141 FERC ¶ 61,037

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

18 CFR Part 284

[Docket No. RM12-17-000]

Revisions to Procedural Regulations Governing Transportation by Intrastate Pipelines

(Issued October 18, 2012)

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of Proposed Rulemaking.

SUMMARY: The Federal Energy Regulatory Commission is proposing to revise its 

regulations to provide optional notice procedures for processing rate filings by those 

natural gas pipelines that fall under the Commission’s jurisdiction pursuant to section 311 

of the Natural Gas Policy Act of 1978 or section 1(c) of the Natural Gas Act. An 

intrastate pipeline may elect to use these procedures for approval of a filing pursuant to 

§ 284.123 of the Commission’s regulations. Under these procedures, if there is no protest 

to the filing as determined under this proposal, the filing would be deemed approved 

without a Commission order. The proposed rule would result in regulatory certainty and 

a reduction of regulatory burdens.

DATES: Comments are due [INSERT DATE 30 days after publication in the 

FEDERAL REGISTER]

ADDRESSES: Comments, identified by docket number, may be filed in the following 

ways: 
Docket No. RM12-17-000 - 2 -

 Electronic Filing through http://www.ferc.gov. Documents created electronically 

using word processing software should be filed in native applications or print-toPDF format and not in a scanned format.

 Mail/Hand Delivery: Those unable to file electronically may mail or hand-deliver 

comments to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street, NE, Washington, DC 20426.

Instructions: For detailed instructions on submitting comments and additional 

information on the rulemaking process, see the Comment Procedures section of this 

document

FOR FURTHER INFORMATION CONTACT:

David Tishman (Legal Information)

Office of the General Counsel

Federal Energy Regulatory Commission

888 First Street NE

Washington, DC 20426

(202) 502-8515

David.Tishman@ferc.gov 

James Sarikas (Technical Information)

Office of Energy Market Regulation

Federal Energy Regulatory Commission

888 First Street NE

Washington, DC 20426

(202) 502-6831

James.Sarikas@ferc.gov 

SUPPLEMENTARY INFORMATION:
UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Revisions to Procedural Regulations Governing 

Transportation by Intrastate Pipelines

Docket No. RM12-17-000

NOTICE OF PROPOSED RULEMAKING

TABLE OF CONTENTS

Paragraph Numbers

I. Background ............................................................................................................................2.

II. Discussion .............................................................................................................................8.

A. Optional Notice Procedure ..............................................................................................8.

B. Periodic Rate Review of the Rates and Charges of Intrastate Pipelines .........................18.

C. Withdrawal Procedures ....................................................................................................20.

III. Information Collection Statement .......................................................................................21.

IV. Environmental Analysis......................................................................................................28.

V. Regulatory Flexibility Act ....................................................................................................29.

VI. Comment Procedures ..........................................................................................................30.

VII. Document Availability.......................................................................................................34.
141 FERC ¶ 61,037

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Revisions to Procedural Regulations Governing 

Transportation by Intrastate Pipelines

Docket No. RM12-17-000

NOTICE OF PROPOSED RULEMAKING

(October 18, 2012)

1. The Commission proposes new optional notice procedures which intrastate 

pipelines may elect to use when filing proposed rates or operating conditions pursuant to 

§ 284.123 of the Commission’s regulations.1 Section 284.123 applies to filings by: (1) 

intrastate pipelines providing interstate services pursuant to section 311 of the Natural 

Gas Policy Act of 1978 (NGPA)2and (2) Hinshaw3pipelines providing interstate services 

subject to the Commission’s Natural Gas Act (NGA) jurisdiction pursuant to blanket 

certificates issued under § 284.224 of the Commission’s regulations.4 If there is no 

 

1

18 CFR 284.123.

2

15 U.S.C. 3372.

3

Section 1(c) of the NGA exempts from the Commission’s NGA jurisdiction 

pipelines which transport gas in interstate commerce if (1) they receive natural gas at or 

within the boundary of a state, (2) all the gas is consumed within that state, and (3) the 

pipeline is regulated by a state Commission. This exemption is referred to as the 

Hinshaw exemption after the Congressman who introduced the bill amending the NGA to 

include § 1(c). See ANR Pipeline Co. v. Federal Energy Regulatory Comm’n, 71 F.3d 

897, 898 (1995) (briefly summarizing the history of the Hinshaw exemption).

4

18 CFR 284.224.
Docket No. RM12-17-000 - 2 -

protest to a filing made under these notice procedures, the filing would be deemed 

approved without a Commission order. The Commission finds that the new procedures 

will result in regulatory certainty and a reduction of regulatory burdens on intrastate 

pipelines.

I. Background

2. NGPA section 311 authorizes the Commission to allow intrastate pipelines to 

transport gas “on behalf of” interstate pipelines or local distribution companies served by 

interstate pipelines “under such terms and conditions as the Commission may prescribe.”5 

NGPA section 601(a)(2) exempts transportation service authorized under NGPA section 

311 from the Commission’s NGA jurisdiction. Congress adopted these provisions to 

eliminate the regulatory barriers between the intrastate and interstate markets and to 

promote the entry of section 311 pipelines into the interstate market. Shortly after the 

adoption of the NGPA, the Commission authorized Hinshaw pipelines to apply for NGA 

section 7 certificates authorizing them to transport gas in interstate commerce in the same 

manner as section 311 pipelines may do under NGPA section 311.6

3. Subpart C of the Commission’s Part 284 open access regulations (18 CFR 

284.121-126) implements the provisions of NGPA section 311 concerning transportation 

by intrastate pipelines. NGPA section 311 provides that the rates of intrastate pipelines 

 

5

15 U.S.C. 3371(c).

6 Certain Transportation, Sales and Assignments by Pipeline Companies not 

Subject to Commission Jurisdiction Under Section 1(c) of the Natural Gas Act, Order 

No. 63, FERC Stats. & Regs. ¶ 30,118, at 30,824-825 (1980).
Docket No. RM12-17-000 - 3 -

performing transportation service under the NGPA shall be fair and equitable. Section 

284.123 of the regulations provides procedures for section 311 and Hinshaw pipelines to 

establish fair and equitable rates for interstate services.

4. Section 284.123(b) allows intrastate pipelines an election of the methodology 

upon which to base their rates for interstate services. Section 284.123(b)(1) permits an 

intrastate pipeline to elect to base its rates on the methodology used by the appropriate 

state regulatory agency (A) to design rates to recover transportation or other relevant 

costs included in a then effective firm sales rate for city-gate service on file with the state 

agency; or (B) to determine the allowance permitted by the state agency to be included in 

a natural gas distributor's rates for city-gate natural gas service. Section 284.123(b)(1) 

also permits an intrastate pipeline to use the rates contained in one of its then effective 

transportation rate schedules for intrastate service on file with the appropriate state 

regulatory agency which the intrastate pipeline determines covers service comparable to 

service under Subpart C of Part 284.

5. If the intrastate pipeline does not make an election under paragraph (b)(1) of 

§ 284.123, § 284.123(b)(2) requires that it “apply for Commission approval, by order, of 

the proposed rates and charges” pursuant to the procedures in that paragraph. Section 

284.123(b)(2)(i) provides for the pipeline to file a petition for approval of the proposed 

rates and charges, as well as information showing the proposed rates and charges are fair 

and equitable. Upon filing the petition for approval, the intrastate pipeline is permitted to 

commence the transportation service and charge and collect the proposed rate, subject to 

refund. Section 284.123(b)(2)(ii) provides that the rate proposed in the application will 
Docket No. RM12-17-000 - 4 -

be deemed to be fair and equitable and not in excess of an amount which interstate 

pipelines would be permitted to charge for providing similar transportation service, 

unless within the 150 day period after the date on which the Commission received a filed 

application, the Commission either extends the time for action, or institutes a proceeding 

in which all interested parties will be afforded an opportunity for written comments and 

for the oral presentation of views, data, and arguments. The Commission has extended 

this 150 day period when necessary, for example, to allow settlement in contested 

proceedings or institute proceedings in complex cases. 

6. Section 284.123(e) requires that, within thirty days of commencement of a new 

service, any intrastate pipeline that engages in transportation arrangements under Subpart 

C of Part 284 must file with the Commission a statement that includes the pipeline's 

interstate rates, the rate election made pursuant to § 284.123(b) of that section, and a 

description of how the pipeline will engage in these transportation arrangements, 

including operating conditions, such as gas quality standards and financial viability of the 

shipper. This statement is generally referred to as the pipeline’s “Statement of Operating 

Conditions.” Section 284.123(e) also requires that, if the pipeline changes its operations, 

rates, or rate election, it must amend the statement and file such amendments no later 

than thirty days after commencement of the change in operations or the change in rate 

election.

7. As part of its overall, more light-handed regulation of section 311 and Hinshaw 

pipelines, the Commission has established a policy of requiring a periodic review of the 

rates of both types of pipelines. The Commission has held that, because these pipelines 
Docket No. RM12-17-000 - 5 -

are not subject to the same reporting requirements or level of rate review as interstate 

pipelines, a periodic review of the rates of section 311 and Hinshaw pipelines is 

necessary to ensure that those rates remain fair and equitable. In Order No. 735, the 

Commission modified its previous triennial rate review policy in order to decrease the 

frequency of review from three to five years from the date the approved rates took effect.7 

While the periodic rate review requirement is not part of the Commission’s regulations, 

the Commission has consistently imposed that requirement in its orders approving each 

rate filing by an intrastate pipeline. The Commission imposes this rate requirement, both 

when the intrastate pipeline has chosen to elect a state-based rate pursuant to 

§ 284.123(b)(1) or has proposed a rate for a Commission-approved rate pursuant to 

§ 284.123(b)(2).8 

II. Discussion

A. Optional Notice Procedure 

8. In an effort to reduce burdens on regulated entities, the Commission is proposing 

to add a new optional notice procedure under which section 311 and Hinshaw pipelines 

could seek approval of proposed rates or operating conditions without the need for a 

Commission order. Under this procedure, the intrastate pipeline’s filing would be 

 

7 Contract Reporting Requirements of Intrastate Natural Gas Companies, Order 

No. 735, 75 Fed. Reg. 29,404, (May 26, 2010) FERC Stats. & Regs. ¶ 31,310, at P 96 

(2010), order on reh’g, Order No. 735-A, 75 Fed. Reg. 80,685 (Dec. 23, 2010), FERC 

Stats. & Regs. ¶ 31,318, (2010).

8 Order No. 735 FERC Stats. & Regs. ¶ 31,310 at P 92 and cases cited.
Docket No. RM12-17-000 - 6 -

deemed approved without any order of the Commission, if the filing is not protested 

within a specified period after notice of the filing or if any protests are resolved during a 

reconciliation period. This optional procedure would be included in § 284.123(g) of our 

regulations. 

9. The Commission is taking this action as part of its commitment to continually 

review its regulations and streamline or eliminate requirements that impose an 

unnecessary burden on regulated entities. The Commission believes that this notice 

procedure would provide an expedited and less burdensome method of processing filings 

by section 311 and Hinshaw pipelines which present few, if any, contested issues. Many 

of the intrastate pipeline companies filing rates and/or statements of operating conditions 

pursuant to § 284.123 are small and have few interstate shippers. Discount rate 

agreements are common, with the result that often the pipeline performs most of its 

interstate services at rates which are discounted substantially below its maximum rates 

for such services. Most pipeline filings under § 284.123 are not protested by any shipper. 

If a rate filing is protested, the protests often raise issues which are relatively amenable to 

settlement. The proposed optional notice procedure would permit approval of 

uncontested filings without the need for any Commission order upon expiration of a 60-

day notice period (or other period established by the Secretary of the Commission for a 

particular filing). If a protest were filed within the notice period, proposed § 284.123(g) 

provides for an additional 30-day reconciliation period to resolve contested filings 

without the need for the parties to file a formal settlement offer pursuant to the 
Docket No. RM12-17-000 - 7 -

Commission’s settlement rules in § 385.601, et seq.9or a Commission order on the 

pipeline’s proposal. 

10. Currently our regulations permit similar prior notice blanket certificate 

procedures for interstate pipelines in § 157.205. That program has been in place for over 

three decades and has significantly reduced regulatory burden and provides pipelines 

certainty with regard to the disposition of their applications.10 The Commission believes 

that proposed § 284.123(g) would similarly lessen regulatory burdens, provide increased 

regulatory certainty, and create an improved framework in which to achieve settlement of 

contested cases.

11. The optional notice procedure in proposed § 284.123(g) would operate as 

follows: Within ten days after a filing by an intrastate pipeline pursuant to the optional 

notice procedure, the Secretary of the Commission would issue a notice of the filing, 

which would be published in the FEDERAL REGISTER. That notice would provide a 

deadline for interventions and initial comments fourteen days after the date of the filing 

and for final comments and protests sixty days after the date of the filing or such other 

date established by the Secretary of the Commission. As proposed, any person or the 

Commission’s staff is permitted to file a protest prior to the deadline. If no protest is 

filed within the time allowed, the filing would be deemed approved without a 

 

9

18 CFR § 385.601, et seq. (2012).

10 Interstate Pipeline Certificates for Routine Transactions, Order No. 234, FERC 

Stats & Regs. ¶ 30,368 (1982).
Docket No. RM12-17-000 - 8 -

Commission order, upon expiration of the time for filing protests, unless the intrastate 

pipeline has withdrawn, amended, or modified its filing or the filing is rejected prior to 

that date.

12. If a protest is filed, proposed § 284.123(g)(5) allows a reconciliation period for 

negotiations in a structured process to promote settlement of contested cases. 

Specifically, this section would permit the intrastate pipeline, the person who filed the 

protest in accordance with proposed § 284.123(g)(4), any intervenors, and staff thirty 

days from the deadline for protests to the pipeline’s filing, to resolve the protest, and to 

convene informal settlement conferences to assist in resolving the protest. If all protests 

to the filing are withdrawn pursuant to proposed paragraph (g)(6) by the end of the 

reconciliation period, the filing would be deemed approved. Alternatively, proposed 

paragraph (g)(7) permits the pipeline to amend or modify a tariff record in order to 

resolve concerns raised in a protest. Proposed paragraph (g)(7) provides that such a filing 

will toll the notice period established under paragraph (g)(3) of this section for the 

original filing, and the Secretary of the Commission will issue a notice establishing new 

deadlines for comments and protests for the entire filing pursuant to paragraph (g)(3). 

The intrastate pipeline may request a deadline for protests less than 60 days after the date 

of the filing. If there are no protests to the amendment or modification and any protests 

to the entire filing which have been filed are withdrawn, the amended filing would be 

deemed approved as of the day after the new deadline for protests established by the 

Secretary. 
Docket No. RM12-17-000 - 9 -

13. If a filing is still contested after the above procedures are completed, the filing 

would not be deemed approved and, within sixty days from the deadline for filing 

protests, the Commission would establish procedures to resolve the proceeding. The 150-

day period in existing § 284.123(b)(2)(ii) under which filings are deemed approved 

unless the Commission acts within that period does not apply to filings pursuant to the 

new notice procedures. 

14. While the proposed rules would establish a reconciliation period to promote 

settlement of protested filings, compliance with the Commission’s rules regarding offthe-record communications in § 385.2201 would be required. Under the general rule set 

forth in § 385.2201(b), in any proceeding where an intervenor disputes any material issue 

resulting in a contested proceeding, no person outside the Commission shall make or 

knowingly cause to be made to a decisional employee, and no decisional employee shall 

make or knowingly cause to be made to any person outside the Commission, any off-therecord conversation, except off-the-record communications exempted by § 385.2201(e). 

Therefore, under the Commission’s proposed revisions to § 284.123, when an intervenor 

disputes any material issue in the filings by intrastate pipelines the rules governing offthe-record conversations in § 385.2201 would be applicable. 

15. The Commission is also adding procedures to further streamline the processing 

of these filings. The Director of the Office of Energy Market Regulation or his designee 

is required pursuant to paragraph (g)(2) to reject within seven days of the date of the 

filing any filing which patently fails to comply with the provisions of §§ 284.123(e) or 

284.123(f), without prejudice to the intrastate pipeline’s refiling a complete application. 
Docket No. RM12-17-000 - 10 -

If such filing was required by § 284.123, it must be refiled within fourteen days of the 

date of the rejection.

16. The protestor may withdraw a protest under proposed paragraph (g)(6) by 

submitting written notice of withdrawal to the Secretary of the Commission pursuant to §

385.216 of the Commission’s regulations and serving a copy on the intrastate pipeline, 

any intervenors, and any other person who has filed a motion to intervene in the 

proceeding. If any protest is filed within the time allowed for protests and is 

subsequently withdrawn under proposed paragraph (g)(6), the filing by the intrastate 

pipeline would be deemed approved effective upon the later of the day after the deadline 

for filing protests, if there are no other protests to the filing, or the day after the 

withdrawal of all protests unless the intrastate pipeline withdraws, amends, or modifies 

its filing or the filing is rejected in accordance with this paragraph prior to that date.

17. Under proposed paragraphs (g)(10) and (h) an intrastate pipeline may file to 

withdraw its filing prior to Commission action. Because § 284.123(b)(2)(i) permits an 

intrastate pipeline to commence collecting a proposed rate subject to refund upon making 

its filing, the pipeline must state in its withdrawal motion that any amounts collected 

subject to refund in excess of the rates authorized by the Commission will be refunded 

with interest, and that it will file a refund report. The refunds must be made within sixty 

days of the date the withdrawal motion becomes effective. A filing that is withdrawn will 

not fulfill the requirements under proposed paragraph (g)(8) for approval of a filing.
Docket No. RM12-17-000 - 11 -

B. Periodic Rate Review of the Rates and Charges of Intrastate Pipelines 

18. The Commission has a policy of requiring a review of the rates of both section 

311 and Hinshaw pipelines every five years. While the periodic rate review requirement 

is not part of the Commission’s existing regulations, the Commission has consistently 

imposed that requirement in its orders approving each rate filing by an intrastate pipeline. 

The proposed optional notice procedures provide for approval of the filing without a 

Commission order. Therefore, the Commission proposes in § 284.123(g)(9) to require 

that a NGPA section 311 intrastate pipeline whose rates are deemed approved under the 

optional notice procedures file an application for rate approval under § 284.123 on or 

before the date five years following the date it filed the application for approval of the 

rates pursuant to § 284.123(g). Similarly, a Hinshaw pipeline whose rates are deemed 

approved under § 284.123(g) would be required to file either (1) cost and throughput data 

sufficient to allow the Commission to determine whether any change to the pipeline’s 

rates should be ordered pursuant to section 5 of the Natural Gas Act or (2) a petition for 

rate approval pursuant to § 284.123, on or before the date five years following the date it 

filed the application for approval of rates pursuant to § 284.123(g).11

 

11 The courts have held that the Commission cannot require interstate pipelines 

subject to its NGA jurisdiction to make new rate filings under NGA section 4. Public 

Service Commission of New York v. FERC, 866 F.2d 487 (D.C. Cir. 1989). Consumers 

Energy Co. v. FERC, 226 F.3d 777 (6th Cir. 2000). Because the Commission regulates 

interstate services performed by Hinshaw pipelines under the NGA, the Commission 

gives them the option of filing a cost and revenue study every five years, instead of a new 

petition for rate approval. Consumers Energy Co., 94 FERC ¶ 61,287 (2001).
Docket No. RM12-17-000 - 12 -

19. Under the Commission’s proposal, the periodic rate review in our regulations 

would only be applicable when intrastate pipelines file under these proposed procedures 

in § 284.123(g). Therefore, the overall regulatory burden for the proposed procedures is 

less than current procedures for rate approval.

C. Withdrawal Procedures

20. The Commission proposes in § 284.123(h) to codify the procedures for section 

311 and Hinshaw pipelines to withdraw any filing under § 284.123 in its entirety prior to 

its approval, including filings made under the existing procedures in § 284.123. 

Currently, the practice would require a request to withdraw a filing to be filed under the 

Commission’s general rules of practice and procedure. Because § 284.123(b)(2)(i) 

permits an intrastate pipeline to commence collecting a proposed rate subject to refund 

upon making its filing, proposed § 284.123(h)(1) would require the pipeline to 

acknowledge that any amounts collected subject to refund in excess of the rates 

authorized the Commission will be refunded with interest and a refund report will be 

filed. The refunds must be made within sixty days of the date the withdrawal motion 

becomes effective. A shipper will have 15 days to respond to the pipeline’s filing. 

Section 284.123(h)(2) would make the pipeline’s withdrawal of its filing effective at the 

end of 15 days from the date of filing the withdrawal motion, if no opposition to the 

motion is filed within that period and the Commission does not issue an order disallowing 

the motion. This proposal would add regulatory certainty as to the Commission’s 

treatment of withdrawal filings, and ensure that the pipeline will know its obligations if it 

withdraws a filing. 
Docket No. RM12-17-000 - 13 -

III. Information Collection Statement

21. The Paperwork Reduction Act (PRA)12 requires each federal agency to seek and 

obtain Office of Management and Budget (OMB) approval before undertaking a 

collection of information directed to ten or more persons or contained in a rule of general 

applicability.13 The OMB’s regulations implementing the PRA require approval of 

certain information collection requirements imposed by agency rules.14 Upon approval of 

a collection(s) of information, OMB will assign an OMB control number and an 

expiration date. Respondents subject to the filing requirements of an agency rule will not 

be penalized for failing to respond to these collections of information unless the 

collections of information display a valid OMB control number. 

22. The Commission is submitting these proposed reporting and recordkeeping 

requirements to OMB for its review and approval. The Commission solicits comments 

on the proposed modifications, the accuracy of burden estimates, ways to enhance the 

quality, utility, and clarity of the information to be collected, and any suggested methods 

for minimizing respondents’ burden.

23. The Commission’s estimates of the average annual public reporting burden 

imposed on the section 311 and Hinshaw intrastate pipelines of making filings for rate 

 

12 44 U.S.C. 3501-3520.

13 OMB’s regulations at 5 CFR 1320.3(c)(4)(i) require that “[a]ny recordkeeping, 

reporting, or disclosure requirement contained in a rule of general applicability is deemed 

to involve ten or more persons.”

14 5 CFR 1320.
Docket No. RM12-17-000 - 14 -

approval under § 284.123 will not change, except for an estimated burden of only 12 

hours per year for the new withdrawal filing requirements as a result of the proposed rule 

in Docket No. RM12-17-000. Following is a table showing the existing burden estimate, 

a relabeling to reflect the new filing option, and the additional withdrawal procedures 

specifically tailored for intrastate pipelines. 

FERC-549 (OMB Control No. 

1902-0086)

Number of 

Respondents

(a)

Burden Hours 

Per 

Respondent 

Per Year 

(1 filing/year)

(b)

Total Annual 

Burden Hours

(a X b)

Existing Inventory:

Rates and Charges for Intrastate 

Pipelines (18 CFR 284.123(b) 

and (e)) 67 12 804

Proposed in NOPR in RM12-17:

Rates and Charges for Intrastate 

Pipelines (18 CFR 284.123(b), 

(e) and (g)) 67 12 804

Withdrawal of Filing prior to 

Approval (18 CFR 284.123(h)) 1 12 12

FERC-549 Total (Proposed) 67 12 816

Information Collection Costs: The Commission has reviewed the burdens imposed by 

this rulemaking. The Commission’s review found that the proposed changes will not 

affect the burden on section 311 intrastate and Hinshaw pipelines of making an initial 

filing seeking approval of proposed rates or operating conditions pursuant to § 284.123. 

The preparation effort or the substance of a filing made pursuant to § 284.123(g) would 

be the same as for a filing made pursuant to existing §§ 284.123(b) and/or 284.123(e). 
Docket No. RM12-17-000 - 15 -

24. The Commission is also proposing a new withdrawal procedure for filings made 

prior to their approval to reflect the unique nature of the intrastate pipeline regulations 

that allow a pipeline to file for a rate change and begin charging the new rates prior to 

Commission approval. The proposed new § 284.123(h) regulation will reflect the 

regulatory process that addresses that unique rate implementation issue. The 

Commission believes it would add certainty to any intrastate pipeline making a 

withdrawal filing. 

25. The proposed changes will primarily affect the post-filing process and cost. The 

changes will reduce overall cost and delay for stakeholders; however that post-filing 

burden is beyond the scope of requirements of the Paperwork Reduction Act. The new 

optional procedures will provide both intrastate pipelines and their shippers greater 

regulatory certainty and a simpler process without any change in the upfront burden of 

preparing and making a filing. 

TITLE: FERC-549, NGPA Title III Transactions and NGA Blanket Certificate 

Transactions (OMB Control No. 1902-0086).

ACTION: Proposed revisions.

RESPONDENTS: Section 311 Intrastate and Hinshaw Natural Gas Pipelines. 

FREQUENCY OF RESPONSES: At least once every five years.

NEED FOR INFORMATION: The Commission proposes adding a new optional notice 

procedure in § 284.123(g) which section 311 intrastate and Hinshaw pipelines could use 

when making a filing seeking approval of proposed rates or operating conditions pursuant 

to § 284.123. As proposed, an intrastate pipeline may choose to file using the current 
Docket No. RM12-17-000 - 16 -

procedures pursuant to §§ 284.123(b) and 284.123(e), or may elect to file pursuant to the 

new procedure. Section 284.123(g) provides a shortened period for final approval of the 

proposed rates and operating conditions and authorization if no protest is filed within the 

time allowed and a reconciliation period of 30 days from the deadline for protests to 

resolve contested filings without the need for a Commission order on the pipeline’s rate 

proposal. 

26. In 18 CFR 284.123(h), the Commission also proposes to implement new 

regulations with respect to withdrawal of a filing prior to approval. The regulations 

provide more details about the rights and obligations of the intrastate pipeline and its 

shippers. These procedures would lessen regulatory costs, provide increased regulatory 

certainty, and result in an improved framework in which to achieve settlement of 

contested cases. 

INTERNAL REVIEW: The Commission has reviewed the proposed changes and has 

determined that the changes are necessary. These requirements conform to the 

Commission’s need for efficient information collection, communication, and 

management within the energy industry. The Commission has assured itself, by means of 

internal review, that there is specific, objective support for the burden estimates 

associated with the information collection requirements.

27. Interested persons may obtain information on the reporting requirements by 

contacting: Federal Energy Regulatory Commission, 888 First Street, NE, Washington, 

DC 20426 [Attention: Ellen Brown, Office of the Executive Director, e-mail: 

DataClearance@ferc.gov, Phone: (202) 502-8663, fax: (202) 273-0873]. Comments on 
Docket No. RM12-17-000 - 17 -

the requirements of this rule may also be sent to the Office of Information and Regulatory 

Affairs, Office of Management and Budget, Washington, DC 20503 [Attention: Desk 

Officer for the Federal Energy Regulatory Commission]. For security reasons, comments 

should be sent by e-mail to OMB at oira_submission@omb.eop.gov. Please reference 

OMB Control No. 1902-0086, FERC-549, and Docket No. RM12-17 in your submission. 

IV. Environmental Analysis

28. 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.15 The Commission has categorically excluded certain actions 

from these requirements as not having a significant effect on the human environment.16 

The actions proposed to be taken here fall within categorical exclusions in the 

Commission’s regulations for rules that are corrective, clarifying or procedural, for 

information gathering, analysis, and dissemination, and for sales, exchange, and 

transportation of natural gas that requires no construction of facilities.17 Therefore an 

environmental review is unnecessary and has not been prepared in this rulemaking.

 

15 Regulations Implementing National Environmental Policy Act, Order No. 486, 

52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs., Regulations Preambles 1986-1990 

¶ 30,783 (1987).

16 18 CFR 380.4.

17 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5) and 380.4(a)(27).
Docket No. RM12-17-000 - 18 -

V. Regulatory Flexibility Act

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

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

number of small entities. The Commission identified two small entities as respondents to 

the requirements in the proposed rule.19 As explained above, the Commission estimates 

that the proposed § 284.123(g) regulations will serve as a substitute for filings currently 

done pursuant to §§ 284.123(b) and (e), and § 284.123(h) provides regulatory certainty if 

a pipeline decides to withdraw its filing. The Commission estimates that intrastate 

pipelines will experience little if any change in regulatory burden associated with making 

their filings, and pipelines will be able to avoid certain costs and delays post-filing due to 

the new streamlined process. Accordingly, the Commission certifies that this rule will 

not have a significant impact on a substantial number of small entities and no regulatory 

flexibility analysis is required. 

VI. Comment Procedures

30. 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 

 

18 5 U.S.C. 601-612.

19 The U. S. Small Business Administration’s (SBA) Table of Small Business Size 

Standards is found in 13 CFR 121.201. SBA’s updated version of the size standards 

(effective March 26, 2012, and available at 

http://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf) defines a natural 

gas pipeline (contained in Subsector 486, Pipeline Transportation) as “small” when it has 

average annual receipts of $25,500,000 or less.
Docket No. RM12-17-000 - 19 -

[INSERT DATE 30 days after publication in the FEDERAL REGISTER]]. 

Comments must refer to Docket No. RM12-17-000, and must include the commenter's 

name, the organization they represent, if applicable, and their address in their comments.

31. The Commission encourages comments to 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. Documents created electronically using word 

processing software should be filed in native applications or print-to-PDF format and not 

in a scanned format. Commenters filing electronically do not need to make a paper 

filing.

32. Commenters that are not able to file comments electronically must send an 

original of their comments to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street NE, Washington, DC 20426.

33. 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.

VII. Document Availability

34. 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 the Commission's Home Page 

(http://www.ferc.gov) and in the Commission's Public Reference Room during normal 
Docket No. RM12-17-000 - 20 -

business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, NE, Room 2A, 

Washington DC 20426.

35. From the Commission's Home Page on the Internet, this information is available 

on 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.

36. User assistance is available for eLibrary and the Commission’s website during 

normal business hours from the Commission’s Online Support at 202-502-6652 (toll free 

at 1-866-208-3676) or email at ferconlinesupport@ferc.gov, or the Public Reference 

Room at (202) 502-8371, TTY (202)502-8659. E-mail the Public Reference Room at 

public.referenceroom@ferc.gov.

List of subjects in 18 CFR Part 284 

Continental shelf 

Natural gas 

Reporting and recordkeeping requirement

By direction of the Commission.

( S E A L )

Nathaniel J. Davis, Sr.,

Deputy Secretary.
Docket No. RM12-17-000 - 21 -

In consideration of the foregoing, the Commission proposes to amend Part 284, 

Chapter I, Title 18, Code of Federal Regulations, as follows.

PART 284 – CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS 

UNDER THE NATURAL GAS POLICY ACT OF 1978 AND RELATED

AUTHORITIES 

1. The authority citation for Part 284 continues to read as follows:

Authority: 15 U.S.C. 717-717z, 3301-3432; 42 U.S.C. 7101-7352; 43 U.S.C. 

1331-1356. 

2. Section 284.123 is amended to read as follows: 

§284.123 Rates and charges

*****

(g) Election of Notice Procedures. 

(1) Applicability. An intrastate pipeline filing for approval of rates, a statement 

of operating conditions, and any amendments or modifications thereto 

pursuant to § 284.123 may use the notice procedures in this paragraph. 

Any intrastate pipeline electing to use these notice procedures for a filing 

must clearly state its election to use these procedures on the first page of its 

filing. Such filing is approved and the rates deemed fair and equitable and 

not in excess of the amount that an interstate pipeline would be permitted to 

charge for similar transportation service if the requirements paragraph 

(g)(8) have been fulfilled.
Docket No. RM12-17-000 - 22 -

(2) Rejection of filing. The Director of the Office of Energy Market Regulation 

or his designee shall reject within 7 days of the date of filing a request 

which patently fails to comply with the provisions of paragraphs (e) or (f) 

of this section, without prejudice to the intrastate pipeline's refiling a 

complete application. If such filing was required by this section, that filing 

must be refiled within 14 days of the date of the rejection.

(3) Publication of notice of filing. The Secretary of the Commission shall issue 

a notice of the filing within 10 days of the date of the filing, which will then 

be published in the FEDERAL REGISTER. The notice shall designate a 

deadline for filing interventions, initial comments, final comments, and 

protests to the filing. The deadline for interventions and initial comments 

shall be 14 days after the date of the filing. The deadline for final 

comments and protests shall be 60 days after the date of the filing or such 

other date established by the Secretary of the Commission. 

(4) Protests. 

(i) Any person or the Commission’s staff may file a protest prior to the 

deadline for protests. Copies of the protest must be served on the 

Secretary of the Commission and the intrastate pipeline. 

(ii) Protests shall be filed with the Commission in the form required by 

Part 385 of this Chapter including a detailed statement of the 

protestor's interest in the filing and the specific reasons and rationale 

for the objection and whether the protestor seeks to be an intervenor.
Docket No. RM12-17-000 - 23 -

(5) Effect of protest. If a protest is filed in accordance with paragraph (g)(4) of 

this section, then the intrastate pipeline, the person who filed the protest, 

any intervenors, and staff shall have 30 days from the deadline for filing 

protests established by the Secretary of the Commission in accordance with 

paragraph (g)(3) of this section, to resolve the protest, and to file a 

withdrawal of the protest pursuant to paragraph (g)(6) of this section. 

Informal settlement conferences may be convened by the Director of the 

Office of Energy Market Regulation or his designee during this 30 day 

period. If a protest is not withdrawn or dismissed by end of that 30 day 

period, the filing shall not be deemed approved pursuant to this paragraph. 

Within 60 days from the deadline for filing protests established by the 

Secretary of the Commission in accordance with paragraph (g)(3) of this 

section the Commission will establish procedures to resolve the proceeding. 

(6) Withdrawal of protests. The protestor may withdraw a protest by 

submitting written notice of withdrawal to the Secretary of the Commission 

pursuant to § 385.216 and serving a copy on the intrastate pipeline, any 

intervenors, and any person who has filed a motion to intervene in the 

proceeding.

(7) Amendments or modifications to tariff record prior to approval. An 

intrastate pipeline may file to amend or modify a tariff record contained in 

the initial filing pursuant to the procedures under paragraph (g) which has 

not yet been approved pursuant to paragraph (g)(8). Such filing will toll the 
Docket No. RM12-17-000 - 24 -

notice period established in paragraph (g)(3) of this section and the 

Secretary of the Commission will issue a notice establishing new deadlines 

for comments and protests for the entire filing pursuant to paragraph (g)(3). 

(8) Final Approval. 

(i) If no protest is filed within the time allowed by the Secretary of the 

Commission under paragraph (g)(3), the filing by the intrastate 

pipeline is approved, effective on the day after time expires for filing 

protests unless, during that time, the intrastate pipeline withdraws, 

amends, or modifies its filing or the filing is rejected pursuant to this 

paragraph.

(ii) If any protest is filed within the time allowed by the Secretary of the 

Commission under paragraph (g)(3) and is subsequently withdrawn 

before the end of the 30-day reconciliation period provided by 

paragraph (g)(5) of this section, the filing by the intrastate pipeline is 

approved effective upon the later of the day after the deadline for 

filing protests, if there are no other protests to the filing, or the day 

after the withdrawal of all protests unless the intrastate pipeline 

withdraws, amends, or modifies its filing or the filing is rejected, 

prior to that date.

(9) Periodic rate review. Rates of pipelines approved by the Commission 

pursuant to this paragraph are required to be periodically reviewed. Any 

intrastate pipeline with rates so approved must file an application for rate 
Docket No. RM12-17-000 - 25 -

approval under § 284.123 of this chapter on or before the date five years 

following the date it filed the application for authorization of rates pursuant 

to this paragraph. Any Hinshaw pipeline that has been a granted a blanket 

certificate under § 284.224 of this chapter and with rates approved pursuant 

to this paragraph must on or before the date five years following the date it 

filed the application for authorization of the rates pursuant to this 

paragraph either file (1) cost, throughput, revenue and other data, in the 

form specified in § 154.313 to allow the Commission to determine whether 

any change in rates is required pursuant to 5 of the Natural Gas Act or (2) 

an application for rate authorization pursuant to § 284.123.

(10) Withdrawal of filing prior to approval. A pipeline may, pursuant to 

paragraph (h) of this section, withdraw in its entirety a filing made pursuant 

to paragraph (g) of this section that has not been approved by filing a 

withdrawal motion with the Commission. A filing that is withdrawn will 

not fulfill the requirements under paragraph (g)(8) of this section. 

(h) Withdrawal of filing. A pipeline may withdraw in its entirety a filing pursuant to § 

284.123 that has not been approved by filing a withdrawal motion with the 

Commission.

(1) The withdrawal motion must state that any amounts collected subject to 

refund in excess of the rates authorized the Commission will be refunded 

with interest calculated and a refund report filed with the Commission in 
Docket No. RM12-17-000 - 26 -

accordance with § 154.501 of this chapter. The refunds must be made 

within 60 days of the date the withdrawal motion becomes effective.

(2) The withdrawal motion will become effective, and the filing will be 

deemed withdrawn at the end of 15 days from the date of filing of the 

withdrawal motion, if no order disallowing the motion is issued within that 

period. If an answer in opposition is filed within the 15 day period, the 

withdrawal is not effective until an order accepting the withdrawal is 

issued.