68106 Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / Proposed Rules 

1Secretary of Energy Spencer Abraham, in 

requesting the National Petroleum Council (NPC) to 

undertake a study of natural gas in the United 

States in the 21st century, sought ‘‘the NPC’s advice 

on actions that can be taken by industry and 

Government to increase the productivity and 

efficiency of North American natural gas markets 

and to ensure adequate and reliable supplies of 

energy for consumers.’’ The NPC’s resulting report 

found that the solution includes accessing ‘‘gas 

resources from previously inaccessible areas of the 

United States and gas from the Arctic.’’ Balancing 

Natural Gas Policy—Fueling the Demands of a 

Growing Economy, A Report of the National 

Petroleum Council, at 7 (Sept. 25, 2003) (NPC 

Report).

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air).

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 14 CFR part 71 as 

follows:

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

1. The authority citation for part 71 

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389.

§ 71.1 [Amended] 

2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.9M, 

Airspace Designations and Reporting 

Points, dated August 30, 2004, and 

effective September 16, 2004, is 

amended as follows:

Paragraph 6010(a) Domestic VOR Federal 

Airways.

* * * * *

V–623 [New] 

From Carmel, NY; INT Carmel 275°(M) 

263°(T) and Sparta, NJ 039°(M) 028°(T) 

radials; Sparta.

* * * * *

Issued in Washington, DC, on November 

16, 2004. 

Reginald C. Matthews, 

Manager, Airspace and Rules.

[FR Doc. 04–25881 Filed 11–22–04; 8:45 am] 

BILLING CODE 4910–13–P

DEPARMENT OF ENERGY

Federal Energy Regulatory 

Commission 

18 CFR Part 157 

[Docket No. RM05–1–000] 

Regulations Governing the Conduct of 

Open Seasons for Alaska Natural Gas 

Transportation Projects 

November 15, 2004.

AGENCY: Federal Energy Regulatory 

Commission.

ACTION: Notice of Proposed Rulemaking.

SUMMARY: The Federal Energy 

Regulatory Commission is proposing to 

amend its regulations to establish 

requirements governing the conduct of 

open seasons for proposals to construct 

Alaska natural gas transportation 

projects. These proposed regulations are 

intended to fulfill the Commission’s 

responsibilities to issue open season 

regulations under section 103 of the 

Alaska Natural Gas Pipeline Act (the 

Act), enacted on October 13, 2004. 

Section 103(e)(1) of the Act directs the 

Commission, within 120 days from 

enactment of the Act, to promulgate 

regulations governing the conduct of 

open seasons for Alaska natural gas 

transportation projects, including 

procedures for allocation of capacity. 

According to section 103(e)(2) of the 

Act, these regulations must include the 

criteria for and timing of any open 

season, promote competition in the 

exploration, development, and 

production of Alaska natural gas, and 

for any open seasons for capacity 

exceeding the initial capacity, provide 

for the opportunity for the 

transportation of natural gas other than 

from the Prudhoe Bay and Point 

Thomson units.

DATES: Comments are due on December 

17, 2004.

ADDRESSES: Comments may be filed 

electronically via the eFiling link on the 

Commission’s Web site at http://

www.ferc.gov. Commenters unable to 

file comments electronically must send 

an original and 14 copies of their 

comments to: Federal Energy Regulatory 

Commission, Office of the Secretary, 

888 First Street NE., Washington, DC, 

20426. Refer to the Comment 

Procedures section of the preamble for 

additional information on how to file 

comments.

FOR FURTHER INFORMATION CONTACT:

Whit Holden, Office of the General 

Counsel, Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426, (202) 502–8089, 

edwin.holden@ferc.gov.

SUPPLEMENTARY INFORMATION:

Notice of Proposed Rulemaking 

I. Introduction 

1. The Alaska Natural Gas Pipeline 

Act became law on October 13, 2004. 

Under the Act, Congress mandated the 

expedited processing by the 

Commission of any application for an 

Alaska natural gas transportation 

project, namely any natural gas pipeline 

system that carries natural gas derived 

from that portion of Alaska lying north 

of 64 degrees north latitude to the 

border between Alaska and Canada. The 

new law recognizes the importance of 

our Alaskan natural gas resources in 

meeting the rapidly rising demand for 

natural gas in the United States. The 

timely development of an Alaska 

natural gas transportation project to 

bring Alaskan natural gas to markets in 

Alaska and in the lower 48 states will 

help ensure that the nation has adequate 

supplies of natural gas at reasonable 

prices.1 To this end, the Act charges the 

Commission with the responsibility of 

implementing an expedited approval 

process consistent with the Act. The Act 

specifically directs the Commission to 

prescribe the rules which will apply to 

any open season held for the purpose of 

soliciting interest in, or making binding 

commitments to the acquisition of 

capacity on, any Alaska natural gas 

transportation project, including the 

criteria for allocating capacity among 

competing bidders.

2. To date, it has been the 

Commission’s policy, developed 

through its orders and opinions, that all 

new interstate pipeline construction be 

preceded by a non-discriminatory, nonpreferential ‘‘open season’’ process 

through which potential shippers may 

seek and obtain firm capacity rights. 

Congress has determined that it is 

necessary to supplant Commission 

policy with specific regulations 

governing the conduct of open seasons 

for an Alaska natural gas transportation 

project in order to take into account the 

tremendous cost, long lead-time, and 

environmental sensitivities that are 

unique to such a project. In this regard, 

Congress has emphasized that the 

Commission’s regulations are to be 

designed to promote competition in the 

exploration, development, and 

production of Alaska natural gas and, as 

to any open season for expansion of the 

initial capacity of any Alaska natural gas 

transportation project, the Commission’s 

regulations are to specifically provide 

the opportunity for gas other than 

Prudhoe Bay and Point Thomson 

production to have access to the 

pipeline. 

3. In summary, the Commission sees 

as its goal the creation of an open season 

process that provides nondiscriminatory access to capacity on any 

Alaska natural gas transportation project 

while, at the same time, ensuring 

sufficient economic certainty to support 

the construction of the pipeline and 

Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / Proposed Rules 68107

2The Prudhoe Bay and Point Thomson units are 

gas fields located on Alaska’s North Slope with a 

total of approximately 35 Tcf of known gas reserves.

3 ‘‘Anchor shipper(s)’’ as used in the natural gas 

industry means one or a very few shippers with 

very large, significant volumes of natural gas that 

will fully financially support the initial design and 

cost of a project.

thereby provide a stimulus for 

exploration, development and 

production of Alaska natural gas. 

4. Congress has also given the 

Commission the statutory authority to 

require an expansion of an Alaska 

natural gas transportation project to 

address the circumstance where 

additional capacity is required but the 

pipeline owners have not committed to 

expand the system on a timely basis. 

Consequently, section 105(a) of the Act 

authorizes the Commission, upon the 

request of one or more persons, and 

upon the satisfaction of certain statutory 

criteria, to order the expansion of any 

Alaska natural gas transportation 

project. Section 105(e) authorizes the 

Commission to issue such regulations as 

are necessary to fulfill this 

responsibility. While the Commission 

may issue such regulations in the future, 

the regulations which are the subject of 

this rulemaking pertain solely to open 

seasons for initial capacity or expansion 

capacity other than expansion capacity 

ordered pursuant to section 105 of the 

Act. 

II. Summary of Proposed Regulations 

5. Proposed section 157.30 sets out 

the purpose of Subpart B. That purpose 

is to prescribe rules for the conduct of 

any open season on any Alaska natural 

gas transportation project. Section 

103(e)(2) of the Act provides that these 

regulations must include the criteria for 

and timing of any open season, promote 

competition in the exploration, 

development, and production of Alaska 

natural gas, and, for any open seasons 

for capacity exceeding the initial 

capacity, provide for the opportunity for 

the transportation of natural gas other 

than from the Prudhoe Bay and Point 

Thomson units.2

6. Proposed section 157.31 defines the 

terms ‘‘Alaska natural gas transportation 

project’’ and ‘‘Commission’’ consistent 

with definitions provided in the Act. 

7. Proposed section 157.32 provides 

that regulations proposed will apply to 

any application to the Commission for 

a certificate of public convenience and 

necessity or other authorization for an 

Alaska natural gas transportation 

project, whether filed pursuant to the 

Natural Gas Act, the Alaska Natural Gas 

Transportation Act of 1976 (15 U.S.C. 

719 et seq.), or the Alaska Natural Gas 

Pipeline Act, and to applications for 

expansion of such projects, other than 

expansions of Alaska natural gas 

transportation projects that are 

requested and ordered pursuant to 

section 105 of the Act. 

8. Although the Commission is 

authorized in section 105(e) to issue 

regulations governing expansions 

requested under section 105(a), that 

authorization is separate from the 

authority granted the Commission in 

section 103(e) to issue regulations for 

open seasons. Moreover, the 

Commission is directed to issue the 

section 103(e) regulations within 120 

days from the date of issuance of the 

Act, whereas the Commission is not 

under any time constraints in 

considering the need for any regulations 

to carry out its responsibilities under 

section 105. Therefore, the Commission 

is focusing solely on those issues 

relevant to open seasons under section 

103 of the Act at this time. However, the 

proposed section 157.32 leaves open the 

possibility that the requirements of this 

subpart might, in a given case, have 

application or be suited to an expansion 

ordered under section 105 of the Act. 

9. Proposed section 157.33 requires 

that any application for a certificate of 

public convenience and necessity for a 

proposed Alaska natural gas 

transportation project include a showing 

that the applicant conducted an open 

season for capacity on its proposed 

project that fully complies with the 

requirements of this subpart. To ensure 

compliance with this requirement, 

proposed section 157.33 provides that 

any application lacking such a showing 

will be dismissed as deficient.

10. Proposed section 157.34 sets forth 

the criteria for and timing of any open 

season for an Alaska natural gas 

transportation project. Proposed section 

157.34(a) provides for public notice of 

an open season at least 30 days prior to 

the commencement of the open season 

through methods including postings on 

Internet websites, press releases, direct 

mail solicitations, and other advertising. 

The Commission believes that such 

prior notice would serve several 

purposes. First, it would reduce, if not 

eliminate, any advantage that one 

potential shipper might have as a result 

of prior knowledge of the open season. 

Second, it would afford both project 

sponsors and prospective shippers a 

period of time prior to the actual open 

season period in which they can address 

and possibly resolve any questions or 

problems regarding the terms and 

conditions of the open season. Third, it 

would afford potential shippers time to 

prepare submissions in response to the 

open season. 

11. Proposed section 157.34(b) lists 

the information that any notice of open 

season for an Alaska natural gas 

transportation project must contain. The 

Commission recognizes in this section 

that a potential applicant for an Alaska 

natural gas transportation project might 

find it necessary or appropriate to 

initiate an open season before some of 

the information can be determined. 

Indeed, the Commission understands 

that in a given situation, such 

information cannot be reasonably 

determined until after an open season is 

held. The Commission can envision, for 

instance, a situation where a 

prospective project sponsor might first 

conduct a non-binding open season as a 

manner of gathering information and 

assessing demand, on the basis of which 

the sponsor would then be able to 

conduct a second, binding open season 

containing information sufficiently 

detailed to permit prospective shippers 

to enter into binding precedent 

agreements. 

12. The proposed list of information 

contained in proposed section 157.34(b) 

is intentionally inclusive. In this area, as 

well as others, the Commission is 

soliciting comments received in 

response to this Notice of Proposed 

Rulemaking to fashion a final rule that 

meets the Commission’s goal which is, 

as stated above, to create an open season 

process that provides nondiscriminatory access to capacity on any 

Alaska natural gas transportation project 

while, at the same time, ensuring 

sufficient economic certainty to support 

the construction of the pipeline and 

thereby provide a stimulus for 

exploration, development and 

production of Alaska natural gas. 

13. Proposed section 157.34(c) 

provides that an open season for an 

Alaska natural gas transportation project 

must remain open for a period of at least 

90 days. This minimum 90-day period 

for prospective shippers to examine the 

open season materials and make service 

requests to the pipeline is intended to 

establish some parity among shippers, 

given that certain shippers, primarily 

the ‘‘anchor shippers,’’ 3 may have had 

advance information relating to the 

pipeline’s proposed services, tariff 

provisions, and cost projections. Ninety 

days is proposed as an adequate amount 

of time in which to conduct a reasoned 

evaluation of the open season materials 

and to help level the playing field. The 

Commission considers this provision 

essential to ensuring that the 

Commission’s regulations promote 

competition in the exploration, 

68108 Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / Proposed Rules 

4 5 CFR 1320.11. 5 44 U.S.C. 3507(d). 6 5 CFR 1320.13.

development, and production of Alaska 

natural gas.

III. Public Comment and Expedited 

Procedures 

14. The Act mandates that the 

Commission issue regulations 

implementing the open season 

requirements within 120 days of the 

date of its enactment. Congress and the 

Commission consider the promulgation 

of these regulations to be a matter of 

critical importance to the construction 

and development of, and access to, an 

Alaska natural gas transportation 

project. Therefore, the Commission 

intends to promulgate final regulations 

by February 10, 2005. To that end, 

public comments on this notice are due 

on December 17, 2004. The Commission 

will carefully weigh and consider all 

public comments received. 

15. In addition to seeking comments 

on the proposed rules contained herein, 

the Commission seeks comments on the 

following questions: 

(1) Should the Commission require 

that prospective applicants for Alaska 

natural gas transportation projects, 

before conducting open seasons, file 

with the Commission proposals for how 

the open seasons will be conducted? If 

so, should the proposals be filed for 

notice and comment, or for a decision 

or pre-determination by the Commission 

that such proposals conform to the 

regulations? What other procedures are 

suitable to facilitate the expeditious 

resolution of objections or concerns 

regarding any open season for an Alaska 

natural gas transportation project? 

(2) Should the Commission issue 

regulations now, pursuant to section 

105 of the Alaska Natural Gas Pipeline 

Act, with respect to the Commission’s 

authority to require expansion of any 

Alaska natural gas transportation 

project? If so, should those regulations 

deal with the rate treatment (rolled-in or 

incremental) of any such expansion? 

(3) Should the Commission allow presubscribed, reserved capacity such as 

was allowed in connection with open 

seasons for certain new Outer 

Continental Shelf pipeline facilities? 

See, e.g., Garden Banks Gas Pipeline, 

LLC, 78 FERC ¶ 61,066 (1997); Green 

Canyon Pipe Line Co., 47 FERC ¶ 61,310 

(1989)?

(4) Congress has made expressly clear 

that the open season rules must promote 

competition in the exploration, 

development, and production of Alaska 

natural gas. Commenters are invited to 

discuss whether, and to what extent, 

any tension may exist between this 

mandated purpose and the application 

of existing Commission policies to the 

open season rules due to circumstances 

unique to access to capacity on any 

Alaska natural gas transportation 

project. 

(5) To what extent should the 

Commission’s open season regulations 

address the issues of tying the receipt of 

capacity on any Alaska natural gas 

transportation project to ancillary 

services involving the treatment of gas 

to meet specified gas quality 

requirements or allocating capacity at a 

gas treatment plant or other facility? 

IV. Information Collection Statement 

16. The Office of Management and 

Budget (OMB) regulations require that 

OMB approve certain reporting, record 

keeping, and public disclosure 

(collections of information) imposed by 

an agency.4 The following information 

collection requirements contained in 

this proposed rule are being submitted 

to the Office of Management and Budget 

(OMB) for review under section 3507(d) 

of the Paperwork Reduction Act of 

1995.5 FERC identifies the information 

disclosed under Part 157 as FERC–537. 

The Commission has submitted this 

information collection to OMB for 

review and clearance under emergency 

processing procedures.6 OMB approval 

has been requested by December 31, 

2004.

17. Comments are solicited 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 

respondent’s burden, including the use 

of automated information techniques. 

The burden estimates for complying 

with this rule are as follows:

Data collection Number of

respondents 

Number of

responses 

Hours per

response 

Total annual 

hours 

FERC–537 ....................................................................................................... 30 1 80 2400 

Totals ........................................................................................................ ........................ ........................ ........................ 2400 

Total Annual Hours for Collection:

2400 hrs. These are mandatory 

information collection requirements. 

Information Collection Costs: The 

Commission seeks comments on the 

cost to comply with these requirements. 

It has projected the average annualized 

cost for all respondents to be $139,000 

(2400 × $58.00). 

Title: FERC–537 ‘‘Gas Pipeline 

Certificates: Construction, Acquisition 

and Abandonment.’’

Action: Proposed Information 

Collection. 

OMB Control Nos.: 1902–0060. The 

applicant shall not be penalized for 

failure to respond to this collection of 

information unless the collection of 

information displays a valid OMB 

control number. 

Respondents: Business or other for 

profit. 

Frequency of Responses: One-time 

implementation. 

Necessity of Information: On October 

13, 2004, Congress enacted the Alaska 

Natural Gas Pipeline Act. Section 

103(e)(1) of the Act directs the 

Commission to issue regulations within 

120 days from the enactment of the Act. 

Congress and the Commission consider 

the issuance of these regulations to be 

of critical importance to the 

construction and development of and 

access to Alaska natural gas 

transportation projects. The 

Commission must issue a final rule by 

February 10, 2005. The Commission 

seeks emergency processing of this 

proposed information collection 

because the use of normal clearance 

procedures is reasonably likely to cause 

a statutory ordered deadline to be 

missed. The proposed rule revises the 

reporting requirements contained in 18 

CFR Part 157. Specifically, the Alaska 

Natural Gas Pipeline Act authorized the 

Commission to expedite application for 

any natural gas transportation projects 

that carries gas derived from that 

portion of Alaska lying north of 64 

degree north latitude to the border 

between Alaska and Canada. 

Specifically, the Commission is 

proposing rules to establish open 

seasons to accept bids for capacity on 

any Alaska natural gas transportation 

project. The Alaska Natural Gas Pipeline 

Act regulations must (1) include the 

Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / Proposed Rules 68109

7Order No. 486, Regulations Implementing the 

National Environmental Policy Act, 52 FR 47897 

(Dec. 17, 1987), FERC Stats. & Regs. Preambles 

1986–1990 ¶ 30,783 (1987).

8 18 CFR 380.4(a)(2)(ii) (2004).

9 5 U.S.C. 601–612.

10 5 U.S.C. 601(3), citing to section 3 of the Small 

Business Act, 15 U.S.C. 623. Section 3 of the Small 

Business Act defines a ‘‘small-business concern’’ as 

a business which is independently-owned and 

operated and which is not dominant in its field of 

operation.

criteria for and timing of any open 

season, (2) promote competition in the 

exploration, development and 

production of Alaska natural gas, and 

(3) for any open seasons for capacity 

exceeding the initial capacity, provide 

for the opportunity for the 

transportation of natural gas other than 

from Prudhoe Bay and Point Thomson. 

Internal Review: The Commission has 

assured itself, by means of internal 

review, that there is specific, objective 

support for the burden estimates 

associated with the information 

requirements. The Commission’s Office 

of Energy Projects will review the data 

included in the application to determine 

whether the proposed facilities are in 

the public interest as well as for general 

industry oversight. This determination 

involves, among other things, an 

examination of adequacy of design, cost, 

reliability, redundancy, safety and 

environmental acceptability of the 

proposed facilities. These requirements 

conform to the Commission’s plan for 

efficient information collection, 

communication and management within 

the natural gas industry. 

18. Interested persons may obtain 

information on the reporting 

requirements by contacting the 

Commission, as follows: Federal Energy 

Regulatory Commission, 888 First 

Street, NE, Washington, D.C. 20426 

(Attention: Michael Miller, Office of the 

Executive Director, 202–502–8415, fax: 

202–273–0873), e-mail: 

michael.miller@ferc.gov.

19. For submitting comments 

concerning the collection of information 

and the associated burden estimate(s)s 

including suggestions for reducing this 

burden, please send your comments to 

the contact listed above and to the 

Office of Management and Budget, 

Room 10202 NEOB, 725 17th Street, 

NW., Washington, DC 20503 (Attention: 

Desk Officer for the Federal Energy 

Regulatory Commission, 202–395–4650, 

fax: 202–395–7285). 

V. Environmental Analysis 

20. 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.7 No environmental 

consideration is raised by the 

promulgation of a rule that is procedural 

in nature or does not substantially 

change the effect of legislation or 

regulations being amended.8 The 

proposed rule establishes requirements 

governing the conduct of open seasons 

for proposals to construct Alaska natural 

gas transportation projects and does not 

substantially change the effect of the 

underlying legislation or regulations 

being revised.

VI. Regulatory Flexibility Act Statement 

21. The Regulatory Flexibility Act of 

1980 (RFA) 9 generally requires a 

description and analysis of final rules 

that will have significant economic 

impact on a substantial number of small 

entities. The Commission is not 

required to make such an analysis if a 

rule would not have such an effect.

22. The Commission concludes that 

this rule would not have such an impact 

on small entities. Most companies 

regulated by the Commission do not fall 

within the RFA’s definition of a small 

entity.10

VII. Comment Procedures 

23. The Commission invites interested 

persons to submit comments on the 

matters and issues proposed in this 

notice to be adopted, including any 

related matters or alternative proposals 

that commenters may wish to discuss. 

Comments are due on December 17, 

2004. Comments must refer to Docket 

No.RM05–1 and must include the 

commenter’s name, the organization 

they represent, if applicable, and their 

address in their comments. Comments 

may be filed either in electronic or 

paper format. 

24. Comments may be filed 

electronically via the eFiling link on the 

Commission’s web site at http://

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 that are not 

able to file comments electronically 

must send an original and 14 copies of 

their comments to: Federal Energy 

Regulatory Commission, Office of the 

Secretary, 888 First Street NE., 

Washington, DC, 20426.

25. 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. 

VIII. Document Availability 

26. 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 (http://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. 

27. From FERC’s Home Page on the 

Internet, this information is available in 

the Commission’s document 

management system, eLibrary. The full 

text of this document is available on 

eLibrary 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. 

28. User assistance is available for 

eLibrary and the FERC’s Web site during 

normal business hours. For assistance, 

please contact FERC Online Support at 

1–866–208–3676 (toll free) or 202–502–

6652 (e-mail at 

FERCOnlineSupport@FERC.gov), or the 

Public Reference Room at 202–502–

8371, TTY (202) 502–8659 (e-mail at 

public.referenceroom@ferc.gov).

List of Subjects in 18 CFR Part 157 

Administrative practice and 

procedure; Natural gas; Reporting and 

recordkeeping requirements.

By direction of the Commission. 

Magalie R. Salas, 

Secretary.

In consideration of the foregoing, the 

Commission proposes to amend Part 

157, Chapter I, Title 18, Code of Federal 

Regulations, as follows.

PART 157—APPLICATIONS FOR 

CERTIFICATES OF PUBLIC 

CONVENIENCE AND NECESSITY AND 

FOR ORDERS PERMITTING AND 

APPROVING ABANDONMENT UNDER 

SECTION 7 OF THE NATURAL GAS 

ACT 

1. The authority citation for part 157 

continues to read as follows:

Authority: 15 U.S.C. 717–717w.

2. Subpart B is added to Part 157 to 

read as follows:

Subpart B—Open Seasons for Alaska 

Natural Gas Transportation Projects 

Sec. 

157.30 Purpose. 

157.31 Definitions. 

68110 Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / Proposed Rules 

157.32 Applicability. 

157.33 Requirement for open season. 

157.34 Notice of open season. 

157.35 Capacity allocation. 

157.36 Open season for expansion.

Subpart B—Open seasons for Alaska 

Natural Gas Transportation Projects

§ 157.30 Purpose. 

This subpart establishes the 

procedures for conducting open seasons 

for Alaska natural gas transportation 

projects, as defined herein.

§ 157.31 Definitions. 

(a) ‘‘Alaska natural gas transportation 

project’’ means any natural gas pipeline 

system that carries Alaska natural gas to 

the border between Alaska and Canada 

(including related facilities subject to 

the jurisdiction of the Federal Energy 

Regulatory Commission). 

(b) ‘‘Commission’’ means the Federal 

Energy Regulatory Commission.

§ 157.32 Applicability. 

These regulations shall apply to any 

application to the Commission for a 

certificate of public convenience and 

necessity or other authorization for an 

Alaska natural gas transportation 

project, whether filed pursuant to the 

Natural Gas Act, the Alaska Natural Gas 

Transportation Act of 1976, or the 

Alaska Natural Gas Pipeline Act, and to 

applications for expansion of such 

projects. Absent a Commission order to 

the contrary, these regulations are not 

applicable in the case of an expansion 

ordered by the Commission pursuant to 

section 105 of the Alaska Natural Gas 

Pipeline Act.

§ 157.33 Requirement for open season. 

Any application for a certificate of 

public convenience and necessity for a 

proposed Alaska natural gas 

transportation project must include a 

demonstration that the applicant has 

conducted an open season for capacity 

on its proposed project, in accordance 

with the requirements of this sub-part. 

Failure to provide the requisite 

demonstration will result in an 

application being dismissed as 

deficient.

§ 157.34 Notice of open season. 

(a) Notice. A prospective applicant 

must provide reasonable public notice 

of an open season, at least 30 days prior 

to the commencement of the open 

season, through methods including 

postings on Internet websites, press 

releases, direct mail solicitations, and 

other advertising. In addition, a 

prospective applicant must provide 

actual notice of an open season to the 

State of Alaska and to the Federal 

Coordinator for Alaska Natural Gas 

Transportation Projects. 

(b) Contents of Notice. Notice of the 

open season shall contain at least the 

following information, to the extent that 

such information is known or 

determined at the time the notice is 

issued: 

(1) The general route of the proposed 

project, including receipt and delivery 

points, and any alternative routes under 

consideration; 

(2) Size and design capacity 

(including proposed certificate capacity 

to the extent that it differs from design 

capacity), and any estimated phase-in 

dates for capacity beyond initial 

capacity; 

(3) Maximum allowable operating 

pressure and expected actual operating 

pressure; 

(4) Delivery pressure; 

(5) Projected in-service date; 

(6) An estimated unbundled 

transportation rate, stated on an MMBtu 

basis, for each service offered, including 

reservation rates for pipeline capacity, 

interruptible transportation rates, usage 

rates, fuel retention percentages, and 

other applicable charges, or surcharges, 

such as annual charge adjustment 

(ACA); 

(7) The estimated costs of proposed 

facilities and cost of service, and 

expected return on equity used to justify 

the transportation rates; 

(8) Negotiated rate and other rate 

options under consideration; 

(9) Quality specifications and any 

other requirements applicable to gas to 

be delivered to the project; 

(10) Terms and conditions for each 

service offered; 

(11) Creditworthiness standards to be 

applied to prospective shippers; 

(12) The date, if any, by which 

potential shippers and the prospective 

applicant must execute precedent 

agreements; 

(13) A detailed methodology for 

determining the value of bids; 

(14) The methodology by which 

capacity will be awarded, in the case of 

over-subscription, clearly stating all 

terms that will be considered, including 

price and contract term; 

(15) Required bid information, 

whether bids are binding or nonbinding, receipt and delivery point 

requirements, the form of a precedent 

agreement and time of execution, 

definition and treatment of nonconforming bids; 

(16) The projected date for filing an 

application with the Commission; and 

(17) All other information that may be 

relevant to the open season, including 

information pertaining to the proposed 

service to be offered, projected pipeline 

capacity and design, proposed tariff 

provision, and cost projections, made 

available to or in the hands of any 

potential shipper, including any 

affiliates of the project sponsor and any 

shippers with pre-subscribed capacity, 

prior to the issuance of the public notice 

of open season. 

(c) Timing. A prospective applicant 

must provide prospective shippers at 

least 90 days from the date on which 

notice of the open season is given 

within which to submit requests for 

transportation services.

§ 157.35 Capacity allocation. 

Capacity allocated as a result of any 

open season shall be awarded without 

undue discrimination or preference of 

any kind.

§ 157.36 Open seasons for expansions. 

Any open season for capacity 

exceeding the initial capacity of an 

Alaska natural gas transportation project 

must provide the opportunity for the 

transportation of gas other than Prudhoe 

Bay or Point Thomson production.

[FR Doc. 04–25933 Filed 11–22–04; 8:45 am] 

BILLING CODE 6717–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Part 1 

[REG–208246–90] 

RIN 1545–BD47 

Allocation and Apportionment of 

Deductions for Charitable 

Contributions; Hearing Cancellation

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Cancellation of notice of public 

hearing on proposed rulemaking. 

SUMMARY: This document provides 

notice of cancellation of a public 

hearing on proposed regulations relating 

to the allocation and apportionment of 

charitable deductions.

DATES: The public hearing originally 

scheduled for Thursday, December 2, 

2004, at 10 a.m., is cancelled.

FOR FURTHER INFORMATION CONTACT:

Treena Garrett of the Publications and 

Regulations Branch, Associate Chief 

Counsel (Procedure and Administration) 

(202) 622–7180 (not a toll-free number).

SUPPLEMENTARY INFORMATION: A notice 

of proposed rulemaking and notice of 

public hearing that appeared in the 

Federal Register on Wednesday, July 

28, 2004, (69 FR 44988), announced that