Commission Information Collection Activities (FERC Form Nos. 6 and 6-Q); Comment Request; Extension, 32913-32915 [2019-14674]
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Federal Register / Vol. 84, No. 132 / Wednesday, July 10, 2019 / Notices
Interconnection Agreement First Amend
& Restated to be effective 6/14/2019.
Filed Date: 7/2/19.
Accession Number: 20190702–5168.
Comments Due: 5 p.m. ET 7/23/19.
The filings are accessible in the
Commission’s eLibrary system by
clicking on the links or querying the
docket number.
Any person desiring to intervene or
protest in any of the above proceedings
must file in accordance with Rules 211
and 214 of the Commission’s
Regulations (18 CFR 385.211 and
385.214) on or before 5:00 p.m. Eastern
time on the specified comment date.
Protests may be considered, but
intervention is necessary to become a
party to the proceeding.
eFiling is encouraged. More detailed
information relating to filing
requirements, interventions, protests,
service, and qualifying facilities filings
can be found at: https://www.ferc.gov/
docs-filing/efiling/filing-req.pdf. For
other information, call (866) 208–3676
(toll free). For TTY, call (202) 502–8659.
Dated: July 2, 2019.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2019–14643 Filed 7–9–19; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. IC19–20–000]
Commission Information Collection
Activities (FERC Form Nos. 6 and 6–
Q); Comment Request; Extension
Federal Energy Regulatory
Commission.
ACTION: Notice of information
collections and request for comments.
AGENCY:
In compliance with the
requirements of the Paperwork
Reduction Act of 1995 (PRA), the
Federal Energy Regulatory Commission
(Commission or FERC) is soliciting
public comment on the currently
approved information collections FERC
Form Nos. 6 (Annual Report of Oil
Pipeline Companies) and 6–Q
(Quarterly Report of Oil Pipeline
Companies) and submitting the
information collections to the Office of
Management and Budget (OMB) for
review. Any interested person may file
comments directly with OMB and
should address a copy of those
comments to the Commission as
explained below. On April 15, 2019, the
Commission published a Notice in the
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SUMMARY:
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Federal Register in Docket No. IC19–
20–000 requesting public comments.
The Commission received two public
comments and will indicate that in its
submittals to OMB.
DATES: Comments on the collections of
information are due August 9, 2019.
ADDRESSES: Comments filed with OMB,
identified by OMB Control Nos.: 1902–
0022 (FERC Form No. 6) and 1902–0206
(FERC Form No. 6–Q), should be sent
via email to the Office of Information
and Regulatory Affairs: oira_
submission@omb.gov. Attention:
Federal Energy Regulatory Commission
Desk Officer.
A copy of the comments should also
be sent to the Commission, in Docket
No. IC19–20–000, by either of the
following methods:
• eFiling at Commission’s Website:
https://www.ferc.gov/docs-filing/
efiling.asp.
• Mail/Hand Delivery/Courier:
Federal Energy Regulatory Commission,
Secretary of the Commission, 888 First
Street NE, Washington, DC 20426.
Instructions: All submissions must be
formatted and filed in accordance with
submission guidelines at: https://
www.ferc.gov/help/submissionguide.asp. For user assistance, contact
FERC Online Support by email at
ferconlinesupport@ferc.gov, or by phone
at: (866) 208–3676 (toll-free), or (202)
502–8659 for TTY.
Docket: Users interested in receiving
automatic notification of activity in this
docket or in viewing/downloading
comments and issuances in this docket
may do so at https://www.ferc.gov/docsfiling/docs-filing.asp.
FOR FURTHER INFORMATION CONTACT:
Ellen Brown by email at
DataClearance@FERC.gov, telephone at
(202) 502–8663, and fax at (202) 273–
0873.
SUPPLEMENTARY INFORMATION:
Titles: FERC Form Nos. 6 (Annual
Report of Oil Pipeline Companies) and
6–Q (Quarterly Report of Oil Pipeline
Companies).
OMB Control Nos.: 1902–0022 (FERC
Form No. 6) and 1902–0206 (FERC Form
No.6–Q).
Type of Respondent: Oil pipeline.
Type of Request: Three-year extension
of FERC Form Nos. 6 and 6–Q
information collections with no changes
to the current reporting and
recordkeeping requirements.1
1 FERC Form Nos. 6 and 6–Q are part of the
‘‘Forms Refresh’’ effort, which is a separate activity
and not addressed here. See Revisions to the Filing
Process for Commission Forms, 166 FERC ¶ 61,027
(2019) (started in Docket No. AD15–11 and ongoing
in Docket No. RM19–12). (OMB issued its decisions
on the proposed changes in the Forms Refresh
PO 00000
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32913
Abstract: Under the Interstate
Commerce Act (ICA),2 the Commission
is authorized and empowered to make
investigations and to collect and record
data to the extent the Commission may
consider to be necessary or useful for
the purpose of carrying out the
provisions of the ICA. The Commission
must ensure just and reasonable rates
for transportation of crude oil and
petroleum products by pipelines in
interstate commerce.
FERC Form No. 6, Annual Report of Oil
Pipeline Companies
In 1977, the Department of Energy
Organization Act transferred to the
Commission from the Interstate
Commerce Commission (ICC) the
responsibility to regulate oil pipeline
companies. In accordance with the
transfer of authority, the Commission
was delegated the responsibility to
require oil pipelines to file annual
reports of information necessary for the
Commission to exercise its statutory
responsibilities.3 The transfer included
the ICC Form P, the predecessor to
FERC Form No. 6.4
To reduce burden on industry, FERC
Form No. 6 has three tiers of reporting
requirements:
1. Each oil pipeline carrier whose
annual jurisdictional operating revenues
has been $500,000 or more for each of
the three previous calendar years must
file FERC Form No. 6 (18 CFR 357.2 (a)).
Oil pipeline companies subject to the
provisions of section 20 of the ICA must
submit FERC Form No. 6–Q. 18 CFR
357.4(b)). Newly established entities
must use projected data to determine
whether FERC Form No. 6 must be filed.
2. Oil pipeline carriers exempt from
filing FERC Form No. 6 whose annual
Notice of Proposed Rulemaking in Docket No.
RM19–12 on March 14, 2019.) In addition, this
submittal does not reflect Docket No. RM15–19
(Petition for a Rulemaking of the Liquids Shippers
Group, et al., (2015)) and Docket No. RM17–1
(Revisions to Indexing Policies and Page 700 of
FERC Form No. 6 (2016)).
2 49 U.S.C. part 1, Section 20, 54 Stat. 916.
3 Section 402(b) of the Department of Energy
Organization Act (DOE Act), 42 U.S.C. 7172
provides that; ‘‘[t]here are hereby transferred to, and
vested in, the Commission all functions and
authority of the Interstate Commerce Commission
or any officer or component of such Commission
where the regulatory function establishes rates or
charges for the transportation of oil by pipeline or
established the valuation of any such pipeline.’’
4 The ICC developed the Form P to collect
information on an annual basis to enable it to carry
out its regulation of oil pipeline companies under
the Interstate Commerce Act. A comprehensive
review of the reporting requirements for oil pipeline
companies was performed on September 21, 1982,
when the Commission issued Order No. 260
revising the former ICC Form P, ‘‘Annual Report of
Carriers by Pipeline’’ and redesignating it as FERC
Form No. 6, ‘‘Annual Report of Oil Pipeline
Companies’’.
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jurisdictional operating revenues have
been more than $350,000 but less than
$500,000 for each of the three previous
calendar years must prepare and file
page 301, ‘‘Operating Revenue Accounts
(Account 600), and page 700, ‘‘Annual
Cost of Service Based Analysis
Schedule,’’ of FERC Form No. 6. When
submitting pages 301 and 700, each
exempt oil pipeline carrier must include
page 1 of FERC Form No. 6, the
Identification and Attestation schedules
(18 CFR 357.2(a)(2)).
3. Oil pipeline carriers exempt from
filing FERC Form No. 6 and pages 301
and whose annual jurisdictional
operating revenues were $350,000 or
less for each of the three previous
calendar years must prepare and file
page 700, ‘‘Annual Cost of Service
Based Analysis Schedule,’’ of FERC
Form No. 6. When submitting page 700,
each exempt oil pipeline carrier must
include page 1 of FERC Form No. 6, the
Identification and Attestation schedule
(18 CFR 357.2(a)(3)).
The Commission uses the data in
FERC Form Nos. 6 and 6–Q to perform
audits and reviews on the financial
condition of oil pipelines; assess energy
markets; conduct oil pipeline rate
proceedings and economic analysis;
conduct research for use in
administrative litigation; and administer
the requirements of the ICA. Data from
FERC Form No. 6 facilitates the
calculation of the actual rate of return
on equity for oil pipelines. The actual
rate of return on equity is particularly
useful information when evaluating a
pipeline’s rates.
The Commission also uses data on
Page 301 of FERC Form No. 6 to
compute annual charges which are then
assessed against oil pipeline companies
to recover the Commission’s annual
costs as mandated by Order No. 472.
The annual charges are required by
Section 3401 of the Omnibus Budget
Reconciliation Act of 1986.
Furthermore, the majority of state
regulatory commissions use FERC Form
Nos. 6 and 6–Q and the Commission’s
Uniform System of Accounts (USofA) to
satisfy their reporting requirements for
those companies under their
jurisdiction. In addition, the public uses
the data in FERC Form Nos. 6 and 6–
Q to assist in monitoring rates, the
financial condition of the oil pipeline
industry, and in assessing energy
markets.
FERC Form No. 6–Q, Quarterly Report
of Oil Pipeline Companies
Oil pipeline companies subject to the
provisions of section 20 of the ICA must
submit FERC Form No. 6–Q. 18 CFR
357.4(b)). The Commission uses the
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information collected in FERC Form No.
6–Q to carry out its responsibilities in
implementing the statutory provisions
of the ICA to include the authority to
prescribe rules and regulations
concerning accounts, records, and
memoranda, as necessary or
appropriate. Financial accounting and
reporting provides necessary
information concerning a company’s
past performance and its future
prospects. Without reliable financial
statements prepared in accordance with
the Commission’s USofA and related
regulations, it would be difficult for the
Commission to accurately determine the
costs that relate to a particular time
period, service, or line of business.
The Commission uses data from FERC
Form No. 6–Q to assist in: (1)
Implementation of its financial audits
and programs; (2) continuous review of
the financial condition of regulated
companies; (3) assessment of energy
markets; (4) rate proceedings and
economic analyses; and (5) research for
use in litigation.
Financial information reported on the
quarterly FERC Form No. 6–Q provides
the Commission, as well as customers,
investors and others, an important tool
to help identify emerging trends and
issues affecting jurisdictional entities
within the energy industry. It also
provides timely disclosures of the
impacts that new accounting standards,
or changes in existing standards, have
on jurisdictional entities, as well as the
economic effects of significant
transactions, events, and circumstances.
The reporting of this information by
jurisdictional entities assists the
Commission in its analysis of
profitability, efficiency, risk, and in its
overall monitoring.
Comments: Two commenters, the
Bureau of Economic Analysis (BEA) 5
and the Liquids Shippers Group (LSG) 6
filed comments in response to the 60day notice. There were no comments
filed in opposition to the collection.
BEA’s Comments: BEA’s comments
broadly support the collection and
outline the manner in which BEA
utilizes FERC Form Nos. 6 and 6–Q
data. BEA states that the forms are used
to estimate the U.S. Census Bureau’s
construction value put-in-place (VPIP)
for oil pipeline utilities, which,
according to BEA, serves as a major
source data input to the national income
5 BEA’s comments are posted in FERC eLibrary at
https://elibrary.ferc.gov/idmws/common/
OpenNat.asp?fileID=15227493 and https://
elibrary.ferc.gov/idmws/common/
OpenNat.asp?fileID=15227494.
6 The LSG’s comments are posted in FERC
eLibrary at https://elibrary.ferc.gov/idmws/
common/OpenNat.asp?fileID=15274579.
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and product account (NIPA) for
structures investment estimates. BEA
notes that the NIPA estimates for
electric, gas, and pipeline structures rely
on the VPIP source data and that
estimates of utility industry structures
investment for the BEA fixed assets
accounts relies on the VIP-based NIPA
structure estimates.
BEA further notes that FERC Form
No. 6 data is used indirectly to derive
annual pipeline transportation output in
the industry accounts program. BEA
explains that data obtained by the
industry account from the Association
of Oil Pipelines ‘‘Shifts in Petroleum
Transportation’’ report is based, in part,
on this survey. BEA concludes that
FERC Form No. 6 information is
considered an indispensable data source
to the NIPA estimates and industry
accounts estimates because it is used
indirectly through the VPIP program
and the trade association.
Finally, BEA requests that the
Commission keep BEA informed of any
modifications to FERC Form Nos. 6 and
6–Q, and notes, in particular, that BEA
is particularly interested in any
modifications proposed during the
forms approval process that would
substantially affect BEA’s use of the
data.
Commission Response: As discussed
above, the public utilizes the data in
FERC Form Nos. 6 and 6–Q to assist in
monitoring rates, the financial condition
of the oil pipeline industry, and in
assessing energy markets. BEA’s
comments in support of the collection of
the Form Nos. 6 and 6–Q data provide
tangible examples of this utilization and
reflect the public benefit of reporting
FERC Form Nos. 6 and 6–Q information.
With respect to BEA’s interest in any
modifications to FERC Form Nos. 6 and
6–Q, we emphasize that we are not
changing the information to be collected
in this proceeding.
The LSG’s Comments: The LSG
supports the continuation of the FERC
Form Nos. 6 and 6–Q information
collections. The LSG states that the data
helps the Commission and shippers to
evaluate the reasonableness of pipeline
rates. In addition, the LSG recommends
that the Commission modify the FERC
Form No. 6 in order to enhance the
quality, utility and clarity of the
information collection. The LSG
explains that in April 2015, the LSG, the
Airlines for America and the National
Propane Gas Association filed a joint
Petition for Rulemaking in Docket No.
RM15–19–000. The petition asked the
Commission to issue a proposed rule to
modify FERC Form No. 6 in two
respects: (1) Require certain pipelines to
file disaggregated Page 700 data; and (2)
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Federal Register / Vol. 84, No. 132 / Wednesday, July 10, 2019 / Notices
require all pipelines to file or make Page
700 workpapers available to shippers
and interested parties upon request, not
just to FERC staff. The LSG also
explains that it participated in the
Commission’s July 2015 technical
conference on the Petition for
Rulemaking.
The LSG states that it welcomed the
Commission’s decision to issue an
Advanced Notice of Proposed
Rulemaking (ANOPR) in October 2016
in Docket No. RM17–1.7 According to
the LSG, the Commission stated that it
was considering issuing a NOPR to
propose certain changes to the FERC
Form No. 6, Page 700 reporting
requirement in order to further enhance
financial reporting transparency. The
LSG notes that in its comments to the
ANOPR, it encouraged the Commission
to propose rule changes to require a subset of pipelines to file disaggregated
Page 700 data in the form of the
supplemental Page 700s that it explains
was contemplated by the Commission in
the ANOPR. The LSG states that it
supported the Commission’s proposal to
require a pipeline to file disaggregated
Page 700 data if it has both crude oil and
petroleum product systems. The LSG
further states that it supported the
Commission’s proposal to require a
pipeline to file supplemental Page 700s
for: (1) ‘‘non-contiguous (geographically
separate) pipeline systems;’’ and (2)
‘‘major pipeline systems’’ with certain
suggested modifications to those
criteria. According to the LSG, the
aggregated data reported on Page 700
does not currently provide a shipper
with the information it needs to
determine whether certain pipelines are
over-recovering on a specific pipeline or
segment.
The LSG states that in its comments
to the ANOPR, it encouraged the
Commission to propose to revise Page
700 to require all pipelines to
disaggregate Page 700 revenue, barrel
and barrel-mile data associated with
cost-based rates, non-cost based rates
and other jurisdictional revenues such
as penalties. In addition, the LSG states
that it recommended that the
Commission also propose to require all
pipelines to include information
regarding pipeline loss allowance
revenues in the ‘‘other jurisdictional
revenues’’ category because, according
to the LSG, it is unclear whether those
revenues are being recorded by
pipelines on Page 700 in a uniform and
consistent manner.
The LSG explains that in its
comments to the ANOPR, it also
reiterated the call for the Commission to
require all pipelines to make their Page
700 workpapers available to a shipper or
interested person upon request, not just
to the Commission and FERC staff. The
LSG suggested that there is no logical
basis for, and no public interest served
by, the requirement that pipelines
provide their workpapers only to the
Commission and Commission staff.
According to the LSG, shippers should
have the tools they need to bear the
burden of evaluating the reasonableness
of rates and bringing challenges to the
pipeline’s rates.
For the reasons stated in its comments
to the ANOPR, the LSG recommends
that the Commission issue a Notice of
Proposed Rulemaking (NOPR) in which
the Commission proposes the suggested
modifications to the FERC Form No. 6.
Commission Response: The
Commission and the public utilize the
data in FERC Form Nos. 6 and 6–Q to
assist in monitoring rates, the financial
condition of the oil pipeline industry,
and in assessing energy markets. The
LSG’s comments in support of the
continued collection of FERC Form Nos.
6 and 6–Q data reflect the public benefit
of reporting this information.
LSG’s FERC Form No. 6 modification
suggestions are currently before the
Commission in Docket No. RM15–19–
000 for consideration in that
proceeding.
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ESTIMATES OF ANNUAL BURDEN 8 AND COST 9 FOR FERC FORM NOS. 6 AND 6–Q
Number of
respondents
Annual
number of
responses per
respondent
Total
number of
responses
Average burden
hours and cost ($)
per response
Total annual
burden hours and
total annual cost ($)
Cost per
respondent ($)
(1)
(2)
(1) * (2) = (3)
(4)
(3) * (4) = (5)
(5) ÷ (1)
FERC Form No. 6 ........
244
1
244
161 hrs.; $12,719 ........
FERC Form No. 6–Q ...
244
3
732
150 hrs.; $11,850 ........
Comments: Comments are invited on:
(1) Whether the collections of
information are necessary for the proper
performance of the functions of the
Commission, including whether the
information will have practical utility;
(2) the accuracy of the agency’s
estimates of the burden and cost of the
collections of information, including the
validity of the methodology and
assumptions used; (3) ways to enhance
the quality, utility and clarity of the
information collections; and (4) ways to
minimize the burden of the collections
7 Revisions to Index Policies and Page 700 of
FERC Form No. 6, 157 FERC 61,047 (2016).
8 Burden is the total time, effort, or financial
resources expended by persons to generate,
maintain, retain, or disclose or provide information
to or for a Federal agency. For further explanation
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18:32 Jul 09, 2019
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39,284 hrs.;
$3,103,436.
109,800 hrs.;
$8,674,200.
of information on those who are to
respond, including the use of automated
collection techniques or other forms of
information technology.
DEPARTMENT OF ENERGY
Dated: July 3, 2019.
Kimberly D. Bose,
Secretary.
[Docket No. AC19–171–000]
[FR Doc. 2019–14674 Filed 7–9–19; 8:45 am]
of what is included in the information collection
burden, refer to Title 5 Code of Federal Regulations
1320.3.
9 Commission staff estimates that the industry’s
average cost (for wages and benefits) for completing
and filing FERC Form Nos. 6 and 6–Q are
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35,550
Federal Energy Regulatory
Commission
Spire Storage West LLC; Notice of
Filing
Take notice that on June 28, 2019,
Spire Storage West LLC (Spire Storage)
filed a request as Successor to Clear
Creek Storage Company, L.L.C. (Clear
Creek) for waiver or clarification of any
BILLING CODE 6717–01–P
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$12,719
Sfmt 4703
comparable to the Commission’s average cost.
Therefore, we are using the FERC 2018 average
salary plus benefits (for one FERC full-time
equivalent, or FTE) of $164,820/year (or $79.00/
hour).
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[Federal Register Volume 84, Number 132 (Wednesday, July 10, 2019)]
[Notices]
[Pages 32913-32915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14674]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. IC19-20-000]
Commission Information Collection Activities (FERC Form Nos. 6
and 6-Q); Comment Request; Extension
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of information collections and request for comments.
-----------------------------------------------------------------------
SUMMARY: In compliance with the requirements of the Paperwork Reduction
Act of 1995 (PRA), the Federal Energy Regulatory Commission (Commission
or FERC) is soliciting public comment on the currently approved
information collections FERC Form Nos. 6 (Annual Report of Oil Pipeline
Companies) and 6-Q (Quarterly Report of Oil Pipeline Companies) and
submitting the information collections to the Office of Management and
Budget (OMB) for review. Any interested person may file comments
directly with OMB and should address a copy of those comments to the
Commission as explained below. On April 15, 2019, the Commission
published a Notice in the Federal Register in Docket No. IC19-20-000
requesting public comments. The Commission received two public comments
and will indicate that in its submittals to OMB.
DATES: Comments on the collections of information are due August 9,
2019.
ADDRESSES: Comments filed with OMB, identified by OMB Control Nos.:
1902-0022 (FERC Form No. 6) and 1902-0206 (FERC Form No. 6-Q), should
be sent via email to the Office of Information and Regulatory Affairs:
[email protected]. Attention: Federal Energy Regulatory
Commission Desk Officer.
A copy of the comments should also be sent to the Commission, in
Docket No. IC19-20-000, by either of the following methods:
eFiling at Commission's Website: https://www.ferc.gov/docs-filing/efiling.asp.
Mail/Hand Delivery/Courier: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE,
Washington, DC 20426.
Instructions: All submissions must be formatted and filed in
accordance with submission guidelines at: https://www.ferc.gov/help/submission-guide.asp. For user assistance, contact FERC Online Support
by email at [email protected], or by phone at: (866) 208-3676
(toll-free), or (202) 502-8659 for TTY.
Docket: Users interested in receiving automatic notification of
activity in this docket or in viewing/downloading comments and
issuances in this docket may do so at https://www.ferc.gov/docs-filing/docs-filing.asp.
FOR FURTHER INFORMATION CONTACT: Ellen Brown by email at
[email protected], telephone at (202) 502-8663, and fax at (202)
273-0873.
SUPPLEMENTARY INFORMATION:
Titles: FERC Form Nos. 6 (Annual Report of Oil Pipeline Companies)
and 6-Q (Quarterly Report of Oil Pipeline Companies).
OMB Control Nos.: 1902-0022 (FERC Form No. 6) and 1902-0206 (FERC
Form No.6-Q).
Type of Respondent: Oil pipeline.
Type of Request: Three-year extension of FERC Form Nos. 6 and 6-Q
information collections with no changes to the current reporting and
recordkeeping requirements.\1\
---------------------------------------------------------------------------
\1\ FERC Form Nos. 6 and 6-Q are part of the ``Forms Refresh''
effort, which is a separate activity and not addressed here. See
Revisions to the Filing Process for Commission Forms, 166 FERC ]
61,027 (2019) (started in Docket No. AD15-11 and ongoing in Docket
No. RM19-12). (OMB issued its decisions on the proposed changes in
the Forms Refresh Notice of Proposed Rulemaking in Docket No. RM19-
12 on March 14, 2019.) In addition, this submittal does not reflect
Docket No. RM15-19 (Petition for a Rulemaking of the Liquids
Shippers Group, et al., (2015)) and Docket No. RM17-1 (Revisions to
Indexing Policies and Page 700 of FERC Form No. 6 (2016)).
---------------------------------------------------------------------------
Abstract: Under the Interstate Commerce Act (ICA),\2\ the
Commission is authorized and empowered to make investigations and to
collect and record data to the extent the Commission may consider to be
necessary or useful for the purpose of carrying out the provisions of
the ICA. The Commission must ensure just and reasonable rates for
transportation of crude oil and petroleum products by pipelines in
interstate commerce.
---------------------------------------------------------------------------
\2\ 49 U.S.C. part 1, Section 20, 54 Stat. 916.
---------------------------------------------------------------------------
FERC Form No. 6, Annual Report of Oil Pipeline Companies
In 1977, the Department of Energy Organization Act transferred to
the Commission from the Interstate Commerce Commission (ICC) the
responsibility to regulate oil pipeline companies. In accordance with
the transfer of authority, the Commission was delegated the
responsibility to require oil pipelines to file annual reports of
information necessary for the Commission to exercise its statutory
responsibilities.\3\ The transfer included the ICC Form P, the
predecessor to FERC Form No. 6.\4\
---------------------------------------------------------------------------
\3\ Section 402(b) of the Department of Energy Organization Act
(DOE Act), 42 U.S.C. 7172 provides that; ``[t]here are hereby
transferred to, and vested in, the Commission all functions and
authority of the Interstate Commerce Commission or any officer or
component of such Commission where the regulatory function
establishes rates or charges for the transportation of oil by
pipeline or established the valuation of any such pipeline.''
\4\ The ICC developed the Form P to collect information on an
annual basis to enable it to carry out its regulation of oil
pipeline companies under the Interstate Commerce Act. A
comprehensive review of the reporting requirements for oil pipeline
companies was performed on September 21, 1982, when the Commission
issued Order No. 260 revising the former ICC Form P, ``Annual Report
of Carriers by Pipeline'' and redesignating it as FERC Form No. 6,
``Annual Report of Oil Pipeline Companies''.
---------------------------------------------------------------------------
To reduce burden on industry, FERC Form No. 6 has three tiers of
reporting requirements:
1. Each oil pipeline carrier whose annual jurisdictional operating
revenues has been $500,000 or more for each of the three previous
calendar years must file FERC Form No. 6 (18 CFR 357.2 (a)). Oil
pipeline companies subject to the provisions of section 20 of the ICA
must submit FERC Form No. 6-Q. 18 CFR 357.4(b)). Newly established
entities must use projected data to determine whether FERC Form No. 6
must be filed.
2. Oil pipeline carriers exempt from filing FERC Form No. 6 whose
annual
[[Page 32914]]
jurisdictional operating revenues have been more than $350,000 but less
than $500,000 for each of the three previous calendar years must
prepare and file page 301, ``Operating Revenue Accounts (Account 600),
and page 700, ``Annual Cost of Service Based Analysis Schedule,'' of
FERC Form No. 6. When submitting pages 301 and 700, each exempt oil
pipeline carrier must include page 1 of FERC Form No. 6, the
Identification and Attestation schedules (18 CFR 357.2(a)(2)).
3. Oil pipeline carriers exempt from filing FERC Form No. 6 and
pages 301 and whose annual jurisdictional operating revenues were
$350,000 or less for each of the three previous calendar years must
prepare and file page 700, ``Annual Cost of Service Based Analysis
Schedule,'' of FERC Form No. 6. When submitting page 700, each exempt
oil pipeline carrier must include page 1 of FERC Form No. 6, the
Identification and Attestation schedule (18 CFR 357.2(a)(3)).
The Commission uses the data in FERC Form Nos. 6 and 6-Q to perform
audits and reviews on the financial condition of oil pipelines; assess
energy markets; conduct oil pipeline rate proceedings and economic
analysis; conduct research for use in administrative litigation; and
administer the requirements of the ICA. Data from FERC Form No. 6
facilitates the calculation of the actual rate of return on equity for
oil pipelines. The actual rate of return on equity is particularly
useful information when evaluating a pipeline's rates.
The Commission also uses data on Page 301 of FERC Form No. 6 to
compute annual charges which are then assessed against oil pipeline
companies to recover the Commission's annual costs as mandated by Order
No. 472. The annual charges are required by Section 3401 of the Omnibus
Budget Reconciliation Act of 1986.
Furthermore, the majority of state regulatory commissions use FERC
Form Nos. 6 and 6-Q and the Commission's Uniform System of Accounts
(USofA) to satisfy their reporting requirements for those companies
under their jurisdiction. In addition, the public uses the data in FERC
Form Nos. 6 and 6-Q to assist in monitoring rates, the financial
condition of the oil pipeline industry, and in assessing energy
markets.
FERC Form No. 6-Q, Quarterly Report of Oil Pipeline Companies
Oil pipeline companies subject to the provisions of section 20 of
the ICA must submit FERC Form No. 6-Q. 18 CFR 357.4(b)). The Commission
uses the information collected in FERC Form No. 6-Q to carry out its
responsibilities in implementing the statutory provisions of the ICA to
include the authority to prescribe rules and regulations concerning
accounts, records, and memoranda, as necessary or appropriate.
Financial accounting and reporting provides necessary information
concerning a company's past performance and its future prospects.
Without reliable financial statements prepared in accordance with the
Commission's USofA and related regulations, it would be difficult for
the Commission to accurately determine the costs that relate to a
particular time period, service, or line of business.
The Commission uses data from FERC Form No. 6-Q to assist in: (1)
Implementation of its financial audits and programs; (2) continuous
review of the financial condition of regulated companies; (3)
assessment of energy markets; (4) rate proceedings and economic
analyses; and (5) research for use in litigation.
Financial information reported on the quarterly FERC Form No. 6-Q
provides the Commission, as well as customers, investors and others, an
important tool to help identify emerging trends and issues affecting
jurisdictional entities within the energy industry. It also provides
timely disclosures of the impacts that new accounting standards, or
changes in existing standards, have on jurisdictional entities, as well
as the economic effects of significant transactions, events, and
circumstances. The reporting of this information by jurisdictional
entities assists the Commission in its analysis of profitability,
efficiency, risk, and in its overall monitoring.
Comments: Two commenters, the Bureau of Economic Analysis (BEA) \5\
and the Liquids Shippers Group (LSG) \6\ filed comments in response to
the 60-day notice. There were no comments filed in opposition to the
collection.
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\5\ BEA's comments are posted in FERC eLibrary at https://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=15227493 and
https://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=15227494.
\6\ The LSG's comments are posted in FERC eLibrary at https://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=15274579.
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BEA's Comments: BEA's comments broadly support the collection and
outline the manner in which BEA utilizes FERC Form Nos. 6 and 6-Q data.
BEA states that the forms are used to estimate the U.S. Census Bureau's
construction value put-in-place (VPIP) for oil pipeline utilities,
which, according to BEA, serves as a major source data input to the
national income and product account (NIPA) for structures investment
estimates. BEA notes that the NIPA estimates for electric, gas, and
pipeline structures rely on the VPIP source data and that estimates of
utility industry structures investment for the BEA fixed assets
accounts relies on the VIP-based NIPA structure estimates.
BEA further notes that FERC Form No. 6 data is used indirectly to
derive annual pipeline transportation output in the industry accounts
program. BEA explains that data obtained by the industry account from
the Association of Oil Pipelines ``Shifts in Petroleum Transportation''
report is based, in part, on this survey. BEA concludes that FERC Form
No. 6 information is considered an indispensable data source to the
NIPA estimates and industry accounts estimates because it is used
indirectly through the VPIP program and the trade association.
Finally, BEA requests that the Commission keep BEA informed of any
modifications to FERC Form Nos. 6 and 6-Q, and notes, in particular,
that BEA is particularly interested in any modifications proposed
during the forms approval process that would substantially affect BEA's
use of the data.
Commission Response: As discussed above, the public utilizes the
data in FERC Form Nos. 6 and 6-Q to assist in monitoring rates, the
financial condition of the oil pipeline industry, and in assessing
energy markets. BEA's comments in support of the collection of the Form
Nos. 6 and 6-Q data provide tangible examples of this utilization and
reflect the public benefit of reporting FERC Form Nos. 6 and 6-Q
information.
With respect to BEA's interest in any modifications to FERC Form
Nos. 6 and 6-Q, we emphasize that we are not changing the information
to be collected in this proceeding.
The LSG's Comments: The LSG supports the continuation of the FERC
Form Nos. 6 and 6-Q information collections. The LSG states that the
data helps the Commission and shippers to evaluate the reasonableness
of pipeline rates. In addition, the LSG recommends that the Commission
modify the FERC Form No. 6 in order to enhance the quality, utility and
clarity of the information collection. The LSG explains that in April
2015, the LSG, the Airlines for America and the National Propane Gas
Association filed a joint Petition for Rulemaking in Docket No. RM15-
19-000. The petition asked the Commission to issue a proposed rule to
modify FERC Form No. 6 in two respects: (1) Require certain pipelines
to file disaggregated Page 700 data; and (2)
[[Page 32915]]
require all pipelines to file or make Page 700 workpapers available to
shippers and interested parties upon request, not just to FERC staff.
The LSG also explains that it participated in the Commission's July
2015 technical conference on the Petition for Rulemaking.
The LSG states that it welcomed the Commission's decision to issue
an Advanced Notice of Proposed Rulemaking (ANOPR) in October 2016 in
Docket No. RM17-1.\7\ According to the LSG, the Commission stated that
it was considering issuing a NOPR to propose certain changes to the
FERC Form No. 6, Page 700 reporting requirement in order to further
enhance financial reporting transparency. The LSG notes that in its
comments to the ANOPR, it encouraged the Commission to propose rule
changes to require a sub-set of pipelines to file disaggregated Page
700 data in the form of the supplemental Page 700s that it explains was
contemplated by the Commission in the ANOPR. The LSG states that it
supported the Commission's proposal to require a pipeline to file
disaggregated Page 700 data if it has both crude oil and petroleum
product systems. The LSG further states that it supported the
Commission's proposal to require a pipeline to file supplemental Page
700s for: (1) ``non-contiguous (geographically separate) pipeline
systems;'' and (2) ``major pipeline systems'' with certain suggested
modifications to those criteria. According to the LSG, the aggregated
data reported on Page 700 does not currently provide a shipper with the
information it needs to determine whether certain pipelines are over-
recovering on a specific pipeline or segment.
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\7\ Revisions to Index Policies and Page 700 of FERC Form No. 6,
157 FERC 61,047 (2016).
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The LSG states that in its comments to the ANOPR, it encouraged the
Commission to propose to revise Page 700 to require all pipelines to
disaggregate Page 700 revenue, barrel and barrel-mile data associated
with cost-based rates, non-cost based rates and other jurisdictional
revenues such as penalties. In addition, the LSG states that it
recommended that the Commission also propose to require all pipelines
to include information regarding pipeline loss allowance revenues in
the ``other jurisdictional revenues'' category because, according to
the LSG, it is unclear whether those revenues are being recorded by
pipelines on Page 700 in a uniform and consistent manner.
The LSG explains that in its comments to the ANOPR, it also
reiterated the call for the Commission to require all pipelines to make
their Page 700 workpapers available to a shipper or interested person
upon request, not just to the Commission and FERC staff. The LSG
suggested that there is no logical basis for, and no public interest
served by, the requirement that pipelines provide their workpapers only
to the Commission and Commission staff. According to the LSG, shippers
should have the tools they need to bear the burden of evaluating the
reasonableness of rates and bringing challenges to the pipeline's
rates.
For the reasons stated in its comments to the ANOPR, the LSG
recommends that the Commission issue a Notice of Proposed Rulemaking
(NOPR) in which the Commission proposes the suggested modifications to
the FERC Form No. 6.
Commission Response: The Commission and the public utilize the data
in FERC Form Nos. 6 and 6-Q to assist in monitoring rates, the
financial condition of the oil pipeline industry, and in assessing
energy markets. The LSG's comments in support of the continued
collection of FERC Form Nos. 6 and 6-Q data reflect the public benefit
of reporting this information.
LSG's FERC Form No. 6 modification suggestions are currently before
the Commission in Docket No. RM15-19-000 for consideration in that
proceeding.
Estimates of Annual Burden 8 and Cost 9 for FERC Form Nos. 6 and 6-Q
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Annual number Total annual burden
Number of of responses Total number Average burden hours and hours and total annual Cost per
respondents per respondent of responses cost ($) per response cost ($) respondent ($)
(1) (2) (1) * (2) = (4)..................... (3) * (4) = (5)........ (5) / (1)
(3)
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FERC Form No. 6...................... 244 1 244 161 hrs.; $12,719....... 39,284 hrs.; $3,103,436 $12,719
FERC Form No. 6-Q.................... 244 3 732 150 hrs.; $11,850....... 109,800 hrs.; 35,550
$8,674,200.
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Comments: Comments are invited on: (1) Whether the collections of
information are necessary for the proper performance of the functions
of the Commission, including whether the information will have
practical utility; (2) the accuracy of the agency's estimates of the
burden and cost of the collections of information, including the
validity of the methodology and assumptions used; (3) ways to enhance
the quality, utility and clarity of the information collections; and
(4) ways to minimize the burden of the collections of information on
those who are to respond, including the use of automated collection
techniques or other forms of information technology.
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\8\ Burden is the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency. For further
explanation of what is included in the information collection
burden, refer to Title 5 Code of Federal Regulations 1320.3.
\9\ Commission staff estimates that the industry's average cost
(for wages and benefits) for completing and filing FERC Form Nos. 6
and 6-Q are comparable to the Commission's average cost. Therefore,
we are using the FERC 2018 average salary plus benefits (for one
FERC full-time equivalent, or FTE) of $164,820/year (or $79.00/
hour).
Dated: July 3, 2019.
Kimberly D. Bose,
Secretary.
[FR Doc. 2019-14674 Filed 7-9-19; 8:45 am]
BILLING CODE 6717-01-P
