Document ID: FERC-2010-0558-0001
Agency: ferc
Document Type: Rule
Title: Transferring Certain Enforcement Hotline Matters to the Dispute Resolution Service
Posted Date: 2010-04-26T04:00Z

[Federal Register Volume 75, Number 79 (Monday, April 26, 2010)]
[Rules and Regulations]
[Pages 21503-21505]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-9125]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 1b

[Docket No. RM10-21-000; Order No. 734]

Transferring Certain Enforcement Hotline Matters to the Dispute 
Resolution Service

Issued April 15, 2010.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Commission is revising its regulations to substitute the 
Commission's Dispute Resolution Service (DRS) for the Commission's 
Enforcement Hotline as the contact for handling dispute-related calls 
pertaining to the construction and operation of jurisdictional 
infrastructure projects, effective May 1, 2010. Currently, the 
Commission's regulations require that natural gas pipeline companies 
provide contact information for the Enforcement Hotline when providing 
notice to affected landowners on a blanket certificate project under 
the Natural Gas Act. In practice, the Enforcement Hotline also attempts 
to resolve disputes between individuals and natural gas pipeline 
companies on all certificated construction projects under the Natural 
Gas Act. The Enforcement Hotline also receives calls pertaining to 
hydroelectric projects regulated under the Federal Power Act. The 
Commission is implementing this Final Rule because the Office of 
Enforcement's priorities currently are to focus on matters involving: 
fraud and market manipulation; serious violations of the reliability 
standards; anticompetitive conduct; and conduct that threatens the 
transparency of regulated markets.\1\ By transferring the 
responsibility of dispute-related calls pertaining to the construction 
and operation of jurisdictional infrastructure projects to DRS, with 
its expertise in conflict resolution, and allowing the Office of 
Enforcement to focus on its priorities, the Commission will ensure an 
efficient allocation of its resources that will better serve the public 
interest.
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    \1\ 2009 Report on Enforcement, Docket No. AD07-13-002 at 2 
(2009).

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DATES: Effective Date: The rule will become effective on May 1, 2010.

FOR FURTHER INFORMATION CONTACT:

Stuart Fischer, Office of Enforcement, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
8517;
Nils Nichols, Office of Administrative Litigation/Dispute Resolution 
Service, Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8638.

SUPPLEMENTARY INFORMATION:

Before Commissioners: Jon Wellinghoff, Chairman; Marc Spitzer, 
Philip D. Moeller, and John R. Norris.

I. Introduction

    1. The Commission is revising its regulations to substitute the 
Commission's Dispute Resolution Service (DRS) for the Commission's 
Enforcement Hotline as the contact for handling dispute-related calls 
pertaining to the construction and operation of jurisdictional natural 
gas and hydroelectric infrastructure projects, effective May 1, 2010. 
The Commission is implementing this Final Rule because the Office of 
Enforcement's priorities currently are to focus on matters involving: 
fraud and market manipulation; serious violations of the reliability 
standards; anticompetitive conduct; and conduct that threatens the 
transparency of regulated markets. By transferring the responsibility 
of dispute-related calls pertaining to the construction and operation 
of jurisdictional infrastructure projects to DRS, with its expertise in 
conflict resolution, and allowing the Office of Enforcement to focus on 
its priorities, the Commission will ensure an efficient allocation of 
its resources that will better serve the public interest.

II. Background

    2. The Commission's Enforcement Hotline has been in existence since 
June 1987. In April 1999, the Enforcement Hotline was codified under 
section 1b.21 of the Commission's regulations. 18 CFR 1b.21. In 
addition to providing information to the public and informal, non-
binding staff opinions, any person may seek the Enforcement Hotline's 
assistance in the informal resolution of a dispute, provided that the 
dispute is not before the Commission in a docketed proceeding. 18 CFR 
1b.21(b). The Enforcement Hotline is staffed by personnel from the 
Division of Investigations in the Office of Enforcement.
    3. The Enforcement Hotline receives communications relating to a 
wide variety of matters including: Allegations of market manipulation; 
failure to follow the requirements of a transmission tariff; abuse of 
an affiliate relationship; failure to follow electric reliability 
standards; and landowner complaints relating to natural gas pipeline 
construction or compliance with hydroelectric project licensing 
conditions.\2\
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    \2\ For internal recordkeeping purposes, the Office of 
Enforcement considers ``landowner'' calls to include calls from 
tenants renting from the landowner or any other individual affected 
by a project's construction or physical operation. As noted earlier, 
section 1b.21, which codifies the Enforcement Hotline, provides that 
``any person'' may seek assistance. This rulemaking also includes 
disputes involving tenants and other individuals affected by a 
project's construction or physical operation. However, for the 
purpose of convenience, this preamble includes them in the general 
category of ``landowner'' except as discussed in the next paragraph 
herein when that term is used in connection with the specific 
provisions of section 157.203(d).
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    4. Landowner calls to the Enforcement Hotline are partly the result 
of the dispute resolution process set forth in the Commission's 
regulations. Section 157.203(d) of the Commission's regulations sets 
forth the landowner notification requirements that a natural gas 
pipeline company must follow if it plans to engage in a project 
authorized under a blanket certificate under the Natural Gas Act (NGA). 
Among the requirements is to provide all affected landowners with a 
description of the company's environmental complaint resolution 
procedures, which must include company contact telephone numbers which 
landowners can use to identify and resolve environmental mitigation 
problems and concerns during

[[Page 21504]]

construction of the project and restoration of the right-of-way. 18 CFR 
157.203(d)(iii). The complaint resolution procedures must also instruct 
landowners that, if they are still not satisfied with the company's 
response to their complaints, they may contact the Commission's 
Enforcement Hotline. 18 CFR 157.203(d)(iii)(D). The company must 
provide the affected landowners with the current telephone number and 
e-mail address of the Enforcement Hotline. Id.
    5. In practice, natural gas pipeline companies provide affected 
landowners with environmental complaint resolution procedures, 
including contact information for the Enforcement Hotline, for all 
certificate projects under the NGA.
    6. Landowner calls to the Enforcement Hotline primarily raise 
substantive issues concerning the effects of project construction, such 
as whether a pipeline company has properly restored the construction 
right-of-way, whether compressor stations exceed the noise limits set 
forth in the Commission's order or regulations, and whether the use of 
the easement is consistent with the purpose for which the easement was 
granted. The Enforcement Hotline attempts to resolve such calls 
primarily in consultation with the Commission's Office of Energy 
Projects (OEP) and, when needed, the Commission's Office of the General 
Counsel.
    7. The Enforcement Hotline also at times receives calls from 
landowners concerned about whether a hydroelectric project operator is 
in compliance with the project's licensing conditions. In such 
instances, the Enforcement Hotline refers the matter to the OEP's 
Division of Hydropower Administration and Compliance.

III. Commission Determination

    8. This Final Rule amends 18 CFR 157.203(d)(iii)(D) to substitute 
the Commission's DRS for the Enforcement Hotline as the contact for 
landowners that have unresolved disputes with pipeline companies 
following use of the pipeline companies' environmental complaint 
resolution procedure. This change will result in a better allocation of 
Commission resources that will better serve the public interest. While 
the Enforcement Hotline continues to successfully handle landowner 
calls, such calls are unrelated to the current priorities of the Office 
of Enforcement, which are: Fraud and market manipulation; serious 
violations of the reliability standards; anticompetitive conduct; and 
conduct that threatens the transparency of regulated markets.\3\ By 
transferring the responsibility of dispute-related calls pertaining to 
the construction and operation of jurisdictional infrastructure 
projects to DRS, with its expertise in conflict resolution, and 
allowing the Office of Enforcement to focus on its priorities, the 
Commission will ensure an efficient allocation of its resources, 
thereby better serving the public interest. Similarly, the Commission 
is transferring the responsibility of dispute-related calls pertaining 
to the construction and operation of jurisdictional hydroelectric power 
projects to DRS, which will interact with the OEP's Division of 
Hydropower Administration and Compliance. This transfer of 
responsibilities will become effective on May 1, 2010.
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    \3\ 2009 Report on Enforcement at 2.
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    9. The DRS is well suited to take over the Enforcement Hotline's 
role in attempting to informally resolve landowner disputes with 
natural gas pipeline companies, as well as landowner disputes relating 
to hydroelectric projects which the OEP's Division of Hydropower 
Administration and Compliance wishes to submit for DRS resolution. The 
central mission of the Commission's DRS is to reach consensual 
resolution of disputed matters through the use of alternative dispute 
resolution methods such as mediation. DRS staff also has extensive 
substantive expertise in environmental, natural gas pipeline 
certificate, hydroelectric, and liquefied natural gas facility matters. 
Finally, DRS already receives and addresses a number of calls from 
landowners affected by projects under the Commission's jurisdiction. 
This will not be a new duty, but rather an extension of an existing 
service.\4\ Thus, the Commission will be able to continue serving the 
public interest through the use of DRS' expertise in attempting to 
resolve landowner disputes formerly handled by the Enforcement Hotline, 
and will better serve the public interest by allowing the Office of 
Enforcement to focus on its priorities.
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    \4\ The Commission's Office of External Affairs (OEA) currently 
handles calls from landowners asking general questions about the 
Commission's certificate or licensing process, as well as specific 
questions about particular proceedings such as the dates of meetings 
or site visits. Such questions will remain within the purview of 
OEA.
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    10. This Final Rule also amends 18 CFR 1b.21 to add a provision 
stating that any person affected by either the construction or 
operation of a certificated natural gas pipeline under the NGA or by 
the construction or operation of a project under the Federal Power Act 
(FPA) may seek the informal resolution of a dispute by calling or 
writing the DRS. Finally, because DRS will be the contact, this Final 
Rule deletes 18 CFR 157.203(d)(iv), which references the Enforcement 
Hotline regulation at 18 CFR 1b.21 as a source for obtaining further 
information about the Enforcement Hotline.

IV. Information Collection Statement

    11. The Office of Management and Budget's (OMB) regulations require 
that OMB approve certain information collection requirements imposed by 
agency rule.\5\ This Final Rule contains no information reporting 
requirements, and, as such, is exempt from the provisions of the 
Paperwork Reduction Act.\6\
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    \5\ 5 CFR Part 1320.
    \6\ 44 U.S.C. 3518(c); 5 CFR 1320.4.
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V. Environmental Analysis

    12. 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.\7\ Issuance 
of this Final Rule does not represent a major federal action having a 
significant adverse effect on the human environment under the 
Commission's regulations implementing the National Environmental Policy 
Act.\8\ Part 380 of the Commission's regulations lists exemptions to 
the Environmental Analysis or Environmental Impact Statement 
requirement. Included is an exemption for procedural, ministerial or 
internal administrative actions.\9\ This rulemaking is exempt under 
that provision.
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    \7\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & 
Regs., Regulations Preambles 1986-1990 ] 30,783 (1987).
    \8\ Order No. 486, 52 FR 47897 (Dec. 17, 1987); FERC Stats. & 
Regs., Regulations Preambles 1986-1990 ] 30,783 (Dec. 10, 1984) 
(codified at 18 CFR Part 380).
    \9\ 18 CFR 380.4(1) and (5).
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VI. Regulatory Flexibility Act Certification

    13. The Regulatory Flexibility Act of 1980 \10\ generally requires 
a description and analysis of final rules that will have significant 
economic impact on a substantial number of small entities. This Final 
Rule concerns a matter of internal agency procedure and the Commission 
therefore certifies that it will not have such an impact. An analysis 
under the RFA is not required.
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    \10\ 5 U.S.C. 601-612 (RFA).

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[[Page 21505]]

VII. Document Availability

    14. 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.
    15. 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.
    16. 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 Public Reference Room at 
public.referenceroom@ferc.gov.

VIII. Effective Date

    17. These regulations are effective on May 1, 2010. In accordance 
with 5 U.S.C. 553(d)(3), the Commission finds that good cause exists to 
make this Final Rule effective less than 30 days after its publication 
in the Federal Register. The rule concerns a matter of administrative 
procedures and does not affect the rights of persons appearing before 
the Commission. Therefore, there is no reason to make it effective at a 
later time.
    18. The provisions of 5 U.S.C. 801 regarding Congressional review 
of Final Rules do not apply to this Final Rule, because the rule 
concerns agency procedure and practice and will not substantially 
affect the rights of non-agency parties.
    19. The Commission is issuing this as a Final Rule without a period 
for public comment. Under 5 U.S.C. 553(b), notice and comment 
procedures are unnecessary where a rulemaking concerns only agency 
procedure and practice, or where the agency finds that notice and 
comment is unnecessary. This rule concerns only matters of agency 
procedure and will not significantly affect regulated entities or the 
general public.

List of Subjects in 18 CFR Part 1b

    Rules relating to investigations.

List of subjects in 18 CFR Part 157

    Interstate Pipeline Blanket Certificates and Authorization under 
Section 7 of the Natural Gas Act for Certain Transactions and 
Abandonment.

    By the Commission.
Kimberly D. Bose,
Secretary.

0
In consideration of the foregoing, the Commission amends Parts 1b and 
257, Chapter I, Title 18, Code of Federal Regulations, as follows:

PART 1b--RULES RELATING TO INVESTIGATIONS

0
1. The authority citation for Part 1b continues to read as follows:

    Authority:  15 U.S.C. 717 et seq.; 16 U.S.C. 792 et seq.; 49 
U.S.C. 60502; 49 A.P.U.S.C. 1-85; 42 U.S.C. 7101-7352; E.O. 12009, 
42 FR 46297.

0
2. In Sec.  1b.21, paragraph (b) is revised and paragraphs (g) and (h) 
are added to read as follows:

Sec.  1b.21  Enforcement hotline.

* * * * *
    (b) Except as provided for in paragraph (g) of this section, any 
person may seek information or the informal resolution of a dispute by 
calling or writing to the Hotline at the telephone number and address 
in paragraph (f) of this section. The Hotline Staff will informally 
seek information from the caller and any respondent, as appropriate. 
The Hotline Staff will attempt to resolve disputes without litigation 
or other formal proceedings. The Hotline Staff may not resolve matters 
that are before the Commission in docketed proceedings.
* * * * *
    (g) Any person affected by either the construction or operation of 
a certificated natural gas pipeline under the Natural Gas Act or by the 
construction or operation of a project under the Federal Power Act may 
seek the informal resolution of a dispute by calling or writing the 
Commission's Dispute Resolution Service. The Dispute Resolution Service 
may be reached by calling the DRS Helpline toll-free at 1-877-337-2237, 
or by e-mail at ferc.adr@ferc.gov, or writing to: Dispute Resolution 
Service, Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426.
    (h) Any person who contacts the Dispute Resolution Service Helpline 
is not precluded from filing a formal action with the Commission if 
discussions assisted by the Dispute Resolution Service staff are 
unsuccessful at resolving the matter. A caller may terminate the use of 
alternative dispute resolution procedures at any time.

PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND 
NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONNENT UNDER 
SECTION 7 OF THE NATURAL GAS ACT

0
1. The authority citation for Part 1b continues to read as follows:

    Authority:  15 U.S.C. 717-717w.

0
2. In Sec.  157.203, paragraph (d)(1)(iii)(D) is revised to read as 
follows and paragraph (d)(1)(iv) is removed.

Sec.  157.203  Blanket certification.

* * * * *
    (d) Landowner Notification
    (1) * * *
    (iii) * * *
    (D) Instruct landowners that, if they are still not satisfied with 
the response, they may contact the Commission's Dispute Resolution 
Service at the current telephone number and e-mail address, which is to 
be provided in the notification.
* * * * *
[FR Doc. 2010-9125 Filed 4-23-10; 8:45 am]
BILLING CODE 6717-01-P