Federal Register / Vol. 86, No. 39 / Tuesday, March 2, 2021 / Proposed Rules 12129 

(3) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive: 

Airbus Helicopters: Docket No. FAA–2021– 

0105; Project Identifier MCAI–2020– 

01422–R. 

(a) Comments Due Date 

The FAA must receive comments by April 

16, 2021. 

(b) Affected Airworthiness Directives (ADs) 

None. 

(c) Applicability 

This AD applies to all Airbus Helicopters 

Model SA330J helicopters, certificated in any 

category. 

(d) Subject 

Joint Aircraft System Component (JASC) 

Code 6320, Main Rotor Gearbox. 

(e) Reason 

This AD was prompted by a failure of a 

second stage planet gear installed in the main 

gearbox (MGB). The FAA is issuing this AD 

to address failure of an MGB second stage 

planet gear, which could result in failure of 

the MGB and subsequent loss of control of 

the helicopter. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Requirements 

Except as specified in paragraph (h) of this 

AD: Comply with all required actions and 

compliance times specified in, and in 

accordance with, European Aviation Safety 

Agency (now European Union Aviation 

Safety Agency) (EASA) AD 2018–0272, dated 

December 13, 2018 (EASA AD 2018–0272). 

(h) Exceptions to EASA AD 2018–0272 

(1) Where EASA AD 2018–0272 refers to its 

effective date, this AD requires using the 

effective date of this AD. 

(2) Where EASA AD 2018–0272 refers to 

March 30, 2018 (the effective date of EASA 

AD 2018–0065, dated March 23, 2018), this 

AD requires using the effective date of this 

AD. 

(3) The ‘‘Remarks’’ section of EASA AD 

2018–0272 does not apply to this AD. 

(4) Where EASA AD 2018–0272 refers to 

flight hours (FH), this AD requires using 

hours time-in-service. 

(5) Where paragraph (1) of EASA AD 2018– 

0272 specifies to inspect the MGB particle 

detector ‘‘in accordance with the instructions 

of Section 3 of the ASB’’ for this AD use ‘‘in 

accordance with the instructions in step 

3.B.2.a. of the ASB.’’ 

(6) Where paragraph (2) of EASA AD 2018– 

0272 specifies to inspect the MGB bottom 

housing (oil sump) ‘‘in accordance with the 

instructions of Section 3 of the ASB’’ for this 

AD use ‘‘in accordance with the instructions 

in step 3.B.2.b. of the ASB.’’ 

(7) Where the service information 

referenced in EASA AD 2018–0272 specifies 

to perform a metallurgical analysis and 

contact the manufacturer if unsure about the 

characterization of the particles collected, 

this AD does not require contacting the 

manufacturer to determine the 

characterization of the particles collected. 

(8) Although the service information 

referenced in EASA AD 2018–0272 specifies 

that if any 16NCD13 particles are found to 

contact the manufacturer and send a 1-liter 

sample of oil to the manufacturer, this AD 

does not require that action. 

(9) Although the service information 

referenced in EASA AD 2018–0272 specifies 

returning certain parts to the manufacturer, 

this AD does not require that action. 

(10) Where EASA AD 2018–0272 specifies 

actions be done after the last flight of the day 

or ‘‘ALF,’’ this AD requires doing those 

actions before the first flight of the day. 

(11) Although the service information 

referenced in EASA AD 2018–0272 specifies 

discarding certain parts, this AD requires 

removing the parts from service. 

(i) Special Flight Permit 

Special flight permits may be issued in 

accordance with 14 CFR 21.197 and 21.199 

to operate the helicopter to a location where 

the helicopter can be modified (if the 

operator elects to do so), provided that the 

helicopter is operated during the day, under 

visual flight rules, and with no passengers 

onboard. 

(j) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Strategic Policy 

Rotorcraft Section, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or local 

Flight Standards District Office, as 

appropriate. Send your proposal to: Manager, 

Strategic Policy Rotorcraft Section, FAA, 

10101 Hillwood Pkwy., Fort Worth, TX 

76177; phone: 817–222–5110. Information 

may be emailed to: 9-ASW-FTW-AMOCRequests@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(k) Related Information 

(1) For EASA AD 2018–0272, contact the 

EASA, Konrad-Adenauer-Ufer 3, 50668 

Cologne, Germany; phone: +49 221 8999 000; 

email: ADs@easa.europa.eu; internet: 

www.easa.europa.eu. You may find this 

EASA AD on the EASA website at https://

ad.easa.europa.eu. You may view this 

material at the FAA, Office of the Regional 

Counsel, Southwest Region, 10101 Hillwood 

Pkwy., Room 6N–321, Fort Worth, TX 76177. 

For information on the availability of this 

material at the FAA, call 817–222–5110. This 

material may be found in the AD docket on 

the internet at https://www.regulations.gov 

by searching for and locating Docket No. 

FAA–2021–0105. 

(2) For more information about this AD, 

contact Mahmood G. Shah, Aviation Safety 

Engineer, Fort Worth ACO Branch, FAA, 

10101 Hillwood Pkwy., Fort Worth, TX 

76177; phone: 817–222–5538; email: 

mahmood.g.shah@faa.gov. 

Issued on February 19, 2021. 

Lance T. Gant, 

Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2021–03951 Filed 3–1–21; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2021–0054; Airspace 

Docket No. 20–AGL–34] 

RIN 2120–AA66 

Proposed Establishment of Area 

Navigation (RNAV) Routes T–322, T– 

392, T–403, and T–405; Central United 

States 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: This action proposes to 

establish area navigation (RNAV) routes 

T–322, T–392, T–403, and T–405 in the 

central United States. The proposed 

new RNAV routes would expand the 

availability of RNAV routing in support 

of transitioning the National Airspace 

System (NAS) from ground-based to 

satellite-based navigation. Additionally, 

a portion of the new RNAV routes 

would provide enroute structure where 

VHF Omnidirectional Range (VOR) 

Federal airway segments were removed 

due to the Sioux City, IA; Park Rapids, 

MN; and Huron, SD, VORs 

decommissioning in support of the 


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12130 Federal Register / Vol. 86, No. 39 / Tuesday, March 2, 2021 / Proposed Rules 

FAA’s VOR Minimum Operational 

Network (MON) program. 

DATES: Comments must be received on 

or before April 16, 2021. 

ADDRESSES: Send comments on this 

proposal to the U.S. Department of 

Transportation, Docket Operations, 1200 

New Jersey Avenue SE, West Building 

Ground Floor, Room W12–140, 

Washington, DC 20590; telephone: (800) 

647–5527, or (202) 366–9826. You must 

identify FAA Docket No. FAA–2021– 

0054; Airspace Docket No. 20–AGL–34 

at the beginning of your comments. You 

may also submit comments through the 

internet at https://www.regulations.gov. 

FAA Order 7400.11E, Airspace 

Designations and Reporting Points, and 

subsequent amendments can be viewed 

online at https://www.faa.gov/air_

traffic/publications/. For further 

information, you can contact the Rules 

and Regulations Group, Federal 

Aviation Administration, 800 

Independence Avenue SW, Washington, 

DC 20591; telephone: (202) 267–8783. 

The Order is also available for 

inspection at the National Archives and 

Records Administration (NARA). For 

information on the availability of FAA 

Order 7400.11E at NARA, email: 

fedreg.legal@nara.gov or go to https://

www.archives.gov/federal-register/cfr/ 

ibr-locations.html. 

FOR FURTHER INFORMATION CONTACT: 

Jesse Acevedo, Rules and Regulations 

Group, Office of Policy, Federal 

Aviation Administration, 800 

Independence Avenue SW, Washington, 

DC 20591; telephone: (202) 267–8783. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. This rulemaking is 

promulgated under the authority 

described in Subtitle VII, Part A, 

Subpart I, Section 40103. Under that 

section, the FAA is charged with 

prescribing regulations to assign the use 

of the airspace necessary to ensure the 

safety of aircraft and the efficient use of 

airspace. This regulation is within the 

scope of that authority as it would 

expand the availability of RNAV in the 

central United States and improve the 

efficient flow of air traffic within the 

NAS by lessening the dependency on 

ground-based navigation. 

Comments Invited 

Interested parties are invited to 

participate in this proposed rulemaking 

by submitting such written data, views, 

or arguments as they may desire. 

Comments that provide the factual basis 

supporting the views and suggestions 

presented are particularly helpful in 

developing reasoned regulatory 

decisions on the proposal. Comments 

are specifically invited on the overall 

regulatory, aeronautical, economic, 

environmental, and energy-related 

aspects of the proposal. 

Communications should identify both 

docket numbers (FAA Docket No. FAA– 

2021–0054; Airspace Docket No. 20– 

AGL–34) and be submitted in triplicate 

to the Docket Management Facility (see 

ADDRESSES section for address and 

phone number). You may also submit 

comments through the internet at 

https://www.regulations.gov. 

Commenters wishing the FAA to 

acknowledge receipt of their comments 

on this action must submit with those 

comments a self-addressed, stamped 

postcard on which the following 

statement is made: ‘‘Comments to FAA 

Docket No. FAA–2021–0054; Airspace 

Docket No. 20–AGL–34.’’ The postcard 

will be date/time stamped and returned 

to the commenter. 

All communications received on or 

before the specified comment closing 

date will be considered before taking 

action on the proposed rule. The 

proposal contained in this action may 

be changed in light of comments 

received. All comments submitted will 

be available for examination in the 

public docket both before and after the 

comment closing date. A report 

summarizing each substantive public 

contact with FAA personnel concerned 

with this rulemaking will be filed in the 

docket. 

Availability of NPRMs 

An electronic copy of this document 

may be downloaded through the 

internet at https://www.regulations.gov. 

Recently published rulemaking 

documents can also be accessed through 

the FAA’s web page at https://

www.faa.gov/air_traffic/publications/ 

airspace_amendments/. 

You may review the public docket 

containing the proposal, any comments 

received and any final disposition in 

person in the Dockets Office (see 

ADDRESSES section for address and 

phone number) between 9:00 a.m. and 

5:00 p.m., Monday through Friday, 

except federal holidays. An informal 

docket may also be examined during 

normal business hours at the office of 

the Operations Support Group, Central 

Service Center, Federal Aviation 

Administration, 10101 Hillwood 

Parkway, Fort Worth, TX 76177. 

Availability and Summary of 

Documents for Incorporation by 

Reference 

This document proposes to amend 

FAA Order 7400.11E, Airspace 

Designations and Reporting Points, 

dated July 21, 2020 and effective 

September 15, 2020. FAA Order 

7400.11E is publicly available as listed 

in the ADDRESSES section of this 

document. FAA Order 7400.11E lists 

Class A, B, C, D, and E airspace areas, 

air traffic service routes, and reporting 

points. 

Background 

In 2003, Congress enacted the Vision 

100—Century of Aviation 

Reauthorization Act (Pub. L. 108–176), 

which established a joint planning and 

development office in the FAA to 

manage the work related to the Next 

Generation Air Transportation System 

(NextGen). Today, NextGen is an 

ongoing FAA-led modernization of the 

nation’s air transportation system to 

make flying safer, more efficient, and 

more predictable. 

In support of NextGen efforts to 

improve the safety and efficiency of the 

NAS, as well as transition the NAS from 

a ground-based to a satellite-based 

Performance Based Navigation (PBN) 

system, the FAA is proposing to 

establish RNAV routes T–322, T–392, 

T–403, and T–405 to provide additional 

PBN enroute structure. This action 

would reduce air traffic control (ATC) 

sector workload and complexity, reduce 

pilot-to-controller communication, 

assist ATC when non-radar procedures 

are required, and increase NAS capacity 

in the areas of the new RNAV T-routes. 

Additionally, the proposed T-routes 

would compensate for the previously 

removed airway segments of VOR 

Federal airways due to the Sioux City, 

IA; Park Rapids, MN; and Huron, SD, 

VORs being decommissioned effective 

February 25, 2021. The new T-routes 

would also provide Instrument Flight 

Rules (IFR) pilots that are equipped for 

RNAV PBN additional ATS route 

options for navigating around areas of 

heavy aviation activity and in areas of 

limited or no radar coverage. Visual 

Flight Rules (VFR) pilots, equipped with 

RNAV PBN, who elect to navigate via 

ATS routes, could also take advantage of 

the proposed RNAV T-routes. 

The new routes will also assist in 

reducing workload and sector 

complexity for air traffic controllers, 

facilitate reduction of air to ground 

communications, and assist in 


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Federal Register / Vol. 86, No. 39 / Tuesday, March 2, 2021 / Proposed Rules 12131 

increasing the efficiency and capacity of 

the NAS. 

The Proposal 

The FAA is proposing an amendment 

to Title 14 Code of Federal Regulations 

(14 CFR) part 71 to establish RNAV 

routes T–322, T–392, T–403, and T–405. 

The proposed new T-routes are 

described below. 

T–322: T–322 is a new RNAV route 

that extends between the Rapid City, 

SD, VOR/Tactical Air Navigation 

(VORTAC) and the Redwood Falls, MN, 

VOR/Distance Measuring Equipment 

(VOR/DME). This T-route provides 

enroute routing over VOR Federal 

airway V–26. 

T–392: T–392 is a new RNAV route 

that would extend between the MZEEE, 

IA, waypoint (WP) located near the 

Sioux City, IA, VORTAC and the GRSIS, 

MN, WP located near the Fairmont, MN, 

DME. 

T–403: T–403 is a new RNAV route 

that would extend between the GENEO, 

MN, WP located near the Darwin, MN, 

VORTAC and the BLUOX, MN, fix 

located 40 NM North of the Park Rapids, 

MN, DME. This T-route would provide 

enroute routing adjacent to VOR Federal 

airway V–171 between the Darwin, MN, 

VORTAC and the Alexandria, MN, 

VOR/DME; and overlapping VOR 

Federal airway V–175 between the 

Alexandria, MN, VOR/DME and the 

BLUOX, MN, fix. 

T–405: T–405 is a new RNAV route 

that would extend between the FIITS, 

SD, WP located near the Yankton, SD, 

VOR/DME and the GICHI, ND, WP 

located near the Devils Lake, ND, VOR/ 

DME. This T-route would provide 

enroute routing adjacent to VOR Federal 

airway V–159 between the Yankton, SD, 

VOR/DME and the Huron, SD, DME; 

enroute routing adjacent to VOR Federal 

airway V–15 between the Huron, SD, 

DME and the Aberdeen, SD, VOR/DME; 

and enroute routing adjacent to VOR 

Federal airway V–170 between the 

Aberdeen, SD, VOR/DME and the Devils 

Lake, ND, VOR/DME. 

United States RNAV T-routes are 

published in paragraph 6011 of FAA 

Order 7400.11E, dated July 21, 2020, 

and effective September 15, 2020, which 

is incorporated by reference in 14 CFR 

71.1. The RNAV routes listed in this 

document would be subsequently 

published in the Order. 

FAA Order 7400.11, Airspace 

Designations and Reporting Points, is 

published yearly and effective on 

September 15. 

Regulatory Notices and Analyses 

The FAA has determined that this 

proposed regulation only involves an 

established body of technical 

regulations for which frequent and 

routine amendments are necessary to 

keep them operationally current. It, 

therefore: (1) Is not a ‘‘significant 

regulatory action’’ under Executive 

Order 12866; (2) is not a ‘‘significant 

rule’’ under Department of 

Transportation (DOT) Regulatory 

Policies and Procedures (44 FR 11034; 

February 26, 1979); and (3) does not 

warrant preparation of a regulatory 

evaluation as the anticipated impact is 

so minimal. Since this is a routine 

matter that will only affect air traffic 

procedures and air navigation, it is 

certified that this proposed rule, when 

promulgated, will not have a significant 

economic impact on a substantial 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

Environmental Review 

This proposal will be subject to an 

environmental analysis in accordance 

with FAA Order 1050.1F, 

‘‘Environmental Impacts: Policies and 

Procedures’’ prior to any FAA final 

regulatory action. 

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(f), 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 7400.11E, 

Airspace Designations and Reporting 

Points, dated July 21, 2020, and 

effective September 15, 2020, is 

amended as follows: 

Paragraph 6011 United States Area 

Navigation Routes. 

* * * * * 

T–322 Rapid City, SD (RAP) to Redwood Falls, MN (RWD) 

Rapid City, SD (RAP) VORTAC (Lat. 43°58′33.74′′ N, long. 103°00′44.38′′ W) 

Philip, SD (PHP) VOR/DME (Lat. 44°03′29.66′′ N, long. 101°39′51.10′′ W) 

Pierre, SD (PIR) VORTAC (Lat. 44°23′40.40′′ N, long. 100°09′46.11′′ W) 

DAKPE, SD WP (Lat. 44°25′58.37′′ N, long. 098°42′23.05′′ W) 

Redwood Falls, MN (RWD) VOR/DME (Lat. 44°28′02.19′′ N, long. 095°07′41.63′′ W) 

*******

T392 MZEEE, IA to GRSIS, MN 

MZEEE, IA WP (Lat. 42°20′40.66′′ N, long. 096°19′24.54′′ W) 

KAATO, IA WP (Lat. 42°35′06.89′′ N, long. 095°58′53.08′′ W) 

BERRG, IA WP (Lat. 43°08′17.21′′ N, long. 095°10′46.46′′ W) 

GRSIS, MN WP (Lat. 43°38′45.54′′ N, long. 094°25′21.17′′ W) 

T–403 GENEO, MN to BLUOX, MN 

GENEO, MN WP (Lat. 45°05′15.37′′ N, long. 094°27′14.30′′ W) 

Alexandria, MN (AXN) VOR/DME (Lat. 45°57′30.20′′ N, long. 095°13′57.48′′ W) 

Park Rapids, MN (PKD) DME (Lat. 46°53′53.34′′ N, long. 095°04′15.21′′ W) 

BLUOX, MN WP (Lat. 47°34′33.13′′ N, long. 095°01′29.11′′ W) 

T–405 FIITS, SD TO GICHI, ND 

FIITS, SD WP (Lat. 42°55′06.67′′ N, long. 097°23′06.31′′ W) 

Mitchell, SD (MHE) VOR/DME (Lat. 43°46′37.28′′ N, long. 098°02′15.28′′ W) 

DIDDL, SD WP (Lat. 44°26′24.32′′ N, long. 098°18′39.06′′ W) 

Aberdeen, SD (ABR) VOR/DME (Lat. 45°25′02.48′′ N, long. 098°22′07.39′′ W) 

Jamestown, ND (JMS) VOR/DME (Lat. 46°55′58.34′′ N, long. 098°40′43.57′′ W) 

FARRM, ND FIX (Lat. 47°29′14.17′′ N, long. 099°01′34.50′′ W) 

GICHI, ND WP (Lat. 48°06′54.20′′ N, long. 098°54′45.14′′ W) 


jbell on DSKJLSW7X2PROD with PROPOSALS
12132 Federal Register / Vol. 86, No. 39 / Tuesday, March 2, 2021 / Proposed Rules 

1This requirement is set forth in three 

regulations, 18 CFR 35.41(c), 284.288(a), and 

284.403(a). Each sets forth the requirement in 

identical language. 

2Policy Statement on Natural Gas and Electric 

Price Indices, 104 FERC ¶ 61,121, at P 37 (Initial 

Policy Statement), clarified, 105 FERC ¶ 61,282 

(2003) (2003 Clarification Order), further clarified, 

112 FERC ¶ 61,040 (2005) (2005 Clarification Order) 

(collectively, Policy Statement). 

3See Actions Regarding the Commission’s Policy 

on Price Index Formation and Transparency, and 

Indices Referenced in Natural Gas and Electric 

Tariffs, 173 FERC ¶ 61,237 (2020). 

4The term fixed-price refers to a negotiated 

natural gas contract for next-day or next-month 

delivery, and physical basis transactions for nextmonth delivery. These transaction types are defined 

in the FERC Form No. 552: Annual Report of 

Natural Gas Transactions (FERC Form No. 552). The 

FERC Form No. 552 requires market participants 

that annually buy or sell more than 2.2 trillion 

British Thermal Units (Btu) of physical natural gas 

to provide aggregated data related to their fixedprice, physical basis, Nymex plus and index-based 

transactions made in the next-day and next-month 

(bidweek) markets. 

5S&P Global Platts (Platts), Natural Gas 

Intelligence (NGI), Argus, and Natural Gas Week are 

examples of price index developers. 

6 Initial Report on Company-Specific Separate 

Proceedings and Generic Reevaluations; Published 

Natural Gas Price Data; and Enron Trading 

Strategies, Docket No. PA02–2–000, at 38 (Aug. 13, 

2002). 

Issued in Washington, DC, on February 22, 

2021. 

George Gonzalez, 

Acting Manager, Rules and Regulations 

Group. 

[FR Doc. 2021–03931 Filed 3–1–21; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 35 and 284 

[Docket No. RM20–7–000] 

Safe Harbor Policy for Data Providers 

to Price Index Developers 

AGENCY: Federal Energy Regulatory 

Commission. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Commission proposes to 

amend its regulations to codify the Safe 

Harbor Policy established in the 

Commission’s Policy Statement on 

Natural Gas and Electric Price Indices. 

Under the Safe Harbor Policy, data 

providers that report transactions to 

natural gas and electric price index 

developers consistent with the 

procedures set forth in the Policy 

Statement are afforded a rebuttable 

presumption that their transaction data 

is accurate, timely, and submitted in 

good faith. The proposed change does 

not modify the existing policy and is 

intended to promote voluntary reporting 

of wholesale natural gas and electricity 

transactions to price index developers 

by alleviating market participant 

concerns that the Safe Harbor Policy is 

not binding on the Commission. 

DATES: Comments are due June 1, 2021. 

ADDRESSES: Comments, identified by 

Docket No. RM20–7–000, may be filed 

electronically at http://www.ferc.gov in 

acceptable native applications and 

print-to-PDF, but not in scanned or 

picture format. For those unable to file 

electronically, comments may be filed 

by mail to: Federal Energy Regulatory 

Commission, Secretary of the 

Commission, 888 First Street NE, 

Washington, DC 20426. Hand-delivered 

comments must be delivered to: Federal 

Energy Regulatory Commission, 12225 

Wilkins Avenue, Rockville, Maryland 

20852. The Comment Procedures 

Section of this document contains more 

detailed filing procedures. 

FOR FURTHER INFORMATION CONTACT: 

Maxwell K. Multer (technical issues), 

Office of Enforcement, Federal Energy 

Regulatory Commission, 888 First 

Street NE, Washington, DC 20426 

(202) 502–6756 

Evan B. Oxhorn (legal issues), Office of 

the General Counsel, Federal Energy 

Regulatory Commission, 888 First 

Street NE, Washington, DC 20426 

(202) 502–8183 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

Paragraph Numbers 

I. Background—3. 

II. Discussion—9. 

III. Environmental Analysis—13. 

IV. Regulatory Flexibility Act Certification— 

14. 

V. Comment Procedures—18. 

VI. Document Availability—22. 

1. Under the Commission’s 

regulations, a data provider (a market 

participant that reports transaction data 

to price index developers) must submit 

accurate and factual information to 

price index developers, and not 

knowingly submit false or misleading 

information or omit material 

information.1 Pursuant to the 

Commission’s Safe Harbor Policy, 

which is currently set forth in the 

Commission’s Policy Statement on 

Natural Gas and Electric Price Indices,2

if the data provider can demonstrate 

that it has adopted and followed the 

standards for reporting set forth in the 

Commission’s Policy Statement, it will 

benefit from a rebuttable presumption 

that it has submitted its transactions 

accurately, timely, and in good faith. 

The Commission proposes to codify its 

Safe Harbor Policy in its regulations. 

The proposed change does not modify 

the existing policy and, together with 

the proposed Revised Policy Statement 

that the Commission is issuing 

concurrently, is intended to promote 

voluntary reporting of wholesale natural 

gas and electricity transactions to price 

index developers.3

2. To codify the Safe Harbor Policy, 

we specifically propose to amend 18 

CFR 35.41(c), 284.288(a), and 284.403(a) 

of the Commission’s regulations by 

adding language to indicate: (1) That 

there will be a rebuttable presumption 

of accuracy, timeliness, and good faith 

for data providers who submit 

transactions to price index developers 

in a manner consistent with the Policy 

Statement; and (2) that inadvertent 

reporting errors by such data providers 

will not constitute violations of those 

regulations. 

I. Background 

3. Natural gas indices play a vital role 

in the energy industry, as they are used 

to price billions of dollars of natural gas 

and electricity transactions annually in 

both the physical and financial markets. 

A natural gas index is a weighted 

average price derived from a set of 

fixed-price 4 natural gas transactions 

within distinct geographical boundaries 

that market participants voluntarily 

report to a price index developer.5

4. Natural gas indices serve as a proxy 

for the locational cost of natural gas in 

the daily and monthly markets, as many 

market participants reference index 

prices in their physical and financial 

transactions. Interstate natural gas 

pipelines, Independent System 

Operators (ISOs), and Regional 

Transmission Organizations (RTOs) 

reference natural gas indices in their 

FERC-jurisdictional tariffs for various 

terms and conditions of service. State 

commissions also use natural gas 

indices as benchmarks when reviewing 

the prudence of natural gas or electricity 

purchases. Finally, many natural gas 

financial derivative contracts used in 

hedging and speculation settle against 

the natural gas price indices. 

5. Given that natural gas price index 

developers use physical fixed-price 

natural gas transactions to calculate the 

price of published natural gas indices, it 

is important that the market for these 

transactions be robust, liquid, and 

transparent. The Commission’s 

investigation into the 2000–2001 

Western Energy Crisis revealed 

problems in how published natural gas 

price indices were generated that 

‘‘facilitate[ed], rather than 

discourage[d], manipulation and 

collusion.’’ 6 Recognizing the need to 

restore confidence in natural gas price 


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