20788 Federal Register / Vol. 72, No. 80 / Thursday April 26, 2007 / Proposed Rules 

1 7 U.S.C. 1 et seq. (2000). The Act can be 

accessed at http://www.access.gpo.gov/uscode/ 

title7/chapter1_.html. 

2Section 4c of the Act provides the Commission 

with plenary authority over commodity options. 

overlies R–3702A and B, and extends 

from FL 220 to FL 270, but is not 

affected by this proposed action. 

Hazardous training operations 

conducted in these areas only require 

restricted airspace up to 10,000 feet 

MSL. However, under the current 

configuration, R–3702A only extends up 

to 6,000 feet MSL. Therefore, to provide 

protection when hazardous training 

operations are being conducted at 

10,000 feet MSL and below, R–3702B 

must also be activated. This results in 

periods when the airspace between 

11,000 feet MSL and FL 220 is being 

unnecessarily restricted and unavailable 

for transit by nonparticipating aircraft. 

Resetting the altitude boundary between 

R–3702A and R–3702B at 10,000 feet 

MSL instead of 6,000 feet MSL, would 

permit more efficient airspace 

management and allow air traffic 

control (ATC) to provide better service 

to civil aircraft in that area. 

The Proposal 

The FAA is proposing to amend Title 

14 Code of Federal Regulations (14 CFR) 

part 73 to realign the designated 

altitudes of restricted areas R–3702A 

and R–3702B at Fort Campbell, KY. The 

proposal would change the designated 

altitudes for R–3702A from ‘‘surface to 

6,000 feet MSL,’’ to ‘‘surface to 10,000 

feet MSL.’’ In addition, the designated 

altitudes for R–3702B would be changed 

from ‘‘6,000 feet MSL to FL 220,’’ to 

‘‘10,000 feet MSL to FL 220.’’ The 

proposed change would permit Fort 

Campbell to conduct training that 

involves hazardous operations not 

exceeding 10,000 feet MSL without 

unnecessarily restricting aircraft from 

transiting the area at higher altitudes. 

This change would allow ATC to 

provide better service to 

nonparticipating aircraft in the area. 

Section 73.37 of Title 14 CFR part 73 

was republished in FAA Order 7400.8N, 

dated February 16, 2007. 

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. 

Therefore, this proposed regulation: (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 the 

appropriate environmental analysis in 

accordance with FAA Order 1050.1E, 

Environmental Impacts: Policies and 

Procedures, prior to any FAA final 

regulatory action. 

List of Subjects in 14 CFR Part 73 

Airspace, Navigation (air). 

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 14 CFR part 73 as 

follows: 

PART 73—SPECIAL USE AIRSPACE 

1. The authority citation for part 73 

continues to read as follows: 

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

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

1963 Comp., p. 389. 

§ 73.37 [Amended] 

2. Section 73.37 is amended as 

follows: 

* * * * * 

R–3702A Fort Campbell, KY 

[Amended] 

Under Designated altitudes, by 

removing the words ‘‘Surface to 6,000 

feet MSL,’’ and inserting the words 

‘‘Surface to 10,000 feet MSL.’’

* * * * * 

R–3702B Fort Campbell, KY 

[Amended] 

Under Designated altitudes, by 

removing the words ‘‘6,000 feet MSL to 

FL 220,’’ and inserting the words 

‘‘10,000 feet MSL to FL 220.’’

* * * * * 

Issued in Washington, DC, April 20, 2007. 

Paul Gallant, 

Acting Manager, Airspace and Rules Group. 

[FR Doc. E7–8020 Filed 4–25–07; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 3 

RIN 3038–AC37 

Registration of Intermediaries 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Proposed rule. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is proposing to amend 

Commission Regulation 3.10 to require 

certain registered intermediaries, i.e., 

futures commission merchants 

(‘‘FCMs’’), introducing brokers (‘‘IBs’’), 

commodity pool operators (‘‘CPOs’’), 

commodity trading advisors (‘‘CTAs’’) 

and leverage transaction merchants 

(‘‘LTMs’’), to complete an online annual 

review of their registration information 

maintained with the National Futures 

Association (‘‘NFA’’). The proposed 

amendment (‘‘Proposed Amendment’’) 

would ensure that NFA will have 

accurate and current information about 

such registrants. The Commission’s 

proposal (‘‘Proposal’’) also includes a 

technical and conforming amendment to 

Commission Regulation 3.33(f), which 

regulation is cross-referenced in the 

Proposed Amendment. 

DATES: Comments must be received on 

or before May 29, 2007. 

ADDRESSES: Comments on the Proposal 

should be sent to Eileen Donovan, 

Acting Secretary, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street, NW., 

Washington, DC 20581. Comments may 

be sent by facsimile transmission to 

(202) 418–5521, or by e-mail to 

secretary@cftc.gov. Reference should be 

made to ‘‘Proposal Regarding the 

Registration of Intermediaries.’’

Comments also may be submitted by 

connecting to the Federal eRulemaking 

Portal at http://www.regulations.gov and 

following the comment submission 

instructions. 

FOR FURTHER INFORMATION CONTACT: 

Helene D. Schroeder, Special Counsel, 

Compliance and Registration Section, 

Division of Clearing and Intermediary 

Oversight, Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

20581, telephone number: (202) 418–

5450; facsimile number: (202) 418–5528; 

and electronic mail: 

hschroeder@cftc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. The Regulatory Framework 

Sections 4d, 4f(a)(1), 4m and 4n(1) of 

the Commodity Exchange Act (‘‘Act’’) 1

require the registration of firms seeking 

to act as intermediaries for exchangetraded futures.2 The statutory 

framework for registration procedures is 


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Federal Register / Vol. 72, No. 80 / Thursday April 26, 2007 / Proposed Rules 20789 

3 7 U.S.C. 6f(a)(1). 

4 7 U.S.C. 6n(1). 

5 7 U.S.C. 23. Commission Regulation 31.5, 17 

CFR 31.5 (2006), was promulgated under this 

provision and along with Regulation 3.10, 17 CFR 

3.10, governs the registration of LTMs. The 

Commission’s regulations can be accessed at http:// 

www.access.gpo.gov/nara/cfr/waisidx_06/ 

17cfrv1_06.html. 

6 In the case of FCMs and IBs, the application 

must provide the ‘‘names and addresses of the 

managers of all branch offices, and the names of 

such officers and partners, if a partnership, and the 

names of such officers, directors, and stockholders, 

if a corporation, as the Commission may direct.’’

With regard to CPOs and CTAs, the application 

must contain identifying information, education 

and business affiliations of controlling persons 

thereof, the manner of giving advice and rendering 

of analyses or reports, the basis upon which the 

applicant is or will be compensated and such other 

information as the Commission may require to 

determine whether the applicant is qualified for 

registration. 

7 In this regard, Section 4f(a)(1) provides in 

pertinent part as follows: ‘‘Each registration shall 

expire on December 31 of the year for which issued 

or at such other time, not less than one year from 

the date of issuance, as the Commission may by 

rule, regulation, or order prescribe, and shall be 

renewed upon application therefor unless the 

registration has been suspended (and the period of 

such suspension has not expired) or revoked 

pursuant to the provisions of this Act.’’

Section 4n(2) additionally provides: ‘‘Each 

registration under this section shall expire on the 

30th day of June of each year, or at such other time, 

not less than one year from the effective date 

thereof, as the Commission may by rule regulation, 

or order prescribe, and shall be renewed upon 

application therefor subject to the same 

requirements as in the case of an original 

application.’’

8 7 U.S.C. 21(o)(1). 

9 7 U.S.C. 12a(10). 

10 54 FR 19556 (May 8, 1989) (LTMs); 49 FR 

39593 (Oct. 9, 1984) (FCMs, CPOs and CTAs); and 

48 FR 35158 (Aug. 3, 1983) (IBs). 

11 17 CFR part 3. 

12 17 CFR 3.10(a). 

13 17 CFR 3.31(a)(1). 

14Regulation 3.10(d) also provided that the 

failure to file the Form 7–R within 30 days 

following the date specified by NFA would be 

deemed to be a request for withdrawal from 

registration. 

15For example, NFA requires that any securities 

broker or dealer that is registered with the 

Securities and Exchange Commission that becomes 

a notice-registered FCM or IB must submit a 

hardcopy version of its Form 7–R. 

16 67 FR 38869 (June 6, 2002). 

17 Id. at 38871. 

18For example, a firm could modify the title 

given for a particular principal of a firm, but it 

could not identify a new principal, as this would 

require separate application. 

set forth in Section 4f(a)(1) of the Act for 

FCMs and IBs,3 and in Section 4n(a)(1) 

for CPOs and CTAs.4 Additionally, 

Section 19 of the Act grants the 

Commission plenary authority over 

leverage transactions.5

Pursuant to these statutory and other 

regulatory provisions, a person seeking 

to register as an intermediary must file 

an application that contains the 

information and facts that are deemed 

necessary by the Commission.6 Sections 

4f and 4n further provide that, unless 

renewed, the person’s registration will 

expire automatically each year, or at 

such other time (not less than one year 

from the date of issuance) as the 

Commission by rule, regulation or order 

may prescribe.7

Section 17(o)(1) of the Act authorizes 

the Commission to require any 

registered futures association to perform 

any portion of its registration functions 

under the Act with respect to each 

member of the association,8 and Section 

8a(10) permits the Commission to 

authorize any person to perform any 

registration functions under the Act, in 

accordance with rules adopted by such 

person and submitted to the 

Commission for approval.9 The 

Commission has exercised this authority 

by delegating to NFA, the sole registered 

futures association, its authority to 

process applications for registration of 

intermediaries.10

Part 3 of the Commission’s 

Regulations 11 contains the regulations 

relating to the registration of 

intermediaries and other futures 

industry professionals. Commission 

Regulation 3.10(a) specifies that an 

application for registration as an FCM, 

IB, CPO, CTA or LTM must be on a 

Form 7–R, completed and filed with 

NFA in accordance with the 

instructions thereto.12 Commission 

Regulation 3.31(a)(1) imposes a 

continuing obligation on registrants to 

update their registration information.13

Specifically, Commission Regulation 

3.31(a)(1) requires each FCM, IB, CTA, 

CPO or LTM to promptly correct any 

deficiency or inaccuracy that is 

contained in the person’s Form 7–R or 

any Form 8–R filed on behalf of a 

principal or an associated person that 

no longer renders accurate and current 

the information contained therein. It 

further specifies that each such 

correction must be made on a Form 3–

R and must be prepared and filed with 

NFA in accordance with the 

instructions thereto. 

To further ensure that registration 

information remained accurate and 

current, Commission Regulation 3.10(d), 

which was revoked in 2002, required 

FCMs, IBs, CPOs, CTAs and LTMs to 

file the Form 7–R with NFA annually on 

a date specified by NFA. In accordance 

with that regulation, NFA sent each 

FCM, IB, CPO, CTA and LTM a preprinted paper copy of the registrant’s 

Form 7–R to review. If the information 

in the printout was inaccurate, the 

registrant was required to correct the 

information and return the printout 

with the corrections to NFA.14

B. Implementation of NFA’s Online 

Registration System 

In light of technological 

advancements and improvements, NFA 

altered its registration procedures in 

2002 by shifting from paper-based 

registration to an online or electronic 

registration system. Pursuant to the 

updated procedures, NFA requires, with 

limited exception,15 that all registration 

(and membership) forms, including the 

completed Form 7–R and 3–R, must be 

filed with NFA electronically through 

NFA’s online registration system. 

In June 2002, the Commission deleted 

the requirement for firms to review 

annually registration information as 

specified by Commission Regulation 

3.10(d).16 The Commission determined 

that, because such persons were already 

under an ongoing obligation pursuant to 

Commission Regulation 3.31(a) to 

update their registration information to 

correct deficiencies and inaccuracies, 

the continuation of the annual paper 

updating process was redundant and 

resulted in unnecessary costs to both 

NFA and the registrant.17 Further, 

because NFA was implementing an 

online system for the intake of 

registration documents, the Commission 

believed it made little sense for NFA to 

continue receiving annual paper 

updates of such registration forms. 

In the period since the elimination of 

Regulation 3.10(d), NFA has 

experienced some problems with the 

registration information provided by 

certain intermediaries. Further, the 

Commission and NFA recently have 

arranged for firms to designate an 

enforcement contact to be the recipient 

of communications from the 

Commission relating to enforcement 

issues. It is important to maintain an upto-date list of such contacts. In addition, 

although the Commission has seen no 

evidence of security breaches of 

registration information, an annual 

review of information in the registration 

database should enhance the overall 

safety of such data. 

NFA has devoted significant resources 

toward developing an online 

registration update protocol for firms to 

review and update their registration 

records. The protocol is designed to 

provide a straightforward process by 

which registrants can review and 

modify their existing registration 

information.18 In addition to providing 

an updated list of users, the protocol 

will require registrants to provide 

updated disciplinary, branch office and 

firm contact information. The Proposed 

Amendment is intended to facilitate 

NFA’s efforts in implementing this new 


jlentini on PROD1PC65 with PROPOSALS
20790 Federal Register / Vol. 72, No. 80 / Thursday April 26, 2007 / Proposed Rules 

19Paragraph (d) of Regulation 3.10 had been 

reserved. 20Commission Regulation can be accessed at the 

Web site provided in footnote 5. See also NFA 

Registration Rule 601(c). 

21 5 U.S.C. 601 et seq. 

22 47 FR 18618 (Apr. 30, 1982). 

23 47 FR 18618, 18619. 

24 5 U.S.C. 605(b). 

25 7 U.S.C. 19(a). 

protocol and ensure that NFA is in 

possession of current and accurate 

information regarding intermediaries. 

All firms remain subject to their 

obligations under Regulation 3.31(a)(1) 

to promptly correct any deficiency or 

inaccuracy in a Form 7–R or Form 8–R 

filed by the firm. 

II. Proposal 

The Proposed Amendment, which 

would set forth an annual review 

requirement, would be added as new 

paragraph (d).19 As proposed, the new 

paragraph would provide that each 

FCM, IB, CPO, CTA and LTM, in 

accordance with procedures established 

by NFA, must complete an online 

annual review of the registration 

information maintained by NFA. 

Pursuant to procedures established by 

NFA, registrants would be expected to 

correct any deficiencies or inaccuracies 

contained therein. 

The Proposed Amendment also would 

provide that the failure to complete the 

review and update within 30 days of the 

date established by NFA for completion 

would be deemed to be a request for 

withdrawal from registration. As further 

provided therein, NFA would be 

required to process the request in 

accordance with the existing procedures 

for withdrawal of registration set forth 

in Commission Regulation 3.33(f). 

Commission Regulation 3.33(f) 

establishes the date on which a request 

for withdrawal of registration will 

become effective unless the Commission 

or NFA take certain actions as specified 

therein.20 When the Commission 

deleted the requirement for registrants 

to conduct an annual paper updating 

process by revoking Commission 

Regulation 3.10(d) in 2002, the 

Commission did not make a conforming 

change to Commission Regulation 

3.33(f). Specifically, the Commission 

did not remove unnecessary language 

that cross-referenced the revoked 

provision. That language, which appears 

as the introductory phrase of 

Commission Regulation 3.33(f) provides 

as follows: ‘‘Except as otherwise 

provided in Regulation 3.10(d).’’ This 

introductory phrase will continue to be 

unnecessary if the Proposed 

Amendment is adopted. Accordingly, 

the Commission’s Proposal also 

includes a technical and conforming 

amendment to Commission Regulation 

3.33(f) to remove the introductory 

language. As proposed, the text would 

begin with the language following the 

introductory phrase: ‘‘A request for 

withdrawing of registration.’’ The 

residual text in Commission Regulation 

3.33(f) would remain intact. 

III. Related Matters 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(‘‘RFA’’) 21 requires that agencies, in 

proposing regulations, consider the 

impact of those regulations on small 

businesses. The Proposed Amendment 

would affect persons that are registered 

as FCMs, IBs, CPOs, CTAs and LTMs. 

The Commission has previously 

established certain definitions of ‘‘small 

entities’’ to be used by the Commission 

in evaluating the impact of its 

regulations on such entities in 

accordance with the RFA.22 The 

Commission previously determined that 

registered FCMs, CPOs and LTMs are 

not small entities for the purpose of the 

RFA.23 With respect to the remaining 

persons, CTAs and IBs, the Commission 

does not believe that the economic 

impact of the Proposed Amendment 

will be significant. First, the information 

that would be required under the 

Proposed Amendment already is 

required to be collected under the 

existing registration framework. Second, 

the Proposed Amendment and NFA’s 

new protocol will focus each registrant 

on the specific areas that must be 

reviewed and, if needed, updated. 

Third, the Proposed Amendment will 

permit review and updating via 

electronic means in keeping with the 

current registration procedures. 

Accordingly, in accordance with 

Section 3(a) of the RFA,24 the Chairman, 

on behalf of the Commission, certifies 

that the proposed rules will not have a 

significant economic impact on a 

substantial number of small entities. 

However, the Commission invites the 

public to comment on this finding. 

B. Cost-Benefit Analysis 

Section 15(a) of the Act 25 requires the 

Commission to consider the costs and 

benefits of its action before issuing a 

new regulation under the Act. By its 

terms, Section 15(a) does not require the 

Commission to quantify the costs and 

benefits of a new regulation or to 

determine whether the benefits of the 

proposed regulation outweigh its costs. 

Rather, Section 15(a) simply requires 

the Commission to ‘‘consider the costs 

and benefits’’ of its action. 

Section 15(a) further specifies that 

costs and benefits shall be evaluated in 

light of five broad areas of market and 

public concern: (1) Protection of market 

participants and the public; (2) 

efficiency, competitiveness, and 

financial integrity of futures markets; (3) 

price discovery; (4) sound risk 

management practices; and (5) other 

public interest considerations. The 

Commission, in its discretion, may 

choose to give greater weight to any one 

of the five enumerated areas and 

determine that, notwithstanding its 

costs, a particular regulation is 

necessary or appropriate to protect the 

public interest or to effectuate any of the 

provisions or to accomplish any of the 

purposes of the Act. 

The Proposed Amendment concerns 

the registration of certain 

intermediaries, in particular, FCMs, IBs, 

CPOs, CTAs and LTMs. Specifically, the 

Proposed Amendment will require these 

intermediaries to complete an online 

annual review of their registration 

information, including disciplinary 

information, firm contacts and lists of 

authorized users. By ensuring that NFA, 

the self-regulatory organization that 

oversees the activities of these 

registrants, will have accurate and 

current information regarding 

registrants, the Proposed Amendment 

will maximize the protection of market 

participants and the public. 

Such intermediaries already are under 

an ongoing obligation to provide 

updated information to NFA pursuant to 

Commission Regulation 3.31(a)(1). The 

Proposed Amendment would require 

these registrants to comply with an 

online review protocol established by 

NFA. This protocol would provide a 

straightforward process for registrants to 

electronically update their registration 

information. It would focus and guide 

registrants on the particular areas that 

need updating. By facilitating NFA’s 

efforts to adopt this protocol, the 

Proposed Amendment also should 

result in efficiency enhancements for 

registrants and NFA. 

The Proposed Amendment should 

have no effect on the following three 

enumerated areas: (1) Efficiency, 

competitiveness or the financial 

integrity of futures markets; (2) price 

discovery; and (3) sound risk 

management practices. 

After considering these factors, the 

Commission has determined to issue the 

Proposed Amendment discussed above. 

The Commission invites public 

comment on its application of the costbenefit provision. Commenters also are 

invited to submit any data that they may 

have quantifying the costs and benefits 


jlentini on PROD1PC65 with PROPOSALS
Federal Register / Vol. 72, No. 80 / Thursday April 26, 2007 / Proposed Rules 20791 

26 26 44 U.S.C. 3501 et seq. 

1To be codified at 15 U.S.C. 717t–2. 

2Energy Policy Act of 2005, Pub. L. No. 109–58, 

119 Stat. 594 (2005). 

of the Proposed Amendment with their 

comment letters. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(‘‘PRA’’) imposes certain obligations on 

federal agencies, including the 

Commission, in connection with their 

conducting or sponsoring any collection 

of information as defined by the PRA.26

The Proposed Amendment would 

require intermediaries to conduct an 

annual review of their registration 

information maintained with NFA. The 

information that would be reviewed in 

accordance with the Proposed 

Amendment is part of an approved 

collection of information. Moreover, the 

Proposed Amendment would not result 

in any material modifications to this 

approved collection. Accordingly, for 

purposes of the PRA, the Commission 

certifies that the requirements of the 

PRA are inapplicable to the Proposed 

Amendment. 

List of Subjects in 17 CFR Part 3 

Administrative practice and 

procedure, Brokers, Commodity 

Futures, Reporting and recordkeeping 

requirements. 

For the reasons discussed in the 

preamble, the Commission proposes to 

amend 17 CFR part 3 as follows: 

PART 3—REGISTRATION 

1. The authority citation for part 3 

continues to read as follows: 

Authority: 5 U.S.C. 522, 522b; 7 U.S.C. 1a, 

2, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i, 6k, 6m, 

6n, 6o, 6p, 8, 9, 9a, 12, 12a, 13b, 13c, 16a, 

18, 19, 21, 23. 

2. Section 3.10 is amended by adding 

paragraph (d) to read as follows: 

§ 3.10 Registration of futures commission 

merchants, introducing brokers, commodity 

trading advisors, commodity pool operators 

and leverage transaction merchants. 

* * * * * 

(d) On a date to be established by the 

National Futures Association, and in 

accordance with procedures established 

by the National Futures Association, 

each registrant as a futures commission 

merchant, introducing broker, 

commodity trading advisor, commodity 

pool operator or leverage transaction 

merchant shall, on an annual basis, 

review and update registration 

information maintained with the 

National Futures Association. The 

failure to complete the review and 

update within thirty days following the 

date established by the National Futures 

Association shall be deemed to be a 

request for withdrawal from registration, 

which shall be processed in accordance 

with the provisions of § 3.33(f). 

3. Section 3.33 is amended by revising 

paragraph (f) introductory text to read as 

follows: 

§ 3.33 Withdrawal from registration. 

* * * * * 

(f) A request for withdrawal from 

registration will become effective on the 

thirtieth day after receipt of such 

request by the National Futures 

Association, or earlier upon written 

notice from the National Futures 

Association (with the written 

concurrence of the Commission) of the 

granting of such request, unless prior to 

the effective date: 

* * * * * 

Issued in Washington, DC, on April 23, 

2007, by the Commission. 

Eileen Donovan, 

Acting Secretary of the Commission. 

[FR Doc. E7–8025 Filed 4–25–07; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 260 and 284 

[Docket Nos. RM07–10–000 and AD06–11–

000] 

Transparency Provisions of Section 23 

of the Natural Gas Act; Transparency 

Provisions of the Energy Policy Act 

April 19, 2007. 

AGENCY: Federal Energy Regulatory 

Commission, DOE. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: In order to implement its 

authority under section 23 of the 

Natural Gas Act, which was added by 

section 316 of the Energy Policy Act of 

2005 (EPAct 2005), the Commission 

proposes to revise its regulations to: 

require that intrastate pipelines post 

daily the capacities of, and volumes 

flowing through, their major receipt and 

delivery points and mainline segments 

in order to make available the 

information needed to track daily flows 

of natural gas throughout the United 

States; and require that buyers and 

sellers of more than a de minimis 

volume of natural gas report annual 

numbers and volumes of relevant 

transactions to the Commission in order 

to make possible an estimate of the size 

of the physical U.S. natural gas market, 

assess the importance of the use of 

index pricing in that market, and 

determine the size of the fixed-price 

trading market that produces the 

information. These revisions would 

facilitate price transparency in markets 

for the sale or transportation of physical 

natural gas in interstate commerce. 

DATES: Comments are due June 11, 2007. 

Reply comments are due July 10, 2007. 

ADDRESSES: You may submit comments 

identified by Docket No. RM07–10–000, 

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 the Federal Energy 

Regulatory Commission, Secretary of the 

Commission, 888 First Street, NE., 

Washington, DC 20426. Please refer to 

the Comment Procedures Section of the 

preamble for additional information on 

how to file paper comments. 

FOR FURTHER INFORMATION CONTACT: 

Stephen J. Harvey (Technical), 888 First 

Street, NE., Washington, DC 20426, 

(202) 502–6372, 

Stephen.Harvey@ferc.gov. 

Eric Ciccoretti (Legal), 888 First Street, 

NE., Washington, DC 20426, (202) 

502–8493, Eric.Ciccoretti@ferc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

1. The Federal Energy Regulatory 

Commission (Commission), in order to 

facilitate market transparency in natural 

gas markets, proposes to revise its 

regulations to: (a) Require daily posting 

of some natural gas flow information by 

intrastate pipelines; and (b) require 

annual filings by buyers and sellers of 

natural gas in U.S. wholesale markets 

(that transact more than de minimis 

volumes) of aggregate annual purchase 

and sales information. These proposals 

exercise expanded Commission 

authority under section 23 of the 

Natural Gas Act,1 which was added by 

the Energy Policy Act of 2005 (EPAct 

2005) to require reporting from entities 

not under the Commission’s traditional 

jurisdiction.2 At this time, as discussed 

infra, due to other market-related 

Commission initiatives, we do not 

propose additional regulations for 

transparency in electricity markets. 

2. The first proposal, designed to 

make available the information needed 

to track daily flows of natural gas 

throughout the United States, would 


jlentini on PROD1PC65 with PROPOSALS