119 FERC ¶ 61,304 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Part 157 

(Docket No. RM07-17-000) 

Revisions to Landowner Notification and Blanket Certificate Regulations 

 (June 22, 2007) 

AGENCY: Federal Energy Regulatory Commission. 

ACTION: Notice of Proposed Rulemaking. 

SUMMARY: On October 19, 2006, the Federal Energy Regulatory Commission 

(Commission) issued a Final Rule amending its regulations to expand the scope and scale 

of activities that may be undertaken pursuant to blanket certificate authority and 

clarifying that existing Commission policies permit natural gas companies to charge 

different rates to different classes of customers.1

 The Commission proposes to further 

amend its regulations to modify the landowner notification requirements and require a 

noise survey following the completion of projects involving compressor facilities 

undertaken pursuant to blanket certificate authority. The proposed regulatory revisions 

should enhance public participation in the Commission’s consideration of proposed 

 1

 Order No. 686, 71 FR 63680 (October 31, 2006), FERC Stats & Regs ¶ 31,231 

(2006); Notice of Proposed Rulemaking (NOPR) 71 FR 36276 (June 26, 2006), FERC 

Stats. & Regs. ¶ 32,606 (2006). An order on rehearing and clarification of the Final Rule 

in Docket No. RM06-7-001 is issued contemporaneously with this NOPR. 119 FERC 

¶ 61,303 (2007). 
Docket No. RM07-17-000 

- 2 -

projects and ensure that compressor projects completed under blanket certificate authority 

will not have a significant adverse environmental impact. 

DATES: Comments are due [insert date 30 days after publication in the FEDERAL 

REGISTER]

ADDRESSES: You may submit comments, identified by Docket No. RM07-17-000, by 

one of the following methods: 

 Agency Web site: http://ferc.gov. Follow the instructions for submitting 

comments via the eFiling link found in the Comment Procedures section of the Preamble. 

 Mail: Commenters unable to file comments electronically must mail or hand 

deliver an original and 14 copies of their comments to: Federal Energy Regulatory 

Commission, Office of the Secretary, 888 First Street, N.E., Washington, DC 20426. 

Refer to the Comment Procedures section of the preamble for additional information on 

how to file paper comments. 

FOR FURTHER INFORMATION CONTACT: 

Gordon Wagner 

Office of the General Counsel 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

gordon.wagner@ferc.gov 

(202) 502-8947 

Michael McGehee 

Office of Energy Projects 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 
Docket No. RM07-17-000 

- 3 -

michael.mcgehee@ferc.gov 

(202) 502-8962 

Lonnie Lister 

Office of Energy Projects 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

lonnie.lister@ferc.gov 

202-502-8587 

SUPPLEMENTARY INFORMATION

:
UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Revisions to Landowner Notification Docket No. RM07-17-000 

and Blanket Certificate Regulations 

 

NOTICE OF PROPOSED RULEMAKING 

(June 22, 2007) 

I. Introduction 

1. On October 19, 2006, the Federal Energy Regulatory Commission (Commission) 

issued a Final Rule amending its Part 157, Subpart F, regulations to expand the scope and 

scale of activities that may be undertaken pursuant to blanket certificate authority and 

clarifying that existing Commission policies permit natural gas companies to charge 

different rates to different classes of customers.2

 The Commission proposes to further 

amend its Part 157 regulations to modify the landowner notification requirements and 

require a noise survey following the completion of projects involving compressor 

facilities undertaken pursuant to blanket certificate authority. The proposed regulatory 

revisions are expected to enhance public participation in the Commission’s consideration 

of proposed projects and ensure that compressor projects completed under blanket 

certificate authority will not have a significant adverse environmental impact.

 2

 Order No. 686, 71 FR 63680 (October 31, 2006), FERC Stats & Regs ¶ 31,231 

(2006); Notice of Proposed Rulemaking (NOPR) 71 FR 36276 (June 26, 2006), FERC 

Stats. & Regs. ¶ 32,606 (2006). An order on rehearing and clarification of the Final Rule 

in Docket No. RM06-7-000 is issued contemporaneously with this NOPR. 119 FERC 

¶ 61,303 (2007) 
Docket No. RM07-17-000 - 2 -

II. Background

2. The blanket certificate program relies on the presumption that any project 

permitted under blanket certificate authority will not have a significant adverse 

environmental impact. The Commission ensures that this is the case by restricting 

blanket certificate authority to certain types of facilities and to individual projects 

that can comply with a cost cap and the environmental requirements specified in 

§ 157.206(b). Prior to the Final Rule’s increase in the per project cost cap3

 and the 

expansion of blanket certificate authority to cover compressor facilities that alter 

mainline capacity, blanket certificate authority was restricted to a limited set of 

compression facilities, e.g., compressors on lateral pipelines, compressors installed 

temporarily, replacement compressors that could not qualify under § 2.55(b), and 

compressors needed to restore service lost due to sudden unforeseen damage to a 

mainline. 

3. A compressor project under the blanket certificate program is not subject to the 

same scrutiny and procedural safeguards that apply to a compressor project subject to 

case-specific NGA section 7 certificate authority. This is most pronounced with respect 

to a project that qualifies for automatic authorization under the blanket certificate 

regulations, in which case the Commission may remain unaware of the project’s 

construction until a company submits an annual report of projects completed under 

 3

 The Final Rule increased the blanket certificate project cost limits from 

$8,200,000 to $9,600,000 for automatic authorization projects and from $22,700,000 

to $27,400,000 for prior notice projects. 
Docket No. RM07-17-000 - 3 -

automatic blanket certificate authority pursuant to § 157.207. Thus, in contrast to a 

proposal for case-specific certificate authority, for a project subject to blanket certificate 

authority, the Commission and public are not assured the same opportunity to assess 

aspects of the project such as what constitutes a noise sensitive area (NSA),4

 the 

prospective uses of property proximate to a compressor facility, habitat impacts on nonresidential areas, whether a particular area has a heightened noise sensitivity that would 

merit a limit of less than 55 decibels (dBA), or the cumulative impacts resulting from 

modifying or expanding existing compressor facilities. 

4. As a result, whereas an individual assessment can be undertaken for each proposed 

case-specific compressor project in order to establish a noise level appropriate to the 

particular site, this is not the case for blanket certificate compressor projects. The more 

cursory standard of review necessary to expedite projects under the blanket certificate 

program, in conjunction with the expansion of the blanket certificate program, prompted 

the Commission to impose a stricter standard on the noise produced by blanket certificate 

compressor facilities. As proposed in the NOPR and implemented in the Final Rule,5

 the 

Commission stated that going forward, all compressor facilities constructed pursuant to 

blanket certificate authority must meet the standard day-night level (Ldn) limit of 55 dBA 

at the boundary of the compressor site. However, as discussed in the order on rehearing 

 4

 In the case of a blanket certificate compressor project, the blanket certificate 

holder, rather than the Commission, determines what constitutes a potentially affected 

NSA. 

5

 The revised blanket certificate regulations became effective on January 2, 2007. 
Docket No. RM07-17-000 - 4 -

of the Final Rule issued contemporaneously with this NOPR,6

 the Commission is 

returning to the noise limit in place prior to the Final Rule, which requires that 

compressor facilities installed under blanket certificate authority be no louder than an Ldn

of 55 dBA at any existing pre-existing NSA.

III. Proposed Regulatory Revisions

 A. Landowner Notification

5. Currently, a natural gas company that seeks to undertake a compressor project 

must notify all landowners with a residence within one-half mile of proposed 

compressors or their enclosures.7

 The Commission is concerned that this existing 

landowner notification requirement fails to capture all potentially affected landowners, 

because a compressor project could go forward without any notification to nearby 

landowners without a residence on their property. To guarantee that land use issues – 

including existing non-residential uses as well as future uses of undeveloped land – are 

adequately considered, the Commission proposes to revise § 157.6(d)(2)(iii), which 

defines “affected landowners” as: owners of property interests, as noted in the most 

recent county/city tax records as receiving the tax notice, whose property, “[c]ontains a 

residence within one-half mile of proposed compressors or their enclosures.” The 

Commission proposes to omit the qualification that the property contain a residence to 

ensure that all landowners within one-half mile of a compressor site receive notice prior 

 6

 See note 1. 

7

 See the landowner notification requirements, 18 CFR §§ 157.203(d)(1) and (2), 

and the definition of affected landowners, 18 CFR § 157.6(d)(2)(iii). 
Docket No. RM07-17-000 - 5 -

to construction, regardless of whether there is a residence on their property, and 

regardless of whether construction is undertaken pursuant to blanket or case-specific 

certificate authorization.8

B. Noise Survey

6. To verify compliance with the compressor noise limit, the Commission proposes 

to add a new § 157.206(b)(5)(ii) that will require a company installing compressor 

facilities under blanket certificate authority to submit a noise survey within 60 days of 

placing new facilities in service to demonstrate that noise attributable to the operation of 

the company’s new compressor facilities does not exceed an Ldn of 55 dBA at any 

preexisting NSA.9

 A noise survey measures the noise at selected locations to quantify the 

existing noise environment by using a sound level meter, a dosimeter, or an integrating 

sound level meter over a specified timeframe. 

7. The Commission concludes the above-described procedural modifications are 

necessary and sufficient to retain the expedited authorization available for blanket 

certificate projects while guaranteeing that compressor activities subject to the expanded 

 8

 This proposed revision of the 18 CFR 157.6(d)(2(iii) notification condition will 

also apply to landowners within one-half mile of liquefied natural gas (LNG) facilities. 

9

 The existing 18 CFR 157.206(b)(5)(ii) describing noise attributable to drilling 

activities will remain unchanged, but will be redesignated as 18 CFR 157.206(b)(5)(iii). 
Docket No. RM07-17-000 - 6 -

blanket certificate program will not have significant adverse environmental impacts.10 

The Commission invites comments on these proposed regulatory revisions. 

IV. Information Collection Statement

8. The Office of Management and Budget (OMB) regulations require that OMB 

approve certain reporting, record keeping, and public disclosure requirements (collections 

of information) imposed by an agency.11 Therefore, the Commission is providing notice 

of its proposed information collections to OMB for review in accordance with 

section 3507(d) of the Paperwork Reduction Act of 1995.12 Upon approval of a 

collection of information, OMB will assign an OMB control number and an expiration 

date. The only entities affected by this rule would be the natural gas companies under the 

Commission’s jurisdiction. 

9. FERC-537, "Gas Pipeline Certificates: Construction, Acquisition and 

Abandonment," identifies the Commission's information collections relating to Part 157 

of its regulations, which apply to natural gas facilities for which authorization under 

NGA section 7 is required, and includes all blanket certificate projects. 

 10 Currently, companies must conduct and submit a noise survey for compressor 

projects completed under case-specific certificate authority. The proposed new 18 CFR 

157.206(b)(5)(ii) would extend this same requirement to compressor projects completed 

under blanket certificate authority. Note that in the order on rehearing in Docket 

No. RM06-7-001 the Commission similarly seeks to harmonize requirements that apply 

to case-specific and blanket certificate compressor projects. See note 1. 

11 5 CFR 1320.11. 

12 44 U.S.C. 3507(d). 
Docket No. RM07-17-000 - 7 -

10. The proposed revisions to the Commission’s regulations, as contained in the 

NOPR, and the resulting change in collections of information burdens, are as follows. 

Natural gas companies seeking to construct, add to, or modify compressor or LNG 

facilities must provide notice to all landowners within one-half mile of the boundary of 

the project site. Currently, gas companies undertaking such activities are required to 

provide notice to landowners within one-half mile of the boundary of the project site only 

if there is a residence on their property. 

11. This proposed revision should have little impact on companies’ notice procedures. 

Currently, companies are compelled to identify all landowners of record within one-half 

mile of the project site, and then notify the subset of landowners with a residence on their 

property. In addition, as applicable, a company is also required to provide the names and 

addresses of affected landowners to the Commission as part of Resource Report 1 – 

General Project Description.13 Extending the notice requirement to all landowners should 

require a nominal additional effort. In fact, it may be the case that distinguishing 

properties with residences from those without is more burdensome than simply notifying 

all identified landowners. In view of this, the Commission expects the time and cost to 

notify non-residential landowners will prove to be de minimis. 

12. The Noise Control Act of 1972 established the requirement that all federal 

agencies administer their programs to promote an environment free of noise that 

 13 See 18 CFR 380, Appendix A. 
Docket No. RM07-17-000 - 8 -

jeopardizes public health and welfare.14 In 1974, the U.S. Environmental Protection 

Agency, acting to execute its responsibility to coordinate federal research and activities 

related to noise control, identified an Ldn of 55 dBA as necessary to protect against 

speech interference and sleep disturbance for residential, educational, and healthcare 

NSAs. 

13. The Commission proposes that a company installing compressor facilities under 

blanket certificate authority submit a noise survey within 60 days of placing new 

facilities in service to demonstrate that the noise attributable to the operation of the 

company’s compressors does not exceed an Ldn of 55 dBA at pre-existing NSAs. The 

Commission does not view this proposal as substantially modifying natural gas 

companies’ existing obligations, since the proposed submission of a noise survey simply 

provides verification of compliance with the existing noise requirement. This proposed 

noise survey requirement already applies to compressor projects subject to case-specific 

NGA section 7 certificate authority.15

14. The Commission estimates it will require 32 hours to complete a noise survey, and 

expects the aggregate impact of the proposal to be modest, given that in 2006, two 

 14 42 U.S.C. 4901, et seq. 

15 The potential cost savings to the industry that may be realized by enabling 

projects previously permitted only under case-specific authority to proceed under the 

expanded blanket certificate program were discussed in the Final Rule. With respect to 

the proposed noise survey, the Commission notes that case-specific projects require a 

noise survey both before and after construction. Thus, to some extent, the relatively 

minor cost of conducting a post-construction noise survey for a blanket certificate project 

will be offset by the benefit of not having to also conduct a noise survey before 

construction, as would be necessary for a case-specific certificate project. 
Docket No. RM07-17-000 - 9 -

blanket certificate compressor projects were completed. For the purpose of estimating 

burden hours, the Commission anticipates five such projects in the future. 

Data Collection No. of 

Respondents 

No. of 

Responses/Filings 

No. of Hours 

per Response 

Total 

Annual 

Hours 

FERC-537 (Part 157) 5 5 32 160 

Information Collection Costs: The above reflects the total reporting burden associated 

with the proposed broadening of the landowner notification requirement. Because of the 

regional differences and the various staffing levels that will be involved in preparing the 

documentation (legal, technical, and support) the Commission is using an hourly rate of 

$150 to estimate the costs for filing and other administrative processes (reviewing 

instructions, searching data sources, completing and transmitting the collection of 

information). The estimated cost is anticipated to be $3,360 per project, for a total of 

$24,000. 

Title: FERC-537. 

Action: Proposed Data Collection. 

OMB Control Nos.: 1902-0060 and 1902-0128. 

Respondents: Natural gas pipeline companies. 

Frequency of Responses: On occasion. 

Necessity of Information: Submission of the information is necessary for the 

Commission to carry out its NGA statutory responsibilities and meet the Commission’s 

objectives of expediting appropriate infrastructure development to ensure sufficient 

energy supplies while addressing landowner and environmental concerns fairly. 
Docket No. RM07-17-000 - 10 -

15. The Commission requests comments on the accuracy of the burden estimates, how 

the quality, quantity, and clarity of the information to be collected might be enhanced, 

and any suggested methods for minimizing the respondent's burden. Interested persons 

may obtain information on the reporting requirements or submit comments by contacting 

the Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, D.C. 

20426 (Attention: Michael Miller, Office of the Executive Director, 202-502-8415 or email michael.miller@ferc.gov). Comments may also be sent to the Office of 

Management and Budget (Attention: Desk Officer for the Federal Energy Regulatory 

Commission, fax: 202-395-7285 or e-mail: oira_submission@omb.eop.gov). 

V. Environmental Analysis

16. The Commission is required to prepare an Environmental Assessment (EA) or an 

Environmental Impact Statement (EIS) for any action that may have a significant adverse 

effect on the human environment.16 In promulgating the blanket certificate program in 

1982, the Commission prepared an EA in which it determined that, subject to compliance 

with the standard environmental conditions, projects under the blanket program would 

not have a significant environmental impact. As a result, the Commission determined 

that automatic authorization projects would be categorically excluded from the need for 

an EA or EIS under § 380.4 of the Commission’s regulations. However, the Commission 

specified that prior notice projects should be subject to an environmental review to ensure 

 16 Order No. 486, Regulations Implementing the National Environmental Policy 

Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs., Regulations Preambles 1986-

1990 ¶ 30,783 (1987). 
Docket No. RM07-17-000 - 11 -

each individual project would be environmentally benign, a requirement applicable to 

compression projects that would expand mainline capacity newly permitted under blanket 

certificate authority as a result of the Final Rule. 

17. As discussed herein, the Commission is proposing to expand landowner 

notification and require the submission of a post-project noise survey for blanket 

certificate activities involving compressor facilities. Therefore, this proposed rule does 

not constitute a major federal action that may have a significant adverse effect on the 

human environment. 

VI. Regulatory Flexibility Act Analysis

18. The Regulatory Flexibility Act of 1980 (RFA)17 generally requires a description 

and analysis of proposed regulations that will have significant economic impact on a 

substantial number of small entities. The Commission is not required to make such an 

analysis if proposed regulations would not have such an effect.18 Under the industry 

standards used for purposes of the RFA, a natural gas pipeline company qualifies as "a 

small entity" if it has annual revenues of $6.5 million or less. Most companies regulated 

by the Commission do not fall within the RFA's definition of a small entity.19

 17 5 U.S.C. 601-612. 

18 5 U.S.C. 605(b) (2000). 

19 5 U.S.C. 601(3), citing to section 3 of the Small Business Act, 15 U.S.C. 623 

(2000). 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. 
Docket No. RM07-17-000 - 12 -

19. The procedural modifications proposed herein should have no significant 

economic impact on those entities – be they large or small – subject to the Commission’s 

regulatory jurisdiction under NGA section 3 or 7, and no significant economic impact on 

state agencies. Accordingly, the Commission certifies that these proposed regulations, if 

promulgated, will not have a significant economic impact on a substantial number of 

small entities. 

VII. Public Comments

20. 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 by [insert date 

30 days from publication in the FEDERAL REGISTER]. Comments must refer to 

Docket No. RM07-17-000, and must include the commenter’s name and address, and if 

applicable, the organization represented. Comments may be filed either in electronic or 

paper format. The Commission encourages electronic filing. 

21. 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 requests commenters to submit comments in a text-searchable 

format rather than a scanned image format. Commenters filing electronically do not need 

to make a paper filing. Commenters unable to file comments electronically must send an 

original and 14 copies of their comments to: Federal Energy Regulatory Commission, 

Office of the Secretary, 888 First Street, N.E., Washington, DC, 20426. 
Docket No. RM07-17-000 - 13 -

22. 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

23. 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 print the contents 

of this document via the Internet through FERC's website (http://www.ferc.gov) and in 

FERC's Public Reference Room during normal business hours (8:30 a.m. to 5:00 p.m. 

Eastern time) at 888 First Street, N.E., Room 2A, Washington D.C. 20426. User 

assistance is available for FERC’s website during normal business hours from FERC’s 

Online Support at 202-502-6652, toll free at 1-866-208-3676, or by e-mail at 

ferconlinesupport@ferc.gov, and from the Public Reference Room at 202-502-8371, 

TTY at 202-502-8659, or by 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. 

( S E A L ) 

Kimberly D. Bose, 

 Secretary. 
Docket No. RM07-17-000 - 14 -

 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. In § 157.6, paragraph (d)(2)(iii) is revised to read as follows: 

§ 157.6 Applications; general requirements. 

 * * * * * 

 (d) * * * 

 (2) * * * 

 (iii) Is within one-half mile of proposed compressors or their enclosures or LNG 

facilities; or 

 * * * * * 

3. In § 157.206, paragraph (b)(5)(ii) is redesignated as paragraph (b)(5)(iii) and a 

new paragraph (b)(5)(ii) is added, to read as follows: 

§ 157.206 Standard conditions. 

 * * * * * 

 (b) * * * 

 (5) * * * 
Docket No. RM07-17-000 - 15 -

 (ii) For each new compressor station, compressor addition, or modification to an 

existing compressor, the blanket certificate holder must file a noise survey with the 

Secretary no later than 60 days after the activity is complete and the compressor facility 

is placed in service. If the noise attributable to the operation of the facility at full load 

exceeds an Ldn of 55 dBA at any nearby noise-sensitive areas, the blanket certificate 

holder shall file a report on what changes are needed and must put in place additional 

noise controls to meet the 55 dBA level within 1 year of the in-service date. The blanket 

certificate holder must confirm compliance with this requirement by filing a subsequent 

noise survey with the Secretary no later than 60 days after installation of the additional 

noise controls. 

 * * * * *