131 FERC ¶ 61,018 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Part 1b 

(Docket No. RM10-21-000; Order No. 734) 

Instant Final Rule Transferring Certain Enforcement Hotline Matters to 

the Dispute Resolution Service 

(Issued April 15, 2010) 

AGENCY: Federal Energy Regulatory Commission. 

ACTION: Final Rule. 

SUMMARY: The Commission is revising its regulations to substitute the Commission’s 

Dispute Resolution Service (DRS) for the Commission’s Enforcement Hotline as the 

contact for handling dispute-related calls pertaining to the construction and operation of 

jurisdictional infrastructure projects, effective May 1, 2010. Currently, the Commission’s 

regulations require that natural gas pipeline companies provide contact information for 

the Enforcement Hotline when providing notice to affected landowners on a blanket 

certificate project under the Natural Gas Act. In practice, the Enforcement Hotline also 

attempts to resolve disputes between individuals and natural gas pipeline companies on 

all certificated construction projects under the Natural Gas Act. The Enforcement 

Hotline also receives calls pertaining to hydroelectric projects regulated under the Federal 

Power Act. The Commission is implementing this Final Rule because the Office of 

Enforcement’s priorities currently are to focus on matters involving: fraud and market 

manipulation; serious violations of the reliability standards; anticompetitive conduct; and 
Docket No. RM10-21-000 -2- 

conduct that threatens the transparency of regulated markets.1

 By transferring the 

responsibility of dispute-related calls pertaining to the construction and operation of 

jurisdictional infrastructure projects to DRS, with its expertise in conflict resolution, and 

allowing the Office of Enforcement to focus on its priorities, the Commission will ensure 

an efficient allocation of its resources that will better serve the public interest. 

EFFECTIVE DATE: The rule will become effective on May 1, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Stuart Fischer 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street, NE 

Washington, DC 20426 

(202) 502-8517 

Nils Nichols 

Office of Administrative Litigation/Dispute Resolution Service 

Federal Energy Regulatory Commission 

888 First Street, NE 

Washington, DC 20426 

(202) 502-8638 

SUPLEMENTARY INFORMATION: 

 1 2009 Report on Enforcement, Docket No. AD07-13-002 at 2 (2009). 
131 FERC ¶ 61,018 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Before Commissioners: Jon Wellinghoff, Chairman; 

 Marc Spitzer, Philip D. Moeller, 

 and John R. Norris. 

Instant Final Rule Transferring Certain Enforcement 

Hotline Matters to the Dispute Resolution Service Docket No. RM10-21-000 

ORDER NO. 734 

FINAL RULE 

(Issued April 15, 2010) 

I. Introduction

 

1. The Commission is revising its regulations to substitute the Commission’s 

Dispute Resolution Service (DRS) for the Commission’s Enforcement Hotline as the 

contact for handling dispute-related calls pertaining to the construction and operation of 

jurisdictional natural gas and hydroelectric infrastructure projects, effective May 1, 2010. 

The Commission is implementing this Final Rule because the Office of Enforcement’s 

priorities currently are to focus on matters involving: fraud and market manipulation; 

serious violations of the reliability standards; anticompetitive conduct; and conduct that 

threatens the transparency of regulated markets. By transferring the responsibility of 

dispute-related calls pertaining to the construction and operation of jurisdictional 

infrastructure projects to DRS, with its expertise in conflict resolution, and allowing the 

Office of Enforcement to focus on its priorities, the Commission will ensure an efficient 

allocation of its resources that will better serve the public interest. 
Docket No. RM10-21-000 - 2 -

II. Background

2. The Commission’s Enforcement Hotline has been in existence since June 1987. In 

April 1999, the Enforcement Hotline was codified under section 1b.21 of the 

Commission’s regulations. 18 CFR 1b.21. In addition to providing information to the 

public and informal, non-binding staff opinions, any person may seek the Enforcement 

Hotline’s assistance in the informal resolution of a dispute, provided that the dispute is 

not before the Commission in a docketed proceeding. 18 CFR 1b.21(b). The 

Enforcement Hotline is staffed by personnel from the Division of Investigations in the 

Office of Enforcement. 

3. The Enforcement Hotline receives communications relating to a wide variety of 

matters including: allegations of market manipulation; failure to follow the requirements 

of a transmission tariff; abuse of an affiliate relationship; failure to follow electric 

reliability standards; and landowner complaints relating to natural gas pipeline 

construction or compliance with hydroelectric project licensing conditions.2

 

4. Landowner calls to the Enforcement Hotline are partly the result of the dispute 

resolution process set forth in the Commission’s regulations. Section 157.203(d) of the 

 2

 For internal recordkeeping purposes, the Office of Enforcement considers 

“landowner” calls to include calls from tenants renting from the landowner or any other 

individual affected by a project’s construction or physical operation. As noted earlier, 

section 1b.21, which codifies the Enforcement Hotline, provides that “any person” may 

seek assistance. This rulemaking also includes disputes involving tenants and other 

individuals affected by a project’s construction or physical operation. However, for the 

purpose of convenience, this preamble includes them in the general category of 

“landowner” except as discussed in the next paragraph herein when that term is used in 

connection with the specific provisions of section 157.203(d). 
Docket No. RM10-21-000 - 3 -

Commission’s regulations sets forth the landowner notification requirements that a 

natural gas pipeline company must follow if it plans to engage in a project authorized 

under a blanket certificate under the Natural Gas Act (NGA). Among the requirements is 

to provide all affected landowners with a description of the company’s environmental 

complaint resolution procedures, which must include company contact telephone 

numbers which landowners can use to identify and resolve environmental mitigation 

problems and concerns during construction of the project and restoration of the right-ofway. 18 CFR 157.203(d)(iii). The complaint resolution procedures must also instruct 

landowners that, if they are still not satisfied with the company’s response to their 

complaints, they may contact the Commission’s Enforcement Hotline. 18 CFR 

157.203(d)(iii)(D). The company must provide the affected landowners with the current 

telephone number and e-mail address of the Enforcement Hotline. Id. 

5. In practice, natural gas pipeline companies provide affected landowners with 

environmental complaint resolution procedures, including contact information for the 

Enforcement Hotline, for all certificate projects under the NGA. 

6. Landowner calls to the Enforcement Hotline primarily raise substantive issues 

concerning the effects of project construction, such as whether a pipeline company has 

properly restored the construction right-of-way, whether compressor stations exceed the 

noise limits set forth in the Commission’s order or regulations, and whether the use of the 

easement is consistent with the purpose for which the easement was granted. The 

Enforcement Hotline attempts to resolve such calls primarily in consultation with the 
Docket No. RM10-21-000 - 4 -

Commission’s Office of Energy Projects (OEP) and, when needed, the Commission’s 

Office of the General Counsel. 

7. The Enforcement Hotline also at times receives calls from landowners concerned 

about whether a hydroelectric project operator is in compliance with the project’s 

licensing conditions. In such instances, the Enforcement Hotline refers the matter to the 

OEP’s Division of Hydropower Administration and Compliance. 

III. Commission Determination 

8. This Final Rule amends 18 CFR 157.203(d)(iii)(D) to substitute the Commission’s 

DRS for the Enforcement Hotline as the contact for landowners that have unresolved 

disputes with pipeline companies following use of the pipeline companies’ environmental 

complaint resolution procedure. This change will result in a better allocation of 

Commission resources that will better serve the public interest. While the Enforcement 

Hotline continues to successfully handle landowner calls, such calls are unrelated to the 

current priorities of the Office of Enforcement, which are: fraud and market 

manipulation; serious violations of the reliability standards; anticompetitive conduct; and 

conduct that threatens the transparency of regulated markets.3

 By transferring the 

responsibility of dispute-related calls pertaining to the construction and operation of 

jurisdictional infrastructure projects to DRS, with its expertise in conflict resolution, and 

allowing the Office of Enforcement to focus on its priorities, the Commission will ensure 

an efficient allocation of its resources, thereby better serving the public interest. 

 3 2009 Report on Enforcement at 2. 
Docket No. RM10-21-000 - 5 -

Similarly, the Commission is transferring the responsibility of dispute-related calls 

pertaining to the construction and operation of jurisdictional hydroelectric power projects 

to DRS, which will interact with the OEP’s Division of Hydropower Administration and 

Compliance. This transfer of responsibilities will become effective on May 1, 2010. 

9. The DRS is well suited to take over the Enforcement Hotline’s role in attempting 

to informally resolve landowner disputes with natural gas pipeline companies, as well as 

landowner disputes relating to hydroelectric projects which the OEP’s Division of 

Hydropower Administration and Compliance wishes to submit for DRS resolution. The 

central mission of the Commission’s DRS is to reach consensual resolution of disputed 

matters through the use of alternative dispute resolution methods such as mediation. 

DRS staff also has extensive substantive expertise in environmental, natural gas pipeline 

certificate, hydroelectric, and liquefied natural gas facility matters. Finally, DRS already 

receives and addresses a number of calls from landowners affected by projects under the 

Commission’s jurisdiction. This will not be a new duty, but rather an extension of an 

existing service.4

 Thus, the Commission will be able to continue serving the public 

interest through the use of DRS’ expertise in attempting to resolve landowner disputes 

formerly handled by the Enforcement Hotline, and will better serve the public interest by 

allowing the Office of Enforcement to focus on its priorities. 

 4

 The Commission’s Office of External Affairs (OEA) currently handles calls from 

landowners asking general questions about the Commission’s certificate or licensing 

process, as well as specific questions about particular proceedings such as the dates of 

meetings or site visits. Such questions will remain within the purview of OEA. 
Docket No. RM10-21-000 - 6 -

10. This Final Rule also amends 18 CFR 1b.21 to add a provision stating that any 

person affected by either the construction or operation of a certificated natural gas 

pipeline under the NGA or by the construction or operation of a project under the Federal 

Power Act (FPA) may seek the informal resolution of a dispute by calling or writing the 

DRS. Finally, because DRS will be the contact, this Final Rule deletes 18 CFR 

157.203(d)(iv), which references the Enforcement Hotline regulation at 18 CFR 1b.21 as 

a source for obtaining further information about the Enforcement Hotline. 

IV. Information Collection Statement

11. The Office of Management and Budget's (OMB) regulations require that OMB 

approve certain information collection requirements imposed by agency rule.5

 This Final 

Rule contains no information reporting requirements, and, as such, is exempt from the 

provisions of the Paperwork Reduction Act.6

V. Environmental Analysis

12. The Commission is required to prepare an Environmental Assessment or an 

Environmental Impact Statement for any action that may have a significant adverse effect 

on the human environment.7

 Issuance of this Final Rule does not represent a major 

federal action having a significant adverse effect on the human environment under the 

 5

 5 CFR Part 1320. 

6

 44 U.S.C. § 3518(c); 5 CFR 1320.4. 

7

 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. RM10-21-000 - 7 -

Commission's regulations implementing the National Environmental Policy Act.8

 Part 

380 of the Commission's regulations lists exemptions to the Environmental Analysis or 

Environmental Impact Statement requirement. Included is an exemption for procedural, 

ministerial or internal administrative actions.9

 This rulemaking is exempt under that 

provision. 

VI. Regulatory Flexibility Act Certification

13. The Regulatory Flexibility Act of 198010 generally requires a description and 

analysis of final rules that will have significant economic impact on a substantial number 

of small entities. This Final Rule concerns a matter of internal agency procedure and the 

Commission therefore certifies that it will not have such an impact. An analysis under 

the RFA is not required. 

VII. Document Availability

14. In addition to publishing the full text of this document in the Federal Register, the 

Commission provides all interested persons an opportunity to view and/or print the 

contents of this document via the Internet through FERC's Home Page 

(http://www.ferc.gov) and in FERC's Public Reference Room during normal business 

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

Washington DC 20426. 

 

8

Order No. 486, 52 FR 47897 (Dec. 17, 1987); FERC Stats. & Regs., Regulations 

Preambles 1986-1990 ¶ 30,783 (Dec. 10, 1984) (codified at 18 CFR Part 380). 

9

 18 CFR 380.4(1) and (5). 

10 5 U.S.C. § 601-612 (RFA). 
Docket No. RM10-21-000 - 8 -

15. From FERC'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. 

16. User assistance is available for eLibrary and the FERC's website during normal 

business hours from FERC Online Support at 202-502-6652 (toll free at 1-866-208-3676) 

or e-mail 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. 

VIII. Effective Date

17. These regulations are effective on May 1, 2010. In accordance with 5 U.S.C. 

§ 553(d)(3), the Commission finds that good cause exists to make this Final Rule 

effective less than 30 days after its publication in the Federal Register. The rule concerns 

a matter of administrative procedures and does not affect the rights of persons appearing 

before the Commission. Therefore, there is no reason to make it effective at a later time. 

18. The provisions of 5 U.S.C. § 801 regarding Congressional review of Final Rules 

do not apply to this Final Rule, because the rule concerns agency procedure and practice 

and will not substantially affect the rights of non-agency parties. 

19. The Commission is issuing this as a Final Rule without a period for public 

comment. Under 5 U.S.C. § 553(b), notice and comment procedures are unnecessary 

where a rulemaking concerns only agency procedure and practice, or where the agency 
Docket No. RM10-21-000 - 9 -

finds that notice and comment is unnecessary. This rule concerns only matters of agency 

procedure and will not significantly affect regulated entities or the general public. 

List of subjects in 18 CFR Part 157

Interstate Pipeline Blanket Certificates and Authorization under Section 7 of the Natural 

Gas Act for Certain Transactions and Abandonment 

List of subjects in 18 CFR Part 1b:

Rules relating to Investigations 

By the Commission. 

( S E A L ) 

Kimberly D. Bose, 

Secretary. 
Docket No. RM10-21-000 - 10 -

In consideration of the foregoing, the Commission amends Parts 1b and 257, Chapter I, 

Title 18, Code of Federal Regulations, as follows: 

Part 1b – RULES RELATING TO INVESTIGATIONS 

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

Authority: 15 U.S.C. 717 et seq.; 16 U.S.C. 792 et seq.; 49 U.S.C. 60502; 

49 A.P.U.S.C. 1-85; 42 U.S.C. 7101-7352; E.O. 12009, 42 FR 46297. 

2. In § 1b.21, paragraph (b) is revised and paragraphs (g) and (h) are added to read as 

follows: 

§ 1b.21 Enforcement hotline

 * * * * * 

 (b) Except as provided for in paragraph (g) of this section, any person may 

seek information or the informal resolution of a dispute by calling or writing to the 

Hotline at the telephone number and address in paragraph (f) of this section. The Hotline 

Staff will informally seek information from the caller and any respondent, as appropriate. 

The Hotline Staff will attempt to resolve disputes without litigation or other formal 

proceedings. The Hotline Staff may not resolve matters that are before the Commission in 

docketed proceedings. 

 * * * * * 

 (g) Any person affected by either the construction or operation of a certificated 

natural gas pipeline under the Natural Gas Act or by the construction or operation of a 

project under the Federal Power Act may seek the informal resolution of a dispute by 

calling or writing the Commission’s Dispute Resolution Service. The Dispute Resolution 
Docket No. RM10-21-000 - 11 -

Service may be reached by calling the DRS Helpline toll-free at 1-877-337-2237, or by email at ferc.adr@ferc.gov, or writing to: Dispute Resolution Service, Federal Energy 

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

 (h) Any person who contacts the Dispute Resolution Service Helpline is not 

precluded from filing a formal action with the Commission if discussions assisted by the 

Dispute Resolution Service staff are unsuccessful at resolving the matter. A caller may 

terminate the use of alternative dispute resolution procedures at any time. 

* * * * * 

Part 157 – APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE 

AND NECESSITY AND FOR ORDERS PERMITTING AND APPROVING 

ABANDONNENT UNDER SECTION 7 OF THE NATURAL GAS ACT 

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

Authority: 15 U.S.C. 717-717w 

2. In § 157.203, paragraph (d)(iii)(D) is revised and paragraph (d)(iv) is deleted to 

read as follows: 

§ 157.203 Blanket certification 

 * * * * * 

(d) Landowner Notification 

 * * * * * 

 (iii) * * * 

 (D) Instruct landowners that, if they are still not satisfied with the 
Docket No. RM10-21-000 - 12 -

response, they may contact the Commission's Dispute Resolution Service at the current 

telephone number and e-mail address, which is to be provided in the notification. 

 (iv) [deleted] 

 * * * * *