Standards for Business Practices for Interstate Natural Gas Pipelines, 62261-62266 [E9-28402]

Download as PDF Federal Register / Vol. 74, No. 227 / Friday, November 27, 2009 / Proposed Rules jlentini on DSKJ8SOYB1PROD with PROPOSALS 600 Pennsylvania Avenue, NW, Washington, DC 20580, (202) 326-2252. SUPPLEMENTARY INFORMATION: On October 15, 2009, the Commission published an NPRM1 pursuant to the authority granted to it in Section 205 of the Credit CARD Act of 2009 (‘‘the Act’’)2 to prevent deceptive marketing of ‘‘free credit reports.’’ In the NPRM, the Commission solicited comment on amendments to the Free Annual File Disclosure Rule (‘‘Free Reports Rule’’ or ‘‘Rule’’) that would require prominent disclosures for ‘‘free credit report’’ offers that are not the federally mandated free annual file disclosures. Section 205 of the Act requires the Commission to issue a final rule within 9 months of the enactment of the Act, or by February 22, 2010. The NPRM set a deadline of November 30, 2009 for filing public comments. In a letter dated November 13, 2009, the Illinois Office of the Attorney General, Consumer Protection Division, on behalf of interested states (‘‘States’’), requested that the Commission extend the comment deadline in the NPRM proceeding until December 14, 2009. In the request, the States explain that they may need additional time to compile data and file comprehensive comments responsive to the NPRM. The Commission recognizes that its proposal raises significant issues and believes that extending the comment period will facilitate the creation of a more complete record. In light of the statutory deadline for the issuance of the final rule, however, the Commission believes that a seven-day extension of the comment period is reasonable. The additional time should enable the States and other commenters to finalize and submit comments in response to the NPRM. Accordingly, the Commission has determined to extend the comment period set forth in the NPRM to December 7, 2009. Interested parties are invited to submit written comments electronically or in paper form. Comments should refer to ‘‘Free Annual File Disclosures, Rule No. R411005’’ to facilitate the organization of comments. Please note that your comment – including your name and your state – will be placed on the public record of this proceeding, including on the publicly accessible FTC website, at (https://www.ftc.gov/os/ publiccomments.shtm). Because comments will be made public, they should not include any sensitive personal information, such as any individual’s Social Security number; date of birth; driver’s license number or other state identification number, or foreign country equivalent; passport number; financial account number; or credit or debit card number. Comments also should not include any sensitive health information, such as medical records or other individually identifiable health information. In addition, comments should not include any ‘‘[t]rade secret or any commercial or financial information which is obtained from any person and which is privileged or confidential. . . ,’’ as provided in Section 6(f) of the Federal Trade Commission Act (‘‘FTC Act’’), 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled ‘‘Confidential,’’ and must comply with FTC Rule 4.9(c), 16 CFR 4.9(c).3 Because paper mail addressed to the FTC is subject to delay due to heightened security screening, please consider submitting your comments in electronic form. Comments filed in electronic form should be submitted by using the following weblink: (https:// public.commentworks.com/ftc/ FreeCreditReportNPRM) (and following the instructions on the web-based form). To ensure that the Commission considers an electronic comment, you must file it on the web-based form at the weblink (https:// public.commentworks.com/ftc/ FreeCreditReportNPRM). If this document appears at (https:// www.regulations.gov/search/Regs/ home.html#home), you may also file an electronic comment through that website. The Commission will consider all comments that regulations.gov forwards to it. You may also visit the FTC Website at (https://www.ftc.gov) to read the document and the news release describing it. A comment filed in paper form should include the ‘‘Free Annual File Disclosures Rulemaking, Rule No. R411005’’ reference both in the text and on the envelope, and should be mailed 1 FTC, Free Annual File Disclosures Amendments to Rule to Prevent Deceptive Marketing of Credit Reports and to Ensure Access to Free Annual File Disclosures, 74 FR 52915 (Oct. 15, 2009). The NPRM was announced in a press release on October 7, 2009, available at (https://www.ftc.gov/opa/2009/ 10/freecredit.shtm). 2 Pub. L. No. 111-24, 123 Stat. 1734 (May 22, 2009). 3 The comment must be accompanied by an explicit request for confidential treatment, including the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. The request will be granted or denied by the Commission’s General Counsel, consistent with applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR 4.9(c). VerDate Nov<24>2008 18:16 Nov 25, 2009 Jkt 220001 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 62261 or delivered to the following address: Federal Trade Commission, Office of the Secretary, Room H-135 (Annex T), 600 Pennsylvania Avenue, NW, Washington, DC 20580. The FTC is requesting that any comment filed in paper form be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. Comments on any proposed filing, recordkeeping, or disclosure requirements that are subject to paperwork burden review under the Paperwork Reduction Act should additionally be submitted to: Office of Information and Regulatory Affairs, Office of Management and Budget (‘‘OMB’’), Attention: Desk Officer for Federal Trade Commission. Comments should be submitted via facsimile to (202) 395-5167 because U.S. postal mail at the OMB is subject to delay due to heightened security precautions. The FTC Act and other laws the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. The Commission will consider all timely and responsive public comments that it receives, whether filed in paper or electronic form. Comments received will be available to the public on the FTC website, to the extent practicable, at (https://www.ftc.gov/os/ publiccomments.shtm). As a matter of discretion, the Commission makes every effort to remove home contact information for individuals from the public comments it receives before placing those comments on the FTC Website. More information, including routine uses permitted by the Privacy Act may be found in the FTC’s privacy policy, at (https://www.ftc.gov/ftc/ privacy.shtm). By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. E9–28337 Filed 11–25–09; 8:45 am] BILLING CODE 6750–01–S FEDERAL ENERGY REGULATORY COMMISSION 18 CFR Part 284 [Docket No. RM96–1–036] Standards for Business Practices for Interstate Natural Gas Pipelines Issued November 19, 2009. AGENCY: Federal Energy Regulatory Commission. E:\FR\FM\27NOP1.SGM 27NOP1 62262 ACTION: Federal Register / Vol. 74, No. 227 / Friday, November 27, 2009 / Proposed Rules Notice of proposed rulemaking. SUMMARY: The Federal Energy Regulatory Commission (Commission) is proposing to amend its regulations at 18 CFR 284.12 to incorporate by reference the latest version (Version 1.9) of business practice standards adopted by the Wholesale Gas Quadrant of the North American Energy Standards Board (NAESB) applicable to natural gas pipelines. The proposed standards include standards adopted in response to Order Nos. 698, 712, 717 and 682, as well as standards related to transactional reporting, NAESB contracts, communication protocols and technical standards. These standards can be obtained from NAESB at 1301 Fannin, Suite 2350, Houston, TX 77002, phone: 713–356–0060, https:// www.naesb.org, and are available for viewing in the Commission’s Public Reference Room. DATES: Comments are due January 11, 2010. You may submit comments, identified by Docket No. RM96–1–036, by any of these methods: • Agency Web site: https:// www.ferc.gov. Documents created electronically using word processing software should be filed in native applications or print-to-PDF format and not in a scanned format. • Mail/Hand Delivery: Commenters unable to file comments electronically must mail or hand deliver an original and 14 copies of their comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street, NE., Washington, DC 20426. FOR FURTHER INFORMATION CONTACT: Bruce McAllister (technical issues), Office of Energy Policy and Innovation, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 502–8296. Gary D. Cohen (legal issues), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 502–8321. SUPPLEMENTARY INFORMATION: 1. The Federal Energy Regulatory Commission (Commission) proposes to amend its regulations at 18 CFR 284.12 to incorporate by reference the latest version (Version 1.9) of business practice standards adopted by the Wholesale Gas Quadrant (WGQ) of the North American Energy Standards Board (NAESB) applicable to natural gas pipelines. jlentini on DSKJ8SOYB1PROD with PROPOSALS ADDRESSES: I. Background 2. Since 1996, the Commission has adopted regulations to standardize the business practices and communication VerDate Nov<24>2008 18:16 Nov 25, 2009 Jkt 220001 methodologies of interstate natural gas pipelines to create a more integrated and efficient pipeline grid. These regulations have been promulgated in the Order No. 587 series of orders,1 wherein the Commission has incorporated by reference standards for interstate natural gas pipeline business practices and electronic communications that were developed and adopted by NAESB’s WGQ. Upon incorporation by reference by the Commission, interstate natural gas pipelines must comply with the requirements contained in the standards. 3. On July 16, 2009, the Commission issued a Notice of Proposed Rulemaking (July 16 NOPR) proposing to incorporate into the Commission regulations by reference business practice standards adopted by NAESB’s WGQ for indexbased pricing for capacity releases and for increasing the flexibility of gas receipt and delivery points.2 Comments on this notice have been received and the matter is currently pending Commission action. These WGQ standards were filed with the Commission September 14, 2007 and created and modified existing standards. 4. On September 30, 2009, NAESB filed a report informing the Commission that it had adopted and ratified Version 1.9 of its business practice standards applicable to natural gas pipelines. Both this NOPR and the July 16 NOPR are the result of a continuing effort by NAESB and the gas industry to add additional specificity and functionality to gas standards in several areas. For example, new or revised standards in Version 1.9 include communication standards and protocols related to the business practice standards dealing with indexbased capacity release, which the Commission proposed to adopt in the July 16 NOPR, and new standards adopted in response to Order Nos. 698, 712, 717 and 682. These new and modified standards support the ability of pipelines to redirect gas around constraints, provide additional gas quality and transactional reporting, and create new standards for index-based capacity release transactions and new information posting requirements for Web sites and browsers. 1 This series of orders began with the Commission’s issuance of Standards for Business Practices of Interstate Natural Gas Pipelines, Order No. 587, FERC Stats. & Regs. ¶ 31,038 (1996). 2 Standards for Business Practices of Interstate Natural Gas Pipelines, 74 FR 36633 (July 24, 2009), FERC Stats. & Regs. ¶ 32,645 (July 16, 2009). PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 II. Significant Changes and Additions Contained in the Version 1.9 Standards A. Standards To Support Order No. 698 and Order No. 712 5. In Order Nos. 698 and 698–A, the Commission requested that NAESB develop or modify standards for business practices: (1) For index-based pricing for capacity release transactions; (2) to allow for increased receipt and delivery point flexibility through the use of redirects of scheduled quantities; and (3) to modify the existing intra-day nomination timeline.3 6. In response to Order Nos. 698 and 698–A, NAESB’s WGQ Business Practice Subcommittee (BPS) adopted revised standards allowing index-based pricing for capacity release transactions,4 and developed a business practice standard to allow for increased receipt and delivery point flexibility through the use of redirects of scheduled quantities. NAESB was unable to reach consensus on standards relating to the intra-day nomination timeline. The July 16 NOPR addressed the business practice standards developed by NAESB in these areas. 7. The Version 1.9 Standards provide details on the technical implementation 5 of index-based pricing for capacity release, and is coordinated with some of the changes developed to accommodate the determinations in Order Nos. 712 and 712–A 6 with respect to capacity release standards.7 B. Standards To Support Order No. 717 8. In Order No. 717, the Commission amended the Standards of Conduct for 3 Standards for Business Practices for Interstate Natural Gas Pipelines, Order No. 698, FERC Stats. & Regs. ¶ 31,251 (2007), order on clarification and reh’g, Order No. 698–A, 121 FERC ¶ 61,264 (2007). 4 These included modification of three WGQ business practice standards, and the development of ten new WGQ business practice standards and two new WGQ definitions. These revisions are included in the standards presented in NAESB’s September 2009 Report to the Commission. These revisions were first discussed in another NAESB report (submitted on September 3, 2008) in which the WGQ BPS discussed these business practices and the record developed by the WGQ BPS and WGQ EC as they were considered. 5 Technical implementation is accomplished through the identification of the data required to support the transactions, definitions of information and mapping of those data into specific electronic transactions. This is outlined in the WGQ Capacity Release Related Standards section of Version 1.9. 6 Promotion of a More Efficient Capacity Release Market, Order No. 712, FERC Stats. & Regs. ¶ 31,271 (2008), order on reh’g, Order No. 712–A, FERC Stats. & Regs. ¶ 31,284 (2008). 7 The standards include new NAESB WGQ Definitions Nos. 5.2.4 & 5.2.5, NAESB WGQ Standard Nos. 5.3.1, 5.3.3, 5.3.26, and 5.3.61— 5.3.69 and modifications to NAESB WGQ Standards Nos. 5.3.1, 5.3.3 and 5.3.26 and complementary modifications to the related data sets. E:\FR\FM\27NOP1.SGM 27NOP1 Federal Register / Vol. 74, No. 227 / Friday, November 27, 2009 / Proposed Rules Transmission Providers.8 In response to Order No. 717, the WGQ Business Practice Subcommittee made modifications to NAESB WGQ Standard No. 4.3.23 related to the Transportation Service Providers’ requirements for their Informational Postings Web site. The modified standard includes a Standards of Conduct section where information can be posted regarding affiliate or corporate transactions as well as posting requirements for the Informational Postings Web site. C. Posting of Gas Quality Information 9. NAESB modified Gas Quality Standards Nos. 4.3.90 and 4.3.92 and also added a new gas quality standard.9 The Version 1.9 Standards related to the posting of gas quality information includes posting and format requirements, provisions for Transportation Service Providers to report hydrocarbon liquid drop out measurements and Informational Postings Web site criteria. D. Internet Communication Standards 10. NAESB made a variety of technical and clean up revisions to the standards. Several standards were modified in response to the Sandia National Laboratories’ security assessment of the NAESB communication standards. NAESB also modified the standards to reflect changes in the use of software used on the Internet, including support for Adobe Flash Player and Active X control as Internet browser plug-ins, Mozilla Firefox as another browser option, and the removal of Netscape as a supporting browser. jlentini on DSKJ8SOYB1PROD with PROPOSALS III. Discussion 11. In this NOPR, the Commission proposes to incorporate by reference in its regulations Version 1.9 of the NAESB WGQ’s consensus standards,10 with two exceptions.11 Adoption of Version 1.9 8 Standards of Conduct for Transmission Providers, Order No. 717, FERC Stats. & Regs. ¶ 31,280 at P 1 (2008). 9 As discussed below, two other new gas quality standards failed to be adopted. 10 In its Version 1.9 Standards, the WEQ made the following changes to its Version 1.8 standards: New Definitions Nos. 5.24, 5.25, and 11.21–11.2.5; Modified Definitions Nos. 10.2.8, 10.2.14, 10.2.24, 10.2.30–10.2.34, 10.2.37, and 10.2.38; New Standards Nos. 0.3.16, 0.3.17, 1.3.80, 4.3.94–4.3.99, 5.3.1, 5.3.3, 5.3.26, 5.3.61–5.3.69, 10.1.10, 10.3.26, 10.3.27 11.31, and 11.32; Modified Standards Nos. 4.1.39, 4.3.16, 4.3.23, 4.3.26, 4.3.29, 4.3.32, 4.3.33, 4.3.90, 4.3.92, 5.3.1, 5.3.3, 5.3.26, 10.2.8, 10.2.14, 10.2.24, 10.2.3–10.2.34, 10.2.37, 10.2.38, 10.3.13, 10.3.15, and 10.3.17; and miscellaneous maintenance clean-up revisions. 11 The Commission is continuing its past practice and is not proposing to incorporate by reference Standards 4.3.4 and 10.3.2., because they are inconsistent with the Commission’s record VerDate Nov<24>2008 18:16 Nov 25, 2009 Jkt 220001 will continue the process of updating and improving NAESB’s business practice standards for the benefit of the wholesale gas market. The most noteworthy of the standards are those addressing recent changes to the Commission’s regulations in Order Nos. 698 (gas-electric coordination), 712 (capacity release), and 717 (standards of conduct), and additional standards and revisions to standards that address pipelines’ posting of gas quality information, and Internet security and communications. 12. In addition, the Version 1.9 standards include new or revised standards that the Commission proposed to adopt in the July 16 NOPR; these standards included updated communication protocols and other standards for implementing the Commission’s findings on improving index-priced capacity release transactions and flexibility to designate receipt and delivery points adopted in response to Order No. 698. New standards in Version 1.9 include business practices and communication protocols for implementing asset management agreements and the removal of the price ceiling for capacity release transactions as permitted under Order No. 712. They also contain revisions to the posting requirements for affiliate information to be consistent with the new requirements of Order No. 717. In addition, they contain further refinements to the standards for posting gas quality information on pipeline Web sites, in particular requirements for formatting downloadable files. Finally, they contain standards that help to better ensure the security of Internet communications and to accommodate software changes in Internet usage. 13. NAESB reports that two of its new gas quality standards failed to pass as a result of a single segment failing to approve the standard. One of the blocked standards would have required a pipeline that currently does not post a Wobbe number 12 to post gas quality retention requirement in 18 CFR 284.12(b)(3)(v). See, e.g., Standards for Business Practices for Interstate Natural Gas Pipelines, Final Rule, Order No. 587–T, FERC Stats. & Regs. ¶ 31,289 at P 5 & n.9 (2009). 12 The Wobbe number or Wobbe index is named after Goffredo Wobbe, an Italian physicist who developed a formula to compare the characteristics of two gasses. The Wobbe index is a measure of the physical combustion characteristics of natural gas used in the natural gas industry to ensure that natural gas from different sources is compatible with gas-burning equipment in a particular service area. See Williams, Technical Background and Issues of Gas Interchangeability, 27 (AGA Staff Paper, 2006) (https://www.aga.org/NR/rdonlyres/ C9D9FB1D-E244-4B9D-9C67-5FA74C24A8E0/0/ 0604GASINTERCHANGEABILITY STAFFPAPER.pdf.). PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 62263 information on its Web site and to calculate and post a Wobbe number when notified by a Service Requestor of its desire to begin discussing the interchangeability of gas supplies. The other blocked standard would have added to an existing requirement that pipelines propose an additional requirement that three months of historical gas quality data be downloadable based on a given date range. 14. The Commission does not currently require pipelines to use the Wobbe number in calculating gas quality, and NAESB’s September 30 Report shows that no consensus to approve such a requirement has been achieved. Nor has any showing been made of a need for a nationwide requirement for providing a Wobbe number applicable to those pipelines whose tariffs do not require the use of a Wobbe number. Accordingly, the Commission is not proposing to create any such requirement in this NOPR. Issues regarding gas quality, including the use of the Wobbe number, can be addressed in individual Commission proceedings involving gas quality when relevant. With respect to the blocked standard regarding downloading, the existing NAESB standards, 4.3.90, 4.3.91, and 4.3.92, already require pipelines to provide a downloadable file, with a standardized file format, of gas quality information for each identified location for a three month period. We therefore see no need for Commission intervention on the question of whether it is more efficient for the pipeline or the shipper to select the date range from the data provided. 15. As the Commission found in Order No. 587, adoption of consensus standards is appropriate because the consensus process helps ensure the reasonableness of the standards by requiring that the standards draw support from a broad spectrum of industry participants representing all segments of the industry.13 Moreover, since the industry itself has to conduct business under these standards, the Commission’s regulations should reflect those standards that have the widest possible support. In section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTT&AA), Congress affirmatively requires federal 13 The NAESB process first requires a supermajority vote of 17 out of 25 members of the WGQ’s Executive Committee with support from at least two members from each of the five industry segments— Distributors, End Users, Pipelines, Producers, and Services (including marketers and computer service providers). For final approval, 67 percent of the WGQ’s general membership voting must ratify the standards. E:\FR\FM\27NOP1.SGM 27NOP1 62264 Federal Register / Vol. 74, No. 227 / Friday, November 27, 2009 / Proposed Rules agencies to use technical standards developed by voluntary consensus standards organizations, like NAESB, as means to carry out policy objectives or activities.14 16. The Commission proposes that natural gas pipelines be required to implement the Version 1.9 Standards on the first day of the month three months after a final rule is issued. Based on past practice, we are proposing this implementation schedule to give the natural gas pipelines subject to these standards adequate time to prepare to implement for these changes. In addition, the Commission proposes that pipelines be required to file tariff sheets to reflect the changed standards two months before the implementation date. IV. Notice of Use of Voluntary Consensus Standards 17. Office of Management and Budget Circular A–119 (section 11) (February 10, 1998) provides that federal agencies should publish a request for comment in a NOPR when the agency is seeking to issue or revise a regulation proposing to adopt a voluntary consensus standard or a government-unique standard. In this NOPR, the Commission is proposing to incorporate by reference voluntary consensus standards developed by the WGQ. V. Information Collection Statement 18. The following collection of information contained in this proposed rule has been submitted to the Office of Management and Budget (OMB) for review under section 3507(d) of the Number of respondents Data collection FERC–549C ..................................................................................................... Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits comments on the Commission’s need for this information, whether the information will have practical utility, the accuracy of the provided burden estimates, ways to enhance the quality, utility, and clarity of the information to be collected, and any suggested methods for minimizing respondents’ burden, including the use of automated information techniques. The following burden estimates include the costs to implement the WGQ’s definitions and business practice standards for interstate natural gas pipelines and electronic communication protocols. The burden estimates are primarily related to start-up to implement these standards and regulations and will not result in ongoing costs. Number of responses per respondent 168 1 Totals ........................................................................................................ Total Annual Hours for Collection (Reporting and Recordkeeping, (if appropriate)) = 3,696. Information Collection Costs: The Commission seeks comments on the costs to comply with these requirements. It has projected the average annualized cost for all respondents to be the following: 15 FERC–549C Annualized Capital/Startup Costs. Annualized Costs (Operations & Maintenance). jlentini on DSKJ8SOYB1PROD with PROPOSALS Total Annualized Costs .. $554,400 N/A $554,400 19. OMB regulations 16 require OMB to approve certain information collection requirements imposed by agency rule. The Commission is submitting notification of this proposed rule to OMB. These information collections are mandatory requirements. Title: Standards for Business Practices of Interstate Natural Gas Pipelines (FERC–549C). Action: Proposed collections. OMB Control No.: 1902–0174. Respondents: Business or other for profit, (Natural Gas Pipelines (not applicable to small businesses.)) 14 Public Law No. 104–113, section 12(d), 110 Stat. 775 (1996), 15 U.S.C. 272 note (1997). 15 The total annualized cost for the two information collections is $554,400. This number is VerDate Nov<24>2008 18:16 Nov 25, 2009 Jkt 220001 Hours per response Total number of hours 22 3,696 3,696 Frequency of Responses: One-time implementation (business procedures, capital/start-up). Necessity of Information: The proposals in this NOPR would, if implemented, upgrade the Commission’s current business practices and communication standards in response to the Commission’s determinations in Order Nos. 682, 698, 698–A, 712 and 717, and would: revise standards allowing index-based pricing for capacity release transactions and allow for increased receipt and delivery point flexibility through the use of redirects of scheduled quantities; create information posting requirements for Web sites and browsers; require the posting of gas quality information including posting and format requirements; report hydrocarbon liquid drop out measurements; and create standards to reflect changes in the use of software used on the Internet. 20. The implementation of these data requirements will increase the efficiency of the capacity release market and the ability to schedule gas around constraints, will provide additional transparency to informational posting Web sites, will improve gas quality measurements and will improve communication standards. The implementation of these standards and regulations will promote the additional efficiency and reliability of the gas industries’ operations thereby helping the Commission to carry out its responsibilities under the Natural Gas Act of promoting the efficiency and reliability of the gas industries’ operations. In addition, the Commission’s Office of Energy Market and Regulation will use the data for general industry oversight. 21. Internal Review: The Commission has reviewed the requirements pertaining to business practices of natural gas pipelines and made a preliminary determination that the proposed revisions are necessary to establish more efficient coordination between the gas and electric industries. Requiring such information ensures both a common means of communication and common business practices to limit miscommunication for participants engaged in the sale of electric energy at wholesale and the transportation of natural gas. These requirements conform to the Commission’s plan for efficient information collection, communication, and management within the natural gas pipeline industries. The Commission has assured itself, by means of its reached by multiplying the total hours to prepare a response (hours) by an hourly wage estimate of $150 (a composite estimate that includes legal, technical and support staff rates). $554,400 = $150 × 3,696. 16 5 CFR 1320.11. PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 E:\FR\FM\27NOP1.SGM 27NOP1 Federal Register / Vol. 74, No. 227 / Friday, November 27, 2009 / Proposed Rules internal review, that there is specific, objective support for the burden estimates associated with the information requirements. 22. Interested persons may obtain information on the reporting requirements by contacting the following: Federal Energy Regulatory Commission, Attn: Michael Miller, Office of the Executive Director, 888 First Street, NE., Washington, DC 20426 Tel: (202) 502–8415/Fax: (202) 273– 0873, E-mail: michael.miller@ferc.gov. 23. Comments concerning the collection of information(s) and the associated burden estimate(s), should be sent to the contact listed above and to the Office of Management and Budget, Office of Information and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer for the Federal Energy Regulatory Commission, phone: (202) 395–4638, fax: (202) 395–7285]. VI. Environmental Analysis 24. The Commission is required to prepare an Environmental Assessment or an Environmental Impact Statement for any action that may have a significant adverse effect on the human environment.17 The Commission has categorically excluded certain actions from these requirements as not having a significant effect on the human environment.18 The actions proposed here fall within categorical exclusions in the Commission’s regulations for rules that are clarifying, corrective, or procedural, for information gathering, analysis, and dissemination, and for sales, exchange, and transportation of natural gas that requires no construction of facilities.19 Therefore, an environmental assessment is unnecessary and has not been prepared as part of this NOPR. jlentini on DSKJ8SOYB1PROD with PROPOSALS VII. Regulatory Flexibility Act Certification 25. The Regulatory Flexibility Act of 1980 (RFA) 20 generally requires a description and analysis of final rules that will have significant economic impact on a substantial number of small entities. In drafting a rule an agency is required to: (1) Assess the effect that its regulation will have on small entities; (2) analyze effective alternatives that may minimize a regulation’s impact; and (3) make the analysis available for public comment.21 Based on our 17 Order No. 486, Regulations Implementing the National Environmental Policy Act of 1969, FERC Stats. & Regs. ¶ 30,783 (1987). 18 18 CFR 380.4. 19 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27). 20 5 U.S.C. 601–612. 21 5 U.S.C. 601–604. VerDate Nov<24>2008 18:16 Nov 25, 2009 Jkt 220001 analysis of the requirements proposed in this NOPR, we do not think the proposed rule will have a significant impact on a substantial number of small entities. VIII. Comment Procedures 26. The Commission invites interested persons to submit written comments on the NAESB business practice standards proposed for incorporation by reference in this NOPR, as well as any related matters or alternative proposals that commenters may wish to discuss. Comments are due January 11, 2010. Comments must refer to Docket No. RM96–1–036, and must include the commenter’s name, the organization they represent, if applicable, and their address. Comments may be filed either in electronic or paper format. 27. Comments may be filed electronically via the eFiling link on the Commission’s Web site at https:// www.ferc.gov. The Commission accepts most standard word processing formats and commenters may attach additional files with supporting information in certain other file formats. Commenters filing electronically do not need to make a paper filing. Commenters unable to file comments electronically must send an original and 14 copies of their comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street, NE., Washington, DC 20426. For paper filings, the original and 14 copies of such comments should be submitted to the Secretary of the Commission, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426. 28. All comments will be placed in the Commission’s public files and may be viewed, printed, or downloaded remotely, as described in the Document Availability section below. Commenters on this proposal are not required to serve copies of their comments on other commenters. 62265 Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number, excluding the last three digits of this document in the docket number field (‘‘RM96–1’’), and in the subdocket number field type in the last three digits (‘‘036’’). 31. User assistance is available for eLibrary and the FERC’s Web site during the Commission’s normal business hours. For assistance, contact FERC Online Support by e-mail at FERCOnlineSupport@ferc.gov, or by telephone at 202–502–6652 (toll-free at (866) 208–3676) or for TTY, contact (202) 502–8659. List of Subjects in 18 CFR Part 284 Incorporation by reference, Natural gas, Reporting and recordkeeping requirements. By the Commission. Nathaniel J. Davis, Sr., Deputy 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 ACT 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. Section 284.12 is amended by revising paragraph (a)(1)(i) through (vii) to read as follows: § 284.12 Standards for pipeline business operations and communications. (a) * * * (1) * * * (i) Additional Standards (General Standards, Creditworthiness Standards and Gas/Electric Operational IX. Document Availability Communications Standards) (Version 29. In addition to publishing the full 1.9, September 30, 2009); text of this document in the Federal (ii) Nominations Related Standards Register, the Commission provides all (Version 1.9, September 30, 2009); interested persons an opportunity to (iii) Flowing Gas Related Standards view and/or print the contents of this (Version 1.9, September 30, 2009); document via the Internet through (iv) Invoicing Related Standards FERC’s Home Page (https://www.ferc.gov) (Version 1.9, September 30, 2009); and in FERC’s Public Reference Room (v) Quadrant Electronic Delivery during normal business hours (8:30 a.m. Mechanism Related Standards (Version to 5 p.m. Eastern time) at 888 First 1.9, September 30, 2009) with the Street, NE., Room 2A, Washington, DC exception of Standard 4.3.4; (vi) Capacity Release Related 20426. 30. From FERC’s Home Page on the Standards (Version 1.9, September 30, Internet, this information is available in 2009); and eLibrary. The full text of this document (vii) Internet Electronic Transport is available in eLibrary both in PDF and Related Standards (Version 1.9, PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 E:\FR\FM\27NOP1.SGM 27NOP1 62266 Federal Register / Vol. 74, No. 227 / Friday, November 27, 2009 / Proposed Rules September 30, 2009) with the exception of Standard 10.3.2. * * * * * [FR Doc. E9–28402 Filed 11–25–09; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Parts 28 and 44 [Docket No. TTB–2009–0005; Notice No. 101; Re: Notice No. 100] FOR FURTHER INFORMATION CONTACT: RIN 1513–AB77 Drawback of Internal Revenue Taxes; Extension of Comment Period Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Notice of proposed rulemaking; extension of comment period. jlentini on DSKJ8SOYB1PROD with PROPOSALS AGENCY: SUMMARY: In response to a request filed on behalf of an industry association, the Alcohol and Tobacco Tax and Trade Bureau is extending the comment period for Notice No. 100, a notice of proposed rulemaking published in the Federal Register on October 15, 2009, for an additional 30 days. The proposed rule sought comments on conforming amendments to our regulations to reflect proposed Customs and Border Protection regulations intended to clarify the relationship between tax payment under the Internal Revenue Code of 1986 and drawback of tax under the Tariff Act of 1930. DATES: The comment period for the proposed rule published on October 15, 2009 (74 FR 52937), is extended. Written comments on Notice No. 100 must now be received on or before January 14, 2010. ADDRESSES: You may send comments on Notice No. 100 to one of the following addresses: • https://www.regulations.gov: Use the comment form for this notice on the Federal e-rulemaking portal, Regulations.gov, to submit comments via the Internet; • Mail: Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044–4412. • Hand Delivery/Courier in Lieu of Mail: Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street, NW., Suite 200–E, Washington, DC 20005. See the Public Participation section of this notice for specific instructions and requirements for submitting comments, and for information on how to request a public hearing. VerDate Nov<24>2008 18:16 Nov 25, 2009 Jkt 220001 You may view copies of this notice, Notice No. 100, and the comments we receive on Notice No. 100 within Docket No. TTB–2009–0005 at https:// www.regulations.gov. A direct link to this docket is posted on the TTB Web site at https://www.ttb.gov/ regulations_laws/all_rulemaking.shtml under Notice No. 100. You also may view copies of those documents by appointment at the TTB Information Resource Center, 1310 G Street, NW., Washington, DC 20220. Please call 202– 453–2270 to make an appointment. Drafting Information Michael Hoover of the Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, drafted this document. Signed: November 23, 2009. John J. Manfreda, Administrator. [FR Doc. E9–28366 Filed 11–25–09; 8:45 am] BILLING CODE 4810–31–P DEPARTMENT OF THE INTERIOR Gerry Isenberg, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street, NW., Suite 200–E, Washington, DC 20220; telephone 202–453–2097. Office of Surface Mining Reclamation and Enforcement In Notice No. 100, published in the Federal Register on October 15, 2009 (74 FR 52937), the Alcohol and Tobacco Tax and Trade Bureau (TTB) proposed to amend its regulations to clarify the relationship between tax payment under the Internal Revenue Code of 1986 and drawback of tax under the Tariff Act of 1930. The proposal provides conforming amendments to reflect proposed Customs and Border Protection (CBP) regulations stating that domestic merchandise on which no tax is paid under the Internal Revenue Code may not be substituted for imported merchandise for purposes of claims for drawback of tax under the customs laws and regulations. The proposed CBP amendments to the customs regulations in 19 CFR parts 113 and 191 also were published in the Federal Register on October 15, 2009, as Docket No. USCBP–2009–0021 (74 FR 52928). On November 8, 2009, TTB received a letter from the American Petroleum Institute (API) requesting a 30-day extension of the comment period for Notice No. 100. The API letter cited the complexity of the proposed regulatory changes since the proposal involved both TTB and CBP regulations, the complexity of the drawback issue, which involves Constitutional issues and various judicial decisions, and the ‘‘potential far reaching implication’’ of the notice ‘‘to a wide range of industries and parties.’’ API also noted that it was submitting a similar request to CBP regarding its October 15, 2009, proposed rule. Given the factors cited above, TTB agrees that the comment period for Notice No. 100 should be extended by an additional 30 days. Therefore, comments on Notice No. 100 are now due on January 14, 2010. Kentucky Regulatory Program SUPPLEMENTARY INFORMATION: PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 30 CFR Part 917 [KY–252–FOR; OSM–2009–0011] AGENCY: Office of Surface Mining Reclamation and Enforcement (OSM), Interior. ACTION: Proposed rule; public comment period and opportunity for public hearing on amendment. SUMMARY: We are announcing receipt of an amendment to the Kentucky regulatory program (hereinafter, the ‘‘Kentucky program’’) under the Surface Mining Control and Reclamation Act of 1977 (SMCRA or the Act). Kentucky submitted revisions to its administrative regulations pertaining to the disposal of coal mine waste. Kentucky intends to revise its program to be consistent with the corresponding Federal regulations and SMCRA. This document gives the times and locations that the Kentucky program and this submittal are available for your inspection, the comment period during which you may submit written comments, and the procedures that we will follow for the public hearing, if one is requested. DATES: We will accept written comments until 4 p.m., e.s.t., December 28, 2009. If requested, we will hold a public hearing on December 22, 2009. We will accept requests to speak until 4 p.m., e.s.t., on December 14, 2009. ADDRESSES: You may submit comments, identified by ‘‘KY–252–FOR/Docket Number OSM–2009–0011’’ by either of the following two methods: Federal eRulemaking Portal: https:// www.regulations.gov. The proposed rule has been assigned Docket ID: OSM–2009–0011. If you would like to submit comments through the Federal eRulemaking Portal, go to https:// www.regulations.gov and follow the instructions. E:\FR\FM\27NOP1.SGM 27NOP1

Agencies

[Federal Register Volume 74, Number 227 (Friday, November 27, 2009)]
[Proposed Rules]
[Pages 62261-62266]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-28402]


=======================================================================
-----------------------------------------------------------------------

FEDERAL ENERGY REGULATORY COMMISSION

18 CFR Part 284

[Docket No. RM96-1-036]


Standards for Business Practices for Interstate Natural Gas 
Pipelines

Issued November 19, 2009.
AGENCY: Federal Energy Regulatory Commission.

[[Page 62262]]


ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
proposing to amend its regulations at 18 CFR 284.12 to incorporate by 
reference the latest version (Version 1.9) of business practice 
standards adopted by the Wholesale Gas Quadrant of the North American 
Energy Standards Board (NAESB) applicable to natural gas pipelines. The 
proposed standards include standards adopted in response to Order Nos. 
698, 712, 717 and 682, as well as standards related to transactional 
reporting, NAESB contracts, communication protocols and technical 
standards. These standards can be obtained from NAESB at 1301 Fannin, 
Suite 2350, Houston, TX 77002, phone: 713-356-0060, https://www.naesb.org, and are available for viewing in the Commission's Public 
Reference Room.

DATES: Comments are due January 11, 2010.

ADDRESSES: You may submit comments, identified by Docket No. RM96-1-
036, by any of these methods:
     Agency Web site: https://www.ferc.gov. Documents created 
electronically using word processing software should be filed in native 
applications or print-to-PDF format and not in a scanned format.
     Mail/Hand Delivery: Commenters unable to file comments 
electronically must mail or hand deliver an original and 14 copies of 
their comments to: Federal Energy Regulatory Commission, Secretary of 
the Commission, 888 First Street, NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT: Bruce McAllister (technical issues), 
Office of Energy Policy and Innovation, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
8296. Gary D. Cohen (legal issues), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8321.

SUPPLEMENTARY INFORMATION:
    1. The Federal Energy Regulatory Commission (Commission) proposes 
to amend its regulations at 18 CFR 284.12 to incorporate by reference 
the latest version (Version 1.9) of business practice standards adopted 
by the Wholesale Gas Quadrant (WGQ) of the North American Energy 
Standards Board (NAESB) applicable to natural gas pipelines.

I. Background

    2. Since 1996, the Commission has adopted regulations to 
standardize the business practices and communication methodologies of 
interstate natural gas pipelines to create a more integrated and 
efficient pipeline grid. These regulations have been promulgated in the 
Order No. 587 series of orders,\1\ wherein the Commission has 
incorporated by reference standards for interstate natural gas pipeline 
business practices and electronic communications that were developed 
and adopted by NAESB's WGQ. Upon incorporation by reference by the 
Commission, interstate natural gas pipelines must comply with the 
requirements contained in the standards.
---------------------------------------------------------------------------

    \1\ This series of orders began with the Commission's issuance 
of Standards for Business Practices of Interstate Natural Gas 
Pipelines, Order No. 587, FERC Stats. & Regs. ] 31,038 (1996).
---------------------------------------------------------------------------

    3. On July 16, 2009, the Commission issued a Notice of Proposed 
Rulemaking (July 16 NOPR) proposing to incorporate into the Commission 
regulations by reference business practice standards adopted by NAESB's 
WGQ for index-based pricing for capacity releases and for increasing 
the flexibility of gas receipt and delivery points.\2\ Comments on this 
notice have been received and the matter is currently pending 
Commission action. These WGQ standards were filed with the Commission 
September 14, 2007 and created and modified existing standards.
---------------------------------------------------------------------------

    \2\ Standards for Business Practices of Interstate Natural Gas 
Pipelines, 74 FR 36633 (July 24, 2009), FERC Stats. & Regs. ] 32,645 
(July 16, 2009).
---------------------------------------------------------------------------

    4. On September 30, 2009, NAESB filed a report informing the 
Commission that it had adopted and ratified Version 1.9 of its business 
practice standards applicable to natural gas pipelines. Both this NOPR 
and the July 16 NOPR are the result of a continuing effort by NAESB and 
the gas industry to add additional specificity and functionality to gas 
standards in several areas. For example, new or revised standards in 
Version 1.9 include communication standards and protocols related to 
the business practice standards dealing with index-based capacity 
release, which the Commission proposed to adopt in the July 16 NOPR, 
and new standards adopted in response to Order Nos. 698, 712, 717 and 
682. These new and modified standards support the ability of pipelines 
to redirect gas around constraints, provide additional gas quality and 
transactional reporting, and create new standards for index-based 
capacity release transactions and new information posting requirements 
for Web sites and browsers.

II. Significant Changes and Additions Contained in the Version 1.9 
Standards

A. Standards To Support Order No. 698 and Order No. 712

    5. In Order Nos. 698 and 698-A, the Commission requested that NAESB 
develop or modify standards for business practices: (1) For index-based 
pricing for capacity release transactions; (2) to allow for increased 
receipt and delivery point flexibility through the use of redirects of 
scheduled quantities; and (3) to modify the existing intra-day 
nomination timeline.\3\
---------------------------------------------------------------------------

    \3\ Standards for Business Practices for Interstate Natural Gas 
Pipelines, Order No. 698, FERC Stats. & Regs. ] 31,251 (2007), order 
on clarification and reh'g, Order No. 698-A, 121 FERC ] 61,264 
(2007).
---------------------------------------------------------------------------

    6. In response to Order Nos. 698 and 698-A, NAESB's WGQ Business 
Practice Subcommittee (BPS) adopted revised standards allowing index-
based pricing for capacity release transactions,\4\ and developed a 
business practice standard to allow for increased receipt and delivery 
point flexibility through the use of redirects of scheduled quantities. 
NAESB was unable to reach consensus on standards relating to the intra-
day nomination timeline. The July 16 NOPR addressed the business 
practice standards developed by NAESB in these areas.
---------------------------------------------------------------------------

    \4\ These included modification of three WGQ business practice 
standards, and the development of ten new WGQ business practice 
standards and two new WGQ definitions. These revisions are included 
in the standards presented in NAESB's September 2009 Report to the 
Commission. These revisions were first discussed in another NAESB 
report (submitted on September 3, 2008) in which the WGQ BPS 
discussed these business practices and the record developed by the 
WGQ BPS and WGQ EC as they were considered.
---------------------------------------------------------------------------

    7. The Version 1.9 Standards provide details on the technical 
implementation \5\ of index-based pricing for capacity release, and is 
coordinated with some of the changes developed to accommodate the 
determinations in Order Nos. 712 and 712-A \6\ with respect to capacity 
release standards.\7\
---------------------------------------------------------------------------

    \5\ Technical implementation is accomplished through the 
identification of the data required to support the transactions, 
definitions of information and mapping of those data into specific 
electronic transactions. This is outlined in the WGQ Capacity 
Release Related Standards section of Version 1.9.
    \6\ Promotion of a More Efficient Capacity Release Market, Order 
No. 712, FERC Stats. & Regs. ] 31,271 (2008), order on reh'g, Order 
No. 712-A, FERC Stats. & Regs. ] 31,284 (2008).
    \7\ The standards include new NAESB WGQ Definitions Nos. 5.2.4 & 
5.2.5, NAESB WGQ Standard Nos. 5.3.1, 5.3.3, 5.3.26, and 5.3.61--
5.3.69 and modifications to NAESB WGQ Standards Nos. 5.3.1, 5.3.3 
and 5.3.26 and complementary modifications to the related data sets.
---------------------------------------------------------------------------

B. Standards To Support Order No. 717

    8. In Order No. 717, the Commission amended the Standards of 
Conduct for

[[Page 62263]]

Transmission Providers.\8\ In response to Order No. 717, the WGQ 
Business Practice Subcommittee made modifications to NAESB WGQ Standard 
No. 4.3.23 related to the Transportation Service Providers' 
requirements for their Informational Postings Web site. The modified 
standard includes a Standards of Conduct section where information can 
be posted regarding affiliate or corporate transactions as well as 
posting requirements for the Informational Postings Web site.
---------------------------------------------------------------------------

    \8\ Standards of Conduct for Transmission Providers, Order No. 
717, FERC Stats. & Regs. ] 31,280 at P 1 (2008).
---------------------------------------------------------------------------

C. Posting of Gas Quality Information

    9. NAESB modified Gas Quality Standards Nos. 4.3.90 and 4.3.92 and 
also added a new gas quality standard.\9\ The Version 1.9 Standards 
related to the posting of gas quality information includes posting and 
format requirements, provisions for Transportation Service Providers to 
report hydrocarbon liquid drop out measurements and Informational 
Postings Web site criteria.
---------------------------------------------------------------------------

    \9\ As discussed below, two other new gas quality standards 
failed to be adopted.
---------------------------------------------------------------------------

D. Internet Communication Standards

    10. NAESB made a variety of technical and clean up revisions to the 
standards. Several standards were modified in response to the Sandia 
National Laboratories' security assessment of the NAESB communication 
standards. NAESB also modified the standards to reflect changes in the 
use of software used on the Internet, including support for Adobe Flash 
Player and Active X control as Internet browser plug-ins, Mozilla 
Firefox as another browser option, and the removal of Netscape as a 
supporting browser.

III. Discussion

    11. In this NOPR, the Commission proposes to incorporate by 
reference in its regulations Version 1.9 of the NAESB WGQ's consensus 
standards,\10\ with two exceptions.\11\ Adoption of Version 1.9 will 
continue the process of updating and improving NAESB's business 
practice standards for the benefit of the wholesale gas market. The 
most noteworthy of the standards are those addressing recent changes to 
the Commission's regulations in Order Nos. 698 (gas-electric 
coordination), 712 (capacity release), and 717 (standards of conduct), 
and additional standards and revisions to standards that address 
pipelines' posting of gas quality information, and Internet security 
and communications.
---------------------------------------------------------------------------

    \10\ In its Version 1.9 Standards, the WEQ made the following 
changes to its Version 1.8 standards: New Definitions Nos. 5.24, 
5.25, and 11.21-11.2.5; Modified Definitions Nos. 10.2.8, 10.2.14, 
10.2.24, 10.2.30-10.2.34, 10.2.37, and 10.2.38; New Standards Nos. 
0.3.16, 0.3.17, 1.3.80, 4.3.94-4.3.99, 5.3.1, 5.3.3, 5.3.26, 5.3.61-
5.3.69, 10.1.10, 10.3.26, 10.3.27 11.31, and 11.32; Modified 
Standards Nos. 4.1.39, 4.3.16, 4.3.23, 4.3.26, 4.3.29, 4.3.32, 
4.3.33, 4.3.90, 4.3.92, 5.3.1, 5.3.3, 5.3.26, 10.2.8, 10.2.14, 
10.2.24, 10.2.3-10.2.34, 10.2.37, 10.2.38, 10.3.13, 10.3.15, and 
10.3.17; and miscellaneous maintenance clean-up revisions.
    \11\ The Commission is continuing its past practice and is not 
proposing to incorporate by reference Standards 4.3.4 and 10.3.2., 
because they are inconsistent with the Commission's record retention 
requirement in 18 CFR 284.12(b)(3)(v). See, e.g., Standards for 
Business Practices for Interstate Natural Gas Pipelines, Final Rule, 
Order No. 587-T, FERC Stats. & Regs. ] 31,289 at P 5 & n.9 (2009).
---------------------------------------------------------------------------

    12. In addition, the Version 1.9 standards include new or revised 
standards that the Commission proposed to adopt in the July 16 NOPR; 
these standards included updated communication protocols and other 
standards for implementing the Commission's findings on improving 
index-priced capacity release transactions and flexibility to designate 
receipt and delivery points adopted in response to Order No. 698. New 
standards in Version 1.9 include business practices and communication 
protocols for implementing asset management agreements and the removal 
of the price ceiling for capacity release transactions as permitted 
under Order No. 712. They also contain revisions to the posting 
requirements for affiliate information to be consistent with the new 
requirements of Order No. 717. In addition, they contain further 
refinements to the standards for posting gas quality information on 
pipeline Web sites, in particular requirements for formatting 
downloadable files. Finally, they contain standards that help to better 
ensure the security of Internet communications and to accommodate 
software changes in Internet usage.
    13. NAESB reports that two of its new gas quality standards failed 
to pass as a result of a single segment failing to approve the 
standard. One of the blocked standards would have required a pipeline 
that currently does not post a Wobbe number \12\ to post gas quality 
information on its Web site and to calculate and post a Wobbe number 
when notified by a Service Requestor of its desire to begin discussing 
the interchangeability of gas supplies. The other blocked standard 
would have added to an existing requirement that pipelines propose an 
additional requirement that three months of historical gas quality data 
be downloadable based on a given date range.
---------------------------------------------------------------------------

    \12\ The Wobbe number or Wobbe index is named after Goffredo 
Wobbe, an Italian physicist who developed a formula to compare the 
characteristics of two gasses. The Wobbe index is a measure of the 
physical combustion characteristics of natural gas used in the 
natural gas industry to ensure that natural gas from different 
sources is compatible with gas-burning equipment in a particular 
service area. See Williams, Technical Background and Issues of Gas 
Interchangeability, 27 (AGA Staff Paper, 2006) (https://www.aga.org/NR/rdonlyres/C9D9FB1D-E244-4B9D-9C67-5FA74C24A8E0/0/0604GASINTERCHANGEABILITYSTAFFPAPER.pdf.).
---------------------------------------------------------------------------

    14. The Commission does not currently require pipelines to use the 
Wobbe number in calculating gas quality, and NAESB's September 30 
Report shows that no consensus to approve such a requirement has been 
achieved. Nor has any showing been made of a need for a nationwide 
requirement for providing a Wobbe number applicable to those pipelines 
whose tariffs do not require the use of a Wobbe number. Accordingly, 
the Commission is not proposing to create any such requirement in this 
NOPR. Issues regarding gas quality, including the use of the Wobbe 
number, can be addressed in individual Commission proceedings involving 
gas quality when relevant. With respect to the blocked standard 
regarding downloading, the existing NAESB standards, 4.3.90, 4.3.91, 
and 4.3.92, already require pipelines to provide a downloadable file, 
with a standardized file format, of gas quality information for each 
identified location for a three month period. We therefore see no need 
for Commission intervention on the question of whether it is more 
efficient for the pipeline or the shipper to select the date range from 
the data provided.
    15. As the Commission found in Order No. 587, adoption of consensus 
standards is appropriate because the consensus process helps ensure the 
reasonableness of the standards by requiring that the standards draw 
support from a broad spectrum of industry participants representing all 
segments of the industry.\13\ Moreover, since the industry itself has 
to conduct business under these standards, the Commission's regulations 
should reflect those standards that have the widest possible support. 
In section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTT&AA), Congress affirmatively requires federal

[[Page 62264]]

agencies to use technical standards developed by voluntary consensus 
standards organizations, like NAESB, as means to carry out policy 
objectives or activities.\14\
---------------------------------------------------------------------------

    \13\ The NAESB process first requires a super-majority vote of 
17 out of 25 members of the WGQ's Executive Committee with support 
from at least two members from each of the five industry segments--
Distributors, End Users, Pipelines, Producers, and Services 
(including marketers and computer service providers). For final 
approval, 67 percent of the WGQ's general membership voting must 
ratify the standards.
    \14\ Public Law No. 104-113, section 12(d), 110 Stat. 775 
(1996), 15 U.S.C. 272 note (1997).
---------------------------------------------------------------------------

    16. The Commission proposes that natural gas pipelines be required 
to implement the Version 1.9 Standards on the first day of the month 
three months after a final rule is issued. Based on past practice, we 
are proposing this implementation schedule to give the natural gas 
pipelines subject to these standards adequate time to prepare to 
implement for these changes. In addition, the Commission proposes that 
pipelines be required to file tariff sheets to reflect the changed 
standards two months before the implementation date.

IV. Notice of Use of Voluntary Consensus Standards

    17. Office of Management and Budget Circular A-119 (section 11) 
(February 10, 1998) provides that federal agencies should publish a 
request for comment in a NOPR when the agency is seeking to issue or 
revise a regulation proposing to adopt a voluntary consensus standard 
or a government-unique standard. In this NOPR, the Commission is 
proposing to incorporate by reference voluntary consensus standards 
developed by the WGQ.

V. Information Collection Statement

    18. The following collection of information contained in this 
proposed rule has been submitted to the Office of Management and Budget 
(OMB) for review under section 3507(d) of the Paperwork Reduction Act 
of 1995, 44 U.S.C. 3507(d). The Commission solicits comments on the 
Commission's need for this information, whether the information will 
have practical utility, the accuracy of the provided burden estimates, 
ways to enhance the quality, utility, and clarity of the information to 
be collected, and any suggested methods for minimizing respondents' 
burden, including the use of automated information techniques. The 
following burden estimates include the costs to implement the WGQ's 
definitions and business practice standards for interstate natural gas 
pipelines and electronic communication protocols. The burden estimates 
are primarily related to start-up to implement these standards and 
regulations and will not result in ongoing costs.

----------------------------------------------------------------------------------------------------------------
                                                                     Number of
                 Data collection                     Number of     responses per     Hours per     Total number
                                                    respondents     respondent       response        of hours
----------------------------------------------------------------------------------------------------------------
FERC-549C.......................................             168               1              22           3,696
                                                 ---------------------------------------------------------------
    Totals......................................  ..............  ..............  ..............           3,696
----------------------------------------------------------------------------------------------------------------

    Total Annual Hours for Collection (Reporting and Recordkeeping, (if 
appropriate)) = 3,696.
    Information Collection Costs: The Commission seeks comments on the 
costs to comply with these requirements. It has projected the average 
annualized cost for all respondents to be the following: \15\
---------------------------------------------------------------------------

    \15\ The total annualized cost for the two information 
collections is $554,400. This number is reached by multiplying the 
total hours to prepare a response (hours) by an hourly wage estimate 
of $150 (a composite estimate that includes legal, technical and 
support staff rates). $554,400 = $150 x 3,696.

------------------------------------------------------------------------
                                                      FERC-549C
------------------------------------------------------------------------
Annualized Capital/Startup Costs..........  $554,400
Annualized Costs (Operations &              N/A
 Maintenance).
                                           -----------------------------
    Total Annualized Costs................  $554,400
------------------------------------------------------------------------

    19. OMB regulations \16\ require OMB to approve certain information 
collection requirements imposed by agency rule. The Commission is 
submitting notification of this proposed rule to OMB. These information 
collections are mandatory requirements.
---------------------------------------------------------------------------

    \16\ 5 CFR 1320.11.
---------------------------------------------------------------------------

    Title: Standards for Business Practices of Interstate Natural Gas 
Pipelines (FERC-549C).
    Action: Proposed collections.
    OMB Control No.: 1902-0174.
    Respondents: Business or other for profit, (Natural Gas Pipelines 
(not applicable to small businesses.))
    Frequency of Responses: One-time implementation (business 
procedures, capital/start-up).
    Necessity of Information: The proposals in this NOPR would, if 
implemented, upgrade the Commission's current business practices and 
communication standards in response to the Commission's determinations 
in Order Nos. 682, 698, 698-A, 712 and 717, and would: revise standards 
allowing index-based pricing for capacity release transactions and 
allow for increased receipt and delivery point flexibility through the 
use of redirects of scheduled quantities; create information posting 
requirements for Web sites and browsers; require the posting of gas 
quality information including posting and format requirements; report 
hydrocarbon liquid drop out measurements; and create standards to 
reflect changes in the use of software used on the Internet.
    20. The implementation of these data requirements will increase the 
efficiency of the capacity release market and the ability to schedule 
gas around constraints, will provide additional transparency to 
informational posting Web sites, will improve gas quality measurements 
and will improve communication standards. The implementation of these 
standards and regulations will promote the additional efficiency and 
reliability of the gas industries' operations thereby helping the 
Commission to carry out its responsibilities under the Natural Gas Act 
of promoting the efficiency and reliability of the gas industries' 
operations. In addition, the Commission's Office of Energy Market and 
Regulation will use the data for general industry oversight.
    21. Internal Review: The Commission has reviewed the requirements 
pertaining to business practices of natural gas pipelines and made a 
preliminary determination that the proposed revisions are necessary to 
establish more efficient coordination between the gas and electric 
industries. Requiring such information ensures both a common means of 
communication and common business practices to limit miscommunication 
for participants engaged in the sale of electric energy at wholesale 
and the transportation of natural gas. These requirements conform to 
the Commission's plan for efficient information collection, 
communication, and management within the natural gas pipeline 
industries. The Commission has assured itself, by means of its

[[Page 62265]]

internal review, that there is specific, objective support for the 
burden estimates associated with the information requirements.
    22. Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, Attn: Michael Miller, Office of the Executive Director, 888 
First Street, NE., Washington, DC 20426 Tel: (202) 502-8415/Fax: (202) 
273-0873, E-mail: michael.miller@ferc.gov.
    23. Comments concerning the collection of information(s) and the 
associated burden estimate(s), should be sent to the contact listed 
above and to the Office of Management and Budget, Office of Information 
and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer 
for the Federal Energy Regulatory Commission, phone: (202) 395-4638, 
fax: (202) 395-7285].

VI. Environmental Analysis

    24. The Commission is required to prepare an Environmental 
Assessment or an Environmental Impact Statement for any action that may 
have a significant adverse effect on the human environment.\17\ The 
Commission has categorically excluded certain actions from these 
requirements as not having a significant effect on the human 
environment.\18\ The actions proposed here fall within categorical 
exclusions in the Commission's regulations for rules that are 
clarifying, corrective, or procedural, for information gathering, 
analysis, and dissemination, and for sales, exchange, and 
transportation of natural gas that requires no construction of 
facilities.\19\ Therefore, an environmental assessment is unnecessary 
and has not been prepared as part of this NOPR.
---------------------------------------------------------------------------

    \17\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act of 1969, FERC Stats. & Regs. ] 30,783 
(1987).
    \18\ 18 CFR 380.4.
    \19\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
---------------------------------------------------------------------------

VII. Regulatory Flexibility Act Certification

    25. The Regulatory Flexibility Act of 1980 (RFA) \20\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
In drafting a rule an agency is required to: (1) Assess the effect that 
its regulation will have on small entities; (2) analyze effective 
alternatives that may minimize a regulation's impact; and (3) make the 
analysis available for public comment.\21\ Based on our analysis of the 
requirements proposed in this NOPR, we do not think the proposed rule 
will have a significant impact on a substantial number of small 
entities.
---------------------------------------------------------------------------

    \20\ 5 U.S.C. 601-612.
    \21\ 5 U.S.C. 601-604.
---------------------------------------------------------------------------

VIII. Comment Procedures

    26. The Commission invites interested persons to submit written 
comments on the NAESB business practice standards proposed for 
incorporation by reference in this NOPR, as well as any related matters 
or alternative proposals that commenters may wish to discuss. Comments 
are due January 11, 2010. Comments must refer to Docket No. RM96-1-036, 
and must include the commenter's name, the organization they represent, 
if applicable, and their address. Comments may be filed either in 
electronic or paper format.
    27. Comments may be filed electronically via the eFiling link on 
the Commission's Web site at https://www.ferc.gov. The Commission 
accepts most standard word processing formats and commenters may attach 
additional files with supporting information in certain other file 
formats. Commenters filing electronically do not need to make a paper 
filing. Commenters unable to file comments electronically must send an 
original and 14 copies of their comments to: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street, NE., 
Washington, DC 20426. For paper filings, the original and 14 copies of 
such comments should be submitted to the Secretary of the Commission, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426.
    28. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely, as described in the 
Document Availability section below. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.

IX. Document Availability

    29. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
Internet through FERC's Home Page (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.
    30. From FERC's Home Page on the Internet, this information is 
available in eLibrary. The full text of this document is available in 
eLibrary both in PDF and Microsoft Word format for viewing, printing, 
and/or downloading. To access this document in eLibrary, type the 
docket number, excluding the last three digits of this document in the 
docket number field (``RM96-1''), and in the subdocket number field 
type in the last three digits (``036'').
    31. User assistance is available for eLibrary and the FERC's Web 
site during the Commission's normal business hours. For assistance, 
contact FERC Online Support by e-mail at FERCOnlineSupport@ferc.gov, or 
by telephone at 202-502-6652 (toll-free at (866) 208-3676) or for TTY, 
contact (202) 502-8659.

List of Subjects in 18 CFR Part 284

    Incorporation by reference, Natural gas, Reporting and 
recordkeeping requirements.

    By the Commission.
Nathaniel J. Davis, Sr.,
Deputy 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 ACT 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. Section 284.12 is amended by revising paragraph (a)(1)(i) 
through (vii) to read as follows:


Sec.  284.12  Standards for pipeline business operations and 
communications.

    (a) * * *
    (1) * * *
    (i) Additional Standards (General Standards, Creditworthiness 
Standards and Gas/Electric Operational Communications Standards) 
(Version 1.9, September 30, 2009);
    (ii) Nominations Related Standards (Version 1.9, September 30, 
2009);
    (iii) Flowing Gas Related Standards (Version 1.9, September 30, 
2009);
    (iv) Invoicing Related Standards (Version 1.9, September 30, 2009);
    (v) Quadrant Electronic Delivery Mechanism Related Standards 
(Version 1.9, September 30, 2009) with the exception of Standard 4.3.4;
    (vi) Capacity Release Related Standards (Version 1.9, September 30, 
2009); and
    (vii) Internet Electronic Transport Related Standards (Version 1.9,

[[Page 62266]]

September 30, 2009) with the exception of Standard 10.3.2.
* * * * *
[FR Doc. E9-28402 Filed 11-25-09; 8:45 am]
BILLING CODE 6717-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.