[Federal Register Volume 65, Number 251 (Friday, December 29, 2000)]
[Proposed Rules]
[Pages 82961-82963]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-33324]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 284

[Docket No. RM96-1-015]


Standards for Business Practices of Interstate Natural Gas 
Pipelines

December 21, 2000.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of staff technical conference.

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SUMMARY: In Order No. 587-M, 65 FR 7728 (Dec. 11, 2000), the Federal 
Energy Regulatory Commission directed its staff to convene a technical 
conference concerning standards to permit shippers to designate and 
rank the contracts under which gas will flow on a pipeline's system. 
This notice establishes the date for the conference and the procedures 
by which interested parties can seek to participate in the conference.

DATES: The conference will be held February 27, 2001. Those interested 
in making presentations or participating in discussions should indicate 
their interest by January 16, 2001 by a letter addressed to the 
Secretary, Federal Energy Regulatory Commission.

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

FOR FURTHER INFORMATION CONTACT: Michael Goldenberg, Office of the 
General Counsel, Federal Energy Regulatory Commission, 888 First 
Street, NE., Washington, DC 20426.

[[Page 82962]]


SUPPLEMENTARY INFORMATION:
    Take notice that on February 27, 2001, the Staff of the Federal 
Energy Regulatory Commission will hold a public conference to discuss 
cross-contract ranking and confirmation standards as directed by the 
Commission in Order No. 587-M.\1\ The conference will begin at 9:30 
a.m. at the Commission's offices, 888 First Street, N.E., Washington, 
DC. All interested persons are invited to attend.
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    \1\ Standards for Business Practices of Interstate Natural Gas 
Pipelines, Order No. 587-M, 65 FR 77285(Dec. 11, 2000), 93 FERC 
para. 61,223 (November 30, 2000), III FERC Stats. & Regs. 
Regulations Preambles para. _(Nov. 30, 2000).
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    Cross-contract ranking refers to the ability of shippers to 
allocate gas supplies across transportation contracts so that the 
shipper can choose the contract which provides for the most economical 
transportation. The Gas Industry Standards Board (GISB) had considered 
a standard for cross-contract ranking which relied on entity-to-entity 
confirmation, but a number of parties raised objections to using this 
method of confirmation. As set forth in Order No. 587-M, the purpose of 
this conference is to obtain additional information about how 
confirmation is now conducted, to clarify what issues are in dispute, 
and to determine if common ground between the parties can be found. 
Among the issues identified by the Commissions to be considered at the 
conference are:
     How confirmation takes place using entity-to-entity 
confirmation and contract confirmation.
     How package identification currently is used in nomination 
and confirmation processes.
     How the issues relating to cross-contract ranking differ 
depending on the nomination model used by the pipeline, i.e., pathed, 
non-pathed, or pathed non-threaded.
     Whether cross-contract ranking can be achieved efficiently 
without entity-to-entity confirmation.
     Whether verification of a shipper's contractual priority 
needs to occur on a daily basis through the confirmation process or 
whether priority can be verified in other ways, for example, by 
examining the shipper's contract or using the Index of Customers.
     Whether a uniform resolution of the need for supplemental 
information is needed or whether this issue can be resolved on a case-
by-case basis, for example, by requiring those pipelines that 
previously provided contract information to continue that practice, 
while not imposing additional burdens on other pipelines.
     Whether, if confirmation of transportation priority is 
needed, a priority indicator would be a reasonably burden-free method 
of transmitting the information.\2\
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    \2\ See Comments on Proposed Rule of National Fuel Gas 
Distribution Corporation, Docket No. RM96-1-015, at 8 (filed August 
7, 2000) (proposing use of capacity-type indicator to transmit 
information about transportation priorities).
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     Whether entity-to-entity confirmation has value in 
simplifying the confirmation process or whether further disaggregation 
to the gas package identification level is necessary.
     Whether gas package identification would protect customers 
against the possibility that the seller will allocate all gas supplies 
to the highest price contract or whether such protection can be better 
achieved through the contract between buyer and seller. For instance, 
even if confirmation was at the package identification level, the 
seller would still rank the most expensive package first.
     Whether limiting confirmations to producers, rather than 
working interest owners, meaningfully reduces the confirmation burden.
     Whether producers can use independent third-parties, as 
opposed to commercially interested point operators, to handle the 
confirmation process with respect to that information considered the 
most sensitive.
    In order to understand the issues raised by the parties, 
information is needed on the methods by which pipelines currently 
conduct nominations and confirmations. The conference, therefore, will 
be organized in two stages. The first stage will consist of 
presentations of factual information describing how the current 
nomination and confirmation process operates. The second will involve 
discussions among market participants as to the issues raised with 
respect to whether and how to standardize the confirmation process to 
permit cross-contract ranking.
    The presentations should provide perspective on the ways in which 
pipelines across the grid now conduct nominations and confirmations. 
Such information should include: how different pipelines confirm, 
whether using the contract and entity-to-entity models or other models; 
how nominations and confirmations differ depending on whether the 
pipeline uses the pathed, non-pathed, or pathed non-threaded model; how 
package IDs are used; and the different confirmation models used in the 
production area.
    Persons interested in making presentations or participating in the 
discussions should indicate their interest by January 16, 2001, by a 
letter addressed to the Secretary, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, and should 
refer to Docket No. RM96-1-015. Each request to participate must 
include a contact person, telephone number and E-mail address.
    Each request also must indicate whether the person is interested in 
making a presentation or participating in the issue discussion. For 
those interested in making presentations, the request should indicate 
what topics the presentation will cover and how broadly the speaker can 
address nomination and confirmation practices with respect to multiple 
pipelines. Because of the need to limit the number of presentations, 
those with common interests are encouraged to choose a single 
spokesperson to represent their interests. Those interested in 
participating in the issue discussion should indicate what topics they 
are interested in discussing.
    After receipt of the requests, a subsequent notice will be issued 
setting forth the conference format. Depending on the number of 
presentations, it may be necessary for presenters to meet with staff 
prior to the conference or through conference calls to coordinate the 
presentations.
    The conference will be transcribed, so those not attending can 
review the proceedings. Additional comments on the issues raised by the 
conference can be filed within 30 days of the conference.
    The Capitol Connection offers all Open and special FERC meetings 
live over the Internet as well as via telephone and satellite. For a 
reasonable fee, you can receive these meetings in your office, at home 
or anywhere in the world. To find out more about The Capitol 
Connection's live Internet, phone bridge, or satellite coverage, 
contact David Reininger or Julia Morelli at (703) 993-3100 or visit the 
website (www.capitolconnection.gmu.edu). The Capitol connection also 
offers FERC Open Meetings through its Washington, DC area television 
service.
    In addition, National Narrowcast Network's Hearing-On-The-Line 
service covers all FERC meetings live by telephone so that interested 
persons can listen at their desks, from their homes, or from any phone, 
without special equipment. Billing is based on time on-line. Call (202) 
966-2211.
    Those interested in obtaining transcripts of the conference need to 
contact Ace Federal Reporters, at 202-347-3700. Anyone interested in 
purchasing videotapes of the meeting should call VISCOM at (703) 715-
7999.

[[Page 82963]]

    Questions about the conference should be directed to: Michael 
Goldenberg, Office of the General Counsel, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426; 202-208-2294, 
[email protected].

Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 00-33324 Filed 12-28-00; 8:45 am]
BILLING CODE 6717-01-M