[Federal Register Volume 74, Number 40 (Tuesday, March 3, 2009)]
[Rules and Regulations]
[Pages 9162-9166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-4295]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 284

[Docket No. RM96-1-029; Order No. 587-T]


Standards for Business Practices for Interstate Natural Gas 
Pipelines

Issued February 24, 2009.

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final Rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
amending its regulations that establish standards for interstate 
natural gas pipeline business practices and electronic communications 
to incorporate by reference into its regulations the most recent 
version of the standards, Version 1.8, adopted by the Wholesale Gas 
Quadrant (WGQ) of the North American Energy Standards Board (NAESB) and 
to make other minor corrections. This rule upgrades the Commission's 
current business practice and communication standards to reflect the 
latest version approved by the NAESB WGQ (i.e., the Version 1.8 
Standards), and is necessary to increase the efficiency of the pipeline 
grid, make pipelines' electronic communications more secure, and is 
consistent with the mandate that agencies provide for electronic 
disclosure of information.

DATES: This rule will become effective April 2, 2009. Natural gas 
pipelines are required to implement these standards on the first day of 
the month three months after the effective date of this rule and file 
tariff sheets to reflect the changed standards on the first day of the 
month one month after the effective date of this rule. The Director of 
the Federal Register has approved the incorporation by reference of the 
standards addressed in this Final Rule effective April 2, 2009.

FOR FURTHER INFORMATION CONTACT: 

William Lohrman (technical issues), Office of Energy Market Regulation, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8070.
Kay Morice (technical issues), Office of Energy Market Regulation, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-6507.
Caroline Daly (technical issues), Office of Energy Market Regulation, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8931.
Gary D. Cohen (legal issues), Office of the General Counsel, Federal 
Energy Regulatory Commission, 888 First Street, NE., Washington, DC 
20426, (202) 502-8321.

SUPPLEMENTARY INFORMATION: 

Before Commissioners: Jon Wellinghoff, Acting Chairman; Suedeen G. 
Kelly, Marc Spitzer, and Philip D. Moeller

    1. The Federal Energy Regulatory Commission (Commission) is 
amending Sec.  284.12 of its regulations (which establishes standards 
for natural gas pipeline business practices and electronic 
communications) \1\ to incorporate by reference the most recent version 
(Version 1.8) of the standards promulgated by the Wholesale Gas 
Quadrant (WGQ) of the North American Energy Standards Board (NAESB). In 
addition, the Commission is amending 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), 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).
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    \2\ Standards for Business Practices of Interstate Natural Gas 
Pipelines, Order No. 587, 61 FR 39053 (July 26, 1996), FERC Stats. & 
Regs., ] 31,038 (1996).
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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.\3\ NAESB reported 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,\4\ 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. 
NAESB also reported that the Version 1.8 standards included several 
standards already adopted by the Commission, including gas-electric 
coordination standards to support communications between pipelines and 
gas-fired generators,\5\ 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.\6\
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    \3\ 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.
    \4\ In this Final Rule, the Commission is requiring interstate 
natural gas pipelines to comply with these standards. We are not 
making these standards mandatory for retail transactions.
    \5\ Standards for Business Practices for Interstate Natural Gas 
Pipelines; Standards for Business Practices for Public Utilities, 
Order No. 698, 72 FR 38757 (July 16, 2007), FERC Stats, & Regs ] 
31,251 (2007); order granting clarification and denying reh'g, Order 
No. 698-A, 121 FERC ] 61,264 (2007).
    \6\ Standards of Conduct for Transmission Providers, Order No. 
2004, 68 FR 69134 (Dec. 11, 2003), FERC Stats. & Regs., ] 31,155 
(2003); order on reh'g, Order No. 2004-B, 69 FR 23562 (Apr. 29, 
2004), FERC Stats. & Regs., ] 31,161 (2004); order on reh'g, Order 
No. 2004-B, 69 FR 48371 (Aug. 10, 2004), FERC Stats. & Regs., ] 
31,166 (2004); order on reh'g, Order No. 2004-C, 70 FR 284 (Jan. 4, 
2005), FERC Stats. & Regs., ] 31,172 (2004); order on clarification 
and reh'g, Order No. 2004-D, 110 FERC ] 61,320 (2005).
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    4. On September 18, 2008, the Commission issued a Notice of 
Proposed Rulemaking (NOPR) \7\ that proposed to incorporate by 
reference the WGQ's Version 1.8 Standards and to make minor corrections 
to Sec.  284.12(b) of the Commission's regulations. The sole comment 
was filed by American Gas Association (AGA), which supported the 
adoption of Version 1.8 of the standards, but requested modifications 
to the Commission's relationship with NAESB.
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    \7\ Standards for Business Practices for Interstate Natural Gas 
Pipelines, Notice of Proposed Rulemaking, 73 FR 55460 (Sep. 18, 
2008), FERC Stats. & Regs. ] 32,636 (2008).
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II. Discussion

    5. The Commission's NOPR proposal to amend part 284 of its 
regulations to incorporate by reference Version 1.8 of the NAESB WGQ's 
consensus standards,\8\ with the two exceptions

[[Page 9163]]

noted in the NOPR,\9\ was not opposed by any commenter. 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 WGQ 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.
    It renamed the EDM Related Standards, which are now entitled the 
Quadrant Electronic Delivery Mechanism Related Standards.
    \9\ As proposed in the NOPR, the Commission is continuing its 
past practice and is not incorporating 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 is amending Sec.  284.12(b) to 
make two minor corrections. First, we correct the reference to the 
``Gas Industry Standards Board'' to refer to the ``North American 
Energy Standards Board Wholesale Gas Quadrant.'' Second, we correct 
the reference to the paragraph incorporating the NAESB standards by 
reference from paragraph (b)(1) to paragraph (a)(1).
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    6. 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 determined by the agencies 
unless use of such standards would be inconsistent with applicable law 
or otherwise impractical.\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\ Public Law 104-113, Sec.  12(d), 110 Stat. 775 (1996), 15 
U.S.C. 272 note (1997).
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    7. One of the Version 1.8 standards, WGQ Standard 4.3.23, provides 
guidelines for how pipelines post transmission provider Standards of 
Conduct-related information on their Web sites. However, the Commission 
issued revised Standards of Conduct requirements in Order No. 717 \13\ 
subsequent to the Version 1.8 standards adopted by NAESB. As a result, 
some of the data templates in the NAESB WGQ 4.3.23 standard are 
unnecessary. We will incorporate Standard 4.3.23, because it contains 
requirements for posting that are applicable under Order No. 717. 
However, pipelines will not be required to continue to post affiliate 
information that is no longer required to be maintained under the 
Commission's regulations as amended by Order No. 717.
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    \13\ Standards of Conduct for Transmission Providers, Order No. 
717, 73 FR 63796 (Oct. 27, 2008), FERC Stats. & Regs ] 31,280 
(2008), reh'g pending.
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    8. In addition to comments in support of the proposed rule, AGA 
requested that the Commission take a more active role in shepherding 
the development of wholesale gas standards. In brief, AGA is concerned 
that the standards process takes too long to complete.
    9. We appreciate AGA's desire that standard development proceed 
quickly. We note that NAESB has taken a continuing interest in 
improving its standards-setting process, and has, for example, recently 
adopted policies to allow standards setting decisions to be made more 
quickly for important efforts.\14\
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    \14\ NAESB Policy on Efficient Standards Development, adopted by 
NAESB Board of Directors, Sep. 25, 2008, http://www.naesb.org/pdf3/bd092508a2.doc.
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III. Implementation Dates and Procedures

    10. Based on past practice, we are adopting an implementation 
schedule designed to provide natural gas pipelines adequate time to 
prepare for these changes. Pipelines are required to implement the 
standards we are incorporating by reference in this Final Rule by the 
first day of the month three months after the effective date of this 
Final Rule. In addition, pipelines are required to file tariff sheets 
to reflect the changed standards on the first day of the month one 
month after the effective date of this Final Rule to be effective as of 
the implementation date. Pipelines incorporating the Version 1.8 
standards into their tariffs must include the standard number and 
Version 1.8.

IV. Notice of Use of Voluntary Consensus Standards

    11. In section 12(d) of NTT&AA, Congress affirmatively requires 
federal agencies to use technical standards developed by voluntary 
consensus standards organizations, like NAESB, as the means to carry 
out policy objectives or activities determined by the agencies unless 
use of such standards would be inconsistent with applicable law or 
otherwise impractical.\15\ NAESB approved the standards under its 
consensus procedures. Office of Management and Budget Circular A-119 
(Sec.  11) (February 10, 1998) provides that federal agencies should 
publish a request for comment in a NOPR when the agency is seeking to 
issue or revise a regulation proposing to adopt a voluntary consensus 
standard or a government-unique standard. On September 18, 2008, the 
Commission issued a NOPR that proposed to incorporate by reference 
NAESB's Version 1.8 Standards. The Commission took comments on the NOPR 
into account in fashioning this Final Rule.
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    \15\ Public Law 104-113, Sec.  12(d), 110 Stat. 775 (1996), 15 
U.S.C. 272 note (1997).
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V. Information Collection Statement

    12. The Office of Management and Budget's (OMB) regulations in 5 
CFR 1320.11 require that it approve certain reporting and recordkeeping 
requirements (collections of information) imposed by an agency. Upon 
approval of a collection of

[[Page 9164]]

information, OMB will assign an OMB control number and an expiration 
date. Respondents subject to the filing requirements of this Final Rule 
will not be penalized for failing to respond to these collections of 
information unless the collections of information display a valid OMB 
control number.
    13. This Final Rule upgrades 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).
    14. The implementation of these standards is necessary to increase 
the efficiency of the pipeline grid, make pipelines' electronic 
communications more secure, and is consistent with the mandate that 
agencies provide for electronic disclosure of information. Requiring 
such information ensures a common means of communication and ensures 
common business practices that provide participants engaged in 
transactions with interstate pipelines with timely information and 
uniform business procedures across multiple pipelines.
    15. The following burden estimates include the costs to implement 
the WGQ's revised business practice standards and communication 
protocols for interstate natural gas pipelines. The implementation of 
these data requirements will help the Commission carry out its 
responsibilities under the Natural Gas Act of promoting the efficiency 
and reliability of the natural gas industry's operations. In addition, 
the Commission's Office of Energy Market Regulation will use the data 
for general industry oversight.
    16. The Commission sought comments on the Commission's estimate 
provided in the NOPR of the burden associated with adoption of the NOPR 
proposals. In response to the NOPR, no comments were filed that 
addressed the reporting burden imposed by these requirements. Therefore 
the Commission will use these same estimates in this Final Rule. The 
substantive issue raised by the sole commenter on the NOPR is addressed 
in this preamble.

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                                               No. of       No. of responses      Hours per       Total No. of
             Data collection                 respondents     per respondent       response            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.
    17. Information Collection Costs: The Commission sought 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 & Maintenance)...            0            0
                                               -------------------------
    Total Annualized Costs....................      211,680   12,743,010
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    Total Cost for all Respondents = $12,954,690.
    18. OMB regulations \18\ require OMB to approve certain information 
collection requirements imposed by agency rule. The Commission is 
submitting notification of this Final 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: Information 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: The Commission's regulations adopted in 
this rule are necessary to increase the efficiency of the pipeline 
grid, make pipelines' electronic communications 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, Public Law 105-277, 1701, 112 Stat. 
2681-749 (1998).
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    19. The information collection requirements of this Final 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.
    20. Internal Review: The Commission has reviewed the requirements 
pertaining to business practices and electronic communication with 
interstate natural gas pipelines and has made a determination that 
these 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.
    21. Interested persons may obtain information on the reporting 
requirements by contacting the following:

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

[[Page 9165]]

20426; [Attention: Michael Miller, Office of the Executive Director, 
Phone: (202) 502-8415, fax: (202) 273-0873, e-mail: 
[email protected];] or by contacting:
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].

VI. Environmental Analysis

    22. 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 adopted 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 and electric power that requires no 
construction of facilities. Therefore, an environmental assessment is 
unnecessary and has not been prepared in this Final Rule.
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    \20\ Regulations Implementing the National Environmental Policy 
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. 
] 30,783 (1987).
    \21\ 18 CFR 380.4
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VII. Regulatory Flexibility Act

    23. The Regulatory Flexibility Act of 1980 (RFA) \22\ 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.\23\
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    \22\ 5 U.S.C. 601-612.
    \23\ 5 U.S.C. 601-604.
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    24. The regulations we are adopting in this Final Rule 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.\24\ 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-549C 
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 reasonableness 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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    \24\ 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 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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    25. Accordingly, pursuant to section 605(b) of the RFA, the 
Commission hereby certifies that the regulations adopted herein will 
not have a significant adverse impact on a substantial number of small 
entities.

VIII. Document Availability

    26. 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.
    27. From FERC's Home Page on the Internet, this information is 
available on eLibrary. The full text of this document is available on 
eLibrary 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. User assistance is available for eLibrary and the FERC's 
Web site during normal business hours from FERC Online Support at (202) 
502-6652 (toll-free at 1-866-208-3676) or e-mail at 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. E-Mail the Public Reference Room at 
[email protected].

IX. Effective Date and Congressional Notification

    28. These regulations are effective April 2, 2009. The Commission 
has determined, with the concurrence of the Administrator of the Office 
of Information and Regulatory Affairs of OMB, that this rule is not a 
``major rule'' as defined in section 351 of the Small Business 
Regulatory Enforcement Fairness Act of 1996.

List of Subjects in 18 CFR Part 284

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

    By the Commission. Commissioner Kelliher is not participating. 
Commissioner Moeller concurring with a separate statement attached.
Kimberly D. Bose,
Secretary.

0
In consideration of the foregoing, the Commission amends Part 284 of 
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

0
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.


0
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);

[[Page 9166]]

    (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.
* * * * *

    Note: The following text will not appear in the Code of Federal 
Regulations.

United States of America

Federal Energy Regulatory Commission

Docket No. RM96-1-029.

Standards for Business Practices for Interstate Natural Gas Pipelines

(Issued February 24, 2009.)

MOELLER, Commissioner, concurring:

    The American Gas Association (AGA), in its comments, contends 
that the NAESB process takes too long to complete. Because of that, 
AGA urges the Commission to review its procedures and relationship 
with NAESB with the goal of streamlining the process by which 
business practices standards are developed, approved and 
incorporated into the Commission's regulations. In particular, AGA 
identifies delays that have occurred in NAESB's technical 
implementation as well as in development and publication of 
standards.
    I recognize that some of the delay may be attributable to the 
Commission's own processes and priorities; however, AGA has 
identified areas, such as technical development, in which NAESB can 
improve its procedures. I appreciate the Wholesale Gas Quadrant's 
current efforts as referenced in the final rule (as well as the 
dedication of NAESB staff) to improve its procedures, and I urge 
NAESB and its volunteers to continue its work to find and identify 
areas in which its processes can become more efficient and timely.

Philip D. Moeller,
Commissioner.

 [FR Doc. E9-4295 Filed 3-2-09; 8:45 am]
BILLING CODE 6717-01-P