[Federal Register Volume 87, Number 193 (Thursday, October 6, 2022)]
[Notices]
[Pages 60670-60673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21764]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC22-17-000]


Commission Information Collection Activity (FERC-549); Comment 
Request; Extension

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of information collection and request for comments.

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SUMMARY: In compliance with the requirements of the Paperwork Reduction 
Act of 1995, the Federal Energy Regulatory Commission (Commission or 
FERC) is soliciting public comment on the currently approved 
information collections, FERC-549 (NGPA Section 311 Transactions and 
NGA Blanket Certificate Transactions).

DATES: Comments on the collections of information are due December 5, 
2022.

ADDRESSES: You may submit your comments (identified by Docket No. IC22-
17-000) on FERC-549 by one of the following methods:
    Electronic filing through https://www.ferc.gov is preferred.
     Electronic Filing: Documents must be filed in acceptable 
native applications and print-to-PDF, but not in scanned or picture 
format.
     For those unable to file electronically, comments may be 
filed by USPS mail or by hand (including courier) delivery:
    [cir] Mail via U.S. Postal Service Only: Addressed to: Federal 
Energy Regulatory Commission, Secretary of the Commission, 888 First 
Street NE, Washington, DC 20426.
    [cir] Hand (including courier) delivery: Deliver to: Federal Energy 
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
    Instructions: All submissions must be formatted and filed in 
accordance with submission guidelines at: https://www.ferc.gov. For 
user assistance, contact FERC Online Support by email at 
[email protected], or by phone at (866) 208-3676 (toll-free).
    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 https://www.ferc.gov.

FOR FURTHER INFORMATION CONTACT: Ellen Brown may be reached by email at 
[email protected], or by telephone at (202) 502-8663.

SUPPLEMENTARY INFORMATION:
    Title: NGPA Section 311 Transactions and NGA Blanket Certificate 
Transactions.
    OMB Control No.: 1902-0086.
    Type of Request: Three-year extension of the FERC-549 information 
collection requirements with a revision to account for the differences 
between filings seeking initial approval and those disclosing a change 
in circumstances.
    Abstract: FERC-549 is required to implement portions of the 
following statutory provisions: (1) Section 311 of the Natural Gas 
Policy Act (NGPA) (15 U.S.C. 3371); (2) Section 4(f) of the Natural Gas 
Act (NGA) (15 U.S.C. 717c(f)); and (3) Section 7 of the NGA (15 U.S.C. 
717f). The reporting requirements for implementing these provisions are 
contained in 18 CFR part 284.

Transportation by Interstate Pipelines for Intrastate Pipelines and 
Local Distribution Companies

    Under section 311(a)(1) of the NGPA and 18 CFR 284.101 and 284.102, 
any interstate pipeline may transport natural gas without prior 
Commission approval ``on behalf of'' an intrastate pipeline or a local 
distribution company (LDC). The regulation at 18 CFR 284.102(d) 
provides that the transportation is not ``on behalf of'' an intrastate 
pipeline or an LDC unless one of three conditions is met:

[[Page 60671]]

    (1) The interstate pipeline or LDC has physical custody of and 
transports the natural gas at some point;
    (2) The intrastate pipeline or LDC holds title to the natural gas 
at some point, which may occur prior to, during, or after the time that 
the gas is being transported by the interstate pipeline, for a purpose 
related to its status and functions as a local distribution company; or
    (3) The gas is delivered at some point to a customer that either is 
located in an LDC's service area or is physically able to receive 
direct deliveries of gas from an intrastate pipeline, and the LDC or 
intrastate pipeline certifies that it is on its behalf that the 
interstate pipeline is providing transportation service.
    The certification requirement in the third condition described at 
18 CFR 284.102(d)(3) is included in the burden table (below) as part of 
the information collection activity labeled ``Transportation by 
Pipelines.'' Before commencing service as described in paragraph 
(d)(3), the interstate pipeline that is providing the transportation 
must receive certification from the pertinent LDC or intrastate 
pipeline consisting of a letter from the intrastate pipeline or LDC 
authorizing the interstate pipeline to ship gas on its behalf, and 
sufficient information to verify that the service qualifies under 18 
CFR 284.102.

Transportation by Intrastate Pipelines for Interstate Pipelines or LDCs 
Served by an Interstate Pipeline

    Under section 311(a)(2) of the NGPA and 18 CFR 284.122 and 284.123, 
any intrastate pipeline may, without prior Commission approval, 
transport natural gas on behalf of any interstate pipeline or any LDC 
served by an interstate pipeline. No rate charged for such 
transportation may exceed a fair and equitable rate. The filing 
requirements described below are included in the burden table (below) 
as part of the information collection activity labeled ``Transportation 
by Pipelines.''
    The regulation at 18 CFR 284.123(b) provides that intrastate gas 
pipeline companies must file for Commission approval of rates for 
services performed in the interstate transportation of gas. An 
intrastate gas pipeline company may elect to use rates contained in one 
of its then effective transportation rate schedules on file with an 
appropriate state regulatory agency for intrastate service comparable 
to the interstate service or file proposed rates and supporting 
information showing the rates are cost based and are fair and 
equitable. It is the Commission policy that each pipeline must file at 
least every five years to ensure its rates are fair and equitable. 
Depending on the business process used, either 60 or 150 days after the 
application is filed, the rate is deemed to be fair and equitable 
unless the Commission either extends the time for action, institutes a 
proceeding or issues an order providing for rates it deems to be fair 
and equitable.
    The regulation at 18 CFR 284.123(e) requires that within 30 days of 
commencement of new service any intrastate pipeline engaging in the 
transportation of gas in interstate commerce must file a statement that 
includes the interstate rates and a description of how the pipeline 
will engage in the transportation services, including operating 
conditions. If an intrastate gas pipeline company changes its 
operations or rates it must amend the statement on file with the 
Commission. Such amendment is to be filed not later than 30 days after 
commencement of the change in operations or change in rate election.

Initial Approval of Market-Based Rates for Storage

    Section 4(f) of the NGA authorizes the Commission to permit natural 
gas storage service providers to charge market-based rates for storage, 
subject to conditions and requirements set forth in the statute. The 
Commission implements this authority under 18 CFR 284.501 through 
284.505. An applicant may apply for market-based rates by filing a 
request for a market-power determination that complies with the 
following:
    (a) The applicant must set forth its specific request and 
adequately demonstrate that it lacks market power in the market to be 
served, and must include an executive summary of its statement of 
position and a statement of material facts in addition to its complete 
statement of position. The statement of material facts must include 
citation to the supporting statements, exhibits, affidavits, and 
prepared testimony.
    The regulation at 18 CFR 284.503 requires that an application to 
charge market-based rate for storage services must include the 
following information:
    (1) Statement A--geographic market. This statement must describe 
the geographic markets for storage services in which the applicant 
seeks to establish that it lacks significant market power. It must 
include the market related to the service for which it proposes to 
charge market-based rates. The statement must explain why the 
applicant's method for selecting the geographic markets is appropriate.
    (2) Statement B--product market. This statement must identify the 
product market or markets for which the applicant seeks to establish 
that it lacks significant market power. The statement must explain why 
the particular product definition is appropriate.
    (3) Statement C--the applicant's facilities and services. This 
statement must describe the applicant's own facilities and services, 
and those of all parent, subsidiary, or affiliated companies, in the 
relevant markets identified in Statements A and B in paragraphs (b)(1) 
and (2) of this section. The statement must include all pertinent data 
about the storage facilities and services.
    (4) Statement D--competitive alternatives. This statement must 
describe available alternatives in competition with the applicant in 
the relevant markets and other competition constraining the applicant's 
rates in those markets. Such proposed alternatives may include an 
appropriate combination of other storage, local gas supply, LNG, 
financial instruments and pipeline capacity. These alternatives must be 
shown to be reasonably available as a substitute in the area to be 
served soon enough, at a price low enough, and with a quality high 
enough to be a reasonable alternative to the applicant's services. 
Capacity (transportation, storage, LNG, or production) owned or 
controlled by the applicant and affiliates of the applicant in the 
relevant market shall be clearly and fully identified and may not be 
considered as alternatives competing with the applicant. Rather, the 
capacity of an applicant's affiliates is to be included in the market 
share calculated for the applicant. To the extent available, the 
statement must include all pertinent data about storage or other 
alternatives and other constraining competition.
    (5) Statement E--potential competition. This statement must 
describe potential competition in the relevant markets. To the extent 
available, the statement must include data about the potential 
competitors, including their costs, and their distance in miles from 
the applicant's facilities and major consuming markets. This statement 
must also describe any relevant barriers to entry and the applicant's 
assessment of whether ease of entry is an effective counter to attempts 
to exercise market power in the relevant markets.
    (6) Statement F--maps. This statement must consist of maps showing 
the applicant's principal facilities, pipelines to which the applicant 
intends to interconnect and other pipelines within the area to be 
served, the direction of flow of each line, the

[[Page 60672]]

location of the alternatives to the applicant's service offerings, 
including their distance in miles from the applicant's facility. The 
statement must include a general system map and maps by geographic 
markets. The information required by this statement may be on separate 
pages.
    (7) Statement G--market-power measures. This statement must set 
forth the calculation of the market concentration of the relevant 
markets using the Herfindahl-Hirschman Index. The statement must also 
set forth the applicant's market share, inclusive of affiliated service 
offerings, in the markets to be served. The statement must also set 
forth the calculation of other market-power measures relied on by the 
applicant. The statement must include complete particulars about the 
applicant's calculations.
    (8) Statement H--other factors. This statement must describe any 
other factors that bear on the issue of whether the applicant lacks 
significant market power in the relevant markets. The description must 
explain why those other factors are pertinent.
    (9) Statement I--prepared testimony. This statement must include 
the proposed testimony in support of the application and will serve as 
the applicant's case-in-chief, if the Commission sets the application 
for hearing. The proposed witness must subscribe to the testimony and 
swear that all statements of fact contained in the proposed testimony 
are true and correct to the best of his or her knowledge, information, 
and belief. The regulation at 18 CFR 284.505(a), requires: (1) a 
demonstration that market-based rates are in the public interest and 
necessary to encourage the construction of storage capacity in an area 
needing storage services, and (2) an explanation of what means the 
storage service provider will use to protect customers from the 
potential exercise of market power.

Market Based-Rates--Notice of Change in Circumstances

    The Commission's regulations at 18 CFR 284.504(b) provide that a 
storage service provider granted the authority to charge market-based 
rates is required to notify the Commission within 10 days of acquiring 
knowledge of significant change occurring in its market power status. 
The notification should include a detailed description of the new 
facilities/services and their relationship to the storage service 
provider. Significant changes include: (1) The storage provider 
expanding its storage capacity beyond the amount authorized; (2) The 
storage provider acquiring transportation facilities or additional 
storage capacity; (3) An affiliate providing storage or transportation 
services in the same market area; and (4) The storage provider or an 
affiliate acquiring an interest in or is acquired by an interstate 
pipeline.

Code of Conduct Record Retention

    The Commission's regulations at 18 CFR 284.288(b) and 284.403(b), 
respectively, impose a record retention requirement contained in a Code 
of Conduct applicable to: (1) interstate pipelines that provide 
unbundled natural gas sales service,\1\ and (2) persons who are not 
interstate pipelines and whose sales of natural gas are authorized by 
the ``automatic'' blanket marketing certificate granted by operation of 
18 CFR 284.402.\2\ Any entity fitting one of those descriptions must 
retain, for a period of five years, all data and information upon which 
it billed the prices it charged for natural gas it sold pursuant to its 
market based sales certificate or the prices it reported for use in 
price indices.
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    \1\ As defined at 18 CFR 284.282(c), unbundled sales service is 
gas sales service that is sold separately from transportation 
service.
    \2\ The regulation at section 284.402(a) provides that any 
person who is not an interstate pipeline is granted a blanket 
certificate of public convenience and necessity, pursuant to section 
7 of the NGA, that authorizes the certificate holder to make sales 
for resale of natural gas at negotiated rates in interstate 
commerce. Section 2(1) of the NGA (15 U.S.C. 717a(1)) defines a 
``person'' to include an individual or corporation.
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    FERC uses these records to monitor the jurisdictional 
transportation activities and unbundled sales activities of interstate 
natural gas pipelines and blanket marketing certificate holders.
    The record retention period of five years is necessary due to the 
importance of records related to any investigation of possible 
wrongdoing and related to assuring compliance with the codes of conduct 
and the integrity of the market. The requirement is necessary to ensure 
consistency with 18 CFR 1c.1 (``Prohibition of Natural Gas Market 
Manipulation'') and the generally applicable five-year statute of 
limitations where the Commission seeks civil penalties for violations 
of the anti-manipulation rules or other rules, regulations, or orders 
to which the price data may be relevant.
    Failure to have this information available would mean the 
Commission would have difficulty performing its regulatory functions 
and to monitor and evaluate transactions and operations of interstate 
pipelines and blanket marketing certificate holders. The Code of 
Conduct Record Retention burden \3\ associated with the FERC-549 
includes both labor \4\ and storage costs.
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    \3\ 18 CFR 284.288(b) and 18 CFR 284.403(b)
    \4\ The $35.83 hourly cost figure comes from the average cost 
(wages plus benefits) of a file clerk (Occupation Code 43-4071) as 
posted on the BLS website (http://www.bls.gov/oes/current/naics2_22.htm).
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    Type of Respondents: Jurisdictional interstate and intrastate 
natural gas pipelines.
    Estimate of Annual Burden: \5\ The Commission estimates the annual 
burden and labor costs for the information collection as follows:
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    \5\ The Commission defines burden as 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 5 CFR 1320.3.

                                  FERC-549--Estimated Labor Costs for NGPA Section 311 Transactions, NGA Blanket Certificate Transaction, and Record Retention
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                                                             B  Annual
                                           A  Number of      number of       C  Total  number of      D  Average  burden hrs.  & cost    E  Total annual  burden hours  & total     F  Cost per
                                            respondents    responses per          responses                ($) \6\ per response                        annual cost                  respondent
                                                            respondent
                                                                             (Column A x Column B)                                      ($).....................................             ($)
                                                                                                                                        (Column C x Column D)...................     (Column E /
                                                                                                                                                                                       Column A)
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Transportation by Pipelines.............              43               2                        86  50 hrs.; $4,550...................  4,300 hrs.; $391,300....................          $9,100
MBR--Initial Approval...................               1               1                         1  350 hrs.; $31,850.................  350 hrs.; $31,850.......................          31,850
MBR--Change in Circumstances \7\........               5               1                         5  75 hrs.; $6,825...................  375 hrs.; $6,825........................           1,365

[[Page 60673]]

 
Record Retention........................             299               1                       299  1 hr.; $38.71.....................  299 hrs.; $11,574.29....................           38.71
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    Totals..............................             348  ..............                       391  ..................................  5,324 hrs.; $441,549....................  ..............
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    Storage Cost: \8\ In addition to the labor costs for record 
retention, non-labor costs of record retention and storage are 
estimated as follows:
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    \6\ For the information collection activities labeled 
``Transportation by Pipelines,'' ``MBR--Initial Approval,'' and 
``MBR--Change in Circumstances,'' Commission staff estimates that 
respondents' hourly labor cost is approximated by the Commission's 
average hourly cost (for wages and benefits) for 2022, or $91.00 per 
hour.
    For the information collection activity labeled ``Record 
Retention,'' Commission staff estimates that respondents' hourly 
labor cost is $38.71 (for wages and benefits), based on $27.24 (the 
mean hourly wage for an information and record clerk, Occupation 
Code 43-4000 for Utilities as posted at http://www.bls.gov/oes/current/naics2_22.htm), plus $11.47 (the average hourly cost for 
benefits for private industry, as posted at https://www.bls.gov/news.release/pdf/ecec.pdf.
    \7\ This new row was added to account for the differences 
between initial MBR filings and filings pertaining to a change in 
circumstances.
    \8\ Each of the 299 entities is assumed to have both paper and 
electronic record retention. Internal analysis assumes 50 percent 
paper storage and 50 percent electronic storage.
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     Paper storage costs (using an estimate of 12.5 cubic feet 
x $6.46 per cubic foot): $80.75 per respondent annually. Total annual 
paper storage cost to industry ($80.75 x 299 respondents): $24,144.25. 
This estimate assumes that a respondent stores 12.5 cubic feet of 
paper. We expect that this estimate should trend downward over time as 
more companies move away from paper storage and rely more heavily on 
electronic storage.
     Electronic storage costs: $3.18 per respondent annually. 
Total annual electronic storage cost to industry ($3.18 x 299 
respondents): $950.82. This calculation estimates storage of 
approximately 200 MB per year with a cost of $3.18.
    Comments are invited on: (1) whether the collection of information 
is 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 estimate of the burden and 
cost of the collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility and clarity of the information collection; and (4) ways to 
minimize the burden of the collection of information on those who are 
to respond, including the use of automated collection techniques or 
other forms of information technology.

    Dated: September 30, 2022.
Kimberly D. Bose,
Secretary.
[FR Doc. 2022-21764 Filed 10-5-22; 8:45 am]
BILLING CODE 6717-01-P