[Federal Register Volume 73, Number 187 (Thursday, September 25, 2008)]
[Proposed Rules]
[Pages 55460-55464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22206]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 284

[Docket No. RM96-1-029]


Standards for Business Practices of Interstate Natural Gas 
Pipelines

September 18, 2008.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission is proposing to amend 
its regulations governing standards for business practices of 
interstate natural gas pipelines to incorporate by reference the most 
recent version of the standards, Version 1.8, adopted by the Wholesale 
Gas Quadrant of the North American Energy Standards Board (NAESB) and 
to make other minor corrections.

DATES: Comments are due November 10, 2008.

ADDRESSES: You may submit comments, identified by docket number by any 
of the following methods:
     Agency Web Site: http://www.ferc.gov. Documents created 
electronically using word processing software should be filed in native 
applications or print-to-PDF format and not in a scanned format.
     Mail/Hand Delivery: Commenters unable to file comments 
electronically must mail or hand deliver an original and 14 copies of 
their comments to: Federal Energy Regulatory Commission, Secretary of 
the Commission, 888 First Street, NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT: 

Gary D. Cohen, Office of the General Counsel, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, 202-502-8321.
William W. Lohrman, Office of Energy Market Regulation, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 
202-502-8070.
Kay I. Morice, Office of Energy Market Regulation, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 
202-502-6507.

SUPPLEMENTARY INFORMATION:
    1. The Federal Energy Regulatory Commission (Commission) proposes 
to amend Sec.  284.12 of its regulations (which prescribes standards 
for pipeline business operations and communications) \1\ to incorporate 
by reference the most recent version, Version 1.8, of the consensus 
standards adopted by the Wholesale Gas Quadrant (WGQ) of the North 
American Energy Standards Board (NAESB) (Version 1.8 Standards). In 
addition, the Commission proposes to amend Sec.  284.12(b) of its 
regulations to make minor corrections.
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    \1\ 18 CFR 284.12.
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I. Background

    2. Since 1996, in the Order No. 587 series,\2\ the Commission has 
adopted regulations to standardize the business practices and 
communication methodologies of interstate pipelines in order to create 
a more integrated and efficient pipeline grid. In this series of 
orders, the Commission incorporated by reference consensus standards 
developed by the WGQ (formerly the Gas Industry Standards Board or 
GISB),

[[Page 55461]]

a private consensus standards developer composed of members from all 
segments of the natural gas industry. The WGQ is an accredited 
standards organization under the auspices of the American National 
Standards Institute (ANSI). NAESB's stated mission is to ``take the 
lead in developing and implementing standards across the industry to 
simplify and expand electronic communication, and to streamline 
business practices. The vision of NAESB is a seamless North American 
marketplace for energy, as recognized by its customers, the business 
community, industry participants and regulatory bodies.'' \3\
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    \2\ Standards for Business Practices of Interstate Natural Gas 
Pipelines, Order No. 587, 61 FR 39,053 (July 26, 1996), FERC 
Statutes and Regulations, Regulations Preambles July 1996-December 
2000 ] 31,038 (July 17, 1996).
    \3\ NAESB WGQ Working Paper on Internet Electronic Transport at 
6, dated Mar. 3, 2004.
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    3. On September 14, 2007, NAESB submitted a report to the 
Commission stating that it had adopted a new version of its standards, 
Version 1.8, dated September 30, 2006.\4\ NAESB reports that the 
Version 1.8 Standards include a new set of standards for ``Internet 
Electronic Transport'' that is applicable to the retail gas and 
electric markets as well as the wholesale gas market, changes to the 
Electronic Delivery Mechanism (EDM) Related Standards, an additional 
standard related to reporting on gas quality, and maintenance changes 
to the Nomination Related Standards and Flowing Gas Related 
Standards.\5\ NAESB also reports that the Version 1.8 standards include 
several standards already adopted by the Commission, including gas-
electric coordination standards to support communications between 
pipelines and gas-fired generators,\6\ gas quality reporting standards 
to support reporting of gas quality specifications and reporting of the 
underlying assumptions and methodologies, and business practice 
standards to support implementation of Order No. 2004 on Standards of 
Conduct.\7\
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    \4\ Some of the standards subsequently were corrected and these 
minor corrections were applied to the Version 1.8 Capacity Release 
Related Standards on Dec. 13, 2006.
    \5\ The NAESB WGQ adopted Internet Electronic Transport Related 
Standards, Version 1.8, on Sept. 30, 2006. The EDM Standards require 
pipelines to conduct certain standardized business transactions 
across the Internet according to certain prescribed protocols. In 
this NOPR, the Commission proposes to make these standards mandatory 
for interstate natural gas pipelines. We are not proposing to make 
these standards mandatory for retail transactions.
    \6\ Standards for Business Practices for Interstate Natural Gas 
Pipelines; Standards for Business Practices for Public Utilities, 
Order No. 698, 72 FR 38,757 (July 16, 2007), FERC Stats. & Regs., 
Regulations Preambles ] 31,251 (June 25, 2007); Order No. 698-A, 
order granting clarification and denying reh'g, 121 FERC ] 61,264 
(2007).
    \7\ Standards of Conduct for Transmission Providers, Order No. 
2004, 68 FR 69,134 (Dec. 11, 2003), FERC Stats. & Regs., Regulations 
Preambles ] 31,155 (Nov. 25, 2003); Order No. 2004-A, order on 
reh'g, 69 FR 23,562 (Apr. 29, 2004), FERC Stats. & Regs., 
Regulations Preambles ] 31,161 (Apr. 16, 2004); Order No. 2004-B, 
order on reh'g, 69 FR 48,371 (Aug. 10, 2004), FERC Stats. & Regs., 
Regulations and Preambles ] 31,166 (Aug. 2, 2004); Order No. 2004-C, 
order on reh'g, 70 FR 284 (Jan. 4, 2005), FERC Stats. & Regs., 
Regulations Preambles ] 31,172 (Dec. 21, 2004); Order No. 2004-D, 
order on clarification and reh'g, 110 FERC ] 61,320 (2005).
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II. Discussion

    4. The Commission proposes to incorporate by reference in its 
regulations Version 1.8 of the NAESB WGQ's consensus standards,\8\ with 
two exceptions.\9\ Adoption of Version 1.8 will continue the process of 
updating and improving NAESB's business practice standards for the 
wholesale gas market. The new Internet Electronic Transport Related 
Standards will help create a more seamless electronic marketplace by 
providing consistent electronic protocols across the wholesale gas, as 
well as the retail gas and retail electric markets. The standards also 
include a new standard for gas quality reporting (Standard 4.3.93) that 
will provide the industry with important information about how 
pipelines determine gas quality. Standard 4.3.93 requires that the 
pipelines post on their web sites specific information on how the 
pipelines determine gas quality, including the industry standard (or 
other methodology, as applicable) that the pipeline uses for the 
following: procedures used for obtaining natural gas samples, 
analytical test method(s), and calculation method(s), in conjunction 
with any physical constant(s) and underlying assumption(s). The 
revisions to the Nomination Related Standards and Flowing Gas Related 
Standards are designed to ensure that these standards reflect current 
market practices.\10\
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    \8\ In its Version 1.8 Standards, the WEQ made the following 
changes to its Version 1.7 standards:
    It revised Principles 1.1.9, 4.1.2, 4.1.6, and 4.1.7, 
Definitions 2.2.4, 4.2.1, 4.2.11, 4.2.12, 4.2.13, and 4.2.20, 
Standards 1.3.54, 1.3.60, 1.3.61, 1.3.63, 2.3.21, 2.3.35, 2.3.51, 
4.3.1, 4.3.2, 4.3.5, 4.3.16, 4.3.18, 4.3.22, 4.3.23, and 4.3.25, and 
Datasets 1.4.1 through 1.4.7, 2.4.1 through 2.4.4, 2.4.7, 2.4.8, 
3.4.1, 5.4.1 through 5.4.3, 5.4.5, 5.4.7 through 5.4.11, 5.4.13, 
5.4.14, 5.4.15, and 5.4.18 through 5.4.22.
    It added Principles 0.1.3, 4.1.40, and 10.1.1 through 10.1.9, 
Definitions 0.2.1, 0.2.2, 0.2.3, and 10.2.1 through 10.2.38, 
Standards 0.3.11 through 0.3.15, 2.3.65, 4.3.89 through 4.3.93, and 
10.3.1 through 10.3.25, and Data Sets 0.4.1, 2.4.17, 2.4.18, and 
5.4.23.
    It deleted Principles 4.1.9 and 4.1.25, and Standards 4.3.6, 
4.3.19, 4.3.21, and 4.3.63.
    It deleted the following standards from the EDM Related 
Standards and moved them to the Internet Electronic Transport 
Related Standards: Standards 4.3.7 through 4.3.15, 4.3.37, 4.3.64, 
4.3.70, 4.3.71, and 4.3.88.
    \9\ The Commission is continuing its past practice and is not 
proposing to incorporate by reference Standards 4.3.4 and 10.3.2., 
because they are inconsistent with the Commission's record retention 
requirement in 18 CFR 284.12(b)(3)(v).
    \10\ In addition, the Commission proposes to amend Sec.  
284.12(b) to make two minor corrections. First, we propose to 
correct the reference to the ``Gas Industry Standards Board'' to 
refer to the ``North American Energy Standards Board Wholesale Gas 
Quadrant.'' Second, we propose to correct the reference to the 
paragraph incorporating the NAESB standards by reference from 
paragraph (b)(1) to paragraph (a)(1).
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    5. The NAESB WGQ approved the Version 1.8 Standards under NAESB's 
consensus procedures.\11\ As the Commission found in Order No. 587, 
adoption of consensus standards is appropriate because the consensus 
process helps ensure the reasonableness of the standards by requiring 
that the standards draw support from a broad spectrum of industry 
participants representing all segments of the industry. Moreover, since 
the industry itself has to conduct business under these standards, the 
Commission's regulations should reflect those standards that have the 
widest possible support. In section 12(d) of the National Technology 
Transfer and Advancement Act of 1995 (NTT&AA), Congress affirmatively 
requires federal agencies to use technical standards developed by 
voluntary consensus standards organizations, like NAESB, as means to 
carry out policy objectives or activities.\12\
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    \11\ This process first requires a super-majority vote of 17 out 
of 25 members of the WGQ's Executive Committee with support from at 
least two members from each of the five industry segments--
Distributors, End Users, Pipelines, Producers, and Services 
(including marketers and computer service providers). For final 
approval, 67 percent of the WGQ's general membership voting must 
ratify the standards.
    \12\ Pub L. No. 104-113, section 12(d), 110 Stat. 775 (1996), 15 
U.S.C. 272 note (1997).
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    6. The Commission proposes that natural gas pipelines be required 
to implement the Version 1.8 Standards on the first day of the month 
three months after a final rule is issued. Based on past practice, we 
are proposing this implementation schedule in order to give the natural 
gas pipelines subject to these standards adequate time to prepare for 
these changes. In addition, the Commission proposes that pipelines be 
required to file tariff sheets to reflect the changed standards two 
months before the implementation date.
    7. In Order No. 712,\13\ the Commission recently revised various 
aspects of the Commission's capacity release standards, revisions which 
bear upon the current NAESB standards in Version 1.8. We appreciate 
NAESB's quick

[[Page 55462]]

action in already starting the process of revising its standards.\14\ 
Creating standardized procedures applicable to asset manager agreements 
(AMAs), releases related to state retail unbundling initiatives, and 
the other changes adopted in that rule will help to make conducting and 
reporting these processes more efficient. Order No. 712 requires that 
the pipelines add additional information to their Internet websites. As 
part of NAESB's reexamination of its posting standard (Standard 
5.4.20), NAESB should seek to make sure that its revisions result in a 
consistent system of reporting capacity release information relative to 
capacity recall conditions, AMAs, state unbundling releases, storage, 
and other categories of releases, so that the Commission and the public 
easily will be able to identify the releases in each category and any 
terms and conditions applicable to those releases.\15\
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    \13\ Promotion of a More Efficient Capacity Release Market, 
Order No. 712, 73 FR 37058 (June 30, 2008), FERC Stats. & Regs., 
Regulations Preambles ] 31,271 (June 19, 2008).
    \14\ See Minutes of July 1, 2008 Meeting of the WGQ Business 
Practice Subcommittee, http://naesb.org/pdf3/wgq_bps_712_070108fm.doc.
    \15\ The current standard, for example, does not separately 
require a specific posting of whether capacity is subject to recall, 
apparently leaving this information to be included in Special Terms 
and Miscellaneous Notes. Given the additional types of information 
that must now be posted, NAESB needs to consider whether including 
all this information in Special Terms and Miscellaneous Notes is 
still appropriate.
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III. Notice of Use of Voluntary Consensus Standards

    8. Office of Management and Budget Circular A-119 (section 11) 
(February 10, 1998) provides that federal agencies should publish a 
request for comment in a NOPR when the agency is seeking to issue or 
revise a regulation proposing to adopt a voluntary consensus standard 
or a government-unique standard. In this NOPR, the Commission is 
proposing to incorporate by reference voluntary consensus standards 
developed by the WGQ.

IV. Information Collection Statement

    9. The following collections of information contained in this 
proposed rule have been submitted to the Office of Management and 
Budget (OMB) for review under section 3507(d) of the Paperwork 
Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits 
comments on the Commission's need for this information, whether the 
information will have practical utility, the accuracy of the provided 
burden 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. The ``public protection'' provisions of the 
Paperwork Reduction Act of 1995 require each agency to display a 
currently valid control number and inform respondents that a response 
is not required unless the information collection displays a valid OMB 
control number on each information collection or provides a 
justification as to why the information collection number cannot be 
displayed. In the case of information collections published in 
regulations, the control number is to be published in the Federal 
Register. The following burden estimate includes the costs to implement 
the Version 1.8 Standards, which incorporate the most recent and up-to-
date standards governing business practices of and electronic 
communication with interstate natural gas pipelines. The burden 
estimates are primarily related to start-up to implement the latest 
version of the standards and will not result in on-going costs.

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                                                                     Number of
                 Data collection                     Number of     responses per     Hours per     Total number
                                                    respondents     respondent       response        of hours
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FERC-545 \16\...................................             168               1              10           1,680
FERC-549C \17\..................................             126               1           1,181         148,806
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Total Annual Hours for Collection (Reporting and Recordkeeping (if
 appropriate)) = 150,486
 

    10. Information Collection Costs: The Commission seeks comments on 
the costs to comply with these requirements. It has projected the 
average annualized cost for all respondents to be the following:
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    \16\ Data collection FERC-545 covers rate change filings made by 
natural gas pipelines, including tariff changes. (OMB Control No. 
1902-0154).
    \17\ Data collection FERC-549C covers Standards for Business 
Practices of Interstate Natural Gas Pipelines. (OMB Control No. 
1902-0174).

------------------------------------------------------------------------
                                          FERC-545          FERC-549C
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Annualized Capital/Startup Costs....          $211,680       $12,743,010
Annualized Costs (Operations &                       0                 0
 Maintenance).......................
                                     -----------------------------------
    Total Annualized Costs..........           211,680        12,743,010
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Total Cost for all Respondents = 12,954,690
 

    11. OMB regulations \18\ require OMB to approve certain information 
collection requirements imposed by agency rule. The Commission is 
submitting notification of this proposed rule to OMB.
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    \18\ 5 CFR 1320.11.
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    Title: FERC-545, Gas Pipeline Rates: Rates Change (Non-Formal); 
FERC-549C, Standards for Business Practices of Interstate Natural Gas 
Pipelines.
    Action: Proposed collections.
    OMB Control Nos.: 1902-0154, 1902-0174.
    Respondents: Business or other for profit (Interstate natural gas 
pipelines (Not applicable to small business)).
    Frequency of Responses: One-time implementation (business 
procedures, capital/start-up).
    Necessity of Information: This proposed rule, if implemented, would 
upgrade the Commission's current business practice and communication 
standards to the latest edition approved by the NAESB WGQ (i.e., the 
Version 1.8 Standards). The implementation of these standards is 
necessary to increase the efficiency of the pipeline grid, make 
pipelines' electronic communications

[[Page 55463]]

more secure, and is consistent with the mandate that agencies provide 
for electronic disclosure of information.\19\ Requiring such 
information ensures both a common means of communication and common 
business practices that provide participants engaged in transactions 
with interstate pipelines with timely information and uniform business 
procedures across multiple pipelines.
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    \19\ 44 U.S.C. 3504 note, Pub. L. 105-277, 1701, 112 Stat. 2681-
749 (1998).
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    12. The information collection requirements of this proposed rule 
will be reported directly to the industry users. The implementation of 
these data requirements will help the Commission carry out its 
responsibilities under the Natural Gas Act to monitor activities of the 
natural gas industry to ensure its competitiveness and to assure the 
improved efficiency of the industry's operations. The Commission's 
Office of Energy Market Regulation will use the data in rate 
proceedings to review rate and tariff changes by natural gas companies 
for the transportation of gas, for general industry oversight, and to 
supplement the documentation used during the Commission's audit 
process.
    13. Internal Review: The Commission has reviewed the requirements 
pertaining to business practices and electronic communication with 
interstate natural gas pipelines and made a determination that the 
proposed revisions are necessary to establish a more efficient and 
integrated pipeline grid. These requirements conform to the 
Commission's plan for efficient information collection, communication, 
and management within the natural gas industry. The Commission has 
assured itself, by means of its internal review, that there is 
specific, objective support for the burden estimates associated with 
the information requirements.
    14. Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, Attention: 
Michael Miller, Office of the Executive Director, Phone: (202) 502-
8415, fax: (202) 273-0873, E-mail: [email protected]].
    15. Comments concerning the collection of information(s) and the 
associated burden estimate(s), should be sent to the contact listed 
above and to the Office of Management and Budget, Office of Information 
and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer 
for the Federal Energy Regulatory Commission, phone: (202) 395-7345, 
fax: (202) 395-7285].

V. Environmental Analysis

    16. 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.\20\ The 
Commission has categorically excluded certain actions from these 
requirements as not having a significant effect on the human 
environment.\21\ The actions proposed here fall within categorical 
exclusions in the Commission's regulations for rules that are 
clarifying, corrective, or procedural, for information gathering, 
analysis, and dissemination, and for sales, exchange, and 
transportation of natural gas that requires no construction of 
facilities.\22\ Therefore, an environmental assessment is unnecessary 
and has not been prepared as part of this NOPR.
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    \20\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act of 1969, 52 FR 47,897 (Dec. 17, 1987), FERC 
Stats. & Regs., Regulations Preambles 1986-1990 ] 30,783 (Dec. 10, 
1987).
    \21\ 18 CFR 380.4.
    \22\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
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VI. Regulatory Flexibility Act Certification

    17. The Regulatory Flexibility Act of 1980 (RFA) \23\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
In drafting a rule an agency is required to: (1) Assess the effect that 
its regulation will have on small entities; (2) analyze effective 
alternatives that may minimize a regulation's impact; and (3) make the 
analysis available for public comment.\24\ In its NOPR, the agency must 
either include an initial regulatory flexibility analysis (Initial RFA) 
\25\ or certify that the proposed rule will not have a ``significant 
impact on a substantial number of small entities.'' \26\
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    \23\ 5 U.S.C. 601-612.
    \24\ 5 U.S.C. 601-604.
    \25\ 5 U.S.C. 603(a).
    \26\ 5 U.S.C. 605(b).
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    18. The regulations proposed here impose requirements only on 
interstate pipelines, the majority of which are not small businesses. 
In this regard, we note that, under the industry standards used for the 
RFA, a natural gas pipeline company qualifies as a ``small entity'' if 
it had annual receipts of $6.5 million or less.\27\ Most companies 
regulated by the Commission do not fall within the RFA's definition of 
a small entity. Approximately 168 entities would be potential 
respondents subject to data collection FERC-545 reporting requirements; 
of those, about 126 natural gas companies (including storage) would 
also be subject to data collection FERC 549-C reporting requirements. 
Nearly all of these entities are large entities. For the year 2007 (the 
most recent year for which information is available), only four 
companies not affiliated with larger companies had annual revenues of 
less than $6.5 million, which is about three percent of the total 
universe of potential respondents. Moreover, these requirements are 
designed to benefit all customers, including small businesses. As noted 
above, adoption of consensus standards helps ensure the reasonable of 
the standards by requiring that the standards draw support from a broad 
spectrum of industry participants representing all segments of the 
industry. Because of that representation and the fact that industry 
conducts business under these standards, the Commission's regulations 
should reflect those standards that have the widest possible support.
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    \27\ 5 U.S.C. 601(3), citing section 3 of the Small Business 
Act, 15 U.S.C. 623. Section 3 of the SBA defines a ``small business 
concern'' as a business which is independently owned and operated 
and which is not dominant in its field of operation. The Small 
Business Size Standards component of the North American Industry 
Classification System (NAICS) defines a small natural gas pipeline 
company as one that transports natural gas and whose annual receipts 
(total income plus cost of goods sold) did not exceed $6.5 million 
for the previous year.
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    19. Accordingly, pursuant to Sec.  605(b) of the RFA, the 
Commission hereby certifies that the regulations proposed herein will 
not have a significant adverse impact on a substantial number of small 
entities.

VII. Comment Procedures

    20. The Commission invites interested persons to submit written 
comments on the matters and issues proposed for incorporation by 
reference in this NOPR, including any related matters or alternative 
proposals that commenters may wish to discuss. Comments are due 
November 10, 2008. Comments must refer to Docket No. RM96-1-029, and 
must include the commenter's name, the organization they represent, if 
applicable, and their address. Comments may be filed either in 
electronic or paper format.
    21. 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 commenters may attach 
additional files with supporting information in certain other file 
formats. Commenters filing electronically do not need to make

[[Page 55464]]

a paper filing. Commenters that are not able to file comments 
electronically must send an original and 14 copies of their comments 
to: Federal Energy Regulatory Commission, Secretary of the Commission, 
888 First Street, NE., Washington, DC 20426. For paper filings, the 
original and 14 copies of such comments should be submitted to the 
Secretary of the Commission, Federal Energy Regulatory Commission, 888 
First Street, NE., Washington, DC 20426.
    22. 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. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.

VIII. Document Availability

    23. 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.
    24. From FERC's Home Page on the Internet, this information is 
available in eLibrary. The full text of this document is available in 
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.
    25. User assistance is available for eLibrary and the FERC's Web 
site during the Commission's normal business hours. For assistance, 
contact FERC Online Support by e-mail at [email protected], or 
by telephone at 202-502-6652 (toll-free at (866) 208-3676) or for TTY, 
contact (202) 502-8659.

List of Subjects in 18 CFR Part 284

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

    By direction of the Commission.
Kimberly D. Bose,
Secretary.

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

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

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

    Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352; 
43 U.S.C. 1331-1356.

    2. Section 284.12 is amended by revising paragraphs (a)(1)(i) 
through (vi), adding paragraph (a)(1)(vii), and revising the 
introductory text of paragraph (b) to read as follows:


Sec.  284.12  Standards for pipeline business operations and 
communications.

    (a) * * *
    (1) * * *
    (i) Additional Standards (General Standards, Creditworthiness 
Standards, and Gas/Electric Operational Communications Standards) 
(Version 1.8, September 30, 2006);
    (ii) Nominations Related Standards (Version 1.8, September 30, 
2006);
    (iii) Flowing Gas Related Standards (Version 1.8, September 30, 
2006);
    (iv) Invoicing Related Standards (Version 1.8, September 30, 2006);
    (v) Quadrant Electronic Delivery Mechanism Related Standards 
(Version 1.8, September 30, 2006) with the exception of Standard 4.3.4;
    (vi) Capacity Release Related Standards (Version 1.8, September 30, 
2006 (with minor corrections applied December 13, 2006); and
    (vii) Internet Electronic Transport Related Standards (Version 1.8, 
September 30, 2006) with the exception of Standard 10.3.2.
* * * * *
    (b) Business practices and electronic communication requirements. 
An interstate pipeline that transports gas under subparts B or G of 
this part must comply with the following requirements. The regulations 
in this paragraph adopt the abbreviations and definitions contained in 
the North American Energy Standards Board Wholesale Gas Quadrant 
standards incorporated by reference in paragraph (a)(1) of this 
section.
* * * * *
[FR Doc. E8-22206 Filed 9-24-08; 8:45 am]
BILLING CODE 6717-01-P