Revisions to Oil Pipeline Regulations

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 3, 341, 342, 343, 346, 357, 362 and 385

[Docket No. RM99-1-000]

Revisions to Oil Pipeline Regulations

October 20, 1998.

AGENCY: Federal Energy Regulatory Commission. DOE.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is

proposing to revise its regulations governing oil pipelines. The goals

of these proposed revisions are to clarify the Commission's regulations

and bring them up to date.

DATES: Comments are due November 25, 1998.

ADDRESSES: Federal Energy Regulatory Commission, 888 First Street, NE.,

Washington, D.C. 20426.

FOR FURTHER INFORMATION CONTACT: Travis R. Smith, Office of the General

Counsel, Federal Energy Regulatory Commission, 888 First Street, NE.,

Washington, DC 20426, (202) 208-0696.

SUPPLEMENTARY INFORMATION: In addition to publishing the full text of

this document in the Federal Register, the Commission also provides all

interested persons an opportunity to inspect or copy the contents of

this document during normal business hours in the Public Reference Room

at 888 First Street, NE., Room 2A, Washington, DC 20426.

The Commission Issuance Posting System (CIPS) provides access to

the texts of formal documents issued by the Commission. CIPS can be

accessed via Internet through FERC's Homepage (http://www.ferc.fed.us)

using the CIPS Link or the Energy Information Online icon. The full

text of this document will be available on CIPS in ASCII and

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accessed using a personal computer with a modem by dialing 202-208-

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PS Link or the Energy Information Online icon. The full

text of this document will be available on CIPS in ASCII and

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This document is also available through the Commission's Records

and Information Management System (RIMS), an electronic storage and

retrieval system of documents submitted to and issued by the Commission

after November 16, 1981. Documents from November 1995 to the present

can be viewed and printed. RIMS is available in the Public Reference

Room or remotely via Internet through FERC's Homepage using the RIMS

link or the Energy Information Online icon. User assistance is

available at 202-208-2222, or by E-mail to [email protected].

Finally, the complete text on diskette in WordPerfect format may be

purchased from the Commission's copy contractor, RVJ International,

Inc. RVJ International, Inc., is located in the Public Reference Room

at 888 First Street, NE., Washington, DC 20426.

The Federal Energy Regulatory Commission (Commission) has reviewed

its regulations governing oil pipelines and has determined that various

provisions are either outdated or in conflict with other oil pipeline

regulations. Accordingly, the Commission is proposing to revise 18 CFR

parts 341, 342, 343, and 346 to remove these provisions. The Commission

is also proposing to revise 18 CFR parts 3, 357, 362, and 385. The

goals of these proposed revisions are to clarify the Commission's

regulations and bring them up to date.

I. Background

isions are either outdated or in conflict with other oil pipeline

regulations. Accordingly, the Commission is proposing to revise 18 CFR

parts 341, 342, 343, and 346 to remove these provisions. The Commission

is also proposing to revise 18 CFR parts 3, 357, 362, and 385. The

goals of these proposed revisions are to clarify the Commission's

regulations and bring them up to date.

I. Background

Jurisdiction over oil pipelines, as it relates to the establishment

of rates or charges for the transportation of oil by pipeline or to the

establishment of valuations for pipelines, was transferred from the

Interstate Commerce Commission (ICC) to the Commission pursuant to

sections 306 and 402 of the Department of Energy Organization Act (DOE

Act).1 At the time the DOE Act transferred jurisdiction over

oil pipeline rates to the Commission, the regulations governing oil

pipelines were located in the ICC's regulations at Title 49 of the Code

of Federal Regulations (CFR). Initially, the Commission ordered that

the regulations concerning oil pipelines remain in effect until

modified by the Commission. In Order No. 119,2 the

Commission started transferring some of the ICC's oil pipeline

regulations from Title 49 of the Code of Federal Regulations to the

Commission's regulations in Title 18. parts 357 3 and 362

4 were among some of the Commission's current regulations

that were adopted from this initial transfer. In Order No.

225,5 the Commission adopted the ICC's rules pertaining to

paper hearings called the ``modified procedure,'' currently codified at

18 CFR sections 385.1404 through 385.1414, and to ex parte

communications, presently located at 18 CFR 385.1415, from 49 CFR part

1100. Also, pursuant to Order No. 225, the Commission moved all of its

Rules of Practice and Procedure from 18 CFR part 1 to 18 CFR part 385.

Notwithstanding some limited revisions, most of the provisions in parts

357, 362, and 385 are the same as they were in Title 49

FR sections 385.1404 through 385.1414, and to ex parte

communications, presently located at 18 CFR 385.1415, from 49 CFR part

1100. Also, pursuant to Order No. 225, the Commission moved all of its

Rules of Practice and Procedure from 18 CFR part 1 to 18 CFR part 385.

Notwithstanding some limited revisions, most of the provisions in parts

357, 362, and 385 are the same as they were in Title 49.

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\1\ Department of Energy Organization Act, 42 U.S.C. 7155 and

7172(b) (1988).

\2\ Regulation of Interstate Oil Pipelines, Order No. 119, 46 FR

9043 (January 28, 1981), FERC Stats. & Regs. (Regulations Preambles,

1977-1981) para. 30,226 (May 5, 1981).

\3\ Part 357 addresses the annual special or periodic reports

that carriers subject to Part I of the Interstate Commerce Act are

required to file.

\4\ Part 362 sets forth the various requirements for valuation.

\5\ Revisions of Rules of Practice and Procedure to Expedite

Trial-Type Hearings, Order No. 225, 47 FR 19014 (May 3, 1982), FERC

Stats. & Regs. (Regulations Preambles, 1982-1985) para. 30,358

(January 18, 1983).

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The Energy Policy Act of 1992 (Act of 1992) required the Commission

to promulgate new regulations to provide a simplified and generally

applicable ratemaking methodology for oil pipelines, and to streamline

its procedures in oil pipeline proceedings.6

Regulations Preambles, 1982-1985) para. 30,358

(January 18, 1983).

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The Energy Policy Act of 1992 (Act of 1992) required the Commission

to promulgate new regulations to provide a simplified and generally

applicable ratemaking methodology for oil pipelines, and to streamline

its procedures in oil pipeline proceedings.6

Pursuant to Congress' directive in the Act of 1992, the Commission

issued Order No. 561 7 and two companion rulemakings, Order

Nos. 571 8 and 572.9 In Order No. 561, the

Commission established a simplified and generally applicable way for

oil pipelines to change their rates and also provided alternatives to

this methodology. In Order No. 571, the Commission addressed a cost-of-

service rate filing alternative for oil pipelines. In Order No. 572,

the Commission addressed market-based rates for oil pipelines. These

rulemakings also included new rate filing requirements and procedural

reforms to reflect the new ratemaking methodologies, and streamlined

the Commission's internal processes for oil pipelines.

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\6\ The Energy Policy Act of 1992 (Act of 1992) contemplated two

rulemakings--one on ratemaking methodology and another on

streamlined procedures--and established separate deadlines for their

completion. Energy Policy Act of 1992 Pub. L. 102-46, Title XVIII,

1801 to 1804, 106 Stat. 2776, 3010-3011 (codified as 42 U.S.C.A.

7172 note (West Supp. 1995)).

\7\ Revisions to Oil Pipeline Regulations pursuant to Energy

Policy Act of 1992, Order No. 561, 58 FR 58753 (November 4, 1993),

FERC Stats. & Regs. (Regulations Preambles, 1991-1996) para. 30,985

(October 22, 1993), order on rehearing and clarification, Order No.

561-A, 59 FR 40243 (August 8, 1994) FERC Stats. & Regs. (Regulations

Preambles, 1991-1996) para. 31,000 (July 28, 1994).

\8\ Cost-of-Service Reporting and Filing Requirements for Oil

Pipelines, Order No

of 1992, Order No. 561, 58 FR 58753 (November 4, 1993),

FERC Stats. & Regs. (Regulations Preambles, 1991-1996) para. 30,985

(October 22, 1993), order on rehearing and clarification, Order No.

561-A, 59 FR 40243 (August 8, 1994) FERC Stats. & Regs. (Regulations

Preambles, 1991-1996) para. 31,000 (July 28, 1994).

\8\ Cost-of-Service Reporting and Filing Requirements for Oil

Pipelines, Order No. 571, 59 FR 59137 (November 16, 1994) FERC

Stats. & Regs. (Regulations Preambles, 1991-1996) para. 31,006

(October 28, 1994), order on hearing and clarification, Order No.

571-A, 60 FR 356 (January 4, 1995) FERC Stats. & Regs. (Regulations

Preambles, 1991-1996) para. 31,012 (December 28, 1994).

\9\ Market-Based Ratemaking for Oil Pipelines, Order No. 572, 59

FR 59148 (November 16, 1994), FERC Stats. & Regs. (Regulations

Preambles, 1991-1996) para. 31,007 (October 28, 1994), order denying

rehearing, Order No. 572-A, 69 FERC para. 61,412 (December 28,

1994).

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At the time the Commission adopted changes to its ratemaking

methodologies and procedural requirements, it intended that its new

regulations would supersede existing procedural rules that were in

conflict and do away with those that were no longer necessary, such as

those describing the modified procedure. The final rules, however, did

not take steps to remove these outdated regulations. As a result, the

current Commission regulations governing oil pipelines include both

recent provisions adopted or modified pursuant to the Act of 1992 and

conflicting regulations adopted from the ICC which have been superseded

and thus are inconsistent. Consequently, the Commission is proposing to

revise 18 CFR parts 341, 342, 343, and 346 to remove outdated and

conflicting regulations. The Commission is also proposing to revise 18

CFR parts 3, 357, 362, and 385 to conform them to the other proposed

changes.

II. Public Reporting Burden

92 and

conflicting regulations adopted from the ICC which have been superseded

and thus are inconsistent. Consequently, the Commission is proposing to

revise 18 CFR parts 341, 342, 343, and 346 to remove outdated and

conflicting regulations. The Commission is also proposing to revise 18

CFR parts 3, 357, 362, and 385 to conform them to the other proposed

changes.

II. Public Reporting Burden

The Commission believes that there will be no impact on the public

reporting burden from the elimination of outdated and nonessential

regulations, and the related modification of other regulations. Because

the regulations being removed are outdated, they effectively ceased

being a reporting burden years ago. As for the regulations being

modified, they are simply clarifying, not augmenting, reporting

requirements.

III. Discussion

A. Part 341

Part 341 relates to the requirements for preparing, filing, and

withdrawing oil pipeline tariffs. Section 341.6(3) pertains to the

rules for partial adoption by a carrier of another carrier's tariffs.

The Commission proposes to amend this section by removing duplicative

language from the provision which now requires a carrier to state the

effective date of an adoption notice twice in a tariff supplement

required to be filed with the Commission.

Section 341.7 addresses the requirements for concurrences. The

Commission is proposing a modification of this section to specify the

information that should be included in letters of transmittal

accompanying the filing of a tariff publication containing a joint

carrier. Under the proposed revision, letters of transmittal would be

required to include the address, phone number, and contact for each

joint carrier listed in the tariff publication. This is information

that the Commission, as a routine matter, has required carriers to

submit

at should be included in letters of transmittal

accompanying the filing of a tariff publication containing a joint

carrier. Under the proposed revision, letters of transmittal would be

required to include the address, phone number, and contact for each

joint carrier listed in the tariff publication. This is information

that the Commission, as a routine matter, has required carriers to

submit. Including it as part of the regulations will inform carriers

that such information must be included with their filings and make it

unnecessary for carriers to supplement their filings later.

B. Part 342

Part 342 pertains to the methods that may be used to establish

initial rates, or change existing rates. To be more specific,

Sec. 342.3 discusses rate changes under the indexing methodology.

Section 342.3(b)(1) currently provides:

Carriers must specify in their letters of transmittal required

in Sec. 341.2(c) of this chapter the rate schedule to be changed,

the proposed new rate, the prior rate, and the applicable ceiling

level for the movement. No other rate information is required to

accompany the proposed rate change.

Under the proposed revisions in this Notice of Proposed Rulemaking

(NOPR), this section would require carriers filing for rate changes to

also include the prior rate ceiling level, in addition to the other

information specified, in their letters of transmittal. It is the

Commission's position that including the prior ceiling level will

provide necessary information for the calculation of the index ceiling

levels.

Section 342.3(b)(2) addresses the information required to be filed

by carriers with their initial rate changes. It currently reads as

follows:

ceiling level, in addition to the other

information specified, in their letters of transmittal. It is the

Commission's position that including the prior ceiling level will

provide necessary information for the calculation of the index ceiling

levels.

Section 342.3(b)(2) addresses the information required to be filed

by carriers with their initial rate changes. It currently reads as

follows:

On March 31, 1995, or concurrently with its first indexed rate

change filing made on or after January 1, 1995, whichever first

occurs, carriers must file a verified copy of a schedule for

calendar years 1993 and 1994 containing the information required by

page 700 of the 1995 edition of FERC Form No. 6. If actual data are

not available for calendar year 1994 when the rate change filing is

made, the information for calendar year 1994 must be comprised of

the most recently available actual data annualized for the year

1994. A schedule containing the information comprised of actual data

for calendar year 1994 must be filed not later than March 31, 1995.

Thereafter, carriers must file page 700 as a part of their annual

Form No. 6 filing.

This section directs carriers to file schedules containing the

information required by page 700 of the 1995 edition of FERC Form No.

6. on March 31, 1995, or concomitantly with its first indexed rate

change filing made on or after January 1, 1995, whichever occurs first.

Because the one-time need for the requirements of this section has

passed, the Commission proposes to delete it in its entirety.

Section 342.3(d)(3) states that a carrier must compute its ceiling

level each index year without regard to the rates filed pursuant to

this section. In Kaneb and subsequent proceedings,10 the

Commission explained that because there are numerous pipelines that

file rates measured in hundredths of a cent, all ceiling level

calculations for all pipelines should be rounded 11 to the

nearest hundredth of a cent, i.e., to two decimal places

st compute its ceiling

level each index year without regard to the rates filed pursuant to

this section. In Kaneb and subsequent proceedings,10 the

Commission explained that because there are numerous pipelines that

file rates measured in hundredths of a cent, all ceiling level

calculations for all pipelines should be rounded 11 to the

nearest hundredth of a cent, i.e., to two decimal places. As this

explanation applies to all calculations by all carriers under

Sec. 342.3, the Commission proposes to add this explanation to the

regulations to assist carriers in making accurate and complete filings.

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\10\ Kaneb Pipeline Operating Partnership, L.P., 71 FERC para.

61,409 (1995).

\11\ If the third decimal place number is five or more, the

second decimal number should be rounded up; if the third decimal

place number is four or less, the second decimal place number should

be rounded down. Kaneb Pipeline. 71 FERC para. 61,409 (1995), at p.

62,617. n.6.

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C. Part 343

Part 343 discusses procedural matters related to oil pipeline

proceedings under part 342. Section 343.2 describes

the requirements for filing interventions, protests, and complaints.

The Commission is proposing to correct Sec. 343.2(c)(4) so that it

references paragraphs (c)(1), (2), or (3) within the section, rather

than paragraphs (b)(1), (2), or (3) as at present.

D. Part 346

. Part 343

Part 343 discusses procedural matters related to oil pipeline

proceedings under part 342. Section 343.2 describes

the requirements for filing interventions, protests, and complaints.

The Commission is proposing to correct Sec. 343.2(c)(4) so that it

references paragraphs (c)(1), (2), or (3) within the section, rather

than paragraphs (b)(1), (2), or (3) as at present.

D. Part 346

Part 346 sets forth the filing requirements for oil pipelines that

seek to establish cost-of-service rates as permitted under part 342.

Section 346.2(c)(7) states in part: ``If the presently effective rates

are not at the maximum ceiling rate established under Sec. 342.4(a) of

this chapter, then gross revenues must also be computed and set forth

as if the ceiling rates were effective for the 12 month period.'' Under

the proposed revisions in this NOPR, Sec. 346.2(c)(7) would be revised

to correctly reference Sec. 342.3, which is the section that sets forth

the indexing methodology, rather than Sec. 342.4(a), which describes

cost-of-service rates.

E. Part 357

Part 357 concerns the annual special or periodic reports that

carriers subject to Part I of the Interstate Commerce Act are required

to file. Sec. 357.3(a), (b), and (c) discuss the filing requirements

for FERC Form No. 73. In Order No. 561, the Commission stated that it

would be the oil pipeline carriers' responsibility in the future to

perform depreciation studies to establish revised depreciation rates

for oil pipelines. The specific requirements for such studies were

adopted as part 347 of the Commission's regulations in Order No. 571.

Section 347.1(e)(5)(x) provides that a carrier must submit a Service

Life Data Form (FERC Form No. 73) if the proposed depreciation rate

adjustment is based on the remaining physical life of the properties.

The Commission is proposing that Sec. 357.3(a) and (b), which address

who must file FERC Form No. 73 and when the form must be submitted, be

revised to include filings under Sec. 347.1(e)(5)(x)

on 347.1(e)(5)(x) provides that a carrier must submit a Service

Life Data Form (FERC Form No. 73) if the proposed depreciation rate

adjustment is based on the remaining physical life of the properties.

The Commission is proposing that Sec. 357.3(a) and (b), which address

who must file FERC Form No. 73 and when the form must be submitted, be

revised to include filings under Sec. 347.1(e)(5)(x). The Commission

also proposes to revise Sec. 357.3(c) to update its mailing address.

F. Part 362

Part 362 sets forth the various requirements for valuation. Part

362 came into being as a result of Order No. 119,12 which

transferred the ICC's valuation section, in addition to several other

sections pertaining to oil pipelines, from its regulations located at

Title 49 of the Code of Federal Regulations to the Commission's

regulations at Title 18. In Opinion No. 154,13 the

Commission intimated that it was considering abandoning the traditional

ICC valuation formula; however, the Commission ultimately retained the

valuation methodology. To the contrary, in Opinion No. 154-

B,14 the Commission adopted a methodology that is currently

used in many oil pipeline rate cases. This new methodology is

predicated on a trended original cost (TOC) rate base and it does not

follow the ICC's historic valuation rate base. Because Opinion No. 154-

B rejects the valuation rate base methodology and thus eliminates the

need for any valuation of oil pipelines, the filing of valuation

reports as now required by part 362 is no longer necessary. As a

result, the Commission is proposing to remove part 362 in its entirety

from its regulations. Order No. 561 removed parts 360 and 361

pertaining to reporting of data for valuation purposes. The proposal

here would complete the task of removing unnecessary valuation

regulations.

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al authority'' refers to authority or responsibility under

``49 CFR Chapter X.'' As this is a reference to ICC regulations which

have been replaced, the Commission proposes the removal of this

section.

Section 385.1403 discusses the filing requirements for protests to

tariff filings. This section is inconsistent with, and has been

superseded by, Sec. 343.3, which was adopted in Order No. 561.

Accordingly, the Commission proposes to delete Sec. 385.1403 from the

Commission's rules of practice and procedure.

Penultimately, Secs. 385.1405 through 385.1414 set out the modified

procedure rules for oil pipeline proceedings. Specifically, the

Commission can order a proceeding to be heard under a modified

procedure if it appears that substantially all important issues of fact

may be resolved by means of written materials without an oral hearing.

These rules were adopted from the ICC's procedural regulations, 49 CFR

part 1100, pursuant to Order No. 225.15 The regulations

concerning the modified procedure have been superseded by, and are in

conflict with, procedures and filing requirements in parts 342, 343,

346, and 347 adopted in Order Nos. 561, 571, and 572. The Commission

will continue to use paper hearing procedures in individual cases where

warranted. These procedures, however, are not used frequently enough to

warrant continuing to include them in the regulations. Consequently,

the Commission proposes to remove these regulations from the rules of

practice and procedure. Since the Commission is proposing to remove the

modified procedure rules, this NOPR is also proposing to remove

Sec. 385.101(b)(4)(i) because it excepts Secs. 385.1404 through 1414

from Part 385.

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he regulations. Consequently,

the Commission proposes to remove these regulations from the rules of

practice and procedure. Since the Commission is proposing to remove the

modified procedure rules, this NOPR is also proposing to remove

Sec. 385.101(b)(4)(i) because it excepts Secs. 385.1404 through 1414

from Part 385.

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\15\ Revisions of Rules of Practice and Procedure to Expedite

Trial-Type Hearings, Order No. 225, 47 FR 19014 (May 3, 1982), FERC

Stats. & Regs. (Regulations Preambles, 1982-1985) ] 30,358 (January

18, 1983).

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Finally, some of the Commission's regulations still contain

references to the now defunct Oil Pipeline Board. Section 385.102, the

definitions section, contains Oil Pipeline Board references in

paragraphs (a) and (e)(2). Part 3 pertains to organization, operation,

information and requests. Section 385.502(a)(3), rules concerning the

initiation of a hearing, contains an Oil Pipeline Board reference.

Section 385.1902, rules for appealing staff action, also makes

reference to the Oil Pipeline Board. Due to the fact that the

Commission abolished the Oil Pipeline Board in Order No. 561, the

Commission is proposing to revise the foregoing sections by removing

all references to the Oil Pipeline Board.

IV. Environmental Analysis

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.16 The

Commission has categorically excluded certain actions

61, the

Commission is proposing to revise the foregoing sections by removing

all references to the Oil Pipeline Board.

IV. Environmental Analysis

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.16 The

Commission has categorically excluded certain actions

from these requirements as not having a significant effect on the human

environment.17 The action proposed here is procedural in

nature and therefore falls within the categorical exclusions provided

in the Commission's regulations.18 Therefore, neither an

Environmental Impact Statement nor an Environmental Assessment is

necessary and will not be prepared in this rulemaking.

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\16\ Order No. 486, Regulations Implementing the National

Environmental Policy Act, 52 FR 47897 (December 17, 1987), FERC

Stats. & Regs. (Regulations Preambles, 1986-1990) para. 30,783

(1987).

\17\ 18 CFR 380.4 (1998).

\18\ 18 CFR 380.4(a)(2)(ii)(1998).

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V. Regulatory Flexibility Act Certification

The Regulatory Flexibility Act 19 generally requires the

Commission to describe the impact that a proposed rule would have on

small entities or to certify that the rule will not have a significant

economic impact on a substantial number of small entities. The

Commission certifies that promulgating this rule does not represent a

major federal action having a significant economic impact on a

substantial number of small entities. Therefore, no regulatory

flexibility analysis is required.

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\19\ 5 U.S.C. 601-612 (1988).

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VI. Information Collection Statement

not represent a

major federal action having a significant economic impact on a

substantial number of small entities. Therefore, no regulatory

flexibility analysis is required.

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\19\ 5 U.S.C. 601-612 (1988).

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VI. Information Collection Statement

Office of Management and Budget (OMB) regulations 20

require that OMB approve certain information collection requirements

imposed by agency rule. Since this rule does not impose new regulations

and has no impact on current information collections, there is no need

to obtain OMB approval as to the deletion and modification of these

regulations. Nevertheless, the Commission is submitting a copy of the

proposed rule to the OMB for informational purposes. Interested persons

may obtain information on these reporting requirements by contacting

the Federal Energy Regulatory Commission, 888 First Street, NE,

Washington, DC 20426 (Attention Michael Miller, Office of the Chief

Information Officer, (202) 208-1415). Comments on the requirements of

this rule can be sent to the Office of Information and Regulatory

Affairs of OMB (Attention: Desk Officer for Federal Energy Regulatory

Commission), 725 17th Street, NW, Washington, DC 20503, Phone: (202)

395-3087 Fax: (202) 395-5167.

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\20\ 5 CFR part 1320 (1998).

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VII. Comment Procedures

ation and Regulatory

Affairs of OMB (Attention: Desk Officer for Federal Energy Regulatory

Commission), 725 17th Street, NW, Washington, DC 20503, Phone: (202)

395-3087 Fax: (202) 395-5167.

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\20\ 5 CFR part 1320 (1998).

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VII. Comment Procedures

Copies of this notice of proposed rulemaking can be obtained from

the Public Reference and Files Maintenance Branch, Room 2-A, 888 First

Street, NE, Washington, DC 20426. Any person desiring to file comments

should submit an original and fourteen (14) copies of such comments to

the Federal Energy Regulatory Commission, 888 First Street, NE,

Washington, DC 20426, not later than November 25, 1998.

All written comments will be placed in the Commission's public

files and will be available for public inspection in the Commission's

Public Reference Room at 888 First Street, NE, Washington, DC 20426,

during regular business hours.

List of Subjects

18 CFR Part 3

Organization and functions (Government agencies).

18 CFR Part 341

Maritime carriers, Pipelines, Reporting and recordkeeping

requirements.

18 CFR Part 342

Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 343

Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 346

Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 357

Pipelines, Reporting and recordkeeping requirements, Uniform System

of Accounts.

18 CFR Part 362

Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 385

Administrative practice and procedure, Electric power, Penalties,

Pipelines, Reporting and recordkeeping requirements.

By direction of the Commission.

David P. Boergers,

Secretary.

In consideration of the foregoing, the Commission proposes to amend

parts 3, 341, 342, 343, 346, 357, 362, and 385, Chapter I, Title 18,

Code of Federal Regulations, as set forth below.

ements.

18 CFR Part 385

Administrative practice and procedure, Electric power, Penalties,

Pipelines, Reporting and recordkeeping requirements.

By direction of the Commission.

David P. Boergers,

Secretary.

In consideration of the foregoing, the Commission proposes to amend

parts 3, 341, 342, 343, 346, 357, 362, and 385, Chapter I, Title 18,

Code of Federal Regulations, as set forth below.

PART 3--ORGANIZATION; OPERATION; INFORMATION AND REQUESTS

1. The authority citation for part 3 continues to read as follows:

Authority: Department of Energy Organization Act, 42 U.S.C.

7101-7352 (1982); E.O. 12009, 3 CFR 1978 Comp., p. 142 (1978);

Administrative Procedure Act, 5 U.S.C. 551-557 (1982); Natural Gas

Act, 15 U.S.C. 717-717z (1982); Federal Power Act, 16 U.S.C. 791a-

828c (1982); Natural Gas Policy Act, 15 U.S.C. 3301-3432 (1982);

Public Utility Regulatory Policies Act, 16 U.S.C. 2601-2645 (1982);

Interstate Commerce Act, 49 U.S.C. 1-27 (1976); Freedom of

Information Act, 5 U.S.C. 552 (1982) as amended by Freedom of

Information Reform Act of 1986.

Sec. 3.4 [Removed and Reserved]

2. Section 3.4 is removed and reserved.

PART 341--OIL PIPELINE TARIFFS: OIL PIPELINE COMPANIES SUBJECT TO

SECTION 6 OF THE INTERSTATE COMMERCE ACT

3. The authority citation for Part 341 continues to read as

follows:

Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 1-27.

4. Section 341.6 is amended by revising paragraph (d)(3) to read as

follows:

Sec. 341.6 Adoption Rule.

* * * * *

Reserved]

2. Section 3.4 is removed and reserved.

PART 341--OIL PIPELINE TARIFFS: OIL PIPELINE COMPANIES SUBJECT TO

SECTION 6 OF THE INTERSTATE COMMERCE ACT

3. The authority citation for Part 341 continues to read as

follows:

Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 1-27.

4. Section 341.6 is amended by revising paragraph (d)(3) to read as

follows:

Sec. 341.6 Adoption Rule.

* * * * *

(d) * * *

(3) The former owner must immediately file a consecutively numbered

supplement to each of its tariffs covered by the adoption notice,

reading as follows:

Effective [date of adoption notice] this tariff became the

tariff of [legal name of adopting carrier] for transportation

movements [identify origin and destination points], as per its

adoption notice FERC No. [number].

* * * * *

5. Section 341.7 is revised to read as follows:

Sec. 341.7 Concurrences.

Concurrences must be maintained at carriers' offices and produced

upon request. Cancellations or changes to concurrences affecting FERC

Tariffs must be shown in those tariffs. Carriers must provide to the

Commission, in the letter of transmittal accompanying the filing of a

tariff publication containing a joint carrier, the address, phone

number, and a contact for each joint carrier listed in the tariff

publication.

PART 342--OIL PIPELINE RATE METHODOLOGIES AND PROCEDURES

6. The authority citation for part 342 continues to read as

follows:

Authority: 5 U.S.C. 571-583; 42 U.S.C. 7101-7532; 49 U.S.C.

60502; 49 App. U.S.C. 1-85.

7. Section 342.3 is amended by removing paragraph (b)(2),

redesignating

paragraph (b)(1) as paragraph (b), and revising redesignated paragraph

(b) and paragraph (d)(3) to read as follows:

Sec. 342.3 Indexing.

* * * * *

PROCEDURES

6. The authority citation for part 342 continues to read as

follows:

Authority: 5 U.S.C. 571-583; 42 U.S.C. 7101-7532; 49 U.S.C.

60502; 49 App. U.S.C. 1-85.

7. Section 342.3 is amended by removing paragraph (b)(2),

redesignating

paragraph (b)(1) as paragraph (b), and revising redesignated paragraph

(b) and paragraph (d)(3) to read as follows:

Sec. 342.3 Indexing.

* * * * *

(b) Information required to be filed with rate changes. The carrier

must comply with part 341 of this chapter. Carriers must specify in

their letters of transmittal required in Sec. 341.2(c) of this chapter

the rate schedule to be changed, the proposed new rate, the prior rate,

the prior ceiling level, and the applicable ceiling level for the

movement. No other rate information is required to accompany the

proposed rate change.

(c) * * *

(d) * * *

(3) A carrier must compute the ceiling level each index year

without regard to the actual rates filed pursuant to this section. All

carriers must round their ceiling levels each index year to the nearest

hundredth of a cent.

* * * * *

PART 343--PROCEDURAL RULES APPLICABLE TO OIL PIPELINE PROCEEDINGS

8. The authority citation for part 343 continues to read as

follows:

Authority: 5 U.S.C. 571-583; 42 U.S.C. 7101-7352; 49 U.S.C.

60502; 49 App. U.S.C. 1-85.

9. Section 343.2 is amended by revising paragraph (c)(4) to read as

follows:

Sec. 343.2 Requirements for filing interventions, protests and

complaints.

* * * * *

(c) * * *

(4) A protest or complaint that does not meet the requirements of

paragraphs (c)(1), (c)(2), or (c)(3) of this section, whichever is

applicable, will be dismissed.

PART 346--OIL PIPELINE COST-OF-SERVICE FILING REQUIREMENTS

10. The authority citation for part 346 continues to read as

follows:

Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C.

1-85.

11. Section 346.2 is amended by revising paragraph (c)(7) to read

as follows:

Sec. 346.2 Material in support of initial rates or change in rates.

* * * * *

s

applicable, will be dismissed.

PART 346--OIL PIPELINE COST-OF-SERVICE FILING REQUIREMENTS

10. The authority citation for part 346 continues to read as

follows:

Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C.

1-85.

11. Section 346.2 is amended by revising paragraph (c)(7) to read

as follows:

Sec. 346.2 Material in support of initial rates or change in rates.

* * * * *

(c) * * *

(7) Statement G--revenues. This statement must set forth the gross

revenues for the actual 12 months of experience as computed under both

the presently effective rates and the proposed rates. If the presently

effective rates are not at the maximum ceiling rate established under

Sec. 342.3 of this chapter, then gross revenues must also be computed

and set forth as if the ceiling rates were effective for the 12 month

period.

PART 357--ANNUAL SPECIAL OR PERIODIC REPORTS: CARRIERS SUBJECT TO

PART I OF THE INTERSTATE COMMERCE ACT

12. The authority citation for part 357 continues to read as

follows:

Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C.

1-85.

13. Section 357.3 is revised to read as follows:

Sec. 357.3 FERC Form No. 73, oil pipeline data for depreciation

analysis.

(a) Who must file. Any oil pipeline company requesting new or

changed depreciation rates pursuant to part 347 of this chapter if the

proposed depreciation rates are based on the remaining physical life of

the properties or if directed by the Commission to file service life

data during an investigation of its book depreciation rates.

(b) When to submit. Service life data is reported to the Commission

by an oil pipeline company, as necessary, concurrently with a filing

made pursuant to part 347 of this chapter and as directed during a

depreciation rate investigation.

remaining physical life of

the properties or if directed by the Commission to file service life

data during an investigation of its book depreciation rates.

(b) When to submit. Service life data is reported to the Commission

by an oil pipeline company, as necessary, concurrently with a filing

made pursuant to part 347 of this chapter and as directed during a

depreciation rate investigation.

(c) What to submit. The format and data which must be submitted are

prescribed in FERC Form No. 73, Oil Pipeline Data for Depreciation

Analysis, available for review at the Commission's Public Reference

Section, Room 2A, 888 First Street, NE, Washington, D.C. 20426.

PART 362--[REMOVED AND RESERVED]

14. Part 362 is removed in its entirety and reserved.

PART 385--RULES OF PRACTICE AND PROCEDURE

15. The authority citation for part 385 continues to read as

follows:

Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16

U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42 U.S.C. 7101-7352; 49

U.S.C. 60502; 49 App. U.S.C. 1-85.

Sec. 385.101 [Amended]

16. Section 385.101 is amended by removing paragraphs (b)(3) and

(b)(4)(i), and redesignating paragraph (b)(4)(ii) as paragraph (b)(3).

17. Section 385.102 is amended by revising paragraphs (a) and

(e)(2) to read as follows:

Sec. 385.102 Definitions (Rule 102).

(a) Decisional authority means the Commission or Commission

employee that at the time for decision on a question, has authority or

responsibility under this chapter to decide that particular question.

* * * * *

(e) * * *

(2) With respect to any proceeding not set for hearing under

subpart E of this part, any employee designated by rule or order to

conduct the proceeding.

* * * * *

18. Section 385.502 is amended by removing paragraph (a)(3) and

revising paragraph (a)(1) to read as follows:

Sec. 385.502 Initiation of hearing (Rule 502).

nder this chapter to decide that particular question.

* * * * *

(e) * * *

(2) With respect to any proceeding not set for hearing under

subpart E of this part, any employee designated by rule or order to

conduct the proceeding.

* * * * *

18. Section 385.502 is amended by removing paragraph (a)(3) and

revising paragraph (a)(1) to read as follows:

Sec. 385.502 Initiation of hearing (Rule 502).

(a) * * *

(1) Order of the Commission; or

* * * * *

19. Sections 385.1403 and 385.1405 through 385.1414 are removed and

sections 385.1404 and 385.1415 are redesignated paragraphs 385.1403 and

385.1404.

20. Section 385.1902 is amended by removing paragraph (b),

redesignating paragraph (c) as paragraph (b), and revising paragraph

(a) to read as follows:

Sec. 385.1902 Appeals from action of staff (Rule 1902).

(a) Any staff action (other than a decision or ruling of presiding

officer, as defined in Rule 102(e)(1), made in a proceeding set for

hearing under subpart E of this part) taken pursuant to authority

delegated to the staff by the Commission is a final agency action that

is subject to a request for rehearing under Rule 713 (request for

rehearing).

* * * * *

[FR Doc. 98-28545 Filed 10-23-98; 8:45 am]

BILLING CODE 6717-01-P