper attempts to justify a complaint against an existing or 
grandfathered rate, it must satisfy a substantial evidentiary burden 
before a hearing and formal discovery rights are granted. This burden 
requires an in-depth analysis of oil pipelines' cost and revenue data.
    As a result of the shift in responsibilities and the specific 
information requirements outlined in Commission Rule 206 \6\ for a 
protest or complaint, the Commission makes the following changes to 
Form 6 information collection in this final rule.
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    \6\ 18 CFR 385.206.
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    On July 27, 2000, the Commission issued a notice of proposed 
rulemaking (NOPR) in Docket No. RM99-10-000.\7\ The Commission received 
six comments on the NOPR representing oil pipeline companies and oil 
pipeline shippers.\8\
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    \7\ 65 FR 50376 (Aug. 17, 2000).
    \8\ Association of Oil Pipe Lines (AOPL), Marathon Ashland Pipe 
Line LLC (Marathon), Equilon Pipeline Company LLC (Equilon), 
Williams Pipeline Company (Williams), Sinclair Oil Corporation 
(Sinclair), The Society for the Preservation of Oil Pipeline 
Shippers (SPOPS).
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III. Discussion

    The Commission is revising Part 357--Annual Special or Periodic 
Reports: Carriers Subject to Part I of the Interstate Commerce Act for 
pipeline carriers subject to the provisions of section 20 of the 
Interstate Commerce Act. For the most part, these revisions amend the 
annual filing requirements and raise the minimal filing threshold for 
the Form 6. The Commission is also revising the Form 6 instructions and 
schedules to clarify definitions and general instructions, eliminate 
duplicate reporting requirements, remove and consolidate schedules, 
update current schedules, and revise current schedules. Therefore, the 
final rule lowers the reporting burden on relatively small companies 
and clarifies the Form 6 reporting requirements which promotes 
consistent reporting practices among pipeline carriers. Since the Form 
6 is intended to be both a financial and ratemaking document,\9\ the 
final rule ensures that the Commission has the financial, operational, 
and ratemaking information needed to carry out its regulatory 
responsibilities to monitor the oil pipeline industry in a dynamically 
changing environment. Respondents to the NOPR commended the 
Commission's efforts in generally reducing the burden to the pipeline 
industry while providing a balanced approach to the need for 
information by oil pipeline shippers and providing for electronic 
submissions of the Form 6. However, several respondents had differing 
opinions on the necessity for additional information requirements on 
several of the Form 6 pages and several definitions and thresholds. 
Topics addressed in the NOPR that were agreed to or accepted by 
industry are not commented upon in this final rule. Specific topics 
requiring a Commission response to industry's comments are addressed 
below.
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    \9\ Cost of Service Reporting and Filing Requirements for Oil 
Pipelines, FERC Stats., & Regs. [Regs. Preambles, 1991-1996] para. 
31,006 at 31,169 and FERC Form No. 6, p. i, Roman Numeral I.
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A. Changes to the Form 6 Reporting Threshold

    Sinclair Oil Corporation (Sinclair) argued that raising the 
reporting threshold for submission of a complete Form 6 from $350,000 
to $1,000,000 would be excessive and contribute to distortions in the 
data. Sinclair believes that a reporting threshold of $1,000,000 is too 
high and eliminates too many companies. Sinclair recommends raising the 
reporting threshold to $500,000 in order to reduce the reporting burden 
for smaller companies and prevent inconsistencies in data reported.
    Upon further review, the Commission believes that Sinclair's 
statement has merit and grants its request to raise the reporting 
threshold to $500,000 rather than the proposed $1,000,000. In this 
final rule, the Commission is requiring jurisdictional oil pipeline 
companies with annual jurisdictional operating revenues greater than 
$350,000 but less than $500,000 for each of the three previous calendar 
years to prepare and file pages 1--``Identification and Attestation,'' 
301--``Operating Revenue Accounts (Account 600),'' and 700--``Annual 
Cost of Service Based Analysis Schedule'' of the Form 6 on or before 
March 31 of each year. Also, the Commission requires those 
jurisdictional oil pipeline companies with annual jurisdictional 
operating revenues of $350,000 or less for each of the three previous 
calendar years are required to prepare and file with the Commission 
pages 1--``Identification and Attestation'' and 700--``Annual Cost of 
Service Based Analysis Schedule'' of FERC Form No. 6 on or before March 
31 of each year for the previous calendar year.

B. Form 6 Revisions.

1. General Instructions (Page i-ii).\10\
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    \10\ Note: The page numbers referred to throughout the final 
rule reference the page numbers in the revised Form 6.
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    Williams Pipeline Company (Williams) questioned the requirement to 
report in whole dollar amounts rather than rounding to the nearest 
thousand. Williams claims that ``reporting dollars below the thousand 
dollar threshold provides no incremental benefit,'' and that companies 
small enough to fall below the $500 threshold would also be below the 
Form 6 reporting threshold.
    The Commission believes that rounding dollars to the nearest 
thousand may inaccurately reflect the operations of smaller companies. 
If oil pipeline companies are permitted to round to the nearest 
thousand the Commission will not know whether a number is not

[[Page 81337]]

reported because the value is zero or the value is rounded down to 
zero. In addition, rounding to whole dollar amounts ensures consistency 
with other Commission filings, including FERC Forms 1 and 2. Therefore, 
Williams suggested revision to the whole dollar reporting requirement 
is denied.
2. Definitions (Page iii)
    The Association of Oil Pipe Lines (AOPL), Equilon Pipeline Company, 
LLC (Equilon), Marathon Ashland Pipe Line Company, LLC (Marathon), and 
Williams stated that the definition of an ``undivided joint interest 
pipeline'' as ``a common carrier by pipeline controlled by more than 
one common carrier'' was inconsistent with the meaning of the term in 
the industry and would apply to all joint interest pipelines, not just 
those that are ``undivided'' joint interest. AOPL stated that an 
undivided joint interest pipeline was not a legal entity. Rather it was 
a ``legal fiction'' created to cover situations where several common 
carrier pipelines had ``a separate and distinct property interest, as 
opposed to shareholder interest, in a single physical pipeline.'' 
Marathon proposed defining an ``undivided joint interest pipeline'' as 
``physical pipeline property owned in undivided joint interest by more 
than one person/entity.'' The Commission agrees with Marathon and 
adopts the recommended definition.\11\
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    \11\ FERC Form No. 6, p. iii, New Instruction No. 13.
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3. Instructions for Schedules 212-215 (New Title--Instructions for 
Schedules 212-217 (Page 211)
    Marathon does not support excluding undivided joint interest 
pipelines from schedules 212 and 213. Marathon argues that the 
schedules should reflect carriers' total company activity within the 
property accounts. The Commission believes that total company data can 
be obtained by adding the data on pages 212-213 to the data on pages 
214-215. Shippers that want to contest a rate need the undivided joint 
interest pipeline information separated from the total carrier property 
information. The Commission maintains its position to require separate 
reporting of undivided joint interest pipeline information.
4. Carrier Property (Pages 212-213)
    AOPL, Williams, and Equilon believe that accounting for carrier 
property by gathering, trunk and general facilities is ``an undue 
burden and unwarranted.'' AOPL disagrees with the Commission's stated 
purpose for requiring such a breakout.\12\ AOPL states that few 
depreciation studies are requested and that the ``benefit to be gained 
by breaking these costs out by gathering, trunk and general facilities 
* * * is small and * * * not enough to offset the burden.'' AOPL argues 
that the requested breakout for depreciation purposes can be readily 
obtained after a depreciation study is requested. Additionally, AOPL 
states that shippers participating in the rulemaking stated that they 
did not need such information.
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    \12\ 65 FR 50376 (Aug. 17, 2000), IV FERC Stats. & Regs. para. 
32,553 at 33,949 (July 27, 2000).
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    Marathon, on the other hand, had no objection to breaking out 
carrier property by gathering, trunk and general facilities, and 
Sinclair endorsed maintaining the distinctions between gathering, trunk 
and delivery lines. Sinclair stated that the information is invaluable 
to shippers in understanding and analyzing the financial data reported 
by pipeline companies.
    The Commission believes that the carrier property information 
broken out by gathering, trunk and general facilities is vital in order 
to determine whether a full depreciation study should be requested, and 
to assist the shipper in meeting its burden to show that a rate should 
be set for full hearing and investigation. Therefore, the Commission 
maintains the requirement to provide carrier property information by 
gathering, trunk, and general facilities.
5. Depreciation Base and Rates
    Undivided Joint Interest Property) (Pages 214-215).
    Accrued Depreciation-Carrier Property (Page 216).
    Accrued Depreciation--Undivided Joint Interest Property) (Page 
217). AOPL, Williams, Equilon, Marathon believe that undivided joint 
interest property should only be reported separately if the 
depreciation rates differ from that of the carrier's other assets. AOPL 
states that if the undivided joint interest property is depreciated at 
the same rate as the carrier's other assets the carrier should only be 
required to make a statement to that effect. AOPL contends that the 
Commission's assertion that depreciation rates vary among the classes 
of property \13\ is rarely true. In addition, Marathon believes that 
there should be a carrier property threshold of $10 million for any 
undivided joint interest property that must be reported separately.
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    \13\ 65 FR 50376 (Aug. 17, 2000), IV FERC Stats. & Regs. para. 
32,553 at 33,949 (July 27, 2000).
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    The Commission believes that even if the depreciation rate is the 
same for both carrier property and undivided joint interest property, 
the breakout of undivided joint interest pipeline base information is 
needed in its own right. Carrier property and accrued depreciation data 
is used not only for depreciation studies, but is needed to calculate a 
rate base to determine items such as rate of return and income taxes in 
a cost of service analysis. The Commission believes that even if 
depreciation rates rarely vary among the different classes of property, 
that is hardly a reason not to require the numbers to be shown 
separately. As to Marathon's suggested threshold of $10 million in 
undivided joint interest property before reporting that information 
separately, the Commission believes that a $10 million threshold would 
render the data on undivided joint interest pipelines useless. The 
Commission, therefore, maintains the requirement to identify undivided 
joint interest property separately, and denies the request to require 
such identification only when the depreciation rate is different than 
the carrier property or more than $10 million.
6. Noncarrier Property (Page 220)
    Williams requests that the Commission abandon the requirement to 
report detailed cost information of noncarrier property and income from 
noncarrier property. Williams states that the Commission is concerned 
with activities related to the transportation of oil in interstate 
commerce and that nonjurisdictional activities of a pipeline are of no 
concern to the Commission or shippers. Williams also states that it is 
inappropriate to require companies to divulge nonjurisdictional 
information to competitors.
    The Commission needs information related to noncarrier property for 
ratemaking proceedings, settlements, and discovery. Additionally, the 
Commission uses the information to ascertain whether joint costs have 
been allocated properly between carrier and noncarrier property. In 
order to reduce the burden to jurisdictional companies, the Commission 
has raised the reporting threshold from $250,000 to $1,000,000. 
Therefore, the Commission denies Williams' request to abandon the 
reporting requirement for noncarrier property.
7. Operating Revenue Accounts (Account 600) (Page 301)
    AOPL, Williams, and Equilon disagree with the Commission's 
requirement to distinguish between crude oil and product movements, 
stating that this distinction is without relevance. AOPL argues that 
companies that operate both crude and product lines do not break their 
costs down

[[Page 81338]]

between the two commodities. AOPL believes that the Commission's 
assertion that companies must maintain such an accounting distinction 
under Statements of Financial Accounting Standards (SFAS) No. 131--
Disclosures about Segments of an Enterprise and Related Information is 
misguided. AOPL states that many of the carriers reporting to FERC are 
not publicly held and do not report to the Securities and Exchange 
Commission so they are not covered under SFAS 131. AOPL recommends that 
if the Commission continues to require cost allocation between crude 
and product systems, the burden should only be imposed on pipelines 
that carry more than 10 percent of the other commodity.
    In addition, AOPL believes that pipelines should not be required to 
allocate revenues among gathering, trunk and delivery systems. AOPL 
states that when the Commission examines function for purposes of 
cross-subsidization it obtains the information it needs directly from 
the carrier, making mandatory Form 6 reporting an unwarranted burden.
    Marathon, however, does not oppose the reporting of revenue data by 
crude oil and product movements or by gathering, trunk and delivery 
systems. Sinclair approves of reporting the distinctions between crude 
oil and product lines by gathering, trunk and delivery lines. Sinclair 
states that the separate reports are invaluable for analyzing financial 
data and vital to the analysis of the performance of the ceiling price 
index.
    AOPL recommends the Commission reconsider its NOPR decision not to 
revise page 301 to include prior year information.\14\ AOPL states that 
adding prior year information would bring page 301 into alignment with 
other Form 6 schedules and would facilitate review of revenue data.
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    \14\ 65 FR 50376 (Aug. 17, 2000), IV FERC Stats. & Regs. para. 
32,553 at 33,955 (July 27, 2000).
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    The Commission finds that there are significant differences between 
crude and product lines in the way they operate, the markets they 
serve, and the costs they incur, necessitates the reporting of such 
revenues separately. Pipelines, also, recognize these differences in 
their oil pipeline tariffs which clearly distinguish between services 
and rates for crude or product transportation. The Commission believes 
that it is essential for a shipper who is trying to allocate costs and 
revenues to specific facilities, and match those facilities with a 
pipeline's different services (gathering, trunk or delivery, crude or 
product), to know what functions the facilities serve. The Commission 
believes that a proper allocation is important to the shipper 
regardless of the percentage of crude or product transported. 
Therefore, the Commission denies the request to eliminate the 
distinctions between crude oil or product lines and gathering, trunk or 
delivery lines. Additionally, the Commission denies the request to 
require only those companies that carry more than 10 percent of either 
crude oil or product to allocate their costs between the different 
product lines. However, the Commission agrees with AOPL that requiring 
carriers to report prior year revenues will facilitate review of 
revenue data while not adding an additional burden to the industry and 
has revised page 301 to include this requirement.
8. Operating Expense Accounts (Account 610) (Pages 302-304)
    AOPL, Williams, and Equilon argue that separate crude and product 
service accounting should not be required of companies that carry less 
than 10 percent of either commodity. AOPL also objects to the 
requirement to allocate costs by gathering, trunk or delivery, stating 
that this information is not needed to functionalize costs or analyze 
rates.
    As stated in our response to Operating Revenue Accounts above, the 
Commission believes that it is essential for a shipper who is trying to 
allocate costs and revenues to specific facilities, and match those 
facilities with a pipeline's different services (gathering, trunk or 
delivery, crude or product), to know what functions the facilities 
serve. The Commission believes that a proper allocation is important to 
the shipper regardless of the percentage of crude or product 
transported. Therefore, the Commission maintains the requirement to 
distinguish between crude oil or product lines and gathering, trunk or 
delivery lines, and denies the request to allow companies that carry 
less than 10 percent of either crude oil or product to be relieved of 
the separate reporting requirement.
    Sinclair states that two new subcategories consisting of ``direct'' 
and ``indirect'' expenses be created within the operations and 
maintenance accounts. Sinclair argues that it needs this more precise 
information to determine if there is a need for a further evaluation of 
proposed tariff changes. The Commission sees no benefit and Sinclair 
has provided no compelling arguments for further burdening pipelines 
with the additional requirement of subdividing the operations and 
maintenance accounts into ``direct'' and ``indirect'' expenses. 
Pipelines are already required to aggregate significant indirect costs 
such as employee benefits and taxes in separate accounts in the general 
expense group of accounts. This information should be sufficient to 
determine if there is a need for a further evaluation of proposed 
tariff changes. Therefore, the Commission denies Sinclair's request.
9. Statistics of Operations (Pages 600-601) and Miles of Pipeline 
Operated at End of Year (Pages 602-603)
    AOPL, Williams, and Equilon state that the Commission should not 
change the reporting of volumes moved on undivided joint interest 
pipelines as the operator of an undivided joint interest pipeline is 
not privy to company tariffs and volumes shipped under those tariffs. 
AOPL states that if the Commission wants to be able to track the 
volumes shipped on an undivided joint interest pipeline, that 
information must be provided by each of the individual owners.
    The Commission believes that the changes to the instructions for 
reporting volumes moved are appropriate but agrees with AOPL that they 
have not clearly indicated the Commission's intentions. Therefore, the 
instructions are revised to ensure that volumes moved on undivided 
joint interest pipelines operated by others are reported. The last 
sentence in Instruction No. 2 is revised to read ``Any barrels received 
into a pipeline owned by the respondent, but operated by others, should 
be reported separately on additional pages (For example 600a-601a, 
600b-601b, etc.),'' and Instruction No. 3 has been reorganized and the 
final sentence revised to read ``Any barrels delivered out of a 
pipeline owned by the respondent, but operated by others, should be 
reported separately on additional pages (For example 600a- 601a, 600b-
601b, etc.).''
    In order to be consistent in the reporting of mileage and volumes 
reported for undivided joint interest property operated by others, 
pages 602 and 603 have been revised to include a reporting category for 
undivided joint interest property owned by respondents, but operated by 
others.
10. Annual Cost of Service Based Analysis Schedule (Page 700)
    AOPL, Williams, Equilon, and Marathon opposed requiring pipelines 
to file additional cost of service information as proposed in the NOPR, 
specifically lines 1 through 8 on Form 6, page 700. AOPL suggests 
shippers have several sources of information,

[[Page 81339]]

such as a pipeline's tariff and the existing Form 6, that provides 
sufficient information. On the other hand, Sinclair and the Society for 
the Preservation of Oil Pipeline Shippers (SPOPS) supports the NOPR 
proposal to require a breakdown of the total cost of service, but urges 
the Commission to require additional cost of service reporting not only 
by the company as a whole, but also for each system. SPOPS also urges 
the Commission to require pipelines to report ``Return on Equity,'' 
which the Commission's NOPR does not propose to collect.
    Sinclair urges the Commission to augment the current reporting 
requirements of page 700 by requiring pipelines to report total cost of 
service, operating revenues, throughput in barrels, and throughput in 
barrel miles on a system-by-system basis. In addition to requesting 
cost of service reporting by system, Sinclair asks the Commission to 
require those companies with multiple forms of rate regulation to 
report separate cost of service, revenue, expense and throughput data 
on the portion of operations still subject to the indexing methodology.
    The Commission believes that the proposed page 700 breakdown is a 
reasonable compromise in this instance. Therefore, the Commission 
adopts revised page 700 data requirements identified on Line Nos. 1 
through 8 in order to balance the competing needs of pipelines and 
shippers in the regulation of oil pipelines.
    The stated purpose of page 700 is to provide a means whereby a 
shipper can determine whether a pipeline's cost of service or per-
barrel/mile costs is so substantially divergent from the revenues 
produced by its cost of service rates to warrant a challenge that 
requires the pipeline to justify its rates.\15\ In Order No. 571, the 
Commission rejected requests that the data reported on page 700 include 
separate cost of service information for each individual system,\16\ 
and stated that page 700 was not intended to require a pipeline to 
demonstrate with precision its cost of service attributable to each 
individual system it operates.\17\ Consistent with our decision in 
Order No. 571, the Commission denies suggestions by shippers that 
pipelines be required to file separate cost of service information for 
each individual system and additional information specifying debt and 
equity components.
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    \15\ FERC Stats. & Regs. para. 31,006 at 31,168 (1991-1996).
    \16\ Id. at 31,169.
    \17\ Id. at 31,168.
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    Form 6, page 700, Instruction 2 requires that values for the 
components of the existing data requirements (Total Cost of Service on 
Line No. 9) be computed on a total company basis consistent with 
Commission Opinion No. 154-B et al. methodology. Instruction 3 requires 
the reporting of total company revenue (Total Interstate Operating 
Revenue) on Line No. 10.
    AOPL states that current total cost of service under Opinion No 
154-B does not equate to total company costs, asserting that cost of 
service consists of those costs related to the pipeline's 
jurisdictional services. AOPL argues that respondents' values on page 
700 should only reflect jurisdictional cost of service and revenues. 
AOPL does not object to providing total revenue information, but states 
total revenue information is not identical to Opinion No. 154-B cost of 
service.
    SPOPS asserts that the Commission can only address jurisdictional 
rates in its determinations and, therefore, it should be matching total 
company costs with total company revenues. SPOPS argues that the 
numbers on page 700 are understated since the current page 700 compares 
total cost of service and only pipeline revenues. SPOPS also argues 
that pipelines could manipulate the jurisdictional cost of service to 
fit revenues by including nonjurisdictional revenues. SPOPS recommends 
the Commission, as proposed in the NOPR, require pipelines to report 
total company revenues along with total company cost of service.
    The Commission agrees that revenues reported on Line No. 10 of page 
700 should reflect only jurisdictional revenues, not nonjurisdictional 
revenues. Therefore, Line 10 of page 700 is revised to require 
pipelines to report ``Total Interstate Operating Revenues,'' as 
reported on page 301, bringing it in sync with the reporting 
requirements specified in Instruction 2.
    SPOPS states that the Commission cannot call upon shippers to prove 
a particular rate is not just and reasonable without the information 
necessary to ascertain the cost of service allocated to that rate. Form 
6, page 700, Instruction 7 requires a pipeline to make its cost of 
service workpapers available for inspection when requested by the 
Commission or its staff. Commission Order No. 571 stated that the use 
of page 700 should be limited and should not be misleading.\18\ The 
information on page 700 was intended to be a preliminary screening tool 
for pipeline rate filings. As such, page 700 provides a means whereby a 
shipper can determine whether a pipeline's cost of service is so 
substantially divergent from the revenues produced by its rates to 
warrant a challenge that requires the pipeline to justify its rates. 
The Commission clarifies the circumstances under which a pipeline is 
required to provide supporting workpapers for data reported on page 
700. The workpapers must fully support all amounts reported on page 700 
including but not limited to the total company Opinion 154-B 
calculations and all of its associated components, total company 
revenues, including allocations of costs and revenues between 
jurisdictional and nonjurisdictional facilities/services, and between 
interstate and intrastate services, and all assumptions made for the 
Opinion 154-B calculations and cross-references to underlying source 
documents. Additionally, the Commission revises Instruction 7 to state 
that ``A respondent may be requested by the Commission or its staff to 
provide its workpapers which support the data reported on page 700.''
---------------------------------------------------------------------------

    \18\ FERC Stats. & Regs. para. 31,006 at 31,169 (1991-1996).
---------------------------------------------------------------------------

    SPOPS urges the Commission to require the filing of total company 
cost of service as proposed in the NOPR, and to reconsider its stated 
position to play a less active role in monitoring and overseeing 
pipeline rates and practices.\19\ The NOPR raised the Commission's 
recently adopted complaint procedures as well as recent interpretations 
of the ``changed circumstances'' requirements of the EPAct as reasons 
to expand page 700 reporting.
---------------------------------------------------------------------------

    \19\ 65 FR 50376 (Aug. 17, 2000), IV FERC Stats. & Regs. 
para.32,553 at 33,943-4 (July 27, 2000).
---------------------------------------------------------------------------

    AOPL disagrees with shippers' need for adequate information in 
complaint proceedings and notes that since the new, more stringent 
complaint procedures became effective, eight complaints have been set 
for hearing.\20\ Further, AOPL argues that nothing has changed since 
Order Nos. 561 and 571 were issued. Specifically, AOPL asserts the 
number of recent complaints suggests that shippers don't need better 
information; and that total volume, cost and revenue information 
currently available to shippers is sufficient to meet the Commission's 
``changed circumstances'' tests.
---------------------------------------------------------------------------

    \20\ The Commission notes that more than half of these 
complaints were filed by various shippers against SFPP, LP which 
were virtually identical in the issues raised in their complaints. 
Consequently, these complaints are not good examples of why shippers 
do not need better, more complete information.
---------------------------------------------------------------------------

    As stated previously, page 700 was designed as a preliminary 
screening tool for pipeline rate filings. It provides a

[[Page 81340]]

means for a shipper to determine whether a pipeline's cost of service 
or per-barrel/mile cost is so substantially divergent from the revenues 
produced by its rates to warrant a challenge that requires the pipeline 
to justify its rates. The Commission believes that the additional 
information provided on the new page 700 provides the information 
necessary to monitor the reasonableness of a pipeline's filed rates and 
will further enable a shipper to challenge a pipeline's rates.
11. Miscellaneous Items
    a. Electronic Filing of Form 6. In the NOPR, the Commission 
proposed requiring electronic filing of the Form 6 with conforming 
paper copies commencing with the report for calendar year 2000, due on 
or before March 31, 2001. No industry comments were received in 
opposition to this proposal. Therefore, the Commission implements the 
Form 6 electronic filing requirement with issuance of this final rule. 
Additionally, respondents should identify an electronic filing 
technical contact and inform the Secretary of the contact's name, 
telephone number and e-mail address by the effective date of this final 
rule. Any changes to this information should be submitted to the 
Secretary.
    b. Form 6 Reporting Alternatives. Williams expressed its 
disappointment that the Commission ignored industry's initiative to 
shift to GAAP financial statements, and encouraged the Commission to 
continue exploring a shift to a reporting format that is consistent 
with other financial reviews. AOPL and Marathon support the 
Commission's efforts to align the Uniform System of Accounts (USofA) 
with GAAP requirements, but feel that uniformity of accounting systems 
among oil pipeline companies is more important to the industry than the 
filing format for the information.
    As stated in the NOPR, this final rule updates the USofA 
regulations to reflect Statements of Financial Accounting 
Standards.\21\ The Commission believes these changes simplify the Form 
6, reduce the overall reporting burden on pipeline companies, and 
result in more consistent industry reporting while providing the 
Commission the information it needs to regulate the oil industry. The 
Commission will consider future changes to the Form 6 based on changes 
to the Statements of Financial Accounting Standards.
---------------------------------------------------------------------------

    \21\ 65 FR 50376 (Aug. 17, 2000), IV FERC Stats. & Regs. 
para.32,553 at 33,964 (July 27, 2000).
---------------------------------------------------------------------------

12. Miscellaneous Corrections
    After issuance of the NOPR, it was noted that a change was proposed 
to the regulatory text under the Instructions for Carrier Property 
Accounts for Instruction 3-3. This was done inadvertently. No changes 
to this instruction are planned at this time.

IV. Environmental Statement

    Commission regulations require that an environmental assessment or 
an environmental impact statement be prepared for any Commission action 
that may have a significant adverse effect on the human 
environment.\22\ No environmental consideration is necessary for the 
promulgation of a rule that is clarifying, corrective, or procedural or 
that does not substantially change the effect of legislation or 
regulations being amended,\23\ and also for information gathering, 
analysis, and dissemination.\24\ The final rule does not substantially 
change the effect of the underlying legislation. However, the final 
rule makes changes to Form 6, and also impacts information gathering. 
Accordingly, no environmental considerations are necessary.
---------------------------------------------------------------------------

    \22\ Regulations Implementing National Environmental Policy Act, 
52 FR 47897 (Dec. 17, 1987); FERC Stats. & Regs. para.30,783 (Dec. 
10, 1987).
    \23\ 18 CFR 380.4(a)(2)(ii).
    \24\ 18 CFR 380.4(a)(5).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    The Commission received no comments on its certification, in the 
NOPR, that the proposed rule would not have a significant economic 
impact on a substantial number of small entities and that an initial 
Regulatory Flexibility Act (RFA) \25\ analysis is not required.
---------------------------------------------------------------------------

    \25\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    In Mid-Tex Elect. Coop. v. FERC, 773 F. 2d 327 (D. C. Cir. 1985), 
the court found that Congress, in passing the RFA, intended agencies to 
limit their consideration ``to small entities that would be directly 
regulated'' by proposed rules. Id. at 342. The court further concluded 
that ``the relevant `economic impact' was the impact of compliance with 
the proposed rule on regulated small entities.'' Id. at 342.
    This final rule will not have an adverse impact on small entities, 
nor will it impose upon them any significant costs of compliance. 
Rather, this rule will significantly reduce the reporting burden on 
relatively small companies by raising the reporting threshold, and 
promote consistent reporting practices among pipeline carriers. Most 
filing entities regulated by the Commission do not fall within the 
RFA's definition of a small entity.\26\ Therefore, the Commission 
certifies that this rule will not have a significant economic impact on 
a substantial number of small entities.
---------------------------------------------------------------------------

    \26\ 5 U.S.C. 601(3), citing to section 3 of the Small Business 
Act, 15 U.S.C. 632. Section 3 of the Small Business Act defines a 
``small-business concern'' as a business which is independently 
owned and operated and which is not dominant in its field of 
operation.
---------------------------------------------------------------------------

VI. Information Collection Statement

    The following collection of information contained in this final 
rule was submitted to the Office of Management and Budget (OMB) for 
review under Section 3507(d) of the Paperwork Reduction Act of 
1995.\27\ FERC identifies the information provided under Part 352 and 
Sec. 357.2 as FERC Form No. 6.
---------------------------------------------------------------------------

    \27\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------

    Public Reporting Burden: Estimated Annual Burden.
    The final rule establishes new reporting requirements, modifies 
existing reporting requirements and eliminates those requirements that 
are no longer applicable. The burden for complying with this proposed 
rule are as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                        Total
                       Data collection                         Number of    Number of    Hours per      annual
                                                              respondents   responses     response      hours
----------------------------------------------------------------------------------------------------------------
FERC Form 6.................................................          129            1          119       15,351
(Pages 1 & 700).............................................           11            1           10          110
(Pages 1, 301 & 700)........................................           19            1           11          209
                                                             ---------------------------------------------------
    Totals..................................................          159            1           99       15,670
----------------------------------------------------------------------------------------------------------------


[[Page 81341]]

    Total Annual Hours for collections (Reporting + Record keeping, (if 
appropriate)) = 15,670 hours.
    The simplified filing requirements under the final rule and the 
reduced number of filings per year result in a reduction of 5,141 hours 
per year from the revised OMB burden inventory for the above data 
collection.
    Information Collection Costs: The Commission projected the average 
annualized costs for all respondents to comply with these requirements 
to be:

----------------------------------------------------------------------------------------------------------------
                                                                           Annualized costs
                   Data collection                    Annualized capital/    (operations &     Total annualized
                                                        start-up costs       maintenance)            costs
----------------------------------------------------------------------------------------------------------------
FERC Form No. 6.....................................              $0.00            $840,341           $840,341
----------------------------------------------------------------------------------------------------------------
(For 129 respondents completing the FERC Form No. 6, the cost per company would be $6,382, pages 1 & 700 = $536
  and pages 1, 301 & 700 = $590).

    The OMB regulations require OMB to approve certain information 
collection requirements imposed by agency rule.\28\ Accordingly, 
pursuant to OMB regulations, the Commission has provided notice of 
information collections to OMB.
---------------------------------------------------------------------------

    \28\ 5 CFR 1320.11.
---------------------------------------------------------------------------

    Title: FERC Form No. 6, Annual Report of Oil Pipeline Companies.
    Action: Proposed Data Collection.
    OMB Control No.: 1902-0022.
    The regulated entity shall not be penalized for failure to respond 
to this collection of information unless the collection of information 
displays a valid OMB control number.
    Respondents: Businesses or other for profit.
    Frequency of Responses: Annually.
    Necessity of Information: The final rule revises the Commission's 
requirements contained in 18 CFR Parts 352, 357, and 385. This rule 
revises Form 6 schedules and instructions to better meet current and 
future regulatory requirements and industry needs; updates the USofA 
requirements to be more congruent with current GAAP accounting; and 
amends regulations to provide for the electronic filing of Form 6 
commencing with reporting years 2000, due on or before March 31, 2001. 
The Commission uses the information for administration of the 
Interstate Commerce Act and in various rate proceedings.
    Internal Review: The Commission has assured itself, by means of its 
internal review, that there is specific, objective support for the 
burden estimates associated with the information requirements. The 
Commission's staff uses the data for compliance reviews on the 
financial conditions of regulated companies. These requirements conform 
to the Commission's plan for efficient information collection, 
communication, and management within the oil pipeline industry. Data 
will contribute to well-informed decision-making and streamlined 
workload processing. Interested persons may obtain information on the 
reporting requirements by contacting the following:
    Federal Energy Regulatory Commission, 888 First Street, NE, 
Washington, DC 20426, Attention: Michael Miller, Office of the Chief 
Information Officer, Phone: (202) 208-1415, fax: (202) 208-2425, email: 
[email protected].
    For submitting comments concerning the collection of information 
and the associated burden estimates, please send your comments to the 
contact listed above and to the Office of Management and Budget, Office 
of Information and Regulatory Affairs, Washington, DC 20503. 
[Attention: Desk Officer for the Federal Energy Regulatory Commission, 
phone (202) 395-7318, fax: (202) 395-7285].

VII. Document Availability

    In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
Internet through FERC's Home Page (http://www.ferc.fed.us) and in 
FERC's Public Reference Room during normal business hours (8:30 a.m. to 
5 p.m. Eastern time) at 888 First Street, N.E., Room 2A, Washington, DC 
20426.
    From FERC's Home Page on the Internet, this information is 
available in both the Commission Issuance Posting System (CIPS) and the 
Records and Information Management System (RIMS).

--CIPS provides access to the texts of formal documents issued by the 
Commission since November 14, 1994.
--CIPS can be accessed 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 8.0 format for viewing, printing, and/or 
downloading.
--RIMS contains images 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 from FERC's Home Page using the RIMS 
link or the Energy Information Online icon. Descriptions of documents 
back to November 16, 1981, are also available from RIMS-on-the-Web; 
requests for copies of these and other older documents should be 
submitted to the Public Reference Room.

    User assistance is available for RIMS, CIPS, and the Website during 
normal business hours from our Help line at (202) 208-2222 (E-Mail to 
[email protected]) or the Public Reference Room at (202) 208-1371 
(E-Mail to [email protected]).
    During normal business hours, documents can also be viewed and/or 
printed in FERC's Public Reference Room, where RIMS, CIPS, and the FERC 
Website are available. User assistance is also available.

VIII. Effective Date and Congressional Notification

    This Final Rule will take effect January 25, 2001. The Commission 
has determined, with the concurrence of the Administrator of the Office 
of Information and Regulatory Affairs, of the Office of Management and 
Budget, that this rule is not a ``major rule'' within the meaning of 
Section 251 of the Small Business Regulatory Enforcement Fairness Act 
of 1996.\29\ The Commission will submit the Final Rule to both houses 
of Congress and the General Accounting Office.\30\
---------------------------------------------------------------------------

    \29\ 5 U.S.C. 804(2).
    \30\ 5 U.S.C. 801(a)(1)(A).
---------------------------------------------------------------------------

List of Subjects

18 CFR Part 352

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

[[Page 81342]]

18 CFR Part 357

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

18 CFR Part 385

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

    By the Commission.
David P. Boergers,
Secretary.


    In consideration of the foregoing, the Commission amends Parts 352, 
357 and 385 Chapter I, Title 18 of the Code of Federal Regulations, as 
follows:

PART 352--UNIFORM SYSTEMS OF ACCOUNTS PRESCRIBED FOR OIL PIPELINE 
COMPANIES SUBJECT TO THE PROVISIONS OF THE INTERSTATE COMMERCE ACT

    1. The Authority citation for Part 352 is revised to read as 
follows:

    Authority: 49 U.S.C. 60502; 49 App. U.S.C. 1-85 (1988).


    2-4. In Part 352, in List of Instructions and Accounts, 
Definitions, Definition 30, paragraphs (e) through (h) and paragraph 
(j) are revised to read as follows:
    Definitions.
* * * * *
    30. * * *
    (e) ``Temporary difference'' means a difference between the tax 
basis of an asset or liability and its reported amount in the financial 
statements that will result in taxable or deductible amounts in future 
years when the reported amount of the asset or liability is recovered 
or settled, respectively. Some events recognized in financial 
statements do not have tax consequences. Certain revenues are exempt 
from taxation and certain expenses are not deductible. Events that do 
not have tax consequences do not give rise to temporary differences.
    (f) ``Deductible temporary difference'' means temporary differences 
that result in deductible amounts in future years when the related 
asset or liability is recovered or settled, respectively.
    (g) ``Deferred tax asset'' means the deferred tax consequences 
attributable to deductible temporary differences and carryforwards. A 
deferred tax asset is measured using the applicable enacted tax rate 
and provisions of the enacted tax law. A valuation allowance should be 
recognized if it is more likely than not (a likelihood of more than 50 
percent) that some portion or all of the deferred tax asset will not be 
realized.
    (h) ``Deferred tax liability'' means the deferred tax consequences 
attributable to taxable temporary differences. A deferred tax liability 
is measured using the applicable enacted tax rate and provisions of the 
enacted tax law.
* * * * *
    (j) ``Tax allocation within a period'' means the process of 
allocating income tax expense applicable to a given period among 
continuing operations, discontinued operations, extraordinary items, 
and items charged or credited directly to shareholders' equity.
* * * * *

    5. In General Instructions, Instruction 1-6, paragraph (d) is 
revised as follows:
    1-6 Extraordinary, unusual or infrequent items, prior period 
adjustments, discontinued operations and accounting changes.
* * * * *
    (d) Prior Period Adjustments. The correction of an error in the 
financial statements of a prior period and adjustments that result from 
realization of income tax benefits of preacquisition loss carryforwards 
of purchased subsidiaries shall be accounted for as prior period 
adjustments and excluded from the determination of net income from the 
current year. All other revenues, expenses, gains, and losses 
recognized during a period shall be included in the net income of that 
period.
* * * * *

    6. In General Instructions, Instruction 1-12, paragraph (a) is 
amended by removing the words ``where material timing differences (see 
definition 30(e)) occur between pretax accounting income and taxable 
income'' and inserting, in their place, the words ``to all material 
temporary differences (see definition 30(e)) between the tax basis of 
an asset or liability and its reported amount in the financial 
statements that will result in taxable or deductible amounts in future 
years''.

    7. In General Instructions, Instruction 1-12, paragraphs (b) and 
(c) are revised to read as follows:
    1-12 Accounting for income taxes.
* * * * *
    (b) Under the interperiod tax allocation method of accounting a 
deferred tax liability or asset is to be recognized for all temporary 
differences (see definition 30(e)) that result in taxable amounts in 
future years when the related asset or liability is recovered or 
settled. Deferred taxes are classified as current or noncurrent based 
on the classification of the related asset or liability. A carrier 
shall apply the applicable enacted tax rate in determining the amount 
of deferred taxes. The carrier shall adjust its deferred tax 
liabilities and assets for the effect of the change in tax law or rates 
in the period that the change is enacted. The adjustment shall be 
recorded in the proper deferred tax balance sheet accounts based on the 
nature of the temporary difference and the related classification 
requirements of the account.
    (c) An entity shall record the income tax effects of a net 
operating loss carryforward or a tax credit carryforward as a deferred 
tax asset in the year the loss occurs. In the event that it is more 
likely than not (a likelihood of more than 50 percent) that some 
portion of its deferred tax assets will not be realized, a carrier 
shall reduce the asset by a valuation allowance. The valuation 
allowance should be recorded in a separate subaccount of the deferred 
tax asset account. The carrier shall disclose full particulars as to 
the nature and amount of each type of operating loss and tax credit 
carryforward in the notes to its financial statements.

    8. In General Instructions, Instruction 1-12, paragraph (e) is 
amended by removing the words ``Accumulated deferred income tax 
credits'' and adding, in their place, the words ``Accumulated Deferred 
Income Tax Liabilities''.

    9. In Instructions for Balance Sheet Accounts, Instruction 2-7 is 
revised to read as follows:
    Instructions for Balance Sheet Accounts
* * * * *
    2-7 Contingent assets and liabilities.
    (a) A contingency is an existing condition, situation, or set of 
circumstances involving uncertainty as to possible gain or loss to a 
carrier that will ultimately be resolved when one or more future events 
occur or fail to occur. Resolution of the uncertainty may confirm the 
acquisition of an asset or the reduction of a liability or the loss or 
impairment of an asset or the incurrence of a liability.
    (b) An estimated loss from a contingent liability shall be charged 
to income if it is probable that an asset had been impaired or a 
liability had been incurred and the amount of the loss can be 
reasonably estimated. The carrier shall disclose in a footnote in its 
annual report any accrued contingent liabilities, along with any 
contingent liabilities not meeting both conditions for accrual if there 
is a reasonable possibility that a liability may have been incurred.
    (c) Contingent assets should not be reflected in the accounts. The 
carrier

[[Page 81343]]

shall disclose in a footnote in its annual report any contingencies 
that might result in an asset.
    10. In Instructions for Carrier Property Accounts, Instruction 3-5, 
paragraph (a) is amended by removing the words ``except that the 
related labor expense shall be charged to the maintenance expense 
account''.

    11. In Instructions for Operating Revenues and Operating Expenses, 
Instruction 4-4, paragraph (a) is revised, paragraph (b) is removed, 
and paragraph (c) is redesignated as paragraph (b) to read as follows:
    Instructions for Operating Revenues and Operating Expenses
    4-4 Expense classification. * * *
    (a) Operations and maintenance expense. This group of accounts 
includes all costs directly associated with the operation, repairs and 
maintenance of property devoted to pipeline operations including 
scheduling, dispatching, movement, and delivery of crude oil, oil 
products and other commodities.
* * * * *

    12. In Balance Sheet Accounts, a new Account 14-5 is added to read 
as follows:
    Balance Sheet Accounts
    14-5 Accumulated provision for uncollectible accounts.
    This account shall be credited with amounts provided for losses on 
notes and accounts receivable which may become uncollectible, and also 
with collections on accounts previously charged hereto. This account 
shall be charged with any amounts which have been found to be 
impractical of collection.

    13. In Balance Sheet Accounts, Account 19-5 is revised to read as 
follows:
    Balance Sheet Accounts
    19-5 Deferred income tax assets.
    (a) This account shall include the portion of deferred income tax 
assets and liabilities relating to current assets and liabilities, when 
the balance is a net debit.
    (b) A net credit balance shall be included in Account 59, Deferred 
income tax liabilities.
* * * * *

    14. In Balance Sheet Accounts, Account 45 is revised to read as 
follows:
    Balance Sheet Accounts
* * * * *
    45 Accumulated deferred income tax assets.
    This account shall include the amount of deferred taxes determined 
in accordance with instruction 1-12 and the text of Account 64, 
Accumulated deferred income tax liabilities, when the balance is a net 
debit.
* * * * *

    15. In Balance Sheet Accounts, Account 59 is revised to read as 
follows:
    Balance Sheet Accounts
* * * * *
    59 Deferred income tax liabilities.
    (a) This account shall include the portion of deferred income tax 
assets and liabilities relating to current assets and liabilities, when 
the balance is a net credit.
    (b) A net debit balance shall be included in Account 19-5, Deferred 
income tax assets.
* * * * *

    16. In Balance Sheet Accounts, Account 64, the title is amended by 
removing the word ``credits'' and adding, in its place, the word 
``liabilities''; in paragraph (a), by removing the words ``material 
timing differences (see definitions 30 (g) and (e)) originating and 
reversing in'' and adding, in their place, the words ``changes in 
material temporary differences (see definition 30(e)) during;'' in 
paragraph (d), by removing the word ``unamortized'' and removing the 
word ``timing'' and adding, in its place, the word ``temporary''; and 
in Notes A and B to Account 64, by revising the text to read as 
follows:
    Balance Sheet Accounts
    64 Accumulated deferred income tax liabilities.
* * * * *

    Note A: The portion of deferred assets and liabilities relating 
to current assets and liabilities should likewise be classified as 
current and included in Account 19-5, Deferred Income Tax Assets, or 
Account 59, Deferred Income Tax Liabilities, as appropriate.


    Note B: This account shall include a net credit balance only. A 
net debit balance shall be recorded in Account 45, Accumulated 
deferred income tax assets.

* * * * *

    17. In Operating Expenses, the title ``Operations'' is revised to 
read ``Operations and Maintenance'' and Accounts 300, 310, and 320 are 
revised and Accounts 350 and 390 are added to read as follows:
    Operating Expenses
    Operations and Maintenance
    300 Salaries and wages.
    This account shall include the salaries and wages (including pay 
for holidays, vacations, sick leave and similar payroll disbursements) 
of supervisory and other personnel directly engaged in transportation 
operations and the maintenance and repair of transportation property.
    310 Materials and supplies.
    This account shall include the cost of materials applied in the 
repair and maintenance of transportation property. The salvage value of 
materials recovered in maintenance work shall be credited to this 
account. This account shall also include the cost of supplies consumed 
and expended in operations and in support of the maintenance activity.
    320 Outside services.
    This account shall include the cost of operating and maintenance 
services provided by other than company forces under contract, 
agreement, and other arrangement. The cost of service performed by 
affiliated companies shall be segregated within the account.
* * * * *
    350 Rentals.
    This account shall include the cost of renting property used in the 
operations and maintenance of carrier transportation service, such as 
complete pipeline or segment thereof, office space, land and buildings, 
and other equipment and facilities.
    390 Other expenses.
    This account shall include the expenses of aircraft, vehicles, and 
work equipment used in support of operations and maintenance 
activities; travel, lodging, meals, memberships, and other expenses of 
operating and maintenance employees; and other related operating and 
maintenance expenses that are not defined or classified in other 
accounts.

    18. In Operating Expenses, the undesignated centerhead. 
``Maintenance'' and Accounts 400, 410, 420 and 430 are removed.

    19. In Operating Expenses, General, Accounts 510, 530, and 550 are 
revised and Account 590 is added to read as follows:
    Operating Expenses
* * * * *
    510 Materials and supplies.
    This account shall include the cost of materials and supplies 
consumed and expended for administration and general services.
* * * * *
    530 Rentals.
    This account shall include the cost of renting property used in the 
administration and general operations of carrier transportation 
service, such as complete pipeline or segment thereof, office space, 
land and buildings, and other equipment and facilities.
* * * * *
    550 Employee benefits.
    This account shall include the cost to the carrier of annuities, 
pensions, and benefits for active or retired employees,

[[Page 81344]]

their beneficiaries or designees. Contributions to health or welfare 
funds or payment for similar benefits to or on behalf of employees 
shall be included herein. Premiums, to the extent borne by the carrier, 
for group life, health, accident and other beneficial insurance for 
employees shall also be included in this account.
* * * * *
    590 Other expenses.
    This account shall include the cost of expenses expended for 
administrative and general services including, the expenses of 
aircraft, vehicles, and work equipment used for general purposes; 
travel, lodging, meals, memberships, and other expenses of general 
employees and officers; utilities services; and all other incidental 
general expenses not defined or classified in other accounts.

    20. In Income Accounts, Account 671, paragraph (a) is amended by 
removing the words ``all material timing differences (see definitions 
30 (g) and (e)) originating and reversing in,'' and adding, in their 
place, the words ``changes in material temporary timing differences 
(see definition 30(e)) during''.
    21. In Income Accounts, Account 695, is amended by removing the 
words ``timing differences caused by recognizing an item in the account 
provided for extraordinary items in different periods in determining 
accounting income and taxable income'' and adding, in their place, the 
words ``temporary differences caused by recognizing an item in the 
account provided for extraordinary items''.
    22. In Income Accounts, Account 696, is amended by removing the 
words ``debits or credits for the current accounting period for income 
taxes deferred currently, or for amortization of income taxes deferred 
in prior accounting periods'' and adding, in their place, the words 
``the deferred tax expense or benefit related to temporary 
differences''.

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

    1. The Authority citation for Part 357 is revised to read as 
follows:

    Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C. 
1-85 (1988).


    2. Section 357.2 is revised to read as follows:


Sec. 357.2  FERC Form No. 6, Annual Report of Oil Pipeline Companies.

    (a) Who must file. (1) Each pipeline carrier subject to the 
provisions of section 20 of the Interstate Commerce Act whose annual 
jurisdictional operating revenues has been $500,000 or more for each of 
the three previous calendar years must prepare and file with the 
Commission copies of FERC Form No. 6, ``Annual Report of Oil Pipeline 
Companies,'' pursuant to the General Instructions set out in that form. 
Newly established entities must use projected data to determine whether 
FERC Form No. 6 must be filed.
    (2) Oil pipeline carriers exempt from filing Form No. 6 whose 
annual jurisdictional operating revenues have been more than $350,000 
but less than $500,000 for each of the three previous calendar years 
must prepare and file pages 301, ``Operating Revenue Accounts (Account 
600),'' and 700, ``Annual Cost of Service Based Analysis Schedule,'' of 
FERC Form No. 6. When submitting pages 301 and 700, each exempt oil 
pipeline carrier must include page 1 of Form No. 6, the Identification 
and Attestation schedules.
    (3) Oil pipeline carriers exempt from filing Form No. 6 and pages 
301 and whose annual jurisdictional operating revenues were $350,000 or 
less for each of the three previous calendar years must prepare and 
file page 700, ``Annual Cost of Service Based Analysis Schedule,'' of 
FERC Form No. 6. When submitting page 700, each exempt oil pipeline 
carrier must include page 1 of Form No. 6, the Identification and 
Attestation schedules.
    (b) When to file. This report must be filed on or before March 31st 
of each year for the previous calendar year.
    (c) What to submit. (1) This report form must be filed as 
prescribed in Sec. 385.2011 of this chapter and as indicated in the 
General Instructions set out in the report form, and must be properly 
completed and verified.
    (2) A copy of the report must be retained by the pipeline carrier 
in its files. The conformed copies may be produced by any legible means 
of reproduction.
    (3) Filing on electronic media pursuant to Sec. 385.2011 of this 
chapter will be required with report year 2000, due on or before March 
31, 2001.

PART 385--RULES OF PRACTICE AND PROCEDURE

    3. The Authority citation for Part 385 is revised 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 (1988).


    4. In Sec. 385.2011, paragraph (a)(7) is added to read as follows:


Sec. 385.2011  Procedures for filing on electronic media (Rule 2011).

    (a) * * *
    (7) FERC Form No. 6, Annual Report of Oil Pipeline Companies.
* * * * *
[FR Doc. 00-32382 Filed 12-22-00; 8:45 am]
BILLING CODE 6717-01-P