37658 Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Proposed Rules 

specified in the service information 

described previously. 

Costs of Compliance 

We estimate that this proposed AD 

would affect 883 airplanes of U.S. 

registry. We also estimate that it would 

take 26 work-hours per product to 

comply with this proposed AD. The 

average labor rate is $80 per work-hour. 

Required parts would cost up to $8,496 

per product. Based on these figures, we 

estimate the cost of this proposed AD to 

the U.S. operators to be up to 

$9,338,608, or $10,576 per product. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would not have a 

substantial direct effect on the States, on 

the relationship between the national 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979), and 

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

You can find our regulatory 

evaluation and the estimated costs of 

compliance in the AD Docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by adding 

the following new AD: 

Boeing: Docket No. FAA–2009–0657; 

Directorate Identifier 2009–NM–048–AD. 

Comments Due Date 

(a) We must receive comments by 

September 14, 2009. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Boeing Model 737– 

600, –700, –700C, –800, –900, and –900ER 

series airplanes, certificated in any category; 

as identified in Boeing Service Bulletin 737– 

28–1272, dated October 31, 2008. 

Subject 

(d) Air Transport Association (ATA) of 

America Code 28: Fuel. 

Unsafe Condition 

(e) This AD requires replacing engine fuel 

shutoff valves for the left and right main 

tanks. This AD results from a report of a 

failed engine start, which was caused by an 

internally fractured engine fuel shutoff valve. 

We are issuing this AD to prevent the failure 

of the valve in the closed position, open 

position, or partially open position, which 

could result in engine fuel flow problems and 

possible uncontrolled fuel leak or fire. 

Compliance 

(f) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Replacement of the Engine Fuel Spar Valve 

Body of the Left and Right Wing Main Tanks 

(g) Within 60 months after the effective 

date of this AD: Replace the engine fuel spar 

valve bodies of the left and right wing main 

tanks in accordance with the 

Accomplishment Instructions of Boeing 

Service Bulletin 737–28–1272, dated October 

31, 2008. 

Note 1: Boeing Service Bulletin 737–28– 

1272, dated October 31, 2008, refers to ITT 

Aerospace Controls Service Bulletin 

125334D–28–02, dated August 27, 2008, as 

an additional source of service information 

for modifying the valve body assembly. 

Parts Installation 

(h) As of the effective date of this AD, no 

person may install any engine fuel shutoff 

valve with ITT Aerospace Controls part 

number 125334D–1 (Boeing part number 

S343T003–40) on any airplane at the spar 

valve location. A valve that has been 

modified in accordance with Boeing Service 

Bulletin 737–28–1272, dated October 31, 

2008, to the new ITT 125334D–2 part number 

(Boeing part number S343T003–67) may be 

installed at the spar valve location. 

(i) As of the effective date of this AD, no 

valve with ITT Aerospace Controls part 

number 125334D–1 (Boeing part number 

S343T003–40) that has been removed from 

the spar location may be reinstalled on any 

airplane in any location unless it has been 

modified in accordance with Boeing Service 

Bulletin 737–28–1272, dated October 31, 

2008, to the new ITT 125334D–2 part number 

(Boeing part number S343T003–67). 

Alternative Methods of Compliance 

(AMOCs) 

(j)(1) The Manager, Seattle Aircraft 

Certification Office, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

Send information to ATTN: Samuel Spitzer, 

Aerospace Engineer, Propulsion Branch, 

ANM–140S, FAA, Seattle Aircraft 

Certification Office, 1601 Lind Avenue, SW., 

Renton, Washington 98057–3356; telephone 

(425) 917–6510; fax (425) 917–6590. Or, email information to 9–ANM–Seattle-ACO– 

AMOC–Requests@faa.gov. 

(2) To request a different method of 

compliance or a different compliance time 

for this AD, follow the procedures in 14 CFR 

39.19. Before using any approved AMOC on 

any airplane to which the AMOC applies, 

notify your principal maintenance inspector 

(PMI) or principal avionics inspector (PAI), 

as appropriate, or lacking a principal 

inspector, your local Flight Standards District 

Office. The AMOC approval letter must 

specifically reference this AD. 

Issued in Renton, Washington, on July 13, 

2009. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E9–17932 Filed 7–28–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 284 

[Docket No. RM09–2–000] 

Contract Reporting Requirements of 

Intrastate Natural Gas Companies 

Issued July 16, 2009. 

AGENCY: Federal Energy Regulatory 

Commission, DOE. 

ACTION: Notice of proposed rulemaking. 

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Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Proposed Rules 37659 

1 15 U.S.C. 3372. 

2Section 1(c) of the NGA exempts from the 

Commission’s NGA jurisdiction pipelines which 

transport gas in interstate commerce if (1) they 

receive natural gas at or within the boundary of a 

State, (2) all the gas is consumed within that State, 

and (3) the pipeline is regulated by a State 

Commission. This exemption is referred to as the 

Hinshaw exemption after the Congressman who 

introduced the bill amending the NGA to include 

§ 1(c). See ANR Pipeline Co. v. Federal Energy 

Regulatory Comm’n, 71 F.3d 897, 898 (1995) 

(briefly summarizing the history of the Hinshaw 

exemption). 

3 15 U.S.C. 3371(c). 

4EPGT Texas Pipeline, 99 FERC ¶ 61,295, at 

62,252–62,253 (2002). 

5Certain Transportation, Sales, and Assignments 

by Pipeline Companies not Subject to Commission 

Jurisdiction Under Section 1(c) of the Natural Gas 

Act, Order No. 63, FERC Stats. & Regs. ¶ 30,118, 

at 30,824–25 (1980). 

SUMMARY: The Commission is proposing 

to revise its contract reporting 

requirements for those natural gas 

pipelines that fall under the 

Commission’s jurisdiction pursuant to 

section 311 of the Natural Gas Policy 

Act or section 1(c) of the Natural Gas 

Act. The Commission is proposing to 

require the existing annual § 284.126(b) 

transactional reports to be filed on a 

quarterly basis, require that the reports 

include certain additional types of 

information and cover storage 

transactions as well as transportation 

transactions, establish a procedure for 

the § 284.126(b) reports to be filed in a 

uniform electronic format and posted on 

the Commission’s Web site, and hold 

that those reports must be public and 

may not be filed with information 

redacted as privileged. 

DATES: Comments are due October 27, 

2009. 

ADDRESSES: You may submit comments, 

identified by docket number, by any of 

the following methods: 

• Agency Web Site: http:// 

www.ferc.gov. Documents created 

electronically using word processing 

software should be filed in native 

applications or print-to-PDF format and 

not in a scanned format. 

• Mail/Hand Delivery: Commenters 

unable to file comments electronically 

must mail or hand deliver an original 

and 14 copies of their comments to: 

Federal Energy Regulatory Commission, 

Secretary of the Commission, 888 First 

Street, NE., Washington, DC 20426. 

Instructions: For detailed instructions 

on submitting comments and additional 

information on the rulemaking process, 

see the Comment Procedures Section of 

this document. 

FOR FURTHER INFORMATION CONTACT: 

Vince Mareino (Legal Information), 

Office of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 

20426, (202) 502–6167, 

Vince.Mareino@ferc.gov. 

Julie Parsons (Technical Information), 

Office of Energy Markets Regulation, 

Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426, (202) 502– 

8298, Julie.Parsons@ferc.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

Paragraph 

No. 

I. Background ............................................................................................................................................................................................ 2 

A. Current Regulations ...................................................................................................................................................................... 2 

B. Petition and Notice of Inquiry ..................................................................................................................................................... 9 

C. Industry Comments on Notice of Inquiry ................................................................................................................................... 12 

II. Discussion ............................................................................................................................................................................................ 16 

A. Report Frequency and Content .................................................................................................................................................... 18 

B. Online Posting .............................................................................................................................................................................. 28 

C. Confidentiality Policy ................................................................................................................................................................... 30 

D. Miscellaneous Issues .................................................................................................................................................................... 33 

III. Regulatory Requirements ................................................................................................................................................................... 35 

A. Information Collection Statement ............................................................................................................................................... 35 

B. Environmental Analysis ............................................................................................................................................................... 38 

IV. Regulatory Flexibility Act [Analysis or Certification] ...................................................................................................................... 39 

V. Comment Procedures ........................................................................................................................................................................... 41 

VI. Document Availability ....................................................................................................................................................................... 45 

Notice of Proposed Rulemaking 

Issued July 16, 2009. 

1. The Commission is proposing to 

modify its contract reporting 

requirements for (1) intrastate pipelines 

providing interstate services pursuant to 

section 311 of the Natural Gas Policy 

Act of 1978 (NGPA) 1 and (2) Hinshaw 

pipelines providing interstate services 

subject to the Commission’s Natural Gas 

Act (NGA) jurisdiction pursuant to 

blanket certificates issued under 

§ 284.224 of the Commission’s 

regulations.2 First, the Commission 

proposes to require intrastate and 

Hinshaw pipelines to file quarterly 

reports of all transportation and storage 

transactions. Second, the Commission 

proposes to require that the reports 

include certain additional types of 

information not currently reported. 

Third, the Commission proposes to 

establish a procedure for the reports to 

be filed in a uniform electronic format 

and posted on the Commission’s Web 

site. Fourth, the Commission proposes 

to require that reports be public and not 

filed with information redacted as 

privileged. These proposals are 

intended to improve market 

transparency, without making it unduly 

burdensome for intrastate and Hinshaw 

pipelines to participate in interstate 

markets. 

Background 

A. Current Regulations 

2. NGPA section 311 authorizes the 

Commission to allow intrastate 

pipelines to transport natural gas ‘‘on 

behalf of’’ interstate pipelines or local 

distribution companies served by 

interstate pipelines ‘‘under such terms 

and conditions as the Commission may 

prescribe.’’ 3 NGPA § 601(a)(2) exempts 

transportation service authorized under 

NGPA section 311 from the 

Commission’s NGA jurisdiction. 

Congress adopted these provisions in 

order to eliminate the regulatory barriers 

between the intrastate and interstate 

markets and to promote the entry of 

intrastate pipelines into the interstate 

market. Such entry eliminates the need 

for duplication of facilities between 

interstate and intrastate pipelines.4

Shortly after the adoption of the NGPA, 

the Commission authorized Hinshaw 

pipelines to apply for NGA section 7 

certificates authorizing them to 

transport natural gas in interstate 

commerce in the same manner as 

intrastate pipelines may do under NGPA 

section 311.5

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6See 18 CFR 284.7(b), 284.9(b) and 284.122. 

7Associated Gas Distributors v. FERC, 824 F.2d 

981, 1002–1003 (D.C. Cir. 1987) (AGD); Mustang 

Energy Corp. v. Federal Energy Regulatory Comm’n, 

859 F.2d 1447, 1457 (10th Cir. 1988), cert. denied, 

490 U.S. 1019 (1988); see also EPGT Texas Pipeline, 

99 FERC ¶ 61,295 (2002). 

8Regulation of Natural Gas Pipelines After Partial 

Wellhead Decontrol, Order No. 436, FERC Stats. & 

Regs. ¶ 30,665, at 31,502 (1985). 

9Pipeline Service Obligations, and Revisions to 

Regulations Governing Self-Implementing 

Transportation Under Part 284 of the Commission’s 

Regulations; Regulation of Natural Gas Pipelines 

After Partial Wellhead Decontrol, Order No. 636–B, 

61 FERC ¶ 61,272, at 61,992 n.26 (1992), order on 

reh’g, 62 FERC ¶ 61,007 (1993), aff’d in part and 

remanded in part sub nom. United Distribution Cos. 

v. FERC, 88 F.3d 1105 (D.C. Cir. 1996), order on 

remand, Order No. 636–C, 78 FERC ¶ 61,186 (1997). 

10Regulation of Short-Term Natural Gas 

Transportation Services and Regulation of 

Interstate Natural Gas Transportation Services, 

Order No. 637, FERC Stats. & Regs. ¶ 31,091, 

clarified, Order No. 637–A, FERC Stats. & Regs. 

¶ 31,099, reh’g denied, Order No. 637–B, 92 FERC 

¶ 61,062 (2000), aff’d in part and remanded in part 

sub nom. Interstate Natural Gas Ass’n of America 

v. FERC, 285 F.3d 18 (D.C. Cir. 2002), order on 

remand, 101 FERC ¶ 61,127 (2002), order on reh’g, 

106 FERC ¶ 61,088 (2004), aff’d sub nom. American 

Gas Ass’n v. FERC, 428 F.3d 255 (D.C. Cir. 2005). 

3. Subpart C of the Commission’s Part 

284 open access regulations (18 CFR 

284.121–126) implements the 

provisions of NGPA section 311 

concerning transportation by intrastate 

pipelines. Section 284.224 of the 

regulations provides for the issuance of 

blanket certificates to Hinshaw 

pipelines to provide open access 

transportation service ‘‘to the same 

extent that, and in the same manner’’ as 

intrastate pipelines are authorized to 

perform such service by Subpart C. The 

Part 284, Subpart C, regulations require 

that intrastate pipelines performing 

interstate service under NGPA section 

311 must do so on an open access 

basis.6 However, consistent with the 

NGPA’s goal of encouraging intrastate 

pipelines to provide interstate service, 

the Commission has not imposed on 

intrastate pipelines all of the Part 284 

requirements imposed on interstate 

pipelines.7 For example, when the 

Commission first adopted the Part 284 

open access regulations in Order No. 

436, the Commission exempted 

intrastate pipelines from the 

requirement that they offer open access 

service on a firm basis.8 The 

Commission found that requiring 

intrastate pipelines to offer firm service 

to out-of-state shippers could discourage 

them from providing any interstate 

service, because such a requirement 

could progressively turn the intrastate 

pipeline into an interstate pipeline 

against its will and against the will of 

the responsible State authorities. 

Similarly, Order No. 636–B exempted 

intrastate pipelines from the 

requirements of Order No. 636.9 Those 

requirements included capacity release, 

electronic bulletin boards (now Internet 

Web sites), and flexible receipt and 

delivery points. 

4. The Commission currently has less 

stringent transactional reporting 

requirements for NGPA section 311 

intrastate pipelines and Hinshaw 

pipelines, than for interstate pipelines. 

In Order No. 637,10 the Commission 

revised the reporting requirements for 

interstate pipelines in order to provide 

more transparent pricing information 

and to permit more effective monitoring 

for the exercise of market power and 

undue discrimination. As adopted by 

Order No. 637, § 284.13(b) requires 

interstate pipelines to post on their 

Internet Web sites basic information on 

each transportation and storage 

transaction with individual shippers, 

including revisions to a contract, no 

later than the first nomination under a 

transaction. This information includes: 

• The name of the shipper; 

• The contract number (for firm 

service); 

• The rate charged; 

• The maximum rate; 

• The duration (for firm service); 

• The receipt and delivery points and 

zones covered; 

• The quantity of natural gas covered; 

• Any special terms or details, such 

as any deviations from the tariff; 

• Whether any affiliate relationship 

exists. 

5. Section 284.13(c) of the 

Commission’s regulations also requires 

interstate pipelines to file with the 

Commission on the first business day of 

each calendar quarter an index of its 

firm transportation and storage 

customers and to publish the same 

information on their Web sites. The 

information required to be included in 

the Index of Customers does not include 

the rates paid by the customers. Section 

284.13(e) requires interstate pipelines to 

file semi-annual reports of their storage 

injection and withdrawal activities, 

including the identities of the 

customers, the volumes injected into 

and withdrawn from storage for each 

customer and the unit charge and total 

revenues received. 

6. Order No. 637 did not modify the 

reporting requirements for NGPA 

section 311 intrastate pipelines and 

Hinshaw pipelines provided in 

§ 284.126(c) of the Commission’s 

regulations. Section 284.126(b) of the 

regulations requires NGPA section 311 

and Hinshaw pipelines to file with the 

Commission annual reports of their 

transportation transactions, but not their 

storage transactions. Those reports must 

include the following information: 

• The name of the shipper receiving 

transportation service; 

• The type of service performed (i.e., 

firm or interruptible); 

• The total volumes transported for 

the shipper, including for firm service a 

separate statement of reservation and 

usage quantities; 

• Total revenues received for the 

shipper, including for firm service a 

separate statement of reservation and 

usage revenues. 

7. Unlike § 284.13(b), § 284.126(b) 

does not require intrastate pipelines to 

include in these reports the rate charged 

under each contract, the duration of the 

contract, the receipt and delivery points 

and zones or segments covered by each 

contract, whether the contract includes 

any special terms and conditions, and 

whether there is an affiliate relationship 

between the pipeline and the shipper. 

8. Section 284.126(c) requires section 

311 intrastate pipelines and Hinshaw 

pipelines to file a semi-annual report of 

their storage activity within 30 days of 

the end of each complete storage and 

injection season. This requirement is 

substantially the same as the § 284.13(e) 

requirement that interstate pipelines file 

such semi-annual reports of their 

storage activity. 

B. Petition and Notice of Inquiry 

9. In September 2008, an interstate 

storage provider with market-based 

rates, SG Resources Mississippi, L.L.C. 

(SGRM) filed a request for waiver of the 

§§ 284.13(b)(1)(iii) and (b)(2)(ii) 

requirements that interstate pipelines 

post the rates charged in firm and 

interruptible transactions no later than 

first nomination for service. SGRM 

requested the waiver for both itself and 

all interstate storage providers with 

market-based rates. It contended that the 

mandatory disclosure of commercially 

sensitive pricing information provides 

prospective customers and competitors, 

such as NGPA section 311 intrastate 

storage providers that are only subject to 

semi-annual reporting requirements, 

with an unfair competitive advantage. 

SGRM also stated that a number of the 

NGPA section 311 storage providers 

submit their semi-annual storage reports 

subject to a request for privileged 

treatment pursuant to § 388.112 of the 

Commission’s regulations. 

10. In response, in November 2008 the 

Commission issued an order denying 

the request for waiver and the 

alternative petition for a rulemaking 

proceeding. The SGRM order held that 

the existing posting requirements for 

interstate pipelines are necessary to 

provide shippers with the price 

transparency they need to make 

informed decisions, and the ability to 

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11SG Resources Mississippi, L.L.C., 125 FERC 

¶ 61,191 (2008) (SGRM). 

12 15 U.S.C. § 717c(c). 

13Contract Reporting Requirements of Intrastate 

Natural Gas Companies, Notice of Inquiry, FERC 

Stats & Regs. ¶ 35,559 (2008). 

14See, e.g., Comments of Arkansas Oklahoma Gas 

Corporation (AOG), Atmos Pipeline Texas (Atmos), 

Copano Energy, LLC (Copano), Cranberry Pipeline 

Corporation (Cranberry), DCP Midstream, LLC 

(DCP), Enogex LLC (Enogex), GPA, Jefferson Island 

Storage & Hub (Jefferson), and TPA. 

15See, e.g., Comments of Atmos, DCP, Jefferson, 

Niska Gas Storage LLC (Niska), and the TPA. 

16See GPA Comments at 2–5. 

17See, e.g., Comments of the AGA, Duke Energy 

Ohio/Duke Energy Kentucky (Duke), Niska, 

Northwest Natural Gas Company (NW Natural), and 

Pacific Gas and Electric Company (PG&E). 

18Pipeline Posting Requirements under Section 

23 of the Natural Gas Act, Order No. 720, 73 FR 

73494 (December 2, 2008) FERC Stats & Regs. 

¶ 31,283 (2008). 

monitor transactions for undue 

discrimination and preference.11 The 

Commission also found that the 

requested exemption would be contrary 

to NGA section 4(c)’s requirement that 

‘‘every natural gas company * * * keep 

open * * * for public inspection * * * 

all rates.’’ 12

11. Contemporaneously with the 

SGRM order, the Commission issued a 

Notice of Inquiry (NOI), requesting 

comments on whether the Commission 

should impose additional reporting 

requirements on NGPA section 311 

intrastate pipelines and on Hinshaw 

pipelines.13 The NOI stated that the 

Commission was interested in exploring 

(1) whether the disparate reporting 

requirements for interstate and NGPA 

section 311 and Hinshaw pipelines have 

an adverse competitive effect on the 

interstate pipelines and (2) if so, 

whether the Commission should modify 

the posting requirements for section 311 

intrastate pipelines and Hinshaw 

pipelines in order to make them more 

comparable to the § 284.13(b) posting 

requirements for interstate pipelines. 

Accordingly, the Commission sought 

comments to assist it in evaluating 

whether changes in the Commission’s 

posting requirements should be 

considered in order to remove any 

competitive disadvantage for interstate 

pipelines, as compared to intrastate 

pipelines providing interstate 

transportation and storage services 

under section 311 of the NGPA and to 

Hinshaw pipelines providing such 

service pursuant to a § 284.224 blanket 

certificate. 

C. Industry Comments on Notice of 

Inquiry 

12. A total of eighteen parties filed 

comments on the NOI. Fourteen of those 

represented NGPA section 311 or 

Hinshaw pipelines or their advocacy 

associations. 

13. Seven of the section 311 and 

Hinshaw pipelines, along with the Gas 

Processors Association (GPA) and the 

Texas Pipeline Association (TPA), 

completely oppose any change in the 

existing reporting requirements.14 They 

argue that imposing additional 

burdensome reporting requirements on 

section 311 and Hinshaw pipelines 

would be inconsistent with Congress’ 

intent of allowing intrastate pipelines to 

participate in the interstate pipeline grid 

without unduly burdensome regulatory 

requirements. For example, they argue 

that the intrastate and Hinshaw 

pipelines would have to invest in 

additional information technology and 

personnel in order to comply with the 

§ 284.13 requirement that pipelines post 

the information on an Internet Web site 

in downloadable file formats. They also 

maintain they already file enough 

information with other State and 

Federal agencies. Any further filings, 

they claim, would place them at a 

competitive disadvantage against 

intrastate-only pipelines, who are often 

allowed to keep confidential the 

identity of their shippers and the 

agreed-upon prices.15 Moreover, they 

state that they generally do not compete 

for the same customers as interstate 

pipelines, arguing that they generally 

feed into interstate pipelines, rather 

than running parallel and competing 

with them. The GPA also suggested that 

the Commission lacks jurisdiction to 

reform the reporting requirements.16

14. The remaining section 311 and 

Hinshaw commenters, including the 

American Gas Association (AGA), also 

oppose changing the current reporting 

requirements, and make many of the 

same arguments as are summarized 

above.17 However, these commenters 

suggested that, if the Commission 

believes increased reporting is 

necessary, it could consider increasing 

the frequency of the existing reports to 

quarterly and to hold such reports to be 

fully public. This more limited change 

in the current reporting requirements 

would address perhaps their primary 

concern: the cost of having to upgrade 

their existing information technology 

systems in order to maintain the 

necessary Internet Web site. If the 

Commission were to require reports 

more frequently than quarterly, these 

commenters support an exemption for 

smaller intrastate and Hinshaw 

pipelines. Several commenters propose 

such an exemption apply to intrastate 

and Hinshaw pipelines whose average 

natural gas deliveries over the previous 

three years did not exceed 50 million 

MMBtu, consistent with the exemption 

from the Order No. 720 requirement that 

non-NGA pipelines report scheduled 

gas flows.18

15. The other four commenters were 

an interstate pipeline (Tres Palacios), a 

company owning both interstate and 

NGPA section 311 intrastate storage 

providers (Enstor), a producer/marketer 

(Apache), and the American Public Gas 

Association (APGA). They contend that 

the Commission should extend the 

§ 284.13 interstate pipeline reporting 

requirements to intrastate and Hinshaw 

pipelines. They assert that applying the 

same reporting requirements to all 

pipelines performing interstate service 

is both a matter of fairness and a 

practical solution to the discrimination 

and anti-competitive practices currently 

afflicting the market. Enstor states that 

in order to fully equalize the reporting 

requirements for interstate pipelines 

and intrastate and Hinshaw pipelines, 

the Commission must impose tariff 

filing requirements on intrastate and 

Hinshaw pipelines comparable to those 

currently imposed on interstate 

pipelines. Enstor points out that 

§§ 284.13(b)(1)(viii) and 284.13(b)(2)(vi) 

require interstate pipelines to post all 

aspects in which a service agreement 

deviates from the pipeline’s tariff. 

Enstor states that, while interstate 

pipelines are required to file tariffs in a 

prescribed format, there is no similar 

requirement for intrastate and Hinshaw 

pipelines, and this would complicate 

any requirement for those pipelines to 

post how particular contracts deviate 

from their tariff. 

II. Discussion 

16. Based upon a review of the 

comments received in response to the 

NOI, the Commission is proposing to 

revise its transactional reporting 

requirements for intrastate and Hinshaw 

pipelines in order to increase market 

transparency, without imposing unduly 

burdensome requirements on those 

pipelines. Transactional information 

provides price transparency so shippers 

can make informed purchasing 

decisions, and also permits both 

shippers and the Commission to 

monitor actual transactions for evidence 

of possible abuse of market power or 

undue discrimination. The Commission 

is proposing to increase the availability 

and usefulness of the transactional 

information reported by intrastate and 

Hinshaw pipelines by requiring that: (1) 

The existing annual § 284.126(b) 

transactional reports be filed on a 

quarterly basis, (2) the quarterly reports 

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37662 Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Proposed Rules 

19See 18 CFR 284.13(b)(1)(ii), (iv), (v), and (vii) 

and (2)(iv), (v), (vi), and (ix). 

20See, e.g., Comments of Tres Palacios, Enstor, 

Apache, and APGA. 

include certain additional types of 

information and cover storage 

transactions as well as transportation 

transactions, (3) the quarterly reports be 

filed in a uniform electronic format and 

posted on the Commission’s Web site, 

and (4) those reports must be public and 

may not be filed with information 

redacted as privileged. 

17. The Commission is not proposing 

to impose on intrastate and Hinshaw 

pipelines the same reporting 

requirements as it imposes on interstate 

pipelines. For example, the Commission 

in this rulemaking will not require the 

intrastate and Hinshaw pipelines to 

make daily postings of transactional 

information on their own Web sites. As 

discussed below, the Commission 

believes that the revised reporting 

requirements proposed in this NOPR 

appropriately balance the need for 

increased transparency of intrastate and 

Hinshaw pipeline transactions, while 

avoiding unduly burdensome 

requirements that might discourage 

such pipelines from participating in the 

interstate market. 

A. Report Frequency and Content 

18. Increasing the frequency of the 

§ 284.126(b) transactional reports by 

intrastate and Hinshaw pipelines from 

annual to quarterly and requiring 

additional information in those reports 

will provide shippers and the 

Commission with both more timely and 

more useful information concerning the 

transactions entered into by section 311 

and Hinshaw pipelines. Specifically, the 

Commission proposes that the 

transactional reports to be filed on a 

quarterly basis include the following 

additional information not currently 

required by § 284.126(b). 

19. First, the Commission proposes to 

amend § 284.126(b) to require the 

quarterly reports to include certain 

additional information about each 

transaction not currently required by 

§ 284.126(b). This information will 

include: (1) The rate charged under each 

contract, including a separate statement 

of each rate component, (2) the duration 

of the contract, (3) the primary receipt 

and delivery points covered by the 

contract, (4) the quantity of natural gas 

the shipper is entitled to transport, 

store, or deliver, and (5) whether there 

is an affiliate relationship between the 

pipeline and the shipper. The purpose 

of these reports is to allow shippers and 

others, including the Commission, to 

monitor transactions for undue 

discrimination and preference. This 

additional information is necessary to 

enable such entities to determine the 

extent to which particular transactions 

are comparable to one another. For 

example, contracts for service on 

different parts of a pipeline system or 

with different durations may not be 

comparable to one another. In addition, 

the requirement that affiliate 

relationships between the pipeline and 

its shippers be reported will allow the 

Commission and interested parties to 

monitor whether the pipeline is favoring 

its affiliates. 

20. Requiring section 311 intrastate 

and Hinshaw pipelines to report this 

additional information concerning each 

transaction will make the reporting 

requirements for those pipelines more 

comparable to the transactional posting 

requirements for interstate pipelines. 

Section 284.13(b)(1) requires interstate 

pipelines to post similar information 

concerning contract rates, duration, 

receipt and delivery points, entitlements 

to service, and affiliate relationships.19

Most of the remaining information 

which § 284.13(b) requires interstate 

pipelines to post, but the Commission is 

not proposing to require section 311 and 

Hinshaw pipelines to report, relates to 

capacity release, which section 311 and 

Hinshaw pipelines are not required to 

permit. 

21. Second, the Commission proposes 

to require that the proposed § 284.126(b) 

quarterly reports include all storage 

transactions in addition to 

transportation transactions. Currently, 

§ 284.126(b) only requires section 311 

and Hinshaw pipelines to report 

information with respect to 

transportation transactions. The only 

information the Commission currently 

requires those pipelines to report with 

respect to storage transactions is the 

information included in the § 284.126(c) 

semi-annual storage activity report. 

Aside from the fact the storage activity 

report is only filed on a semi-annual, 

rather than a quarterly basis, it also does 

not include all of the information that 

we are proposing to require to be 

included in the quarterly reports under 

revised § 284.126(b). For example, 

§ 284.126(c) does not require section 

311 and Hinshaw pipelines to report the 

rates provided for in each contract, the 

duration of each contract, or whether 

there is an affiliate relationship between 

the storage provider and its customer. In 

order to assure that section 311 and 

Hinshaw pipelines report the same 

information about storage transactions 

as transportation transactions and on 

the same schedule, the Commission 

proposes to revise section 284.126(b) to 

cover both transportation and storage 

transactions. Clearly, there is just as 

great a need for transparency of storage 

transactions as of transportation 

transactions. 

22. While we are proposing to revise 

§ 284.126(b) to include storage 

transactions, we will continue to require 

section 311 and Hinshaw pipelines to 

make the semi-annual storage activity 

reports currently required by 

§ 284.126(c). Those reports include 

information that will not be contained 

in the proposed quarterly transactional 

reports. Specifically, § 284.126(c) 

requires section 311 and Hinshaw 

pipelines to report total volumes 

injected into storage during each 

complete storage injection season and 

total volumes withdrawn from storage 

during each complete storage 

withdrawal season. Such seasonal 

information will not be captured by the 

§ 284.126(b) quarterly transactional 

reports, because those reports will not 

correlate with the typical five-month 

withdrawal and seven-month injection 

seasons. Moreover, retaining the 

§ 284.126(c) semi-annual storage activity 

report for section 311 and Hinshaw 

pipelines is consistent with the 

Commission’s existing requirement, in 

§ 284.13(e), that interstate pipelines also 

make such semi-annual storage activity 

reports in addition to posting 

transactional information pursuant to 

§ 284.13(c). 

23. In proposing to require section 

311 and Hinshaw pipelines to make 

quarterly transactional reports 

containing similar information to that 

reported by interstate pipelines, the 

Commission has sought to balance the 

benefits of increased transparency of 

intrastate and Hinshaw pipeline 

transactions with the interest in 

avoiding unduly burdensome 

requirements for those pipelines. Under 

the Commission’s proposal, one primary 

difference will remain between the 

reporting requirements for interstate 

pipelines and the section 311 and 

Hinshaw pipelines: interstate pipelines 

will post transactional information daily 

on their Web sites, while section 311 

and Hinshaw pipelines will submit this 

information in a quarterly report to the 

Commission. Four commenters 20

requested that the Commission extend 

the § 284.13(b) daily interstate pipeline 

posting requirements to intrastate and 

Hinshaw pipelines. They asserted that 

this would address the concern that 

intrastate and Hinshaw pipelines have 

an unfair competitive advantage over 

interstate pipelines because of the 

disparate reporting requirement for the 

two sets of pipelines, and it would 

provide a greater ability to monitor the 

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21AGD, 824 F.2d at 1001–1003. 

22EPGT Texas Pipeline, L.P., 99 FERC ¶ 61,295 

at 62,252. 

23 Mustang Energy Corp. v. Federal Energy 

Regulatory Comm’n, 859 F.2d 1447, 1457 (10th Cir. 

1988), cert. denied, 490 U.S. 1019 (1988); see also 

EPGT Texas Pipeline, 99 FERC ¶ 61,295 (2002). 

24See, e.g., AGA Comments at 1–2, 9, 13, 16, 18– 

19; Duke Comments at 9; Niska Comments at 15; 

NW Natural Comments at 9, 11, 13, 14; and PG&E 

Comments at 6, 10. 

25AGA Comments at 2. 

26TPA Comments at 21. 

27While Order No. 720 does require daily Internet 

postings of certain scheduled flow information, that 

requirement is only applicable to major noninterstate pipelines and does not require posting of 

information about individual transactions. By 

contrast, the reporting requirement proposed here 

will require all section 311 and Hinshaw pipelines 

to report information about each customer contract. 

28See AGA Comments at 2, 11, 15, 18; Copano 

Comments at 7; DCP Comments at 10; Enogex 

Comments at 9; NW Natural Comments at 3, 8, 13. 

29Cranberry Comments at 6–8. 

30AGA Comments at 12–13; see also Duke 

Comments at 8; NW Natural at 14; PG&E Comments 

at 2, 5, 10. 

31Cf. ANR v. FERC, 71 F.3d at 902. 

32Order No. 720 at P 98. 

market for potential discrimination. 

However, the Commission is not 

proposing at this time to impose the full 

interstate pipeline posting requirements 

on intrastate and Hinshaw pipelines for 

several reasons. 

24. First, one purpose of the NGPA 

was to induce intrastate pipelines to 

participate in the interstate market by 

ensuring that it would not be unduly 

burdensome to do so.21 This 

participation by intrastate pipelines 

eliminates the need for duplication of 

facilities between interstate and 

intrastate pipelines.22 Thus, as the court 

has stated, ‘‘Congress intended that 

intrastate pipelines should be able to 

compete in the transportation market 

without bearing the burden of full 

regulation by FERC under the Natural 

Gas Act.’’ 23 AGA and several other 

intrastate and Hinshaw pipeline 

commenters indicated that they could 

make these reports on a quarterly basis, 

without incurring undue hardship.24

For example, AGA states, ‘‘a quarterly 

filing requirement would strike an 

appropriate balance between any added 

transparency to the wholesale, interstate 

natural gas markets and the burden on 

LDCs and the markets in producing 

additional contract information.’’ 25

25. However, if the Commission were 

to require all intrastate and Hinshaw 

pipelines to post transactional 

information on a daily basis, all those 

pipelines would have to maintain their 

own Web sites for this purpose. Such 

daily postings of information about 

individual transactions could be 

significantly more burdensome than the 

quarterly reporting requirement the 

Commission is proposing. The cost of 

maintaining a Web site in compliance 

with NAESB standards appears to be the 

primary concern of many intrastate and 

Hinshaw pipelines. The TPA notes that 

NAESB compliance ‘‘would require 

section 311 and Hinshaw pipelines to 

invest in additional information 

technology hardware and personnel,’’ 26

and notes that the Commission recently 

avoided requiring NAESB compliance 

for section 311 and Hinshaw pipelines 

in Order No. 720.27 Other pipelines 

expressed similar concerns about the 

cost of NAESB standards.28 Notably, 

Cranberry expressed doubt that it would 

be able to afford even an electronic 

bulletin board, given the small size of its 

staff.29 Further, as the AGA and others 

note, ‘‘a daily reporting requirement 

would be unduly burdensome in light of 

the information that would be 

obtained,’’ from the typical service 

provider, whose transactions often do 

not change on a day-to-day basis.30

Based on these comments, the 

Commission is concerned that a daily 

Internet posting requirement could 

discourage section 311 and Hinshaw 

pipelines from performing interstate 

service. 

26. Second, only two interstate 

pipelines filed comments claiming that 

daily posting by intrastate and Hinshaw 

pipelines is necessary to avoid adverse 

competitive effects on interstate 

pipelines. It thus does not appear that 

there is widespread concern among 

interstate pipelines that the disparate 

reporting requirements will cause 

significant adverse competitive effects. 

Moreover, our proposal to increase the 

frequency of intrastate and Hinshaw 

pipeline transactional reports and 

increase the information included in 

those reports will reduce the disparity 

in the reporting requirements for the 

two sets of pipelines. We recognize that 

some of the commenters have raised 

concerns about the ability of shippers 

and others to obtain access to the 

transactional reports filed by section 

311 and Hinshaw pipelines with the 

Commission. For this reason, as 

discussed in the next two sections, the 

Commission is also proposing to take 

several actions to increase the 

accessibility of these reports, including 

providing for them to be posted in a 

standardized format on the 

Commission’s Web site. This increased 

accessibility of the reports will also 

serve to improve market transparency, 

while minimizing additional burdens on 

section 311 and Hinshaw pipelines. 

27. We conclude that the comments in 

response to the NOI do not demonstrate 

a need to impose on section 311 and 

Hinshaw pipelines the increased burden 

of complying with the daily § 284.13 

transactional posting requirements. In 

these circumstances, the interest in 

avoiding unduly burdensome 

requirements that could discourage 

intrastate and Hinshaw pipelines from 

participating in the interstate market, 

contrary to the goal of the NGPA, 

provides a ‘‘reasonable justification for 

excluding’’ the intrastate and Hinshaw 

pipelines from the daily posting 

requirements.31

B. Online Posting 

28. In order to make the proposed 

quarterly reports filed with the 

Commission more accessible to the 

public, the Commission proposes 

requiring that the reports be filed in an 

electronic standardized format to be 

developed by the Commission staff. The 

Commission proposes the data be 

publicly available, and not filed on a 

redacted basis. This method will 

enhance the posting of quarterly reports 

on the Commission’s Web site and 

facilitate easy access to the information 

by the public. At the same time, this 

procedure will avoid the costs of 

requiring intrastate pipelines to 

maintain a NAESB-compliant Web site, 

discussed above. 

29. In Order No. 720, the Commission 

‘‘clarifie[d] that the pipeline posting 

regulations do not impose NAESB 

requirements on non-interstate 

pipelines,’’ but that rather, ‘‘posting 

pipelines need only comply with the 

manner of posting outlined in’’ the new 

regulation.32 The Commission proposes 

a similar approach here. Rather than 

place the burden of Web site 

maintenance and standards compliance 

on individual pipelines, the 

Commission would take on that 

responsibility, with the pipelines only 

being responsible for collecting and 

filing the information with the 

Commission. Under the current rules, 

the Commission encourages parties to 

file intrastate reports using FERC–537 

Semi-Annual Storage Report for Activity 

under Section 284.122 and FERC–549, 

Annual Transportation Report. 

Standardized formats have proven to be 

an effective way to increase practical 

access both for industry members and 

the Commission’s own staff. Currently, 

FERC–549 and FERC–537 filers are not 

required to use a standardized format; 

consequently the data collection has 

been inconsistent. The Commission 

therefore proposes to require section 

311 and Hinshaw companies to submit 

their reports in a standardized 

electronic format. The Commission is 

currently in the process of developing a 

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37664 Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Proposed Rules 

33 18 CFR 385.1112. 

34AGA Comments at 19. 

35See Consumers Energy Co. v. FERC, 226 F.3d 

777 (6th Cir. 2000) (finding that the Commission 

must act under NGA section 5 in order to require 

Hinshaw pipelines to change their rates). 

36 15 U.S.C. 717t–2(a)(1). See Energy Policy Act 

of 2005, Pub. L. No. 109–58, § 316 (‘‘Natural Gas 

Market Transparency Rules’’), 119 Stat. 594 (2005). 

37See, e.g., AGD, 824 F.2d at 1015–1018 (D.C. Cir. 

1987) (affirming the Commission’s use of section 

311(c) to require intrastate pipelines to permit their 

interstate sales customers to convert to 

transportation-only service). 

38 18 CFR 284.126(b)(1)(i) of the proposed 

regulations. 

39 18 CFR 284.126(b)(1)(iv) of the proposed 

regulations. 

40 5 CFR 1320.11. 

41 44 U.S.C. 3507(d). 

standardized electronic format for 

making the reports proposed in this 

NOPR. Once that process is complete, 

the Commission will make the 

standardized format available for public 

comment. 

C. Confidentiality Policy 

30. Finally, the Commission proposes 

to require such reports be posted 

without any information redacted as 

privileged. Currently, when a report is 

filed subject to a request for privileged 

treatment, any person desiring to see the 

report must file a formal request, 

pursuant to the Freedom of Information 

Act (FOIA) and § 385.1112 of the 

Commission’s Rules of Practice and 

Procedure,33 that the Commission make 

the report public. Due to the expense 

and delay caused by this additional 

step, in practice these requests have 

been infrequent. Further, as the APGA 

argues in its comments, allowing pricing 

information to be confidential 

undermines the Commission’s goals of 

preventing undue discrimination and 

promoting price transparency. Adopting 

a prohibition on the confidential 

treatment of § 284.126(b) reports 

furthers all of these policy goals. 

Accordingly, the proposed standardized 

reporting form will include a statement 

that the report will be public. 

31. While several parties expressed 

concern about the commercial 

sensitivity of the information to be 

reported, the AGA comments, ‘‘a 

quarterly reporting requirement should 

allay any concerns regarding the 

commercial sensitivity of contract 

data.’’ 34 The Commission concurs with 

this assessment, and finds that the 

public benefits of increasing the 

availability of market information far 

outweigh the risks posted by the 

commercial sensitivity of data from a 

previous quarter. 

32. In addition to the above policy 

considerations, the Commission finds 

that its governing statutes support 

public treatment of data reported both 

by Hinshaw pipelines and by NPGA 

section 311 pipelines. The Commission 

regulates interstate service performed by 

Hinshaw pipelines pursuant to the 

NGA.35 Therefore, NGA section 4(c)’s 

requirement that interstate pipelines 

publicly disclose contracts under such 

rules as the Commission may prescribe 

applies to the interstate services 

performed by Hinshaw pipelines 

pursuant to their § 284.224 blanket 

certificates. Furthermore, NGA section 

23(a)(1) directs the Commission ‘‘to 

facilitate price transparency in markets 

for the sale or transportation of physical 

natural gas in interstate commerce.’’ 36

While the NGPA does not contain an 

express public disclosure provision 

similar to NGA section 4(c), section 

311(c) of the NGPA authorizes the 

Commission to prescribe the ‘‘terms and 

conditions’’ under which intrastate 

pipelines perform interstate service. 

Requiring public disclosure of 

transactional information for the 

purpose of allowing shippers and others 

to monitor NGPA section 311 

transactions for undue discrimination is 

well within the Commission’s broad 

conditioning authority under § 311(c).37

D. Miscellaneous Issues 

33. The Commission is proposing that 

the quarterly reports required by this 

NOPR include not only the full legal 

name, but also the ‘‘identification 

number’’ of each shipper.38 The 

Commission is also proposing that the 

reports include the ‘‘industry common 

code’’ for each receipt and delivery 

point.39 The Commission is proposing 

to require that the reports include a 

shipper identification number, in order 

to simplify recordkeeping and minimize 

the ambiguity and confusion that can be 

caused by shippers whose names have 

changed, or whose names are similar to 

the names of other shippers. Similarly, 

the Commission is proposing to require 

that the reports include an industry 

common code for receipt and delivery 

points to minimize any ambiguity as to 

what receipt and delivery points are 

being reported and to ensure that all 

reporting pipelines identify such points 

in a consistent manner. 

34. While the Commission is aware of 

some shipper identification standards 

and receipt and delivery point codes 

that are used in the natural gas industry 

(for example, Dun & Bradstreet, Inc.’s 

D–U–N–S identification numbers for 

shippers), it is reluctant to choose any 

particular standard without input as to 

that standard’s cost-effectiveness and 

usefulness. Accordingly, the 

Commission seeks comments from 

interested parties on two related 

questions: (1) What sort of shipper 

identification numbers and receipt and 

delivery point common industry codes 

are currently used or readily available to 

section 311 and Hinshaw pipelines?; 

and (2) Which shipper identification 

standard or standards and receipt and 

delivery point codes, if any, should be 

used? 

III. Regulatory Requirements 

A. Information Collection Statement 

35. The Office of Management and 

Budget (OMB) regulations require that 

OMB approve certain reporting, record 

keeping, and public disclosure 

requirements (collections of 

information) imposed by an agency.40

Therefore, the Commission is providing 

notice of its proposed information 

collections to OMB for review in 

accordance with section 3507(d) of the 

Paperwork Reduction Act of 1995.41

Upon approval of a collection of 

information, OMB will assign an OMB 

control number and an expiration date. 

36. The Commission estimates that on 

an annual basis the burden to comply 

with this proposed rule will be as 

follows: 

Data collection Number of 

respondents 

Number of 

responses 

Hours per 

response Total hours 

FERC–549D ..................................................................................................... 125 4 3.5 1,750 

Total Annual Hours for Collection: 

1,750 hours. 

These are mandatory information 

collection requirements. 

Information Collection Costs: Because 

of the various staffing levels that will be 

involved in preparing the 

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Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Proposed Rules 37665 

42Order No. 486, Regulations Implementing 

National Environmental Policy Act, 52 FR 47897 

(Dec. 17, 1987), FERC Stats. & Regs., Regulations 

Preambles 1986–1990 ¶ 30,783 (1987). 

43 18 CFR 380.4. 

44See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5) and 

380.4(a)(27). 

45 5 U.S.C. 601–612. 

46See 5 U.S.C. 601(3), citing section 3 of the 

Small Business Act, 15 U.S.C. 623. Section 3 of the 

SBA defines a ‘‘small business concern’’ as a 

business which is independently owned and 

operated and which is not dominant in its field of 

operation. The Small Business Size Standards 

component of the North American Industry 

Classification System defines a small natural gas 

pipeline company as one that transports natural gas 

and whose annual receipts (total income plus cost 

of goods sold) did not exceed $7 million for the 

previous year. 

documentation (legal, technical and 

support) the Commission is using an 

hourly rate of $150 to estimate the costs 

for filing and other administrative 

processes (reviewing instructions, 

searching data sources, completing and 

transmitting the collection of 

information). The estimated cost is 

anticipated to be $262,500. 

Title: FERC–549D. 

Action: Proposed Data Collection. 

OMB Control No.: To be determined. 

Respondents: Natural gas pipeline 

companies. 

Frequency of Responses: On occasion. 

Necessity of Information: This 

proposed rule will improve the 

usefulness and transparency of market 

transactions. The increased frequency of 

transactional reporting will help the 

Commission identify and evaluate 

emerging trends and business 

conditions affecting reporting entities, 

including undue discrimination and 

preference. Additionally, the 

information contained in the quarterly 

reports will identify the economic 

effects of significant transactions and 

events, allow more timely evaluations of 

the adequacy of existing rates and aid in 

the development of needed changes to 

existing regulatory initiatives. Finally, 

more frequent and transparent reporting 

resulting from this proposed rule will 

help the Commission achieve its goal of 

vigilant oversight over reporting 

entities. 

37. The Commission requests 

comments on the utility of the proposed 

information collection, the accuracy of 

the burden estimates, how the quality, 

quantity, and clarity of the information 

to be collected might be enhanced, and 

any suggested methods for minimizing 

the respondent’s burden, including the 

use of automated information 

techniques. Interested persons may 

obtain information on the reporting 

requirements or submit comments by 

contacting the Federal Energy 

Regulatory Commission, 888 First 

Street, NE., Washington, DC 20426 

(Attention: Michael Miller, Office of the 

Executive Director, 202–502–8415 or email michael.miller@ferc.gov). 

Comments may also be sent to the Office 

of Management and Budget (Attention: 

Desk Officer for the Federal Energy 

Regulatory Commission, fax: 202–395– 

7285 or e-mail: 

oira_submission@omb.eop.gov). 

B. Environmental Analysis 

38. The Commission is required to 

prepare an Environmental Assessment 

or an Environmental Impact Statement 

for any action that may have a 

significant adverse effect on the human 

environment.42 The Commission has 

categorically excluded certain actions 

from these requirements as not having a 

significant effect on the human 

environment.43 The actions proposed to 

be taken here fall within categorical 

exclusions in the Commission’s 

regulations for rules that are corrective, 

clarifying or procedural, for information 

gathering, analysis, and dissemination, 

and for sales, exchange, and 

transportation of natural gas that 

requires no construction of facilities.44

Therefore an environmental review is 

unnecessary and has not been prepared 

in this rulemaking. 

IV. Regulatory Flexibility Act [Analysis 

or Certification] 

39. The Regulatory Flexibility Act of 

1980 (RFA) 45 generally requires a 

description and analysis of final rules 

that will have significant economic 

impact on a substantial number of small 

entities. The Commission is not 

required to make such analysis if 

proposed regulations would not have 

such an effect. 

40. Most of the natural gas companies 

regulated by the Commission do not fall 

within the RFA’s definition of a small 

entity.46 Approximately 125 natural gas 

companies are potential respondents 

subject to the requirements adopted by 

this rule. For the year 2008 (the most 

recent year for which information is 

available), 4 companies had annual 

revenues of less than $7 million. This 

represents 3.2 percent of the total 

universe of potential respondents or 

only a very few entities that may have 

a significant burden imposed on them. 

In view of these considerations, the 

Commission certifies that this proposed 

rule’s amendments to the regulations 

will not have a significant impact on a 

substantial number of small entities. 

V. Comment Procedures 

41. The Commission invites interested 

persons to submit comments on the 

matters and issues proposed in this 

notice to be adopted, including any 

related matters or alternative proposals 

that commenters may wish to discuss. 

Comments are due October 27, 2009. 

Comments must refer to Docket No. 

RM09–2–001, and must include the 

commenter’s name, the organization 

they represent, if applicable, and their 

address in their comments. 

42. The Commission encourages 

comments to be filed electronically via 

the eFiling link on the Commission’s 

Web site at http://www.ferc.gov. The 

Commission accepts most standard 

word processing formats. Documents 

created electronically using word 

processing software should be filed in 

native applications or print-to-PDF 

format and not in a scanned format. 

Commenters filing electronically do not 

need to make a paper filing. 

43. Commenters that are not able to 

file comments electronically must send 

an original and 14 copies of their 

comments to: Federal Energy Regulatory 

Commission, Secretary of the 

Commission, 888 First Street, NE., 

Washington, DC 20426. 

44. All comments will be placed in 

the Commission’s public files and may 

be viewed, printed, or downloaded 

remotely as described in the Document 

Availability section below. Commenters 

on this proposal are not required to 

serve copies of their comments on other 

commenters. 

VI. Document Availability 

45. In addition to publishing the full 

text of this document in the Federal 

Register, the Commission provides all 

interested persons an opportunity to 

view and/or print the contents of this 

document via the Internet through 

FERC’s Home Page (http://www.ferc.gov) 

and in FERC’s Public Reference Room 

during normal business hours (8:30 a.m. 

to 5 p.m. Eastern time) at 888 First 

Street, NE., Room 2A, Washington, DC 

20426. 

46. From FERC’s Home Page on the 

Internet, this information is available on 

eLibrary. The full text of this document 

is available on eLibrary in PDF and 

Microsoft Word format for viewing, 

printing, and/or downloading. To access 

this document in eLibrary, type the 

docket number excluding the last three 

digits of this document in the docket 

number field. 

47. User assistance is available for 

eLibrary and the FERC’s Web site during 

normal business hours from FERC 

Online Support at 202–502–6652 (toll 

free at 1–866–208–3676) or e-mail at 

ferconlinesupport@ferc.gov, or the 

Public Reference Room at (202) 502– 

8371, TTY (202) 502–8659. E-mail the 

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37666 Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Proposed Rules 

Public Reference Room at 

public.referenceroom@ferc.gov. 

List of Subjects in 18 CFR Part 284 

Incorporation by reference, Natural 

gas, Reporting and recordkeeping 

requirements. 

By direction of the Commission. 

Nathaniel J. Davis, Sr., 

Deputy Secretary. 

In consideration of the foregoing, the 

Commission proposes to amend part 

284, Chapter I, Title 18, Code of Federal 

Regulations, as follows: 

PART 284—CERTAIN SALES AND 

TRANSPORTATION OF NATURAL GAS 

UNDER THE NATURAL GAS POLICY 

ACT OF 1978 AND RELATED 

AUTHORITIES 

1. The authority citation for part 284 

continues to read as follows: 

Authority: 15 U.S.C. 717–717w, 3301– 

3432; 42 U.S.C. 7101–7352; 43 U.S.C. 1331– 

1356 

2. In § 284.126, paragraph (b) is 

revised to read as follows: 

§ 284.126 Reporting requirements. 

* * * * * 

(b) Quarterly report. 

(1) Each intrastate pipeline must file 

a quarterly report with the Commission 

and the appropriate State regulatory 

agency that contains, for each 

transportation and storage service 

provided during the preceding calendar 

quarter under § 284.122, the following 

information: 

(i) The full legal name, and 

identification number, of the shipper 

receiving the service, including whether 

there is an affiliate relationship between 

the pipeline and the shipper; 

(ii) The type of service performed (i.e., 

firm or interruptible transportation, 

storage, or other service); 

(iii) The rate charged under each 

contract, specifying the rate schedule/ 

name of service and docket where the 

rates were approved. The report should 

separately state each rate component set 

forth in the contract (i.e., reservation, 

usage, and any other charges); 

(iv) The primary receipt and delivery 

points covered by the contract, 

including the industry common code for 

each point; 

(v) The quantity of natural gas the 

shipper is entitled to transport, store, or 

deliver under each contract; 

(vi) The duration of the contract, 

specifying the beginning and ending 

month and year of the current 

agreement; 

(vii) Total volumes transported, 

stored, injected or withdrawn for the 

shipper; and 

(viii) Total revenues received for the 

shipper. The report should separately 

State revenues received under each rate 

component; 

(2) The quarterly report for the period 

January 1 through March 31 must be 

filed on or before May 1. The quarterly 

report for the period April 1 through 

June 30 must be filed on or before 

August 1. The quarterly report for the 

period July 1 through September 30 

must be filed on or before November 1. 

The quarterly report for the period 

October 1 through December 31 must be 

filed on or before February 1. 

(3) Each report must be filed as 

prescribed in § 385.2011 of this chapter 

as indicated in the General Instructions 

set out in the quarterly reporting form. 

Each report must be prepared in 

conformance with the Commission’s 

software and reporting guidance, so as 

to be posted and available for 

downloading from the FERC Web site 

(http://www.ferc.gov). One copy of the 

report must be retained by the 

respondent in its files. 

* * * * * 

[FR Doc. E9–17623 Filed 7–28–09; 8:45 am] 

BILLING CODE 6717–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4001, 4022 

RIN 1212–AB19 

USERRA Benefits Under Title IV of 

ERISA 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Proposed rule. 

SUMMARY: The Uniformed Services 

Employment and Reemployment Rights 

Act of 1994 (‘‘USERRA’’) provides that 

an individual who leaves his or her job 

to serve in the uniformed services is 

generally entitled to reemployment by 

his or her previous employer and, upon 

reemployment, to receive credit for 

benefits, including employee pension 

plan benefits, that would have accrued 

but for the employee’s absence due to 

the military service. This proposed rule 

would amend PBGC’s regulation on 

Benefits Payable in Terminated SingleEmployer Plans (29 CFR part 4022) to 

address a narrow but important issue 

regarding PBGC’s guarantee of benefits 

for participants who are serving in the 

uniformed services at the time that their 

pension plan terminates. Under PBGC’s 

existing regulations, a benefit is 

guaranteed only if the participant 

satisfies the conditions for entitlement 

to the benefit on or before the plan’s 

termination date. PBGC proposes to 

provide an exception to this rule in the 

unique circumstances of persons serving 

in the uniformed services as of the 

plan’s termination date, consistent with 

USERRA’s statutory mandate to treat 

such persons, upon reemployment, as if 

they had never left the employ of their 

former employer. This proposed rule 

would provide that so long as a service 

member is reemployed within the time 

limits set by USERRA, even if the 

reemployment occurs after the plan’s 

termination date, PBGC would treat the 

participant as having satisfied the 

reemployment condition as of the 

termination date. This would ensure 

that the pension benefits of reemployed 

service members, like those of other 

employees, would generally be 

guaranteed for periods up to the plan’s 

termination date. 

DATES: Comments must be received on 

or before September 28, 2009 

ADDRESSES: Comments, identified by 

RIN 1212–AB19 may be submitted by 

any of the following methods: 

Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the Web 

site instructions for submitting 

comments. 

• E-mail: reg.comments@pbgc.gov. 

• Fax: 202–326–4224. 

• Mail or Hand Delivery: Legislative 

and Regulatory Department, Pension 

Benefit Guaranty Corporation, 1200 K 

Street, NW., Washington, DC 20005– 

4026. 

All submissions must include the 

Regulatory Information Number for this 

rulemaking (RIN 1212–AB19). 

Comments received, including personal 

information provided, will be posted to 

http://www.pbgc.gov. 

Copies of comments may also be 

obtained by writing to Disclosure 

Division, Office of the General Counsel, 

Pension Benefit Guaranty Corp., 1200 K 

Street, NW, Washington, DC 20005– 

4026 or calling 202–326–4040 during 

normal business hours. (TTY and TDD 

users may call the Federal relay service 

toll-free at 1–800–877–8339 and ask to 

be connected to 202–326–4040.) 

FOR FURTHER INFORMATION CONTACT: John 

H. Hanley, Director, or Constance 

Markakis, Attorney, Legislative and 

Regulatory Department, Pension Benefit 

Guaranty Corporation, Suite 12300, 

1200 K Street, NW., Washington, DC 

20005–4026, 202–326–4024. (TTY and 

TTD users may call the Federal relay 

service toll-free at 1–800–877–8339 and 

ask to be connected to 202–326–4024.) 

SUPPLEMENTARY INFORMATION: 

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