[Federal Register Volume 70, Number 111 (Friday, June 10, 2005)]
[Proposed Rules]
[Pages 33873-33877]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-11543]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 260 and 284

[Docket No. RM05-12-000]


Modification of Natural Gas Reporting Regulations

May 27, 2005.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
proposing to amend its regulations to standardize the filing format for 
reporting natural gas service interruptions and emergency natural gas 
sale, transportation and exchange. The Commission is also proposing to 
modernize the filing method, develop a tracking method for filings, and 
develop an electronic notification system to notify appropriate 
Commission staff when the information is filed with the Commission. In 
addition, the Commission seeks comment on affording Critical Energy 
Infrastructure Information (CEII) protection where applicable. These 
modifications are the result of a review conducted by the Commission's 
Information Assessment Team (FIAT) of the Commission's current 
information collections by evaluating their original purposes and 
current uses, and to propose ways to reduce the reporting burden on 
industry through the elimination, reduction, streamlining or 
reformatting of current collections. The modification of the 
regulations to modernize the filing method and standardize the filing 
format should streamline the process and reduce the burden of filing 
information under FERC-576 ``Report of Natural Gas Service 
Interruptions'' and FERC-588 ``Emergency Natural Gas Sale, 
Transportation and Exchange Transactions.'' In addition, the Commission 
proposes to provide CEII protection for the information contained on 
both information collection requirements and seeks comment on this 
proposal. The Commission believes these modifications will not in any 
way prejudice the rights of any participant in those proceedings or 
anyone interested in the Commission's natural gas program.

DATES: Comments are due July 25, 2005.

ADDRESSES: Comments may be filed electronically via the eFiling link on 
the Commission's Web site at http://www.ferc.gov. Commenters unable to

[[Page 33874]]

file comments electronically must send an original and 14 copies of 
their comments to: The Federal Energy Regulatory Commission, Office of 
the Secretary, 888 First Street, NE., Washington, DC 20426. Refer to 
the Comment Procedures section of the preamble for additional 
information on how to file comments.

FOR FURTHER INFORMATION CONTACT:

Michael Miller (Technical Information), Office of Executive Director, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8415.
Michael McGehee (Technical Information), Office of Energy Projects, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8962.
Jacqueline Holmes (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8198.

SUPPLEMENTARY INFORMATION:

Introduction

    The Federal Energy Regulatory Commission (Commission) has reviewed 
its natural gas regulations in order to determine whether they contain 
any outdated requirements or impose any unnecessary burdens on persons 
subject to the Commission's jurisdiction. This review was conducted by 
the FERC Information Assessment Team (FIAT) that was tasked by the 
Chairman to assess the Commission's information needs. Goal 2 of the 
tasks identified by the team to meet this mission included identifying 
all of the Commission's current information collections, through forms 
and filing requirements (electric, hydropower, natural gas, oil and 
general), and evaluate their original purposes and current uses, and 
propose ways to reduce the reporting burden on industry through 
elimination, reduction, streamlining or reformatting of current 
collections. The modification of the regulations proposed in this rule 
will modernize the filing method and standardize the filing format to 
ensure greater filing efficiency for the information filed under FERC-
576 ``Report of Natural Gas Service Interruptions'' and FERC-588 
``Emergency Natural Gas Sale, Transportation and Exchange 
Transactions.'' In addition, because information filed under both 
information collections reference the location of energy facilities, 
the Commission is proposing to limit access to this information under 
its Critical Energy Infrastructure Information (CEII) procedures. The 
Commission believes that these modifications would not in any way 
prejudice the rights of any participant in those proceedings or anyone 
interested in the Commission's natural gas program.

Background

    1. Under the Natural Gas Act (NGA) (Public Law 75-688) \1\ a 
natural gas company must obtain the Commission's authorization to 
engage in the transportation or exchange of natural gas in interstate 
commerce. The Commission oversees the continuity of service in the 
transportation of natural gas in interstate commerce. Under section 
7(d) of the NGA,\2\ the Commission may issue a temporary certificate in 
cases of emergency to ensure maintenance of adequate service or to 
serve particular customers without notice or hearing. Section 10(a) of 
the NGA \3\ requires natural gas pipeline companies to file reports 
with the Commission as prescribed by rules or regulations or by order 
as appropriate, to assist the Commission in performing its regulatory 
duties. The provisions of section 16 of the NGA \4\ authorize the 
Commission to prescribe forms, statements, declarations and reports, 
including the information they are to contain and the time frames for 
filing the information.
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    \1\ 15 U.S.C. 717-717w. (2000).
    \2\ 15 U.S.C. 717f. (2000).
    \3\ 15 U.S.C. 717i. (2000).
    \4\ 15 U.S.C. 717o. (2000).
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    2. The information filed under FERC-576 ``Report of Natural Gas 
Service Interruptions'' notifies the Commission in a timely manner of 
any interruption to service or possible hazard to public health or 
safety. The Commission, in response to timely notification of a serious 
interruption, may contact other pipelines to determine available 
supply, and if necessary, authorize transportation or construction of 
facilities to alleviate the problem. The information collected 
identifies serious interruptions of service to any wholesale customer 
involving facilities operated under the Commission's certificate 
authorization. The information collected may include: (1) The date of 
service interruption; (2) the date of reporting of the interruption to 
the Commission; (3) location of the interruption; (4) brief description 
of the facility involved and the cause of the interruption; (5) 
customer(s) affected; (6) duration of the interruption, and (7) volumes 
of natural gas interrupted.
    3. FERC-588 ``Emergency Natural Gas Sale, Transportation and 
Exchange Transactions'' is also authorized by the provisions of the 
NGA. However, section 7(c)(1)(B) of the NGA exempts from certificate 
requirements ``temporary acts or operations for which the issuance of a 
certificate will not be required in the public interest.'' \5\ The 
Natural Gas Policy Act (NGPA) (Public Law 95-621) \6\ also provides for 
the reporting of non-certificated interstate transactions involving 
intrastate pipelines and local distribution companies.
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    \5\ 15 U.S.C. 717f. (2000).
    \6\ 15 U.S.C. 3301-3432. (2000).
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    4. An emergency is defined as any situation in which an actual or 
expected shortage of gas supply or capacity would require an interstate 
pipeline company, intrastate pipeline company, local distribution 
company or Hinshaw pipeline to curtail deliveries of gas or provide 
less than the projected level of service to any customer. These 
situations include a sudden, unanticipated loss of natural gas supply 
or capacity, sudden, anticipated loss of natural gas supply or 
capacity, or any situation in which the participant, in good faith, 
determines that immediate action is required for the protection of life 
or health or the maintenance of physical property. Respondents are to 
file a report within forty-eight hours after the commencement of the 
transportation, sale or exchange of deliveries of natural gas commence, 
a request to extend the sixty-day term of the emergency transportation, 
if needed, and a termination report.

Discussion

    5. In this Notice of Proposed Rulemaking (NOPR) the Commission is 
proposing to amend parts 260 and 284 of its regulations governing 
interruptions of natural gas service to wholesale customers involving 
certificated facilities (18 CFR 260.9) and the emergency reconstruction 
of certificated facilities (18 CFR 284.270).
    6. The Commission intends to modernize the filing method and to 
assist jurisdictional entities when filing information in response to 
the requirements of 18 CFR 260.9 ``Report by natural gas pipeline 
companies on service interruptions occurring on the pipeline system'' 
and 18 CFR subpart I ``Emergency natural gas sale, transportation, and 
exchange transactions.'' The Commission will provide for the electronic 
submission of data, and will standardize the filing format. In 
addition, the Commission proposes to develop an internal tracking 
mechanism to provide staff with timely information on the submission of

[[Page 33875]]

reports for service interruptions and emergency natural gas transaction 
reports. The latter, as required by 18 CFR 284.270, calls for the 
submission of forty-eight hour reports for sales transactions, 
transportation, exchanges and the termination reports.
    7. The current requirements of 18 CFR 260.9 direct that natural gas 
pipeline companies must report to the Commission serious service 
interruptions to communities, major Government installations and large 
industrial plants outside of communities, or interruptions that the 
pipeline considers to be significant. The pipeline must notify the 
Commission of the interruption with the following information: (1) The 
location of the interruption; (2) the time of the interruption; (3) the 
customers affected by the interruption and (4) the emergency actions 
taken to maintain the service. The pipeline must also provide the 
Commission with a copy of the failure report filed with the Department 
of Transportation, and the pipeline must file the interruption report 
with the state commissions in the affected states. Natural gas pipeline 
companies currently submit this information in hardcopy as well as any 
electronic means, including facsimile transmission or telegraph.
    8. The information provided for under 18 CFR 284.270 of the 
Commission's regulations permits the Commission to determine whether an 
emergency gas sale, transportation or exchange qualifies for an 
exemption under section 7(c) of the NGA. The information must be filed 
within 48 hours after an emergency transaction begins, and within 30 
days after termination of the transaction. The filer must also submit a 
report with the U.S. Department of Transportation and may use the 
telegraph as a medium for transmitting this information.
    9. Because the telegraph is an outdated method for submitting this 
information, the Commission proposes to require instead the electronic 
submission of the information required in both 18 CFR 260.9 and 18 CFR 
284.270. For Internet filing provisions, see 18 CFR 385.2003 (c). The 
benefits of having this information filed electronically include 
efficient delivery of the information, immediate confirmation to the 
filer of the Commission's receipt of the information, and almost 
immediate access by Commission staff. The electronic submission of 
information will reduce the number of data entry errors, permit 
Commission staff to conduct analysis in a timely manner, and provide 
for the storage of information on optical storage media, thus saving 
valuable storage. Electronic reporting will also provide time and 
resource savings for all parties by reducing the number of personnel 
needed to submit paper filings, particularly since it will eliminate 
paper processing and mailing. All parties, including the Commission, 
will benefit by having current data and the integrity of the data will 
increase because jurisdictional entities and the Commission will be 
able to correct the errors more promptly.
    10. In Order No. 630 \7\, the Commission issued procedures for 
gaining access to CEII, which would not otherwise be made available 
under the Freedom of Information Act.\8\ These procedures made in the 
aftermath of the September 11, 2001 terrorist attacks, and instituted 
to restrict unrestrained access to certain types of information because 
of the threat of terrorism, keep sensitive infrastructure information 
out of the public domain. By placing restrictions on the use of this 
information, the Commission will decrease the likelihood terrorists 
could use such information to plan or execute terrorist attacks. The 
Commission defines CEII as information about ``existing or proposed 
critical infrastructure that: (i) Relates to the production, 
generation, transportation, transmission, or distribution of energy; 
(ii) could be useful to a person planning an attack on critical 
infrastructure; (iii) is exempt from mandatory disclosure under the 
Freedom of Information Act; and, (iv) does not simply give the location 
of critical infrastructure.'' (18 CFR 388.113 (c)(1)) Critical 
infrastructure means ``existing or proposed systems and assets, whether 
physical or virtual, the incapacity or destruction of which would 
negatively affect security, economic security, public health or safety, 
or any combination of these matters.'' (18 CFR 388.113(c)(2)) In 
submitting information under both 18 CFR 260.9 and 284.270, pipelines 
must provide descriptions of the facilities and their location in order 
to describe why there is an interruption of service or the measures 
that they are taking to reconstruct the pipeline. If this information 
remained publicly available, it could provide those planning or 
executing terrorist attacks with an opportunity to take advantage of 
vulnerabilities in the energy infrastructure. It is for this reason the 
Commission seeks comment on placing the information filed in response 
to 18 CFR 260.9 and 18 CFR 284.270 under CEII protection. CEII may be 
released to a requester with a legitimate need for the information who 
is willing to abide by an appropriate non-disclosure agreement. See 18 
CFR 3881.113.
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    \7\ Critical Energy Infrastructure Information, 68 FR 9857 
(March 3, 2003), FERC Stats. & Regs. ]31,140 (2003).
    \8\ 5 U.S.C. 552. (2000).
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Information Collection Statement

    11. The Office of Management and Budget (OMB) regulations require 
OMB to approve certain information collection requirements imposed by 
agency rule.\9\ Comments are solicited on the Commission's need for 
this information, whether the information will have practical utility, 
the accuracy of the provided burden estimates, 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.
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    \9\ 5 CFR 1320.11.
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12. Estimated Annual Burden

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                                                                                     Number of
                 Data collection                     Number of       Number of       hours per     Total annual
                                                    respondents      responses       response          hours
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FERC-576........................................              22               1               1              22
FERC-588........................................               8               1              10              80
                                                 -----------------
    Totals......................................  ..............  ..............  ..............             102
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[[Page 33876]]

    Title: Report of Service Interruptions (FERC-576). Emergency 
Natural Gas Sale, Transportation & Exchange (FERC-588).
    Action: Proposed Collections.
    OMB Control Nos. 1902-0004 & 1902-0144.
    Respondents: Businesses or other for profit.
    Frequency of Responses: On occasion.
    Necessity of the Information: The proposed regulations will revise 
the reporting requirements for service interruptions and emergency 
transactions to streamline the requirements and reduce the burden for 
the respondents. The information filed with the Commission informs it 
of serious natural gas pipeline service interruptions and also of the 
need for emergency reconstruction of natural gas pipelines or the need 
to sell, transport or make exchanges due to actual or expected 
shortages of gas supply.
    Internal Review: The Commission has reviewed the proposed 
amendments to its regulations to modify the filing method, standardize 
the format and create an internal tracking mechanism for Commission 
staff. The revisions to the regulations will provide more effective and 
efficient information by providing current data by electronic 
submission. This method of filing will reduce data errors and thus 
preserve the integrity of the data. The Commission will be able to 
conduct further analysis of filed reports in a more timely fashion and 
expedite dissemination to Commission staff to ensure a timely response. 
The Commission also proposes to change the availability of the 
information to the public by classifying it as subject to CEII 
protection and seeks comment on this proposal. By invoking this 
protection, the Commission seeks to minimize the available information 
on vulnerabilities in the energy infrastructure to those persons who 
either plan or will execute a terrorist attack. The Commission has 
assured itself, by means of internal review, that there is specific, 
objective support for the burden estimates associated with the 
information collection requirements.
    Interested persons may obtain information on the information 
requirements by contacting the following: The Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426 (Attention: 
Michael Miller, Office of the Executive Director, phone (202) 502-8415, 
fax: (202) 273-0873, e-mail: [email protected]).
    For submitting comments concerning the collection of information(s) 
and the associated burden estimate(s), please send your comments 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) 395-4650, fax: (202) 395-7285).

Environmental Analysis

    13. 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.\10\ The 
Commission has categorically excluded certain actions from this 
requirement as not having a significant effect on the human 
environment. Included in the exclusion are rules that are clarifying, 
corrective, or procedural or that do not substantially change the 
effect of the regulations being amended.\11\ This proposed rule, if 
finalized, is procedural in nature and therefore falls under this 
exception. Therefore, no environmental consideration would be 
necessary.
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    \10\ 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).
    \11\ 18 CFR 380.4(a)(2)(ii).
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Regulatory Flexibility Act Certification

    14. The Regulatory Flexibility Act of 1980 (RFA) \12\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small 
entities.\13\ The Commission is not required to make such an analysis 
if a rule would not have such an effect.
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    \12\ 5 U.S.C. 601-612 (2000).
    \13\ The RFA definition of ``small entity'' refers to the 
definition provided in the Small Business Act, which defines a 
``small business concern'' as a business which is independently 
owned and operated and which is not dominant in its field of 
operation. 15 U.S.C. 632 (2000). The Small Business Size Standards 
component of the North American Industry Classification System 
defines a small pipeline for transportation of natural gas as one 
that, including its affiliates, did not have total annual revenues 
for the preceding fiscal years exceeding $6.0 million. 13 CFR 
121.201 (Sectors 48-49, Sub sector 486, Pipeline Transportation, 
North American Industry Classification System, NAICS) ( 2004).
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    15. The Commission does not think that the proposed amendments to 
its regulations would have such an impact on small entities. Based on 
past experience, most of the pipelines filing either an interruption 
service report or an emergency transaction report under the proposed 
regulations would be entities that do not meet the RFA's definition of 
a small entity. Further, if the proposed regulations are adopted, all 
pipelines, including small entities, should benefit through reduced 
staffing and processing costs by being able to submit this information 
electronically. Therefore, the Commission certifies that this rule will 
not have a significant impact on a substantial number of small 
entities.

Comment Procedures

    16. The Commission invites interested persons to submit comments on 
the matters and issues that it proposes to adopt, including any related 
matters or alternative proposals that commenters may wish to discuss. 
Comments are due July 25, 2005. Comments must refer to Docket No. RM05-
12-000, and must include the commenter's name, the organization they 
represent, if applicable, and their address in their comments.
    17. Comments may be filed electronically via the eFiling link on 
the Commission's Web site at http://www.ferc.gov. The Commission 
accepts most standard word processing formats and commentors may attach 
additional files with supporting information in certain other file 
formats. Commenters filing electronically do not need to make a paper 
filing. Commenters that are not able to file comments electronically 
must send an original and 14 copies of their comments to: The Federal 
Energy Regulatory Commission, Office of the Secretary, 888 First Street 
NE., Washington, DC, 20426.
    18. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commentors commenting on this 
proposal are not required to serve copies of their comments on other 
commenters.

Document Availability

    19. 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 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.
    20. From FERC's Home Page on the Internet, this information is 
available in the eLibrary. The full text of this document is available 
in the eLibrary both in PDF and Microsoft Word format for viewing, 
printing, and/or downloading. To access this document in eLibrary, type 
the docket number, excluding the last three digits of this document, in 
the docket number field.

[[Page 33877]]

    21. User assistance is available for eLibrary and the 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. E-Mail the Public Reference Room at 
[email protected] or 202-502-8371.

List of Subjects

18 CFR Part 260

    Statements, Reporting and recordkeeping requirements.

18 CFR Part 284

    Natural gas, Reporting and recordkeeping requirements.

    By direction of the Commission.
Linda Mitry,
Deputy Secretary.
    In consideration of the foregoing, the Commission proposes to amend 
parts 260 and 284, title 18 of the Code of Federal Regulations, as set 
forth below:

PART 260--STATEMENTS AND REPORT (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. Amend Sec. 260.9 by revising paragraphs (b) introductory text 
and (e), and by adding a note following paragraph (b)(4) to read as 
follows:


Sec.  260.9  Report by natural gas pipeline companies on service 
interruptions occurring on the pipeline system.

* * * * *
    (b) Reporting requirement. Natural gas pipeline companies must 
report such interruptions to service by electronic submission, to the 
Commission and the Director, Division of Pipeline Certificates, Office 
of Energy Projects, Federal Energy Regulatory Commission, Washington, 
DC 20426 (Fax: (202) 502-8625) at the earliest feasible time following 
such interruption to service, and must state briefly:
* * * * *
    Note to paragraph (b): Submit in electronic format in accordance 
with Sec.  385.2003 of this chapter. This report is an electronic file 
that is classified as a ``qualified document.'' As a qualified 
document, no paper copy version of the filing is required unless there 
is a request for privileged and protected treatment or the document is 
combined with another document as provided in Sec.  385.2003(c)(3) or 
(4).
* * * * *
    (e) Copies of the report on interruption of service must be sent 
electronically to the State commission in those States where service 
has been or might be affected.

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. 7101-7352; 
43 U.S.C. 1331-1356.

    2. Amend Sec. 284.270 by adding introductory text and by revising 
paragraphs (a) introductory text, (b) introductory text, and (c) 
introductory text to read as follows:


Sec.  284.270  Reporting requirements.

    Each report shall be submitted in electronic format in accordance 
with Sec.  385.2003 of this chapter. All reports are electronic files 
classified as ``qualified documents.'' As qualified documents, no paper 
copy version of the filing is required unless there is a request for 
privileged and protected treatment or the document is combined with 
another document as provided in Sec.  385.2003(c)(3) or (4).
    (a) Forty-eight hour report for sales transactions. Within 48 hours 
after deliveries of emergency natural gas commence, the purchasing 
participant must notify the Commission electronically of the sale, 
stating, in the following sequences:
* * * * *
    (b) Forty-eight hour report for transportation (excluding 
exchanges). Within 48 hours after deliveries commence in an emergency 
natural gas transaction which does not involve the sale of emergency 
natural gas, the recipient of the emergency natural gas shall notify 
the Commission electronically of the transportation, stating in the 
following sequence:
* * * * *
    (c) Forty-eight hour report for exchanges. Within 48 hours after an 
exchange transaction for emergency natural gas commences, the initial 
recipient of the exchange volumes shall notify the Commission 
electronically of the exchange, stating in the following sequence:
* * * * *
[FR Doc. 05-11543 Filed 6-9-05; 8:45 am]
BILLING CODE 6717-01-P