Pipeline Posting Requirements Under Section 23 of the Natural Gas Act; Order Requesting Supplemental Comments, 37975-37976 [E9-17335]

Agencies

• DEPARTMENT OF ENERGY
• Federal Energy Regulatory Commission

[Federal Register Volume 74, Number 145 (Thursday, July 30, 2009)]
[Proposed Rules]
[Pages 37975-37976]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-17335]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 284

[Docket No. RM08-2-000]


Pipeline Posting Requirements Under Section 23 of the Natural Gas 
Act; Order Requesting Supplemental Comments

Issued July 16, 2009.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Order Requesting Supplemental Comments.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) seeks 
supplemental comments regarding potential revisions to the posting 
requirements adopted in Order No. 720 of the Commission's regulations.

DATES: Comments are due August 31, 2009.

FOR FURTHER INFORMATION CONTACT: 
Christopher Ellsworth (Technical), Office of Enforcement, Federal 
Energy Regulatory Commission, 888 First Street, NE., Washington, DC 
20426, (202) 502-8228.

Gabriel Sterling (Legal), Office of Enforcement, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 
(202) 502-8891.

SUPPLEMENTARY INFORMATION: 

Before Commissioners: Jon Wellinghoff, Chairman; Suedeen G. Kelly, 
Marc Spitzer, and Philip D. Moeller.

Pipeline Posting Requirements Under Section 23 of the Natural Gas Act; 
Order Requesting Supplemental Comments

    1. The Federal Energy Regulatory Commission (Commission) is seeking 
supplemental comments in regard to the posting requirements adopted in 
Order No. 720 and codified in Sec.  284.14(a) of the Commission's 
regulations,\1\ in response to limited issues raised in requests for 
rehearing of Order No. 720 \2\ and at the staff technical conference 
held in this docket on March 18, 2009.\3\ In particular, we seek 
comment on specific regulatory text relevant to arguments received on 
rehearing of Order No. 720. Comments should be submitted within 30 days 
of publication of this order in the Federal Register.
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    \1\ 18 CFR 284.14(a).
    \2\ Pipeline Posting Requirements under Section 23 of the 
Natural Gas Act, Order No. 720, FERC Stats. & Regs. ] 31,283 (2008). 
The Commission is not requesting additional comments regarding 18 
CFR 284.14(b) which was also added by Order No. 720.
    \3\ See Notice of Technical Conference, Docket No. RM08-2-000 
(issued Feb. 24, 2009).
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I. Background

    2. In Order No. 720, the Commission adopted new regulations 
requiring major non-interstate pipelines to post certain data on 
publicly-accessible Internet Web sites. \4\ Order No. 720 implemented 
the Commission's authority under section 23 of the Natural Gas Act 
(NGA),\5\ as added by the Energy Policy Act of 2005 (EPAct 2005).\6\ 
The order required major non-interstate pipelines, defined as those 
natural gas pipelines that are not natural gas companies under the NGA 
and deliver more than 50 million MMBtu per year, to post scheduled flow 
information and to post information for each receipt or delivery point 
with a design capacity greater than 15,000 MMBtu per day.\7\
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    \4\ Additionally, the Commission adopted regulations requiring 
interstate pipelines to post information regarding no-notice 
service. Order No. 720 at P 1. These regulations are in effect and 
interstate pipelines must be in compliance with this requirement.
    \5\ Section 23 of the Natural Gas Act; 15 U.S.C. 717t 2 (2000 & 
Supp. V 2005).
    \6\ Energy Policy Act of 2005, Public Law No. 109-58, sections 
1261 et seq., 119 Stat. 594 (2005).
    \7\ Order No. 720 at P 1.
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    3. While Order No. 720 required major non-interstate pipelines to 
comply with the new rules within 150 days of the rule's publication,\8\ 
a subsequent order in this docket extended the compliance deadline for 
major non-interstate pipelines until 150 days following the issuance of 
an order on rehearing.\9\ A staff technical conference was held on 
March 18, 2009, to gather additional information on certain issues 
raised on rehearing.\10\
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    \8\ Id. P 168.
    \9\ Pipeline Posting Requirements under Section 23 of the 
Natural Gas Act, 126 FERC ] 61,047, at P 4 (2009).
    \10\ See Notice of Technical Conference, Docket No. RM08-2-001 
(issued Feb. 24, 2009); Notice of Agenda for Technical Conference, 
Docket No. RM08-2-001 (issued March 11, 2009).
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    4. Among other changes to the Commission's regulations, Order No. 
720 adopted new Sec.  284.14(a) identifying the data that major non-
interstate pipelines must post. This section provides that information 
must be posted by major non-interstate pipelines for each receipt or 
delivery point with a design capacity greater than or equal to 15,000 
MMBtu/day. The Commission stated in Order No. 720, that, ``In the 
circumstance where the design capacity of a receipt or delivery point 
could vary according to operational or usage conditions, a major non-
interstate pipeline must post the design capacity for the most common 
operating conditions of its system during peak periods.'' \11\ Section 
284.14(a) provides that the following information be posted regarding 
each applicable receipt or delivery point: Transportation Service 
Provider Name, Posting Date, Posting Time, Nomination Cycle, Location 
Name, Additional Location Information if Needed to Distinguish Between 
Points, Location Purpose Description (Receipt, Delivery, or Bilateral), 
Design Capacity, Scheduled Volume, Available Capacity, and Measurement 
Unit (Dth, MMBtu, or MCf).
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    \11\ Order No. 720 at P 92.
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II. Requests for Rehearing and Technical Conference Comments

    5. The Commission received 24 requests for rehearing, 
clarification, or both of Order No. 720. Additionally, the Commission 
publicly noticed and held a staff technical conference on March 18, 
2009, to gather additional information with respect to: (1) The 
definition of major non-interstate pipelines; (2) what constitutes 
``scheduling'' for a receipt or delivery point; and, (3) how the 15,000 
MMBtu per day design capacity threshold should be applied.\12\
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    \12\ Notice of Technical Conference, Docket No. RM08-2-001 
(issued Feb. 24, 2009).
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    6. Certain rehearing requests questioned how Sec.  284.14(a) of the 
Commission's regulations applies to major non-interstate pipelines that 
operate with virtual or pooling points instead of, or in addition to, 
physical metered points.\13\ Texas Pipeline Association (TPA) proposed 
modifications to Sec.  284.14(a) requiring

[[Page 37976]]

posting only at points where scheduling occurs.\14\
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    \13\ Requests for rehearing, clarification, or both filed by the 
following participants raise this question: American Gas 
Association, Atmos Pipeline, Nicor Gas Company, ONEOK Gas 
Transportation, LLC, and ONEOK WesTex Transmission, LLC
    \14\ See Post-Technical Conference Comments of the Texas 
Pipeline Association (submitted March 30, 2009).
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III. Discussion

    7. The Commission is seeking supplemental comments to better inform 
its decision making in this rulemaking. In particular, the Commission 
seeks comment regarding various proposals to post information for 
virtual or pooling receipt and delivery points. In addition, the 
Commission requests comment on whether and how to adopt a proxy for 
design capacity for physical points for which the design capacity is 
unknown. To this end, the Commission attaches hereto proposed revisions 
to Sec.  284.14(a) of our regulations addressing these matters.
    8. The Commission recognizes that a number of major non-interstate 
pipelines use virtual or pooling receipt or delivery points. Major non-
interstate pipelines that schedule gas to virtual or pooling receipt or 
delivery points play a vital role in markets for the sale or 
transportation of natural gas in interstate commerce. While the 
Commission understands that major non-interstate pipelines operate in a 
variety of ways, the Commission is developing regulations of general 
applicability that pertain to all such pipelines. To this end, the 
Commission contemplates that, on rehearing, the posting obligation may 
apply to metered, virtual, or pooling receipt and delivery points on 
major non-interstate pipelines.
    9. The regulatory text included as an attachment provides that 
design capacity is the method to determine whether a receipt or 
delivery point should be posted. However, where design capacity is 
unknown (for example, where the pipeline does not have access to design 
specifications or where the applicable point is not a physical meter, 
but rather a virtual or pooling receipt or delivery point), the 
regulation would allow major non-interstate pipelines to utilize the 
maximum flow experienced during any day within the previous three years 
as a proxy for design capacity. In addition, the attachment makes clear 
that major non-interstate pipelines would be required to post 
information for receipt or delivery points within 45 days of the point 
becoming eligible for posting. The Commission seeks comment on these 
matters.
    10. Further, the Commission seeks comment on whether and how to 
provide an exemption for receipt points with de minimis natural gas 
flows, even if such points have a design capacity above the posting 
threshold. The attached draft regulatory text provides an exemption 
from the posting requirement for receipt points which have experienced 
actual flows less than 5,000 MMBtu every day for the previous three 
years. The Commission understands that many major non-interstate 
pipelines have receipt points with design capacities greater than 
15,000 MMBtu/day and yet consistently flow far less than this design 
capacity. The proposed revision responds to commenters' concerns 
regarding the posting of de minimis volumes and recognizes that such 
receipt points, individually, may have a de minimis effect on 
downstream natural gas availability.

IV. Conclusion

    Persons wishing to comment on the matters discussed in this order 
should submit such comments to the Commission no later than 30 days 
following publication of this order in the Federal Register.

List of Subjects in 18 CFR Part 284

    Continental shelf; Incorporation by reference; Natural gas; 
Reporting and recordkeeping requirements.

    By the Commission.
Kimberly D. Bose,
Secretary.

    In consideration of the foregoing, the Commission proposes to amend 
Part 284, Chapter I, Title 18, Code of Federal Regulations, as follows:

PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE 
NATURAL GAS POLICY OF 1978 AND RELATED AUTHORITIES

    1. The authority citation for part 284 continues to read as 
follows:

    Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352; 
43 U.S.C. 1331-1356.

    2. In Sec.  284.1, revise paragraph (a) to read as follows:


Sec.  284.14.  Posting requirements of major non-interstate pipelines.

    (a) Daily posting requirement. A major non-interstate pipeline must 
provide on a daily basis on a publicly-accessible Internet Web site and 
in downloadable file format equal and timely access to information 
regarding receipt or delivery points, including non-physical scheduling 
points.
    (1) A major non-interstate pipeline must post data for each receipt 
or delivery point, or for any point that operates as both a delivery 
and receipt point for the major non-interstate pipeline, to which 
natural gas transportation is scheduled:
    (i) With a physically metered design capacity equal to or greater 
than 15,000 MMBtu/day; or
    (ii) If a physically metered design capacity is not known or does 
not exist for such a point, with a maximum flow equal to or greater 
than 15,000 MMBtu on any day within the prior three years.
    (2) Notwithstanding the requirements of 284.14(a)(1), a receipt 
point is not subject to the posting requirements of this section if the 
maximum flow at the receipt point was less than 5,000 MMBtu on every 
day within the prior three years. If a point has operated as both a 
receipt and delivery point any time within the last three years, then 
this subsection 284.14(a)(2) shall not apply to that point.
    (3) A major non-interstate pipeline that must post data for a 
receipt or delivery point shall do so within 45 days of the date on 
which the point becomes eligible for posting.
    (4) For each delivery or receipt point that must be posted, a major 
non-interstate pipeline must provide the following information: 
Transportation Service Provider Name, Posting Date, Posting Time, 
Nomination Cycle, Location Name, Additional Location Information if 
Needed to Distinguish Between Points, Location Purpose Description 
(Receipt, Delivery, Bilateral, or Non-physical Scheduling Point), 
Posted Capacity (physically metered design capacity or maximum flow 
within the last three years), Method of Determining Posted Capacity 
(Capacity or Maximum Average Volume), Scheduled Volume, Available 
Capacity (Calculated as Posted Capacity minus Scheduled Capacity), and 
Measurement Unit (Dth, MMBtu, or MCf). The information in this 
subsection must remain posted for a period of one year.
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[FR Doc. E9-17335 Filed 7-29-09; 8:45 am]
BILLING CODE 6717-01-P