5940 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Proposed Rules

1Order 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).

is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under DOT

Regulatory Policies and Procedures (44

FR 11034; February 26, 1979); and (3)

does not warrant preparation of a

Regulatory Evaluation as the anticipated

impact is so minimal. Since this is a

routine matter that will only affect air

traffic procedures and air navigation, it

is certified that this proposed rule will

not have a significant economic impact

on a substantial number of small entities

under the criteria of the Regulatory

Flexibility Act.

List of Subjects in 14 CFR Part 71

Airspace, Incorporation by reference,

Navigation (air).

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me, the Federal

Aviation Administration proposes to

amend part 71 of the Federal Aviation

Regulations (14 CFR part 71) as follows:

PART 71—[AMENDED]

1. The authority citation for part 71

continues to read as follows:

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

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

1963 Comp., p. 389; 14 CFR 11.69.

§ 71.1 [Amended]

2. The incorporation by reference in

14 CFR 71.1 of the Federal Aviation

Administration Order 7400.9D, Airspace

Designations and Reporting Points,

dated September 4, 1996, and effective

September 16, 1996, is amended as

follows:

Paragraph 6005 Class E airspace areas

extending upward from 700 feet or more

above the surface of the earth.

* * * * *

AGL MI E5 Detroit, MI [Revised]

That airspace extending upward from 700

feet above the surface bounded by a line

beginning at lat. 43°00′00′′N, long.

82°25′00′′W; on the Canadian boundary to

lat. 43°04′00′′N, long. 82°30′00′′W; to lat.

42°56′00′′N, long. 83°00′00′′W; to lat.

42°45′00′′N, long. 83°50′00′′W; to lat.

42°30′00′′N, long. 83°50′00′′W; to lat.

42°10′00′′N, long 84°00′00′′W; to lat.

42°00′00′′N, long. 83°30′00′′W; thence east

along the 42nd parallel to the Canadian

boundary, thence along the Canadian

boundary to point of beginning.

* * * * *

Issued in Des Plaines, Illinois on January

17, 1997.

Maureen Woods,

Manager, Air Traffic Division.

[FR Doc. 97–3232 Filed 2–7–97; 8:45 am]

BILLING CODE 4910–13–M

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.

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 1947.1

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
Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Proposed Rules 5941

2 15 U.S.C. 717b.

3Executive Order 10485, 3 CFR, 1949–1953

Comp., p. 970, as amended by Executive Order

12038, 3 CFR 1978 Comp., p. 136.

4 44 U.S.C. 3507(d).

5The 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.

6 5 CFR 1320.11.

7On 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.

3 of the Natural Gas Act (NGA) 2 and

Executive Order 10485, as amended,

regarding the construction and

operation of facilities for the import and

export of natural gas.3

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 1995.4

FERC identifies the information

provided under part 153 as FERC–539.

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:

Data collection Number of

respondents

Number of

responses

Hours per

response

Total annual

hours

FERC–539 ........................................................................................................................ 12 12 200 2,400

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.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.

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.6

Accordingly, pursuant to OMB

regulations, the Commission is

providing notice of its proposed

information collection to OMB.7

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 forprofit, 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,
5942 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Proposed Rules

8See Distrigas Corporation v. FPC, 495 F.2d 1057

(D.C. Cir. 1974).

9See 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).

12Both delegation orders were published at 49 FR

6684 (February 22, 1984).

13Effective 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).

14The 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.

15See National Steel Corporation, 45 FERC

¶ 61,100 (1988).

16 Great Lakes Transmission Limited Partnership,

76 FERC ¶ 61,148 (1996).

17These 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.

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:mmiller@ferc.fed.us].

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.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.

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.’’ 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.10

During this transition period, however,

‘‘the lines of jurisdiction and authority

between the two agencies [were] not

entirely clear.’’ 11

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.12 These

delegation orders allocated regulatory

functions concerning the import and

export of natural gas to the Commission

and DOE/Economic Regulatory

Administration (ERA).13 DOE and the

Commission continue to share

responsibility for determining natural

gas import/export issues under these

currently applicable delegation orders.

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.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.

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.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.16

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.’’ 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.

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,
Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Proposed Rules 5943

18See Panhandle Eastern Pipe Line Company, 62

FERC ¶ 61,190 (1993).

19See EcoElectrica, L.P., 75 FERC ¶ 61,157 (1996),

Yukon Pacific Corporation 39 FERC ¶61,216 (1987),

and Phillips Petroleum Company, 37 FPC 777

(1967).

20Thus, 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.

21Under 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.

22The 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.

24Filing and Reporting Requirements for

Interstate Natural Gas Company Rate Schedules and

Tariffs, 60 FR 3111 (January 13, 1995).

25Revisions to Uniform System of Accounts,

Forms, Statements, and Reporting Requirements for

Natural Gas Companies, 60 FR 3141 (January 13,

1995). 26 10 CFR 590.102(m).

must file to amend its Presidential

Permit.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.19

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.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.

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.21

Proposed § 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.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.23

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 24 and RM95–4–000,25 the

Commission will solicit participation of

the industry and other users of filed

information in formulating final

electronic filing instructions.

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

§ 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 § 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.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 § 153.1(a) with a

comprehensive listing of potential

applicants.

The proposed new definition would

by its own terms automatically

incorporate any future changes by DOE
5944 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Proposed Rules

27The 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).

28The informational filing requirements in

proposed §§ 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.

29Section 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 ¶ 61,366 (1983) (LDC); Interenergy Sheffield

Processing, 78 FERC ¶61,085 (1997) (gathering);

and Havre Pipeline Company, et al., 71 FERC

¶ 61,292) (1995) (intrastate pipeline/gatherer

engaging in foreign commerce).

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.27

4. Subpart B—Application under

Section 3

a. Section 153.5 Who Shall Apply.

Proposed § 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 § 153.1(b) is rewritten as

proposed § 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

§ 153.2 and are included in new subpart

D to avoid duplication of regulatory

text.

The portion of the third sentence of

current § 153.2 stating the time of

making applications for the import and

export of natural gas is deleted. In its

place, proposed § 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 § 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 § 153.7

eliminates obsolete references in the

text and heading of current § 153.3 to

information concerning import or export

applications and to filing fees.28

Informational requirements in current

§§ 153.3(a) through 153.3(c) identify the

applicant. These informational

requirements are revised and retained in

proposed § 153.7(a)(1) through (a)(3)

with a paragraph heading added. The

informational requirements in current

§§ 153.3(d) through 153.3(f) are deleted

because they are associated with the

import and export of natural gas.

The requirement in current paragraph

153.3(g) to describe proposed facilities

is retained, expanded, and redesignated

as proposed § 153.7(b) with a separate

paragraph heading added. The

information required by § 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 § 153.7(b) requires the

applicant to include a summary of its

proposal. In addition, proposed

§ 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 § 153.11(d) applicable to

Presidential Permits). The reference in

current § 153.11(d) to permits in

connection with the import/export of

natural gas is deleted. Proposed

§ 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 § 153.7(c) requires the

applicant to file two statements with its

application. One statement reflects a

revision of the requirement in current

§ 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

§ 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 § 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 § 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 § 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 § 153.7(c)(iii) revises the

requirement to file a statement

describing certain contracts in current

§ 153.11(c) applicable to Presidential

Permits. Proposed § 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

§ 153.10 which provides that section 3

authorizations are not exclusive to the

holder.

Proposed § 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.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 § 153.5

(other information) is redesignated as

proposed § 153.21(b)(rejection of

applications), and § 153.5 is deleted.

d. Section 153.8 Required Exhibits.

The Commission proposes to
Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Proposed Rules 5945

30See, e.g., Tenneco Baja California Corporation,

75 FERC ¶ 61,192 (1996) and Pacific Interstate

Offshore Company, 74 FERC ¶ 61,350 (1996).

redesignate current § 153.4 as proposed

§ 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

§ 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 § 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 § 153.6 as § 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 § 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 § 153.7 as § 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 § 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.30 Current

§ 153.8 (filing of import/export

contracts, rate schedules, etc.) is

proposed to be deleted as obsolete.

5. Subpart C—Application for a

Presidential Permit

a. Section 153.15 Who Shall Apply.

The existing heading prefacing current

§§ 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 § 153.10 as

§ 153.15 and to divide proposed

§ 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

§ 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 crossreference to applications for

authorization to import or export

natural gas.

b. Section 153.16 Contents of

Application. The Commission is

proposing to redesignate current

§ 153.11 as § 153.16, with a revised

heading. Filing requirements for

Presidential Permit applications stated

in the first sentence of current § 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 § 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 §§ 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 § 153.7(a).

The remainder of current § 153.11(a)(3)

is redesignated in proposed § 153.8

(Exhibit A). Current § 153.11(a)(4) is

revised to update references to

applicants ‘‘subventioned’’ (subsidized)

by a foreign government and is relocated

to proposed § 153.7(a)(3). Current

§ 153.11(b), requiring an applicant to

file a map, is deleted because it

duplicates the same requirement in

current § 153.4 and proposed

§ 153.8(a)(8) (Exhibit G).

Current § 153.11(c), concerning anticompetitive agreements, and

§ 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

§§ 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 § 153.16(b)

requires that applicant to provide

information identifying itself pursuant

to proposed § 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

§§ 153.7 and 153.8, applicable to the

construction of facilities.

Current § 153.12, authorizing the

Commission to request such other
5946 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Proposed Rules

31See MidCon Texas Pipeline Corporation, 77

FERC ¶ 61,205 (1996).

32Current § 153.8 (filing of import/export

contracts and rate schedules pursuant to part 154

of the Commission’s regulations).

33The Commission has imposed such reporting as

a condition in individual section 3 proceedings.

See, e.g., Yukon Pacific Company, L.P., 71 FERC

¶ 61,197 (1995) and EcoElectrica, L.P., 75 FERC

¶ 61,157 (1996).

34Effective 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.

35 5 U.S.C. 601–612.

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.

37 18 CFR 380.4.

38 18 CFR 380.4(a)(2)(ii).

information in connection with an

application as it may deem pertinent, is

deleted. In its place, proposed

§ 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 § 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.31

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 § 153.21 states

the requirement that an application

must conform to the requirements of

part 153.

c. Section 153.22 Amendments and

Withdrawals. Proposed § 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

153.32 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.

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 3.33 Accordingly, the

Commission proposes in § 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.34

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.35

The Commission is not required to make

such analyses if a rule would not have

such an effect.

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.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.

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.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.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.

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
Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Proposed Rules 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

§ 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.

§ 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

§ 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.

§ 153.6 Time of filing.

An application filed pursuant to

§ 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.

§ 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.

§ 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 § 380.3 of this chapter.

Refer to Commission staff’s ‘‘Guidance

Manual for Environmental Report

Preparation;’’ and
5948 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Proposed Rules

(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.

§ 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.

§ 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.

§ 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.

§ 153.16 Contents of application.

(a) Cross-reference. The submission of

information under §§ 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 § 153.7(a) and a summary and

justification of its proposal.

§ 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

§ 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

§ 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

§ 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.

§ 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 § 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.

§ 153.22 Amendments and withdrawals.

Amendments to or withdrawals of

applications must conform to the

requirements of §§ 385.215 and 385.216

of this chapter.

§ 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