Revisions to the Blanket Certificate Regulations and Clarification Regarding Rates, 54818-54820 [E7-18904]

Download as PDF 54818 Federal Register / Vol. 72, No. 187 / Thursday, September 27, 2007 / Rules and Regulations downward until the operator reverses the door a minimum of 2 inches (50.8 mm). The test is to be performed as described in § 1211.7(b)(3). DEPARTMENT OF ENERGY § 1211.14 18 CFR Part 157 Federal Energy Regulatory Commission [Amended] 5. Section 1211.14 is amended by revising paragraph (b)(2) to read as follows: (a) * * * (b) Specific required instructions. (1) * * * (2) The User Instructions shall include the following instructions: I [Docket No. RM06–7–002; Order No. 686– B] Revisions to the Blanket Certificate Regulations and Clarification Regarding Rates Issued September 20, 2007. Federal Energy Regulatory Commission, Department of Energy. AGENCY: Important Safety Instructions mstockstill on PROD1PC66 with RULES Warning—To reduce the risk of severe injury or death: 1. Read and follow all instructions. 2. Never let children operate, or play with door controls. Keep the remote control away from children. 3. Always keep the moving door in sight and away from people and objects until it is completely closed. No one should cross the path of the moving door. 4. NEVER GO UNDER A STOPPED PARTIALLY OPEN DOOR. 5. Test door opener monthly. The garage door MUST reverse on contact with a 11⁄2 inch object (or a 2 by 4 board laid flat) on the floor. After adjusting either the force or the limit of travel, retest the door opener. Failure to adjust the opener properly may cause severe injury or death. 6. For products requiring an emergency release, if possible, use the emergency release only when the door is closed. Use caution when using this release with the door open. Weak or broken springs may allow the door to fall rapidly, causing injury or death. 7. Keep garage door properly balanced. See owner’s manual. An improperly balanced door could cause severe injury or death. Have a qualified service person make repairs to cables, spring assemblies and other hardware. 8. Save these Instructions. Dated: September 18, 2007. Todd A. Stevenson, Secretary, Consumer Product Safety Commission. [FR Doc. E7–18846 Filed 9–26–07; 8:45 am] BILLING CODE 6335–01–P Revisions to the Blanket Certificate Regulations and Clarification Regarding Rates; Order on Rehearing ACTION: Final rule; order on rehearing. SUMMARY: On June 22, 2007, the Commission issued an Order on Rehearing and Clarification in response to motions seeking rehearing and clarification of an October 19, 2006 Final Rule. The Final Rule expanded the scope and scale of activities that may be undertaken pursuant to blanket certificate authority and clarified Commission rate policy. The revised regulations allow interstate natural gas pipelines to employ the streamlined blanket certificate procedures for larger projects and for a wider variety of projects, thereby increasing efficiencies, and decreasing the time and cost associated with the construction and maintenance of the nation’s natural gas infrastructure. This order grants a request for rehearing of the June 22, 2007 Order. Effective Date: This final rule will become effective October 29, 2007. DATES: FOR FURTHER INFORMATION CONTACT: Gordon Wagner, Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, gordon.wagner@ferc.gov, (202) 502– 8947. Michael McGehee, Office of Energy Projects, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, michael.mcgehee@ferc.gov, (202) 502– 8962. Lonnie Lister, Office of Energy Projects, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, lonnie.lister@ferc.gov, 202–502–8587. SUPPLEMENTARY INFORMATION: Before Commissioners: Joseph T. Kelliher, Chairman; Suedeen G. Kelly, Marc Spitzer, Philip D. Moeller, and Jon Wellinghoff. VerDate Aug<31>2005 18:20 Sep 26, 2007 Jkt 211001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 I. Introduction 1. On October 19, 2006, the Federal Energy Regulatory Commission (Commission) issued a Final Rule in Order No. 686 1 amending Part 157, Subpart F, of its regulations to expand the scope and scale of activities that may be undertaken pursuant to blanket certificate authority by (1) Broadening the types of natural gas projects permitted under blanket certificate authority to include certain mainline, storage, and liquefied natural gas (LNG) and synthetic gas pipeline facilities, and (2) increasing the blanket certificate project cost limits from $8,200,000 to $9,600,000 for automatic authorization projects and from $22,700,000 to $27,400,000 for prior notice projects.2 In addition, Order No. 686 clarified that a natural gas company is not necessarily engaged in an unduly discriminatory practice if it charges different customers different rates for the same service when those customers commit to service on different dates. The revised blanket certificate regulations are intended to allow interstate natural gas companies to employ the streamlined blanket certificate procedures for larger projects and additional types of projects, thereby increasing efficiencies and decreasing the time and cost associated with the construction and maintenance of the nation’s natural gas infrastructure. On June 22, 2007, the Commission issued an order in response to motions seeking rehearing and clarification of the October 2006 Final Rule.3 In this order, for the reasons discussed below, the Commission grants a request for rehearing of the June 2007 Order. II. Request for Rehearing 2. New § 157.210 permits companies to rely on blanket certificate authority to ‘‘acquire, construct, modify, replace, and operate natural gas mainline facilities, including compression and 1 Order No. 686, Revisions to the Blanket Certificate Regulations and Clarification Regarding Rates, 71 FR 63680 (October 31, 2006), FERC Stats & Regs ¶ 31,231 (2006). This rulemaking proceeding was initiated in response to a petition submitted under 18 CFR 385.207(a) (2007) of the Commission’s regulations by the Interstate Natural Gas Association of America jointly with the Natural Gas Supply Association. 2 These cost limits now stand at $9,900,000 for an automatic authorization project and $28,200,000 for a prior notice project. See Natural Gas Pipelines; Project Cost and Annual Limits, 72 FR 5614 (Feb. 7, 2007). 3 Order No. 686–A, Order on Rehearing and Clarification, 72 FR 37431 (July 10, 2007), FERC Statutes and Regulations ¶ 31,249 (2007) (June 2007 Order). E:\FR\FM\27SER1.SGM 27SER1 Federal Register / Vol. 72, No. 187 / Thursday, September 27, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES looping.’’ Revised § 157.216(b)(2) provides for the abandonment of such facilities. The Interstate Natural Gas Association of America (INGAA) asked the Commission to clarify whether the Final Rule’s revised § 157.216(b)(2) abandonment provisions would apply exclusively to mainline facilities put in place under the new § 157.210 or would also apply to mainline facilities already in place. 3. In its June 2007 Order, the Commission stated that facilities which were constructed under case-specific certificate authorization, but which would have met the criteria for construction under the current blanket certificate program, may be abandoned pursuant to the provisions § 157.216(b). The Commission stated that in considering whether existing facilities would have met the criteria for blanket certificate authorization, ‘‘the facilities must have been installed subsequent to the Commission’s implementation of the blanket certificate program and the facilities’ original cost must have met the § 157.208 project cost cap in effect at the time of their construction.’’ 4. INGAA requests rehearing of the June 2007 Order to ask the Commission to remove this qualification because it precludes § 157.216 abandonment of facilities put in place prior to 1982, i.e., the year the blanket certificate program was initiated. INGAA notes that the Commission did not impose the qualification that the project cost not exceed the blanket certificate cost cap in effect at the time of construction with respect to its 1999 expansion of the blanket certificate abandonment provisions to cover gas supply facilities and services.4 INGAA contends rather than comparing the per project cost cap in effect at the time a facility was constructed with the facility’s actual original cost, to determine whether the blanket certificate abandonment provisions might apply to an existing facility, the Commission should compare the per project cost cap currently in effect with the estimated cost to duplicate the facility today. INGAA states this approach will permit facilities put in place prior to the 1982 initiation of the blanket certificate program to qualify for abandonment under the blanket program. 5. The Commission will grant INGAA’s request for rehearing. Instead 4 See Order No. 603, Revision of Existing Regulations under the Natural Gas Act, 64 FR 26572 (May 14, 1999), FERC Stats. & Regs. ¶ 31,073 (1999); Order No. 603–A, 64 FR 54522 at 54532– 34 (Oct. 7, 1999), FERC Stats. & Regs. ¶ 31,081 at 30,936 (1999), adopting a similar approach with respect to automatic abandonments under 18 CFR 157.216(a) (2007). VerDate Aug<31>2005 17:45 Sep 26, 2007 Jkt 211001 of restricting § 157.216 abandonments to facilities put in place after the effective date of the blanket certificate program and comparing a facility’s original cost to the cost cap in effect at the time the facility was placed in service, companies will be required to compare the estimated current cost to replicate an existing facility to the current § 157.208(d) per project cost cap. This will permit companies to employ blanket certificate authority to abandon a facility put in place under casespecific authority, provided the existing facility could qualify for authorization under the current blanket program 6. To effect this expansion of abandonment authority, the Commission will revise § 157.216(c)(1) and (d)(1) to specify that a company seeking to rely on its blanket certificate to abandon a facility which was not initially constructed or acquired under blanket certificate authority must estimate the current cost to replicate the facility. Provided the estimated current cost to replicate the facility would not exceed the currently-effective § 157.208(d) project cost cap, and provided the existing facility would qualify for authorization under the currently-effective blanket regulations, the company may rely on abandonment authority under § 157.216. Note that in calculating an estimated cost, the Commission anticipates a company will account for the current values of a facility’s various component costs, such as land acquisition, public outreach, agency involvement, materials, labor, and environmental mitigation and remediation.5 In addition, the Commission will revise § 157.216(a)(2) and (b)(2) to clarify that any existing facility that could be constructed or acquired under the currently-effective blanket certificate program criteria can be abandoned under blanket certificate authority, provided that, as is currently the case, the blanket certificate holder obtains the written consent of each customer served using the facility during the past 12 months. 7. In view of the above described revisions to the June 2007 order and blanket certificate abandonment regulations, INGAA’s request for rehearing is granted. III. Information Collection Statement 8. The Office of Management and Budget (OMB) regulations require that 5 See, e.g., the reporting requirements for describing a project’s costs in 18 CFR 157.208(e)(3) (2007). The Commission suggests a blanket certificate holder contemplating action under 18 CFR 157.216 review the record in this proceeding, which includes comments on past and present project cost comparisons. PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 54819 OMB approve certain information collection requirements imposed by an agency.6 The Final Rule’s revisions to the information collection requirements for blanket certificate projects were approved under OMB Control Nos. 1902–0128 and 1902–0060. While this order on rehearing clarifies aspects of the existing information collection requirements for the blanket certificate program, it does not add to these requirements. Accordingly, a copy of this order will be sent to OMB for informational purposes only. IV. Document Availability 9. 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 print the contents of this document via the Internet through FERC’s Web site (https://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. User assistance is available for FERC’s Web site during normal business hours (8:30 a.m. to 5 p.m. Eastern time, Monday to Friday) from FERC’s Online Support at 202–502–6652, toll free at 1–866–208–3676, or by e-mail at ferconlinesupport@ferc.gov, and from the Public Reference Room at 202–502– 8371, TTY at 202–502–8659, or by email at public.referenceroom@ferc.gov. V. Effective Date and Congressional Notification 10. The modifications made in this request for rehearing will become effective October 29, 2007. The provisions of 5 U.S.C. 801 regarding Congressional review of rulemaking do not apply to this order on rehearing, since it clarifies agency procedure and practice. List of Subjects in 18 CFR Part 157 Administrative practice and procedure, Natural gas, Reporting and recordkeeping requirements. By the Commission. Kimberly D. Bose, Secretary. In consideration of the foregoing, the Commission amends part 157, Chapter I, Title 18, Code of Federal Regulations, as follows: I 65 CFR 1320.11 (2007). E:\FR\FM\27SER1.SGM 27SER1 54820 Federal Register / Vol. 72, No. 187 / Thursday, September 27, 2007 / Rules and Regulations PART 157—APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER SECTION 7 OF THE NATURAL GAS ACT 1. The authority citation for part 157 continues to read as follows: I Authority: 15 U.S.C. 717–717w. 2. In § 157.216, paragraphs (a)(2), (b)(2), (c)(1), and (d)(1) are revised to read as follows: I § 157.216 Abandonment. (a) * * * (2) A facility that did or could now qualify for automatic authorization as described in § 157.203(b), provided the certificate holder obtains the written consent of each customer served using the facility during the past 12 months. (b) * * * (2) Any other facility that did or could now qualify for prior notice authorization as described in § 157.203(c), provided the certificate holder obtains the written consent of each customer served using the facility during the past 12 months. (c) * * * (1) The location, type, size, and length of the subject facilities. For facilities not constructed or acquired under blanket certificate authority, an estimate of the current cost to replicate such facilities; * * * * * (d) * * * (1) A description of the facilities abandoned under this section. For facilities not constructed or acquired under blanket certificate authority, an estimate of the current cost to replicate such facilities; * * * * * SUMMARY: This document contains final regulations that provide certain elections for taxpayers that continue to be subject to the PFIC excess distribution regime of section 1291 of the Internal Revenue Code even though the foreign corporation in which they own stock is no longer treated as a PFIC under section 1297(a) or (e) of the Code. The regulations are necessary to provide guidance about purging the PFIC taint for such foreign corporations. The regulations will affect U.S. persons that hold stock in a PFIC. DATES: Effective Date: These regulations are effective on September 27, 2007. Applicability Date: For dates of applicability, see §§ 1.1291–9(k), 1.1297–3(f), 1.1298–3(f). FOR FURTHER INFORMATION CONTACT: Paul J. Carlino at (202) 622–3840 (not a tollfree number). SUPPLEMENTARY INFORMATION: Paperwork Reduction Act Internal Revenue Service The collection of information contained in these final regulations has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) under control number 1545– 1965. The collection of information in these final regulations is in § 1.1297– 3(c)(5)(ii). This information is required to enable the IRS to verify that a taxpayer is reporting the correct amount of income or gain or is claiming the correct amount of losses, deductions or credits from that taxpayer’s interest in the foreign corporation. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control. Books or records relating to a collection of information must be retained as long as their contents might become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. 26 CFR Parts 1 and 602 Background [TD 9360] On December 8, 2005, the IRS and the Treasury Department published final regulations under section 1298(b)(1) and removal of temporary regulations (TD 9231) in the Federal Register (70 FR 72914). The final regulations provided rules for a shareholder of a former PFIC (as defined in § 1.1291–9(j)(2)(iv)) to make a deemed dividend or deemed sale election to purge the PFIC taint of the stock of the foreign corporation (that is, to end treatment of the stock of the [FR Doc. E7–18904 Filed 9–26–07; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF THE TREASURY mstockstill on PROD1PC66 with RULES RIN 1545–BC37 Guidance on Passive Foreign Investment Company (PFIC) Purging Elections Internal Revenue Service (IRS), Treasury. ACTION: Final regulations and removal of the temporary regulations. AGENCY: VerDate Aug<31>2005 17:45 Sep 26, 2007 Jkt 211001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 foreign corporation as PFIC stock with respect to the shareholder). On December 8, 2005, the Internal Revenue Service and the Treasury Department also published temporary regulations (TD 9232) under sections 1291(d)(2), 1297(e) and 1298(b)(1) in the Federal Register (70 FR 72908). A notice of proposed rulemaking (REG–133446–03) cross-referencing the temporary regulations was published in the Federal Register for the same day (70 FR 72952). The temporary and proposed regulations provided guidance to shareholders of section 1297(e) PFICs (as defined in § 1.1291–9(j)(2)(v)) on making a deemed sale or deemed dividend election to purge the PFIC taint of the stock of the foreign corporation. The temporary and proposed regulations also provided guidance to shareholders of section 1297(e) PFICs and shareholders of former PFICs on making late purging elections (provided certain requirements are met). No public hearing was requested or held. A comment responding to the notice of proposed rulemaking was received. After consideration of the comment, the proposed regulations are adopted as amended by this Treasury decision, and the corresponding temporary regulations are removed. The comment and revision is discussed in this preamble. Summary of Comments and Explanation of Revisions 1. Multiple Purging Elections Sections 1.1297–3 and 1.1298–3 provide guidance for a shareholder of a section 1297(e) PFIC and a shareholder of a former PFIC, respectively, to make a deemed sale or a deemed dividend election to purge the PFIC taint of the stock of the foreign corporation. A section 1297(e) PFIC is a foreign corporation that qualifies as a PFIC under section 1297(a) on the first day of the qualified portion of the shareholder’s holding period under section 1297(e), and is treated as a PFIC with respect to the shareholder under section 1298(b)(1) because at any time during the shareholder’s holding period of the stock, other than the qualified portion, the foreign corporation was a PFIC that was not a qualified electing fund (QEF) under section 1295. (The ‘‘qualified portion’’ is the portion of the shareholder’s holding period which is after December 31, 1997, and during which the shareholder is a U.S. shareholder (as defined in section 951(b)) and the foreign corporation is a controlled foreign corporation.) A former PFIC is a foreign corporation that E:\FR\FM\27SER1.SGM 27SER1

Agencies

[Federal Register Volume 72, Number 187 (Thursday, September 27, 2007)]
[Rules and Regulations]
[Pages 54818-54820]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18904]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 157

[Docket No. RM06-7-002; Order No. 686-B]


Revisions to the Blanket Certificate Regulations and 
Clarification Regarding Rates

Issued September 20, 2007.
AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Final rule; order on rehearing.

-----------------------------------------------------------------------

SUMMARY: On June 22, 2007, the Commission issued an Order on Rehearing 
and Clarification in response to motions seeking rehearing and 
clarification of an October 19, 2006 Final Rule. The Final Rule 
expanded the scope and scale of activities that may be undertaken 
pursuant to blanket certificate authority and clarified Commission rate 
policy. The revised regulations allow interstate natural gas pipelines 
to employ the streamlined blanket certificate procedures for larger 
projects and for a wider variety of projects, thereby increasing 
efficiencies, and decreasing the time and cost associated with the 
construction and maintenance of the nation's natural gas 
infrastructure. This order grants a request for rehearing of the June 
22, 2007 Order.

DATES: Effective Date: This final rule will become effective October 
29, 2007.

FOR FURTHER INFORMATION CONTACT:
Gordon Wagner, Office of the General Counsel, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, 
gordon.wagner@ferc.gov, (202) 502-8947.
Michael McGehee, Office of Energy Projects, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, 
michael.mcgehee@ferc.gov, (202) 502-8962.
Lonnie Lister, Office of Energy Projects, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, 
lonnie.lister@ferc.gov, 202-502-8587.

SUPPLEMENTARY INFORMATION:
    Before Commissioners: Joseph T. Kelliher, Chairman; Suedeen G. 
Kelly, Marc Spitzer, Philip D. Moeller, and Jon Wellinghoff.

Revisions to the Blanket Certificate Regulations and Clarification 
Regarding Rates; Order on Rehearing

I. Introduction

    1. On October 19, 2006, the Federal Energy Regulatory Commission 
(Commission) issued a Final Rule in Order No. 686 \1\ amending Part 
157, Subpart F, of its regulations to expand the scope and scale of 
activities that may be undertaken pursuant to blanket certificate 
authority by (1) Broadening the types of natural gas projects permitted 
under blanket certificate authority to include certain mainline, 
storage, and liquefied natural gas (LNG) and synthetic gas pipeline 
facilities, and (2) increasing the blanket certificate project cost 
limits from $8,200,000 to $9,600,000 for automatic authorization 
projects and from $22,700,000 to $27,400,000 for prior notice 
projects.\2\ In addition, Order No. 686 clarified that a natural gas 
company is not necessarily engaged in an unduly discriminatory practice 
if it charges different customers different rates for the same service 
when those customers commit to service on different dates. The revised 
blanket certificate regulations are intended to allow interstate 
natural gas companies to employ the streamlined blanket certificate 
procedures for larger projects and additional types of projects, 
thereby increasing efficiencies and decreasing the time and cost 
associated with the construction and maintenance of the nation's 
natural gas infrastructure. On June 22, 2007, the Commission issued an 
order in response to motions seeking rehearing and clarification of the 
October 2006 Final Rule.\3\ In this order, for the reasons discussed 
below, the Commission grants a request for rehearing of the June 2007 
Order.
---------------------------------------------------------------------------

    \1\ Order No. 686, Revisions to the Blanket Certificate 
Regulations and Clarification Regarding Rates, 71 FR 63680 (October 
31, 2006), FERC Stats & Regs ] 31,231 (2006). This rulemaking 
proceeding was initiated in response to a petition submitted under 
18 CFR 385.207(a) (2007) of the Commission's regulations by the 
Interstate Natural Gas Association of America jointly with the 
Natural Gas Supply Association.
    \2\ These cost limits now stand at $9,900,000 for an automatic 
authorization project and $28,200,000 for a prior notice project. 
See Natural Gas Pipelines; Project Cost and Annual Limits, 72 FR 
5614 (Feb. 7, 2007).
    \3\ Order No. 686-A, Order on Rehearing and Clarification, 72 FR 
37431 (July 10, 2007), FERC Statutes and Regulations ] 31,249 (2007) 
(June 2007 Order).
---------------------------------------------------------------------------

II. Request for Rehearing

    2. New Sec.  157.210 permits companies to rely on blanket 
certificate authority to ``acquire, construct, modify, replace, and 
operate natural gas mainline facilities, including compression and

[[Page 54819]]

looping.'' Revised Sec.  157.216(b)(2) provides for the abandonment of 
such facilities. The Interstate Natural Gas Association of America 
(INGAA) asked the Commission to clarify whether the Final Rule's 
revised Sec.  157.216(b)(2) abandonment provisions would apply 
exclusively to mainline facilities put in place under the new Sec.  
157.210 or would also apply to mainline facilities already in place.
    3. In its June 2007 Order, the Commission stated that facilities 
which were constructed under case-specific certificate authorization, 
but which would have met the criteria for construction under the 
current blanket certificate program, may be abandoned pursuant to the 
provisions Sec.  157.216(b). The Commission stated that in considering 
whether existing facilities would have met the criteria for blanket 
certificate authorization, ``the facilities must have been installed 
subsequent to the Commission's implementation of the blanket 
certificate program and the facilities' original cost must have met the 
Sec.  157.208 project cost cap in effect at the time of their 
construction.''
    4. INGAA requests rehearing of the June 2007 Order to ask the 
Commission to remove this qualification because it precludes Sec.  
157.216 abandonment of facilities put in place prior to 1982, i.e., the 
year the blanket certificate program was initiated. INGAA notes that 
the Commission did not impose the qualification that the project cost 
not exceed the blanket certificate cost cap in effect at the time of 
construction with respect to its 1999 expansion of the blanket 
certificate abandonment provisions to cover gas supply facilities and 
services.\4\ INGAA contends rather than comparing the per project cost 
cap in effect at the time a facility was constructed with the 
facility's actual original cost, to determine whether the blanket 
certificate abandonment provisions might apply to an existing facility, 
the Commission should compare the per project cost cap currently in 
effect with the estimated cost to duplicate the facility today. INGAA 
states this approach will permit facilities put in place prior to the 
1982 initiation of the blanket certificate program to qualify for 
abandonment under the blanket program.
---------------------------------------------------------------------------

    \4\ See Order No. 603, Revision of Existing Regulations under 
the Natural Gas Act, 64 FR 26572 (May 14, 1999), FERC Stats. & Regs. 
] 31,073 (1999); Order No. 603-A, 64 FR 54522 at 54532-34 (Oct. 7, 
1999), FERC Stats. & Regs. ] 31,081 at 30,936 (1999), adopting a 
similar approach with respect to automatic abandonments under 18 CFR 
157.216(a) (2007).
---------------------------------------------------------------------------

    5. The Commission will grant INGAA's request for rehearing. Instead 
of restricting Sec.  157.216 abandonments to facilities put in place 
after the effective date of the blanket certificate program and 
comparing a facility's original cost to the cost cap in effect at the 
time the facility was placed in service, companies will be required to 
compare the estimated current cost to replicate an existing facility to 
the current Sec.  157.208(d) per project cost cap. This will permit 
companies to employ blanket certificate authority to abandon a facility 
put in place under case-specific authority, provided the existing 
facility could qualify for authorization under the current blanket 
program
    6. To effect this expansion of abandonment authority, the 
Commission will revise Sec.  157.216(c)(1) and (d)(1) to specify that a 
company seeking to rely on its blanket certificate to abandon a 
facility which was not initially constructed or acquired under blanket 
certificate authority must estimate the current cost to replicate the 
facility. Provided the estimated current cost to replicate the facility 
would not exceed the currently-effective Sec.  157.208(d) project cost 
cap, and provided the existing facility would qualify for authorization 
under the currently-effective blanket regulations, the company may rely 
on abandonment authority under Sec.  157.216. Note that in calculating 
an estimated cost, the Commission anticipates a company will account 
for the current values of a facility's various component costs, such as 
land acquisition, public outreach, agency involvement, materials, 
labor, and environmental mitigation and remediation.\5\ In addition, 
the Commission will revise Sec.  157.216(a)(2) and (b)(2) to clarify 
that any existing facility that could be constructed or acquired under 
the currently-effective blanket certificate program criteria can be 
abandoned under blanket certificate authority, provided that, as is 
currently the case, the blanket certificate holder obtains the written 
consent of each customer served using the facility during the past 12 
months.
---------------------------------------------------------------------------

    \5\ See, e.g., the reporting requirements for describing a 
project's costs in 18 CFR 157.208(e)(3) (2007). The Commission 
suggests a blanket certificate holder contemplating action under 18 
CFR 157.216 review the record in this proceeding, which includes 
comments on past and present project cost comparisons.
---------------------------------------------------------------------------

    7. In view of the above described revisions to the June 2007 order 
and blanket certificate abandonment regulations, INGAA's request for 
rehearing is granted.

III. Information Collection Statement

    8. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain information collection requirements imposed by 
an agency.\6\ The Final Rule's revisions to the information collection 
requirements for blanket certificate projects were approved under OMB 
Control Nos. 1902-0128 and 1902-0060. While this order on rehearing 
clarifies aspects of the existing information collection requirements 
for the blanket certificate program, it does not add to these 
requirements. Accordingly, a copy of this order will be sent to OMB for 
informational purposes only.
---------------------------------------------------------------------------

    \6\ 5 CFR 1320.11 (2007).
---------------------------------------------------------------------------

IV. Document Availability

    9. 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 print the contents of this document via the 
Internet through FERC's Web site (https://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. 
User assistance is available for FERC's Web site during normal business 
hours (8:30 a.m. to 5 p.m. Eastern time, Monday to Friday) from FERC's 
Online Support at 202-502-6652, toll free at 1-866-208-3676, or by e-
mail at ferconlinesupport@ferc.gov, and from the Public Reference Room 
at 202-502-8371, TTY at 202-502-8659, or by e-mail at 
public.referenceroom@ferc.gov.

V. Effective Date and Congressional Notification

    10. The modifications made in this request for rehearing will 
become effective October 29, 2007. The provisions of 5 U.S.C. 801 
regarding Congressional review of rulemaking do not apply to this order 
on rehearing, since it clarifies agency procedure and practice.

List of Subjects in 18 CFR Part 157

    Administrative practice and procedure, Natural gas, Reporting and 
recordkeeping requirements.

    By the Commission.
Kimberly D. Bose,
Secretary.

0
In consideration of the foregoing, the Commission amends part 157, 
Chapter I, Title 18, Code of Federal Regulations, as follows:

[[Page 54820]]

PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND 
NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER 
SECTION 7 OF THE NATURAL GAS ACT

0
1. The authority citation for part 157 continues to read as follows:

    Authority: 15 U.S.C. 717-717w.


0
2. In Sec.  157.216, paragraphs (a)(2), (b)(2), (c)(1), and (d)(1) are 
revised to read as follows:


Sec.  157.216  Abandonment.

    (a) * * *
    (2) A facility that did or could now qualify for automatic 
authorization as described in Sec.  157.203(b), provided the 
certificate holder obtains the written consent of each customer served 
using the facility during the past 12 months.
    (b) * * *
    (2) Any other facility that did or could now qualify for prior 
notice authorization as described in Sec.  157.203(c), provided the 
certificate holder obtains the written consent of each customer served 
using the facility during the past 12 months.
    (c) * * *
    (1) The location, type, size, and length of the subject facilities. 
For facilities not constructed or acquired under blanket certificate 
authority, an estimate of the current cost to replicate such 
facilities;
* * * * *
    (d) * * *
    (1) A description of the facilities abandoned under this section. 
For facilities not constructed or acquired under blanket certificate 
authority, an estimate of the current cost to replicate such 
facilities;
* * * * *
[FR Doc. E7-18904 Filed 9-26-07; 8:45 am]
BILLING CODE 6717-01-P
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