[Federal Register Volume 68, Number 18 (Tuesday, January 28, 2003)]
[Proposed Rules]
[Pages 4120-4127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1698]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 157

[Docket Nos. RM03-4-000 and AD02-14-000]


Emergency Reconstruction of Interstate Natural Gas Facilities 
Under the Natural Gas Act

January 17, 2003.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
proposing to amend its regulations to enable natural gas interstate 
pipeline companies to replace mainline facilities using a route other 
than the existing right-of-way, and to commence construction without 
being subject to the 45-day prior notice proceedings specified in the 
Commission's regulations and without project cost constraints, when 
immediate action is required to restore service in an emergency due to 
a sudden unanticipated loss of natural gas or capacity in order to 
prevent loss of life, impairment of health, or damage to property. In 
addition, the Commission is proposing to revise reporting requirements 
so that a natural gas company, acting under part 157 in responding to 
an emergency, would submit a description of its activities to the 
Commission prospectively, in advance of commencing construction, rather 
than retrospectively, as is currently the case. An important objective 
of the proposed rule is the reconciliation of the Commission's 
regulatory responsibilities under its enabling statutes and federal 
environmental and safety laws with the need to protect persons and 
property. The Commission requests that comments address the adequacy of 
the proposed expansion of pipeline companies' authority under their 
part 157 blanket certificates in situations where immediate action is 
necessary to reconstruct interstate pipeline facilities that have been 
destroyed or compromised by a sudden unanticipated natural event or 
deliberate effort to disrupt the flow of natural gas or whether there 
is a need for further action by the Commission or Congress.

DATES: Comments are due February 27, 2003.

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

FOR FURTHER INFORMATION CONTACT: Robert Christin, Office of the General 
Counsel, Federal Energy Regulatory Commission, 888 First Street, NE, 
Washington, DC 20426, (202) 502-6022.
    Gordon Wagner, Office of the General Counsel, Federal Energy 
Regulatory Commission, 888 First Street, NE, Washington, DC 20426, 
(202) 502-8947.
    Berne Mosley, Office of Energy Projects, Federal Energy Regulatory 
Commission, 888 First Street, NE, Washington, DC 20426, (202) 502-8625.


SUPPLEMENTARY INFORMATION: 
    1. The Federal Energy Regulatory Commission (Commission) is 
proposing to amend part 157, subpart F, of its regulations to enable 
natural gas interstate pipeline companies to replace mainline 
facilities using a route other than the existing right-of-way, and to 
commence construction without being subject to the 45-day prior notice 
proceedings specified in Sec.  157.205 of the Commission's regulations 
and without project cost constraints, when immediate action is required 
to restore service in an emergency due to a sudden unanticipated loss 
of natural gas or capacity in order to prevent loss of life, impairment 
of health, or damage to property. In addition, the Commission is 
proposing to revise reporting requirements so that a natural gas 
company, acting under part 157 in responding to an emergency, would 
submit a description of its activities to the Commission prospectively, 
in advance of commencing construction, rather than retrospectively, as 
is currently the case. An important objective of the proposed rule is 
the reconciliation of the Commission's regulatory responsibilities 
under its enabling statutes and federal environmental and safety laws 
with the need to protect persons and property.

Background

    2. On April 22, 2002, staff from the Commission and from the 
Department of Transportation (DOT) Office of Pipeline Safety (OPS) 
jointly convened a technical conference to consider whether to, or how 
to, clarify, expedite, and streamline permitting and approvals for 
interstate pipeline reconstruction following a sudden unanticipated 
service disruption.\1\ Efforts to ensure the security of the nation's 
energy infrastructure have generally focused on maintaining the 
physical integrity of facilities and preparing to respond to accidents, 
such as excavation that breeches a buried pipe, natural disasters, such 
as earthquakes and landslides, and foreseeable equipment failure. The 
conference broadened this focus to consider how best to respond to 
damage due to a deliberate effort to disrupt the flow of natural gas.
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    \1\ On the following day, staff from the Commission and from the 
Department of Energy (DOE) jointly convened a technical conference 
to consider whether to or how to clarify, expedite, and streamline 
the reallocation of gas supplies in the event of a sudden 
unanticipated service disruption. That proceeding, in Docket No. 
AD02-15-000, is not addressed here.
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    3. At the conference, Commission and OPS staff provided an overview 
of current regulatory processes and presented examples of recent 
natural gas emergencies. Conference participants--representing federal, 
state, and local agencies, energy industry sectors, trade groups, and 
interested individuals--suggested various means to speed the 
reconstruction of interstate gas facilities, including: revising 
existing legislative mandates, revising Commission regulations, and 
enhancing coordination among federal, state, and local entities. A 
transcript of the conference and the comments subsequently submitted 
are contained in the record in Docket No. AD02-14-000.\2\
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    \2\ The conference comments are available on FERC's Web site at 
http://ferc.gov using the Federal Energy Regulatory Records and 
Information System (FERRIS) to access filings in Docket No. AD02-14-
000. The Interstate Natural Gas Association of America (INGAA) 
submitted scenarios describing how interstate pipelines might 
respond to various types of facility-related emergencies. Because of 
security concerns associated with disclosing this information, these 
scenarios are not included in the public record in Docket No. AD02-
14-000; however, while the particulars of the scenarios are not 
described in detail in the public record, the results are discussed 
in general.

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[[Page 4121]]

    4. In general, staff found the Commission's existing authorities 
and policies sufficient, and sufficiently flexible, to enable pipelines 
to respond to emergencies in a timely manner. However, following 
consideration of the April 2002 conference's presentations, 
discussions, and comments, the Commission has identified circumstances 
under which its present practices could constrain a pipeline from 
initiating a timely response. Accordingly, as discussed below, the 
Commission proposes to amend its regulations concerning blanket 
certificates.

Discussion

The Commission's Existing Authority

    5. In the normal course of events, an interstate gas pipeline 
seeking to build new facilities, or rebuild existing facilities, will 
file an application with the Commission pursuant to section 7(c) of the 
Natural Gas Act (NGA) for authorization for the proposed construction. 
The Commission reviews the application, considers comments in favor of 
and opposed to the proposal, and assesses economic and environmental 
impacts. The time required to ensure that all views receive a full 
hearing, and all impacts are adequately assessed, varies with the 
complexity of the project proposed. The time needed to reach a final 
determination on an application is typically measured in months. 
Consequently, the standard NGA section 7(c) certification process is 
not suited to an emergency situation that requires an immediate 
response to prevent loss of life, impairment of health, or damage to 
property.
    6. In establishing the initial framework for federal regulation of 
the natural gas industry, the NGA explicitly recognized the need to 
provide for a rapid response to an emergency. NGA section 7(c)(1)(B) 
states that ``the Commission may issue a temporary certificate in cases 
of emergency, to assure maintenance of adequate service or to serve 
particular customers, without notice or hearing, pending the 
determination of an application of a certificate.'' The Commission has 
issued temporary certificates in response to companies' requests for 
authorization to undertake various activities on an emergency basis, 
with temporary authorization valid until the Commission acts on an 
application for permanent authorization. Natural gas companies have 
received temporary emergency authorization to build new facilities, 
modify existing facilities, alter operational parameters, and change 
rates.\3\ Section 2.57 of the Commission's regulations states that 
temporary certificates should be employed for minor enlargements or 
extensions of existing facilities, and not for construction ``of major 
proportions.'' \4\
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    \3\ See, e.g., Texas-Ohio Pipeline, Inc., 58 FERC ] 61,025 
(1992) (order issuing temporary certificate) and 69 FERC ] 61,145 
(1994) (order issuing permanent certificate).
    \4\ In Pennsylvania Gas and Water Company v. FPC, 427 F.2d 568, 
574 (D.C. Cir. 1970), the court reviewed the legislative history of 
the section 7 temporary certificate provision, and found it ``was 
meant to cover a narrow class of situations, to permit temporary and 
limited interconnection, or expansion of existing facilities in 
order to meet such emergencies as breakdowns in the service of 
operating natural gas companies, or sudden unanticipated demands.'' 
Citing Algonquin Gas Transmission Company v. FPC, 201 F.2d 334 (1st 
Cir. 1953). See also Mississippi River Transmission Corporation, 40 
FPC 190 (1968).
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    7. In addition to the NGA's statutory emergency provision, the 
Commission's regulations permit pipelines to undertake limited 
construction projects without waiting for NGA section 7(c) case 
specific certificate authorization. For example, section 2.55 of the 
Commission's regulations permits pipeline companies to replace or 
refurbish deteriorating facilities and make minor upgrades to 
facilities without first obtaining an NGA section 7(c) certificate. 
Thus, if facilities are damaged or become inoperable for any reason, a 
pipeline could, pursuant to section 2.55, undertake repairs or 
replacement as necessary to restore service. However, section 2.55 is 
limited to returning a facility to its original service capacity; it 
does not apply to efforts that will expand or eliminate existing 
services. Further, section 2.55 applies only to new facilities located 
within the same right-of-way or at the same site as the existing 
facilities. Finally, certain auxiliary facilities, and replacement 
facilities projected to cost more than $7,500,000, are subject to a 30-
day prior notice.\5\
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    \5\ This amount is adjusted annually. See 18 CFR 157.208(d) 
(2002), Table 1, column 1. Advance notice for replacement facilities 
that exceed the current $7.5 million cost limit of 18 CFR 157.208(d) 
must include maps and a description of the erosion control, 
revegetation and maintenance, and stream and wetland crossings 
procedures. This prior notice would not apply if DOT safety 
regulations required that the replacement activity be performed 
immediately.
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    8. If gas facilities are damaged, and a subsequent investigation of 
the event or contamination of the area restricts access to the damage 
site, we expect section 2.55 would prove ineffective if rapid 
reconstruction is required to restore service. In such circumstances, a 
company would be compelled to reroute around its damaged facilities, 
which would require construction outside the footprint of the existing 
facilities' right-of-way. Construction beyond the bounds of the 
existing right-of-way, and even construction within the existing right-
of-way that uses temporary workspace other than that used to construct 
the original facility, is barred by section 2.55.\6\
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    \6\ See 18 CFR Sec.  2.55(b) (2002), Appendix A to part 2, 
Guidance for Determining the Acceptable Construction Area for 
Replacements, specifies the criteria that must be met in order to 
proceed under section 2.55(b), and cautions that ``[i]f these 
guidelines cannot be met,'' and no exemption is applicable, 
``construction authorization must be obtained pursuant to another 
regulation under the Natural Gas Act.''
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    9. Section 2.55 of the Commission's regulations serves, in effect, 
as standing authorization for pipelines to perform periodic maintenance 
and routine replacement. Given section 2.55's inherent limitations on 
the type of and location of facilities permitted, and the potential to 
trigger a 30-day prior notice delay, we believe that section 2.55 
cannot always serve to ensure a prompt response to sudden unanticipated 
service disruptions. In particular, section 2.55 is inapplicable if 
construction outside of the existing right-of-way is needed.\7\ Section 
2.55 is best suited to its intended use, that being the replacement of 
physically deteriorated or obsolete facilities and the installation of 
auxiliary or appurtenant facilities to enhance operations, such as 
valves, pigging facilities, or communication equipment.
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    \7\ The scope of section 2.55 is expanded in section 2.60 to 
include the installation and modification of ``defense-related 
facilities,'' such as emergency company headquarters, emergency 
communications equipment, and fallout shelters at compressor 
stations. However, as a practical matter, the Commission does not 
expect this particular provision to ameliorate the other section 
2.55 constraints that render these regulations unsuitable as a 
vehicle to recover from accidental or intentional damage.
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    10. The blanket authority conferred by part 157, subpart F, of the 
regulations provides another vehicle for reconstruction of facilities 
in an emergency, but this authority is also limited. Virtually all 
existing interstate gas pipelines hold blanket certificates allowing 
them to acquire, operate, abandon, replace, and rearrange certain 
facilities. Acting under blanket authority, a pipeline may install new 
facilities on a new right-of-way, which may be acquired through the 
pipeline's exercise of eminent domain. However, blanket authority is 
limited to projects costing no more than $21,000,000.\8\ Further, 
blanket authority does not apply to projects that alter or add mainline 
loop line, or extend a mainline, or increase compression to boost 
mainline capacity. An important

[[Page 4122]]

exception to this limitation applies to mainline, lateral, and 
compressor replacements that do not qualify under 2.55(b) because they 
will result in an incidental increase in capacity \9\ or because they 
cannot satisfy the location or workspace requirements of section 
2.55(b).\10\
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    \8\ This amount is adjusted annually. By way of contrast, 
section 2.55 has no such project cost cap.
    \9\ Incremental increases in mainline capacity that occur 
incidental to facilities' modifications undertaken for sound 
engineering purposes are permitted. 18 CFR 157.202(b)(2)(i) (2002).
    \10\ 18 CFR 157.202(b)(2) (2002).
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    11. In other words, part 157, subpart F, permits replacement 
construction that uses temporary workspace beyond the bounds of the 
temporary workspace previously used to construct the original 
facilities as necessary to install replacement facilities. These 
regulations also permit locating a portion of mainline, lateral, or 
compressor replacement facilities outside, but presumably adjacent to, 
an existing right-of-way where, for whatever reason, the new facilities 
could not be placed entirely within the original facilities' existing 
right-of-way. These regulations, however, do not appear to contemplate 
mainline construction over an entirely different route as may be 
necessary to circumvent the site of a disaster if immediate replacement 
is necessary before the original site is again available.
    12. In addition, part 157 blanket authorization, although granted 
automatically, is subject to compliance with standard conditions, in 
particular, the environmental criteria specified in Sec.  157.206(d) 
and the reporting requirements of Sec.  157.207. Any project undertaken 
pursuant to blanket authority that will exceed $7,500,000 in costs is 
subject to a 45-day prior notice requirement.\11\ If a protest to a 
proposal is submitted during this time, and the project sponsor is 
unable to resolve the objection within another 30 days, then instead of 
proceeding under blanket authority, the prior notice filing is treated 
as an application for section 7(c) certificate authorization.
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    \11\ 18 CFR 157.205 (2002). Further, before initiating 
construction or easement negotiations, a pipeline company seeking to 
act under blanket authorization is expected to make a good faith 
effort to provide 30-day prior notice to all affected landowners. 18 
CFR Sec.  157.203(d) (2002).
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    13. While section 2.55 and part 157 of the Commission's regulations 
are commonly employed for routine business activities, part 284, 
subpart I, of the regulations applies only in an emergency.\12\ Under 
part 284, a pipeline may extend its facilities, interconnect with other 
pipelines, sell gas as needed to maintain adequate service or serve 
particular customers, and increase gas deliveries in order to meet 
weather-induced demand. However, approval for facilities and services 
under part 284 is provisional; the regulations only apply to actions 
that are anticipated to last no longer than 60 days,\13\ since it is 
expected that the pipeline will be able to reconstitute service within 
this time frame or will seek another source of authorization for its 
actions.\14\ Although part 284 places no explicit limitation on the 
types of facilities or transactions covered, these regulations have not 
been viewed as applicable to long-term or large-scale undertakings. In 
practice, these emergency regulations have typically been used for 
small-scale efforts, such as installing a tap. Also, the part 284 
emergency regulations do not provide the pipeline with the right to 
acquire easements by means of eminent domain.
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    \12\ ``Emergency'' is defined as an actual or expected shortage 
of gas supply or capacity that would disrupt existing service; a 
sudden unanticipated loss of gas supply or capacity; an anticipated 
loss of gas supply or capacity due to a foreseeable facility outage 
resulting from a natural disaster beyond the company's control; or a 
situation in which the company determines that immediate action is 
needed or will be needed to protect life, health, or property.
    \13\ A single, additional 60-day extension may be requested. 
Although the part 284, Subpart I, regulations may exempt a gas 
company, Hinshaw pipeline, or intrastate pipeline from NGA section 7 
jurisdiction in order to respond to an emergency, if emergency 
conditions persist beyond 120 days (60 days plus a 60-day 
extension), then an NGA section 7(c) certificate would be required 
for permanent authority to continue operations.
    \14\ See, e.g., Northern Natural Gas Company, 64 FERC ] 61,187, 
at 62,562-63 (1993).
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Issues Regarding the Commission's Existing Authority

    14. The Commission believes that its existing authority is adequate 
to manage a timely response to most foreseeable types of emergencies 
caused by damage to gas facilities.\15\ Conference participants, 
however, have identified certain circumstances that could inhibit a 
timely response. We are persuaded that if facilities sustain sudden, 
significant, unanticipated damage, and restoring service requires 
construction of mainline facilities over a new right-of-way, our 
existing regulations may not always allow for arapid or sufficiently 
expansive response to such an emergency.
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    \15\ The Commission requested comments on whether it would be 
prudent to prepare for emergencies by directing pipelines to build 
redundant facilities. No participant endorsed this approach.
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    15. INGAA urges the Commission to take the lead in expediting 
emergency permits and authorizing necessary facilities. INGAA proposes 
that the Commission, following notification by a pipeline that an 
emergency exists, authorize the replacement of facilities as necessary 
to restore service, whether within or outside of an existing right-of-
way. INGAA suggests the Commission consider including a certificate or 
tariff provision to authorize emergency construction outside of an 
existing right-of-way. INGAA does not propose that this provision be 
self implementing, but rather suggests that it be subject to the 
Director of Energy Projects finding that an emergency exists and the 
Commission finding the actions of the pipeline to be appropriate.
    16. A representative of Pennsylvania's Public Utility Commission 
recommends that the Commission require pipelines to incorporate an 
emergency response plan as a condition of a certificate, and that as 
part of a certificate authorization, the Commission grant waivers for 
certain operations in the event of specific service interruptions, such 
as authorization to establish a new right-of-way to detour around a 
damaged facility site when necessary to expedite restoration. 
Conference participants suggest that the Commission amend its part 284 
emergency regulations to allow for actions that last longer than the 
current 60-day limit.
    17. Several participants at the April 2002 conference stress the 
need to plan for and to coordinate the efforts of local, state, and 
federal authorities to respond to an emergency, and suggest the 
Commission take the lead in this effort.\16\ In large part, events have 
effectively overtaken such suggestions. In May 2002, DOE created an 
Office of Energy Assurance, charged with the mission of working in 
close collaboration with local and state governments and the private 
sector to guard against and respond to energy disruptions. The Office 
of Energy Assurance has formed a team composed of DOE personnel, DOE 
laboratories and facilities, other federal agencies, local and state 
officials, and the owners and operators of the energy infrastructure. 
This team's task is to identify critical components and 
interdependencies of the energy system, identify threats to the system, 
recommend actions to correct or mitigate vulnerabilities, plan for 
response and recovery in the event of disruptions, and provide 
technical response support during emergencies.
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    \16\ For example, several comments propose the formation of an 
interagency crisis task force, made up of representatives of local, 
state, and federal agencies, charged with coordinating and 
expediting emergency response and recovery.
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    18. The Office of Energy Assurance's statement of mission and goals 
indicate that it will function as the federal managerial focal point 
for: Activities involving the location and content of

[[Page 4123]]

equipment stockpiles; overseeing industry mutual aid pooling and 
exchange programs; identifying critical facilities, equipment, and 
personnel; establishing communications protocol; and developing 
security and contingency plans.\17\
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    \17\ In the event of an emergency, numerous entities will be 
required to coordinate communications and actions. To facilitate 
recovery efforts, the Commission will make available via its Web 
site a list of the entities likely to be involved in these efforts.
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    19. On November 13, 2002, the President signed into law the 
Homeland Security Act of 2002. Among other things, that law establishes 
that within the Department of Homeland Security the Undersecretary of 
Emergency Preparedness and Response will be responsible for 
coordinating federal response resources in the event of a terrorist 
attack or other disaster. In light of these developments, the 
Commission concludes that it can best support intra- and inter-
governmental and industry coordination by contributing to and 
participating in the efforts of the Department of Homeland Security and 
DOE's Office of Energy Assurance.
    20. The regulatory amendments proposed herein are limited in that 
they do not address sudden, yet unanticipated, loss of gas or capacity 
attributable to safety concerns. Nevertheless, we note that section 
16(a)(1) of the Pipeline Safety Improvement Act of 2002 establishes an 
interagency committee, headed by the Council on Environmental Quality 
(CEQ), with the Commission among its members, ``to develop and ensure 
implementation of a coordinated environmental review and permitting 
process in order to enable pipeline operators to commence and complete 
all activities necessary to carry our pipeline repairs'' expeditiously. 
To the extent further changes to the Commission's rules may be 
necessary to address safety concerns, we expect the interagency 
committee called for by this Act will provide a vehicle for identifying 
the relevant issues.

Proposed Regulations

    21. To allow pipelines to expedite recovery following an emergency 
due to a sudden unanticipated loss of gas or capacity that threatens 
life, health, or property, the Commission is proposing to expand the 
scope of construction permitted under the blanket certificate authority 
of part 157, subpart F, of its regulations. One issue conference 
participants raised repeatedly was the prospect that if mainline 
facilities are damaged, and the facility owner's access to the damaged 
site is temporarily restricted, no regulatory remedy now exists to 
ensure the rapid restoration of service. The logical alternative to 
repairing facilities at the point of damage would be to build around 
that point. The Commission's section 2.55 regulations do not allow 
replacement and repair activities to take place outside of facilities' 
original right-of-way, and so preclude any such rerouting. As 
explained, part 157 is less restrictive, but still does not permit the 
extensive deviation from an existing right-of-way that would presumably 
be necessary to circumvent a restricted or quarantined area. 
Accordingly, we propose expanding part 157 to permit pipeline companies 
to establish new rights-of-way around an accident site in order to 
reconnect a severed mainline or to construct other facilities as needed 
to restore service. Further, to the extent that a pipeline company 
could compensate for damage to one portion of its system by rearranging 
gas flows or increasing throughput on an unaffected portion of its 
system, we propose to place such system modifications within the 
category of ``eligible facilities.''
    22. As is, part 157 blanket authorization only applies to a limited 
set of ``eligible facilities,'' and specifically excludes the 
extension, expansion, or looping of a mainline.\18\ As noted above, 
this restriction was broadened incrementally in 1999 to include 
mainline replacements undertaken for sound engineering reasons that 
either created an incidental increase in mainline capacity or did not 
lie within the original facilities' footprint, and consequently were 
outside of the section 2.55(b) replacement parameters.\19\ However, 
this modification in the breadth of eligible facilities did not 
contemplate the more extensive rerouting that would be required to 
reach around a cordoned accident area.\20\ We request comments on 
amending Sec.  157.202 of our regulations to allow a pipeline to 
reconstitute disrupted service by routing around, laying loop line 
along, or boosting compression on a damaged mainline.
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    \18\ 18 CFR 157.202(b)(2)(ii)(B) and (C) (2002).
    \19\ Order No. 603, FERC Stats. & Regs. ] 31,073, at 30,791-94 
(1999).
    \20\ Order No. 603 envisioned replacements such as ``a section 
of deteriorated or obsolete 18-inch pipe located between existing 
20-inch sections,'' where replacing the 18-inch pipe with a larger 
20-inch segment would serve the sound engineering purpose of making 
pigging the combined stretch of pipe possible. Order No. 603 also 
recognized the need to grant natural gas companies the flexibility 
to act under blanket certificate authority to replace facilities 
where construction of new facilities might spill over the original 
temporary workspace or permanent right-of-way. Nothing in Order No. 
603 envisioned replacement of facilities outside the existing right-
of-way by the creation of an entirely new route due to the need to 
circumvent an accident site.
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    23. This proposal is not intended as an open-ended expansion of 
existing blanket authority. The enlargement of the scope of permissible 
actions under part 157, subpart F, is restricted to actions necessary 
to restore service after an interruption due to an emergency event. By 
way of contrast, if hydrostatic testing discloses a structural weakness 
in a pipeline, while this weakness has the potential to cause an 
interruption in service, unless the pipeline has actually ruptured, 
these circumstances would not qualify as an emergency, as there would 
be no sudden unanticipated loss of gas or capacity. Accordingly, the 
pipeline company would be expected to act under other existing 
authority, such as section 2.55 of our regulations, to rectify the 
identified structural weakness. Similarly, part 157 would not apply to 
system modifications that boosted compression or mainline capacity 
unless the increase was undertaken as part of a program to restore 
service cut off as a consequence of an event resulting in a sudden 
unanticipated loss of gas or capacity.
    24. We propose to expand the ``eligible facility'' definition by 
amending the last line of Sec.  157.202(b)(2)(i) as follows: 
``Replacements for the primary purpose of creating additional main line 
capacity are not eligible facilities; however, replacements for the 
primary purpose of restoring service to prevent loss of life, 
impairment of health, or damage to property due to sudden unanticipated 
damage to main line facilities are eligible facilities.'' In addition, 
we propose to amend Sec.  157.202(b)(2)(ii)(C), which lists certain 
exclusions from eligible facilities, to clarify that facilities, 
including looping and compression, that alter the capacity of a 
mainline, when necessary to reconstitute service after sudden 
unanticipated damage to a mainline, will be considered replacement 
facilities for the primary purpose of restoring service, and be defined 
as eligible facilities. Specifically, we propose to revise Sec.  
157.202(b)(2)(ii)(C) to read as follows: ``A facility, including 
compression and looping, that alters the capacity of a main line, 
except replacement facilities covered under Sec.  157.202(b)(2)(i).''
    25. We believe this expanded blanket authority fills a gap that now 
confronts a pipeline unable to initiate recovery efforts when (1) 
section 2.55 of the regulations is inapplicable because of the need to 
construct outside the footprint of the existing facilities, (2) the

[[Page 4124]]

part 284, subpart I, emergency provisions are insufficient because the 
anticipated duration of the reconstruction effort will be longer than 
60 days, or (3) new facilities needed to restore service are not 
permitted under the existing part 157, subpart F, regulations because 
the new facilities would expand capacity on, extend, or loop a 
mainline. Although the proposed revisions enlarge the Sec.  157.202 
definition of eligible facilities, other constraints on construction 
under blanket authority remain.
    26. Among these other applicable constraints are regulations 
governing prior notice requirements, project cost limits, reporting 
requirements, and the standard conditions of Sec.  157.206, covering 
environmental compliance. While environmental compliance with certain 
statutory requirements lies beyond the Commission's jurisdictional 
purview, and is thus beyond our discretion to affect, we can act on our 
own to modify compliance with our own regulations. We propose to do so 
by removing prior notice and project cost limit requirements to permit 
a company to act under blanket authority to respond to an emergency 
caused by a sudden unanticipated loss of gas or capacity that threatens 
life, health, or property.
    27. Provided a project meets the relevant part 157 criteria, and 
will cost no more than $7.5 million,\21\ blanket authorization is 
automatic, and construction can commence at the sponsoring company's 
discretion. However, projects expected to exceed $7.5 million are 
subject to a 45-day prior notice provision, pursuant to Sec.  
157.205(a). We propose to modify Sec.  157.205(a) to provide an 
exception to these prior notice proceedings for emergency 
reconstruction, inserting the phrase ``except for activity required to 
restore service to prevent loss of life, impairment of health, or 
damage to property in an emergency due to a sudden unanticipated loss 
of natural gas supply or capacity,'' as follows: ``No activity 
described in Sec. Sec.  157.208(b), 157.211(a)(2), 157.214 or 
157.216(b), except for activity required to restore service in an 
emergency due to a sudden unanticipated loss of natural gas supply or 
capacity, is authorized by a blanket certificate granted under this 
subpart, unless, prior to undertaking such activity'' notice 
requirements are fulfilled. This proposed qualification presumes that 
in an emergency, the public interest in rectifying service at the 
earliest possible date will outweigh the public benefit of providing 
45-day advance notice of planned reconstruction.
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    \21\ As previously noted, this amount is adjusted annually, and 
appears in Table 1, column 1, of 18 CFR 157.208(d) (2002).
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    28. We note that although this proposed amendment will omit the 
prior 45-day public notice requirement of Sec.  157.205(a) in an 
emergency, we retain the separate prior landowner notice requirement of 
Sec.  157.203(d). Section 157.203(d) directs a company to make a good 
faith effort to notify all affected landowners 30 days prior to 
commencing construction. We expect a company that seeks to build around 
an accident site, as part of the process of considering alternative 
routes, will make a good faith effort to identify and inform affected 
landowners in advance of any new construction. Given the process 
involved in acquiring new easements, and given that landowners, to 
which pipeline companies must give 30-days notice pursuant to the 
Commission's landowner notification requirements, may agree to waive 
the remainder of that 30-day notice period, we do not expect this prior 
landowner notice provision to impede a company's capability to commence 
emergency reconstruction activities. The Commission recognizes that 
there may be instances where timely reconstruction of facilities could 
be delayed by companies' inability to obtain landowners' agreement to 
waive the remainder of the 30-notice period. In such instances, the 
Commission will consider requests to waive the remainder of the 30-day 
notice period.
    29. Even with mainline rerouting without prior notice, action under 
blanket authority would be thwarted if emergency reconstruction 
expenses were to exceed the part 157 project cost limit. Accordingly, 
we propose to lift the project cost cap for emergency response efforts. 
This proposed exemption is not to be interpreted as an invitation to 
undertake open-ended system expansions; it applies exclusively to 
emergency response projects, and extends only as far as is necessary to 
restore service to pre-emergency capacity levels.\22\ Therefore, we 
propose to amend Sec.  157.208(a) to provide for automatic 
authorization for emergency reconstruction, without any restriction on 
project cost, by interjecting the phrase ``or if the project is 
required to restore service to prevent loss of life, impairment of 
health, or damage to property in an emergency due to a sudden 
unanticipated loss of natural gas supply or capacity'' as follows:
---------------------------------------------------------------------------

    \22\ In an effort to encourage pipeline companies to quickly add 
capacity to meet pressing market needs in the Western United States 
(particularly California), we adopted several temporary measures. 
Removing Obstacles to Increased Electric Generation and Natural Gas 
Supply in the Western United States, 94 FERC ] 61,272 (2001), 
further order and reh'g dismissed, 95 FERC ] 61,225 (2001), order on 
requests for clarification and reh'g, 96 FERC ] 61,155 (2001). Inter 
alia, for the period May 14, 2001, through April 30, 2002, we 
increased the dollar limitations on blanket certificate projects 
under both the automatic provisions and the prior notice provisions 
for construction of facilities to deliver additional gas into the 
western region, expanded the scope of eligible facilities for such 
projects, and provided, upon request, for shortening of the 45-day 
prior notice time frame. We propose an analogous approach here, not 
to encourage additional construction, but to establish authority to 
be held in reserve, to be called upon to meet a specific need.

    If the project cost does not exceed the cost limitations set 
forth in column 1 of Table I, under paragraph (d) of this section, 
or if the project is required to restore service in an emergency due 
to a sudden unanticipated loss of natural gas supply or capacity, 
the certificate holder is authorized to make miscellaneous 
rearrangements of any facility, or acquire, construct, replace, or 
---------------------------------------------------------------------------
operate any eligible facility.

    30. In an emergency, the Commission expects to make, and expects 
affected pipelines to make, every reasonable effort to restore 
essential service as rapidly as possible. We believe these proposed 
amendments to part 157 offer the best way to authorize emergency 
reconstruction, particularly in view of the comparatively sparse use of 
and ambiguities that remain regarding the scope of the part 284 
emergency provisions. As noted , this proposed expanded blanket 
authority will apply only when acting in response to an emergency due 
to a sudden unanticipated loss of gas supply or capacity that threatens 
life, health, or property.\23\
---------------------------------------------------------------------------

    \23\ Emergency circumstances are extraordinary circumstances, 
and but for emergencies, we expect companies to proceed, as they 
have to date, to manage gas flows, system maintenance, and 
construction on their systems under the current authorities. Because 
we do not anticipate any need for the Commission to arbitrate what 
constitutes an emergency, we decline to adopt INGAA's proposal that 
the Commission declare that an emergency exists in order to trigger 
exemptions and actions. We believe pipeline companies will be able 
to identify emergencies conditions on their systems and invoke the 
proposed expanded blanket authority, as appropriate, without any 
preliminary determination from the Commission.
---------------------------------------------------------------------------

    31. Under the standard part 157.207 reporting requirements, a 
company submits an annual report--a compilation describing projects 
completed pursuant to blanket authority during the year. Since we are 
proposing to provide self-implementing automatic authorization for 
emergency reconstruction and to omit prior notice for emergency 
reconstruction, we find it prudent to require, in addition to an annual 
report, that companies relying

[[Page 4125]]

on automatic authorization for emergency activities report to the 
Commission their preparations and plans before breaking ground for 
reconstruction. Therefore, we propose to amend Sec.  157.207, which 
provides for an annual retrospective report, listing all blanket 
projects completed in the prior year. We propose to modify this to 
require prospective reporting for activities intended to restore 
service in response to an emergency, with the pipeline company 
informing the Commission of its intended activities in advance of 
reconstruction.
    32. We propose to include an emergency reporting requirement in 
Sec.  157.207 by revising the introductory paragraph of that section to 
read as follows: ``In the case of an emergency due to a sudden 
unanticipated loss of natural gas supply or capacity, the certificate 
holder must file, in the manner prescribed in Sec. Sec.  157.6(a) and 
385.2011 of this chapter, a report describing activity to be undertaken 
to restore service in advance of such activity in accordance with 
paragraph (i) of this section. In addition, on or before May 1 of each 
year, the certificate holder must file, in the manner prescribed in 
Sec. Sec.  157.6(a) and 385.2011 of this chapter, an annual report of 
all blanket certificate activities, including all activities undertaken 
to restore service following a sudden unanticipated loss of natural gas 
supply or capacity.''
    33. We recognize that in filing a report of an intended emergency 
activity, a company will be unable to supply all the information 
routinely set forth in a standard annual blanket report. For example, 
although it will not be possible to provide, before the fact, the Sec.  
157.208(e)(3) statement of the ``actual installed cost of each facility 
item,'' a company planning to proceed under blanket emergency 
authorization should nevertheless be able to provide projected costs. 
Thus, a proposed new paragraph (i) of Sec. 157.207 would require 
companies' reports of intended emergency activities to provide to the 
extent practicable the information required by the regulations cross-
referenced by Sec. 157.207 for the type of facilities involved. We do 
not expect this reporting requirement will retard efforts to restore 
interrupted service, since the report can be prepared coincident with a 
company's compliance with landowner notification and environmental 
requirements. Note that the advance report to the Commission is not an 
application awaiting a Commission response or a prior notice type of 
proceeding with a requisite waiting period. The report serves only to 
apprise the Commission of pending activity, and the submission of the 
description of the intended activity and location constitutes 
satisfaction of this reporting requirement.
    34. We do not view the proposed amendments to our regulations as a 
significant departure from our past practices. We routinely receive 
requests for exceptions from full regulatory compliance, and we 
routinely grant such requests when a company demonstrates good cause 
therefor. Further, implicit in the NGA section 7 temporary certificate, 
the section 2.55 replacement and repair regulations, and the part 284 
emergency provision, is the presumption that certain categories of 
equipment failure, human error, and natural disaster require immediate 
action. The Commission stands willing to grant pipeline companies 
latitude to construct, reconstruct, and rearrange facilities in an 
emergency due to a sudden unanticipated loss of gas or capacity that 
threatens life, health, or property. Finally, we do not expect the 
proposed amended provisions will be put to use with any regularity, 
since unlike the standard part 157 regulations, which are employed for 
routine or relatively minor system modifications, the emergency blanket 
provisions, by their nature, are only applicable in unexpected and 
atypical events.
    35. Although the Commission can determine that in certain 
circumstances the public convenience and necessity favor construction 
and transportation without full adherence to each existing certificate 
condition, the Commission cannot compromise compliance with statutory 
or regulatory requirements over which it has no jurisdictional 
authority. For example, regardless of any circumstances or any 
Commission finding, the environmental provisions of the National 
Environmental Policy Act (NEPA) and the safety provisions of DOT must 
be met. Thus, here, as in our 2001 temporary modification of part 157, 
``[w]e emphasize that projects under the expanded blanket authority 
will remain subject to our existing environmental regulations and 
compliance provisions''\24\ as set forth in Sec.  157.206(d) of our 
regulations.
---------------------------------------------------------------------------

    \24\ Id., 95 FERC ] 61,225, at 61,776.
---------------------------------------------------------------------------

    36. In an emergency, in addition to the need to identify and 
resolve environmental and safety issues promptly, easements for a new 
right-of-way may be needed promptly. If affected landowners agree, it 
may be possible to obtain the right-of-way without undue delay. 
Otherwise, even with the right to exercise eminent domain that is 
available to a pipeline company acting under part 157 blanket 
certificate authority, securing land rights may extend the duration of 
the service interruption.
    37. Since the Commission lacks the authority to modify certain 
environmental, safety, and land acquisition procedures, we will, as 
noted, compile and maintain a list of agencies that hold relevant 
permitting authorities. (A state's governor, for example, may have the 
authority to acquire easements expeditiously in the case of a state-
declared emergency.) Promptly alerting entities that will be involved 
in an emergency response should speed the planning, permissions, and 
reconstruction process.
    38. We expect these proposed amendments to part 157 will provide 
pipeline companies confronting an emergency outage with the flexibility 
to act on their own initiative, without the delay inherent in the 
process of applying for case specific authorizations from the 
Commission. At the same time, the Commission will retain regulatory 
oversight through the existing blanket certificate procedures 
sufficient to safeguard the public interest by ensuring pipelines 
respect landowner property rights and adhere to environmental and 
safety requirements. Any waiver of the regulatory requirements to 
restore service in an emergency will be subject to review by the 
Commission or its delegated agent.
    39. Finally, despite the advance report we are proposing in new 
subparagraph (i) of Sec.  157.207, we are concerned that emergency 
projects under expanded blanket authority should not proceed without 
Commission awareness of the details of the project as it goes forward. 
Accordingly, we will also propose to require any pipeline company that 
undertakes to replace facilities under the expanded blanket certificate 
authority proposed herein to consult with Commission staff during the 
period that the facilities are under construction and we shall require 
the Director of the Office of Energy Projects (OEP) to designate a 
staff member to be available to advise and consult on any such project. 
A staff member designated by the Director of OEP shall be present on 
the construction site as necessary or appropriate based on the nature 
of the project and shall have delegated authority to take whatever 
steps are necessary to insure the protection of all environmental 
resources during activities associated with construction of the 
project. This authority shall allow the design and implementation of 
any additional measures deemed necessary (including stop work 
authority) to

[[Page 4126]]

assure continued compliance with the intent of the environmental 
conditions as well as the avoidance or mitigation of adverse 
environmental impact resulting from project construction.

Request for Comments

    40. The Commission requests that comments on this proposal 
specifically address whether the proposed expansion of pipeline 
companies' authority under their part 157 blanket certificates will be 
sufficient in scope to adequately address situations where immediate 
action is necessary to restore gas service to prevent loss of life, 
impairment of health, or damage to property, and to provide for 
reconstruction of interstate pipeline facilities that have been 
destroyed or compromised by a sudden, unforeseen natural event or 
deliberate effort to disrupt the flow of natural gas. Commenters are 
invited to submit their views and comments on the need for further or 
broader action by the Commission or Congress.
    41. The Commission seeks comment on whether the blanket certificate 
authorization to construct mainline facilities outside an existing 
right-of-way should be self-implementing or, rather, subject to a 
finding by the Commission that an emergency exists and the pipeline's 
proposed actions are appropriate. Specifically, is INGAA's suggested 
approach sufficient in scope to address situations where immediate 
action is necessary to restore gas service lost due to a sudden 
unanticipated loss of gas or capacity? In the alternative, should there 
be a short review period in advance of commencing construction to 
provide the Commission an opportunity to review the actions proposed to 
be taken by the pipeline? For example, should the regulations provide 
that unless the Commission does not act to prohibit or modify the 
pipeline's replacement construction proposal within three days of a 
pipeline's advance report of intended reconstruction, then the pipeline 
may commence reconstruction (compare Sec.  284.264(b)(1)(ii) of the 
regulations)? Lastly, we seek comment on whether the proposed expanded 
emergency blanket authority should be restricted to include activities 
undertaken in response to a sudden unanticipated loss of gas or 
capacity due only to a natural disaster or act of deliberate damage.

Information Collection Statement

    42. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain information collection requirements imposed by 
agency rule.\25\ This proposed rule will not impact information 
collection. Accordingly, there is no cause to submit this proposed rule 
to OMB for review under Section 3507(d) of the Paperwork Reduction Act 
of 1995, 44 U.S.C. 3507(d).
---------------------------------------------------------------------------

    \25\ 5 CFR part 1320 (2002).
---------------------------------------------------------------------------

Environmental Analysis

    43. The Commission is required to prepare an EA or EIS for any 
action that may have a significant adverse effect on the human 
environment.\26\ The Commission has categorically excluded certain 
actions from these requirements as not having a significant effect on 
the human environment.\27\ Section 380.4(a)(21) provides that neither 
an environmental assessment nor an environmental impact statement will 
be prepared for the approval of blanket applications pursuant to prior 
notice filings under Sec. Sec. 157.209 through 157.218 of the blanket 
certificate regulations. The actions proposed herein provide for the 
emergency reconstruction of previously authorized facilities and thus 
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 the sale, exchange, and 
transportation of natural gas that requires no construction of 
facilities.\28\ Therefore, an environmental assessment is unnecessary 
and has not been prepared in this rulemaking.
---------------------------------------------------------------------------

    \26\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & 
Regs. Preambles 1986-1990 ] 30,783 (1987).
    \27\ 18 CFR 380.4 (2002).
    \28\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27) 
(2002).
---------------------------------------------------------------------------

Regulatory Flexibility Act Certification

    44. The Regulatory Flexibility Act of 1980 (RFA) \29\ requires 
agencies to prepare certain statements, descriptions, and analyses of 
proposed rules that will have significant economic impact on a 
substantial number of small entities. Agencies are not required to make 
such an analysis if a rule would not have such an effect. The 
Commission does not believe that this proposed rule would have such an 
effect on small business entities, since the proposed amendments to our 
regulations would apply only to interstate pipelines, most of which are 
not small businesses. Accordingly, pursuant to section 605(b) of the 
RFA, the Commission proposes to certify that the regulations proposed 
herein will not have a significant adverse impact on a substantial 
number of small entities.
---------------------------------------------------------------------------

    \29\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

Comment Procedures

    45. 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. An original and 14 copies of comments 
must be filed with the Commission no later than February 27, 2003 and 
may be filed either in electronic or paper format. Those filing 
electronically do not need to make a paper filing.
    46. Documents filed electronically via the Internet can be prepared 
in a variety of formats, including WordPerfect, MS Word, Portable 
Document Format, Rich Text Format, or ASCII format, as listed on FERC's 
Web site at http://ferc.gov, under the eFiling link. The eFiling link 
provides instructions for how to log in and complete an electronic 
filing. 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 202-502-8258 or by e-mail to 
[email protected]. Comments should not be submitted to the e-mail 
address.
    47. 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 Nos. RM03-4-000 and AD02-14-000.
    48. 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 FERC's Web 
site using the Federal Energy Regulatory Records Information System 
(FERRIS) link.

Document Availability

    49. 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 Web site at http://www.ferc.gov 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.
    50. From FERC's Home Page on the Internet, this information is 
available in

[[Page 4127]]

FERRIS. The full text of this document is available via FERRIS in 
Portable Document Format (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 docket number field.
    51. User assistance is available for FERRIS and FERC's Web site 
during normal business hours. For assistance, contact FERC Online 
Support at [email protected] or toll-free at (866) 208-3676, 
or for TTY contact (202) 502-8659.

List of Subjects in 18 CFR part 157

    Administrative practice and procedure, Natural gas, Reporting and 
record keeping requirements.

    By direction of the Commission.
Magalie R. Salas,
Secretary.
    In consideration of the foregoing, the Commission proposes to amend 
part 157, Chapter I, Title 18, Code of Federal Regulations, as follows.

PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND 
NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER 
SECTION 7 OF THE NATURAL GAS ACT

    1. The authority citation for part 157 continues to read as 
follows:

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

    2. In Sec.  157.202, the last sentence in paragraph (b)(2)(i) and 
paragraph (b)(2)(ii)(C) are revised to read as follows:


Sec.  157.202  Definitions.

* * * * *
    (b) Subpart F definitions. * * *
    (2)(i) * * * Replacements for the primary purpose of creating 
additional main line capacity are not eligible facilities; however, 
replacements for the primary purpose of restoring service to prevent 
loss of life, impairment of health, or damage to property due to sudden 
unanticipated damage to main line facilities are eligible facilities.
    (ii) Exclusions: * * *
    (C) A facility, including compression and looping, that alters the 
capacity of a main line, except replacement facilities covered under 
Sec.  157.202(b)(2)(i);
* * * * *
    3. In Sec.  157.205, paragraph (a), introductory text, is revised 
to read as follows:


Sec.  157.205  Notice procedure.

    (a) Applicability. No activity described in Sec. Sec.  157.208(b), 
157.211(a)(2), 157.214 or 157.216(b), except for activity required to 
restore service to prevent loss of life, impairment of health, or 
damage to property in an emergency due to a sudden unanticipated loss 
of natural gas supply or capacity, is authorized by a blanket 
certificate granted under this subpart, unless, prior to undertaking 
such activity:
* * * * *
    4. In Sec.  157.207, the introductory text is revised and a new 
paragraph (i) is added to read as follows:


Sec.  157.207  General reporting requirements.

    In the case of an emergency due to a sudden unanticipated loss of 
natural gas supply or capacity, the certificate holder must file, in 
the manner prescribed in Sec. Sec.  157.6(a) and 385.2011 of this 
chapter, a report describing activity to be undertaken to restore 
service in advance of such activity in accordance with paragraph (i) of 
this section. In addition, on or before May 1 of each year, the 
certificate holder must file, in the manner prescribed in Sec. Sec.  
157.6(a) and 385.2011 of this chapter, an annual report of all blanket 
certificate activities, including all activities undertaken to restore 
service following a sudden unanticipated loss of natural gas supply or 
capacity. The annual report must be signed under oath by a senior 
official of the company and list for the previous calendar year:
* * * * *
    (i) Reports describing emergency activities to be undertaken to 
restore service following a sudden unanticipated loss of natural gas 
supply or capacity shall to the extent practicable contain the 
information for the facilities as required by the pertinent regulatory 
provisions specified in paragraphs (a) through (h) of this section. The 
report shall include the estimated costs of each activity and an 
updated USGS 7\1/2\ minute series (scale 1:24000) topographic map (or 
map of equivalent or greater detail, as appropriate) showing the 
location of existing and proposed facilities, and indicating the 
location of any sensitive environmental areas crossed by either the 
existing or proposed facilities.
    5. In Sec.  157.208, paragraph (a) is revised to read as follows:


Sec.  157.208  Construction, acquisition, operation, replacement, and 
miscellaneous rearrangement of facilities.

    (a) Automatic authorization. If the project cost does not exceed 
the cost limitations set forth in column 1 of Table I, under paragraph 
(d) of this section, or if the project is required to restore service 
to prevent loss of life, impairment of health, or damage to property in 
an emergency due to a sudden unanticipated loss of natural gas supply 
or capacity, the certificate holder is authorized to make miscellaneous 
rearrangements of any facility, or acquire, construct, replace, or 
operate any eligible facility. For projects undertaken pursuant to this 
section to restore service to prevent loss of life, impairment of 
health, or damage to property due to a sudden unanticipated loss of 
natural gas supply or capacity, the Director of the Office of Energy 
Projects shall designate a staff member to advise and consult with the 
certificate holder, and the certificate holder shall consult with the 
designated staff member during the period that the construction is in 
progress. A staff member designated by the Director of the Office of 
Energy Projects shall be present on the construction site as necessary 
or appropriate based on the nature of the project and shall have 
delegated authority to take whatever steps are necessary to insure the 
protection of all environmental resources during activities associated 
with construction of the project. This authority shall allow the design 
and implementation of any additional measures deemed necessary 
(including stop work authority) to assure continued compliance with the 
intent of the environmental conditions as well as the avoidance or 
mitigation of adverse environmental impact resulting from project 
construction.
* * * * *

[FR Doc. 03-1698 Filed 1-27-03; 8:45 am]
BILLING CODE 6717-01-P [FEDREG][VOL]*[/VOL][NO]*[/NO][DATE]*[/
DATE][PRORULES]