Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Proposed Rules 40987

shifting of the third stage turbine stator,

which could result in an uncontained engine

failure and damage to the aircraft,

accomplish the following:

(a) For engines with third stage turbine

stators with S/Ns listed in Table 1 of National

Flight Services SB No. NF-TPE331-A72–

10961, dated April 28, 1997, no action is

required.

(b) For engines with third stage turbine

stators with S/Ns not listed in Table 1 of

National Flight Services SB No. NF-TPE331-

A72–10961, dated April 28, 1997, remove the

unserviceable third stage turbine stator

assembly in accordance with the applicable

engine maintenance manual and the

following schedule:

Third stage turbine

stator cycles in service (cis) since radiographic inspection in

accordance with AD

87–19–02 paragraph

(b) or AD 93–05–09

paragraph (h)

Removal schedule

Unknown CIS since

inspection.

Remove within 600

CIS after the effective date of this AD,

at next access, or

prior to March 31,

2002, whichever

occurs first.

2200 or more CIS

since inspection.

Remove within 600

CIS after the effective date of this AD,

at next access, or

prior to March 31,

2002, whichever

occurs first.

Less than 2200 CIS

since inspection.

Remove prior to accumulating 2,800

CIS, at next access, or prior to

March 31, 2002,

whichever occurs

first.

(c) For the purpose of this AD, the next

access to the third stage stator assembly is

defined as disassembly of the turbine beyond

the removal of the third stage rotor.

Note 2: This AD does not supersede AD

93–05–09. The removal schedule in

paragraph (b) of this AD does not affect the

requirements of AD 93–05–09.

(d) For the purpose of determining third

stage turbine stator removal under paragraph

(b) of this AD, third stage turbine stator hours

time in service (TIS) may be converted to CIS

since inspection by multiplying by 1.5 the

number of hours since radiographic

inspection in accordance with paragraph (b)

of AD 87–19–02 or paragraph (h) of AD 93–

05-09.

(e) For third stage turbine stator assemblies

removed in accordance with paragraph (b) of

this AD, accomplish either a radiographic

inspection for inadequate weld penetration

and fatigue cracking, and, if necessary,

replace with a serviceable assembly in

accordance with the Accomplishment

Instructions of National Flight Services SB

No. NF-TPE331-A72–10961, dated April 28,

1997; or replace with a serviceable assembly

in accordance with the Accomplishment

Instructions of AlliedSignal Inc. SB No.

TPE331-A72–0861, Revision 2, dated April

23, 1997. Accomplishing the radiographic

inspection required by this paragraph

constitutes compliance with the radiographic

inspection requirement of paragraph (h) of

AD 93–05–09.

(f) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Los

Angeles Aircraft Certification Office.

Operators shall submit their requests through

an appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Los Angeles Aircraft

Certification Office.

Note 3: Information concerning the

existence of approved alternative methods of

compliance with this airworthiness directive,

if any, may be obtained from the Los Angeles

Aircraft Certification Office.

(g) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the aircraft to

a location where the requirements of this AD

can be accomplished.

Issued in Burlington, Massachusetts, on

July 8, 1997.

Ronald L. Vavruska,

Acting Manager, Engine and Propeller

Directorate, Aircraft Certification Service.

[FR Doc. 97–20193 Filed 7–30–97; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

18 CFR Parts 101, 116, 201, 216 and

352

[Docket No. RM97–6–000]

Units of Property Accounting

Regulations

July 25, 1997.

AGENCY: Federal Energy Regulatory

Commission.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Federal Energy

Regulatory Commission is proposing to

amend its units of property and oil

pipeline regulations to require

companies to maintain a written

property units listing, to apply the

listing consistently, and to furnish the

Commission with a justification of any

changes in the listing, if requested, and

to clarify that companies may use

estimates when it is impractical or

unduly burdensome for companies to

identify the cost of retired property. In

addition, the Commission proposes to

remove certain regulations which

prescribe unit-of-property listings for

jurisdictional companies. These changes

will allow companies additional

flexibility in maintaining their records

of units of property. Finally, the

Commission also proposes to remove

the regulation which prescribes a

minimum rule that requires Oil

Pipelines to charge operating expenses

for acquisitions, additions and

improvements costing less than $500.

DATES: Comments are due on or before

September 15, 1997.

ADDRESSES: File comments with the

Office of the Secretary, Federal Energy

Regulatory Commission, 888 First

Street, NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT:

Harris S. Wood, Office of the General

Counsel, Federal Energy Regulatory

Commission, 888 First Street, NE,

Washington, DC 20426, (202) 208–

0224

Mark Klose, Office of the Chief

Accountant, Federal Energy

Regulatory Commission, 888 First

Street, NE, Washington, DC 20426,

(202) 219–2595

SUPPLEMENTARY INFORMATION: In

addition to publishing the full text of

this document in the Federal Register,

the Commission provides all interested

persons an opportunity to inspect or

copy the contents of this document

during normal business hours in Room

2A, 888 First Street, NE., Washington

DC 20426.

The Commission Issuance Posting

System (CIPS), an electronic bulletin

board service, provides access to the

texts of formal documents issued by the

Commission. CIPS is available at no

charge to the user and may be accessed

using a personal computer with a

modem by dialing 202–208–1397 if

dialing locally or 1–800–856–3920 if

dialing long distance. To access CIPS,

set your communications software to

19200, 14400, 12000, 9600, 7200, 4800,

2400, or 1200 bps, full duplex, no

parity, 8 data bits and 1 stop bit. The

full text of this order will be available

on CIPS in ASCII and WordPerfect 6.1

format. CIPS user assistance is available

at 202–208–2474.

CIPS is also available on the Internet

through the Fed World system. Telnet

software is required. To access CIPS via

the Internet, point your browser to the

URL address: http://www.fedworld.gov

and select the ‘‘Go to the FedWorld

Telnet Site’’ button. When your Telnet

software connects you, log on to the

FedWorld system, scroll down and

select FedWorld by typing: 1 and at the

command line and type: /go FERC.

FedWorld may also be accessed by

Telnet at the address fedworld.gov.

Finally, the complete text on diskette

in WordPerfect format may be
40988 Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Proposed Rules

1FERC Form No. 1: Annual Report of Major

Electric Utilities, Licensees and Others; FERC Form

1-F: Annual Report for Non-major Public Utilities

and Licensees; FERC Form No. 2: Annual Report of

Major Natural Gas Companies; FERC Form 2-A:

Annual Report of Non-major Natural Gas

Companies; FERC Form No. 6: Annual Report of Oil

Pipeline Companies.

2 2 FR 135, January 26, 1937.

3The current version of the USofA for Public

Utilities is found at 18 CFR, subchapter C, part 101,

et seq.; for natural gas companies, 18 CFR,

subchapter F, part 201 et seq.; and for Oil Pipelines,

18 CFR, subchapter Q, part 352.

4List of Property for Use in Accounting for the

Addition and Retirement of Reactor Plant

Equipment, FERC Stats. & Regs., Regulations

Preamble 1986–1990 ¶ 30,779 (1987).

5 4 FR 4764, December 5, 1939.

6Order Amending the Uniform System of

Accounts for Natural Gas Companies and Related

Regulations to Provide for Base Load Liquefied

Natural Gas Facilities, FERC Stats. & Regs.,

Regulations Preamble 1977–1981, ¶ 30,009A (1978).

7 42 U.S.C.A. § 7101 (1995).

8Edison Electric Institute, Interstate Natural Gas

Association, American Gas Association, and

Association of Oil Pipelines.

purchased from the Commission’s copy

contractor, La Dorn Systems

Corporation. La Dorn Systems

Corporation is also located in the Public

Reference Room at 888 First Street, NE.,

Washington, DC 20426.

Federal Energy Regulatory Commission

[Docket No. RM97–6–000]

Notice of Proposed Rulemaking

July 25, 1997

Recordkeeping for Units of Property

Accounting Regulations for Public Utilities

and Licensees, Natural Gas Companies and

Oil Pipeline Companies.

The Federal Energy Regulatory

Commission (Commission) proposes to

modify its regulations governing units of

property to simplify the fixed-asset

recordkeeping requirements for Public

Utilities and Licensees (Public Utilities),

Natural Gas Companies, and Oil

Pipeline Companies. These three groups

are collectively called ‘‘Companies’’ in

this Notice of Proposed Rulemaking

(NOPR).

This NOPR proposes to remove the

Commission’s prescribed units of

property listings contained in 18 CFR

parts 116 and 216 and instruction 3–14

of part 352, thereby giving Companies

the flexibility to maintain their own

property listings and corresponding

fixed-asset records. The NOPR also

proposes to require Companies to

maintain their own written property

units listing for use in accounting for

additions and retirements of plant,

apply the listing consistently, and if

requested, furnish the Commission with

the justification for any changes to the

listing.

The NOPR proposes to clarify existing

requirements for Public Utilities and

Natural Gas Companies, and add the

requirement for Oil Pipelines regarding

estimating property costs when it is

unduly burdensome to determine the

cost of retired property. This will permit

Oil Pipelines, as well as Public Utilities

and Natural Gas Companies, to use

estimates, and requires that Companies

furnish the basis of their estimate to the

Commission, if requested.

Lastly, the NOPR proposes to remove

the minimum rule for Oil Pipelines.

This rule requires that Oil Pipelines

must expense additions and

improvements of less than $500 and

must seek Commission approval to

change this amount.

The proposed regulations will give

Companies the opportunity to identify

and maintain property unit listings that

are up-to-date and more in harmony

with the needs of their businesses. It

will permit Companies to reduce the

level and number of detailed property

unit records that they currently

maintain. Additionally, the Commission

will not need to commit resources for

maintaining and approving changes to

the property listings.

The elimination of parts 116, 216, and

352 (instruction 3–14) will not affect the

information currently reported in the

FERC Forms 1, 1–F, 2, 2–A or 6.1 These

Forms do not report costs at the level of

detail prescribed by parts 116, 216 and

352 (instruction 3–14). Therefore, the

NOPR will not affect the information

contained in these Forms. The

elimination of parts 116, 216, and 352

(instruction 3–14) will not affect the

manner in which costs are recognized

for accounting or rate-making purposes.

Companies will continue to treat all

plant as consisting of retirement units

and minor items of property. Under the

proposed rule, Companies will account

for the additions and retirements of

such plant in accordance with

instructions contained in the

Commission’s Uniform System of

Accounts (USofA) for Public Utilities,

Natural Gas Companies, and Oil

Pipeline Companies.

I. Background

a. Public Utilities and Natural Gas

Companies

In 1937, the Federal Power

Commission (FPC) issued Order No. 45 2

that prescribed the USofA for Public

Utilities subject to the Federal Power

Act.3 Order No. 45 also established the

property unit listing for use in

accounting for additions and

retirements of electric plant.

These regulations do not permit

Public Utilities to combine the items in

the listing into fewer, higher level units

without Commission approval. The

Commission made only one significant

revision to the electric plant property

unit listing when, in 1987, it added

nuclear plant equipment.4

Similarly, in 1939, the FPC issued

Order No. 69, effective January 1, 1940,

which established the property unit

listing for use in accounting for

additions and retirements of gas plant.

These regulations also do not permit

natural gas companies to combine the

items in the listing into fewer, higher

level units without Commission

approval.5 The Commission made only

one significant revision to the gas plant

property unit listing when, in 1978, it

added liquefied natural gas plant

equipment.6

b. Oil Pipelines

In 1977, the Commission began

regulating Oil Pipelines, with the

implementation of the Department of

Energy Organization Act.7 Prior to 1977,

the Interstate Commerce Commission

(ICC) regulated interstate oil pipelines

and prescribed a property units listing.

The Commission continues to use the

ICC’s prescribed listing as identified in

18 CFR part 352 (instruction 3–14). The

regulations do not permit Oil Pipelines

to combine, add or expand the property

items contained in the listing without

Commission approval. Oil Pipeline

plant property listings have not been

revised or updated since the

Commission began regulating Oil

Pipelines.

II. Proposed Changes to Regulations

The Commission performed a review

of current practices by Public Utilities,

Natural Gas Companies, and Oil

Pipelines in applying Parts 116, 216 and

352. Between January and April 1997,

Commission staff met with several

representatives from Public Utilities,

Natural Gas Companies, Oil Pipelines,

and associated Industry Groups 8 to

discuss the effects on Companies of

identifying and tracking units of

property at the prescribed detailed level.

Based on this review, the Commission

proposes to reduce detailed

recordkeeping across all industry

segments.

For Public Utilities and Natural Gas

Companies, the Commission proposes to

delete 18 CFR parts 116 and 216 which

prescribe a units of property listing for

the additions and retirements of electric

plant and gas plant, respectively. The

Commission proposes to modify 18 CFR

part 101, Electric Plant Instruction 10,

and 18 CFR part 201, Gas Plant

Instruction 10, to require companies to
Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Proposed Rules 40989

9 18 CFR parts 101, 201 and 352. The USofA for

Public Utilities and Natural Gas Companies

specifies in the plant instructions of parts 101 and

201, respectively, the type of information

companies must keep related to their fixed assets.

10The process of sub-dividing a fixed asset into

its various major components or unit of propoerty

units is also referred to as the ‘‘unitization process.’’

maintain a written property units

listing, to apply the listing consistently,

and to furnish the Commission with the

justification for any changes to the

listing, if requested. In addition, the

Commission proposes to clarify 18 CFR

parts 101 and 201, concerning the use

of estimates when it is impractical or

unduly burdensome for Companies to

identify the cost of retired property.

For Oil Pipelines, the Commission

proposes to delete 18 CFR part 352

(instruction 3–14), which prescribes a

units-of-property listing. The

Commission proposes to modify 18 CFR

part 352 (instruction 3–4) to require Oil

Pipelines to maintain a written property

units listing, to apply the listing

consistently, and to furnish the

Commission with the justification for

any changes to the listing, if requested.

In addition, the Commission proposes to

clarify 18 CFR part 352 (instruction 3–

7), concerning the use of estimates when

it is impractical or unduly burdensome

for Oil Pipelines to identify the cost of

property retired.

Finally, the Commission also

proposes to delete 18 CFR part 352

(instruction 3–2), which prescribes a

minimum rule that requires Oil

Pipelines to charge operating expenses

for acquisitions, additions and

improvements costing less than $500,

and to delete any references to the

minimum rule in Part 352 (instructions

3–4, 3–5, and 3–6(a)).

III. Discussion

The USofA requires Companies to

record the cost of additions and

retirements of property and equipment

in the appropriate plant account.9

Additionally, Companies maintain a

fixed asset recordkeeping system that

tracks these plant account costs by

property units. Parts 116, 216, and 352

of the Commission’s regulations

prescribe the detailed property unit

listings that Companies must use to

identify the items of property and

equipment tracked by the fixed asset

recordkeeping system.

These listings prescribe a level of

detail that companies maintain to

support the amounts in the plant

accounts. However, the property unit

listings do not reflect the technological

changes that have taken place in the

utility industry. The NOPR proposes to

remove the prescribed property unit

listings, and allow Companies to

identify property units and maintain a

level of support determined by their

business needs. The NOPR will not

eliminate the need for Companies to

maintain a property recordkeeping

system. Companies will continue to

maintain support of the amounts shown

in the plant accounts.

As discussed below, the level of detail

prescribed by the property unit listings

and regulations place an unnecessary

burden on Companies, are not current,

are too restrictive, and appear to provide

minimal benefit to either the Companies

or to the Commission.

A. Burdens for Companies

(1) Recordkeeping Burden

Companies are experiencing fixed

asset recordkeeping burdens due to the

level of detail currently prescribed by 18

CFR parts 116, 216, and 352 (instruction

3–14). These regulations require

companies to keep detailed fixed asset

records for each unit of property and its

associated cost, and track the units’

costs throughout the life of the asset.

For example, under the Commission’s

prescribed property unit listings, a

Company may keep several fixed asset

records for a building. These records

detail the cost of the building’s

foundation, ventilating system, fire

escape system, fire protection system,

plumbing system, roof, and various

other units of property, if the

components or systems are relatively

costly, and are identified in the List of

General Retirement Units.10

In April 1997, Industry Groups

initiated and conducted their own

survey of their associated companies.

The survey requested Companies to

estimate the burden associated with

tracking units of property in accordance

with parts 116, 216 and 352 (instruction

3–14). Companies’ responses included

estimated annual number of hours, labor

dollars, and the portion of software

costs used for complying with the

regulations. Table 1 shows the estimated

cost of identifying units of property in

accordance with the current regulations,

based upon meetings with the Industry

Groups and their survey results.

TABLE 1.—AVERAGE ANNUAL LABOR

COSTS INCURRED PER SURVEYED

COMPANY TO TRACK UNITS OF

PROPERTY AT DETAILED LEVEL PRESCRIBED BY PARTS 116, 216 AND

352. INSTRUCTION 3–14

Source*

Average

annual

labor costs

per surveyed

company

Edison Electric Institute (EEI) ..... $592,000

Interstate Natural Gas Association of America (INGAA) ......... 122,000

American Gas Association

(AGA) ...................................... 315,000

Association of Oil Pipelines

(AOPL) .................................... 80,000

* 13 Public Utilities responded to EEI’s preliminary survey; 16 Natural Gas Companies

responded to INGAA’s preliminary survey, and

19 Oil Pipelines responded to AOPL’s preliminary survey. AGA did not identify the number

of respondents.

Eliminating the property unit listings

and regulations would give Companies

the flexibility to maintain their own

property listings and track the costs of

fixed assets at the level of detail tailored

to their business. This would reduce the

burden Companies experience when

tracking fixed assets at a level more

detailed than either their business or the

Commission needs.

(2) Software Burden

Another burden placed on Companies

is the cost of developing fixed asset

software that is utility specific, or

purchasing and modifying non-utility

specific software. Companies often must

modify the software in order to track

units of property in the manner

prescribed by the Commission. The

preliminary surveys that were initiated

and conducted by Industry Groups

show their associated companies incur

costs ranging from $20,000 to $2.7

million for fixed asset software.

Based on the preliminary surveys,

Companies could realize substantial

savings if the Commission deletes

unnecessary detailed recordkeeping

requirements. The proposed changes

would also eliminate the burden placed

on the Commission to update the items

in the listings.

B. Revamping Fixed Asset Regulations

(1) Property Units Listings

The Commission’s review of electric,

gas and oil pipeline property listings

found that the Commission’s property

listings do not contain all types of

property currently used by Companies.

The listings in Parts 116, 216, and 352

(instruction 3–14) do not include
40990 Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Proposed Rules

11 18 CFR part 101 for Public Utilities states in

electric plant instruction 10(D) that the ‘‘book cost

of electric plant retired shall be the amount at

which such property is included in the electric

plant accounts. . . The book cost shall be

determined from the utility’s records and if this

cannot be done, it shall be estimated;’’ 18 CFR part

201 for Natural Gas Companies states in gas plant

instruction 10(D) that the ‘‘book cost of gas plant

retired shall be the amount at which such property

is included in the gas plant accounts * * * The

book cost shall be determined from the utility’s

records and if this cannot be done, it shall be

estimated.’’

property resulting from technological

advances, such as scrubbers, microwave

towers, and smart pigging equipment.

Additionally, the property unit listings

contain items of property that are no

longer used by Companies such as

telegraph and teletype equipment and

gas storage cleaning equipment. By

allowing Companies the flexibility to

identify and maintain their own

property unit listings the proposed

revisions to the regulations will

eliminate the need for the Commission

to devote resources necessary to update

the listings.

(2) Minimum Rule for Oil Pipelines

Unlike Public Utilities and Natural

Gas Companies, Oil Pipelines are

subject to a Minimum Rule as

prescribed in Part 352 (instruction 3–2).

The minimum rule requires Oil

Pipelines to charge operating expenses

for acquisitions, additions and

improvements costing less than $500. It

also requires Oil Pipelines to obtain

Commission approval if they wish to

change the minimum level.

The Commission considers the $500

dollar threshold to be inadequate in

today’s environment. Consequently, the

Commission proposes to delete the

prescribed minimum rule, and permit

Oil Pipelines to establish their own

dollar threshold in order to avoid undue

refinement in accounting for

acquisitions, additions, and

improvements.

C. Restrictions on Estimating Cost

Carrier regulations do not permit

companies to estimate property costs at

the time of retirement when the cost is

not determinable. However, Public

Utilities and Natural Gas Companies are

permitted to use estimates in similar

circumstances.11 Unlike Oil Pipelines,

they may use cost trending indices to

determine an estimated cost of retired

property when it is impractical or

unduly burdensome to identify the cost.

Therefore, the Commission proposes

to permit Oil Pipeline to use estimates

in Oil Pipeline plant instructions when

it is impractical or unduly burdensome

to identify the cost of the property

retired. The Commission will also

require that Oil Pipelines be prepared to

furnish the Commission with the basis

of such estimates if requested.

IV. Information Collection Statement

The following collections of

information contained in this proposed

rule are being submitted to the Office of

Management and Budget (OMB) for

review under the Paperwork Reduction

Act of 1995. (See 44 U.S.C. 3507(d)) The

information provided under 18 CFR

parts 101 and 116 is approved under

OMB Control Nos. 1902–0021, 1902–

0029 and 1902–0092; for parts 201 and

216, OMB Control Nos. 1902–0028,

1902–0030 and 1902–0092 and for part

352 OMB Control Nos. 1902–0022.

Applicants shall not be penalized for

failure to respond to these collections of

information unless the collection(s) of

information display a valid OMB

control number.

The Commission’s regulations

governing units of property in parts 116,

216 and 352 (instruction 3–14) require

companies to keep detailed fixed asset

records, including the costs for each

unit of property, and then track the

units’ costs throughout the life of the

asset. These regulations place

recordkeeping burdens on Companies.

Information Collection Burden and

Costs: In the preliminary survey

conducted in April 1997, Companies

provided an estimate of the annual

number of hours they incur when

identifying units of property in

accordance with parts 116, 216 and 352

(instruction 3–14) regulations. Table 2

displays the average number of hours

spent per respondent in each industry

group:

TABLE 2.—AVERAGE ANNUAL LABOR

HOURS INCURRED PER SURVEYED

COMPANY TO TRACK UNITS OF

PROPERTY AT THE PRESCRIBED DETAILED LEVEL

Source

Average

Annual

Labor

Hours per

Surveyed

Company

Public Utilities (source: Edison

Electric Institute) ...................... 16,430

Natural Gas Companies (source:

Interstate Natural Gas Association of America) .................. 5,863

Total Average Annual Labor Hours for

Collection of Information for Public

Utilities and Natural Gas Companies:

4,224,259.

The Commission anticipates

substantial savings with the proposed

reduction of these recordkeeping

requirements and, as part of the

proposed rule, solicits comments on

potential cost savings. (See 5 CFR

1320.11)

Comments are solicited on the

Commission’s continuing need for this

information, whether the information

has practical use, ways to enhance the

quality, use and clarity of the

information collected, and any

suggested methods for minimizing the

respondent’s burden, including the use

of automated information techniques.

The Commission requires public

utilities and licensees, natural gas

companies and oil pipeline companies

to identify units of property as listed in

18 CFR parts 116, 216 and 352

(instruction 3–14). The listing identifies

major components of plant property

each company must track throughout

the property’s life. The Commission also

specifies in parts 101 and 201 (Electric

and Gas Plant Instructions), the type of

information and level of detail

Companies must keep of their fixed

assets.

The proposed rule seeks to modify

these requirements to reduce the

recordkeeping burden imposed on

Companies and to make the regulations

current with industry practices.

Therefore, the Commission proposes to

delete parts 116, 216 and 352

(instruction 3–14)—Property Unit

Listings and requirements.

The Commission’s internal review

determined that there is specific,

objective support for the burden

estimates associated with the

Commission’s requirements.

Interested persons may obtain

information on the reporting

requirements by contacting the

following: Federal Energy Regulatory

Commission, 888 First Street, NE,

Washington, DC 20426, (Attention:

Michael Miller, Division of Information

Services, Phone: (202) 208–1415, fax:

(202) 273–0873, E-mail:

mmiller@ferc.fed.us

For submitting comments concerning

the collection of information(s) and the

associated burden estimate(s) send your

comments to the contact listed above

and to the Office of Management and

Budget, Office of Information and

Regulatory Affairs, Washington, D.C.

20503. (Attention: Desk Officer for the

Federal Energy Regulatory Commission,

phone: (202) 395–3087, fax: (202) 395–

7285)

V. Environmental Analysis

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
Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Proposed Rules 40991

12Order No. 486, Regulations Implementing the

National Environmental Policy Act, 52 FR 47897

(Dec. 17, 1987), FERC Statutes and Regulations,

Regulations Preambles 1986–1990 ¶ 30,783 (1987).

13 18 CFR 380.4.

14See 18 CFR 380.4(a)(2)(ii).

15 5 U.S.C. 601–612.

16 5 U.S.C. 605(b).

environment.12 The Commission has

categorically excluded certain actions

from these requirements as not having a

significant effect on the human

environment.13 The action proposed

here is procedural in nature and

therefore falls within the categorical

exclusions provided in the

Commission’s regulations.14 Therefore,

neither an environmental impact

statement nor an environmental

assessment is necessary and will not be

prepared in this proposed NOPR.

VI. Regulatory Flexibility Act

Certification

The Regulatory Flexibility Act 15

generally requires the Commission to

describe the impact that a proposed rule

would have on small entities or to

certify that the rule will not have a

significant economic impact on a

substantial number of small entities. An

analysis is not required if a proposed

rule will not have such an impact.16

Pursuant to section 605(b), the

Commission certifies that the proposed

rule, if promulgated, will not have a

significant adverse economic impact on

a substantial number of small entities.

VII. Comment Procedures

The Commission invites interested

persons to submit written 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.

All comments must be filed with the

Commission no later than September 15,

1997. An original and 14 copies of

comments should be submitted to the

Office of the Secretary, Federal Energy

Regulatory Commission, 888 First

Street, NE, Washington, DC 20426, and

should refer to Docket No. RM97–6–000.

Additionally, comments should be

submitted electronically. Participants

can submit comments on computer

diskette in WordPerfect 6.1 or lower

format or in ASCII format, with the

name of the filer and Docket No. RM97–

6–000 on the outside of the diskette.

All written comments will be placed

in the Commission’s public files and

will be available for inspection in the

Commission’s Public Reference Room at

888 First Street, NE, Washington, DC

20426, during regular business hours.

List of Subjects

18 CFR Part 101

Electric power, Electric utilities,

Reporting and recordkeeping

requirements, Uniform System of

Accounts

18 CFR Part 116

Electric power plants, Electric

utilities, Reporting and recordkeeping

requirements, Uniform System of

Accounts

18 CFR Part 201

Natural gas, Reporting and

recordkeeping requirements, Uniform

System of Accounts

18 CFR Part 216

Natural gas, Reporting and

recordkeeping requirements, Uniform

System of Accounts

18 CFR Part 352

Pipelines, Reporting and

recordkeeping requirements, Uniform

System of Accounts.

By direction of the Commission.

Lois D. Cashell,

Secretary.

In consideration of the foregoing, the

Commission gives notice of its proposal

to amend Parts 101, 116, 201, 216, and

352 Chapter I, Title 18, Code of Federal

Regulations, as set forth below.

PART 101—UNIFORM SYSTEM OF

ACCOUNTS PRESCRIBED FOR

PUBLIC UTILITIES AND LICENSEES

SUBJECT TO THE PROVISIONS OF

THE FEDERAL POWER ACT

1. The authority citation for Part 101

continues to read as follows:

Authority: 16 U.S.C. 791a–825r, 2601–

2645; 31 U.S.C. 9701; 42 U.S.C. 7102–7352,

7651–7651o.

2. In Part 101, Electric Plant

Instruction 10, paragraphs A and D are

revised to read as follows:

10. Additions and Retirements of

Electric Plant.

A. For the purpose of avoiding undue

refinement in accounting for additions

to and retirements and replacements of

electric plant, all property shall be

considered as consisting of (1)

retirement units and (2) minor items of

property. Each utility shall maintain a

written property units listing for use in

accounting for additions and

retirements of electric plant, apply the

listing consistently, and if requested,

furnish the Commission with

justifications for any changes to the

listing.

* * * * *

D. The book cost of electric plant

retired shall be the amount at which

such property is included in the electric

plant accounts, including all

components of construction costs. The

book cost shall be determined from the

utility’s records and if this cannot be

done it shall be estimated. Utilities must

furnish the particulars of such estimates

to the Commission, if requested. When

it is impracticable to determine the book

cost of each unit, due to the relatively

large number or small cost thereof, an

appropriate average book cost of the

units, with due allowance for any

differences in size and character, shall

be used as the book cost of the units

retired.

* * * * *

3. In Part 101, Electric Plant

Instruction 11, paragraph C is revised to

read as follows:

11. Work Order and Property Record

System Required.

* * * * *

C. In the case of Major utilities, each

utility shall maintain records in which,

for each plant account, the amounts of

the annual additions and retirements are

classified so as to show the number and

cost of the various record units or

retirement units.

PART 116—UNITS OF PROPERTY FOR

USE IN ACCOUNTING FOR ADDITIONS

TO AND RETIREMENTS OF ELECTRIC

PLANT

4. Part 116 is removed.

PART 201—UNIFORM SYSTEM OF

ACCOUNTS PRESCRIBED FOR

NATURAL GAS COMPANIES SUBJECT

TO THE PROVISIONS OF THE

NATURAL GAS ACT

5. The authority citation for Part 201

continues to read as follows:

Authority: 15 U.S.C. 717–717w, 3301–

3432; 42 U.S.C. 7101–7352, 7651–7651o.

6. In Part 201, Gas Plant Instruction

10, paragraphs A and D are revised to

read as follows:

10. Additions and retirements of gas

plant. A. For the purpose of avoiding

undue refinement in accounting for

additions to and retirements and

replacements of gas plant, all property

shall be considered as consisting of (1)

retirement units and (2) minor items of

property. Each utility shall maintain a

written property units listing for use in

accounting for additions and

retirements of gas plant, apply the

listing consistently, and if requested,

furnish the Commission with
40992 Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Proposed Rules

justifications for any changes to the

listing.

* * * * *

D. The book cost of gas plant retired

shall be the amount at which such

property is included in the gas plant

accounts, including all components of

construction costs. The book cost shall

be determined from the utility’s records

and if this cannot be done it shall be

estimated. Utilities must furnish the

particulars of such estimates to the

Commission, if requested. When it is

impracticable to determine the book

cost of each unit, due to the relatively

large number or small cost thereof, an

appropriate average book cost of the

units, with due allowance for any

differences in size and character, shall

be used as the book cost of the units

retired.

* * * * *

7. In Part 201, Gas Plant Instruction

11, paragraph C is revised to read as

follows:

11. Work order and property record

system required.

* * * * *

C. Each utility shall maintain records

in which, for each plant account, the

amounts of the annual additions and

retirements are classified so as to show

the number and cost of the various

record units or retirement units.

PART 216—UNITS OF PROPERTY FOR

USE IN ACCOUNTING FOR ADDITIONS

TO AND RETIREMENTS OF GAS

PLANT

8. Part 216 is removed.

PART 352—UNIFORM SYSTEM OF

ACCOUNTS PRESCRIBED FOR OIL

PIPELINE COMPANIES SUBJECT TO

THE PROVISIONS OF THE

INTERSTATE COMMERCE ACT

9. The authority citation for Part 352

is revised to read as follows:

Authority: 49 U.S.C. 60502; 49 App. U.S.C.

1–85.

10. In Part 352, Instructions for

Carrier Property Accounts, instruction

3–2, Minimum Rule is removed. In

instructions 3–5, introductory text, and

3–6(a), the phrase ‘‘subject to the

minimum rule’’ is removed.

11. In Part 352, Instructions for

Carrier Property Accounts, instruction

3–4, Additions is revised to read as

follows:

3–4 Additions. Each carrier shall

maintain a written property units listing

for use in accounting for additions and

retirements of carrier plant, apply the

listing consistently, and if requested,

furnish the Commission with

justifications for any changes to the

listing. When property units are added

to Carrier plant, the cost thereof shall be

added to the appropriate carrier plant

account as set forth in the policy.

12. In Part 352, Instructions for

Carrier Property Accounts, instruction

3–7, Retirements, introductory text and

paragraph (b)(1) are revised and new

paragraph (c) is added to read as

follows:

3–7 Retirements. When property units

are retired from carrier plant, with or

without replacement, the cost thereof

and the cost of minor items of property

retired and not replaced shall be

credited to the carrier plant account in

which it is included. The retirement of

carrier property shall be accounted for

as follows:

(a) * * *

(b) Property. (1) The book cost, as set

forth in paragraph (c) of this instruction,

of units of property retired and of minor

items of property retired and not

replaced shall be written out of the

property account as of date of

retirement, and the service value shall

be charged to account 31, Accrued

Depreciation—Carrier Property.

* * * * *

(c) The book cost of carrier property

retired shall be determined from the

carrier’s records and if this cannot be

done it shall be estimated. When it is

impracticable to determine the book

cost of each unit, due to the relatively

large number or small cost thereof, an

appropriate average book cost of the

units, with due allowance for any

differences in size and character, shall

be used as the book cost of the units

retired. Oil Pipelines must furnish the

particulars of such estimates to the

Commission, if requested.

13. In Part 352, Instructions for

Carrier Property Accounts, instruction

3–14 Accounting units of property is

removed.

[FR Doc. 97–20149 Filed 7–30–97; 8:45 am]

BILLING CODE 6717–01–P

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 4, 122, 123, 148 and 192

RIN 1515–AB99

Lay Order Period; General Order;

Penalties

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document proposes to

amend the Customs Regulations to

require that the importing carrier notify

a bonded warehouse proprietor of the

presence of merchandise that has

remained at the place of arrival or

unlading beyond the lay order period

without entry having been completed,

thereby initiating the obligation of the

bonded warehouse proprietor to arrange

for transportation and storage of the

unentered merchandise at the risk and

expense of the consignee. The document

also proposes to amend the Customs

Regulations to provide for penalties

against importing carriers for failure to

notify Customs of the presence of such

merchandise. These proposed regulatory

changes reflect amendments to the

underlying statutory authority enacted

as part of the Customs Modernization

provisions of the North American Free

Trade Agreement Implementation Act.

Finally, the document makes certain

conforming changes to the Customs

Regulations in order to reflect a number

of other statutory amendments and

repeals enacted by the Customs

Modernization provisions and in order

to reflect the recent recodification and

reenactment of title 49, United States

Code.

DATES: Comments must be received on

or before September 29, 1997.

ADDRESSES: Written comments

(preferably in triplicate) may be

addressed to the Regulations Branch,

Office of Regulations and Rulings, U.S.

Customs Service, Franklin Court, 1301

Constitution Avenue NW., Washington,

DC 20229. Comments submitted may be

inspected at the Regulations Branch,

Office of Regulations and Rulings,

Franklin Court, 1099 14th Street NW.,

Suite 4000, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Jeremy Baskin, Penalties Branch, Office

of Regulations and Rulings (202) 482–

6950.

SUPPLEMENTARY INFORMATION:

Background

On December 8, 1993, amendments to

certain Customs and navigation laws

became effective as the result of

enactment of the North American Free

Trade Agreement Implementation Act,

Public Law 103–182, 107 Stat. 2057.

Title VI of that Act sets forth Customs

Modernization provisions that are

popularly referred to as the Mod Act.

Section 656 of the Mod Act amended

section 448(a) of the Tariff Act of 1930

(19 U.S.C. 1448(a)) to provide, inter alia,

that: (1) The owner or master of any

vessel or vehicle, or the agent thereof,

shall notify Customs of any

merchandise or baggage unladen for

which entry is not made within the time

prescribed by law or regulation; (2) the