[Federal Register Volume 62, Number 27 (Monday, February 10, 1997)]
[Proposed Rules]
[Pages 5940-5948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3199]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 153

[Docket No. RM97-1-000]


Applications for Authorization To Construct, Operate, or Modify 
Facilities Used for the Export or Import of Natural Gas

February 3, 1997.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission is issuing a Notice 
of Proposed Rulemaking (NOPR) to amend the regulations codifying the 
Commission's responsibilities under the Natural Gas Act and Executive 
Order 10485, as amended. The Commission proposes to update its 
regulations governing the filing of applications for the siting, 
construction, and operation of facilities for the import or export of 
natural gas under section 3 of the Natural Gas Act and the issuance and 
modification of Presidential Permits for the construction and operation 
of border facilities. The proposal is necessary to conform the 
Commission's regulations to the Commission's current responsibilities, 
as delegated by the Secretary of Energy.

DATES: Comments are due no later than April 11, 1997.

ADDRESSES: An original and 14 copies of written comments must be filed. 
All filings must refer to Docket No. RM97-1-000 and be addressed to the 
Office of the Secretary, Federal Energy Regulatory Commission, 888 
First Street, NE, Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT:

Albert J. Francese, Office of the General Counsel, Federal Energy 
Regulatory Commission, 888 First Street, NE, Washington, DC 20426, 
(202) 208-0736.
Richard W. Foley, Office of Pipeline Regulation, Federal Energy 
Regulatory Commission, 888 First Street, NE, Washington, DC 20426, 
(202) 208-2245.

SUPPLEMENTARY INFORMATION: In addition to publishing the full text of 
this document in the Federal Register, the Commission also provides all 
interested persons an opportunity to inspect or copy the contents of 
this document during normal business hours in the Public Reference 
Room, Room 2A, 888 First Street, NE, Washington, DC 20426.
    The Commission Issuance Posting System (CIPS), an electronic 
bulletin board service, also 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 document 
will be available on CIPS in ASCII and Word Perfect 5.1 format. CIPS 
user assistance is available at 202-208-2474.
    CIPS also is 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 type:/go FERC. 
FedWorld also may be accessed by Telnet at the address fedworld.gov.
    Finally, the complete text on diskette in Word Perfect format may 
be 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.

I. Introduction

    The Federal Energy Regulatory Commission (Commission) proposes to 
amend part 153 of its regulations governing the siting, construction, 
and operation of facilities for the import and export of natural gas 
between the United States and a foreign country. Part 153 has not been 
significantly revised since the Commission's predecessor, the Federal 
Power Commission (FPC), recodified its regulations in 1947.<SUP>1
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    \1\ Order No. 141, 12 FR 8596 (December 19, 1947). The part 153 
regulations originally became effective on July 11, 1938, in FPC 
Order Nos. 52 (section 3 authorizations) and 66 (Presidential 
Permits).
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    The Commission intends to conform its filing requirements in part 
153 to the Commission's current responsibilities as changed by 
intervening legislation and Department of Energy (DOE) delegation 
orders. The DOE delegation orders divide jurisdiction and authority 
over natural gas import and export issues between the Commission and 
DOE. Thus, the proposed revisions to part 153 implement the 
Commission's currently delegated responsibilities under section

[[Page 5941]]

3 of the Natural Gas Act (NGA) <SUP>2 and Executive Order 10485, as 
amended, regarding the construction and operation of facilities for the 
import and export of natural gas.<SUP>3
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    \2\ 15 U.S.C. 717b.
    \3\ Executive Order 10485, 3 CFR, 1949-1953 Comp., p. 970, as 
amended by Executive Order 12038, 3 CFR 1978 Comp., p. 136.
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    The proposed regulatory revisions generally make the part 153 
regulations current and more readable. To that end, the proposed rule 
redefines and clarifies the Commission's role with respect to granting 
the authorizations necessary to construct and operate facilities for 
the import and export of natural gas between a foreign country and the 
United States. The proposed regulations codify existing practice which 
requires the applicant proposing to construct LNG facilities to file 
exhibits concerning the environmental and safety features of those 
facilities. The proposed regulations also delete references to the 
Commission's previous authority to approve the import and export of 
natural gas.
    The changes to the Commission's regulations are proposed to be 
effective 60 days after publication of the final rule in the Federal 
Register.

II. Information Collection Statement

    The following collection of information contained in this proposed 
rule is being submitted to the Office of Management and Budget (OMB) 
for review under Section 3507(d) of the Paperwork Reduction Act of 
1995.<SUP>4 FERC identifies the information provided under part 153 as 
FERC-539.
                              ___________


<SUP>4 44 U.S.C. 3507(d).

    Comments are solicited on the Commission's need for this 
information, whether the information will have practical utility, the 
accuracy of the provided burden estimates, ways to enhance the quality, 
utility, and clarity of the information to be collected, and any 
suggested methods for minimizing respondents' burden, including the use 
of automated information techniques. The burden estimates for complying 
with this proposed rule are as follows:
    Public Reporting Burden: Estimated Annual Burden:

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                                                            Number of     Number of     Hours per   Total annual
                     Data collection                       respondents    responses     response        hours   
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FERC-539................................................           12            12           200         2,400 
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    Total Annual Hours for Collection (Reporting + Recordkeeping, (if 
appropriate)) = 2,400.
    Based on the Commission's experience with processing applications 
for siting and facilities' construction over the last three fiscal 
years (FY94-FY96), it is estimated that about 12 filings per year will 
be made over the next three years at a burden of 200 hours per filing, 
for a total annual burden of 2,400 hours under the proposed 
regulations.<SUP>5 The current annual reporting burden for FERC-539 
under the current regulations is 38,400 hours. The simplified filing 
requirements under the proposed regulations and a projected reduced 
number of filings per year would result in a reduction of 36,000 hours 
per year from the current OMB burden inventory for FERC-539 data 
collection.
                              ___________


<SUP>5 The 200 hour burden applies to an application by a pipeline 
to construct non-LNG facilities. The 200 hour burden does not 
include the environmental burden on non-pipeline applicants 
proposing to construct LNG facilities. These applicants would 
prepare proposed environmental exhibits E, E-1, and F, which the 
Commission identifies as under reporting requirement FERC-577.

    Applications for import/export facilities vary in size and 
regulatory complexity depending on the project proposed. Accessibility 
of documents through commonly available electronic search services, 
government bulletin boards, and the public record greatly affects 
research time needed to understand the import/export regulatory 
structure and application filing requirements. The total burden for a 
typical new pipeline application under NGA section 3 is estimated at a 
maximum of 200 hours based on an applicant with general knowledge of 
the Federal regulatory scheme for natural gas projects. Applications to 
amend existing authorizations and Presidential Permits would have a 
significantly lesser burden since less background work would be needed.
    Information Collection Costs: The Commission seeks comments on the 
costs to comply with these requirements. It has projected the average 
annualized cost for all respondents to be:

Annualized Capital/Startup Costs--0
Annualized Costs (Operations & Maintenance)--$120,000 ($50 per hour)
Total Annualized Costs--$120,000

    The OMB regulations require OMB to approve certain information 
collection requirements imposed by agency rule.<SUP>6 Accordingly, 
pursuant to OMB regulations, the Commission is providing notice of its 
proposed information collection to OMB.<SUP>7
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    \6\ 5 CFR 1320.11.
    \7\ On December 29, 1996, OMB approved a 90-day extension of 
current FERC-539 data collection (from May 31, 1997 until August 31, 
1997) to allow the Commission to obtain public comment on its 
proposed rule to modify the current reporting requirements.
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    Title: FERC-539, Gas Pipeline Certificate: Import/Export.
Action: Proposed Data Collection.
    OMB Control No.: 1902-0062. The applicant shall not be penalized 
for failure to respond to this collection of information unless the 
collection of information displays a valid OMB control number.
    Respondents: Business or other for-profit, including small 
businesses.
    Frequency of Responses: On occasion.
    Necessity of the Information: The proposed rule revises the 
requirements contained in 18 CFR part 153. Because the Commission no 
longer grants authorizations for the import or export of natural gas, 
the major filing requirements imposed by FERC-539 are no longer 
applicable and revisions of the regulations are needed to reflect these 
changes. The implementation of these data requirements will help the 
Commission carry out its responsibilities under the Natural Gas Act and 
Executive Order 10485, as amended, and coincide with the current 
competitive regulatory environment which the Commission fostered under 
Order No. 636.
    Internal Review: The Commission has assured itself, by means of its 
internal review, that there is specific, objective support for the 
burden estimates associated with the information requirements. The 
Commission's Office of Pipeline Regulation will use the data included 
in applications to determine whether proposed facilities are in the 
public interest as well as for general industry oversight. This 
determination involves, among other things, an examination of adequacy 
of design, cost, reliability, redundancy, safety, and environmental 
acceptability of the proposed facilities. These requirements conform to 
the Commission's plan for efficient information collection,

[[Page 5942]]

communication, and management within the natural gas industry.
    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, email:<a href="/cdn-cgi/l/email-protection#ed8080848181889fad8b889f8ec38b8889c3989e"><span class="__cf_email__" data-cfemail="90fdfdf9fcfcf5e2d0f6f5e2f3bef6f5f4bee5e3">[email protected]</span></a>].
    For submitting comments concerning the collection of information(s) 
and the associated burden estimate(s), please send your comments to the 
contact listed above and to the Office of Management and Budget, Office 
of Information and Regulatory Affairs, Washington, DC 20503. 
[Attention: Desk Officer for the Federal Energy Regulatory Commission, 
phone: (202)395-3087, fax: (202)395-7285]
    III. Discussion

A. Background and Statutory Authority

    Section 3 of the NGA requires prior authorization before exporting 
or importing natural gas from or to the United States. Agency 
implementation of section 3 has evolved in three stages. Initially, the 
FPC was vested with exclusive jurisdiction under section 3 to decide 
all natural gas import and export issues, including the authorization 
to import and export natural gas and to construct and operate necessary 
facilities.<SUP>8 The FPC also had the authority, pursuant to Executive 
Order 10485, as amended, to issue or modify a Presidential Permit for 
the construction and operation of border facilities at the 
international boundary between the United States and Canada or Mexico.
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    \8\ See Distrigas Corporation v. FPC, 495 F.2d 1057 (D.C. Cir. 
1974).
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    The Department of Energy Organization Act (DOE Act), enacted in 
1977, transferred all the FPC's authority over natural gas imports and 
exports to the Secretary of Energy ``unless the Secretary assigns such 
a function to the [Federal Energy Regulatory] Commission.'' <SUP>9 
Between October 1, 1977 and February, 1984, DOE and the Commission 
shared responsibility over natural gas import and export issues 
pursuant to DOE delegation orders (which have since been rescinded). 
The Secretary of Energy administered his authority over natural gas 
import and export issues pursuant to FPC rules in place on September 
30, 1977, until DOE issued its own final regulations.<SUP>10 During 
this transition period, however, ``the lines of jurisdiction and 
authority between the two agencies [were] not entirely clear.'' <SUP>11
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    \9\ See sections 301(b), 402(a) and 402(f) of the Department of 
Energy Organization Act, 42 U.S.C. 7151(b), 7172(a) and 7172(f).
    \10\ DOE's final rules establishing procedures for processing 
applications for the import and export of natural gas and revised ex 
parte rules became effective on September 6, 1984. 49 FR 35302 
(September 6, 1984).
    \11\ DOE, New Policy Guidelines and Delegation Orders on the 
Regulation of Imported Natural Gas, at 23, 49 FR 6684 (February 22, 
1984).
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    The Secretary issued new delegation orders 0204-111 and 0204-112, 
discussed below, in February 1984, to minimize problems of coordination 
on certain import/export issues.<SUP>12 These delegation orders 
allocated regulatory functions concerning the import and export of 
natural gas to the Commission and DOE/Economic Regulatory 
Administration (ERA).<SUP>13 DOE and the Commission continue to share 
responsibility for determining natural gas import/export issues under 
these currently applicable delegation orders.
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    \12\ Both delegation orders were published at 49 FR 6684 
(February 22, 1984).
    \13\ Effective on February 7, 1989, the Assistant Secretary for 
Fossil Energy (DOE/FE) assumed the delegated responsibilities of the 
Administrator of ERA. See DOE Delegation Order No. 0204-127. 54 FR 
11436 (March 20, 1989).
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    Under DOE Delegation Order 0204-111, effective February 22, 1984, 
the Secretary of Energy delegated to the Administrator of ERA authority 
under section 3 of the NGA to regulate the import (including the place 
of entry) and the export (including the place of exit) of natural 
gas.<SUP>14 On the same date, the Secretary of Energy issued Delegation 
Order 0204-112 which delegated to the Commission exclusive authority 
over specific import/export matters.
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    \14\ The Energy Policy Act of 1992, which added paragraphs (b) 
and (c) to section 3 of the NGA, requires the DOE to grant 
applications for the import or export of natural gas ``without 
modification or delay'' if the United States has a free trade 
agreement in effect with the foreign country into which the imported 
or exported natural gas flows.
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    The responsibilities delegated to the Commission include the 
authority to approve or disapprove proposals for the construction, 
operation, and siting of facilities, and when the construction of new 
domestic facilities is involved, the place of entry for imports or 
place of exit for exports. The Commission's delegated authority is 
subject to DOE's right of disapproval if the Administrator finds 
disapproval to be appropriate ``in the circumstances of a particular 
case.'' Thus, under the most recent and presently applicable delegation 
orders, the facility and siting aspects of natural gas import and 
export are delegated and assigned to the Commission for determination 
of the public interest.
    Section 3 of the NGA provides that the Commission ``shall issue an 
order upon application, unless * * * it finds that the proposed 
exportation or importation will not be consistent with the public 
interest.'' The Commission determines the public interest in particular 
proceedings upon consideration of all relevant factors. For example, 
the Commission will authorize the construction and operation of import/
export facilities under NGA section 3 upon its conclusion that the 
proposal is necessary to access new foreign gas supplies and to deliver 
imported gas to an industrial user.<SUP>15 The Commission will also 
grant authorization under NGA section 3 if the Commission concludes 
that the new construction will enhance system reliability, flexibility, 
the dependability of international energy trade, and will not adversely 
affect the service or rates of existing customers.<SUP>16
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    \15\ See National Steel Corporation, 45 FERC para. 61,100 
(1988).
    \16\ Great Lakes Transmission Limited Partnership, 76 FERC para. 
61,148 (1996).
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    A person applying to the Commission for authority under section 3 
must also apply to the Commission, pursuant to DOE Delegation Order No. 
0204-112, for the issuance of a Presidential Permit or an amendment to 
an existing Presidential Permit if the proposed facilities are to be 
located at the borders of the United States and Canada or Mexico. A 
Presidential Permit authorizes the applicant to construct, operate, 
maintain, or connect natural gas pipeline facilities at the 
international borders.
    The Commission has the jurisdiction, pursuant to Executive Order 
10485, as amended, to condition a Presidential Permit ``as the public 
interest may in its judgment require.'' <SUP>17 In addition, Executive 
Order 10485, as amended, requires the Commission to obtain the 
concurrence of the Secretary of State and the Secretary of Defense who 
will consider foreign policy and national security aspects of the 
application.
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    \17\ These conditions are stated as ``articles'' in the body of 
a Presidential Permit. The articles describe the facilities, design 
capacity, nature of the service and include various uniform 
provisions concerning transferability of the Presidential Permit or 
facilities, inspection and access to the facilities, liability for 
damages, filing of information, removal of facilities, possession by 
the United States, and control by a foreign government.
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    An applicant proposing to alter a term of an existing Presidential 
Permit that does not also necessitate new construction, e.g., a 
revision to the authorized operating or design capacity of an existing 
import/export facility,

[[Page 5943]]

must file to amend its Presidential Permit.<SUP>18 That applicant, 
however, does not also require section 3 authorization. On the other 
hand, the applicant granted authorization under NGA section 3 does not 
require a Presidential Permit for the construction of natural gas 
import/export facilities located at tidewater or on the border of the 
United States and international waters.<SUP>19
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    \18\ See Panhandle Eastern Pipe Line Company, 62 FERC para. 
61,190 (1993).
    \19\ See EcoElectrica, L.P., 75 FERC para. 61,157 (1996), Yukon 
Pacific Corporation 39 FERC para.61,216 (1987), and Phillips 
Petroleum Company, 37 FPC 777 (1967).
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B. Objectives of the Proposed Rule.

    Part 153 currently imposes specific filing requirements on 
applicants for authorization under section 3 and Executive Order 10485, 
as amended, to site, construct, and operate facilities for the import 
or export of natural gas.<SUP>20 The proposed part 153 incorporates 
basic housekeeping changes to eliminate obsolete and redundant language 
and sections. The proposed part 153 also makes conforming changes to 
regulations to reflect the Commission's diminished responsibilities in 
the regulation of natural gas imports and exports under DOE's currently 
effective delegation orders.
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    \20\ Thus, the part 153 regulations and this NOPR do not address 
filing requirements applicable to the construction of any connecting 
facilities transporting natural gas in interstate commerce. Such 
facilities would be within the scope of section 7 and the 
Commission's part 157 regulations.
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    The proposed rule also updates the type of information and exhibits 
that an applicant must include in its application. The Commission 
proposes to revise its filing requirements to match its current 
responsibilities and does not propose to change its substantive 
policies.
    Other proposed changes to part 153 reflect the separate but related 
nature of the Commission's and DOE's responsibilities concerning 
natural gas import and export issues. The Commission's proposed 
revisions will make clear that the part 153 regulations apply only to 
the siting, construction, operation, or modification of facilities for 
the import or export of natural gas. On the other hand, DOE's 
responsibility is the authorization of requests to import/export 
natural gas.<SUP>21
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    \21\ Under DOE regulations, applications must be filed at least 
60 days prior to the proposed import or export, unless a later date 
is permitted for good cause shown. See 10 CFR 590.202. DOE processes 
applications for import/export authority on an expedited basis.
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    Proposed Sec. 153.6, codifying current Commission practice, 
requires that an application to the Commission under section 3 be filed 
simultaneously with or after the filing of the related application with 
DOE for authority to import or export natural gas.<SUP>22 The 
information an applicant must file with FERC to support its requested 
authorization is different from that required to be filed to support an 
application to import/export natural gas.<SUP>23
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    \22\ The person filing with DOE for import or export 
authorization may be a shipper of the FERC applicant and need not be 
the FERC applicant.
    \23\ DOE's regulations permit an applicant to submit copies of 
relevant documents filed or intended to be filed with FERC to 
satisfy the requirements of DOE's regulations. See 10 CFR 590.202. 
These regulations would permit a DOE applicant to submit its 
application before FERC to satisfy DOE's requirement that the 
applicant provide a description of the facilities to be used or 
constructed for the proposed import/export. The information that a 
DOE applicant files with DOE concerning imports/exports would not, 
however, generally satisfy the informational requirements of part 
153.
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C. Electronic Filing

    The Commission is not proposing to modify part 153 at this time to 
require an applicant to file its applications on electronic media. The 
Commission will review in a future proceeding the electronic filing 
requirements for the entire certificate application process, including 
existing electronic filing requirements for part 157 applications and 
appropriate electronic filing procedures to adopt for part 153 
applications. The Commission will determine where changes are necessary 
to reflect current policies and modify existing electronic filing 
requirements as necessary to streamline and update the filing process.
    As was done in NOPRs in Docket Nos. RM95-3-000 <SUP>24 and RM95-4-
000,<SUP>25 the Commission will solicit participation of the industry 
and other users of filed information in formulating final electronic 
filing instructions.
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    \24\ Filing and Reporting Requirements for Interstate Natural 
Gas Company Rate Schedules and Tariffs, 60 FR 3111 (January 13, 
1995).
    \25\ Revisions to Uniform System of Accounts, Forms, Statements, 
and Reporting Requirements for Natural Gas Companies, 60 FR 3141 
(January 13, 1995).
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D. The Revised Regulations

    The proposed part 153 is arranged by subparts. General provisions, 
including the regulatory purpose and definitions, are set out in 
subpart A. Applications under NGA section 3 and applications for a 
Presidential Permit are addressed in subparts B and C, respectively, 
with revised section designations. The requirements for paper filing 
and certain procedural matters are set forth in subpart D.
    Since the amendments to part 153 are extensive (with some 
regulatory text retained and other text deleted), it is appropriate to 
republish the entire regulatory text of part 153 instead of identifying 
many fragmentary amendments to the current text. The proposed 
regulations are discussed below.
1. Part 153--Applications for Authorization To Construct, Operate or 
Modify Facilities Used for the Export or Import of Natural Gas
    The Commission proposes the new heading for part 153 to replace the 
current heading (application for authorization to export or import 
natural gas).
2. Authority Citation
    The Commission is proposing to revise the authority citation for 
part 153 to reflect current legal authority--DOE Delegation Order No. 
0204-112 and Executive Order 10485, as amended by Executive Order 
12038.
3. Subpart A--General Provisions
    a. Section 153.1  Purpose. Proposed Sec. 153.1 states that the 
purpose of part 153 is to implement the Commission's authorities 
delegated under section 3 of the Natural Gas Act and Executive Order 
10485, as amended. Part 153 establishes revised procedures for applying 
for authorization under section 3 and for a Presidential Permit.
    b. Section 153.2  Definitions. The Commission is proposing to 
define the terms ``DOE/FE'' (Department of Energy/Office of Fossil 
Energy), ``NBSIR'' (National Bureau of Standards Information Report), 
and ``person'' for purposes of part 153.
    The Commission proposes in Sec. 153.2 to cross-reference DOE's 
definition of ``person'' stated at 10 CFR 590.102(m), which DOE uses 
for purposes of considering applications for import/export 
authorization.<SUP>26 A ``person'' is defined by DOE as ``any 
individual, firm, estate, trust, partnership, association, company, 
joint-venture, corporation, United States local, state and federal 
governmental unit or instrumentality thereof, charitable, educational 
or other institution, and others including any officer, director, 
owner, employee, or duly authorized representative of the foregoing.'' 
The Commission's proposed definition replaces the undefined use of 
``person'' in current Sec. 153.1(a) with a comprehensive listing of 
potential applicants.
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    \26\ 10 CFR 590.102(m).
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    The proposed new definition would by its own terms automatically 
incorporate any future changes by DOE

[[Page 5944]]

in its definition of ``person.'' The proposed definition would not 
change current Commission practice in processing applications under 
section 3 or Executive Order 10485, as amended. The Commission would 
administer the proposed definition of ``person'' consistent with its 
statutory authority.<SUP>27
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    \27\ The Commission has plenary and elastic authority under NGA 
section 3 to prevent gaps in regulation between Federal and local 
jurisdiction as applied to import and export facilities. See 
Distrigas Corporation v. FPC, 495 F.2d 1057 at 1064 (D.C. Cir. 
1974).
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4. Subpart B--Application under Section 3
    a. Section 153.5  Who Shall Apply. Proposed Sec. 153.5(a) retains 
the requirement that a person file an application to seek authorization 
under section 3 and adds a new provision, codifying current practice, 
requiring the filing of an application in order to amend an existing 
authorization. References to the necessity of filing an application for 
import/export authority are deleted.
    Current Sec. 153.1(b) is rewritten as proposed Sec. 153.5(b) to 
revise and restate the current cross-reference to Presidential Permits 
as a requirement that an applicant must also simultaneously apply under 
subpart C for a Presidential Permit for the construction of border 
facilities at the international boundary between the United States and 
Canada or Mexico.
    b. Section 153.6  Time of Filing. Current filing requirements as to 
the form and number of paper copies of applications are deleted from 
current Sec. 153.2 and are included in new subpart D to avoid 
duplication of regulatory text.
    The portion of the third sentence of current Sec. 153.2 stating the 
time of making applications for the import and export of natural gas is 
deleted. In its place, proposed Sec. 153.6 codifies current practice to 
require the simultaneous or prior filing of an application with DOE for 
authority to import or export natural gas. Proposed Sec. 153.6 
recognizes the related nature of applications before the Commission and 
DOE. The current section heading is revised.
    c. Section 153.7  Contents of Application. Proposed Sec. 153.7 
eliminates obsolete references in the text and heading of current 
Sec. 153.3 to information concerning import or export applications and 
to filing fees.<SUP>28 Informational requirements in current 
Secs. 153.3(a) through 153.3(c) identify the applicant. These 
informational requirements are revised and retained in proposed 
Sec. 153.7(a)(1) through (a)(3) with a paragraph heading added. The 
informational requirements in current Secs. 153.3(d) through 153.3(f) 
are deleted because they are associated with the import and export of 
natural gas.
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    \28\ The informational filing requirements in proposed 
Secs. 153.7 and 153.8 are proposed to apply to applications under 
subpart C for Presidential Permits for the construction of import/
export facilities at the border as well.
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    The requirement in current paragraph 153.3(g) to describe proposed 
facilities is retained, expanded, and redesignated as proposed 
Sec. 153.7(b) with a separate paragraph heading added. The information 
required by Sec. 153.7(b) should provide the Commission with sufficient 
details of the applicant's proposal to permit the Commission to process 
applications under subparts B and C, as applicable.
    Proposed Sec. 153.7(b) requires the applicant to include a summary 
of its proposal. In addition, proposed Sec. 153.7(b) requires the 
applicant to file a description of the proposed facilities and a 
description of state, foreign, or other Federal licenses or permits for 
the construction or operation of facilities (revising a similar 
requirement in current Sec. 153.11(d) applicable to Presidential 
Permits). The reference in current Sec. 153.11(d) to permits in 
connection with the import/export of natural gas is deleted. Proposed 
Sec. 153.7(b) includes a new requirement that the applicant must also 
state the status of any non-FERC regulatory proceedings (United States 
or foreign) related to the proposal.
    Proposed Sec. 153.7(c) requires the applicant to file two 
statements with its application. One statement reflects a revision of 
the requirement in current Sec. 153.3(h)(1) that an applicant 
demonstrate that its proposal will not be inconsistent with the public 
interest and the other statement requires, for the first time, a 
description of the nature of the transportation service offered. A 
separate heading is added. Proposed Sec. 153.7(c)(1) identifies 
illustrative elements of the public interest (without restriction on 
the Commission's ability to request other information as necessary in 
proposed Sec. 153.21(b) to cure deficiencies in an application.
    The first illustrative element of the public interest is reflected 
in Commission precedent under NGA section 3 (and section 7) and is not 
part of the current part 153 regulations.
    Proposed Sec. 153.7(c)(1)(i) requires the applicant to file a 
statement demonstrating that the proposal will access new foreign 
supplies of natural gas and new markets, enhance system reliability and 
flexibility and not impair service to existing customers. For example, 
a freeze-up of Gulf coast production platforms may require increased 
reliance on Canadian or Mexican-source natural gas, which could 
necessitate the construction of additional border-crossing facilities. 
Also, the possibility of a break-down in service over critical energy 
corridors at the borders or the existence of transportation bottlenecks 
could warrant the construction of looping transportation facilities.
    Proposed Sec. 153.7(c)(1)(ii) deletes the reference to bundled 
sales service in current paragraph (h)(2) and substitutes 
``transportation service'' in the provision requiring the applicant to 
show that the proposal will not impair service to United States 
customers.
    Proposed Sec. 153.7(c)(iii) revises the requirement to file a 
statement describing certain contracts in current Sec. 153.11(c) 
applicable to Presidential Permits. Proposed Sec. 153.7(c)(iii) 
requires the applicant for section 3 authorization to file a statement 
describing any existing contracts involving the control of operations 
at import/export facilities or transportation rates that could prevent 
competing United States companies from extending their activities in 
the same general area. Such agreements could interfere with free trade 
in natural gas between the United States and Canada or Mexico. They may 
also be inconsistent with proposed Sec. 153.10 which provides that 
section 3 authorizations are not exclusive to the holder.
    Proposed Sec. 153.7(c)(2) establishes a new requirement that the 
applicant include a statement that the proposed import/export 
facilities will be used: (1) To render transportation services under 
Part 284, (2) to provide private transportation, or (3) to provide 
service that is exempt from the provisions of the NGA pursuant to 
sections 1(b) or 1(c) thereof.<SUP>29 This requirement will enable the 
Commission to determine whether the applicant's operations are 
consistent with the Commission's open access transportation policies. 
Current Sec. 153.5 (other information) is redesignated as proposed 
Sec. 153.21(b)(rejection of applications), and Sec. 153.5 is deleted.
---------------------------------------------------------------------------

    \29\ Section 1(b) states that the provisions of the NGA apply, 
inter alia, to the transportation of natural gas in interstate 
commerce but not to ``any other transportation,'' the local 
distribution of natural gas, or the production or gathering of 
natural gas. Section 1(c) exempts a Hinshaw pipeline from the 
provisions of the NGA. The Commission, however, regulates the 
activities of these exempt entities in foreign commerce under 
section 3. See, e.g., Vermont Gas System, Inc., 24 FERC para. 61,366 
(1983) (LDC); Interenergy Sheffield Processing, 78 FERC para. 61,085 
(1997) (gathering); and Havre Pipeline Company, et al., 71 FERC 
para. 61,292) (1995) (intrastate pipeline/gatherer engaging in 
foreign commerce).
---------------------------------------------------------------------------

    d. Section 153.8  Required Exhibits. The Commission proposes to

[[Page 5945]]

redesignate current Sec. 153.4 as proposed Sec. 153.8, which retains 
the requirement to file current Exhibits A through C in new paragraphs 
(a)(1), (a)(2), and (a)(3), respectively, with editorial revisions. 
Current Exhibit A is revised to incorporate the requirement of current 
Sec. 153.11(a)(3) that an applicant for a Presidential Permit describe 
the amount and classes of capital stock issued by a corporate applicant 
and the nationality of officers, directors, and stockholders, and the 
amount and class of stock held by each. The Commission proposes to 
eliminate obsolete exhibits D and E (contracts for the export or import 
of natural gas).
    Proposed Sec. 153.8(a) requires an applicant to file new exhibits D 
(copy of any construction and operation agreements), E (LNG-related 
engineering data), E-1 (LNG-related seismic information for certain 
facilities), and F (an environmental report required by part 380 for 
LNG and non-LNG related facilities). Applicants may refer to the 
``Guidance Manual for Environmental Report Preparation'' to assist in 
the preparation of these exhibits.
    New exhibit D codifies current practice in processing applications 
under section 3 for pipeline facilities, which do not involve the 
import/export of LNG. Exhibit D requires the applicant to verify the 
business feasibility of the import/export project by filing copies of 
construction and operation agreements. These contracts will show how 
the applicant and its Canadian or Mexican counterpart intend to jointly 
construct and operate the border-crossing facilities.
    New exhibits E, E-1, and F codify existing practice which requires 
an applicant for the construction of LNG facilities to provide 
sufficient information that will enable the Commission to determine 
whether the new facilities will be constructed and operated safely and 
with minimal adverse environmental impact. These exhibits are justified 
by the significant safety and environmental implications of LNG 
terminal facilities. The proposed rule revises the existing map exhibit 
as proposed Exhibit G to eliminate the current reference to a scale not 
greater than 20 miles to the inch and, in its place, to require a map 
of suitable scale.
    e. Section 153.9  Transferability. The Commission proposes to 
redesignate current Sec. 153.6 as Sec. 153.9, revise current paragraph 
(a) to delete references to authorizations for the import/export of 
natural gas, and substitute references to authorizations under section 
3. Proposed Sec. 153.9 adds headings to current paragraphs (a) and (b) 
to clarify that authorizations under subpart B are not transferable or 
assignable.
    f. Section 153.10  Authorization Not Exclusive. The Commission 
proposes to redesignate current Sec. 153.7 as Sec. 153.10 and to revise 
the current regulation to eliminate references to authorizations for 
the import/export of natural gas, replacing them with references to 
authorizations for construction and operation under section 3 of the 
NGA. Under proposed Sec. 153.10, which codifies current Commission 
practice, if the Commission authorizes the construction of facilities 
pursuant to section 3, the Commission is not prevented from granting 
authorization to another applicant under section 3 at the same general 
location.<SUP>30 Current Sec. 153.8 (filing of import/export contracts, 
rate schedules, etc.) is proposed to be deleted as obsolete.
---------------------------------------------------------------------------

    \30\ See, e.g., Tenneco Baja California Corporation, 75 FERC 
para. 61,192 (1996) and Pacific Interstate Offshore Company, 74 FERC 
para. 61,350 (1996).
---------------------------------------------------------------------------

5. Subpart C--Application for a Presidential Permit
    a. Section 153.15  Who Shall Apply. The existing heading prefacing 
current Secs. 153.10 through 153.12 is deleted and replaced with a more 
concise heading (Application for a Presidential Permit) substituted 
under a new subpart C of part 153. The Commission is proposing to 
redesignate current Sec. 153.10 as Sec. 153.15 and to divide proposed 
Sec. 153.15 into paragraphs (a) and (b) with individual headings.
    The Commission is proposing to use the same definition of person in 
paragraph (a) as is used in subpart B and is deleting the reference in 
current Sec. 153.10 to any ``person, firm or corporation.'' It is 
appropriate to use the same definition because the same entity that 
applies under subpart C to construct and operate border facilities 
would need to apply for authorization under subpart B. Proposed 
paragraph (b) cross-references the requirement to file simultaneously 
an application under subpart B for the siting or construction of 
facilities, deleting the current cross-reference to applications for 
authorization to import or export natural gas.
    b. Section 153.16  Contents of Application. The Commission is 
proposing to redesignate current Sec. 153.11 as Sec. 153.16, with a 
revised heading. Filing requirements for Presidential Permit 
applications stated in the first sentence of current Sec. 153.11 are 
deleted and relocated to new subpart D of part 153. Obsolete references 
to the payment of filing fees are deleted.
    Current informational requirements for filing an application for a 
Presidential Permit for the construction or modification of border 
facilities are virtually identical to the current informational 
requirements for applications under NGA section 3. Thus, to avoid 
duplication of regulatory text, filing requirements for applications 
for Presidential Permits are the same as those stated in subpart B for 
section 3 authorization. Proposed Sec. 153.16(a) states that an 
applicant for a Presidential Permit for the construction and operation 
of border facilities that complies with the informational filing 
requirements under subpart B is not required to satisfy separate filing 
requirements under subpart C.
    Accordingly, current Secs. 153.11(a)(1) and (a) (2) and the first 
part of paragraph (a)(3) are deleted as they duplicate the same 
provisions in proposed Sec. 153.7(a). The remainder of current 
Sec. 153.11(a)(3) is redesignated in proposed Sec. 153.8 (Exhibit A). 
Current Sec. 153.11(a)(4) is revised to update references to applicants 
``subventioned'' (subsidized) by a foreign government and is relocated 
to proposed Sec. 153.7(a)(3). Current Sec. 153.11(b), requiring an 
applicant to file a map, is deleted because it duplicates the same 
requirement in current Sec. 153.4 and proposed Sec. 153.8(a)(8) 
(Exhibit G).
    Current Sec. 153.11(c), concerning anti-competitive agreements, and 
Sec. 153.11(d), concerning permits granted by a foreign government, are 
revised to eliminate out-dated references to bundled gas service, 
``landing licenses,'' and import/export permits. These sections are 
redesignated as proposed Secs. 153.7(c)(1)(iii) and 153.7(b), 
respectively.
    Certain amendments to an existing Presidential Permit do not 
involve related section 3 applications because these amendments do not 
propose the construction or modification of import/export facilities. 
For example, an applicant may propose to revise articles of an existing 
Presidential Permit that deal with non-facilities issues, e.g., 
authorized design capacity, name of the Permittee, or whether the 
facility may be used both to import and export natural gas. Proposed 
Sec. 153.16(b) requires that applicant to provide information 
identifying itself pursuant to proposed Sec. 153.7(a) and to fully 
explain and justify its proposed amendment. This applicant would not be 
required to provide the remainder of information required by proposed 
Secs. 153.7 and 153.8, applicable to the construction of facilities.
    Current Sec. 153.12, authorizing the Commission to request such 
other

[[Page 5946]]

information in connection with an application as it may deem pertinent, 
is deleted. In its place, proposed Sec. 153.21(b) authorizes the 
Commission to direct the applicant to file such information as may be 
necessary to cure a deficient application.
    c. Section 153.17  Effectiveness of Presidential Permit. Proposed 
Sec. 153.17 codifies the Commission's existing practice of requiring a 
Permittee to accept an issued Presidential Permit by executing, with 
proof of proper authorization, the Testimony of Acceptance of the 
Presidential Permit. The Permittee would be required to file a copy of 
the executed Testimony of Acceptance with the Secretary prior to the 
start of construction.<SUP>31
---------------------------------------------------------------------------

    \31\ See MidCon Texas Pipeline Corporation, 77 FERC para. 61,205 
(1996).
---------------------------------------------------------------------------

6. Subpart D--Paper Media and Other Requirements
    a. Section 153.20  General Rule. The Commission proposes to 
relocate its current filing requirements for paper media in subpart D.
    b. Section 153.21  Conformity with Requirements. Proposed 
Sec. 153.21 states the requirement that an application must conform to 
the requirements of part 153.
    c. Section 153.22  Amendments and Withdrawals. Proposed Sec. 153.22 
applies the Commission's Rules of Practice and Procedure applicable to 
amending or withdrawing pleadings to amending or withdrawing an 
application under subpart B or subpart C of part 153.
    d. Section 153.23  Reporting Requirement. The NOPR would delete as 
obsolete the only post-authorization reporting requirement in current 
part 153.<SUP>32 Interstate pipelines are currently required to file 
operational information about facilities authorized under section 3 in 
their FERC Form No. 2 (annual report), FERC Format No. 567 (annual 
system flow diagram), and annual report of estimated peak capacity 
pursuant to 18 CFR 284.12.
---------------------------------------------------------------------------

    \32\ Current Sec. 153.8 (filing of import/export contracts and 
rate schedules pursuant to part 154 of the Commission's 
regulations).
---------------------------------------------------------------------------

    Commission regulations, however, do not require applicants which 
are not natural gas companies to file operational information with the 
Commission concerning facilities authorized under section 3.<SUP>33 
Accordingly, the Commission proposes in Sec. 153.23 to require 
applicants which are not otherwise required to file operating 
information concerning facilities authorized under section 3 with the 
Commission to report the completion of construction or modification, 
the date service commenced, and annually the continued operation of the 
import/export facilities.<SUP>34
---------------------------------------------------------------------------

    \33\ The Commission has imposed such reporting as a condition in 
individual section 3 proceedings. See, e.g., Yukon Pacific Company, 
L.P., 71 FERC para. 61,197 (1995) and EcoElectrica, L.P., 75 FERC 
para. 61,157 (1996).
    \34\ Effective November 13, 1995, the Commission eliminated its 
annual report of import/export volumes in FPC Form 14. See Final 
rule, Revisions to Uniform System of Accounts, Forms, Statements and 
Reporting Requirements for Natural Gas Companies, 60 FR 53019 
(October 11, 1995). The Commission eliminated FPC Form 14 because 
importers/exporters currently file quarterly reports with DOE/FE 
including the same volume and price information.
---------------------------------------------------------------------------

IV. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act (RFA) requires agencies to prepare 
certain statements, descriptions, and analyses of proposed rules that 
will have a significant economic impact on a substantial number of 
small entities.<SUP>35 The Commission is not required to make such 
analyses if a rule would not have such an effect.
---------------------------------------------------------------------------

    \35\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    The Commission does not believe that this rule would have such an 
impact on small entities. Most filing companies regulated by the 
Commission do not fall within the RFA's definition of small 
entity.<SUP>36 Further, the filing requirements of small entities are 
reduced by the rule. Therefore, the Commission certifies that this rule 
will not have a significant economic impact on a substantial number of 
small entities.
---------------------------------------------------------------------------

    \36\ 5 U.S.C. 601(3), citing to section 3 of the Small Business 
Act, 15 U.S.C. 632. Section 3 of the Small Business Act defines a 
``small-business concern'' as a business which is independently 
owned and operated and which is not dominant in its field of 
operation.
---------------------------------------------------------------------------

V. Environmental Statement

    The Commission excludes certain actions not having a significant 
effect on the human environment from the requirement to prepare an 
environmental assessment or an environmental impact statement.<SUP>37 
No environmental consideration is raised by the promulgation of a rule 
that is procedural or that does not substantially change the effect of 
legislation or regulations being amended.<SUP>38 The instant rule 
updates the part 153 regulations and does not substantially change the 
effect of the underlying legislation or the regulations being revised 
or eliminated. Accordingly, no environmental consideration is 
necessary.
---------------------------------------------------------------------------

    \37\ 18 CFR 380.4.
    \38\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

VI. Public Comment Procedures

    The Commission invites all interested persons to submit written 
comments on this NOPR.
    An original and 14 copies must be filed with the Commission no 
later than April 11, 1997. Comments must refer to Docket No. RM97-1-000 
and be submitted to the Office of the Secretary, Federal Energy 
Regulatory Commission, 888 First Street, NE, Washington, DC 20426. 
Additionally, comments should be submitted on computer diskette in 
WordPerfect 5.1/5.2 format (Dos or Windows version) or in ASCII format, 
with the name of the filer, Docket No. RM97-1-000, and the format used 
(WP or ASCII) on the outside of the diskette.
    All written submissions will be placed in the Commission's public 
file and will be available for public inspection, during regular 
business hours, at the Commission's Public Reference Room at 888 First 
Street, NE, Washington, DC 20426.

List of Subjects in 18 CFR Part 153

    Exports, Imports, Natural gas, Reporting and recordkeeping 
requirements.

    By direction of the Commission.
Lois D. Cashell,
Secretary.

    For the reasons set out in the preamble, the Commission proposes to 
revise 18 CFR part 153 to read as follows.

PART 153--APPLICATIONS FOR AUTHORIZATION TO CONSTRUCT, OPERATE, OR 
MODIFY FACILITIES USED FOR THE EXPORT OR IMPORT OF NATURAL GAS

Subpart A--General Provisions

Sec.
153.1  Purpose and scope.
153.2  Definitions.

Subpart B--Application Under Section 3

153.5  Who shall apply.
153.6  Time of filing.
153.7  Contents of application.
153.8  Required exhibits.
153.9  Transferability.
153.10  Authorization not exclusive.

Subpart C--Application for a Presidential Permit

153.15  Who shall apply.
153.16  Contents of application.
153.17  Effectiveness of Presidential Permit.

Subpart D--Paper Media and Other Requirements

153.20  General rule.
153.21  Conformity with requirements.
153.22  Amendments and withdrawals.
153.23  Reporting Requirements.

    Authority: 15 U.S.C. 717b, 717o; E.O. 10485, 3 CFR, 1949-1953 
Comp., p. 970, as

[[Page 5947]]

amended by E.O. 12038, 3 CFR, 1978 Comp., p. 136, DOE Delegation 
Order No. 0204-112, 49 FR 6684 (February 22, 1984).

Subpart A--General Provisions


Sec. 153.1  Purpose and scope.

    The purpose of this part is to implement the Commission's delegated 
authorities under section 3 of the Natural Gas Act and Executive Order 
10485, as amended by Executive Order 12038. Subpart B of this part 
establishes filing requirements an applicant must follow to obtain 
authorization under section 3 of the NGA for the siting, construction, 
operation, place of entry for imports or place of exit for exports. 
Subpart C of this part establishes filing requirements an applicant 
must follow to apply for a Presidential Permit, or an amendment to an 
existing Presidential Permit, for border facilities at the 
international boundary between the United States and Canada or Mexico.


Sec. 153.2  Definitions.

    (a) DOE/FE means the Department of Energy/Office of Fossil Energy 
or its successor office.
    (b) NBSIR means the National Bureau of Standards Information 
Report.
    (c) Person means an individual or entity as defined in 10 CFR 
590.102(m).

Subpart B--Application Under Section 3


Sec. 153.5  Who shall apply.

    (a) Applicant. Any person proposing to site, construct, operate, or 
modify facilities which are to be used for the export of natural gas 
from the United States to a foreign country or for the import of 
natural gas from a foreign country or to amend an existing 
authorization shall file with the Commission an application for 
authorization therefor under subpart B of this part and section 3 of 
the Natural Gas Act.
    (b) Cross-reference. Any person applying under paragraph (a) of 
this section to construct facilities at the borders of the United 
States and Canada or Mexico must also simultaneously apply for a 
Presidential Permit under subpart C of this part.


Sec. 153.6  Time of filing.

    An application filed pursuant to Sec. 153.5(a) shall be made 
simultaneous with or after the filing of any related applications with 
DOE/FE for exporting or importing natural gas, except where otherwise 
ordered by the Commission for good cause shown.


Sec. 153.7  Contents of application.

    Every application under subpart B of this part shall include, in 
the order indicated, the following:
    (a) Information regarding applicant. (1) The exact legal name of 
applicant;
    (2) The name, title, and post office address, telephone and 
facsimile numbers of the person to whom correspondence in regard to the 
application shall be addressed;
    (3) If a corporation, the state or territory under the laws of 
which the applicant was organized, and the town or city where 
applicant's principal office is located. If applicant is incorporated 
under the laws of, or authorized to operate in, more than one state, 
all pertinent facts should be stated. If applicant company is owned 
wholly or in part by any government entity, or directly or indirectly 
subsidized by any government entity; or, if applicant company has any 
agreement for such ownership or subsidization from any government, 
provide full details of ownership and/or subsidies.
    (b) Summary. A detailed summary of the proposal, including 
descriptions of the facilities utilized in the proposed export or 
import of natural gas; state, foreign, or other Federal governmental 
licenses or permits for the construction, operation, or modification of 
facilities in the United States, Canada, or Mexico; and the status of 
any state, foreign, or other Federal regulatory proceedings which are 
related to the proposal.
    (c) Statements. (1) A statement demonstrating that the proposal or 
proposed construction is not inconsistent with the public interest, 
including, where applicable, a demonstration that the proposal:
    (i) Will access new foreign supplies of natural gas and serve new 
market demand, enhance the reliability and flexibility of the 
applicant's pipeline system, the dependability of international energy 
trade, and will not impair transportation service to existing 
customers;
    (ii) Will not impair the ability of the applicant to render 
transportation service at reasonable rates to customers in the United 
States; and,
    (iii) will not involve any existing contract(s) between the 
applicant and a foreign government or person concerning the control of 
operations or rates for the delivery or receipt of natural gas which 
may restrict or prevent other United States companies from extending 
their activities in the same general area, with copies of such 
contracts.
    (2) A representation that the proposal will be used to render 
transportation services under part 284 of this chapter, private 
transportation, or service that is exempt from the provisions of the 
Natural Gas Act pursuant to sections 1(b) or 1(c) thereof.


Sec. 153.8  Required exhibits.

    (a) An application must include the following exhibits:
    (1) Exh. A. A certified copy of articles of incorporation, 
partnership or joint venture agreements, and by-laws of applicant; the 
amount and classes of capital stock; nationality of officers, 
directors, and stockholders, and the amount and class of stock held by 
each;
    (2) Exh. B. A detailed statement of the financial and corporate 
relationship existing between applicant and any other person or 
corporation;
    (3) Exh. C. A statement, including signed opinion of counsel, 
showing that the construction, operation, or modification of facilities 
for the export or the import of natural gas is within the authorized 
powers of applicant, that applicant has complied with laws and 
regulations of the state or states in which applicant operates;
    (4) Exh. D. If the proposal is for a pipeline interconnection to 
import or export natural gas, a copy of any construction and operation 
agreement between the applicant and the operator(s) of border 
facilities in the United States and Canada or Mexico;
    (5) Exh. E. If the proposal is to import or export LNG, evidence 
that an appropriate and qualified concern will properly and safely 
receive or deliver such LNG, including a report containing detailed 
engineering and design information. The Commission staff's ``Guidance 
Manual for Environmental Report Preparation'' may be obtained from the 
Commission's Office of Pipeline Regulation, 888 First Street, NE, 
Washington, DC 20426;
    (6) Exh. E-1. If the LNG import/export facility is to be located at 
a site in zones 2, 3, or 4 of the Uniform Building Code's Seismic Risk 
Map of the United States, or where there is a risk of surface faulting 
or ground liquefaction, a report on earthquake hazards and engineering. 
Guidelines are contained in ``Data Requirements for the Seismic Review 
of LNG Facilities,'' NBSIR 84-2833. This document may be obtained from 
the National Technical Information Service or the Commission's Office 
of Pipeline Regulation, 888 First Street, NE, Washington, DC 20426;
    (7) Exh. F. An environmental report as specified in Sec. 380.3 of 
this chapter. Refer to Commission staff's ``Guidance Manual for 
Environmental Report Preparation;'' and

[[Page 5948]]

    (8) Exh. G. A geographical map of a suitable scale and detail 
showing the physical location of the facilities to be utilized for the 
applicant's proposed export or import operations The map should 
indicate with particularity the ownership of such facilities at or on 
each side of the border between the United States and Canada or Mexico, 
if applicable.
    (b) The applicant may incorporate by reference any exhibit required 
by paragraph (a) of this section already on file with the Commission.


Sec. 153.9  Transferability.

    (a) Non-transferable. Authorizations under subpart B of this part 
and section 3 of the Natural Gas Act shall not be transferable or 
assignable. A Commission order granting such authorization shall 
continue in effect temporarily for a reasonable time in the event of 
the involuntary transfer of facilities used thereunder by operation of 
law (including such transfers to receivers, trustees, or purchasers 
under foreclosure or judicial sale) pending the making of an 
application for permanent authorization and decision thereon, provided 
notice is promptly given in writing to the Commission accompanied by a 
statement that the physical facts relating to operations of the 
facilities remains substantially the same as before the transfer and as 
stated in the initial application for such authorization.
    (b) Supplemental orders. The Commission also may make, at any time 
subsequent to the original order of authorization, after opportunity 
for hearing, such supplemental orders concerning the operation of the 
facilities as it may find necessary or appropriate.


Sec. 153.10  Authorization not exclusive.

    No authorization granted pursuant to subpart B of this part and 
section 3 of the Natural Gas Act shall be deemed to prevent the 
Commission from granting authorization under subpart B to any other 
person at the same general location, or to prevent any other person 
from making application for such authorization.

Subpart C--Application for a Presidential Permit.


Sec. 153.15  Who shall apply.

    (a) Applicant. Any person proposing to construct, operate, 
maintain, or connect facilities or to change the operation or 
maintenance of facilities at the borders of the United States and 
Canada or Mexico, for the export or import of natural gas to or from 
those countries, or to amend an existing Presidential Permit, shall 
file with the Commission an application for a Presidential Permit under 
subpart C of this part and Executive Order 10485, as amended by 
Executive Order 12038.
    (b) Cross-reference. Any person applying under paragraph (a) of 
this section for a Presidential Permit for the construction and 
operation of border facilities must also simultaneously apply for 
authorization under subpart B of this part.


Sec. 153.16  Contents of application.

    (a) Cross-reference. The submission of information under 
Secs. 153.7 and 153.8 of subpart B of this part shall be deemed 
sufficient for purposes of applying for a Presidential Permit or an 
amendment to an existing Presidential Permit under subpart C of this 
part for the construction and operation of border facilities.
    (b) Amendment Not Proposing Construction. An applicant proposing to 
amend the article(s) of an existing Presidential Permit (other than 
facilities aspects) must file information pursuant to Sec. 153.7(a) and 
a summary and justification of its proposal.


Sec. 153.17  Effectiveness of Presidential Permit.

    A Presidential Permit, once issued by the Commission, shall not be 
effective until it has been accepted by the highest authority of the 
Permittee, as indicated by Permittee's execution of a Testimony of 
Acceptance, and a certified copy of the accepted Presidential Permit 
and the executed Testimony of Acceptance has been filed with the 
Commission.

Subpart D--Paper Media and Other Requirements


Sec. 153.20  General rule.

    (a) Number of Copies. Applications under subpart B of this part 
must be submitted to the Commission in an original and 7 conformed 
paper copies. Applications under subpart C of this part must be 
submitted to the Commission in an original and 9 conformed paper 
copies.
    (b) Certification. All applications must be signed in compliance 
with Sec. 385.2005 of this chapter.
    (1) The signature on an application constitutes a certification 
that: the signer has read the filing signed and knows the contents of 
the paper copies; and, the signer possesses the full power and 
authority to sign the filing.
    (2) An application must be signed by one of the following:
    (i) The person on behalf of whom the application is made;
    (ii) An officer, agent, or employee of the governmental authority, 
agency, or instrumentality on behalf of which the filing is made; or,
    (iii) A representative qualified to practice before the Commission 
under Sec. 385.2101 of this chapter who possesses authority to sign.
    (c) Where to file. The paper copies and an accompanying transmittal 
letter must be submitted in one package to: Office of the Secretary, 
Federal Energy Regulatory Commission, Washington, DC 20426.


Sec. 153.21  Conformity with requirements.

    (a) General rule. Applications under subparts B and C must conform 
with the requirements of this part.
    (b) Rejection of applications. If an application does not conform 
to the requirements of this part, the Director of the Office of 
Pipeline Regulation will notify the applicant of all deficiencies. 
Deficient applications not amended within 20 days of the notice of 
deficiency, or such longer period as may be specified in the notice of 
deficiency, will be rejected by the Director of the Office of Pipeline 
Regulation as provided by Sec. 385.2001(b) of this chapter. Copies of a 
rejected application will be returned. An application which relates to 
an operation, service, or construction concerning which a prior 
application has been filed and rejected, shall be docketed as a new 
application. Such new application shall state the docket number of the 
prior rejected application.


Sec. 153.22  Amendments and withdrawals.

    Amendments to or withdrawals of applications must conform to the 
requirements of Secs. 385.215 and 385.216 of this chapter.


Sec. 153.23  Reporting requirements.

    Each person authorized under part 153 that is not otherwise 
required to file information concerning the start of construction or 
modification of import/export facilities, the completion of 
construction or modification, and the commencement of service must file 
such information with the Commission within 10 days after such event. 
Each such person must also report by March 1 of each year the estimated 
peak day capacity and actual peak day usage of its import/export 
facilities.

[FR Doc. 97-3199 Filed 2-7-97; 8:45 am]
BILLING CODE 6717-01-P


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