[Federal Register Volume 66, Number 54 (Tuesday, March 20, 2001)]
[Proposed Rules]
[Pages 15673-15677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6869]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Chapter I

[Docket No. RM01-5-000]


Electronic Tariff Filings

March 14, 2001.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of inquiry and informational conference.

-----------------------------------------------------------------------

SUMMARY: The Federal Energy Regulatory Commission is inviting comments 
on its regulatory requirements regarding the format for electronic 
tariffs filed at the Commission in order to improve the efficiency of 
the tariff filing process. The Commission also is announcing an 
informational conference by Commission staff with interested members of 
the public and industry in order to demonstrate the use of its current 
electronic natural gas tariff system (FASTR) and an example of an 
Extensible Markup language (XML) tagged format. The informational 
conference will also provide a venue for questions, comments, and 
clarifications regarding the matters raised in this NOI.

DATES: The Informational Conference will be held on April 24, 2001. 
Comments on this NOI are due on June 25, 2001.

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

FOR FURTHER INFORMATION CONTACT: Barbara Bourque, Office of Markets, 
Tariffs, and Rates, Federal Energy Regulatory Commission, 888 First 
Street, NE., Washington, DC 20426; telephone (202) 208-2338.

SUPPLEMENTARY INFORMATION:

I. Introduction

    The Federal Energy Regulatory Commission (Commission) is inviting 
comments on its regulatory requirements regarding the format for 
electronic tariffs\1\ filed at the Commission,\2\ in order to improve 
the efficiency of the tariff filing process. Electronic tariffs will 
reduce the burden and expense associated with paper tariffs, and help 
make tariff information available to the public in a faster and more 
efficient manner. In the long run, this effort should reduce the costs 
for the regulated entities.
---------------------------------------------------------------------------

    \1\ For purposes of this Notice of Inquiry (NOI), the term 
``tariff'' includes tariffs, rate schedules, service agreements, and 
conditions of service filed with the Commission.
    \2\ The entities covered by this NOI are those that submit 
tariff filings with the Commission pursuant to the Natural Gas Act, 
the Natural Gas Policy Act, the Outer Continental Shelf Lands Act, 
the Federal Power Act, the Interstate Commerce Act, and any other 
relevant statute. It also includes entities that may make voluntary 
tariff filings, such as reciprocity filings pursuant to Order No. 
888.
---------------------------------------------------------------------------

    The Commission is inviting comments on selected issues related to 
the filing of electronic tariffs in order to develop a notice of 
proposed rulemaking, and thereafter a final rule, with respect to the 
filing of electronic tariffs. Specifically, the Commission is seeking 
comments on how tariffs can most efficiently be filed and maintained 
electronically, and whether the format and structure of tariffs can be 
changed so they provide the most useful information to the Commission 
and the public. The Commission also is establishing a staff 
informational conference, to assist industry participants in the 
preparation of their comments on this NOI. At this conference the 
Commission staff will demonstrate possible methods of electronic tariff 
filing, and issues related to electronic tariff filing can be 
discussed. The conference will be held on April 24, 2001. The 
Commission anticipates that there will be additional opportunities for 
the industry to participate in the development of the technical 
specifications prior to implementation of the electronic filing 
requirement.

II. Background

    In order to increase the efficiency with which it carries out its 
program responsibilities, the Commission has been implementing measures 
to use information technology to reduce the amount of paperwork 
required in its proceedings.\3\ This NOI is a step in the process of 
replacing paper tariffs with electronic tariffs by instituting a 
process that will lead to a final rule requiring the filing of tariffs 
electronically. The Commission advocates the use of the most efficient, 
cost effective, and accurate technology to obtain the data required for 
its use and to inform the public.
---------------------------------------------------------------------------

    \3\ See Electronic Filing of Documents, Order No. 619, 65 FR 
57088 (September 21, 2000), FERC Stats. and Regs., Regulations 
Preambles, para. 31,107 (2000).
---------------------------------------------------------------------------

    Both the legislative and executive branches of the Federal 
government have set as goals the substitution of electronic means of 
communication and information storage for paper means. For example, the 
Government Paperwork Elimination Act directs agencies to provide for 
the optional use and acceptance of electronic documents and signatures, 
and electronic record-keeping, where practical.\4\ Similarly, Office of 
Management and Budget Circular A-130 requires agencies to employ 
electronic information collection techniques by October 2003, where 
such means will reduce the burden on the public, increase efficiency, 
reduce costs, and help provide better service.\5\ This requirement 
applies to all filings, including tariff filings.
---------------------------------------------------------------------------

    \4\ Pub. L. No. 105-277, Sections 1702-1704.
    \5\ Circular A-130, Para. 8.a.1(k).
---------------------------------------------------------------------------

    As part of its statutory responsibilities, the Commission requires 
regulated entities to file tariffs which include, among other things, 
their respective rates, and terms and conditions of service. The gas 
and electric tariffs are filed at the Commission in the form of 
numbered

[[Page 15674]]

tariff sheets.\6\ When changes to the tariffs are required, the 
companies file substitute or revised tariff sheets, which supersede the 
effective tariff sheets on file. The use of tariff sheets as the base 
unit for the tariff allows for changes to be submitted to the 
Commission without the necessity of refiling the entire tariff.
---------------------------------------------------------------------------

    \6\ Such tariff pages are frequently identified using the 
following nomenclature, Third Revised Sheet No. 100, superseding 
Second Revised Sheet No. 100.
---------------------------------------------------------------------------

    Oil pipeline tariffs do not use the tariff sheet format. The tariff 
format consists of parts identified by item numbers. Changes are filed 
either as complete tariffs \7\ or tariff supplements.\8\ The changes 
being made by the new filing are identified by the item number, and can 
be revisions, insertions, and cancellations.
---------------------------------------------------------------------------

    \7\ For example, to indicate that a new tariff had been filed to 
supersede an existing tariff, the tariff woudl state: FERC No. 46 
cancels FERC No. 45.
    \8\ For example, a supplement filed to amend a tariff could be 
identified as: Supplement No. 1 to FERC No. 46.
---------------------------------------------------------------------------

    In 1988, the Commission required natural gas pipelines to file 
formatted electronic versions of certain tariffs on diskette in 
addition to filing paper copies.\9\ These regulations, however, 
retained the tariff page concept. Each pipeline files electronically 
only the tariff page or pages that are being revised. In Order No. 888, 
the Commission required that public utilities submit a complete 
electronic version of all transmission tariffs and service agreements 
in a word processor format, with the diskette labeled as to the format 
(including version) used, initially and each time changes are 
filed.\10\ The electronic filing requirements do not extend to oil 
pipelines, which still are required to file only paper copies of their 
tariffs.
---------------------------------------------------------------------------

    \9\ See Natural Gas Data Collection System, Order No. 493, 53 FR 
15023 (April 27, 1988), FERC Stats. and Regs., Regulations 
Preambles, para. 30,808 (1988), which required the electronic filing 
of Volume No. 1 tariff sheets (18 CFR 154.4). Statements of 
conditions of service made pursuant to Sec. 311 of the Natural Gas 
Policy Act (18 CFR 284.123(e)) and the Outer Continental Shelf Lands 
Act (18 CFR 330.2(b)) are not required to be filed electronically.
    \10\ 61 FR 21540 (May 10, 1996), FERC Stats. and Regs. (1991-
1996), Regulations Preambles para. 31,036 at pp. 31,764-65 (1996).
---------------------------------------------------------------------------

    Since the issuance of the Commission's 1988 rule requiring the 
filing of electronic versions of gas pipeline tariffs, automated 
processes and the Internet have become central to the business 
infrastructure. In recognition of this change and the OMB mandate for 
electronic filing, the Commission's goal is to establish electronically 
maintained tariffs, in lieu of paper tariffs. To achieve this goal, the 
Commission is proposing to require electronic filing of tariffs in a 
format that will make those tariffs easily accessible over the 
Internet. Adopting a format which facilitates easy document access via 
the Internet will make it easy for customers to locate and use the 
tariff provisions of the companies subject to the Commission's 
jurisdiction.
    A second goal in requiring electronic tariff filing is to make it 
possible to analyze tariff information through data base analysis. To 
facilitate data base analysis, the Commission needs to have the tariff 
in an electronic format that allows the Commission and the public to 
extract information from the filing. The tariff contains specific 
information which needs to be captured for analytical purposes. The 
Commission is soliciting comments from industry on the best way to 
structure the tariff to facilitate data base management and analysis. 
Specifically, the Commission is interested in comments on the format 
which will best facilitate the capture of the necessary data.
    In considering electronic filing of tariffs, three issues appear to 
be presented: (1) Whether the existing ``tariff sheet'' model for gas 
and electric tariffs is conducive to electronic filing; (2) whether 
there should be further standardization of tariff formats across 
companies and industries; and (3) what electronic format should be used 
in making the filings.

(1) Sheet vs. Section Based Tariffs

    The filing of tariffs electronically may make obsolete the concept 
of the ``tariff sheet'' as a basic unit for the gas and electric 
tariffs. The ``tariff sheet'' method was designed to permit replacement 
of individual pages in a tariff book. If tariffs are filed 
electronically, there will no longer be a need to physically replace 
pages in a tariff book.
    The use of tariff sheet filing has, in the past, caused certain 
difficulties in finding tariff provisions. In pleadings before the 
Commission, parties frequently refer to the section that is being 
changed rather than the tariff page. For example, reference is 
frequently made to General Terms and Conditions, section 12.1, rather 
than to the particular tariff page on which this section is located. 
Under a tariff sheet method, it can become difficult to determine which 
tariff page is being referenced.
    Another problem with the current system is that the company may 
make multiple filings to change different parts of its tariff language 
or rates on the same tariff page. While these proposed changes are 
pending Commission action, the tariff includes multiple versions of the 
same tariff page, some of which may be effective and others suspended 
and not yet effective. The tariff book also does not include the 
redline/strikeout version of the proposed changes. Thus, it is 
difficult to figure out what the currently effective tariff provisions 
are. A further problem is that when a paragraph of text is added or 
deleted from one page of the tariff, there is a domino effect on many 
of the subsequent pages. Unchanged tariff provisions are pushed forward 
or backward on the subsequent tariff pages. Thus, the company has to 
file changes to many subsequent tariff pages because their appearance 
changes even though there are no substantive changes on those sheets.
    Once the Commission moves to electronic filing, there will no 
longer be a need to replace individual tariff sheets. The Commission, 
therefore, is contemplating a departure from the current sheet-based 
system to a section-based system to facilitate electronic filing and 
administration of tariffs. Under this proposed revision, individual 
sections of a tariff would be filed, reviewed, and authorized as 
sections, independent of specific tariff sheet identification. This 
would permit the electronic filing of the affected sections rather than 
individual pages and would avoid cascading pagination problems 
associated with mid-tariff text insertions.

(2) Need for Standardized Tariff Structure

    The Commission is seeking comments on whether it would be advisable 
to develop a standardized tariff structure or layout either for use 
across all jurisdictional companies, regardless of industry, or whether 
further standards should be developed for each separate industry. 
Currently, for the electric industry, Appendix B to Order No. 888-A 
provides a detailed outline of the structure required for a ``pro forma 
open access transmission tariff.'' \11\ For the natural gas industry, 
the ``form and composition of tariff'' is described in Part 154, 
Subpart B of the Commission's regulations.\12\ For the oil industry, 
the ``form of tariff'' is described at Sec. 341.3 of the Commission's 
regulations.
    The Commission is seeking comment on whether it would be worthwhile 
to develop a standardized layout for tariffs.

[[Page 15675]]

This would not involve any material changes to the substance of 
tariffs. Under this approach, all companies would use the same headings 
(i.e., same outline) for their respective tariffs. The development of a 
standardized tariff could make it easier for the Commission and the 
public to compare similar tariff provisions across companies and 
industries. Also, if changes to the layout or structure of tariffs are 
to be made, it may be more efficient to make those changes at the same 
time the utilities are adapting their tariffs for electronic filing.
    Therefore, the Commission is requesting comment on whether a 
standardized tariff outline should be adopted for all three industries, 
whether such standards should be developed for each industry 
separately, and whether, if such standards are developed, they should 
be undertaken at the same time as the development of electronic filing 
formats. The Commission also is looking at what level of detail should 
be adopted for a standardized tariff outline in order to accommodate 
all three industries. Given the disparities in size and complexity of 
the operations of different companies, and the unique tariff provisions 
that often arise from these disparities, the Commission is seeking 
comment on the level of detail that a standardized tariff should have. 
For example, most tariffs contain sections for general terms and 
conditions, rates, and rate schedules. The Commission is seeking 
comment on whether additional categories should be added and what those 
categories should be.

(3) Format for Electronic Tariff

    Another issue is what electronic format should be used for filings 
to capture the information needed to facilitate data base management. 
The Commission's goal is to adopt a stable, nonproprietary filing 
format that is independent of computer operating systems and that can 
be created using various software applications. The Commission, 
therefore, does not think that filing in proprietary word processing 
formats will provide the needed stability, since these formats are 
constantly being revised and are not easily interchangeable.
---------------------------------------------------------------------------

    \11\ Promoting Wholesale Competition Through Open Access Non-
Discriminatory Transmission Services by Public Utilities; Recovery 
of Stranded Costs by Public Utilities and Transmitting Utilities, 
Order No. 888-A, 62 FR 12274 (March 14, 1997), FERC Stats. and 
Regs., Regulations Preambles para. 31,048 (1997).
    \4\ See 18 CFR 154.101-154.112.
---------------------------------------------------------------------------

    The current electronic gas tariffs are filed as ASCII \13\ text 
files, with header information to identify the information to be 
included for each tariff change, such as pipeline name, tariff number, 
and the Commission order to which the filing refers.\14\ The 
Commission, however, has found that filings using this format 
frequently contain errors that need to be corrected before the filing 
can be accepted. The Commission is looking for comments on whether more 
recently developed methods of electronic formatting would provide a 
more reliable and efficient method of providing for electronically 
filed tariffs. For example, generic, nonproprietary markup languages, 
such as Extensible Markup language (XML), are being used as methods of 
``tagging'' information in documents that can then be separately 
extracted or searched. Tagging identifies specific information 
contained in a document. For example, each filed tariff change could 
include tags for the relevant information, such as the utility name, 
the section being changed, the name for that section, the effective 
date, and certain sections of tariff text. The tagged information could 
then be extracted and separately searched.
---------------------------------------------------------------------------

    \13\ ASCII refers to the American Standard Code for Information 
Interchange, a code for character representation.
    \14\ A sample gas electronic tariff filing is attached as 
Appendix A. (The header information is identified using ``TF'' codes 
which are read by the Commission's FASTR system and do not appear in 
the electronic view.)
---------------------------------------------------------------------------

    In order to aid in the understanding of the issues before comments 
are filed, the Commission staff will hold an informational conference 
at which the current system for managing gas tariffs (FASTR \15\) and 
the use of XML will be explained and demonstrated.
---------------------------------------------------------------------------

    \15\ FASTR can be accessed on the Commission's website at 
www.ferc.fed.us/gas/gastariffs/index.htm.
---------------------------------------------------------------------------

III. Specific Questions For Response by Commenters

    1. The Commission seeks comments on whether to adopt a section-
based tariff system, as opposed to a sheet-based system, for all 
utilities. The following are some issues that should be considered.
    (a) Would adopting a section-based system be easier to use in 
referencing tariff provisions? What problems arise by departing from a 
sheet-based system for electric and gas utilities?
    (b) How should a section-based system be organized? Should 
utilities be able to file any section of the tariff or should there be 
a uniform unit of tariff text that would need to be filed? For example, 
should major tariff sections, labeled sub-sections, numbered 
paragraphs, or some other unit be the smallest section afforded 
separate authorization status?
    2. The Commission also seeks comment on the merits of requiring a 
restructuring of the internal tariff content so that common provisions 
would always be found in similarly labeled and organized sections for 
all companies within a particular industry and/or across industries. 
The following are some issues that should be addressed.
    (a) Would a common tariff structure be beneficial either across 
industries or within each industry? For example, comments should focus 
on whether differences in tariff organization create difficulties for 
customers doing business on several pipelines/transmission companies.
    (b) Should the same common tariff structure apply across the gas 
pipeline, electric public utility, and oil pipeline industries or 
should a separate standard be adopted for each industry?
    (c) If standards are to remain industry specific, are the current 
form and composition of tariff requirements sufficient for each 
industry or is there a need for further standardization?
    (d) What are the issues involved in standardizing the tariff format 
within industries and across industries? What would be the costs, 
administrative difficulties, and business impacts of achieving a common 
tariff structure? Are the benefits worth the costs?
    (e) Would it be more efficient to standardize tariff structure at 
the same time that the requirements for electronically filing tariffs 
are developed or should these efforts be undertaken independently?
    (f) Instead of requiring companies to physically restructure their 
tariffs, could the same benefits be achieved by including information 
(e.g. tags, links, or bookmarks) along with the tariff that will 
identify a standardized topic or topics addressed by particular 
sections? In concept, this would resemble an electronic index which 
would permit a user to identify all tariff sections associated with 
standardized topics.
    3. Comments are requested on the electronic format to be used in 
making electronic tariff filings, and should address the following 
issues.
    (a) What are the performance criteria that should be used in 
establishing the format?
    (b) What type of format should be used (e.g., ASCII or XML tagged 
data)? If a tagged format is used, should tagging be used to identify 
tariff content elements, or should tagging be used only to identify 
tariff transmittal information? What data should be tagged (e.g., 
rates, services, etc.) and to what level of detail?
    (c) What formats do jurisdictional entities currently use to create 
and maintain their tariffs and how easy would it be to change those 
formats to accommodate other possible formats, such as tagged file 
formats, like XML?

[[Page 15676]]

What issues would a requirement to use XML pose for the regulated 
companies?
    (d) To what extent, if any, should the formats differ for different 
types of filings, e.g., electric wholesale tariffs, as opposed to 
electric or gas transmission tariffs.
    4. The obligation that tariff sheets be kept open and available for 
public inspection applies to each regulated firm in the gas, electric, 
and oil sectors. The Commission maintains a complete set of tariff 
sheets for public access and tracks the effectiveness status of each 
tariff sheet.
    (a) Does an electronic tariff system present new issues in assuring 
that tariff provisions are on file and available for public inspection?
    (b) How do the regulated industries keep track of the status of 
tariff provisions (e.g. effective, proposed, suspended, etc.) and how 
is this status presented to the public? Should a link to the 
authorizing Commission order be required on Web-based presentation 
systems to allow customers to verify the effectiveness status of 
individual tariff sections?
    (c) If both the Commission and the regulated industries maintain 
separate systems for tariff presentation, how can these systems be 
synchronized?
    (d) In the event that certain information is determined to be 
confidential and not available for public review, how should such 
information be filed electronically?
    5. What procedure should be used to move to an electronic tariff? 
Should the Commission require all tariffs to be re-filed in a revised 
electronic format on a set compliance schedule? If so, what is a 
reasonable compliance schedule? Or, should the compliance obligation be 
triggered when a company makes its first tariff filing after 
implementation of the standards?

IV. Informational Conference

    The Commission's staff will convene an informational conference on 
April 24, 2001 with interested members of the public and industry in 
order to demonstrate the use of its current electronic natural gas 
tariff system (FASTR) and an example of an XML tagged format. The 
informational conference will also provide a venue for questions, 
comments, and clarifications regarding the matters raised in this NOI.

V. Procedure for Comments

    The Commission invites interested persons to submit comments, data, 
views, and other information concerning the matters set out in this 
notice.
    To facilitate the Commission's review of the comments, commenters 
are requested to provide an executive summary of their position on the 
issues raised in the NOI. Commenters are requested to identify each 
specific question posed by the NOI that their discussion addresses and 
to use appropriate headings. Additional issues the commenters wish to 
raise should be identified separately. The commenters should double 
space their comments.
    Comments may be filed on paper or electronically via the Internet 
and must be received by the Commission within 60 days after the staff 
technical conference. Those filing electronically do not need to make a 
paper filing. For paper filings, the original and 14 copies of such 
comments should be submitted to the Office of the Secretary, Federal 
Energy Regulatory Commission, 888 First Street, NE., Washington, DC 
20426 and should refer to Docket No. RM01-5-000.
    Comments filed via the Internet must be prepared in WordPerfect, MS 
Word, Portable Document Format, or ASCII format. To file the document, 
access the Commission's website at http://www.ferc.fed.us and click on 
``Make An E-Filing,'' and then follow the instructions for each screen. 
First time users will have to establish a user name and password. The 
Commission will send an automatic acknowledgment to the sender's E-Mail 
address upon receipt of comments.
    User assistance for electronic filing is available at 202-208-0258 
or by E-Mail to [email protected]. Comments should not be submitted 
to the E-Mail address. All comments will be placed in the Commission's 
public files and will be available for inspection in the Commission's 
Public Reference Room at 888 First Street, NE., Washington D.C. 20426, 
during regular business hours. Additionally, all comments may be 
viewed, printed, or downloaded remotely via the Internet through FERC's 
Homepage using the RIMS link. User assistance for RIMS is available at 
202-208-2222, or by E-Mail to [email protected].

VI. 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 the Commission's website (http://www.ferc.fed.us) and 
in FERC's Public Reference Room during normal business hours (8:30 a.m. 
to 5:00 p.m. Eastern time) at 888 First Street, NE., Room 2A, 
Washington, DC 20426.
    From the Commission's website 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 is 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 the Commission's website 
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 at (202) 208-1371 (E-
Mail to [email protected]).
    During normal business hours, documents can also be viewed and/or 
printed in the Commission's Public Reference Room, where RIMS, CIPS, 
and the Commission's website are available. User assistance is also 
available.

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

Appendix A

Sample Electronic Tariff Filing

TF01003345111700Chandeleur Pipe Line Company
TF021 20Second Revised Volume No. 1
TF0351 100 5P158First Revised Sheet No. 51
TF04 Original Sheet No. 51
TF05C. D. Sorensen, Regulatory Specialist
TF06112000102700RM96-1-014 et al. 122000
TF079361093

GENERAL TERMS AND CONDITIONS

8.0 ACCOUNTING PROCEDURES (Cont'd)

    8.4 Penalties (cont'd)
    (a) Scheduling Penalties (cont'd)
    (4) A scheduling penalty shall be accessed at any Receipt or 
Delivery Point where the month-end scheduling variance exceeds the 
tolerance of five (5) percent of the monthly nominations for that 
point.
    (5) Should the month-end variance be due to Chandeleur's 
inability to receive or deliver

[[Page 15677]]

gas at that point, then the scheduling penalty shall not be 
assessed.
    (6) The scheduling penalty shall be the current Rate Schedule IT 
Usage Rate multiplied by the quantity of gas in excess of the 
allowed variance.
    (7) Any scheduling penalty assessed by Chandeleur against an 
affiliate will be flowed through to its firm Shippers. The penalties 
flowed through to firm Shippers will be apportioned on the basis of 
the firm Shippers' weighted contract demand, during the applicable 
penalty period.
    (b) Imbalance Management Service
    (1) A pipeline imbalance is where Chandeleur over or under 
delivers Shipper's actual receipts versus deliveries during any 
calendar month. Shippers can find their pipeline imbalance in their 
monthly Gas Balance Statement showing monthly and cumulative 
imbalances. Chandeleur will post on its website monthly pipeline 
imbalances along with Shippers' cumulative imbalances to facilitate 
Shippers correcting their imbalances by offsetting with other 
Shipper's imbalances.
    (2) Two six (6) month balancing periods are defined as November 
1 through April 30 and May 1 through October 31.

TF0352 200 5P158Second Revised Sheet No. 52
TF04 First Revised Sheet No. 52
TF05C. D. Sorensen, Regulatory Specialist
TF06112000102700RM96-1-014 et al. 122000
TF079361093

GENERAL TERMS AND CONDITIONS

8.0 ACCOUNTING PROCEDURES (Cont'd)

    8.4 Imbalance Management Services (cont'd)
    (b) Imbalance Management Service (cont'd)
    (3) At the end of each six (6) month balancing period, 
Chandeleur will notify each Shipper whose pipeline imbalance exceeds 
the tolerance of either 2% of the Shipper's total receipts or 10,000 
Dth. The Shipper will then have 45 days, from the date of the 
notification mailed by Chandeleur, in which to correct its 
imbalance. Shippers or their Agents may net their imbalance against 
any other Transportation Agreements on any Rate Schedule they have 
with Chandeleur and/or trade their imbalances against any 
Transportation Agreements on any Rate Schedule that other Shippers 
may have with Chandeleur without any limitation.
    (4) Should Shipper not correct its imbalance within the 45-day 
grace period, Chandeleur shall arrange for offsetting contract 
imbalance by first netting against Shipper's other Transportation 
Agreements on any Rate Schedule with Chandeleur and then, if 
necessary, trading against other Shipper's Transportation Agreements 
on any Rate Schedule. Shipper will be obligated to settle per the 
pre-arranged contract imbalance offset.
    (5) The 45-day grace period shall be extended by the number of 
days, if any, that Chandeleur is unable to receive or deliver all 
nominated volumes of gas.
    (6) Upon correction of the imbalance, Chandeleur will reduce 
Shipper's imbalance by the net pipeline imbalance. Any imbalance 
remaining after correction will be rolled forward into the next six 
(6) month balancing period.

[FR Doc. 01-6869 Filed 3-19-01; 8:45 am]
BILLING CODE 6717-01-P