[Federal Register Volume 68, Number 2 (Friday, January 3, 2003)]
[Rules and Regulations]
[Pages 266-269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-153]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 260, 357 and 385

[Docket No. RM03-3-000; Order No. 628]


Before Commissioners: Pat Wood, III, Chairman; William L. Massey, 
and Nora Mead Brownell; Elimination of the Paper Filing Requirements of 
FERC Form Nos. 2, 2-A and 6; Order No. 628

Issued December 26, 2002.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
amending its regulations to eliminate the paper filing requirements of 
Form Nos. 2 (Form 2), 2-A (Form 2-A), and 6 (Form 6). Commencing with 
the calendar year 2002 report filing due March 31, 2003 for the Form 2-
A and Form 6, and April 30, 2003 for the Form 2, only electronic 
submission using Commission-provided software will be required. The 
elimination of the paper submissions yields significant benefits to the 
respondents and the Commission. These benefits include reduced printing 
and handling costs and an overall reduction in filing burden for the 
respondents, and a reduction in processing and maintenance costs 
incurred by the Commission.

Effective Date: This final rule is effective February 3, 2003.

FOR FURTHER INFORMATION CONTACT: 
James M. Krug (Technical Information), Office of Markets, Tariffs and 
Rates, FERC, 888 First Street, NE., Washington, DC 20426, (202) 502-
8419, [email protected].
Bolton Pierce (Electronic System), Office of Markets Tariffs and Rates, 
FERC, 888 First Street, NE., Washington, DC 20426, (202) 502-8803, 
[email protected].
Julia Lake (Legal Information), Office of General Counsel, FERC, 888 
First Street, NE., Washington, DC 20426, (202) 502-8370, 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Introduction

    1. This Final Rule revises parts 260, 357 and 385 of the 
Commission's regulations to require only the electronic filing of the 
FERC Form No. 2 ``Annual Report for Major Natural Gas Companies'' (Form 
2), FERC Form No. 2-A ``Annual Report for Nonmajor Natural Gas 
Companies'' (Form 2-A) and FERC Form No. 6 ``Annual Report of Oil 
Pipeline Companies'' (Form 6). Commencing with the reports for calendar 
year 2002, due no later than March 31, 2003 for the Form 2-A and Form 
6, and April 30, 2003 for the Form 2, there will be no further 
requirement for paper copy filings. The Commission has determined that 
the elimination of the paper copies of the Forms 2, 2-A and 6 will 
provide significant benefits to both the respondents and the 
Commission. These benefits include reduced printing and handling costs 
and an overall reduction in filing burden for the respondents, and a 
reduction in processing and maintenance costs incurred by the 
Commission.

II. Background

Forms 2 and 2-A

    2. Forms 2 and 2-A data are collected pursuant to Sections 8 and 10 
of the Natural Gas Act (NGA). Section 8 of the NGA \1\ gives the 
Commission the authority to issue regulations and rules requiring 
natural gas companies to make, keep and preserve accounts, records, 
correspondence, memoranda, papers and books. Section 10 of the NGA \2\ 
gives the Commission authority through rules and regulations to require 
periodic and special reports. The Commission's Forms 2 and 2-A filing 
requirements are found at 18 CFR 260.1 and 260.2.
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    \1\ 15 U.S.C. 717g.
    \2\ 15 U.S.C. 717i.
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    3. Forms 2 and 2-A collect general corporate information that 
includes: Summary financial information, balance sheets and income 
statements and supporting information, gas plant information, operating 
expenses and statistical data. The information is used in the 
continuous review of the financial condition of jurisdictional natural 
gas companies, in various rate proceedings and in the Commission's 
audit program. Forms 2 and 2-A data

[[Page 267]]

are also used to compute annual charges which are assessed against each 
jurisdictional natural gas company and which are necessary to recover 
the Commission's annual costs.
    4. Form 2 is filed by respondents determined to be ``Major 
Companies.'' A respondent is defined as a ``Major Company'' if it meets 
the following requirement: having combined gas transported or stored 
for a fee that exceeds 50 million Dth in each of the three previous 
calendar years. For the Form 2-A, a respondent is defined as a ``Non 
Major Company'' if it meets the following requirement: has total annual 
gas sales or volume transactions exceeding 200,000 Dth in each of the 
three previous calendar years, and it is not classified as ``Major.''
    5. The Forms 2 and 2-A are annual submissions from approximately 62 
and 48, jurisdictional natural gas companies, respectively. Earlier 
this year, the Office of Management and Budget (OMB) approved 3-year 
extensions for both Forms.

Form 6

    6. In 1977, the responsibility to regulate oil pipeline companies 
was transferred to the Commission from the Interstate Commerce 
Commission (ICC).\3\ In accordance with the transfer of authority, the 
Commission was delegated the responsibility under section 1 of the 
Interstate Commerce Act (ICA) \4\ to regulate the rates and charges for 
transportation of oil by pipeline and establish the valuation of those 
pipelines, and under section 20 of the ICA to require pipelines to file 
annual and other reports of information necessary to exercise its 
statutory responsibilities.\5\
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    \3\ Section 402(b) of the Department of Energy Reorganization 
Act (DOE Act) 42 U.S.C. 7172(b), provides that: ``there 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 establishes the valuation of any such pipeline.''
    \4\ 49 App. U.S.C. 1 (1998).
    \5\ 49 App. U.S.C. 20 (1988).
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    7. Section 357.2 of the Commission's regulations requires every 
pipeline carrier subject to the provisions of section 20 of the ICA to 
file, on or before March 31 of each year, copies of Form 6 ``Annual 
Report of Oil Pipeline Companies.'' \6\ The amount of information a 
Form 6 respondent submits is based on its jurisdictional operating 
revenues for each of the three preceding calendar years:
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    \6\ 18 CFR 357.2
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    (a) Those carriers having annual jurisdictional operating revenues 
of $500,000 or more for each of the three previous calendar years must 
prepare and file with the Commission a complete Form 6.
    (b) Those carriers having annual jurisdictional operating revenues 
greater than $350,000 but less than $500,000 for each of the three 
previous calendar years must prepare and file page 1 of Form 6, 
``Identification and Attestation Schedule,'' page 301, ``Operating 
Revenue Accounts (Account 600),'' and page 700, ``Annual Cost of 
Service Based Analysis Schedule.''
    (c) Those carriers having annual jurisdictional operating revenues 
of $350,000 or less for each of the three previous calendar years must 
prepare and file page 1 of Form 6, ``Identification and Attestation 
Schedule'' and page 700, ``Annual Cost of Service Based Analysis 
Schedule.''
    8. The Form 6 collects general corporate information that includes: 
summary financial information, balance sheets and income statements and 
supporting information, operating expenses and plant statistical data. 
The information is used in the continuous review of the financial 
condition of jurisdictional companies, in various rate proceedings and 
in the Commission's audit program. Form 6 data is also used to compute 
annual charges which are assessed against each jurisdictional oil 
pipeline and which are necessary to recover the Commission's annual 
costs.
    9. The Form 6 is an annual submission from approximately 171 
jurisdictional oil pipeline companies. In 2001, the Office of 
Management and Budget (OMB) approved a 3-year extension for the Form.

III. Discussion

    10. In this Final Rule, the Commission is eliminating the 
requirement to file paper copies of Forms 2, 2-A and 6, and now will 
require only electronic copies.
    11. Current filing regulations for the Forms 2, 2-A and 6 require 
the respondents to use Commission-distributed submission software \7\ 
to produce both electronic and paper submissions of the forms. The 
submission software provides a user interface for data entry, printing, 
and uploading of the electronic filing to the Commission. The 
electronic submission--which is in a database format that is compatible 
with many off-the-shelf commercial software programs--is processed and 
made available to staff and the public within 24 hours after filing. 
The electronic filing is then used to create an electronic version 
(PDF) of the paper forms that can be accessed through the Commission's 
document retrieval system (the Federal Energy Regulatory Records 
Information System (FERRIS)). Alternatively, interested persons can 
view and print paper copies of the electronically filed data by using 
the Commission's Form 2/2-A or Form 6 viewer software which is also 
available for download on the FERC's Web site.
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    \7\ Forms 2/2A and 6 submission software are Windows 95/98/2000/
ME/NT/XP compatible and can be downloaded from the FERC's Web site 
at: http://www.rimsweb2.ferc.fed.us/form2 and http://www.rimsweb2.ferc.fed.us/form6.
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    12. With the availability of the Form 2/2-A and Form 6 submission 
software, the Form 2/2-A and Form 6 viewer software and FERRIS, there 
is no need for paper submissions of Forms 2, 2-A and 6. The Commission 
will continue to provide staff and the public access and the ability to 
print copies of these Forms, however. The Commission's elimination of 
the paper submissions of the Forms 2, 2-A and 6 thus should not have an 
adverse impact on users of the Forms.
    13. This Final Rule is part of the Commission's ongoing efforts to 
revise and streamline its existing reporting requirements, reduce the 
filing burden on reporting companies, and meet the Paperwork Reduction 
Act of 1995.
    14. Notice and comment procedures are not necessary in this 
rulemaking docket because the Commission is not changing the contents 
of the Forms 2, 2-A and 6, but merely eliminating the paper filing 
requirements.

IV. Environmental Statement

    15. 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.\8\ 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,\9\ and also for information gathering, 
analysis, and dissemination.\10\ This Final Rule does not substantially 
change the effect of the regulations being amended. In addition, this 
Final Rule involves information gathering, analysis and dissemination. 
Therefore, this Final Rule falls within the categorical exemption 
provided in the Commission's regulations. Consequently, neither an 
environmental

[[Page 268]]

impact statement nor an environmental assessment is required.
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    \8\ Regulations Implementing National Environmental Policy Act, 
52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. [para] 30,783 
(1987).
    \9\ 18 CFR 380.4(a)(2)(ii).
    \10\ 18 CFR 380.4(a)(5).
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V. Regulatory Flexibility Act

    16. In Mid-Tex Elect. Coop. v. FERC, 773 F.2d 327 (DC. Cir. 1985), 
the court found that Congress, in passing the Regulatory Flexibility 
Act (RFA),\11\ intended agencies to limit their consideration under the 
RFA ``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.
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    \11\ 5 U.S.C. 601-612.
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    17. This Final Rule will reduce the reporting burden for all 
reporting companies, including small reporting companies. The 
Commission also finds that most of the filing companies regulated by 
the Commission do not fall within the RFA's definition of a small 
entity.\12\ The Commission therefore certifies that this Final Rule 
will not have a significant economic impact on a substantial number of 
small entities.
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    \12\ 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.
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VI. Information Collection Statement

    18. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain reporting and record keeping (collections of 
information) imposed by an agency. The information collection 
requirements in this Final Rule are contained in Form 2, ``Annual 
Report for Major Natural Gas Companies'' (OMB Control No. 1902-0028), 
FERC Form 2-A ``Annual Report for Nonmajor Natural Gas Companies'' (OMB 
Control No. 1902-0030), and Form 6 ``Annual Report of Oil Pipeline 
Companies'' (OMB Control No. 1902-0022). Form 2 most recently received 
OMB approval on March 29, 2002, for the period through March 31, 2005. 
Form 2-A received OMB approval on April 2, 2002, for the period through 
April 30, 2005. Form 6 received OMB approval on March 29, 2001, for the 
period through March 31, 2004.
    19. The elimination of the paper submissions is part of the 
Commission's ongoing program to reduce reporting burdens. As explained 
below, the shift to a paperless filing of the Forms 2, 2-A and 6 will 
reduce the burden on regulated companies for reporting and maintaining 
information under the Commission's Forms 2, 2-A and 6 regulations.
    20. 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.
    Title: FERC Form No. 2, ``Annual Report for Major Natural Gas 
Companies''; FERC Form No. 2-A, ``Annual Report for Nonmajor Natural 
Gas Companies''; FERC Form No. 6, ``Annual Report of Oil Pipeline 
Companies''.
    Action: Revision of Currently Approved Collections of Information.
    OMB Control Nos.: 1902-0022, 1902-0028 and 1902-0030.
    Respondents: Jurisdictional Natural Gas and Oil Pipeline Companies.
    Frequency of Responses: Annually.
    Reporting Burden: Form 2: With the elimination of the paper 
submission, the Commission estimates a savings of $560 per respondent 
due to reduced printing and handling costs. For the Federal government, 
the cost savings for the Form 2 will be $10,000 due to a reduction in 
processing and maintenance costs.
    Form 2-A: With the elimination of the paper submission, the 
Commission estimates a savings of $354 per respondent due to reduced 
printing and handling costs. For the Federal government, the cost 
savings for the Form 2-A will be $6,000 due to a reduction in 
processing and maintenance costs.
    Form 6: With the elimination of the paper submission, the 
Commission estimates a savings of $369 per respondent due to reduced 
printing and handling costs. For the Federal government, the cost 
savings for the Form 6 will be $3,748 due to a reduction in processing 
and maintenance costs.
    21. The proposed paperless filing requirements conform to the 
Commission's plan for efficient information collection, communication 
and management within the natural gas and oil pipeline industries. 
These changes will continue to contribute to well-informed decision-
making and streamlined workload processing.
    22. 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) 
502-8415; Fax: (202) 273-0873, e-mail: [email protected].
    23. For the submission of comments concerning the collection of 
information and the associated burden estimates, please send your 
comments to the contact listed above or 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) 395-7856; Fax: (202) 395-7285).

VII. Document Availabilty

    24. 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 Home Page (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.
    25. From the Commission's Home Page on the Internet, this 
information is available in FERRIS. The full text of this document is 
available on FERRIS in PDF and WordPerfect format for viewing, 
printing, and/or downloading. To access this document in FERRIS, type 
the docket number (excluding the last three digits of this document) in 
the document number field.
    26. User assistance is available for FERRIS and the Commission's 
Web site during regular business hours from our Help line at (202) 502-
8222 or the Public Reference Room at (202) 502-8371, TTY (202) 502-
8659. Please e-mail the Public Reference Room at 
[email protected].

VIII. Effective Date and Congressional Notification

    27. This Final Rule will take effect February 3, 2003. 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.\13\ The Commission will submit the Final Rule to 
both houses of Congress and the General Accounting Office.\14\
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    \13\ 5 U.S.C. 804(2).
    \14\ 5 U.S.C. 801(a)(1)(A).
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List of Subjects

18 CFR Part 260

    Natural gas, Reporting and recordkeeping requirements.

18 CFR Part 357

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

[[Page 269]]

18 CFR Part 385

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

    By the Commission.
Linwood A. Watson, Jr.,
Deputy Secretary.

    In consideration of the foregoing, the Commission amends parts 260, 
357 and 385, Chapter I, Title 18, of the Code of Federal Regulations, 
as follows:

PART 260--STATEMENTS AND REPORTS (SCHEDULES)

    1. The authority citation for part 260 continues to read as 
follows:

    Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.


    2. In Sec.  260.1, paragraph (b) is revised to read as follows:


Sec.  260.1  FERC Form No. 2, Annual report for Major natural gas 
companies

* * * * *
    (b) Filing requirements. Each natural gas company, as defined in 
the Natural Gas Act (15 U.S.C. 717, et seq.) which is a major company 
(a natural gas company whose combined gas transported or stored for a 
fee exceeded 50 million Dth in each of the three previous calendar 
years) must prepare and file with the Commission, on or before April 30 
following the close of each calendar year, FERC Form No. 2. Newly 
established entities must use projected data to determine whether FERC 
Form No. 2 must be filed. The form must be filed in electronic format 
only, as indicated in the general instructions set out in that form. 
The format for the electronic filing can be obtained at the Federal 
Energy Regulatory Commission, Division of Information Services, Public 
Reference and Files Maintenance Branch, Washington, DC 20426. One copy 
of the report must be retained by the respondent in its files.

    3. In Sec.  260.2, paragraph (b) is revised to read as follows:


Sec.  260.2  FERC Form No. 2-A, Annual report for Nonmajor natural gas 
companies

* * * * *
    (b) Filing requirements. Each natural gas company, as defined by 
the Natural Gas Act, not meeting the filing threshold for FERC Form No. 
2, but having total gas sales or volume transactions exceeding 200,000 
Dth in each of the three previous calendar years, must prepare and file 
with the Commission, on or before March 31 following the close of each 
calendar year, FERC Form No. 2-A. Newly established entities must use 
projected data to determine whether FERC Form No. 2-A must be filed. 
The form must be filed in electronic format only, as indicated in the 
general instructions set out in that form. The format for the 
electronic filing can be obtained at the Federal Energy Regulatory 
Commission, Division of Information Services, Public Reference and 
Files Maintenance Branch, Washington, DC 20426. One copy of the report 
must be retained by the respondent in its files.

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

    4. The authority citation for part 357 continues to read as 
follows:

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


    5. In Sec.  357.2, paragraph (c)(3) is revised to read as follows:


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

* * * * *
    (c) What to submit. * * *
    (3) The form must be filed in electronic format only pursuant to 
Sec.  385.2011 of this chapter, beginning with report year 2002, due on 
or before March 31, 2003.

PART 385--RULES OF PRACTICE AND PROCEDURE

    6. The authority citation for part 385 continues to read as 
follows:

    Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16 
U.S.C 791a-825r, 2601-2645; 31 U.S.C. 9701; 42 U.S.C. 7101-7352; 49 
U.S.C. 60502; 49 App. U.S.C. 1-85 (1988).

    7. In Sec.  385.2011, paragraph (c)(3) is revised to read as 
follows:


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

* * * * *
    (c) What to file.* * *
    (3) With the exception of the Form Nos. 1, 2, 2-A and 6, the 
electronic media must be accompanied by the traditional prescribed 
number of paper copies.
* * * * *
[FR Doc. 03-153 Filed 1-2-03; 8:45 am]
BILLING CODE 6717-01-P