Policy Statement-New Energy Information Administration Policy for the Unscheduled Release of Revisions to the Weekly Natural Gas Storage Report, 21406-21408 [05-8298]

Agencies

• DEPARTMENT OF ENERGY
• Energy Information Administration

[Federal Register Volume 70, Number 79 (Tuesday, April 26, 2005)]
[Notices]
[Pages 21406-21408]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-8298]



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DEPARTMENT OF ENERGY

Energy Information Administration


Policy Statement--New Energy Information Administration Policy 
for the Unscheduled Release of Revisions to the Weekly Natural Gas 
Storage Report

AGENCY: Energy Information Administration (EIA), Department of Energy 
(DOE).

ACTION: Policy statement; new Energy Information Administration policy 
for the unscheduled release of revisions to the Weekly Natural Gas 
Storage Report.

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SUMMARY: The EIA has a new policy regarding the unscheduled release of 
revisions to weekly estimates of working gas volumes held in 
underground storage facilities at the national and regional levels 
disseminated in EIA's Weekly Natural Gas Storage Report (WNGSR). Under 
the new policy, the unscheduled release of revisions shall be 
disseminated in a special release of the WNGSR when the effect of 
reported changes is at least 10 billion cubic feet (Bcf) at either a 
regional or national level. The unscheduled release of revisions shall 
be disseminated on a Federal workday between 2 and 2:10 p.m. (Eastern 
Time) following public notification between 1 and 1:10 p.m. of the same 
day. Public notification will include, at a minimum, the following: A 
notice on EIA's Web site, e-mails to selected media, and a general e-
mail notice sent to users of WNGSR data who have signed onto a free 
service available on EIA's Web site. The unscheduled release of 
revisions for this policy does not include revised estimates resulting 
from changes in the survey methodology or estimation parameters, which 
are scheduled and announced in advance; or revised estimates resulting 
from reclassifications of natural gas between working gas and base gas 
by natural gas storage companies, which are incorporated into the 
estimates during the next regularly scheduled WNGSR release.

DATES: This policy becomes effective with the WNGSR released on May 19, 
2005, containing data as of May 13, 2005.

ADDRESSES: Requests for additional information or questions about this 
policy should be directed to William Trapmann. Mr. Trapmann may be 
contacted by telephone (202-586-6408), FAX (202-586-4220), or e-mail 
(William.Trapmann@eia.doe.gov). These methods are recommended to 
expedite contact. His mailing address is Energy Information 
Administration, EI-44, Forrestal Building, U.S. Department of Energy, 
Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: The WNGSR is available on EIA's 
Internet site at https://tonto.eia.doe.gov/oog/info/ngs/ngs.html. The 
survey Form EIA-912 and instructions used to collect information for 
the WNGSR are available at https://www.eia.doe.gov/oil_gas/natural_
gas/survey_forms/nat_survey_forms.html. The WNGSR release schedule 
is available at https://tonto.eia.doe.gov/oog/info/ngs/schedule.html.

SUPPLEMENTARY INFORMATION:

I. Background
II. Discussion of Comments
III. Current Actions

I. Background

    The Federal Energy Administration Act of 1974 (Pub. L. 93-275, 15 
U.S.C. 761 et seq.) and the DOE Organization Act (Pub. L. 95-91, 42 
U.S.C. 7101 et seq.) require the EIA to carry out a centralized, 
comprehensive, and unified energy information program. This program 
collects, evaluates, assembles, analyzes, and disseminates information 
on energy resource reserves, production, demand, technology, and 
related economic and statistical information. This information is used 
to assess the adequacy of energy resources to meet near and longer term 
domestic demands.
    The Weekly Natural Gas Storage Report (WNGSR) has been issued by 
EIA since May 9, 2002, providing weekly estimates of working gas 
volumes held in underground storage facilities at the national and 
regional levels. WNGSR users include policymakers, commodity market 
analysts, and industry experts. EIA uses the data to prepare analytical 
products assessing storage operations and the impact on supplies 
available, and to analyze relationships between demand, heating-degree-
days, and inventory levels.
    The WNGSR is based on information collected on Form EIA-912, 
``Weekly Underground Natural Gas Storage Report.'' Form EIA-912 
respondents provide estimates for working gas in storage as of 9 a.m. 
Friday each week. The deadline for submitting reports to the EIA is 5 
p.m. (Eastern Time) the following Monday, except when Monday is a 
Federal holiday. In that case, the submission deadline is 5 p.m. on 
Tuesday. The WNGSR is released on Thursday between 10:30 and 10:40 a.m. 
(Eastern Time) on EIA's Web site (https://tonto.eia.doe.gov/oog/info/
ngs/ngs.html), except when Thursday is a Federal holiday. A listing of 
changes to this general schedule is maintained on the EIA Web site at 
https://tonto.eia.doe.gov/oog/info/ngs/schedule.html.
    The EIA provides the public and other Federal agencies with 
opportunities to comment on collections of energy information conducted 
by EIA. As appropriate, EIA also requests comments on important issues 
relevant to EIA's dissemination of energy information. Comments 
received help the EIA when preparing information collections and 
information products necessary to EIA's mission.
    On January 7, 2005, EIA issued a Federal Register notice (70 FR 
1426-28) requesting public comments on proposed changes to the current 
policy for handling revisions to information disseminated in the WNGSR. 
In that notice, EIA discussed the reasons for WNGSR revisions as well 
as three potential proposed policy options for the unscheduled release 
of revisions: (1) The existing policy of No Unscheduled Release, in 
which the revised information is disseminated in the next scheduled 
WNGSR; (2) Fixed Timing, in which revisions of sufficient magnitude are 
released at a fixed time and day prior to the next regularly scheduled 
release of the WNGSR; and (3) Variable Timing, in which revisions of 
sufficient magnitude may be disseminated 2 hours after EIA issues 
notification.

II. Discussion of Comments

    In response to the Federal Register notice requesting comments on 
the proposed WNGSR revision policy, EIA received 26 sets of comments. 
Most of the comments were from energy firms and trade groups.
    The comments tended to focus on the following general issues for 
which EIA specifically requested a response:
     Whether EIA should release revisions to the Weekly Natural 
Gas Storage Report outside the regular established weekly schedule, and 
if so, whether that should occur on a fixed or variable schedule.
     The magnitude of the threshold that may trigger an 
unscheduled release of revisions.
     The timing and pre-notification guidelines for the 
unscheduled release of revisions, including the length of time between 
notification and subsequent data release.
     If prior notification is used, whether a notification 
approach using a posting on the EIA Web site and e-mail is sufficient.
     Whether the hours for an unscheduled release should be 
limited to Federal work hours or the operating hours of selected energy 
trading markets.

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    As to whether EIA should conduct the unscheduled release of 
revisions to the Weekly Natural Gas Storage Report, two respondents 
indicated that EIA should continue the existing policy of issuing 
revisions only on the official schedule, while twenty-one indicated a 
preference that revisions be made available prior to the next scheduled 
release, and the three remaining respondents did not express a 
preference. The respondents who preferred no change in the current 
policy felt that it was adequate. Most of the respondents who were in 
favor of changing the current policy to permit unscheduled releases 
outside the regular weekly cycle argued that providing the market with 
the revised data more promptly would ensure that the storage data being 
used by market participants were as accurate and timely as possible.
    With regard to the appropriateness of the suggested threshold of 15 
Bcf to trigger an unscheduled release of revisions, responses varied 
considerably. Fifteen respondents expressed a preference for thresholds 
ranging up to 15 Bcf. Of those fifteen, two respondents favored 
thresholds below 7 Bcf, six favored a 7 Bcf threshold, one suggested a 
range of 7 to 10 Bcf, three favored 10 Bcf, and three favored a 15 Bcf 
threshold. Another respondent suggested the threshold should be a 
percentage of current working gas stocks, although a percentage was not 
specified. The remaining ten respondents did not provide an opinion 
regarding a threshold that would trigger an unscheduled release.
    On the timing and pre-notification of the unscheduled release of 
revisions, three respondents indicated that EIA should not provide 
early notification, fourteen indicated that pre-notification 2 hours in 
advance was appropriate, one respondent suggested an overnight delay, 
and the remaining eight respondents did not state a preference. 
Respondents opposed to a delay between the pre-notification and the 
unscheduled release of a revision expressed a preference to have the 
information as soon as possible. Respondents in favor of pre-
notification asserted that the early notice would give market 
participants time to prepare for the new information and help ensure 
that they would receive the information simultaneously. With respect to 
how to issue a pre-notification of an impending unscheduled release, 
all twelve respondents expressing a preference indicated that some 
combination of an e-mail notice and Web site posting would be 
sufficient, with one respondent suggesting a press release also.
    In reference to the potential hours during which the unscheduled 
release of revisions may occur, seven respondents indicated that such 
releases should occur anytime, five expressed a preference for major 
energy market hours, and three suggested that Federal government work 
hours would be appropriate. Eleven respondents did not express an 
opinion on this issue. Respondents indicating a preference for a 
broader release horizon argued that the information should be made 
available as soon as possible. However, it was not clear whether these 
respondents literally meant anytime or implicitly preferred Federal 
work hours. Those preferring unscheduled releases during the business 
hours of the major energy markets indicated that a release during that 
period would be more equitable for all market participants.

EIA's Response to Comments Received

    The comments on the issue of a policy for the unscheduled release 
of WNGSR revisions generally focused on the benefit of the public 
having the most accurate data as soon it can be made available as well 
as reducing uncertainty for market participants. While the benefits of 
providing the unscheduled release of revisions are not empirically 
measurable, commenters generally agreed that more flexibility in 
releasing this information will be an improvement to EIA's current 
policy of no unscheduled release of revisions, despite the likely 
resulting costs of monitoring EIA for the possibility of an unscheduled 
release.
    There are a number of factors that were considered in developing a 
more flexible unscheduled release policy. First, EIA's goal is to 
provide all market participants fair opportunity to access new 
information at the same time to avoid bestowing an unfair advantage on 
a subset of market participants. The unscheduled release of revisions 
makes ensuring fairness to all market participants problematic because 
market participants may not learn of a revision at the same time. While 
many respondents asserted that a variable release policy would reduce 
market uncertainty, the possibility of an unscheduled release occurring 
at any time during the day could increase market uncertainty more often 
than not, as rumors about revisions may occur more frequently than 
revisions themselves. A revision policy in which revisions may occur on 
any Federal workday at a specified fixed time balances the public's 
desire for up-to-date, accurate information with managing the 
uncertainty and disruption that may be associated with on-going 
updates.
    EIA is establishing a policy with a time for the unscheduled 
release of revisions between 2 and 2:10 p.m. on a Federal workday in 
order to reduce uncertainty in the market and the cost of monitoring 
EIA's Internet site continually for revision announcements. Further, 
the only time that EIA will issue a notification of an upcoming release 
of revisions will be between 1 p.m. and 1:10 p.m. during a Federal 
workday.
    An approximate 1 hour delay between notification and release of a 
revision will provide market participants adequate opportunity to 
prepare for the new data and will not unduly delay the release of the 
information to the public. The announcement of a pending release will 
occur in multiple ways including through a Web site announcement, e-
mails to selected media, and a general e-mail notice sent to users of 
WNGSR data who have signed onto a free service available on EIA's Web 
site. Users should note that timely delivery of the notification 
through e-mail depends on a number of factors, including their Internet 
service providers and Internet traffic, and in some cases a 
notification may not be received before the release of the revised 
WNGSR. However, reliance on multiple forms of communication will work 
to minimize difficulties in informing the public.
    The new policy reflects EIA's concerns regarding its ability to 
execute the unscheduled releases effectively. While considering 
implementation plans for a more flexible policy, EIA determined that 
market participants with automated Web browser programs (also called 
``robots'') may continually monitor EIA's Web site for an announcement. 
The system congestion caused by users in short episodes, such as occurs 
each Thursday at 10:30 a.m. for the scheduled release of the WNGSR, has 
been noticeable to EIA Web site managers, but has not caused 
significant problems to date. If EIA had a policy of releasing an 
unscheduled WNGSR revision at any time during the day, users might 
impose a similar load on EIA's system on a continual basis. The 
sustained high level of activity on EIA's Web site could overwhelm the 
system and seriously degrade system performance and responsiveness for 
all users. This could prevent EIA from successfully executing a release 
and even jeopardize EIA's overall Internet operations. By limiting 
customer interest to brief periods around 1-1:10 p.m. for notification, 
and 2-2:10 p.m. for release of an unscheduled release,

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the threat to EIA's Internet capabilities is reduced.
    This approach to timing of the announcement of an impending 
unscheduled release of a WNGSR revision will allow for revisions to be 
released as early as the same day the need for a revision is identified 
including situations in which the need for a revision is identified 
shortly after the WNGSR is released. It achieves this result in a 
manner that should not create unnecessary costs for users with limited 
resources and helps to avoid potential difficulties that might 
jeopardize the operational integrity of EIA's Internet site.
    Lastly, each new announcement that EIA makes about the natural gas 
storage data seems to have a significant influence on market trading. 
Announcement of a pending unscheduled release likely will be 
accompanied by price volatility or a virtual suspension of trading, 
either of which constitutes a disruption of normal trading. As a 
result, it seems prudent for EIA to adopt a threshold for an 
unscheduled release of a revision higher than the current 7 Bcf 
threshold for a regularly scheduled revision to the WNGSR. EIA selected 
a threshold of 10 Bcf. Using this threshold, EIA would have had one 
unscheduled release of a WNGSR revision between January 1, 2003, and 
March 31, 2005.
    This new policy will become effective with the WNGSR released on 
May 19, 2005, containing data as of May 13, 2005. This date was chosen 
to ensure adequate time for developing and testing unscheduled release 
procedures, testing revised report formats, and working with WNGSR 
customers on the new formats. A test site for the modified report 
formats (which will be redesigned to accommodate revision markers) will 
be provided in early May. Information about the test site and changes 
will be provided on the WNGSR Web site in the first week of May.

III. Current Actions

    EIA is establishing a new policy for the unscheduled release of 
revisions to certain information disseminated in the WNGSR. In 
establishing this new policy, EIA recognizes the importance of 
timeliness in providing revised storage estimates. After considering 
all factors, EIA decided to establish a policy allowing for the 
unscheduled release of WNGSR revisions on any Federal workday at a set 
time between 2 and 2:10 p.m. after public notification between 1 and 
1:10 p.m. This timetable would allow for a same-day correction to a 
morning WNGSR release in the event that a significant error in the data 
submitted by respondents or in EIA's processing of that data is 
discovered shortly after it is issued.
    This new policy will not apply to scheduled releases such as 
changes in methodology or estimation parameters, which are scheduled 
and announced in advance. It also will not apply to revised estimates 
resulting from respondents reclassifying gas already in underground 
storage facilities (between working gas and base gas inventories). 
Revisions based on reclassifications of gas will only be reported in 
the next regularly-scheduled release of the WNGSR. The timing of a 
reclassification is often discretionary for the respondent. Even when 
it is not (e.g., it becomes final on the basis of regulatory agency 
action), the respondent has unique knowledge related to a potential 
revision. In order to limit the possible disruption to markets caused 
by the reclassification of previous working gas inventories, 
reclassifications will be included in the estimate for the next 
regularly scheduled WNGSR release, no matter when they are officially 
accounted for by the respondent. Reclassifications exceeding a 7 Bcf 
threshold will be noted in the WNGSR text, although as adjustments to 
the current week data, they are not actually revisions. As a result, 
reclassifications would not lead to mid-week revisions which would be 
known in advance by only one respondent. All revisions that continue to 
be disseminated in regularly-scheduled releases of the WNGSR will be 
handled according to the revision policy established in a prior notice 
published in the Federal Register on November 12, 2002 (67 FR 68581-
68583). That policy also appears in the WNGSR Methodology documentation 
available at https://tonto.eia.doe.gov/oog/info/ngs/
methodology.html#revisions.

EIA WNGSR Policy for Unscheduled Release of Revisions

    The unscheduled release of revisions to weekly estimates of working 
gas held in underground storage caused by data changes or corrections 
when the cumulative effect of these changes is at least 10 Bcf shall be 
disseminated on a Federal workday between 2 p.m. and 2:10 p.m. (Eastern 
Time) following notice of the pending release to the public between 1 
p.m. and 1:10 p.m. (Eastern Time). If a revision is made, changes to 
all affected regions shall be recorded in the 2-2:10 p.m. release. 
Public notification will occur in a number of ways including a Web site 
notice of the impending release of revised data that will replace the 
current Weekly Natural Gas Storage Report (WNGSR), e-mail notification 
to selected media, and an e-mail notice that will be sent to all users 
of WNGSR data who have signed onto a free distribution service. There 
are two exceptions to the release of revised WNGSR data on an 
unscheduled basis. First, this unscheduled release policy will not 
apply to data changes resulting from changes in the methodology or 
estimation parameters. Second, revised estimates due to respondents 
reclassifying gas (between working gas and base gas inventories) will 
be reported only in regularly-scheduled releases of the WNGSR.
    EIA reserves the right to revisit or amend this policy at any time 
at the discretion of the Administrator. However, EIA will provide prior 
notification in the Weekly Natural Gas Storage Report or the Federal 
Register before implementing any changes.

    Statutory Authority: Section 52 of the Federal Energy 
Administration Act (Pub. L. 93-275, 15 U.S.C. 790a).

    Issued in Washington, DC, April 20, 2005.
Guy F. Caruso,
Administrator, Energy Information Administration.
[FR Doc. 05-8298 Filed 4-25-05; 8:45 am]
BILLING CODE 6450-01-P