[Federal Register Volume 66, Number 203 (Friday, October 19, 2001)]
[Proposed Rules]
[Pages 53134-53139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26328]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 284

[Docket No. RM96-1-019]


Standards for Business Practices of Interstate Natural Gas 
Pipelines

October 12, 2001.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission is proposing to amend 
its regulations governing standards for conducting business practices 
with interstate natural gas pipelines to require that interstate 
pipelines permit releasing shippers to recall released capacity and 
renominate that recalled capacity at any of the scheduling 
opportunities provided by interstate pipelines. The proposed rule is 
designed to synchronize the Commission's regulation of recalled 
capacity with its standards for intra-day nominations and to provide 
releasing shippers with increased flexibility in structuring capacity 
release transactions.

DATES: Comments are due November 19, 2001.

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

FOR FURTHER INFORMATION CONTACT:

Michael Goldenberg, Office of the General Counsel, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 
(202) 208-2294.

Marvin Rosenberg, Office of Markets, Tariffs, and Rates, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 
(202) 208-1283.
Kay Morice, Office of Markets, Tariffs, and Rates, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 
(202) 208-0507.

SUPPLEMENTARY INFORMATION:   

Standards for Business Practices of Interstate Natural Gas 
Pipelines

[Docket Nos. RM96-1-019]

Regulation of Short-Term Natural Gas Transportation Services;

[Docket No. RM98-10-008]

Regulation of Interstate Natural Gas Transportation Services

[Docket No. RM98-12-008]

    The Federal Energy Regulatory Commission (Commission) proposes to 
amend Sec. 284.12(c)(1)(ii) of its open access regulations to require 
that interstate pipelines permit releasing shippers to recall released 
capacity and renominate that recalled capacity at any of the scheduling 
opportunities provided by interstate pipelines. The proposed rule is 
intended to create more flexibility for firm capacity holders on 
interstate pipelines by synchronizing the Commission's regulation of 
recalled capacity with its standards for intra-day nominations. The 
proposed rule is intended to benefit the public by providing firm 
capacity holders with increased flexibility in structuring capacity 
release transactions that will result in enhanced competition across 
the interstate pipeline grid.

I. Background

    In Order No. 636, the Commission adopted regulations permitting 
shippers (releasing shippers) to release their capacity to other 
shippers (replacement shippers).\1\ Under these regulations, releasing 
shippers were permitted to ``release their capacity in whole or in 
part, on a permanent or short-term basis, without restriction on the 
terms and conditions of the release.'' \2\ The regulation permits 
releasing shippers to impose terms on a release transaction under which 
the releasing shipper reserves the right to recall that capacity to use 
the capacity itself. As an example, a shipper might include a recall 
condition in the event that temperature drops below a pre-determined 
level.\3\
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    \1\ 18 CFR 284.8 (2001).
    \2\ 18 CFR 284.8(b).
    \3\ Pipeline Service Obligations and Revisions to Regulations 
Governing Self-Implementing Transportation Under Part 284 of the 
Commission's Regulations, Order No. 636, 57 FR 13267 (Apr. 16, 
1992), FERC Stats. & Regs. Regulations Preambles [Jan. 1991-June 
1996] para. 30,939, at 30,418 (Apr. 8, 1992).
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    In July 1996, in Order No. 587,\4\ the Commission incorporated by 
reference

[[Page 53135]]

consensus standards approved by the Gas Industry Standards Board (GISB) 
designed to standardize business practices and communication protocols 
of interstate pipelines in order to create a more integrated and 
efficient pipeline grid. GISB is a private, consensus standards 
developer composed of members from all segments of the natural gas 
industry.
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    \4\ Standards For Business Practices Of Interstate Natural Gas 
Pipelines, Order No. 587, 61 FR 39053 (Jul. 26, 1996), FERC Stats. & 
Regs. Regulations Preambles [July 1996-December 2000] para. 31,038 
(Jul. 17, 1996).
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    One aspect of GISB's standards adopted in Order No. 587 covered 
capacity release transactions. Of relevance here, two standards, 5.3.6 
and 5.3.7, apply to recalls of capacity release transactions.

Standard 5.3.6: If the releasing shipper wishes to recall capacity 
to be effective for a gas day, the notice should be provided to the 
transportation service provider and the acquiring shipper no later 
than 8 A.M. Central Clock Time on nomination day.\5\
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    \5\ 18 CFR 284.12(b)(1)(v) (2001), Capacity Release Related 
Standard 5.3.6.
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Standard 5.3.7: There should be no partial day recalls of capacity. 
Transportation service providers should support the function of 
reputting by releasing shippers.\6\
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    \6\ 18 CFR 284.12(b)(1)(v) (2001), Capacity Release Related 
Standard 5.3.7.

In this context, a partial day recall refers to a recall condition that 
applies only to part of gas day, rather than the full gas day.\7\
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    \7\ Under the GISB standards, a gas day runs from 9 a.m. central 
clock time (CCT) on Day 1 to 9 a.m. CCT the next day (Day 2). 18 CFR 
284.12(b)(1)(i), Nominations Related Standards 1.3.1.

    In 1996, when GISB first adopted these standards, GISB's standards 
provided for one nomination, at 11:30 a.m. CCT \8\ for the next gas day 
and only one intra-day nomination at an indeterminate time. In order to 
create a more standardized intra-day nomination schedule,\9\ GISB 
amended its standards to provide for three standardized intra-day 
nomination opportunities: an Evening nomination at 6 p.m. CCT to take 
effect on the next gas day, an Intra-Day 1 nomination at 10 a.m. CCT to 
take effect at 5 p.m. CCT on the same gas day, and an Intra-Day 2 
nomination at 5 p.m. CCT to take effect at 9 p.m. CCT on the same gas 
day.\10\ GISB, however, has not amended its capacity release recall 
standards to take into account its adoption of these standardized 
intra-day nomination opportunities.
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    \8\ CCT refers to Central Clock Time, which includes an 
adjustment for day light savings time. See 18 CFR 
Sec. 284.12(b)(1)(i), Nominations Related Standards 1.3.1.
    \9\ See Order No. 587-C, 62 FR at 10687, FERC Stats. & Regs. 
Regulations Preambles [July 1996-December 2000] para. 31,050, at 
30,585 (rejecting a proposed GISB intra-day nomination standard for 
being vague and non-standardized and providing additional time for 
GISB to develop a standardized intra-day nomination schedule).
    \10\ 18 CFR 284.12(b)(1)(i) (2001), Nominations Related Standard 
1.3.2.
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    In Order No. 637, the Commission adopted Sec. 284.12(c)(1)(ii) of 
its regulations which requires interstate pipelines to ``permit 
shippers acquiring released capacity to submit a nomination at the 
earliest available nomination opportunity after the acquisition of 
capacity.'' \11\ The purpose of this regulatory change was to permit 
capacity release transactions to take place on an intra-day basis so 
that released capacity can compete with pipeline capacity on a 
comparable basis.\12\ The adoption of Sec. 284.12(c)(1)(ii) now permits 
shippers to acquire released capacity at any intra-day nomination 
opportunity and to nominate coincident with their acquisition of 
capacity.\13\
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    \11\ 18 CFR 284.12(c)(1)(ii) (2001).
    \12\ Regulation of Short-Term Natural Gas Transportation 
Services, Order No. 637, 65 FR 10156, 101-58-60 (Feb. 25, 2000), 
FERC Stats. & Regs. Regulations Preambles [July 1996-December 2000] 
para. 31,091, at 31,297 (Feb. 9, 2000).
    \13\ Prior to Order No. 637, GISB's existing capacity release 
nomination standards had not been amended to reflect the intra-day 
nomination standards. Thus, prior to Order No. 637, a shipper 
acquiring released capacity had to acquire the capacity and notify 
the pipeline by 9 a.m. CCT to nominate at 11:30 a.m. CCT for the 
next gas day and could not avail itself of any intra-day nomination 
opportunities for the current gas day.
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    On February 1, 2001, GISB filed a report with the Commission, in 
Docket No. RM98-10-000, concerning its development of standards 
regarding partial day recalls of capacity. According to GISB, some 
members believed that partial day recalls fell within the purview of 
the scheduling equality requirements of Order No. 637, while others did 
not. Other members, GISB asserts, believe that partial day recalls are 
a valid business practice, irrespective of whether this practice is 
required by Order No. 637. Due to these disagreements, GISB reports it 
has been unable to reach consensus on how to proceed.
    On March 16, 2001, AGA filed, in Docket Nos. RM98-10-008 and RM98-
12-008,\14\ a ``Reply to February 1, 2001, Gas Industry Standards Board 
Report and Petition for Clarification and Directive from FERC Regarding 
Requirement for Capacity Release Scheduling Equality.'' AGA argues that 
the Commission should require pipelines to allow partial day recalls as 
part of their compliance with Sec. 284.12(c)(1)(ii). Ten comments to 
AGA's request were filed.\15\
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    \14\ Because the Commission is issuing this NOPR on the issues 
raised in the AGA filing, Docket Nos. RM98-10-008 and RM98-12-008 
are being terminated.
    \15\ Consolidated Edison Company of New York, Inc. and Orange 
and Rockland Utilities (ConEd), Delmarva Power & Light Company 
(Delmarva), Duke Energy Gas Transmission (Algonquin Gas Transmission 
Company, East Tennessee Natural Gas Co., Egan Hub Partners, L.P., 
and Texas Eastern Transmission, L.P.) (DEGT), Dynegy Marketing and 
Trade (Dynegy), El Paso Pipeline Companies (El Paso), Enron 
Interstate Pipelines (Enron), Interstate Natural Gas Association of 
America (INGAA), Keyspan Delivery Companies (Keyspan), Natural Gas 
Supply Association (NGSA), Public Service Commission of the State of 
New York (PSCNY).
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II. Discussion

    The Commission is proposing to revise Sec. 284.12(c)(1)(ii) of its 
regulations to require pipelines to permit recalls of capacity at each 
nomination opportunity. Specifically, the Commission is proposing to 
require pipelines to permit shippers to recall released capacity and 
renominate such recalled capacity at each nomination opportunity 
provided by the pipeline according to the notice and bumping provisions 
applicable to interruptible shippers.\16\
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    \16\ The Commission also is proposing to rescind the 
incorporation by reference of GISB standard 5.3.6 (which requires 
notice of capacity release recalls by 8 a.m. CCT) and the first 
sentence of GISB Standard 5.3.7 (which prohibits partial day recalls 
of capacity). The Commission is retaining the portion of Standard 
5.3.7 that requires transportation service providers to ``support 
the function of reputting by releasing shippers.'' Reputting refers 
to the ability of a releasing shipper to include a condition in a 
release under which it can recall capacity when needed and, after 
the recall has ended, the capacity will revert (be reputted) to the 
replacement shipper, without the need for a new release.
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    This proposal will enable releasing shippers to coordinate recalls 
of capacity release transactions and renominations of that capacity 
with the current intra-day nomination cycle. Under this proposal, 
recall rights would operate according to the same timelines that now 
apply to interruptible transportation.
    This proposal is intended to ensure that the regulations relating 
to capacity release recalls remain consistent with the original intent 
of the Commission's capacity release regulations by providing releasing 
shippers with the flexibility to structure capacity release 
transactions that best fit their business needs. The proposal also 
seeks to foster greater competition for pipeline capacity by creating 
parity between scheduling of capacity release transactions and 
scheduling of pipeline interruptible service. By enabling releasing 
shippers to recall and renominate capacity quickly, they will have 
greater incentive to release capacity, providing capacity purchasers 
with an alternative to purchasing pipeline interruptible service. At 
the same time, this proposal will provide replacement shippers whose 
capacity is recalled the same advance notice and

[[Page 53136]]

protection from bumping as is provided to interruptible shippers under 
the Commission's regulations.
    The Commission has placed great reliance on GISB's development of 
consensus standards, because the industry is the most knowledgeable 
about how it operates and it is the industry that must operate under 
these standards.\17\ However, when GISB has been unable to reach 
consensus on issues concerning Commission policy, the Commission has 
resolved the policy dispute so that the standards development process 
can continue.\18\
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    \17\ Order No. 587, 61 FR at 39057 (Jul. 26, 1996), FERC Stats. 
& Regs. Regulations Preambles [July 1996-December 2000] para. 
31,038, at 30,059 (resolving dispute over bumping of interruptible 
service by firm service).
    \18\ Standards For Business Practices Of Interstate Natural Gas 
Pipelines, Order No. 587-G, 63 FR 20072 (Apr. 23, 1998), FERC Stats. 
& Regs. Regulations Preambles [July 1996-December 2000] para. 
31,062, at 30-668-72 (Apr. 16, 1998).
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    A consensus of GISB's membership adopted its current standards for 
capacity release recalls when GISB's standards provided for only one 
nomination a day, at 11:30 a.m. CCT and a single non-standardized 
intra-day nomination . But the circumstances under which the recall 
standards were developed have markedly changed as the number of 
nomination opportunities have now expanded to four nomination 
opportunities. At the same time, it is apparent that the consensus 
supporting GISB's existing recall standards no longer exists, and GISB 
itself has recognized that it can no longer make progress in resolving 
this issue. In these circumstances, the Commission must resolve the 
policy question regarding partial day recalls.
    In Order No. 636, the Commission established the capacity release 
mechanism to create competition with pipeline firm and interruptible 
transportation.\19\ One of the fundamental tenets of the Commission's 
capacity release regulations is that releasing shippers have the 
opportunity to establish any recall conditions for their capacity. 
Section 284.8(b) expressly permits shippers to ``release their capacity 
in whole or in part, on a permanent or short-term basis, without 
restriction on the terms and conditions of the release.'' \20\ In Order 
No. 636-A, the Commission recognized that ``a releasing shipper may 
include terms and conditions, such as recall rights, that will ensure 
it has adequate peak day capacity.'' \21\ Thus, all recall conditions, 
including partial day recalls are consistent with the Commission's 
regulations. Moreover, in Order No. 637, the Commission sought to 
create greater scheduling parity between capacity release transactions 
and pipeline services by enabling capacity release transactions to take 
place on an intra-day basis at each of the four scheduling 
opportunities.\22\ While this regulatory change enables shippers to 
release capacity at any nomination opportunity, the existing GISB 
recall standards do not permit releasing shippers to take full 
advantage of the intra-day nomination opportunities by recalling the 
capacity and renominating that capacity at each of the four scheduling 
opportunities. Allowing partial day recalls is, therefore, consistent 
with the overall regulatory changes promulgated in Order No. 637.
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    \19\ Order No. 636-A, 57 FR 36128 (Aug. 12, 1992), FERC Stats. & 
Regs. Regulations Preambles [Jan. 1991-June 1996] para.30,950, at 
30,556 (Aug. 3, 1992) (``competition between pipeline capacity and 
released capacity helps ensure that customers pay only the 
competitive price for the available capacity'').
    \20\ 18 CFR 284.8(b) (emphasis added).
    \21\ Order No. 636-A, 57 FR 36128 (Aug. 12, 1992), FERC Stats. & 
Regs. Regulations Preambles [Jan. 1991-June 1996] para. 30,950, at 
30,558 (Aug. 3, 1992).
    \22\ 18 CFR 284.12(c)(1)(ii) (2001) (permitting shippers 
acquiring released capacity to submit a nomination at the earliest 
available nomination opportunity after the acquisition of capacity).
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    Permitting partial day recalls will add flexibility to shippers' 
rights and will better enable releasing shippers to offer released 
capacity that competes with the pipelines' interruptible service. The 
current GISB standards inhibit the ability of releasing shippers to 
release capacity because of their inability to quickly reclaim capacity 
when they require it for their own use. For example, under the current 
GISB standards, a releasing shipper that meets the 8 a.m. CCT 
notification time is unable to recall its capacity and submit a timely 
nomination for the next gas day at the 6 p.m. CCT Evening Nomination 
cycle. Moreover, a shipper that misses the 8 a.m. CCT recall 
notification time will miss four nomination opportunities and will be 
unable to have its volume flow until 48 hours after it submits the 
recall notification.\23\
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    \23\ A releasing shipper that misses the 8 a.m. CCT notification 
time cannot renominate that capacity until 11:30 a.m. CCT the next 
day, a nomination under which gas will not flow until 9 a.m. CCT the 
day after.
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    As a result of such lengthy delays, releasing shippers may not be 
able to use their recall rights as effectively as possible to ensure 
that they can retain adequate peak day capacity for their own needs. 
The delay in rescheduling recalled capacity also can have an adverse 
competitive impact on the market by reducing the amount of capacity 
available for release. As AGA points out, if an LDC is a provider of 
last resort under a state unbundling initiative and is given notice 
that insufficient supply is being delivered to its city-gate, the LDC 
will need to recall released capacity for later in the same day or, at 
least, for the next day. If a partial day recall right is not provided, 
a releasing shipper with supplier-of-last-resort obligations will be 
reluctant to release capacity at all since it will not be able to 
recall that capacity when it is needed. In that event, shippers seeking 
capacity will have fewer alternatives to purchasing pipeline 
interruptible service.
    Under the Commission's proposal, the releasing shipper would be 
able to recall and renominate its capacity in accordance with the 
current nomination and scheduling timelines. For example, the shipper 
could notify the pipeline of its recall and renomination at the 10 a.m. 
CCT Intra-Day 1 nomination cycle and submit a new nomination that will 
become effective at 5 p.m. CCT on the same day. In processing recalls 
and renominations, the pipeline would follow the applicable GISB 
nomination standard (standard 1.3.2) in terms of providing notice to 
the bumped replacement shipper.
    The replacement shipper also will receive the same protection 
against loss of service as do interruptible shippers. In Order No. 587-
G, the Commission determined that interruptible shippers could be 
bumped by firm intra-day nominations at the first three nomination 
opportunities, but could not be bumped at the third intra-day 
nomination opportunity (5 p.m. CCT nomination, with scheduled volumes 
by 9 p.m. CCT). The Commission provided this protection against bumping 
to provide stability in the nomination system, so that shippers can be 
confident by late afternoon that they will receive their scheduled 
flows.\24\ This rationale seems to apply equally to replacement 
shippers so that they would not have to monitor the status of their 
nominations after 5 p.m. CCT.
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    \24\ Order No. 587-G, 63 FR at 20078, FERC Stats. & Regs. 
Regulations Preambles [July 1996-December 2000] para. 31,062, at 
30,671-72 (Apr. 16, 1998).
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    In their comments on AGA's March 16, 2001 filing, the pipelines 
(INGAA, DEGT, El Paso Pipeline Companies, Enron) are not opposed to 
some revision of the GISB standards to liberalize the recall 
conditions. They maintain that allowing partial day recalls requires 
resolution of a number of issues such as notification of the 
replacement shipper that its capacity is being recalled, operational 
provisions to ensure that the recalled party does not continue to flow 
gas, billing issues regarding the use of

[[Page 53137]]

capacity for part of a day, and scheduling and nomination issues.
    The Commission's proposal here is designed so as not to cause 
operational problems for pipelines. Some pipelines already have 
implemented partial day recall provisions on their systems.\25\ Partial 
day recalls should not adversely affect scheduling procedures, since 
under the Commission's proposal, recalls will take place under the same 
nomination timeline currently used for nominating and scheduling firm 
and interruptible service, including bumping of interruptible service. 
Order No. 637 already requires pipelines to implement procedures to 
allocate capacity and potential imbalances and penalties associated 
with partial day releases, so the same procedures can be used for 
partial day recalls.\26\
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    \25\ See Dominion Transmission, Inc., 95 FERC para. 61,316 
(2001); National Fuel Gas Supply Corporation, 96 FERC para.61,182 
(2001).
    \26\ While the pipeline should propose reasonable default 
procedures for allocating capacity, imbalances, and penalties among 
releasing and replacement shippers, releasing shippers also may 
deviate from the default provision by including in their notices of 
release differing provisions for allocating capacity, imbalances, 
and penalties between them and the replacement shipper. See Texas 
Gas Transmission Corporation, 89 FERC para.61,096, at 61,274 (1999) 
(releasing shippers can revise pipeline default provisions by 
including different allocation methodologies in their release 
notices).
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    In their comments on AGA's March 16, 2001 filing, NGSA and Dynegy 
oppose partial day recalls. They maintain that flowing or partial day 
recalls undermine system reliability, because they may shut in 
production or result in scheduling problems, overruns, penalties, or 
operational flow orders. They claim that if capacity is recalled, the 
replacement shippers (whose capacity is recalled) may be unable to 
obtain replacement capacity within the same day. They further contend 
that flowing day recalls may undermine competition. They assert that if 
flowing day recalls become the default method of doing business, such 
recall rights will result in lowering the value of released capacity. 
As a consequence, they maintain, shippers may be left with no 
alternative other than purchasing capacity from the pipeline.
    As discussed above, the use of partial day recalls should create no 
additional scheduling problems since recalls will be scheduled 
according to the existing scheduling requirements. In effect, releasing 
shippers using partial day recalls are creating another form of 
interruptible transportation to compete with pipeline interruptible 
capacity and shippers purchasing recallable capacity should be subject 
to the same scheduling rules that apply to interruptible 
transportation. Partial day recalls will be no more likely to result in 
shut-in production than interruptible transactions that are subject to 
being bumped under the current standards.
    As discussed earlier, permitting partial day recalls should not 
reduce competition, as Dynegy and NGSA assert, but should enhance 
competition as capacity that previously was not released because of 
concerns about recall rights becomes available as an alternative to 
pipeline interruptible service. Dynegy and NGSA appear to assume that 
if partial day recalls are not permitted, shippers will nonetheless 
release the same amount of capacity. However, as AGA points out, if 
LDCs or other shippers need to recall capacity to ensure their own peak 
day capacity, they may be reluctant to release capacity at all without 
some assurance of the ability to recall. Since Order No. 636, the 
Commission has proceeded under the assumption that the best way to 
improve access to capacity is to provide flexibility for releasing 
shippers to establish the terms and conditions of releases. While 
including partial day recalls may make some capacity releases less 
valuable to replacement shippers, as Dynegy and NGSA assert, the 
replacement shippers will know the terms of releases upfront and can 
determine whether to purchase that capacity or seek more reliable 
capacity, and can take the recall conditions into account in 
determining how much the capacity is worth.

III. Notice of Use of Voluntary Consensus Standards

    Office of Management and Budget Circular A-119 (Sec. 11) (February 
10, 1998) provides that federal agencies should publish a request for 
comment in a NOPR when the agency is seeking to issue or revise a 
regulation containing a standard identifying whether a voluntary 
consensus standard or a government-unique standard is being proposed. 
In this NOPR, the Commission is proposing to issue its own regulation, 
because the existing GISB standard has not been revised to take into 
account changed circumstances, there is no longer consensus supporting 
this standard, and the existing standard fails to reflect Commission 
policy.

IV. Information Collection Statement

    The following collection of information contained in this proposed 
rule has been submitted to the Office of Management and Budget (OMB) 
for review under Section 3507(d) of the Paperwork Reduction Act of 
1995, 44 U.S.C. 3507(d). The Commission solicits comments on the 
Commission's need for this information, whether the information will 
have practical utility, the accuracy of the provided burden estimate, 
ways to enhance the quality, utility, and clarity of the information to 
be collected, and any suggested methods for minimizing respondents' 
burden, including the use of automated information techniques. The 
following burden estimate includes the costs of modifying, preparing 
and submitting tariff changes to reflect compliance with the 
Commission's proposed regulation to require pipelines to permit 
shippers to recall released capacity and renominate such recalled 
capacity at each nomination opportunity provided by the pipeline. 
Adoption of the proposed regulation will not place additional burdens 
on pipelines, because the regulation will require pipelines to use 
existing nomination procedures and protocols. The one-time tariff 
filing will not result in on-going costs.
    Public Reporting Burden: (Estimated Annual Burden).

----------------------------------------------------------------------------------------------------------------
                                                                  Number of
               Data collection                   Number of      responses per      Hours per     Total number of
                                                respondents       respondent        response          hours
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FERC-545....................................              93                1               38            3,534
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    Total Annual Hours for Collection (Reporting and Recordkeeping, (if 
appropriate)) = 3,534.
    Information Collection Costs: The Commission seeks comments on the 
costs to comply with these requirements. It has projected the average 
annualized cost for all respondents to be the following:

[[Page 53138]]



------------------------------------------------------------------------
                                                             FERC-545
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Annualized Capital/Startup Costs........................        $198,857
Annualized Costs (Operations & Maintenance).............               0
                                                         ---------------
    Total Annualized Costs..............................         198,857
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    Total Annualized costs for all respondents: $198,857.
    OMB regulations \27\ require OMB to approve certain information 
collection requirements imposed by agency rule. Respondents subject to 
the filing requirements of this proposed rule shall not be penalized 
for failing to respond to these collections of information unless the 
collection(s) of information display a valid OMB control No(s). These 
proposed reporting requirements if adopted, will be mandatory. The 
Commission is submitting notification of this proposed rule to OMB.
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    \27\ 5 CFR 1320.11.
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    Title: FERC-545, Gas Pipeline Rates: Rate Change (Non-Formal).
    Action: Proposed collection.
    OMB Control No.: 1902-0154.
    Respondents: Business or other for profit, (Interstate natural gas 
pipelines (Not applicable to small business.)).
    Frequency of Responses: One-time implementation (business 
procedures, capital/start-up).
    Necessity of Information: This proposed rule, if implemented, would 
require pipelines to permit shippers to recall release capacity and 
renominate such recalled capacity at each nomination opportunity 
provided by the pipeline. This requirement is necessary to increase the 
efficiency of the pipeline grid.
    The information collection requirements of this proposed rule will 
be reported directly to the industry users. The implementation of these 
data requirements will help the Commission carry out its 
responsibilities under the Natural Gas Act to monitor activities of the 
natural gas industry to ensure its competitiveness and to assure the 
improved efficiency of the industry's operations. The Commission's 
Office of Markets, Tariffs and Rates will use the data in rate 
proceedings to review rate and tariff changes by natural gas companies 
for the transportation of gas, for general industry oversight, and to 
supplement the documentation used during the Commission's audit 
process. Internal Review: The Commission has reviewed the requirements 
pertaining to business practices and electronic communication with 
natural gas interstate pipelines and made a determination that the 
proposed revisions are necessary to establish a more efficient and 
integrated pipeline grid. Requiring such information ensures both a 
common means of communication and common business practices which 
provide participants engaged in transactions with interstate pipelines 
with timely information and uniform business procedures across multiple 
pipelines. These requirements conform to the Commission's plan for 
efficient information collection, communication, and management within 
the natural gas industry. 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.
    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, e-mail: [email protected]].
    Comments concerning the collection of information(s) and the 
associated burden estimate(s), should be sent 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].

V. Environmental Analysis

    The Commission is required to prepare an Environmental Assessment 
or an Environmental Impact Statement for any action that may have a 
significant adverse effect on the human environment.\28\ The Commission 
has categorically excluded certain actions from these requirements as 
not having a significant effect on the human environment.\29\ The 
actions proposed here fall within categorical exclusions in the 
Commission's regulations for rules that are clarifying, corrective, or 
procedural, for information gathering, analysis, and dissemination, and 
for sales, exchange, and transportation of natural gas that requires no 
construction of facilities.\30\ Therefore, an environmental assessment 
is unnecessary and has not been prepared in this NOPR.
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    \28\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & 
Regs. Preambles 1986-1990 para. 30,783 (1987).
    \29\ 18 CFR 380.4.
    \30\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
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VI. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act of 1980 (RFA) \31\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
The regulations proposed here impose requirements only on interstate 
pipelines, which are not small businesses, and, these requirements are, 
in fact, designed to benefit all customers, including small businesses. 
Accordingly, pursuant to Sec. 605(b) of the RFA, the Commission hereby 
certifies that the regulations proposed herein will not have a 
significant adverse impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \31\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

VII. Comment Procedures

    The Commission invites interested persons to submit written 
comments on the matters and issues proposed in this notice to be 
adopted, including any related matters or alternative proposals that 
commenters may wish to discuss. Comments may be filed either in paper 
format or electronically. 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. RM96-1-019.
    Documents filed electronically 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 www.ferc.gov 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 DC 20426, during regular 
business hours. Additionally, all comments may be viewed, printed, or 
downloaded remotely via the Internet through

[[Page 53139]]

FERC's homepage using the RIMS link. User assistance for RIMS is 
available at 202-208-2222, or by e-mail to [email protected].

VIII. 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 homepage (http://www.ferc.gov) 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, NE, Room 2A, Washington, DC 20426.
    From FERC's homepage 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 Documents & Filing 
link. 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 FERC's Home Page using the RIMS 
link or the Documents & Filing link. 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 Web site 
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 FERC's Public Reference Room, where RIMS, CIPS, and the FERC 
Web site are available. User assistance is also available.

List of Subjects in 18 CFR Part 284

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

The Commission Orders

    Docket Nos. RM98-10-008 and RM98-12-008 are terminated.

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

    In consideration of the foregoing, the Commission proposes to amend 
part 284, Chapter I, Title 18, Code of Federal Regulations, as follows.

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

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

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

    2. Section 284.12 is amended as follows:
    a. Paragraph (b)(1)(v) is revised.
    b. The heading of paragraph (c)(1)(ii) is revised, and the text of 
paragraph of (c)(1)(ii) is designated as (c)(1)(ii)(A).
    c. Paragraph (c)(1)(ii)(B) is added.
    The revised and added text reads as follows:


Sec. 284.12  Standards for pipeline business operations and 
communications.

* * * * *
    (b) * * *
    (1) * * *
    (v) Capacity Release Related Standards (Version 1.4, August 31, 
1999), with the exception of Standard 5.3.6 and the first sentence of 
Standard 5.3.7.
* * * * *
    (c) * * *
    (1) * * *
    (ii) Capacity release scheduling.
    (A) * * *
    (B) A pipeline must permit shippers to recall released capacity and 
renominate such recalled capacity at each nomination opportunity 
provided by the pipeline according to the notice and bumping provisions 
applicable to interruptible shippers.
* * * * *

[FR Doc. 01-26328 Filed 10-18-01; 8:45 am]
BILLING CODE 6717-01-P