[Federal Register Volume 84, Number 132 (Wednesday, July 10, 2019)]
[Notices]
[Pages 32913-32915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14674]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC19-20-000]


Commission Information Collection Activities (FERC Form Nos. 6 
and 6-Q); Comment Request; Extension

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of information collections and request for comments.

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SUMMARY: In compliance with the requirements of the Paperwork Reduction 
Act of 1995 (PRA), the Federal Energy Regulatory Commission (Commission 
or FERC) is soliciting public comment on the currently approved 
information collections FERC Form Nos. 6 (Annual Report of Oil Pipeline 
Companies) and 6-Q (Quarterly Report of Oil Pipeline Companies) and 
submitting the information collections to the Office of Management and 
Budget (OMB) for review. Any interested person may file comments 
directly with OMB and should address a copy of those comments to the 
Commission as explained below. On April 15, 2019, the Commission 
published a Notice in the Federal Register in Docket No. IC19-20-000 
requesting public comments. The Commission received two public comments 
and will indicate that in its submittals to OMB.

DATES: Comments on the collections of information are due August 9, 
2019.

ADDRESSES: Comments filed with OMB, identified by OMB Control Nos.: 
1902-0022 (FERC Form No. 6) and 1902-0206 (FERC Form No. 6-Q), should 
be sent via email to the Office of Information and Regulatory Affairs: 
[email protected]. Attention: Federal Energy Regulatory 
Commission Desk Officer.
    A copy of the comments should also be sent to the Commission, in 
Docket No. IC19-20-000, by either of the following methods:
     eFiling at Commission's Website: http://www.ferc.gov/docs-filing/efiling.asp.
     Mail/Hand Delivery/Courier: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street NE, 
Washington, DC 20426.
    Instructions: All submissions must be formatted and filed in 
accordance with submission guidelines at: http://www.ferc.gov/help/submission-guide.asp. For user assistance, contact FERC Online Support 
by email at [email protected], or by phone at: (866) 208-3676 
(toll-free), or (202) 502-8659 for TTY.
    Docket: Users interested in receiving automatic notification of 
activity in this docket or in viewing/downloading comments and 
issuances in this docket may do so at http://www.ferc.gov/docs-filing/docs-filing.asp.

FOR FURTHER INFORMATION CONTACT: Ellen Brown by email at 
[email protected], telephone at (202) 502-8663, and fax at (202) 
273-0873.

SUPPLEMENTARY INFORMATION:
    Titles: FERC Form Nos. 6 (Annual Report of Oil Pipeline Companies) 
and 6-Q (Quarterly Report of Oil Pipeline Companies).
    OMB Control Nos.: 1902-0022 (FERC Form No. 6) and 1902-0206 (FERC 
Form No.6-Q).
    Type of Respondent: Oil pipeline.
    Type of Request: Three-year extension of FERC Form Nos. 6 and 6-Q 
information collections with no changes to the current reporting and 
recordkeeping requirements.\1\
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    \1\ FERC Form Nos. 6 and 6-Q are part of the ``Forms Refresh'' 
effort, which is a separate activity and not addressed here. See 
Revisions to the Filing Process for Commission Forms, 166 FERC ] 
61,027 (2019) (started in Docket No. AD15-11 and ongoing in Docket 
No. RM19-12). (OMB issued its decisions on the proposed changes in 
the Forms Refresh Notice of Proposed Rulemaking in Docket No. RM19-
12 on March 14, 2019.) In addition, this submittal does not reflect 
Docket No. RM15-19 (Petition for a Rulemaking of the Liquids 
Shippers Group, et al., (2015)) and Docket No. RM17-1 (Revisions to 
Indexing Policies and Page 700 of FERC Form No. 6 (2016)).
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    Abstract: Under the Interstate Commerce Act (ICA),\2\ the 
Commission is authorized and empowered to make investigations and to 
collect and record data to the extent the Commission may consider to be 
necessary or useful for the purpose of carrying out the provisions of 
the ICA. The Commission must ensure just and reasonable rates for 
transportation of crude oil and petroleum products by pipelines in 
interstate commerce.
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    \2\ 49 U.S.C. part 1, Section 20, 54 Stat. 916.
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FERC Form No. 6, Annual Report of Oil Pipeline Companies

    In 1977, the Department of Energy Organization Act transferred to 
the Commission from the Interstate Commerce Commission (ICC) the 
responsibility to regulate oil pipeline companies. In accordance with 
the transfer of authority, the Commission was delegated the 
responsibility to require oil pipelines to file annual reports of 
information necessary for the Commission to exercise its statutory 
responsibilities.\3\ The transfer included the ICC Form P, the 
predecessor to FERC Form No. 6.\4\
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    \3\ Section 402(b) of the Department of Energy Organization Act 
(DOE Act), 42 U.S.C. 7172 provides that; ``[t]here are hereby 
transferred to, and vested in, the Commission all functions and 
authority of the Interstate Commerce Commission or any officer or 
component of such Commission where the regulatory function 
establishes rates or charges for the transportation of oil by 
pipeline or established the valuation of any such pipeline.''
    \4\ The ICC developed the Form P to collect information on an 
annual basis to enable it to carry out its regulation of oil 
pipeline companies under the Interstate Commerce Act. A 
comprehensive review of the reporting requirements for oil pipeline 
companies was performed on September 21, 1982, when the Commission 
issued Order No. 260 revising the former ICC Form P, ``Annual Report 
of Carriers by Pipeline'' and redesignating it as FERC Form No. 6, 
``Annual Report of Oil Pipeline Companies''.
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    To reduce burden on industry, FERC Form No. 6 has three tiers of 
reporting requirements:
    1. Each oil pipeline carrier whose annual jurisdictional operating 
revenues has been $500,000 or more for each of the three previous 
calendar years must file FERC Form No. 6 (18 CFR 357.2 (a)). Oil 
pipeline companies subject to the provisions of section 20 of the ICA 
must submit FERC Form No. 6-Q. 18 CFR 357.4(b)). Newly established 
entities must use projected data to determine whether FERC Form No. 6 
must be filed.
    2. Oil pipeline carriers exempt from filing FERC Form No. 6 whose 
annual

[[Page 32914]]

jurisdictional operating revenues have been more than $350,000 but less 
than $500,000 for each of the three previous calendar years must 
prepare and file page 301, ``Operating Revenue Accounts (Account 600), 
and page 700, ``Annual Cost of Service Based Analysis Schedule,'' of 
FERC Form No. 6. When submitting pages 301 and 700, each exempt oil 
pipeline carrier must include page 1 of FERC Form No. 6, the 
Identification and Attestation schedules (18 CFR 357.2(a)(2)).
    3. Oil pipeline carriers exempt from filing FERC Form No. 6 and 
pages 301 and whose annual jurisdictional operating revenues were 
$350,000 or less for each of the three previous calendar years must 
prepare and file page 700, ``Annual Cost of Service Based Analysis 
Schedule,'' of FERC Form No. 6. When submitting page 700, each exempt 
oil pipeline carrier must include page 1 of FERC Form No. 6, the 
Identification and Attestation schedule (18 CFR 357.2(a)(3)).
    The Commission uses the data in FERC Form Nos. 6 and 6-Q to perform 
audits and reviews on the financial condition of oil pipelines; assess 
energy markets; conduct oil pipeline rate proceedings and economic 
analysis; conduct research for use in administrative litigation; and 
administer the requirements of the ICA. Data from FERC Form No. 6 
facilitates the calculation of the actual rate of return on equity for 
oil pipelines. The actual rate of return on equity is particularly 
useful information when evaluating a pipeline's rates.
    The Commission also uses data on Page 301 of FERC Form No. 6 to 
compute annual charges which are then assessed against oil pipeline 
companies to recover the Commission's annual costs as mandated by Order 
No. 472. The annual charges are required by Section 3401 of the Omnibus 
Budget Reconciliation Act of 1986.
    Furthermore, the majority of state regulatory commissions use FERC 
Form Nos. 6 and 6-Q and the Commission's Uniform System of Accounts 
(USofA) to satisfy their reporting requirements for those companies 
under their jurisdiction. In addition, the public uses the data in FERC 
Form Nos. 6 and 6-Q to assist in monitoring rates, the financial 
condition of the oil pipeline industry, and in assessing energy 
markets.

FERC Form No. 6-Q, Quarterly Report of Oil Pipeline Companies

    Oil pipeline companies subject to the provisions of section 20 of 
the ICA must submit FERC Form No. 6-Q. 18 CFR 357.4(b)). The Commission 
uses the information collected in FERC Form No. 6-Q to carry out its 
responsibilities in implementing the statutory provisions of the ICA to 
include the authority to prescribe rules and regulations concerning 
accounts, records, and memoranda, as necessary or appropriate. 
Financial accounting and reporting provides necessary information 
concerning a company's past performance and its future prospects. 
Without reliable financial statements prepared in accordance with the 
Commission's USofA and related regulations, it would be difficult for 
the Commission to accurately determine the costs that relate to a 
particular time period, service, or line of business.
    The Commission uses data from FERC Form No. 6-Q to assist in: (1) 
Implementation of its financial audits and programs; (2) continuous 
review of the financial condition of regulated companies; (3) 
assessment of energy markets; (4) rate proceedings and economic 
analyses; and (5) research for use in litigation.
    Financial information reported on the quarterly FERC Form No. 6-Q 
provides the Commission, as well as customers, investors and others, an 
important tool to help identify emerging trends and issues affecting 
jurisdictional entities within the energy industry. It also provides 
timely disclosures of the impacts that new accounting standards, or 
changes in existing standards, have on jurisdictional entities, as well 
as the economic effects of significant transactions, events, and 
circumstances. The reporting of this information by jurisdictional 
entities assists the Commission in its analysis of profitability, 
efficiency, risk, and in its overall monitoring.
    Comments: Two commenters, the Bureau of Economic Analysis (BEA) \5\ 
and the Liquids Shippers Group (LSG) \6\ filed comments in response to 
the 60-day notice. There were no comments filed in opposition to the 
collection.
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    \5\ BEA's comments are posted in FERC eLibrary at https://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=15227493 and 
https://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=15227494.
    \6\ The LSG's comments are posted in FERC eLibrary at https://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=15274579.
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    BEA's Comments: BEA's comments broadly support the collection and 
outline the manner in which BEA utilizes FERC Form Nos. 6 and 6-Q data. 
BEA states that the forms are used to estimate the U.S. Census Bureau's 
construction value put-in-place (VPIP) for oil pipeline utilities, 
which, according to BEA, serves as a major source data input to the 
national income and product account (NIPA) for structures investment 
estimates. BEA notes that the NIPA estimates for electric, gas, and 
pipeline structures rely on the VPIP source data and that estimates of 
utility industry structures investment for the BEA fixed assets 
accounts relies on the VIP-based NIPA structure estimates.
    BEA further notes that FERC Form No. 6 data is used indirectly to 
derive annual pipeline transportation output in the industry accounts 
program. BEA explains that data obtained by the industry account from 
the Association of Oil Pipelines ``Shifts in Petroleum Transportation'' 
report is based, in part, on this survey. BEA concludes that FERC Form 
No. 6 information is considered an indispensable data source to the 
NIPA estimates and industry accounts estimates because it is used 
indirectly through the VPIP program and the trade association.
    Finally, BEA requests that the Commission keep BEA informed of any 
modifications to FERC Form Nos. 6 and 6-Q, and notes, in particular, 
that BEA is particularly interested in any modifications proposed 
during the forms approval process that would substantially affect BEA's 
use of the data.
    Commission Response: As discussed above, the public utilizes the 
data in FERC Form Nos. 6 and 6-Q to assist in monitoring rates, the 
financial condition of the oil pipeline industry, and in assessing 
energy markets. BEA's comments in support of the collection of the Form 
Nos. 6 and 6-Q data provide tangible examples of this utilization and 
reflect the public benefit of reporting FERC Form Nos. 6 and 6-Q 
information.
    With respect to BEA's interest in any modifications to FERC Form 
Nos. 6 and 6-Q, we emphasize that we are not changing the information 
to be collected in this proceeding.
    The LSG's Comments: The LSG supports the continuation of the FERC 
Form Nos. 6 and 6-Q information collections. The LSG states that the 
data helps the Commission and shippers to evaluate the reasonableness 
of pipeline rates. In addition, the LSG recommends that the Commission 
modify the FERC Form No. 6 in order to enhance the quality, utility and 
clarity of the information collection. The LSG explains that in April 
2015, the LSG, the Airlines for America and the National Propane Gas 
Association filed a joint Petition for Rulemaking in Docket No. RM15-
19-000. The petition asked the Commission to issue a proposed rule to 
modify FERC Form No. 6 in two respects: (1) Require certain pipelines 
to file disaggregated Page 700 data; and (2)

[[Page 32915]]

require all pipelines to file or make Page 700 workpapers available to 
shippers and interested parties upon request, not just to FERC staff. 
The LSG also explains that it participated in the Commission's July 
2015 technical conference on the Petition for Rulemaking.
    The LSG states that it welcomed the Commission's decision to issue 
an Advanced Notice of Proposed Rulemaking (ANOPR) in October 2016 in 
Docket No. RM17-1.\7\ According to the LSG, the Commission stated that 
it was considering issuing a NOPR to propose certain changes to the 
FERC Form No. 6, Page 700 reporting requirement in order to further 
enhance financial reporting transparency. The LSG notes that in its 
comments to the ANOPR, it encouraged the Commission to propose rule 
changes to require a sub-set of pipelines to file disaggregated Page 
700 data in the form of the supplemental Page 700s that it explains was 
contemplated by the Commission in the ANOPR. The LSG states that it 
supported the Commission's proposal to require a pipeline to file 
disaggregated Page 700 data if it has both crude oil and petroleum 
product systems. The LSG further states that it supported the 
Commission's proposal to require a pipeline to file supplemental Page 
700s for: (1) ``non-contiguous (geographically separate) pipeline 
systems;'' and (2) ``major pipeline systems'' with certain suggested 
modifications to those criteria. According to the LSG, the aggregated 
data reported on Page 700 does not currently provide a shipper with the 
information it needs to determine whether certain pipelines are over-
recovering on a specific pipeline or segment.
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    \7\ Revisions to Index Policies and Page 700 of FERC Form No. 6, 
157 FERC 61,047 (2016).
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    The LSG states that in its comments to the ANOPR, it encouraged the 
Commission to propose to revise Page 700 to require all pipelines to 
disaggregate Page 700 revenue, barrel and barrel-mile data associated 
with cost-based rates, non-cost based rates and other jurisdictional 
revenues such as penalties. In addition, the LSG states that it 
recommended that the Commission also propose to require all pipelines 
to include information regarding pipeline loss allowance revenues in 
the ``other jurisdictional revenues'' category because, according to 
the LSG, it is unclear whether those revenues are being recorded by 
pipelines on Page 700 in a uniform and consistent manner.
    The LSG explains that in its comments to the ANOPR, it also 
reiterated the call for the Commission to require all pipelines to make 
their Page 700 workpapers available to a shipper or interested person 
upon request, not just to the Commission and FERC staff. The LSG 
suggested that there is no logical basis for, and no public interest 
served by, the requirement that pipelines provide their workpapers only 
to the Commission and Commission staff. According to the LSG, shippers 
should have the tools they need to bear the burden of evaluating the 
reasonableness of rates and bringing challenges to the pipeline's 
rates.
    For the reasons stated in its comments to the ANOPR, the LSG 
recommends that the Commission issue a Notice of Proposed Rulemaking 
(NOPR) in which the Commission proposes the suggested modifications to 
the FERC Form No. 6.
    Commission Response: The Commission and the public utilize the data 
in FERC Form Nos. 6 and 6-Q to assist in monitoring rates, the 
financial condition of the oil pipeline industry, and in assessing 
energy markets. The LSG's comments in support of the continued 
collection of FERC Form Nos. 6 and 6-Q data reflect the public benefit 
of reporting this information.
    LSG's FERC Form No. 6 modification suggestions are currently before 
the Commission in Docket No. RM15-19-000 for consideration in that 
proceeding.

                                          Estimates of Annual Burden 8 and Cost 9 for FERC Form Nos. 6 and 6-Q
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                                                        Annual number                                              Total annual burden
                                          Number of     of responses    Total number   Average burden hours and   hours and total annual     Cost per
                                         respondents   per respondent   of responses     cost ($) per response           cost ($)         respondent ($)
                                                  (1)             (2)     (1) * (2) =  (4).....................  (3) * (4) = (5)........       (5) / (1)
                                                                                  (3)
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FERC Form No. 6......................             244               1             244  161 hrs.; $12,719.......  39,284 hrs.; $3,103,436         $12,719
FERC Form No. 6-Q....................             244               3             732  150 hrs.; $11,850.......  109,800 hrs.;                    35,550
                                                                                                                  $8,674,200.
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    Comments: Comments are invited on: (1) Whether the collections of 
information are necessary for the proper performance of the functions 
of the Commission, including whether the information will have 
practical utility; (2) the accuracy of the agency's estimates of the 
burden and cost of the collections of information, including the 
validity of the methodology and assumptions used; (3) ways to enhance 
the quality, utility and clarity of the information collections; and 
(4) ways to minimize the burden of the collections of information on 
those who are to respond, including the use of automated collection 
techniques or other forms of information technology.
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    \8\ Burden is the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. For further 
explanation of what is included in the information collection 
burden, refer to Title 5 Code of Federal Regulations 1320.3.
    \9\ Commission staff estimates that the industry's average cost 
(for wages and benefits) for completing and filing FERC Form Nos. 6 
and 6-Q are comparable to the Commission's average cost. Therefore, 
we are using the FERC 2018 average salary plus benefits (for one 
FERC full-time equivalent, or FTE) of $164,820/year (or $79.00/
hour).

    Dated: July 3, 2019.
Kimberly D. Bose,
Secretary.
[FR Doc. 2019-14674 Filed 7-9-19; 8:45 am]
 BILLING CODE 6717-01-P