Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Proposed Rules

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Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Proposed Rules

Authority for This Rulemaking

Title 49 of the United States Code

specifies the FAA’s authority to issue

rules on aviation safety. Subtitle I,

Section 106, describes the authority of

the FAA Administrator. Subtitle VII,

Aviation Programs, describes in more

detail the scope of the Agency’s

authority.

We are issuing this rulemaking under

the authority described in Subtitle VII,

Part A, Subpart III, Section 44701,

‘‘General requirements.’’ Under that

section, Congress charges the FAA with

promoting safe flight of civil aircraft in

air commerce by prescribing regulations

for practices, methods, and procedures

the Administrator finds necessary for

safety in air commerce. This regulation

is within the scope of that authority

because it addresses an unsafe condition

that is likely to exist or develop on

products identified in this rulemaking

action.

Regulatory Findings

We have determined that this

proposed AD would not have federalism

implications under Executive Order

13132. This proposed AD would not

have a substantial direct effect on the

States, on the relationship between the

national Government and the States, or

on the distribution of power and

responsibilities among the various

levels of government.

For the reasons discussed above, I

certify that the proposed regulation:

1. Is not a ‘‘significant regulatory

action’’ under Executive Order 12866;

2. Is not a ‘‘significant rule’’ under the

DOT Regulatory Policies and Procedures

(44 FR 11034, February 26, 1979); and

3. Will not have a significant

economic impact, positive or negative,

on a substantial number of small entities

under the criteria of the Regulatory

Flexibility Act.

We prepared a regulatory evaluation

of the estimated costs to comply with

this proposed AD and placed it in the

AD docket. See the ADDRESSES section

for a location to examine the regulatory

evaluation.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

The Proposed Amendment

Accordingly, under the authority

delegated to me by the Administrator,

the FAA proposes to amend 14 CFR part

39 as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

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Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13

[Amended]

2. The Federal Aviation

Administration (FAA) amends § 39.13

by adding the following new

airworthiness directive (AD):

Airbus: Docket No. FAA–2005–23142;

Directorate Identifier 2005–NM–154–AD.

Comments Due Date

(a) The FAA must receive comments on

this AD action by January 3, 2006.

Affected ADs

(b) None.

Applicability

(c) This AD applies to Airbus Model A319–

131, –132, and –133 airplanes; Model A320–

232 and –233 airplanes; and Model A321–

131 and –231 airplanes; certificated in any

category; as identified in Airbus All

Operators Telex (AOT) A320–71A1036,

Revision 1, dated June 28, 2005.

Unsafe Condition

(d) This AD results from a report that,

during modification of certain engine

forward mount assemblies of the left and

right engines done at an engine shop visit, an

incorrect torque was applied to the

attachment bolts. We are issuing this AD to

prevent structural failure of the secondary

load path of the forward engine mount,

which, if combined with failure of the

primary load path, could result in separation

of the engine from the airplane.

Compliance

(e) You are responsible for having the

actions required by this AD performed within

the compliance times specified, unless the

actions have already been done.

Note 1: For the purposes of this AD, a

detailed inspection is: ‘‘An intensive

examination of a specific item, installation,

or assembly to detect damage, failure, or

irregularity. Available lighting is normally

supplemented with a direct source of good

lighting at an intensity deemed appropriate.

Inspection aids such as mirror, magnifying

lenses, etc., may be necessary. Surface

cleaning and elaborate procedures may be

required.’’

Inspection and Corrective Action

(f) Perform a detailed inspection for cracks

or failure of the primary load path

components of the engine forward mount by

doing all the applicable actions in

accordance with the procedures in AOT

A320–71A1036, Revision 1, dated June 28,

2005. Do any corrective action before further

flight in accordance with the procedures in

the AOT. Perform the actions at the time

specified in paragraph (f)(1) or (f)(2) of this

AD, as applicable.

(1) For Model A321–131 and –231

airplanes: Do the inspection within 5 days

after the effective date of this AD.

(2) For Model A319–131, –132, and –133

airplanes: Do the inspection within 10 days

after the effective date of this AD.

(g) For all airplanes: At the applicable time

specified in paragraph (g)(1) or (g)(2) of this

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AD, remove, re-install, and re-torque each of

the attachment bolts of the engine forward

mount assembly in accordance with the

procedures in AOT A320–71A1036, Revision

1, dated June 28, 2005.

(1) If the inspection specified in paragraph

(f) of this AD was accomplished after the

effective date of this AD: Do the actions

within 2,250 flight cycles after accomplishing

the inspection.

(2) If the inspection specified in paragraph

(f) of this AD was accomplished before the

effective date of this AD: Do the actions

within 2,250 flight cycles after the effective

date of this AD.

Actions Accomplished Previously

(h) Inspections, adjustments or repairs

done before the effective date of this AD in

accordance with the procedures in AOT

A320–71A1036, dated June 27, 2005, are

acceptable for compliance with the

corresponding actions required by this AD.

No Reporting Required

(i) Although AOT A320–71A1036,

Revision 1, dated June 28, 2005, recommends

that inspection results be reported to the

manufacturer, this AD does not include that

requirement.

Alternative Methods of Compliance

(AMOCs)

(j)(1) The Manager, International Branch,

ANM–116, Transport Airplane Directorate,

FAA, has the authority to approve AMOCs

for this AD, if requested in accordance with

the procedures found in 14 CFR 39.19.

(2) Before using any AMOC approved in

accordance with § 39.19 on any airplane to

which the AMOC applies, notify the

appropriate principal inspector in the FAA

Flight Standards Certificate Holding District

Office.

Related Information

(k) French emergency airworthiness

directive UF–2005–117, dated June 29, 2005,

also addresses the subject of this AD.

Issued in Renton, Washington, on

November 18, 2005.

Kalene C. Yanamura,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 05–23513 Filed 11–30–05; 8:45 am]

BILLING CODE 4910–13–P

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

18 CFR Part 284

[Docket No. RM06–5–000]

Amendments to Codes of Conduct for

Unbundled Sales Service and for

Persons Holding Blanket Marketing

Certificates

November 21, 2005.

AGENCY: Federal Energy Regulatory

Commission, DOE.

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Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Proposed Rules

ACTION: Notice of proposed rulemaking.

SUMMARY: The Federal Energy

Regulatory Commission (Commission) is

proposing to amend its regulations

regarding the blanket certificates for

unbundled gas sales services held by

interstate natural gas pipelines and the

blanket marketing certificates held by

persons making sales for resale of gas at

negotiated rates in interstate commerce.

Specifically, the Commission proposes

to repeal sections of the Commission’s

regulations pertaining to codes of

conduct with respect to certain sales of

natural gas once we have issued final

regulations implementing the antimanipulation provisions of the Energy

Policy Act of 2005 and have

incorporated other aspects of such

regulations in appropriate Commission

orders, rules and regulations. The

Commission seeks public comment on

whether such regulations should be

repealed as proposed herein.

DATES: Comments are due January 3,

2006. Reply comments are due January

17, 2006.

ADDRESSES: Comments may be filed

electronically via the eFiling link on the

Commission’s Web site at http://

www.ferc.gov. Commenters unable to

file comments electronically must send

an original and 14 copies of their

comments to: Federal Energy Regulatory

Commission, Office of the Secretary,

888 First Street, NE., Washington, DC

20426. Refer to the Comment

Procedures section of the preamble for

additional information on how to file

comments.

FOR FURTHER INFORMATION CONTACT:

Frank Karabetsos, Office of General

Counsel, Federal Energy Regulatory

Commission, 888 First Street, NE.,

Washington, DC 20426, (202) 502–8133,

Frank.Karabetsos@ferc.gov.

SUPPLEMENTARY INFORMATION:

Introduction

1. In this Notice of Proposed

Rulemaking (NOPR), the Commission

seeks comments on whether to repeal

sections 284.288 and 284.403 of its

regulations,1 which requires that

pipelines and all sellers for resale

adhere to a code of conduct with respect

to certain sales of natural gas, as

implemented pursuant to Order No.

644.2 The central purpose of sections

1 18 CFR 284.288 and 284.403 (2005). Sections

284.288 and 284.403 of the Commission’s

regulations are provided in Attachment A hereto.

2 Amendments to Blanket Sales Certificates,

Order No. 644, 105 FERC ¶ 61,217 (2003), reh’g

denied 107 FERC ¶ 61,174; 68 FR 66,323 (Nov. 26,

2003); 18 CFR 284.288(a) and 284.403(a) (2003)

(Order No. 644). Order No. 644 is currently on

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284.288 and 284.403 of the

Commission’s regulations is to prohibit

market manipulation. In the Energy

Policy Act of 2005 (EPAct 2005),3

Congress enacted new section 4A of the

Natural Gas Act (NGA) which

specifically bars manipulation in

connection with the purchase or sale of

natural gas or transportation services

and authorizes the Commission to

promulgate rules and regulations

prohibiting market manipulation. In a

Notice of Proposed Rulemaking issued

October 20, 2005, the Commission has

proposed rules to implement the new

statutory anti-manipulation provisions.4

We propose repealing sections 284.288

and 284.403 of the Commission’s

regulations once we have issued final

regulations implementing the antimanipulation provisions of EPAct 2005

and have incorporated other aspects of

sections 284.288 and 284.403 of the

Commission’s regulations in appropriate

Commission orders, rules, and

regulations. We are also requesting

comment on whether sections 284.288

and 284.403 should be repealed

prospectively.

Background

2. On November 17, 2003, acting

pursuant to section 7 of the NGA, we

issued a final rule, Order No. 644,

amending blanket certificates for

unbundled gas sales services held by

interstate natural gas pipelines and

blanket marketing certificates held by

persons making sales for resale of

natural gas at negotiated rates in

interstate commerce. This rule requires

that pipelines that provide unbundled

natural gas sales service and all sellers

of natural gas for resale adhere to a code

of conduct with respect to natural gas

sales. The Commission determined that

in order to protect and maintain the

competitive natural gas market and to

continue its light-handed regulation of

the gas sales within its jurisdiction, it

was necessary to place additional

conditions on its grant of market-based

sales certificates. In formulating such

conditions to the market-based rate

certificates the Commission was

fulfilling its obligation to appropriately

monitor markets and to ensure that

market-based rates remain within the

zone of reasonableness required by the

NGA.5

appeal. See Cinergy Marketing & Trading, L.P. v.

FERC, No. 04–1168 et al. (D.C. Cir., appeal filed

April 28, 2004).

3 Energy Policy Act of 2005, Pub. L. 109–58, 119

Stat. 594 (2005).

4 Prohibition of Energy Market Manipulation, 113

FERC ¶ 61,067 (2005) (Prohibition of Energy Market

Manipulation NOPR).

5 105 FERC ¶ 61,217 at P 91 (2003).

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72091

3. Under sections 284.288(a) and

284.403(a) of the Commission’s

regulations, a pipeline providing

unbundled natural gas sales service

under section 284.284, or any person

making natural gas sales for resale in

interstate commerce pursuant to section

284.402, ‘‘is prohibited from engaging in

actions or transactions that are without

a legitimate business purpose and that

are intended to or foreseeably could

manipulate market prices, market

conditions, or market rules for natural

gas.’’ Prohibited actions or transactions

include wash trades and collusion for

the purpose of market manipulation.6

4. Sections 284.288(b) and 284.403(b)

deal with reporting of transaction

information to price index publishers.

They require that if a seller reports

transaction data, the data be accurate

and factual, and not knowingly false or

misleading, and be reported in

accordance with the Commission’s

Policy Statement on price indices.7

Sections 284.288(b) and 284.403(b) also

require that sellers notify the

Commission of whether they report

transaction data to price index

publishers in accordance with the

Policy Statement, and to update any

changes in their reporting status.

5. Sections 284.288(c) and 284.403(c)

require that sellers retain for a minimum

three year period all data and

information upon which they billed the

prices charged for natural gas sales

made under their market-based sales

certificates or in transactions the prices

of which were reported to price index

publishers.

6. Sections 284.288(d)–(e) and

284.403(d)–(e) of the Commission’s

regulations are largely procedural in

nature. Specifically, sections 284.288(d)

and 284.403(d) deal with remedies for

violations of the codes of conduct

requirements set forth in preceding

paragraphs (a) through (c) of sections

284.288 and 284.403. Sections

284.288(e) and 284.403(e) deal with

time limits on complaints and

Commission enforcement of the codes of

conduct requirements.

7. At the same time that Order No.

644 was adopted for pipelines that

provide unbundled natural gas sales

service and holders of blanket certificate

authority that make sales for resale of

natural gas, the Commission also issued

an order to require wholesale sellers of

electricity at market-based rates to

6 18 CFR 284.288(a)(1)–(2) and 284.403(a)(1)–(2)

(2005).

7 Policy Statement on Natural Gas and Electric

Price Indices, 104 FERC ¶ 61,121 (2003).

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Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Proposed Rules

adhere to certain behavioral rules when

making sales of electricity.8

EPAct 2005 and Proposed New Rules

8. As noted, section 315 of EPAct

2005 amended the NGA to add a new

section 4A, which prohibits the use or

employment of ‘‘any manipulative or

deceptive device or contrivance’’ in

connection with the purchase or sale of

natural gas or the purchase or sale of

transportation services subject to the

jurisdiction of the Commission. In order

to implement the anti-manipulation

provisions of NGA section 4A, we

issued the Prohibition of Energy Market

Manipulation NOPR, proposing new

regulations (proposed Part 159

regulations) to make it unlawful for any

entity, directly or indirectly, in

connection with the purchase or sale of

natural gas or the purchase or sale of

transportation services subject to the

jurisdiction of the Commission (1) to

use or employ any device, scheme, or

artifice to defraud, (2) to make any

untrue statement of a material fact or to

omit to state a material fact necessary in

order to make the statements made, in

the light of the circumstances under

which they were made, not misleading,

or (3) to engage in any act, practice, or

course of business that operates or

would operate as a fraud or deceit upon

any person.9

9. In the Prohibition of Energy Market

Manipulation NOPR, we recognized that

sections 284.288(a) and 284.403(a) of

the Commission’s regulations also

prohibit manipulative conduct. We

noted that conduct that violates sections

284.288(a) or 284.403(a) and the

proposed Part 159 regulations will be

treated as one violation of antimanipulation rules, and that we will not

apply duplicative penalties for the same

conduct in the event that conduct were

to violate both sections 284.288(a) or

284.403(a) and the proposed Part 159

regulations. We also indicated that we

would seek comment on whether

sections 284.288(a) and 284.403(a) of

the Commission’s regulations should be

revised or repealed in light of the

proposed Part 159 regulations.

Discussion

10. Our goal is to provide firm but fair

enforcement of the statutes, orders,

rules, and regulations we administer. To

do so, it is important that our rules be

as clear as possible so that market

8 Investigation of Terms and Conditions of Public

Utility Market-Based Rate Authorizations, ‘‘Order

Amending Market-Based Rate Tariffs and

Authorizations,’’ 105 FERC ¶ 61,218 (2003), reh’g

denied, 107 FERC ¶ 61,175 (2004) at Appendix A.

9 The proposed Part 159 regulations are also

provided in Attachment A hereto.

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participants and entities subject to our

rules and regulations understand what

conduct is proscribed and can act

accordingly.10 We propose to repeal

sections 284.288 and 284.403 in light of

the proposed Part 159 regulations to

implement the new anti-manipulation

provisions contained in section 4A of

the NGA and of the Commission’s other

rules and regulations.11 All market

participants subject to sections 284.288

and 284.403 are ‘‘entities’’ subject to

EPAct 2005 and therefore will be subject

to the new regulations prohibiting

manipulation, deceit, and fraud in

connection with wholesale natural gas

transactions. Other aspects of sections

284.288 and 284.403 of the

Commission’s regulations either reflect

existing requirements or can be

incorporated into other rules, making it

unnecessary to retain the separate list of

rules in sections 284.288(a)–(e) and

284.403(a)–(e) of the Commission’s

regulations.

11. We think that repeal of sections

284.288 and 284.403 of the

Commission’s regulations will simplify

the Commission’s rules and regulations,

avoid confusion, and provide greater

clarity and regulatory certainty to the

industry. At the same time, we think

that the behaviors described in sections

284.288 and 284.403 of the

Commission’s regulations will still be

addressed through other rules and

regulations. We emphasize our belief

that repeal of sections 284.288 and

284.403 of the Commission’s regulations

is intended to take into account the

passage of EPAct 2005, which has

provided the Commission with

expanded anti-manipulation authority,

and to simplify and streamline the rules

and regulations sellers must follow, not

to eliminate beneficial rules governing

market behavior.

12. The heart of sections 284.288 and

284.403 of the Commission’s regulations

is subparagraph (a), prohibiting

manipulation. We recognize that there is

overlap between sections 284.288(a) and

284.403(a) of the Commission’s

regulations and the proposed Part 159

regulations. We are concerned that this

10 As discussed in the Prohibition of Energy

Market Manipulation NOPR (at P 14), section 4A of

the NGA, as added by section 315 of EPAct 2005,

and the proposed implementing rules are patterned

after section 10(b) of the Securities Exchange Act

of 1934 and related regulations, which provides a

level of certainty as to how the proposed rules will

operate that is not typically available.

11 Concurrently with this NOPR, we are issuing

an order pursuant to section 206 of the Federal

Power Act (FPA) in Docket No. EL06–16–000 to

consider similar changes to the Market Behavior

Rules, which are currently included in all public

utility sellers’ market-based rate tariffs and

authorizations.

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could cause unnecessary confusion and

regulatory uncertainty once the

proposed Part 159 regulations are in

place. It is our view that the scope of the

new statutory prohibition on

manipulation and the reach of the

proposed Part 159 regulations eliminate

the need for sections 284.288(a) and

284.403(a) of the Commission’s

regulations.

13. We recognize there are some

differences, but the differences do not

seem to require keeping sections

284.288 and 284.403 of the

Commission’s regulations once the new

Part 159 regulations are final.12 For

instance, there is a difference in the

standard of proof between sections

284.288(a) and 284.403(a) of the

Commission’s regulations and the

proposed Part 159 regulations. In new

section 4A of the NGA, Congress used

the terms ‘‘manipulative or deceptive

device or contrivance’’ and directed that

they be given the same meaning as used

in section 10b of the Securities

Exchange Act of 1934.13

Those terms have been interpreted to

require a showing of scienter, that is, an

intent to deceive, manipulate or

defraud.14 In other words, knowing,

intentional, or reckless conduct is

proscribed.15 In contrast, sections

284.288(a) and 284.403(a) of the

Commission’s regulations do not require

a showing of scienter, as they prohibit

actions or transactions that

‘‘foreseeably’’ could manipulate market

prices, conditions, or rules. The

‘‘foreseeably’’ requirement has

generated controversy and uncertainty,

however. We believe the use of a

scienter standard, given the precedent

in other regulatory contexts, will draw

a clearer line between acceptable and

prohibited behavior.

14. We also note that the new

authority granted to the Commission in

section 4A of the NGA and our

proposed Part 159 regulations governs

more transactions and more entities

12 The timing of proposed repeal is important. We

do not intend to leave any gap in our regulations

prohibiting manipulation of energy markets or other

requirements of sections 284.288 and 284.403 of the

Commission’s regulations.

13 15 U.S.C. 78j(b) (2005).

14 Ernst & Ernst v. Hochfelder, 425 U.S. 185, 201

(1976).

15 Sundstrand Corp. v. Sun Chemical Corp., 553

F.2d 1033 (7th Cir. 1977), cert. denied, 434 U.S. 875

(1977) (defining recklessness in the section 10(b)

and Rule 10b–5 context as ‘‘a highly unreasonable

omission, involving not merely simple, or even

inexcusable negligence, but an extreme departure

from the standards of ordinary care, and which

presents a danger of misleading buyers or sellers

that is either known to the defendant or is so

obvious that the actor must have been aware of it.’’);

accord In Re Silicon Graphics Securities Litigation,

183 F.3d 970, 977 (9th Cir. 1999).

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Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Proposed Rules

than is the case for sections 284.288(a)

and 284.403(a) of the Commission’s

regulations, which covers only certain

natural gas sellers. More precisely,

Congress made the anti-manipulation

provisions of section 315 applicable to

‘‘any entity’’ and in connection with

both the purchase and sale of natural

gas, as well as the purchase or sale of

transportation services subject to our

jurisdiction. Sections 284.288(a) and

284.403(a) of the Commission’s

regulations, on the other hand, are

applicable only to a pipeline providing

unbundled natural gas sales service

under section 284.284, or any person

making natural gas sales for resale in

interstate commerce pursuant to section

284.402, a smaller subset of the entities

and types of transactions than those

subject to EPAct 2005 section 315

prohibition of manipulation.

15. Additionally, it is our view that it

is not necessary to retain the explicit

prohibitions against certain conduct set

forth in sections 284.288(a)(1)–(2) and

284.403(a)(1)–(2) (wash trades and

collusion for the purpose of market

manipulation). These are examples of

prohibited manipulation, both of which

are manipulative or deceptive devices or

contrivances. Thus, both would be

barred by the proposed Part 159

regulations. For example, wash trades

would be devices or schemes to defraud

(proposed section 159.1(a)(1)). It is our

view that market participants are on

notice that wash trades and colluding to

manipulate are prohibited activities

under the proposed Part 159

regulations, subject to penalty and

remedial action.

16. Turning to the other

subparagraphs of sections 284.288 and

284.403 of the Commission’s

regulations, it appears that the

requirements imposed there either are

duplicative of other rules or regulations

or can be incorporated into other rules

of general applicability. For instance,

the first part of sections 284.288(b) and

284.403(b), requiring sellers to provide

accurate data to price index publishers

if the seller is reporting transactions to

such publishers, calls for accurate and

truthful representations. It is our view

that failure to do so would be a violation

of the proposed Part 159 regulations.

Sections 284.288(b) and 284.403(b) of

the Commission’s regulations also

include a requirement that sellers notify

the Commission of their price reporting

status and any changes in that status.

This does not appear elsewhere in our

current or proposed regulations. We

note, however, that price transparency

is also addressed by EPAct 2005, which

adds new section 23 to the NGA.

Section 23 gives us authority to

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promulgate rules and regulations

necessary to facilitate price

transparency. We intend to address

market transparency issues in a separate

proceeding, and anticipate that rules

adopted in that proceeding will address

the sections 284.288(b) and 284.403(b)

requirements for providing transaction

information to price index publishers

and informing the Commission of price

reporting status.

17. Sections 284.288(c) and 284.403(c)

requires sellers to maintain certain

records for a period of three years to

reconstruct prices charged for natural

gas. The Commission has a number of

specific record retention requirements

applicable to natural gas companies

subject to the jurisdiction of the

Commission in Part 225 of our

regulations.16 In many cases, these

requirements are for time periods longer

than three years. The Part 225

requirements are largely related to costof-service rate requirements, however.

We believe it is important that all

pipelines providing unbundled natural

gas sales service and all persons holding

blanket certificates making natural gas

sales for resale in interstate commerce

retain the data and information

described in sections 284.288(c) and

284.403(c) of the Commission’s

regulations. We intend to address this

retention requirement in the context of

our rules under the NGA, such that

there will be no gap in the retention

requirement. We believe that doing so

would eliminate the need to retain

sections 284.288(c) and 284.403(c) of

the Commission’s regulations.

18. If the Commission decides to

repeal sections 284.288(a)–(c) and

284.403(a)–(c) of its regulations, it is the

Commission’s view that sections

284.288(d) and 284.403(d) of the

Commissions’ regulations, dealing with

remedies, and sections 284.288(e) and

284.404(e), dealing with time limits on

complaints and Commission

enforcement, are largely procedural and

would become superfluous without the

underlying operative paragraphs and

therefore should be deleted.

19. In addition to simplifying our

codes of conduct rules, avoiding

confusion, and providing more

regulatory certainty, it is also our view

that a smooth transition from the

existing codes of conduct regulations to

the proposed Part 159 regulations and

other rules and regulations achieves our

original goal in adopting sections

284.288 and 284.403 of the

Commission’s regulations, that is, to

fulfill our obligation to ensure that

market-based rates remain within the

zone of reasonableness required by the

NGA. In EPAct 2005, Congress has

provided broad and strong prohibitions

of market manipulation, and reliance on

rules implementing these statutory

prohibitions will likewise assure that

wholesale markets reflect competitive

forces and produce just and reasonable

rates.

20. We seek comment on whether

sections 284.288 and 284.403 of the

Commission’s regulations should be

repealed prospectively, including

responses to the following questions:

A. Are there any aspects of sections

284.288 and 284.403 of the

Commission’s regulations that should be

retained, or can all substantive

provisions of sections 284.288 and

284.403 of the Commission’s regulations

be reflected in the proposed Part 159

regulations and other Commission rules

and regulations?

B. Is there a need or basis for retaining

existing sections 284.288(a) and

284.403(a) of the Commission’s

regulations in light of the antimanipulation provisions set forth in the

proposed Part 159 regulations?

C. Should the affirmative defense of

‘‘legitimate business purpose’’ in

existing sections 284.288(a) and

284.403(a) of the Commission’s

regulations be retained in any form?

D. Is the requirement of sections

284.288(b) and 284.403(b) of the

Commission’s regulations to report

transaction information accurately, to

the extent a seller reports such

information to price index publishers,

necessary in light of the proposed Part

159 regulations?

21. We encourage responses to the

specific questions above as well as

additional relevant comments regarding

whether sections 284.288 and 284.403

of the Commission’s regulations should

be repealed.

Information Collection Statement

22. This proposed rule implements

the existing requirements as set forth in

section 4A of the NGA and does not

include new information requirements

under the provisions of the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.).

Environmental Analysis

23. 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.17 The Commission has

17 Order No. 486, Regulations Implementing the

National Environmental Policy Act, 52 FR 47897

16 18 CFR Part 225 (2005).

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Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Proposed Rules

categorically excluded certain actions

from these requirements as not having a

significant effect on the human

environment.18 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.19 Therefore, an

environmental assessment is

unnecessary and has not been prepared

in this NOPR.

Regulatory Flexibility Act

24. The Regulatory Flexibility Act of

1980 (RFA) 20 generally requires a

description and analysis of final rules

that will have significant economic

impact on a substantial number of small

entities.21 The Commission is not

required to make such analyses if a rule

would not have such an effect.

25. The Commission does not believe

that this proposed rule would have such

an impact on small entities. The

proposed rule merely repeals sections

284.288 and 284.403 of the

Commission’s regulations. Therefore,

the Commission certifies that this

proposed rule, if finalized, will not have

a significant economic impact on a

substantial number of small entities.

Comment Procedures

26. The Commission invites interested

persons to submit comments on the

matters and issues proposed in this

notice to be adopted, including any

related matters or alternative proposals

that commenters may wish to discuss.

Comments are due January 3, 2006.

Reply comments are due January 17,

2006. Comments must refer to Docket

No. RM06–5–000, and must include the

commenter’s name, the organization

they represent, if applicable, and their

address in their comments. Comments

(Dec. 17, 1987), FERC Stats. & Regs., Regulations

Preambles 1986–1990 ¶ 30,783 (1987).

18 18 CFR 380.4 (2005).

19 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5),

380.4(a)(27) (2005).

20 5 U.S.C. 601–12 (2000).

21 The RFA definition of ‘‘small entity’’ refers to

the definition provided in the Small Business Act,

which defines a ‘‘small business concern’’ as a

business that is independently owned and operated

and that is not dominant in its field of operation.

15 U.S.C. 632 (2000). The Small Business Size

Standards component of the North American

Industry Classification System defines a small

electric utility as one that, including its affiliates,

is primarily engaged in the generation,

transmission, and/or distribution of electric energy

for sale and whose total electric output for the

preceding fiscal years did not exceed 4 million

MWh. 13 CFR 121.201 (2004) (Section 22, Utilities,

North American Industry Classification System,

NAICS).

VerDate Aug<31>2005

14:46 Nov 30, 2005

Jkt 208001

may be filed either in electronic or

paper format. 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

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, Office of the

Secretary, 888 First Street, NE.,

Washington, DC 20426.

27. 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.

28. 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.

29. From FERC’s Home Page on the

Internet, this information is available in

the eLibrary. The full text of this

document is available in the eLibrary

both in PDF and Microsoft Word format

for viewing, printing, and/or

downloading. To access this document

in eLibrary, type the docket number

excluding the last three digits of this

document in the docket number field.

User assistance is available for

eLibrary and the FERC’s Web site during

our normal business hours. For

assistance contact FERC Online Support

at FERCOnlineSupport@ferc.gov or tollfree at (866) 208–3676, or for TTY,

contact (202) 502–8659.

List of Subjects in 18 CFR Part 284

Continental Shelf, Natural gas,

Reporting and recordkeeping

requirements.

By direction of the Commission.

Magalie R. Salas,

Secretary.

In consideration of the foregoing, the

Commission proposes to amend part

284, chapter I, title 18, Code of Federal

Regulations, as follows.

Frm 00012

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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. 7101–7532; 43 U.S.C. 1331–

1356.

§ 284.288

[Removed]

2. Remove § 284.288.

§ 284.403

[Removed]

3. Remove § 284.403.

[FR Doc. 05–23405 Filed 11–30–05; 8:45 am]

BILLING CODE 6717–01–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 55

[OAR–2004–0091; FRL–8000–1]

Document Availability

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PART 284—CERTAIN SALES AND

TRANSPORTATION OF NATURAL GAS

UNDER THE NATURAL GAS POLICY

ACT OF 1978 AND RELATED

AUTHORITIES

Outer Continental Shelf Air

Regulations Consistency Update for

California

AGENCY: Environmental Protection

Agency (‘‘EPA’’).

ACTION: Proposed rule.

SUMMARY: EPA is proposing to update a

portion of the Outer Continental Shelf

(‘‘OCS’’) Air Regulations. Requirements

applying to OCS sources located within

25 miles of States’ seaward boundaries

must be updated periodically to remain

consistent with the requirements of the

corresponding onshore area (‘‘COA’’), as

mandated by section 328(a)(1) of the

Clean Air Act, as amended in 1990 (‘‘the

Act’’). The portion of the OCS air

regulations that is being updated

pertains to the requirements for OCS

sources by the State of California and

South Coast Air Quality Management

District (South Coast AQMD). The

intended effect of approving the OCS

requirements for the State of California

and South Coast AQMD is to regulate

emissions from OCS sources in

accordance with the requirements

onshore. The change to the existing

requirements discussed below is

proposed to be incorporated by

reference into the Code of Federal

Regulations and is listed in the

appendix to the OCS air regulations.

DATES: Comments on the proposed

update must be received on or before

January 3, 2006.

ADDRESSES: Submit comments,

identified by docket number OAR–

2004–0091, by one of the following

methods:

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