80_FR_67513 80 FR 67302 - Standards for Business Practices of Interstate Natural Gas Pipelines; Coordination of the Scheduling Processes of Interstate Natural Gas Pipelines and Public Utilities

80 FR 67302 - Standards for Business Practices of Interstate Natural Gas Pipelines; Coordination of the Scheduling Processes of Interstate Natural Gas Pipelines and Public Utilities

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 80, Issue 211 (November 2, 2015)

Page Range67302-67312
FR Document2015-27806

The Federal Energy Regulatory Commission (Commission) is amending its regulations to incorporate by reference the latest version (Version 3.0) of seven business practice standards adopted by the Wholesale Gas Quadrant of the North American Energy Standards Board (NAESB) applicable to interstate natural gas pipelines. These updated business practice standards contain and supplement the revisions to the NAESB scheduling standards accepted by the Commission in Order No. 809 as part of the Commission's efforts to harmonize gas-electric scheduling coordination, and are required to be implemented on April 1, 2016, the same date as the regulations adopted in Order No. 809. In addition, the updated standards revise the codes used to identify receipt and delivery locations in the Index of Customers. Further, for consistency with the revisions to the Index of Customers, the Commission is also amending its regulations to make conforming changes to the Commission's regulations on interstate natural gas pipeline filings and postings.

Federal Register, Volume 80 Issue 211 (Monday, November 2, 2015)
[Federal Register Volume 80, Number 211 (Monday, November 2, 2015)]
[Rules and Regulations]
[Pages 67302-67312]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27806]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 157, 260, and 284

[Docket Nos. RM96-1-038 and RM14-2-003; Order No. 587-W]


Standards for Business Practices of Interstate Natural Gas 
Pipelines; Coordination of the Scheduling Processes of Interstate 
Natural Gas Pipelines and Public Utilities

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
amending its regulations to incorporate by reference the latest version 
(Version 3.0) of seven business practice standards adopted by the 
Wholesale Gas Quadrant of the North American Energy Standards Board 
(NAESB) applicable to interstate natural gas pipelines. These updated 
business practice standards contain and supplement the revisions to the 
NAESB scheduling standards accepted by the Commission in Order No. 809 
as part of the Commission's efforts to harmonize gas-electric 
scheduling coordination, and are required to be implemented on April 1, 
2016, the same date as the regulations adopted in Order No. 809. In 
addition, the updated standards revise

[[Page 67303]]

the codes used to identify receipt and delivery locations in the Index 
of Customers. Further, for consistency with the revisions to the Index 
of Customers, the Commission is also amending its regulations to make 
conforming changes to the Commission's regulations on interstate 
natural gas pipeline filings and postings.

DATES: This rule will become effective December 2, 2015. Implementation 
of these standards is required on April 1, 2016. The incorporation by 
reference of certain publications listed in this rule is approved by 
the Director of the Federal Register as of December 2, 2015.

FOR FURTHER INFORMATION CONTACT:
    Stanley Wolf (technical issues), Office of Energy Policy and 
Innovation, Federal Energy Regulatory Commission, 888 First Street NE., 
Washington, DC 20426, Telephone: (202) 502-6841, Email: 
[email protected].
    Oscar F. Santillana (technical issues), Office of Energy Market 
Regulation, Federal Energy Regulatory Commission, 888 First Street NE., 
Washington, DC 20426, Telephone: (202) 502-6392,Email: 
[email protected].
    Gary D. Cohen (legal issues), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, Telephone: (202) 502-8321,Email: [email protected].

SUPPLEMENTARY INFORMATION:

Order No. 587-W

Final Rule

Table of Contents

 
 
                                                               Paragraph
                                                                Numbers
 
I. Background...............................................           4
II. Discussion..............................................          12
    A. Incorporation by Reference of the NAESB Standards....          12
        1. The NAESB WGQ Version 3.0 Business Practice                12
         Standards..........................................
        2. NAESB's Process..................................          14
        3. NOPR Proposal....................................          15
        4. Comments.........................................          16
        5. Commission Determination.........................          17
        6. Required Compliance Filings......................          18
    B. Use of Proprietary Codes To Replace Common Codes.....          19
        1. NOPR Proposal....................................          19
        2. Comments.........................................          21
        3. Commission Determination.........................          22
    C. Index of Customers...................................          24
        1. Filing Format....................................          24
            a. NOPR Proposal................................          24
            b. Comment......................................          25
            c. Commission Determination.....................          26
        2. Index of Customers Instruction Manual............          27
            a. NOPR Proposal................................          27
            b. Comments.....................................          28
            c. Commission Determination.....................          31
    D. Cross-References/Conforming Changes..................          36
        1. NOPR Proposal....................................          36
        2. Comments.........................................          37
        3. Commission Determination.........................          38
III. Implementation Schedule................................          40
IV. Notice of Use of Voluntary Consensus Standards..........          43
V. Incorporation By Reference...............................          45
VI. Information Collection Statement........................          47
VII. Environmental Analysis.................................          53
VIII. Regulatory Flexibility Act............................          54
IX. Document Availability...................................          56
X. Effective Date and Congressional Notification............          59
 

Order No. 587-W

Final Rule

(Issued October 16, 2015)

    1. In this final rule, the Federal Energy Regulatory Commission 
(Commission) amends its regulations at 18 CFR 284.12 to incorporate by 
reference the latest version (Version 3.0) of seven business practice 
standards applicable to interstate natural gas pipelines adopted by the 
Wholesale Gas Quadrant (WGQ) of the North American Energy Standards 
Board (NAESB). Interstate natural gas pipelines are required to 
implement these standards April 1, 2016.
    2. The NAESB WGQ Version 3.0 package of standards includes 
standards governing coordination of the scheduling processes of 
interstate natural gas pipelines and public utilities that the 
Commission incorporated by reference in Docket No. RM14-2-000.\1\ These 
updated business practice standards will replace the earlier version of 
these business practice standards that previously were incorporated by 
reference. The standards also revise the codes used to identify receipt 
and delivery locations in the Index of Customers. In addition, for 
consistency with the revisions to the Index of Customers, the 
Commission is also amending its regulations at 18 CFR 157.14, 157.18, 
260.8, and 284.13 to have receipt and delivery point information in 
various interstate natural gas pipeline filings and postings use the 
same location point names as provided for in the NAESB WGQ Version 3.0 
Standards. Finally, we also are making conforming changes to 18 CFR 
284.126.
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    \1\ Coordination of the Scheduling Processes of Interstate 
Natural Gas Pipelines and Public Utilities, Order No. 809, Final 
Rule, 80 FR 23197 (Apr. 24, 2015), FERC Stats. & Regs. ] 31,368 
(Order No. 809).

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[[Page 67304]]

    3. In addition, the Commission terminates, as moot, the proceeding 
in Docket No. RM14-2-003, as the standard corrections NAESB filed in 
Docket No. RM14-2-003 are included as part of the Version 3.0 standards 
that the Commission is incorporating by reference here, with the same 
implementation date of April 1, 2016.

I. Background

    4. Since 1996, the Commission has adopted regulations to 
standardize the business practices and communication methodologies of 
interstate natural gas pipelines to create a more integrated and 
efficient pipeline grid. These regulations have been promulgated in the 
Order No. 587 series of orders,\2\ wherein the Commission has 
incorporated by reference standards for interstate natural gas pipeline 
business practices and electronic communications that were developed 
and adopted by NAESB's WGQ. Upon incorporation by reference, this 
version of these standards will become part of the Commission's 
regulations and compliance by interstate natural gas pipelines will 
become mandatory and will replace the earlier version of these 
standards that the Commission previously incorporated by reference in 
2012.\3\
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    \2\ This series of orders began with the Commission's issuance 
of Standards for Business Practices of Interstate Natural Gas 
Pipelines, Order No. 587, FERC Stats. & Regs. ] 31,038 (1996).
    \3\ Standards for Business Practices of Interstate Natural Gas 
Pipelines, Final Rule, Order No. 587-V, FERC Stats. & Regs. ] 31,332 
(2012) (Order No. 587-V).
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    5. On July 23, 2013, as corrected on July 25, 2013, NAESB filed a 
report informing the Commission that it had adopted and ratified 
Version 2.1 of its business practice standards applicable to natural 
gas pipelines. NAESB reported that the WGQ reviewed, at the request of 
the industry, the necessity of maintaining the current location common 
codes system to determine if the system provides a significant benefit 
to the industry and should be continued.\4\ NAESB (in its previous 
corporate incarnation as the Gas Industry Standards Board) adopted a 
system of registering common codes to identify interconnection points 
between pipelines using a single code for the shared point. The 
industry chose an independent third party to assign and maintain the 
common code database.
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    \4\ NAESB Version 2.1 Report dated July 23, 2013 (NAESB Version 
2.1 Report). As explained in the NAESB Version 2.1 Report, this 
request was received by NAESB in November 2010 and was included by 
the NAESB Board of Directors in the 2011 WGQ Annual Plan as part of 
Item No. 7 and as part of the 2012 WGQ Annual Plan Item No. 8. See 
NAESB Version 2.1 Report at 3. The proposed modifications made in 
response to this request were developed by the WGQ's Business 
Practices Subcommittee and jointly by the Information Requirements/
Technical Subcommittees.
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    6. NAESB reported that, after extensive discussions, the WGQ 
reached the conclusion that the NAESB WGQ Standards should no longer 
support the location common codes system, as the NAESB membership 
concluded that the system provided little commercial benefit to the 
industry at large. Consistent with this determination, the Version 2.1 
Standards added seven new standards, modified six standards, and 
deleted three standards to match up with a transition from common codes 
to the proprietary codes used by interstate pipelines to identify 
points.\5\ These will be the codes assigned by the transportation 
service providers for the identification of locations.\6\ The standards 
require pipelines to post sufficient information on their Web sites to 
permit shippers and the Commission to identify the interconnection 
points between pipelines that were previously identified through the 
common codes.
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    \5\ NAESB Version 2.1 Report at 2.
    \6\ Id. at 4.
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    7. Additionally, as requested by the Commission in Order No. 587-
V,\7\ NAESB modified the standards to include reporting requirements 
for ``Design Capacity'' for each location by transportation service 
providers.\8\ Other changes to the existing standards were made at the 
request of industry. These include changes to the NAESB WGQ Additional 
Standards, Nominations Related Standards, Flowing Gas Related 
Standards, Invoicing Related Standards, Quadrant Electronic Delivery 
Mechanism Standards, Capacity Release Related Standards, and Data Set 
Standards.\9\ NAESB further reported on the changes it made to the 
NAESB WGQ Interpretations and Contracts and Manuals that the Commission 
has declined to incorporate by reference in past Final Rules.\10\ NAESB 
also reported on all the minor corrections it made to the standards 
since Version 2.0 of the Standards.\11\ Finally, NAESB reported on 
items that it considered changing but on which it took no action.\12\
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    \7\ See supra n.3.
    \8\ NAESB Version 2.1 Report at 2-3.
    \9\ Id. at 3.
    \10\ See, e.g., Order No. 587-V, FERC Stats. & Regs. ] 31,332 at 
n.11.
    \11\ NAESB Version 2.1 Report at 18.
    \12\ Id. at 17-18.
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    8. On November 14, 2014, NAESB filed a report informing the 
Commission that it had adopted and ratified Version 3.0 of its business 
practice standards applicable to natural gas pipelines. NAESB reported 
that all of the modifications made in the Version 2.1 Standards are 
included in the Version 3.0 Standards and thus no action is needed on 
the Version 2.1 Standards.\13\ The Version 3.0 Standards introduced 
modifications to the standards to support efforts to harmonize gas-
electric scheduling coordination that NAESB had separately filed and 
that the Commission incorporated by reference in Order No. 809.\14\ In 
addition, the Version 3.0 Standards contain revisions to the capacity 
release standards regarding posting requirements for offers to purchase 
released capacity that were the subject of the Commission's order to 
show cause in Docket No. RP14-442-000.\15\ Other revisions in the 
Version 3.0 Standards are: (1) Revisions to the standards to define 
``Operating Capacity'' and ``Design Capacity'' in response to the 
Commission request in Order No. 587-V; \16\ (2) elimination of the WGQ 
Interpretations, which the Commission has long declined to incorporate 
by reference; (3) modifications to standards to reflect the elimination 
of the WGQ's interpretations of the standards; (4) modifications for 
maintenance purposes, which includes changes to eliminate the 
appearance of the electronic data interchange in the imbalance trading 
process; (5) modifications to reflect new data elements; and (6) edits 
for clarity and to increase user-friendliness. The Version 3.0 
standards have also been revised to include 29 minor corrections.\17\
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    \13\ NAESB Version 3.0 Report dated November 14, 2014 (NAESB 
Version 3.0 Report) at 2.
    \14\ See supra n.1.
    \15\ Posting of Offers to Purchase Capacity, 146 FERC ] 61,203, 
at P 6 (2014) (Show Cause Order); B-R Pipeline Co., 149 FERC ] 
61,031 (2014) (order accepting compliance filings).
    \16\ Order No. 587-V, FERC Stats. & Regs. ] 31,332 at P 8.
    \17\ The NAESB Version 3.0 Report also provides information on 
other NAESB activities and tools unrelated to standards development. 
A complete listing of all the revisions made in NAESB's WGQ Version 
3.0 Business Practice Standards to NAESB's prior business practice 
standards can be found in the Appendix to the Version 3.0 NOPR, 80 
FR 43987, FERC Stats. & Regs. ] 32,708 at 34,767.
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    9. On July 7, 2015, NAESB filed a report informing the Commission 
that it made errata corrections to the WGQ Version 3.0 Business 
Practice Standards.\18\ These corrections incorporated a 9:00 a.m. 
Central Clock Time (CCT) start to the gas operating day, consistent 
with the Commission's findings in Order No. 809 \19\ and also corrected 
other minor errors.
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    \18\ NAESB adopted two minor corrections, MC15009 and MC15012, 
approved on April 30, 2015 and May 29, 2015, respectively.
    \19\ Order No. 809, FERC Stats. & Regs. ] 31,368 at P 171.

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[[Page 67305]]

    10. On July 16, 2015, the Commission issued a Notice of Proposed 
Rulemaking (Version 3.0 NOPR) proposing to amend its regulations to 
incorporate by reference, with certain enumerated exceptions, the NAESB 
Version 3.0 business practice standards (referenced above) applicable 
to natural gas pipelines.\20\ In addition, the Version 3.0 NOPR 
proposed certain conforming changes to the Commission's regulations at 
18 CFR 157.14 and 157.18 (dealing with exhibits) and 260.8 (dealing 
with system flow diagrams).
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    \20\ Standards for Business Practices of Interstate Natural Gas 
Pipelines, Notice of Proposed Rulemaking, 80 FR 43979 (July 24, 
2015), FERC Stats. & Regs. ] 32,708 (July 16, 2015) (Version 3.0 
NOPR).
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    11. In response to the Version 3.0 NOPR, comments were filed by 
three commenters. All three commenters express support for the 
Commission's proposal to incorporate by reference NAESB's Version 3.0 
business practice standards. Tennessee Valley Authority (TVA) comments 
that it fully supports the full package of revisions reflected in the 
NAESB Version 3.0 Standards that are subject to the NOPR. Interstate 
Natural Gas Association of America (INGAA) comments that it ``supports 
the Commission's proposal to amend its regulations to incorporate by 
reference Version 3.0 of the business practice standards adopted by 
[NAESB's WGQ] applicable to natural gas pipelines,'' subject to a few 
suggested modifications.\21\ It supports the Version 3.0 NOPR's 
proposal to introduce the use of proprietary location codes and to 
discontinue the use of industry common codes, but it offers suggested 
minor modifications to the regulatory text accomplishing this 
transition. Southern Star Central Gas Pipeline (Southern Star), 
likewise, comments that it ``supports the incorporation by reference of 
the NAESB WGQ Version 3.0 business practice standards in 18 CFR Sec.  
284.12 as proposed.'' \22\ ``[H]owever, Southern Star asks the 
Commission to clarify its proposed corresponding changes to 18 CFR 
157.14, 157.18, 260.8, and 284.13 to avoid confusion and ensure 
consistent compliance with the regulations.'' \23\ In the discussion 
below, we will address the comments in greater detail. In addition, on 
September 25, 2015, NAESB filed a report with the Commission in Docket 
No. RM96-1-038 announcing that it had made additional minor 
corrections.\24\ In this Final Rule, the version of the NAESB WGQ 
business practice standards that we are incorporating by reference into 
our regulations will include these additional minor corrections.
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    \21\ INGAA at 1.
    \22\ Southern Star at 2.
    \23\ Id.
    \24\ MC15003, MC15004, and MC15005, which were adopted by the 
WGQ Executive Committee on April 9, 2015.
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II. Discussion

A. Incorporation by Reference of the NAESB Standards

1. The NAESB WGQ Version 3.0 Business Practice Standards
    12. The NAESB WGQ Version 3.0 Business Practice Standards made a 
number of changes to the earlier version of those standards that the 
Commission previously incorporated by reference in 2012 in Order No. 
587-V.\25\ Notable among these changes was a change, made at the 
request of the industry, to introduce the use of proprietary codes to 
identify the location of points of receipt and delivery. Consistent 
with this determination, the Version 2.1 Standards added seven new 
standards, modified six standards, and deleted three standards to match 
up with a transition from common codes to proprietary codes. Under the 
new standards, each transportation service provider assigns the 
proprietary codes it will use to identify the locations of its points 
of receipt and delivery. The standards require pipelines to post 
sufficient information on their Web sites to permit shippers and the 
Commission to identify the interconnection points between pipelines 
that were previously identified through the common codes.
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    \25\ Standards for Business Practices of Interstate Natural Gas 
Pipelines, Order No. 587-V, FERC Stats. & Regs. ] 31,332 (2012).
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    13. Additionally, as requested by the Commission in Order No. 587-
V,\26\ NAESB modified the standards to include reporting requirements 
for ``Design Capacity'' for each location by transportation service 
providers. Other changes to the existing standards were made at the 
request of industry. These include changes to the NAESB WGQ Additional 
Standards, Nominations Related Standards, Flowing Gas Related 
Standards, Invoicing Related Standards, Quadrant Electronic Delivery 
Mechanism Standards, Capacity Release Related Standards, and Data Set 
Standards. NAESB further reports on the changes it made to the NAESB 
WGQ Interpretations and Contracts and Manuals that the Commission has 
declined to incorporate by reference in past final rules.\27\ NAESB's 
Version 3.0 report also identified the minor corrections it made to the 
standards since Version 2.0 of the Standards.
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    \26\ Id. P 30.
    \27\ See, e.g., id. n.11.
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2. NAESB's Process
    14. NAESB used its consensus procedures to develop and approve the 
Version 3.0 Standards. As the Commission found in Order No. 587, the 
adoption of consensus standards is appropriate because the consensus 
process helps ensure the reasonableness of the standards by requiring 
that the standards draw support from a broad spectrum of industry 
participants representing all segments of the industry. Moreover, since 
the industry itself has to conduct business under these standards, the 
Commission's regulations should reflect those standards that have the 
widest possible support. In section 12(d) of the National Technology 
Transfer and Advancement Act of 1995 (NTT&AA), Congress affirmatively 
requires federal agencies to use technical standards developed by 
voluntary consensus standards organizations, like NAESB, as means to 
carry out policy objectives or activities determined by the agencies 
unless an agency determines that the use of such standards would be 
inconsistent with applicable law or otherwise impractical.
3. NOPR Proposal
    15. In the Version 3.0 NOPR, the Commission proposed to incorporate 
by reference, in its regulations, Version 3.0 of the NAESB WGQ's 
consensus business practice standards, with the exception of NAESB's 
standards specifying the terms of optional model contracts and its 
eTariff-related standards.\28\
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    \28\ Version 3.0 NOPR, 80 FR 43982, FERC Stats. & Regs. ] 32,708 
at P 20.
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4. Comments
    16. As explained above, all of the commenters supported the 
Commission's proposal to incorporate by reference the NAESB WGQ Version 
3.0 business practice standards as proposed in the Version 3.0 
NOPR.\29\
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    \29\ See discussion at P 11, supra.
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5. Commission Determination
    17. After a review of the comments filed in response to the Version 
3.0 NOPR, the Commission is amending Part 284 of its regulations to 
incorporate by reference seven of the NAESB WGQ's Version 3.0 business 
practice standards. Further, as explained in the Version 3.0 NOPR, we 
are not incorporating by reference the NAESB WGQ's optional model 
contracts and eTariff-related

[[Page 67306]]

standards.\30\ In the discussion below, we also will discuss the 
various comments suggesting modifications to the regulatory text 
proposed in the Version 3.0 NOPR in the conforming changes we proposed 
to other provisions of our regulations.
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    \30\ We are also, as discussed in Section II.D below, making a 
number of conforming changes in other provisions of our regulations, 
for consistency with our action here.
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6. Required Compliance Filings
    18. To implement the standards we are incorporating by reference in 
this Final Rule, we will require each interstate natural gas pipeline 
to file a separate tariff record reflecting the changed standards by 
February 1, 2016, to take effect on April 1, 2016, and the natural gas 
pipelines will be required to comply with these standards on and after 
April 1, 2016.\31\
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    \31\ To aid in compliance, promptly after issuance of this Final 
Rule, the Commission will post a sample tariff record on the 
Commission's Web site that may be accessed at http://www.ferc.gov/docs-filing/elibrary.asp. All pipelines are to file their tariff 
records in conformance with this sample tariff record.
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B. Use of Proprietary Codes To Replace Common Codes

1. NOPR Proposal
    19. As explained in the Version 3.0 NOPR, at industry's request, 
NAESB reviewed the location common codes system and concluded that the 
NAESB WGQ Business Practice Standards should no longer support the 
location common codes system, as the NAESB membership concluded that 
the system provided little commercial benefit to the industry at 
large.\32\ The industry determined that having a third party maintain a 
common code database is not worth the expense and effort and revised 
the standards to introduce the use of proprietary codes to identify the 
location of points of receipt and delivery. The revised standards 
include requirements to replace much of the information previously 
contained in the third party database. These standards require 
interstate pipelines to post on their internet Web sites information on 
each of the proprietary points that can be used among other things to 
determine which points are interconnecting points, one of the primary 
reasons for adoption of the common code database.
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    \32\ Version 3.0 NOPR, FERC Stats. & Regs. ] 32,708 at P 4.
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    20. In the Version 3.0 NOPR, the Commission proposed to incorporate 
by reference the standards that revised the prior standards to 
introduce the use of proprietary codes to identify the location of 
points of receipt and delivery and that included requirements for the 
pipelines to post on their Web sites information on each of the 
proprietary points that can be used to determine which points are 
interconnecting points between pipelines.\33\ We also proposed that 
these same codes be used by the Commission in its Index of Customers to 
identify the points on shippers' contracts and we proposed to revise 
Sec.  284.13(c) of the regulations to assure that these provisions 
operate in harmony.\34\ In the NOPR, we proposed to revise the 
Commission's regulations at Sec.  284.13(c)(2)(vi) to reflect the use 
of the term ``location code'' rather than ``industry common code'' to 
identify the location of receipt and delivery points, and we also 
proposed to require pipelines to post information on their internet Web 
site regarding such location points, including the coordinates of each 
point, and an identification of the upstream or downstream entity, if 
any, at that point, and date the point becomes active or inactive.\35\
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    \33\ Id. PP 15-16.
    \34\ Id.
    \35\ Id. at proposed regulatory text for Sec.  284.13(c)(2)(vi). 
(80 FR 43987).
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2. Comments
    21. Southern Star & INGAA both support the Commission's proposal to 
use the term ``location code,'' rather than ``industry common code'' to 
identify the location of receipt and delivery points.\36\ Southern Star 
and INGAA, however, point out that the term ``common code'' recurs in a 
number of places in the Commission's regulations other than in the 
Index of Customers, and contend that, as a result, the Commission 
should establish a separate regulation at 18 CFR 284.13(f) for the 
posting requirement to eliminate the need for repetition.\37\
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    \36\ INGAA at 2. Southern Star at 3.
    \37\ Southern Star at 2-3.
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3. Commission Determination
    22. We will incorporate by reference NAESB's standards requiring 
interstate pipelines to refer to location points using their own 
proprietary code, together with a posting of information regarding 
these codes on the pipelines' Web site, rather than requiring the 
pipelines to maintain a common code database implemented by a third 
party. Given the ability of the Commission and customers to continue to 
identify interconnection points referenced in the Index of Customers 
through the Web site postings, the Commission also will revise its 
regulations governing the filing of the Index of Customers and other 
regulations requiring the specification of location point codes to 
align with the NAESB standards.
    23. We also will adopt Southern Star and INGAA's recommendations to 
modify the regulations to create a separate requirement at 18 CFR 
284.13(f) for the posting of information regarding the location points 
to make cross-reference easier. Consistent with the proposal in the 
Version 3.0 NOPR, we are requiring interstate pipelines to file their 
Index of Customers using the new location names and codes for all 
active points. In addition, as proposed in the Version 3.0 NOPR, we are 
requiring pipelines to maintain and post on their Web sites a complete 
listing of all inactive points. Finally, for the convenience of those 
reviewing past Index of Customers filings, or those wishing to compare 
past Index of Customers filings to newer Index of Customers filings, we 
will post the old common code file for past indices on the Commission's 
Web site prior to April 1, 2016.

C. Index of Customers

1. Filing Format
a. NOPR Proposal
    24. In the Version 3.0 NOPR, we explained that pipelines currently 
file the Index of Customers using a tab-delimited file format 
consistent with Form No. 549B--Index of Customers Instruction 
Manual.\38\ While we did not propose any changes to that formatting in 
the Version 3.0 NOPR, we further explained that,
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    \38\ Version 3.0 NOPR, FERC Stats. & Regs. ] 32,708 at P 17.

    [b]ecause tab-delimited file formats can be difficult and can 
result in errors that impose burdens both on Commission and pipeline 
staff to correct, we also are adding the Index of Customers form to 
the list of forms that are being updated as part of the Commission's 
forms refresh project in Docket No. AD15-11-000 (Forms Project). 
Adding the Index of Customers to the Forms Project will move the 
Commission towards the use of a standard approach for all Commission 
forms that will result in more efficient filing and processing of 
forms.\[\\39\\]\
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    \39\ Id.

b. Comment
    25. TVA comments that, while it was neutral in the past, it has 
come to appreciate that a user-friendly format for the Index of 
Customers is extremely beneficial to TVA in long-range planning. TVA 
asserts that, with growing staff to support the growth of gas-fired 
generation at TVA and counterparties, a user-friendly format for 
locations codes is a beneficial tool to

[[Page 67307]]

avoid potential miscommunication of receipt and delivery points from 
occurring.\40\
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    \40\ TVA at 3.
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c. Commission Determination
    26. The transition from the current tab delimited file format for 
the Index of Customers information reported on Form No. 549B to a more 
up-to-date format will improve the efficient filing and processing of 
this information. As we explained in the Version 3.0 NOPR, the 
Commission issued an order (Forms Project Order) initiating a 
proceeding in Docket No. AD15-11-000 to consider the transition to a 
new filing format for a number of other Commission forms and has 
enlisted the assistance of NAESB in this endeavor.\41\ As we explained 
in Forms Project Order, the current software which the Commission 
requires industry to use for the electronic filing of many of the forms 
(Visual Fox Pro) is no longer supported by its developer.\42\ The 
Commission enlisted NAESB in an effort to transition to an electronic 
filing format based on the use of Extensible Mark-Up Language (XML), 
which NAESB helped to develop for electronic tariff filing.\43\ We 
recognize that NAESB's highest priority is to develop the XML standards 
for the forms to replace the unsupported and outdated Visual Fox Pro 
software. While the Index of Customers can still be filed in the 
current tab delimited format, we agree with TVA that continued use of 
this format is inefficient for both the industry and the Commission. 
Accordingly, we request that NAESB consider revisions to the Index of 
Customers as part of their ongoing deliberations.
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    \41\ Electronic Filing Protocols for Commission Forms, 151 FERC 
] 61,025 (2015).
    \42\ Id. P 1.
    \43\ Electronic Tariff Filings, Order No. 714, FERC Stats. & 
Regs. ] 31,276 (2008).
---------------------------------------------------------------------------

2. Index of Customers Instruction Manual

a. NOPR Proposal

    27. In the Version 3.0 NOPR, the Commission proposed to post on the 
Commission's Web site a revised instruction manual for the filing of 
Form No. 549B--Index of Customers.\44\ As promised, after issuance of 
the Version 3.0 NOPR, the Commission posted the proposed revised 
instruction manual on its Web site. The only proposed changes to the 
instruction manual were to Item ID yj (Point identification Code 
Qualifier) and Item ID yk (Point identification Code) to specify that 
the new proprietary location names and codes were to be used in 
identifying points of receipt and delivery in the Index of Customers.
---------------------------------------------------------------------------

    \44\ Version 3.0 NOPR, FERC Stats. & Regs. ] 32,708 at P 17 & 
n.26.
---------------------------------------------------------------------------

b. Comments

    28. Southern Star and INGAA both suggest that three changes are 
needed to the proposed instruction manual for the Index of Customers: 
\45\ First, in the instructions for Item yh (the Point Identifier 
Code), the commenters suggest that the references to G1-Gas Transaction 
Point 1 and G2-Gas Transaction Point 2 should be deleted as these are 
antiquated codes that are no longer used in the referenced NAESB 
business standard.
---------------------------------------------------------------------------

    \45\ Southern Star at 5-6 and INGAA at 7-9.
---------------------------------------------------------------------------

    29. Second, for Item yj (the Point identification Code Qualifier), 
the commenters suggest that the instructions should simply read ``Enter 
95'' as all location codes will now be assigned by the pipeline (the 
Transportation Service Provider).
    30. Third, for Item yk (the Point Identification Code), the 
commenters suggest that the instructions should simply read ``Enter the 
Transportation Service Provider's Location (LOC)'' as there is no 
longer an industry common code to enter. INGAA asserts that this item 
should read ``Enter the pipeline's location code.'' It makes this 
suggestion because ``Pipeline'' is the term utilized throughout the 
Instruction Manual.

c. Commission Determination

    31. As to the suggestion to revise the instruction manual to delete 
references to references to G1 and G2 in the instructions for Item yh 
(the Point Identifier Code), we find this suggestion reasonable and 
will make this change.
    32. As to the suggestion to revise the instruction manual to revise 
the instructions for Item yj, we see merit in this suggestion, but 
believe the suggested language would be clearer if it read ``Enter 95 
whenever item yk is the Transmission Service Provider's Location 
(LOC)'' and will revise the instruction manual accordingly.
    33. As to the suggestion to revise the instruction manual to revise 
the instructions for Item yk to read ``Enter the Transmission Service 
Provider's Location (LOC),'' we find this suggestion reasonable and 
will make this change.
    34. As to the suggestion to revise the instruction manual to revise 
the instructions for Item yj to substitute the term ``Pipeline'' in 
lieu of the term ``Transmission Service Provider,'' we are not 
persuaded to make this revision, as the term ``Transmission Service 
Provider'' matches the terminology in the standards we are 
incorporating. As we did after we issued the Version 3.0 NOPR, we will 
post a link to the revised instruction manual on our Web site after 
issuance of this Final Rule.\46\
---------------------------------------------------------------------------

    \46\ To aid in compliance, promptly after issuance of this Final 
Rule, a Revised Instruction Manual for filing Form No. 549B, Index 
of Customers, will be posted on the Commission's Web site and may be 
accessed at http://www.ferc.gov/industries/gas/indus-act/pipelines/standards.asp. All pipelines are to file their Index of Customers in 
accordance with the instructions provided in this manual.
---------------------------------------------------------------------------

    35. Finally, our review of the comments also brought to our 
attention that Item yi (Point Name) also needs revision to reflect the 
transition to the use of proprietary location codes in the Version 3.0 
standards. Thus, the Instructions for Item ID yi will now read as 
follows: ``Enter the Location Name (LOC Name) of the point or 
facility.''

D. Cross-References/Conforming Changes

1. NOPR Proposal
    36. In the Version 3.0 NOPR, the Commission proposed conforming 
changes to reference the new location names and codes at 18 CFR 157.14 
and 18 CFR 157.18 (dealing with exhibits), in 18 CFR 260.8 (dealing 
with system flow diagrams), and in 18 CFR 284.13 (dealing with 
reporting requirements for interstate pipelines).
2. Comments
    37. Along with their comments suggesting that the Commission move 
its proposed regulation at Sec.  284.13(c)(2)(6) into a new subsection 
Sec.  284.13(f), the commenters point out the Commission missed two 
references to common codes in Sec.  284.13(b) and suggest revisions to 
the accompanying cross references proposed in the Version 3.0 NOPR.\47\ 
INGAA further requests two minor additional modifications.\48\ In Sec.  
157.14(a), INGAA argues that the Commission should remove the reference 
to Exhibit H(iv) that appears in the proposed regulatory text because 
Exhibit H(iv) no longer exists. In addition, INGAA requests the 
Commission to clarify that it did not intend to delete certain language 
after the asterisks in both Sec. Sec.  157.14(a) and 157.18(c). 
Specifically, INGAA states that the Commission should revise the 
language at the beginning of item 2 of its proposed amendment to Sec.  
157.14(a) to state that ``Section 157.14 is amended by revising the 
introductory language of paragraph (a) to read as follows:'' (emphasis 
added), and insert ``(1)'' before the asterisks. In INGAA's view,

[[Page 67308]]

this would remove any doubt about how much of the existing section is 
being replaced with the new proposed language.
---------------------------------------------------------------------------

    \47\ INGAA at 2-4, Southern Star at 3-4.
    \48\ INGAA at 7.
---------------------------------------------------------------------------

3. Commission Determination
    38. Given the Commission's determination that, as proposed by the 
commenters, the proper provision in which to place the requirement for 
pipelines to use ``location code'' rather than ``industry common code'' 
to identify the location of receipt and delivery points is at 18 CFR 
284.13(f), we will make appropriate cross-references. We agree with 
INGAA that the inclusion of Exhibit H(iv) in the regulatory text of 
proposed Sec.  157.14(a) is in error. Reference to this exhibit was 
deleted in Order No. 699 as an erroneous or outdated reference.\49\ 
Thus, we will delete any reference to Exhibit H(iv) in the regulatory 
text we are promulgating in this Final Rule. In addition, as requested, 
we will clarify that our revisions to Sec.  157.14(a) and Sec.  
157.18(c) are not intended to delete language that follows later in 
these provisions.
---------------------------------------------------------------------------

    \49\ Conforming Changes, Order No. 699, FERC Stats. & Regs. ] 
31,254 at P 10 (cross-referenced at 120 FERC ] 61,134 (2007)).
---------------------------------------------------------------------------

    39. Finally, as a result of the INGAA comment that we needed to 
make additional conforming changes that were overlooked, we also will 
make a conforming change to 18 CFR 284.126 to remove the reference to 
common codes. Intrastate pipelines filing Form No. 549D should identify 
their location codes and names in their list of jurisdictional points 
of receipt and delivery.

III. Implementation Schedule

    40. In the Version 3.0 NOPR, the Commission stated that we 
anticipated acting on the proposed rule in order to permit these 
standards to become effective April 1, 2016 at the same time as the 
Gas-Electric Harmonization standards, with compliance filings due 
February 1, 2016.\50\ We explained that requiring implementation of the 
updated business practice standards and the Gas-Electric Harmonization 
standards on the same date should reduce the compliance burden on the 
pipelines and avoid confusion.\51\ We also explained our policies on 
tariff filings and on waiver requests.\52\
---------------------------------------------------------------------------

    \50\ Version 3.0 NOPR, FERC Stats. & Regs. ] 32,708 at P 23.
    \51\ Id.
    \52\ Id. PP 23-27.
---------------------------------------------------------------------------

    41. None of the comments took issue with the Commission's proposed 
implementation schedule. Nor did the comments take issue or seek 
clarification with regard to the Commission's explanation of its 
policies on tariff filings and on waiver requests. We are not modifying 
these policies in this Final Rule and stand by the explanation of those 
policies we made in the Version 3.0 NOPR. The Commission will require 
interstate natural gas pipelines to comply with the revised NAESB 
standards that we are incorporating by reference in this Final Rule 
beginning on April 1, 2016. Thus, among other requirements, when 
pipelines make their Index of Customers filing for the second quarter 
of 2016 and thereafter they should do so using the new location names 
and codes for all active points. We are requiring this implementation 
schedule to give the interstate natural gas pipelines subject to these 
standards adequate time to implement these changes. In addition, the 
interstate natural gas pipelines must file tariff records to reflect 
the changed standards by February 1, 2016.
    42. In addition, consistent with the requirements in Order Nos. 
587-V and 809,\53\ the Commission is including the following compliance 
filing requirements to increase the transparency of the pipelines' 
incorporation by reference of the NAESB WGQ Standards so that shippers 
and the Commission will know which tariff provision(s) implements each 
standard as well as the status of each standard.
---------------------------------------------------------------------------

    \53\ Order No. 587-V, FERC Stats. & Regs. ] 31,332 at PP 36-37; 
Order No. 809, FERC Stats. & Regs. ] 31,368 at P 169.
---------------------------------------------------------------------------

    (1) The pipelines must designate a single tariff record under which 
every NAESB standard currently incorporated by reference by the 
Commission is listed.\54\ This section should be a separate tariff 
record under the Commission's electronic tariff filing requirement and 
should be filed electronically using the eTariff portal using the Type 
of Filing Code 580. The Commission will post on its eLibrary Web site 
(under Docket No. RM96-1-038) a sample tariff record, to provide filers 
an illustrative example to aid them in preparing their compliance 
filings; \55\
---------------------------------------------------------------------------

    \54\ See supra n.31.
    \55\ Id.
---------------------------------------------------------------------------

    (2) For each standard, each pipeline must specify in the tariff 
record a list of all the NAESB standards currently incorporated by 
reference by the Commission:

    (a) whether the standard is incorporated by reference;
    (b) for those standards not incorporated by reference, the 
tariff provision that complies with the standard; \56\ and
---------------------------------------------------------------------------

    \56\ For example, pipelines are required to include the full 
text of the NAESB nomination and capacity release timeline standards 
(WGQ Standards 1.3.2(i-vi) and 5.3.2) in their tariffs. See, e.g., 
Standards for Business Practices of Interstate Natural Gas 
Pipelines, Order No. 587-U, FERC Stats. & Regs. ] 31,307, at P 39 & 
n.42 (2010). The pipeline would indicate which tariff provision 
complies with each of these standards.
---------------------------------------------------------------------------

    (c) a statement identifying any standards for which the pipeline 
has been granted a waiver, extension of time, or other variance with 
respect to compliance with the standard.\57\
---------------------------------------------------------------------------

    \57\ Shippers can use the Commission's electronic tariff system 
to locate the tariff record containing the NAESB standards, which 
will indicate the docket in which any waiver or extension of time 
was granted.

    (3) If the pipeline is requesting a continuation of an existing 
waiver or extension of time, it must include a table in its transmittal 
letter that states the standard for which a waiver or extension of time 
was granted, and the docket number or order citation to the proceeding 
in which the waiver or extension was granted.

IV. Notice of Use of Voluntary Consensus Standards

    43. Office of Management and Budget Circular A-119 (section 11) 
(February 10, 1998) provides that federal agencies should publish a 
request for comment in a NOPR when the agency is seeking to issue or 
revise a regulation proposing to adopt a voluntary consensus standard 
or a government-unique standard. In this Final Rule, the Commission is 
amending its regulations to incorporate by reference voluntary 
consensus standards developed by NAESB's WGQ. In section 12(d) of 
NTT&AA, Congress affirmatively requires federal agencies to use 
technical standards developed by voluntary consensus standards 
organizations to carry out policy objectives or activities determined 
by the agencies unless use of such standards would be inconsistent with 
applicable law or otherwise impractical.\58\
---------------------------------------------------------------------------

    \58\ Pub L. No. 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C. 
272 note (1997).
---------------------------------------------------------------------------

    44. In section 12(d) of NTT&AA, Congress affirmatively requires 
federal agencies to use technical standards developed by voluntary 
consensus standards organizations to carry out policy objectives or 
activities determined by the agencies unless use of such standards 
would be inconsistent with applicable law or otherwise impractical.

V. Incorporation by Reference

    45. The Office of the Federal Register requires agencies 
incorporating material by reference in final rules to discuss, in the 
preamble of the final rule, the ways that the materials it incorporates 
by

[[Page 67309]]

reference are reasonably available to interested parties and how 
interested parties can obtain the materials.\59\ The regulations also 
require agencies to summarize, in the preamble of the final rule, the 
material it incorporates by reference. The seven NAESB standards being 
incorporated by reference in this Final Rule can be summarized as 
follows:
---------------------------------------------------------------------------

    \59\ 1 CFR 51.5. See Incorporation by Reference, 79 FR 66267 
(Nov. 7, 2014).

     Additional Standards (Version 3.0, November 14, 2014, 
with minor corrections applied through June 29, 2015). These 
standards cover general areas or standards applicable to multiple 
business activities, such as creditworthiness and gas/electric 
operational communications.
     Nominations Related Standards (Version 3.0, November 
14, 2014, with minor corrections applied through June 29, 2015). 
These standards define the business processes used to schedule 
natural gas service on pipelines.
     Flowing Gas Related Standards (Version 3.0, November 
14, 2014, with minor corrections applied through June 29, 2015). 
These standards define the business processes related to the 
communication of entitlement rights to flowing gas at a location, 
the entitlement rights on a contractual basis, the management of 
imbalances, and the measurement and gas quality information of the 
actual flow of gas.
     Invoicing Related Standards (Version 3.0, November 14, 
2014, with minor corrections applied through June 29, 2015). These 
standards define the business process for the communication of 
charges for services rendered (Invoice), communication of details 
about funds rendered in payment for services rendered (Payment 
Remittance), and communication of the financial status of a 
customer's account (Statement of Account).
     Quadrant Electronic Delivery Mechanism Related 
Standards (Version 3.0, November 14, 2014, with minor corrections 
applied through June 29, 2015). These standards establish the 
framework for the electronic dissemination and communication of 
information between parties in the North American wholesale gas 
marketplace for EDI/EDM transfers, batch flat file/EDM transfers, 
informational postings Web sites, EBB/EDM and interactive flat file/
EDM.
     Capacity Release Related Standards (Version 3.0, 
November 14, 2014, with minor corrections applied through June 29, 
2015). These standards define the business processes for 
communication of information related to the release or transfer of 
any portion of a transmission service requester's contract rights 
for transportation on pipelines.
     Internet Electronic Transport Related Standards 
(Version 3.0, November 14, 2014, with minor corrections applied 
through June 29, 2015). These standards define the implementation of 
various technologies necessary to communicate transactions and other 
electronic data using standard protocols for electronic commerce 
over the internet between NAESB trading partners.

    46. Our regulations provide that copies of the NAESB standards 
incorporated by reference may be obtained from the North American 
Energy Standards Board, 801 Travis Street, Suite 1675, Houston, TX 
77002, Phone: (713) 356-0060. NAESB's Web site is at http://www.naesb.org/. Copies may be inspected at the Federal Energy 
Regulatory Commission, Public Reference and Files Maintenance Branch, 
888 First Street NE., Washington, DC 20426, Phone: (202) 502-8371, 
http://www.ferc.gov.\60\ The procedures utilized by NAESB make its 
standards reasonably available to those affected by the Commission 
regulations.\61\ Participants can join NAESB, for an annual membership 
cost of $7,000, which entitles them to full participation in NAESB and 
enables them to obtain these standards at no cost.\62\ Non-members may 
obtain the Individual Standards Manual or Booklets for each standard by 
email for $250 per manual or booklet, which in the case of these 
standards would total $1,000.\63\ Nonmembers also may obtain the 
complete set of Standards Manuals, Booklets, and Contracts on CD for 
$2,000. NAESB also provides a free electronic read-only version of the 
standards for a three business day period or, in the case of a 
regulatory comment period, through the end of the comment period.\64\ 
In addition, NAESB considers requests for waivers of the charges on a 
case by case basis based on need.
---------------------------------------------------------------------------

    \60\ 18 CFR 284.12.
    \61\ As a private, consensus standards developer, NAESB needs 
the funds obtained from its membership fees and sales of its 
standards to finance the organization. The parties affected by these 
Commission regulations generally are highly sophisticated and have 
the means to acquire the information they need to effectively 
participate in Commission proceedings.
    \62\ North American Energy Standards Board Membership 
Application, https://www.naesb.org/pdf4/naesbapp.pdf.
    \63\ NAESB Materials Order Form, https://www.naesb.org//pdf/ordrform.pdf.
    \64\ Procedures for non-members to evaluate work products before 
purchasing, https://www.naesb.org/misc/NAESB_Nonmember_Evaluation.pdf. See Incorporation by Reference, 79 
FR at 66271, n. 51 & 53 (Nov. 7, 2014) (citing to NAESB's procedure 
of providing ``no-cost, no-print electronic access,'' NAESB Comment, 
at 1, available at http://www.regulations.gov/#!documentDetail;D=OFR-2013-0001-0023).
---------------------------------------------------------------------------

VI. Information Collection Statement

    47. The collections of information for this Final Rule are being 
submitted to the Office of Management and Budget (OMB) for review under 
section 3507(d) of the Paperwork Reduction Act of 1995 \65\ and OMB's 
implementing regulations.\66\ OMB must approve information collection 
requirements imposed by agency rules. The burden estimates for this 
Final Rule are for one-time implementation of the information 
collection requirements of this Final Rule (including tariff filing, 
documentation of the process and procedures, and IT work), and ongoing 
burden.
---------------------------------------------------------------------------

    \65\ 44 U.S.C. 3507(d).
    \66\ 5 CFR 1320.
---------------------------------------------------------------------------

    48. The Commission solicits comments from the public on the 
Commission's need for this information, whether the information will 
have practical utility, the accuracy of the burden estimates, 
recommendations 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 are for implementing the information 
collection requirements of this Final Rule. The Commission asks that 
any revised burden estimates submitted by commenters include the 
details and assumptions used to generate the estimates.
    49. The collections of information related to this Final Rule fall 
under FERC-545 (Gas Pipeline Rates: Rate Change (Non-Formal)) \67\ and 
FERC-549C (Standards for Business Practices of Interstate Natural Gas 
Pipelines).\68\ The following estimates of reporting burden are related 
only to this Final Rule and include the costs to pipelines to comply 
with the Commission's directives in this Final Rule. The burden 
estimates are primarily related to start-up to implement these 
standards and regulations and will not result in ongoing costs.
---------------------------------------------------------------------------

    \67\ FERC-545 covers rate change filings made by natural gas 
pipelines, including tariff changes.
    \68\ FERC-549C covers Standards for Business Practices of 
Interstate Natural Gas Pipelines.

[[Page 67310]]



                                                      One-Time Effects of NOPR in Docket RM96-1-038
                                                                        [Rounded]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Number of    Annual  number                                              Total annual burden       Cost per
                                         respondents    of responses    Total number   Average burden and  cost  hours and total  annual    respondent
                                            \69\       per respondent   of responses         per response                  cost              \70\ ($)
                                                  (1)             (2)     (1)*(2)=(3)  (4).....................  (3)*(4)=(5)............         (5)/(1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-545A \71\.......................             165               1             165  10 hrs.; $837...........  1,650 hrs.; $138,056...            $837
FERC-549C \72\.......................             165               1             165  22 hrs.; $1,841.........  3,630 hrs.; $303,722...          $1,841
                                      ------------------------------------------------------------------------------------------------------------------
    Totals...........................  ..............  ..............  ..............  ........................  5,280 hrs.; $441,778...
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Information Collection Costs: The Commission estimates the average 
annualized cost for all respondents to be the following:
---------------------------------------------------------------------------

    \69\ The number of respondents is the number of entities in 
which a change in burden from the current standards to the proposed 
exists, not the total number of entities from the current or 
proposed standards that are applicable.
    \70\ Wage data is based on the Bureau of Labor Statistics data 
for 2012 (``May 2012 National Industry-Specific Occupational 
Employment and Wage Estimates, [for] Sector 22--Utilities'' at 
http://bls.gov/oes/current/naics2_22.htm) and is compiled for the 
top 10 percent earned. For the estimate of the benefits component, 
see http://www.bls.gov/news.release/ecec.nr0.htm.
    \71\ The mean hourly cost of tariff filings and implementation 
for interstate natural gas pipelines is $83.67. This represents the 
average wage (salary and benefits for 2,080 annual work-hours) of 
the following occupational categories: ``Legal'' ($128.02 per hour), 
``Computer Analyst'' ($83.50 per hour), and ``Office and 
Administrative'' ($39.49 per hour). Wage data is available from the 
Bureau of Labor Statistics at http://bls.gov/oes/current/naics2_22.htm and is compiled for the top 10 percent earned. For the 
estimate of the benefits component, see http://www.bls.gov/news.release/ecec.nr0.htm.
    \72\ The mean hourly cost of tariff filings and implementation 
for interstate natural gas pipelines is $83.67. It is composed of 
the skill sets and related hourly costs described above.

------------------------------------------------------------------------
                                             FERC-545        FERC-549C
------------------------------------------------------------------------
Annualized Capital/Startup Costs........        $138,056        $303,722
Annualized Costs (Operations &                       N/A             N/A
 Maintenance)...........................
                                         -------------------------------
    Total Annualized Costs..............        $138,056        $303,722
------------------------------------------------------------------------
Total Cost for all Respondents = $441,778.

    OMB regulations require OMB to approve certain information 
collection requirements imposed by agency rule. The Commission is 
submitting notification of this Final Rule to OMB. These information 
collections are mandatory requirements.
    Title: FERC-545,\73\ Gas Pipeline Rates: Rates Change (Non-Formal); 
FERC-549C, Standards for Business Practices of Interstate Natural Gas 
Pipelines
---------------------------------------------------------------------------

    \73\ In the supporting statement for the NOPR, we submitted Gas 
and Pipeline Rates: Rate Changes (non-formal) under the temporary 
collection no. FERC-545A to ensure timely submission to OMB as 
another unrelated item was pending OMB review under FERC-545 (and 
only one item per collection can be pending at OMB).
---------------------------------------------------------------------------

    Action: Information collections.
    OMB Control Nos.: 1902-0154, 1902-0174
    Respondents: Business or other for profit (i.e., Natural Gas 
Pipelines, applicable to only a few small businesses). Although the 
intraday reporting requirements will affect electric plant operators, 
the Commission is not imposing the reporting burden of adopting these 
standards on those entities.
    Frequency of Responses: One-time implementation (business 
procedures, capital/start-up).
    50. Internal Review: The Commission has reviewed the proposed 
business practice standards of natural gas pipelines and has determined 
that the revisions the Commission makes in this Final Rule to its 
regulations are necessary to establish more efficient coordination 
between the natural gas and electric industries. Requiring such 
information ensures both a common means of communication and common 
business practices to eliminate miscommunication for participants 
engaged in the sale of electric energy at wholesale and the 
transportation of natural gas. These requirements conform to the 
Commission's plan for efficient information collection, communication, 
and management within the natural gas pipeline industry. 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.
    51. 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: 
Ellen Brown, Office of the Executive Director, email: 
[email protected], phone: (202) 502-8663, fax: (202) 273-0873].
    52. Comments concerning the collections of information and the 
associated burden estimates should be sent to the Commission 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, telephone: (202) 395-0710, fax: (202) 
395-4718]. For security reasons, comments to OMB should be submitted by 
email to: [email protected]. Comments submitted to OMB should 
include OMB Control Numbers 1902-0154 and 1902-0174.

VII. Environmental Analysis

    53. The Commission concludes that neither an Environmental 
Assessment nor an Environmental Impact Statement is required for this 
Final Rule under section 380.4(a) of the Commission's regulations, 
which provides a categorical exemption for actions that are clarifying, 
corrective, or procedural, or that do not substantively change the 
effect of legislation or regulations being amended, for information 
gathering, analysis, and dissemination, or for the

[[Page 67311]]

sale, exchange, or transportation of natural gas under sections 4, 5, 
and 7 of the Natural Gas Act that require no construction of 
facilities.\74\
---------------------------------------------------------------------------

    \74\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
---------------------------------------------------------------------------

VIII. Regulatory Flexibility Act

    54. The Regulatory Flexibility Act of 1980 (RFA) \75\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
The Small Business Administration (SBA) revised its size standard 
(effective January 22, 2014) for electric utilities from a standard 
based on megawatt hours to a standard based on the number of employees 
including affiliates.\76\
---------------------------------------------------------------------------

    \75\ 5 U.S.C. 601-612.
    \76\ SBA Final Rule on ``Small Business Size Standards: 
Utilities,'' 78 FR 77343 (Dec. 23, 2013).
---------------------------------------------------------------------------

    55. This Final Rule applies only to interstate natural gas 
pipelines, most of which are not small businesses. The Commission 
estimates that approximately 165 interstate pipeline entities are 
potential respondents subject to the data reporting requirements of 
FERC-545 and also are subject to data collection FERC 549-C reporting 
requirements. For the year 2012 (the most recent year for which 
information is available), only eleven companies not affiliated with 
larger companies had annual revenues of less than $25.5 million and are 
defined by the SBA as ``small entities.'' These companies constitute 
about seven percent of the total universe of potential respondents. The 
Commission estimates that the one-time implementation cost of the 
proposals in this Final Rule is $441,778 (or $2,677 per entity, 
regardless of entity size).\77\ The Commission does not consider the 
estimated $2,677 impact per entity to be significant. Moreover, these 
requirements are designed to benefit all customers, including small 
businesses that must comply with them. Further, as noted above, 
adoption of consensus standards helps ensure the reasonableness of the 
standards by requiring that the standards draw support from a broad 
spectrum of industry participants representing all segments of the 
industry. Because of that representation and the fact that industry 
conducts business under these standards, the Commission's regulations 
should reflect those standards that have the widest possible support. 
Accordingly, pursuant to Sec.  605(b) of the RFA,\78\ the Commission 
certifies that this Final Rule will not have a significant economic 
impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \77\ This number is derived by dividing the total cost figure by 
the number of respondents. $441,778/165 = $2,677.
    \78\ 5 U.S.C. 605(b).
---------------------------------------------------------------------------

IX. Document Availability

    56. 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 5:00 
p.m. Eastern time) at 888 First Street NE., Room 2A, Washington, DC 
20426.
    57. 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.
    58. 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 email at 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
[email protected].

X. Effective Date and Congressional Notification

    59. These regulations are effective December 2, 2015. The 
Commission has determined (with the concurrence of the Administrator of 
the Office of Information and Regulatory Affairs of OMB) that this rule 
is not a ``major rule'' as defined in section 351 of the Small Business 
Regulatory Enforcement Fairness Act of 1996. This Final Rule is being 
submitted to the Senate, House, and Government Accountability Office.

List of Subjects

18 CFR Parts 157 and 260

    Natural gas, Reporting and recordkeeping requirements.

18 CFR Part 284

    Incorporation by reference, Natural gas, Reporting and 
recordkeeping requirements.

    By the Commission.
    Issued: October 16, 2015.
Kimberly D. Bose,
Secretary.
    In consideration of the foregoing, the Commission amends parts 157, 
260, and 284, chapter I, title 18, Code of Federal Regulations, as 
follows.

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

0
1. The authority citation for part 157 continues to read as follows:

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


0
2. Section 157.14 is amended by revising paragraph (a) to read as 
follows:


Sec.  157.14  Exhibits.

    (a) To be attached to each application. All exhibits specified must 
accompany each application when tendered for filing. Together with each 
exhibit applicant must provide a full and complete explanation of the 
data submitted, the manner in which it was obtained, and the reasons 
for the conclusions derived from the exhibits. If the Commission 
determines that a formal hearing upon the application is required or 
that testimony and hearing exhibits should be filed, the Secretary will 
promptly notify the applicant that submittal of all exhibits and 
testimony of all witnesses to be sponsored by the applicant in support 
of his case-in-chief is required. Submittal of these exhibits and 
testimony must be within 20 days from the date of the Secretary's 
notice, or any other time as the Secretary will specify. Exhibits, 
except exhibits F, F- 1, G, G-I, and G-II, must be submitted to the 
Commission on electronic media as prescribed in Sec.  385.2011 of this 
chapter. Receipt and delivery point information required in various 
exhibits must be labeled with a location point name and code in 
conformity with the location name and code the pipeline has adopted in 
conformance with Sec.  284.13(f) of this chapter. Intervenors and 
persons becoming intervenors after the date of the Secretary's notice 
must be advised by the applicant of the afore-specified exhibits and 
testimony, and must be furnished with copies upon request. If this 
section requires an applicant to reveal Critical Energy Infrastructure 
Information (CEII), as defined by Sec.  388.113(c) of this chapter, to 
any person, the applicant shall follow the procedures set out in Sec.  
157.10(d).
* * * * *

[[Page 67312]]


0
3. Section 157.18 is amended by revising paragraph (c) introductory 
text to read as follows:


Sec.  157.18  Applications to abandon facilities or service; exhibits.

    (c) Exhibit V--Flow diagram showing daily design capacity and 
reflecting operation of applicant's system after abandonment. Receipt 
and delivery point information required in various exhibits must be 
labeled with a location point name and code in accordance with the 
location name and code the pipeline has adopted in conformance with 
Sec.  284.13(f) of this chapter. A flow diagram showing daily design 
capacity and reflecting operating conditions of applicant's system 
after abandonment of facilities on that segment of the system affected 
by the abandonment, including the following:
* * * * *

PART 260--STATEMENTS AND REPORTS (SCHEDULES)

0
4. The authority citation for part 260 continues to read as follows:

    Authority: 15 U.S.C. 717-717z, 3301-3432; 42 U.S.C. 7101-7352.


0
5. Section 260.8 is amended by revising paragraph (a) to read as 
follows:


Sec.  260.8  System flow diagrams: Format No. FERC 567.

    (a) Each Major natural gas pipeline company, having a system 
delivery capacity in excess of 100,000 Mcf per day (measured at 14.73 
p.s.i.a. and 60[deg] F), shall file with the Commission by June 1 of 
each year five (5) copies of a diagram or diagrams reflecting operating 
conditions on its main transmission system during the previous twelve 
months ended December 31. For purposes of system peak deliveries, the 
heating season overlapping the year's end shall be used. Facilities 
shall be those installed and in operation on December 31 of the 
reporting year. All volumes shall be reported on a uniform stated 
pressure and temperature base. Receipt and delivery point information 
required in various exhibits must be labeled with a location point name 
and code in accordance with the location name and code adopted by the 
pipeline in accordance with Sec.  284.13(f) of this chapter.
* * * * *

PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE 
NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES

0
6. The authority citation for part 284 continues to read as follows:

    Authority: 15 U.S.C. 717-717z, 3301-3432; 42 U.S.C. 7101-7352; 
43 U.S.C. 1331-1356.


0
7. Section 284.12 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  284.12  Standards for pipeline business operations and 
communications.

    (a) * * *
    (1) An interstate pipeline that transports gas under subparts B or 
G of this part must comply with the business practices and electronic 
communications standards as promulgated by the North American Energy 
Standards Board, as incorporated herein by reference in paragraphs 
(a)(1)(i) thru (vii) of this section.
    (i) Additional Standards (Version 3.0, November 14, 2014, with 
minor corrections applied through June 29, 2015);
    (ii) Nominations Related Standards (Version 3.0, November 14, 2014, 
with minor corrections applied through June 29, 2015);
    (iii) Flowing Gas Related Standards (Version 3.0, November 14, 
2014, with minor corrections applied through June 29, 2015);
    (iv) Invoicing Related Standards (Version 3.0, November 14, 2014, 
with minor corrections applied through June 29, 2015);
    (v) Quadrant Electronic Delivery Mechanism Related Standards 
(Version 3.0, November 14, 2014, with minor corrections applied through 
June 29, 2015);
    (vi) Capacity Release Related Standards (Version 3.0, November 14, 
2014, with minor corrections applied through June 29, 2015); and
    (vii) Internet Electronic Transport Related Standards (Version 3.0, 
November 14, 2014, with minor corrections applied through June 29, 
2015).
* * * * *

0
8. Section 284.13 is amended by revising paragraphs (b)(1)(vi), 
(b)(2)(iv) and (c)(2)(vi), and adding paragraph (f) to read as follows:


Sec.  284.13  Reporting requirements for interstate pipelines.

    (b) * * *
    (1) * * *
    (vi) The receipt and delivery points and the zones or segments 
covered by the contract, including the location name and code adopted 
by the pipeline in conformance with paragraph (f) of this section for 
each point, zone or segment;
* * * * *
    (2) * * *
    (iv) The receipt and delivery points and the zones or segments 
covered by the contract, including the location name and code adopted 
by the pipeline in conformance with paragraph (f) of this section for 
each point, zone or segment;
* * * * *
    (c) * * *
    (2) * * *
    (vi) The receipt and delivery points and the zones or segments 
covered by the contract, including the location name and code adopted 
by the pipeline in conformance with paragraph (f) of this section for 
each point, zone or segment;
* * * * *
    (f) Location codes. An interstate pipeline must maintain a posting 
on its publicly available Internet Web site of the pipeline's location 
names and codes for all current and inactive receipt and delivery 
points on its system, including, for each point: Direction of flow, the 
location of the point, the location zone if such exists, the Commission 
company identification code (CID), if any, of the upstream and/or 
downstream entity, the location type, the current status as active and 
inactive, and the date(s) the point becomes active or inactive. The 
pipeline must provide the information in downloadable file formats, in 
conformity with the requirements of 18 CFR 284.12 of this chapter.

0
9. Section 284.126 is amended by revising paragraph (b)(1)(iv) to read 
as follows:


Sec.  284.126  Reporting requirements.

    (b) * * *
    (1) * * *
    (iv) The primary receipt and delivery points covered by the 
contract, identified by the list of points that the pipeline has 
published with the Commission;
* * * * *
[FR Doc. 2015-27806 Filed 10-30-15; 8:45 am]
BILLING CODE 6717-01-P



                                                  67302            Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations




                                                  *      *     *       *      *                           DEPARTMENT OF ENERGY                                  SUMMARY: The Federal Energy
                                                    By direction of the Commission.                                                                             Regulatory Commission (Commission) is
                                                                                                          Federal Energy Regulatory                             amending its regulations to incorporate
                                                  Donald S. Clark,                                        Commission                                            by reference the latest version (Version
                                                  Secretary.                                                                                                    3.0) of seven business practice standards
                                                  [FR Doc. 2015–27772 Filed 10–30–15; 8:45 am]            18 CFR Parts 157, 260, and 284                        adopted by the Wholesale Gas Quadrant
                                                  BILLING CODE 6750–01–C                                                                                        of the North American Energy Standards
                                                                                                          [Docket Nos. RM96–1–038 and RM14–2–                   Board (NAESB) applicable to interstate
                                                                                                          003; Order No. 587–W]                                 natural gas pipelines. These updated
                                                                                                                                                                business practice standards contain and
                                                                                                          Standards for Business Practices of                   supplement the revisions to the NAESB
asabaliauskas on DSK5VPTVN1PROD with RULES




                                                                                                          Interstate Natural Gas Pipelines;                     scheduling standards accepted by the
                                                                                                          Coordination of the Scheduling                        Commission in Order No. 809 as part of
                                                                                                          Processes of Interstate Natural Gas                   the Commission’s efforts to harmonize
                                                                                                          Pipelines and Public Utilities                        gas-electric scheduling coordination,
                                                                                                          AGENCY:  Federal Energy Regulatory                    and are required to be implemented on
                                                                                                          Commission.                                           April 1, 2016, the same date as the
                                                                                                                                                                regulations adopted in Order No. 809. In
                                                                                                          ACTION: Final rule.
                                                                                                                                                                                                            ER02NO15.003</GPH>




                                                                                                                                                                addition, the updated standards revise


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                                                                         Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations                                                                                                   67303

                                                  the codes used to identify receipt and                                     certain publications listed in this rule is                                 20426, Telephone: (202) 502–
                                                  delivery locations in the Index of                                         approved by the Director of the Federal                                     6392,Email: oscar.santillana@ferc.gov.
                                                  Customers. Further, for consistency                                        Register as of December 2, 2015.                                              Gary D. Cohen (legal issues), Office of
                                                  with the revisions to the Index of                                         FOR FURTHER INFORMATION CONTACT:                                            the General Counsel, Federal Energy
                                                  Customers, the Commission is also                                            Stanley Wolf (technical issues), Office                                   Regulatory Commission, 888 First Street
                                                  amending its regulations to make                                           of Energy Policy and Innovation,                                            NE., Washington, DC 20426, Telephone:
                                                  conforming changes to the                                                  Federal Energy Regulatory Commission,                                       (202) 502–8321,Email: gary.cohen@
                                                  Commission’s regulations on interstate                                     888 First Street NE., Washington, DC                                        ferc.gov.
                                                  natural gas pipeline filings and postings.                                 20426, Telephone: (202) 502–6841,
                                                                                                                                                                                                         SUPPLEMENTARY INFORMATION:
                                                                                                                             Email: stanley.wolf@ferc.gov.
                                                  DATES:  This rule will become effective                                      Oscar F. Santillana (technical issues),                                   Order No. 587–W
                                                  December 2, 2015. Implementation of                                        Office of Energy Market Regulation,
                                                  these standards is required on April 1,                                    Federal Energy Regulatory Commission,                                       Final Rule
                                                  2016. The incorporation by reference of                                    888 First Street NE., Washington, DC                                        Table of Contents



                                                                                                                                                                                                                                                                Paragraph
                                                                                                                                                                                                                                                                 Numbers

                                                  I. Background ............................................................................................................................................................................................            4
                                                  II. Discussion ............................................................................................................................................................................................          12
                                                        A. Incorporation by Reference of the NAESB Standards ................................................................................................................                                          12
                                                             1. The NAESB WGQ Version 3.0 Business Practice Standards ..............................................................................................                                                   12
                                                             2. NAESB’s Process ....................................................................................................................................................................                   14
                                                             3. NOPR Proposal .......................................................................................................................................................................                  15
                                                             4. Comments ...............................................................................................................................................................................               16
                                                             5. Commission Determination ...................................................................................................................................................                           17
                                                             6. Required Compliance Filings ................................................................................................................................................                           18
                                                        B. Use of Proprietary Codes To Replace Common Codes ...............................................................................................................                                            19
                                                             1. NOPR Proposal .......................................................................................................................................................................                  19
                                                             2. Comments ...............................................................................................................................................................................               21
                                                             3. Commission Determination ...................................................................................................................................................                           22
                                                        C. Index of Customers .......................................................................................................................................................................                  24
                                                             1. Filing Format ..........................................................................................................................................................................               24
                                                                  a. NOPR Proposal ................................................................................................................................................................                    24
                                                                  b. Comment .........................................................................................................................................................................                 25
                                                                  c. Commission Determination ............................................................................................................................................                             26
                                                             2. Index of Customers Instruction Manual ...............................................................................................................................                                  27
                                                                  a. NOPR Proposal ................................................................................................................................................................                    27
                                                                  b. Comments ........................................................................................................................................................................                 28
                                                                  c. Commission Determination ............................................................................................................................................                             31
                                                        D. Cross-References/Conforming Changes .......................................................................................................................................                                 36
                                                             1. NOPR Proposal .......................................................................................................................................................................                  36
                                                             2. Comments ...............................................................................................................................................................................               37
                                                             3. Commission Determination ...................................................................................................................................................                           38
                                                  III. Implementation Schedule ..................................................................................................................................................................                      40
                                                  IV. Notice of Use of Voluntary Consensus Standards ............................................................................................................................                                      43
                                                  V. Incorporation By Reference .................................................................................................................................................................                      45
                                                  VI. Information Collection Statement ......................................................................................................................................................                          47
                                                  VII. Environmental Analysis ....................................................................................................................................................................                     53
                                                  VIII. Regulatory Flexibility Act ...............................................................................................................................................................                     54
                                                  IX. Document Availability .......................................................................................................................................................................                    56
                                                  X. Effective Date and Congressional Notification ...................................................................................................................................                                 59


                                                  Order No. 587–W                                                            required to implement these standards                                       standards that previously were
                                                                                                                             April 1, 2016.                                                              incorporated by reference. The
                                                  Final Rule                                                                   2. The NAESB WGQ Version 3.0                                              standards also revise the codes used to
                                                  (Issued October 16, 2015)                                                  package of standards includes standards                                     identify receipt and delivery locations
                                                                                                                             governing coordination of the                                               in the Index of Customers. In addition,
                                                    1. In this final rule, the Federal                                       scheduling processes of interstate                                          for consistency with the revisions to the
                                                  Energy Regulatory Commission                                               natural gas pipelines and public utilities                                  Index of Customers, the Commission is
                                                  (Commission) amends its regulations at                                     that the Commission incorporated by                                         also amending its regulations at 18 CFR
                                                  18 CFR 284.12 to incorporate by                                            reference in Docket No. RM14–2–000.1
                                                                                                                                                                                                         157.14, 157.18, 260.8, and 284.13 to
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                                                  reference the latest version (Version 3.0)                                 These updated business practice
                                                                                                                                                                                                         have receipt and delivery point
                                                  of seven business practice standards                                       standards will replace the earlier
                                                                                                                             version of these business practice                                          information in various interstate natural
                                                  applicable to interstate natural gas
                                                                                                                                                                                                         gas pipeline filings and postings use the
                                                  pipelines adopted by the Wholesale Gas
                                                                                                                               1 Coordination of the Scheduling Processes of                             same location point names as provided
                                                  Quadrant (WGQ) of the North American                                       Interstate Natural Gas Pipelines and Public                                 for in the NAESB WGQ Version 3.0
                                                  Energy Standards Board (NAESB).                                            Utilities, Order No. 809, Final Rule, 80 FR 23197                           Standards. Finally, we also are making
                                                  Interstate natural gas pipelines are                                       (Apr. 24, 2015), FERC Stats. & Regs. ¶ 31,368 (Order
                                                                                                                             No. 809).                                                                   conforming changes to 18 CFR 284.126.


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                                                  67304            Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations

                                                    3. In addition, the Commission                        pipelines using a single code for the                  modifications made in the Version 2.1
                                                  terminates, as moot, the proceeding in                  shared point. The industry chose an                    Standards are included in the Version
                                                  Docket No. RM14–2–003, as the                           independent third party to assign and                  3.0 Standards and thus no action is
                                                  standard corrections NAESB filed in                     maintain the common code database.                     needed on the Version 2.1 Standards.13
                                                  Docket No. RM14–2–003 are included as                      6. NAESB reported that, after                       The Version 3.0 Standards introduced
                                                  part of the Version 3.0 standards that                  extensive discussions, the WGQ reached                 modifications to the standards to
                                                  the Commission is incorporating by                      the conclusion that the NAESB WGQ                      support efforts to harmonize gas-electric
                                                  reference here, with the same                           Standards should no longer support the                 scheduling coordination that NAESB
                                                  implementation date of April 1, 2016.                   location common codes system, as the                   had separately filed and that the
                                                                                                          NAESB membership concluded that the                    Commission incorporated by reference
                                                  I. Background                                           system provided little commercial                      in Order No. 809.14 In addition, the
                                                    4. Since 1996, the Commission has                     benefit to the industry at large.                      Version 3.0 Standards contain revisions
                                                  adopted regulations to standardize the                  Consistent with this determination, the                to the capacity release standards
                                                  business practices and communication                    Version 2.1 Standards added seven new                  regarding posting requirements for
                                                  methodologies of interstate natural gas                 standards, modified six standards, and                 offers to purchase released capacity that
                                                  pipelines to create a more integrated                   deleted three standards to match up                    were the subject of the Commission’s
                                                  and efficient pipeline grid. These                      with a transition from common codes to                 order to show cause in Docket No.
                                                  regulations have been promulgated in                    the proprietary codes used by interstate               RP14–442–000.15 Other revisions in the
                                                  the Order No. 587 series of orders,2                    pipelines to identify points.5 These will              Version 3.0 Standards are: (1) Revisions
                                                  wherein the Commission has                              be the codes assigned by the                           to the standards to define ‘‘Operating
                                                  incorporated by reference standards for                 transportation service providers for the               Capacity’’ and ‘‘Design Capacity’’ in
                                                  interstate natural gas pipeline business                identification of locations.6 The                      response to the Commission request in
                                                  practices and electronic                                standards require pipelines to post                    Order No. 587–V; 16 (2) elimination of
                                                  communications that were developed                      sufficient information on their Web sites              the WGQ Interpretations, which the
                                                  and adopted by NAESB’s WGQ. Upon                        to permit shippers and the Commission                  Commission has long declined to
                                                  incorporation by reference, this version                to identify the interconnection points                 incorporate by reference; (3)
                                                  of these standards will become part of                  between pipelines that were previously                 modifications to standards to reflect the
                                                  the Commission’s regulations and                        identified through the common codes.                   elimination of the WGQ’s
                                                  compliance by interstate natural gas                       7. Additionally, as requested by the                interpretations of the standards; (4)
                                                  pipelines will become mandatory and                     Commission in Order No. 587–V,7                        modifications for maintenance
                                                  will replace the earlier version of these               NAESB modified the standards to                        purposes, which includes changes to
                                                  standards that the Commission                           include reporting requirements for                     eliminate the appearance of the
                                                  previously incorporated by reference in                 ‘‘Design Capacity’’ for each location by               electronic data interchange in the
                                                  2012.3                                                  transportation service providers.8 Other               imbalance trading process; (5)
                                                    5. On July 23, 2013, as corrected on                  changes to the existing standards were                 modifications to reflect new data
                                                  July 25, 2013, NAESB filed a report                     made at the request of industry. These                 elements; and (6) edits for clarity and to
                                                  informing the Commission that it had                    include changes to the NAESB WGQ                       increase user-friendliness. The Version
                                                  adopted and ratified Version 2.1 of its                 Additional Standards, Nominations                      3.0 standards have also been revised to
                                                  business practice standards applicable                  Related Standards, Flowing Gas Related                 include 29 minor corrections.17
                                                  to natural gas pipelines. NAESB                         Standards, Invoicing Related Standards,                   9. On July 7, 2015, NAESB filed a
                                                  reported that the WGQ reviewed, at the                  Quadrant Electronic Delivery                           report informing the Commission that it
                                                  request of the industry, the necessity of               Mechanism Standards, Capacity Release                  made errata corrections to the WGQ
                                                                                                          Related Standards, and Data Set                        Version 3.0 Business Practice
                                                  maintaining the current location
                                                                                                          Standards.9 NAESB further reported on                  Standards.18 These corrections
                                                  common codes system to determine if
                                                                                                          the changes it made to the NAESB WGQ                   incorporated a 9:00 a.m. Central Clock
                                                  the system provides a significant benefit
                                                                                                          Interpretations and Contracts and                      Time (CCT) start to the gas operating
                                                  to the industry and should be
                                                                                                          Manuals that the Commission has                        day, consistent with the Commission’s
                                                  continued.4 NAESB (in its previous
                                                                                                          declined to incorporate by reference in
                                                  corporate incarnation as the Gas                                                                               findings in Order No. 809 19 and also
                                                                                                          past Final Rules.10 NAESB also reported
                                                  Industry Standards Board) adopted a                                                                            corrected other minor errors.
                                                                                                          on all the minor corrections it made to
                                                  system of registering common codes to
                                                                                                          the standards since Version 2.0 of the
                                                  identify interconnection points between                                                                           13 NAESB Version 3.0 Report dated November 14,
                                                                                                          Standards.11 Finally, NAESB reported                   2014 (NAESB Version 3.0 Report) at 2.
                                                    2 This series of orders began with the
                                                                                                          on items that it considered changing but                  14 See supra n.1.

                                                  Commission’s issuance of Standards for Business         on which it took no action.12                             15 Posting of Offers to Purchase Capacity, 146

                                                  Practices of Interstate Natural Gas Pipelines, Order       8. On November 14, 2014, NAESB                      FERC ¶ 61,203, at P 6 (2014) (Show Cause Order);
                                                  No. 587, FERC Stats. & Regs. ¶ 31,038 (1996).           filed a report informing the Commission                B–R Pipeline Co., 149 FERC ¶ 61,031 (2014) (order
                                                                                                                                                                 accepting compliance filings).
                                                    3 Standards for Business Practices of Interstate
                                                                                                          that it had adopted and ratified Version                  16 Order No. 587–V, FERC Stats. & Regs. ¶ 31,332
                                                  Natural Gas Pipelines, Final Rule, Order No. 587–       3.0 of its business practice standards
                                                  V, FERC Stats. & Regs. ¶ 31,332 (2012) (Order No.                                                              at P 8.
                                                  587–V).                                                 applicable to natural gas pipelines.                      17 The NAESB Version 3.0 Report also provides

                                                    4 NAESB Version 2.1 Report dated July 23, 2013        NAESB reported that all of the                         information on other NAESB activities and tools
                                                  (NAESB Version 2.1 Report). As explained in the                                                                unrelated to standards development. A complete
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                                                  NAESB Version 2.1 Report, this request was                5 NAESB     Version 2.1 Report at 2.                 listing of all the revisions made in NAESB’s WGQ
                                                  received by NAESB in November 2010 and was                6 Id.
                                                                                                                                                                 Version 3.0 Business Practice Standards to NAESB’s
                                                                                                                  at 4.
                                                  included by the NAESB Board of Directors in the           7 See supra n.3.
                                                                                                                                                                 prior business practice standards can be found in
                                                  2011 WGQ Annual Plan as part of Item No. 7 and                                                                 the Appendix to the Version 3.0 NOPR, 80 FR
                                                                                                            8 NAESB Version 2.1 Report at 2–3.
                                                  as part of the 2012 WGQ Annual Plan Item No. 8.                                                                43987, FERC Stats. & Regs. ¶ 32,708 at 34,767.
                                                                                                            9 Id. at 3.                                             18 NAESB adopted two minor corrections,
                                                  See NAESB Version 2.1 Report at 3. The proposed
                                                                                                            10 See, e.g., Order No. 587–V, FERC Stats. & Regs.
                                                  modifications made in response to this request were                                                            MC15009 and MC15012, approved on April 30,
                                                  developed by the WGQ’s Business Practices               ¶ 31,332 at n.11.                                      2015 and May 29, 2015, respectively.
                                                                                                            11 NAESB Version 2.1 Report at 18.
                                                  Subcommittee and jointly by the Information                                                                       19 Order No. 809, FERC Stats. & Regs. ¶ 31,368 at

                                                  Requirements/Technical Subcommittees.                     12 Id. at 17–18.                                     P 171.



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                                                                   Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations                                               67305

                                                     10. On July 16, 2015, the Commission                 minor corrections.24 In this Final Rule,              report also identified the minor
                                                  issued a Notice of Proposed Rulemaking                  the version of the NAESB WGQ                          corrections it made to the standards
                                                  (Version 3.0 NOPR) proposing to amend                   business practice standards that we are               since Version 2.0 of the Standards.
                                                  its regulations to incorporate by                       incorporating by reference into our
                                                                                                                                                                2. NAESB’s Process
                                                  reference, with certain enumerated                      regulations will include these additional
                                                  exceptions, the NAESB Version 3.0                       minor corrections.                                       14. NAESB used its consensus
                                                  business practice standards (referenced                 II. Discussion                                        procedures to develop and approve the
                                                  above) applicable to natural gas                                                                              Version 3.0 Standards. As the
                                                  pipelines.20 In addition, the Version 3.0               A. Incorporation by Reference of the                  Commission found in Order No. 587,
                                                                                                          NAESB Standards                                       the adoption of consensus standards is
                                                  NOPR proposed certain conforming
                                                  changes to the Commission’s regulations                 1. The NAESB WGQ Version 3.0                          appropriate because the consensus
                                                  at 18 CFR 157.14 and 157.18 (dealing                    Business Practice Standards                           process helps ensure the reasonableness
                                                  with exhibits) and 260.8 (dealing with                                                                        of the standards by requiring that the
                                                                                                             12. The NAESB WGQ Version 3.0                      standards draw support from a broad
                                                  system flow diagrams).                                  Business Practice Standards made a                    spectrum of industry participants
                                                     11. In response to the Version 3.0                   number of changes to the earlier version              representing all segments of the
                                                  NOPR, comments were filed by three                      of those standards that the Commission                industry. Moreover, since the industry
                                                  commenters. All three commenters                        previously incorporated by reference in               itself has to conduct business under
                                                  express support for the Commission’s                    2012 in Order No. 587–V.25 Notable
                                                                                                                                                                these standards, the Commission’s
                                                  proposal to incorporate by reference                    among these changes was a change,
                                                                                                                                                                regulations should reflect those
                                                  NAESB’s Version 3.0 business practice                   made at the request of the industry, to
                                                                                                                                                                standards that have the widest possible
                                                                                                          introduce the use of proprietary codes to
                                                  standards. Tennessee Valley Authority                                                                         support. In section 12(d) of the National
                                                                                                          identify the location of points of receipt
                                                  (TVA) comments that it fully supports                                                                         Technology Transfer and Advancement
                                                                                                          and delivery. Consistent with this
                                                  the full package of revisions reflected in                                                                    Act of 1995 (NTT&AA), Congress
                                                                                                          determination, the Version 2.1
                                                  the NAESB Version 3.0 Standards that                                                                          affirmatively requires federal agencies to
                                                                                                          Standards added seven new standards,
                                                  are subject to the NOPR. Interstate                                                                           use technical standards developed by
                                                                                                          modified six standards, and deleted
                                                  Natural Gas Association of America                                                                            voluntary consensus standards
                                                                                                          three standards to match up with a
                                                  (INGAA) comments that it ‘‘supports the                 transition from common codes to                       organizations, like NAESB, as means to
                                                  Commission’s proposal to amend its                      proprietary codes. Under the new                      carry out policy objectives or activities
                                                  regulations to incorporate by reference                 standards, each transportation service                determined by the agencies unless an
                                                  Version 3.0 of the business practice                    provider assigns the proprietary codes it             agency determines that the use of such
                                                  standards adopted by [NAESB’s WGQ]                      will use to identify the locations of its             standards would be inconsistent with
                                                  applicable to natural gas pipelines,’’                  points of receipt and delivery. The                   applicable law or otherwise impractical.
                                                  subject to a few suggested                              standards require pipelines to post                   3. NOPR Proposal
                                                  modifications.21 It supports the Version                sufficient information on their Web sites
                                                  3.0 NOPR’s proposal to introduce the                    to permit shippers and the Commission                   15. In the Version 3.0 NOPR, the
                                                  use of proprietary location codes and to                to identify the interconnection points                Commission proposed to incorporate by
                                                  discontinue the use of industry common                  between pipelines that were previously                reference, in its regulations, Version 3.0
                                                  codes, but it offers suggested minor                    identified through the common codes.                  of the NAESB WGQ’s consensus
                                                  modifications to the regulatory text                       13. Additionally, as requested by the              business practice standards, with the
                                                                                                          Commission in Order No. 587–V,26                      exception of NAESB’s standards
                                                  accomplishing this transition. Southern
                                                                                                          NAESB modified the standards to                       specifying the terms of optional model
                                                  Star Central Gas Pipeline (Southern
                                                                                                          include reporting requirements for                    contracts and its eTariff-related
                                                  Star), likewise, comments that it
                                                                                                          ‘‘Design Capacity’’ for each location by              standards.28
                                                  ‘‘supports the incorporation by
                                                  reference of the NAESB WGQ Version                      transportation service providers. Other               4. Comments
                                                                                                          changes to the existing standards were
                                                  3.0 business practice standards in 18
                                                                                                          made at the request of industry. These                  16. As explained above, all of the
                                                  CFR § 284.12 as proposed.’’ 22
                                                                                                          include changes to the NAESB WGQ                      commenters supported the
                                                  ‘‘[H]owever, Southern Star asks the                                                                           Commission’s proposal to incorporate
                                                                                                          Additional Standards, Nominations
                                                  Commission to clarify its proposed                                                                            by reference the NAESB WGQ Version
                                                                                                          Related Standards, Flowing Gas Related
                                                  corresponding changes to 18 CFR                         Standards, Invoicing Related Standards,               3.0 business practice standards as
                                                  157.14, 157.18, 260.8, and 284.13 to                    Quadrant Electronic Delivery                          proposed in the Version 3.0 NOPR.29
                                                  avoid confusion and ensure consistent                   Mechanism Standards, Capacity Release
                                                  compliance with the regulations.’’ 23 In                                                                      5. Commission Determination
                                                                                                          Related Standards, and Data Set
                                                  the discussion below, we will address                   Standards. NAESB further reports on                      17. After a review of the comments
                                                  the comments in greater detail. In                      the changes it made to the NAESB WGQ                  filed in response to the Version 3.0
                                                  addition, on September 25, 2015,                        Interpretations and Contracts and                     NOPR, the Commission is amending
                                                  NAESB filed a report with the                           Manuals that the Commission has                       Part 284 of its regulations to incorporate
                                                  Commission in Docket No. RM96–1–038                     declined to incorporate by reference in               by reference seven of the NAESB WGQ’s
                                                  announcing that it had made additional                  past final rules.27 NAESB’s Version 3.0               Version 3.0 business practice standards.
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                                                                                                                                                                Further, as explained in the Version 3.0
                                                    20 Standards for Business Practices of Interstate       24 MC15003, MC15004, and MC15005, which
                                                                                                                                                                NOPR, we are not incorporating by
                                                  Natural Gas Pipelines, Notice of Proposed               were adopted by the WGQ Executive Committee on        reference the NAESB WGQ’s optional
                                                  Rulemaking, 80 FR 43979 (July 24, 2015), FERC           April 9, 2015.
                                                  Stats. & Regs. ¶ 32,708 (July 16, 2015) (Version 3.0      25 Standards for Business Practices of Interstate   model contracts and eTariff-related
                                                  NOPR).                                                  Natural Gas Pipelines, Order No. 587–V, FERC
                                                    21 INGAA at 1.                                        Stats. & Regs. ¶ 31,332 (2012).                         28 Version 3.0 NOPR, 80 FR 43982, FERC Stats.
                                                    22 Southern Star at 2.                                  26 Id. P 30.                                        & Regs. ¶ 32,708 at P 20.
                                                    23 Id.                                                  27 See, e.g., id. n.11.                               29 See discussion at P 11, supra.




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                                                  67306            Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations

                                                  standards.30 In the discussion below, we                 delivery and that included requirements                  other regulations requiring the
                                                  also will discuss the various comments                   for the pipelines to post on their Web                   specification of location point codes to
                                                  suggesting modifications to the                          sites information on each of the                         align with the NAESB standards.
                                                  regulatory text proposed in the Version                  proprietary points that can be used to                      23. We also will adopt Southern Star
                                                  3.0 NOPR in the conforming changes we                    determine which points are                               and INGAA’s recommendations to
                                                  proposed to other provisions of our                      interconnecting points between                           modify the regulations to create a
                                                  regulations.                                             pipelines.33 We also proposed that these                 separate requirement at 18 CFR
                                                                                                           same codes be used by the Commission                     284.13(f) for the posting of information
                                                  6. Required Compliance Filings                                                                                    regarding the location points to make
                                                                                                           in its Index of Customers to identify the
                                                     18. To implement the standards we                     points on shippers’ contracts and we                     cross-reference easier. Consistent with
                                                  are incorporating by reference in this                   proposed to revise § 284.13(c) of the                    the proposal in the Version 3.0 NOPR,
                                                  Final Rule, we will require each                         regulations to assure that these                         we are requiring interstate pipelines to
                                                  interstate natural gas pipeline to file a                provisions operate in harmony.34 In the                  file their Index of Customers using the
                                                  separate tariff record reflecting the                    NOPR, we proposed to revise the                          new location names and codes for all
                                                  changed standards by February 1, 2016,                   Commission’s regulations at                              active points. In addition, as proposed
                                                  to take effect on April 1, 2016, and the                 § 284.13(c)(2)(vi) to reflect the use of the             in the Version 3.0 NOPR, we are
                                                  natural gas pipelines will be required to                term ‘‘location code’’ rather than                       requiring pipelines to maintain and post
                                                  comply with these standards on and                       ‘‘industry common code’’ to identify the                 on their Web sites a complete listing of
                                                  after April 1, 2016.31                                   location of receipt and delivery points,                 all inactive points. Finally, for the
                                                  B. Use of Proprietary Codes To Replace                   and we also proposed to require                          convenience of those reviewing past
                                                  Common Codes                                             pipelines to post information on their                   Index of Customers filings, or those
                                                                                                           internet Web site regarding such                         wishing to compare past Index of
                                                  1. NOPR Proposal                                         location points, including the                           Customers filings to newer Index of
                                                     19. As explained in the Version 3.0                   coordinates of each point, and an                        Customers filings, we will post the old
                                                  NOPR, at industry’s request, NAESB                       identification of the upstream or                        common code file for past indices on
                                                  reviewed the location common codes                       downstream entity, if any, at that point,                the Commission’s Web site prior to
                                                  system and concluded that the NAESB                      and date the point becomes active or                     April 1, 2016.
                                                  WGQ Business Practice Standards                          inactive.35
                                                                                                                                                                    C. Index of Customers
                                                  should no longer support the location                    2. Comments
                                                  common codes system, as the NAESB                                                                                 1. Filing Format
                                                  membership concluded that the system                        21. Southern Star & INGAA both
                                                                                                           support the Commission’s proposal to                     a. NOPR Proposal
                                                  provided little commercial benefit to the
                                                  industry at large.32 The industry                        use the term ‘‘location code,’’ rather                      24. In the Version 3.0 NOPR, we
                                                  determined that having a third party                     than ‘‘industry common code’’ to                         explained that pipelines currently file
                                                  maintain a common code database is not                   identify the location of receipt and                     the Index of Customers using a tab-
                                                  worth the expense and effort and                         delivery points.36 Southern Star and                     delimited file format consistent with
                                                  revised the standards to introduce the                   INGAA, however, point out that the                       Form No. 549B—Index of Customers
                                                  use of proprietary codes to identify the                 term ‘‘common code’’ recurs in a                         Instruction Manual.38 While we did not
                                                  location of points of receipt and                        number of places in the Commission’s                     propose any changes to that formatting
                                                  delivery. The revised standards include                  regulations other than in the Index of                   in the Version 3.0 NOPR, we further
                                                  requirements to replace much of the                      Customers, and contend that, as a result,                explained that,
                                                  information previously contained in the                  the Commission should establish a                          [b]ecause tab-delimited file formats can be
                                                  third party database. These standards                    separate regulation at 18 CFR 284.13(f)                  difficult and can result in errors that impose
                                                  require interstate pipelines to post on                  for the posting requirement to eliminate                 burdens both on Commission and pipeline
                                                  their internet Web sites information on                  the need for repetition.37                               staff to correct, we also are adding the Index
                                                  each of the proprietary points that can                                                                           of Customers form to the list of forms that are
                                                                                                           3. Commission Determination                              being updated as part of the Commission’s
                                                  be used among other things to                                                                                     forms refresh project in Docket No. AD15–
                                                                                                              22. We will incorporate by reference
                                                  determine which points are                                                                                        11–000 (Forms Project). Adding the Index of
                                                                                                           NAESB’s standards requiring interstate
                                                  interconnecting points, one of the                                                                                Customers to the Forms Project will move the
                                                                                                           pipelines to refer to location points
                                                  primary reasons for adoption of the                                                                               Commission towards the use of a standard
                                                                                                           using their own proprietary code,
                                                  common code database.                                                                                             approach for all Commission forms that will
                                                     20. In the Version 3.0 NOPR, the                      together with a posting of information                   result in more efficient filing and processing
                                                  Commission proposed to incorporate by                    regarding these codes on the pipelines’                  of forms.[39]
                                                  reference the standards that revised the                 Web site, rather than requiring the
                                                  prior standards to introduce the use of                  pipelines to maintain a common code                      b. Comment
                                                  proprietary codes to identify the                        database implemented by a third party.                      25. TVA comments that, while it was
                                                  location of points of receipt and                        Given the ability of the Commission and
                                                                                                                                                                    neutral in the past, it has come to
                                                                                                           customers to continue to identify
                                                                                                                                                                    appreciate that a user-friendly format for
                                                                                                           interconnection points referenced in the
                                                     30 We are also, as discussed in Section II.D below,
                                                                                                                                                                    the Index of Customers is extremely
                                                  making a number of conforming changes in other           Index of Customers through the Web
                                                                                                                                                                    beneficial to TVA in long-range
                                                  provisions of our regulations, for consistency with      site postings, the Commission also will
                                                                                                                                                                    planning. TVA asserts that, with
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                                                  our action here.                                         revise its regulations governing the
                                                     31 To aid in compliance, promptly after issuance                                                               growing staff to support the growth of
                                                                                                           filing of the Index of Customers and
                                                  of this Final Rule, the Commission will post a                                                                    gas-fired generation at TVA and
                                                  sample tariff record on the Commission’s Web site                                                                 counterparties, a user-friendly format
                                                                                                             33 Id.   PP 15–16.
                                                  that may be accessed at http://www.ferc.gov/docs-
                                                  filing/elibrary.asp. All pipelines are to file their       34 Id.                                                 for locations codes is a beneficial tool to
                                                  tariff records in conformance with this sample tariff       35 Id. at proposed regulatory text for

                                                  record.                                                  § 284.13(c)(2)(vi). (80 FR 43987).                          38 Version 3.0 NOPR, FERC Stats. & Regs. ¶ 32,708
                                                     32 Version 3.0 NOPR, FERC Stats. & Regs. ¶ 32,708        36 INGAA at 2. Southern Star at 3.                    at P 17.
                                                  at P 4.                                                     37 Southern Star at 2–3.                                 39 Id.




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                                                                     Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations                                                 67307

                                                  avoid potential miscommunication of                       new proprietary location names and                    Provider’’ matches the terminology in
                                                  receipt and delivery points from                          codes were to be used in identifying                  the standards we are incorporating. As
                                                  occurring.40                                              points of receipt and delivery in the                 we did after we issued the Version 3.0
                                                                                                            Index of Customers.                                   NOPR, we will post a link to the revised
                                                  c. Commission Determination
                                                                                                                                                                  instruction manual on our Web site after
                                                     26. The transition from the current tab                b. Comments                                           issuance of this Final Rule.46
                                                  delimited file format for the Index of                       28. Southern Star and INGAA both                      35. Finally, our review of the
                                                  Customers information reported on                         suggest that three changes are needed to              comments also brought to our attention
                                                  Form No. 549B to a more up-to-date                        the proposed instruction manual for the               that Item yi (Point Name) also needs
                                                  format will improve the efficient filing                  Index of Customers: 45 First, in the                  revision to reflect the transition to the
                                                  and processing of this information. As                    instructions for Item yh (the Point                   use of proprietary location codes in the
                                                  we explained in the Version 3.0 NOPR,                     Identifier Code), the commenters                      Version 3.0 standards. Thus, the
                                                  the Commission issued an order (Forms                     suggest that the references to G1-Gas                 Instructions for Item ID yi will now read
                                                  Project Order) initiating a proceeding in                 Transaction Point 1 and G2-Gas                        as follows: ‘‘Enter the Location Name
                                                  Docket No. AD15–11–000 to consider                        Transaction Point 2 should be deleted as              (LOC Name) of the point or facility.’’
                                                  the transition to a new filing format for                 these are antiquated codes that are no
                                                                                                                                                                  D. Cross-References/Conforming
                                                  a number of other Commission forms                        longer used in the referenced NAESB                   Changes
                                                  and has enlisted the assistance of                        business standard.
                                                  NAESB in this endeavor.41 As we                              29. Second, for Item yj (the Point                 1. NOPR Proposal
                                                  explained in Forms Project Order, the                     identification Code Qualifier), the                      36. In the Version 3.0 NOPR, the
                                                  current software which the Commission                     commenters suggest that the                           Commission proposed conforming
                                                  requires industry to use for the                          instructions should simply read ‘‘Enter               changes to reference the new location
                                                  electronic filing of many of the forms                    95’’ as all location codes will now be                names and codes at 18 CFR 157.14 and
                                                  (Visual Fox Pro) is no longer supported                   assigned by the pipeline (the                         18 CFR 157.18 (dealing with exhibits),
                                                  by its developer.42 The Commission                        Transportation Service Provider).                     in 18 CFR 260.8 (dealing with system
                                                  enlisted NAESB in an effort to transition                    30. Third, for Item yk (the Point                  flow diagrams), and in 18 CFR 284.13
                                                  to an electronic filing format based on                   Identification Code), the commenters                  (dealing with reporting requirements for
                                                  the use of Extensible Mark-Up Language                    suggest that the instructions should                  interstate pipelines).
                                                  (XML), which NAESB helped to develop                      simply read ‘‘Enter the Transportation
                                                  for electronic tariff filing.43 We                        Service Provider’s Location (LOC)’’ as                2. Comments
                                                  recognize that NAESB’s highest priority                   there is no longer an industry common                    37. Along with their comments
                                                  is to develop the XML standards for the                   code to enter. INGAA asserts that this                suggesting that the Commission move
                                                  forms to replace the unsupported and                      item should read ‘‘Enter the pipeline’s               its proposed regulation at
                                                  outdated Visual Fox Pro software. While                   location code.’’ It makes this suggestion             § 284.13(c)(2)(6) into a new subsection
                                                  the Index of Customers can still be filed                 because ‘‘Pipeline’’ is the term utilized             § 284.13(f), the commenters point out
                                                  in the current tab delimited format, we                   throughout the Instruction Manual.                    the Commission missed two references
                                                  agree with TVA that continued use of                      c. Commission Determination                           to common codes in § 284.13(b) and
                                                  this format is inefficient for both the                                                                         suggest revisions to the accompanying
                                                  industry and the Commission.                                 31. As to the suggestion to revise the             cross references proposed in the Version
                                                  Accordingly, we request that NAESB                        instruction manual to delete references               3.0 NOPR.47 INGAA further requests
                                                  consider revisions to the Index of                        to references to G1 and G2 in the                     two minor additional modifications.48
                                                  Customers as part of their ongoing                        instructions for Item yh (the Point                   In § 157.14(a), INGAA argues that the
                                                  deliberations.                                            Identifier Code), we find this suggestion             Commission should remove the
                                                                                                            reasonable and will make this change.                 reference to Exhibit H(iv) that appears
                                                  2. Index of Customers Instruction                            32. As to the suggestion to revise the
                                                                                                                                                                  in the proposed regulatory text because
                                                  Manual                                                    instruction manual to revise the
                                                                                                                                                                  Exhibit H(iv) no longer exists. In
                                                                                                            instructions for Item yj, we see merit in
                                                  a. NOPR Proposal                                                                                                addition, INGAA requests the
                                                                                                            this suggestion, but believe the
                                                                                                                                                                  Commission to clarify that it did not
                                                     27. In the Version 3.0 NOPR, the                       suggested language would be clearer if
                                                                                                                                                                  intend to delete certain language after
                                                  Commission proposed to post on the                        it read ‘‘Enter 95 whenever item yk is
                                                                                                                                                                  the asterisks in both §§ 157.14(a) and
                                                  Commission’s Web site a revised                           the Transmission Service Provider’s
                                                                                                                                                                  157.18(c). Specifically, INGAA states
                                                  instruction manual for the filing of Form                 Location (LOC)’’ and will revise the
                                                                                                                                                                  that the Commission should revise the
                                                  No. 549B—Index of Customers.44 As                         instruction manual accordingly.
                                                                                                                                                                  language at the beginning of item 2 of
                                                  promised, after issuance of the Version                      33. As to the suggestion to revise the
                                                                                                                                                                  its proposed amendment to § 157.14(a)
                                                  3.0 NOPR, the Commission posted the                       instruction manual to revise the
                                                                                                                                                                  to state that ‘‘Section 157.14 is amended
                                                  proposed revised instruction manual on                    instructions for Item yk to read ‘‘Enter
                                                                                                                                                                  by revising the introductory language of
                                                  its Web site. The only proposed changes                   the Transmission Service Provider’s
                                                                                                                                                                  paragraph (a) to read as follows:’’
                                                  to the instruction manual were to Item                    Location (LOC),’’ we find this
                                                                                                                                                                  (emphasis added), and insert ‘‘(1)’’
                                                  ID yj (Point identification Code                          suggestion reasonable and will make
                                                                                                                                                                  before the asterisks. In INGAA’s view,
                                                  Qualifier) and Item ID yk (Point                          this change.
                                                  identification Code) to specify that the                     34. As to the suggestion to revise the
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                                                                                                                                                                     46 To aid in compliance, promptly after issuance
                                                                                                            instruction manual to revise the                      of this Final Rule, a Revised Instruction Manual for
                                                    40 TVA   at 3.                                          instructions for Item yj to substitute the            filing Form No. 549B, Index of Customers, will be
                                                    41 Electronic Filing Protocols for Commission           term ‘‘Pipeline’’ in lieu of the term                 posted on the Commission’s Web site and may be
                                                  Forms, 151 FERC ¶ 61,025 (2015).                                                                                accessed at http://www.ferc.gov/industries/gas/
                                                    42 Id. P 1.
                                                                                                            ‘‘Transmission Service Provider,’’ we
                                                                                                                                                                  indus-act/pipelines/standards.asp. All pipelines are
                                                    43 Electronic Tariff Filings, Order No. 714, FERC
                                                                                                            are not persuaded to make this revision,              to file their Index of Customers in accordance with
                                                  Stats. & Regs. ¶ 31,276 (2008).                           as the term ‘‘Transmission Service                    the instructions provided in this manual.
                                                    44 Version 3.0 NOPR, FERC Stats. & Regs.                                                                         47 INGAA at 2–4, Southern Star at 3–4.

                                                  ¶ 32,708 at P 17 & n.26.                                    45 Southern   Star at 5–6 and INGAA at 7–9.            48 INGAA at 7.




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                                                  67308            Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations

                                                  this would remove any doubt about how                   clarification with regard to the                         (c) a statement identifying any standards
                                                  much of the existing section is being                   Commission’s explanation of its policies               for which the pipeline has been granted a
                                                  replaced with the new proposed                          on tariff filings and on waiver requests.              waiver, extension of time, or other variance
                                                  language.                                               We are not modifying these policies in                 with respect to compliance with the
                                                                                                                                                                 standard.57
                                                                                                          this Final Rule and stand by the
                                                  3. Commission Determination                                                                                      (3) If the pipeline is requesting a
                                                                                                          explanation of those policies we made
                                                     38. Given the Commission’s                           in the Version 3.0 NOPR. The                           continuation of an existing waiver or
                                                  determination that, as proposed by the                  Commission will require interstate                     extension of time, it must include a
                                                  commenters, the proper provision in                     natural gas pipelines to comply with the               table in its transmittal letter that states
                                                  which to place the requirement for                      revised NAESB standards that we are                    the standard for which a waiver or
                                                  pipelines to use ‘‘location code’’ rather               incorporating by reference in this Final               extension of time was granted, and the
                                                  than ‘‘industry common code’’ to                        Rule beginning on April 1, 2016. Thus,                 docket number or order citation to the
                                                  identify the location of receipt and                    among other requirements, when                         proceeding in which the waiver or
                                                  delivery points is at 18 CFR 284.13(f),                 pipelines make their Index of Customers                extension was granted.
                                                  we will make appropriate cross-                         filing for the second quarter of 2016 and
                                                  references. We agree with INGAA that                                                                           IV. Notice of Use of Voluntary
                                                                                                          thereafter they should do so using the
                                                  the inclusion of Exhibit H(iv) in the                   new location names and codes for all                   Consensus Standards
                                                  regulatory text of proposed § 157.14(a) is              active points. We are requiring this                      43. Office of Management and Budget
                                                  in error. Reference to this exhibit was                 implementation schedule to give the                    Circular A–119 (section 11) (February
                                                  deleted in Order No. 699 as an                          interstate natural gas pipelines subject               10, 1998) provides that federal agencies
                                                  erroneous or outdated reference.49 Thus,                to these standards adequate time to                    should publish a request for comment in
                                                  we will delete any reference to Exhibit                 implement these changes. In addition,                  a NOPR when the agency is seeking to
                                                  H(iv) in the regulatory text we are                     the interstate natural gas pipelines must              issue or revise a regulation proposing to
                                                  promulgating in this Final Rule. In                     file tariff records to reflect the changed             adopt a voluntary consensus standard or
                                                  addition, as requested, we will clarify                 standards by February 1, 2016.                         a government-unique standard. In this
                                                  that our revisions to § 157.14(a) and                      42. In addition, consistent with the                Final Rule, the Commission is amending
                                                  § 157.18(c) are not intended to delete                  requirements in Order Nos. 587–V and                   its regulations to incorporate by
                                                  language that follows later in these                    809,53 the Commission is including the                 reference voluntary consensus standards
                                                  provisions.                                             following compliance filing                            developed by NAESB’s WGQ. In section
                                                     39. Finally, as a result of the INGAA                requirements to increase the                           12(d) of NTT&AA, Congress
                                                  comment that we needed to make                          transparency of the pipelines’                         affirmatively requires federal agencies to
                                                  additional conforming changes that                      incorporation by reference of the                      use technical standards developed by
                                                  were overlooked, we also will make a                    NAESB WGQ Standards so that shippers                   voluntary consensus standards
                                                  conforming change to 18 CFR 284.126 to                  and the Commission will know which                     organizations to carry out policy
                                                  remove the reference to common codes.                   tariff provision(s) implements each                    objectives or activities determined by
                                                  Intrastate pipelines filing Form No.                    standard as well as the status of each                 the agencies unless use of such
                                                  549D should identify their location                     standard.                                              standards would be inconsistent with
                                                  codes and names in their list of                           (1) The pipelines must designate a                  applicable law or otherwise
                                                  jurisdictional points of receipt and                    single tariff record under which every                 impractical.58
                                                  delivery.                                               NAESB standard currently incorporated                     44. In section 12(d) of NTT&AA,
                                                  III. Implementation Schedule                            by reference by the Commission is                      Congress affirmatively requires federal
                                                                                                          listed.54 This section should be a                     agencies to use technical standards
                                                     40. In the Version 3.0 NOPR, the                     separate tariff record under the
                                                  Commission stated that we anticipated                                                                          developed by voluntary consensus
                                                                                                          Commission’s electronic tariff filing                  standards organizations to carry out
                                                  acting on the proposed rule in order to                 requirement and should be filed
                                                  permit these standards to become                                                                               policy objectives or activities
                                                                                                          electronically using the eTariff portal                determined by the agencies unless use
                                                  effective April 1, 2016 at the same time                using the Type of Filing Code 580. The
                                                  as the Gas-Electric Harmonization                                                                              of such standards would be inconsistent
                                                                                                          Commission will post on its eLibrary                   with applicable law or otherwise
                                                  standards, with compliance filings due                  Web site (under Docket No. RM96–1–
                                                  February 1, 2016.50 We explained that                                                                          impractical.
                                                                                                          038) a sample tariff record, to provide
                                                  requiring implementation of the                         filers an illustrative example to aid them             V. Incorporation by Reference
                                                  updated business practice standards and                 in preparing their compliance filings; 55                45. The Office of the Federal Register
                                                  the Gas-Electric Harmonization                             (2) For each standard, each pipeline                requires agencies incorporating material
                                                  standards on the same date should                       must specify in the tariff record a list of            by reference in final rules to discuss, in
                                                  reduce the compliance burden on the                     all the NAESB standards currently                      the preamble of the final rule, the ways
                                                  pipelines and avoid confusion.51 We                     incorporated by reference by the                       that the materials it incorporates by
                                                  also explained our policies on tariff                   Commission:
                                                  filings and on waiver requests.52                                                                              release timeline standards (WGQ Standards 1.3.2(i–
                                                                                                            (a) whether the standard is incorporated by
                                                     41. None of the comments took issue                  reference;                                             vi) and 5.3.2) in their tariffs. See, e.g., Standards for
                                                  with the Commission’s proposed                            (b) for those standards not incorporated by          Business Practices of Interstate Natural Gas
                                                  implementation schedule. Nor did the                    reference, the tariff provision that complies          Pipelines, Order No. 587–U, FERC Stats. & Regs.
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                                                                                                                                                                 ¶ 31,307, at P 39 & n.42 (2010). The pipeline would
                                                  comments take issue or seek                             with the standard; 56 and                              indicate which tariff provision complies with each
                                                                                                                                                                 of these standards.
                                                     49 Conforming Changes, Order No. 699, FERC              53 Order No. 587–V, FERC Stats. & Regs. ¶ 31,332      57 Shippers can use the Commission’s electronic
                                                  Stats. & Regs. ¶ 31,254 at P 10 (cross-referenced at    at PP 36–37; Order No. 809, FERC Stats. & Regs.        tariff system to locate the tariff record containing
                                                  120 FERC ¶ 61,134 (2007)).                              ¶ 31,368 at P 169.                                     the NAESB standards, which will indicate the
                                                     50 Version 3.0 NOPR, FERC Stats. & Regs. ¶ 32,708       54 See supra n.31.
                                                                                                                                                                 docket in which any waiver or extension of time
                                                  at P 23.                                                   55 Id.                                              was granted.
                                                     51 Id.                                                  56 For example, pipelines are required to include     58 Pub L. No. 104–113, 12(d), 110 Stat. 775 (1996),
                                                     52 Id. PP 23–27.                                     the full text of the NAESB nomination and capacity     15 U.S.C. 272 note (1997).



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                                                                   Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations                                                  67309

                                                  reference are reasonably available to                   with minor corrections applied through June             considers requests for waivers of the
                                                  interested parties and how interested                   29, 2015). These standards define the                   charges on a case by case basis based on
                                                  parties can obtain the materials.59 The                 implementation of various technologies                  need.
                                                                                                          necessary to communicate transactions and
                                                  regulations also require agencies to                    other electronic data using standard                    VI. Information Collection Statement
                                                  summarize, in the preamble of the final                 protocols for electronic commerce over the
                                                  rule, the material it incorporates by                   internet between NAESB trading partners.                  47. The collections of information for
                                                  reference. The seven NAESB standards                                                                            this Final Rule are being submitted to
                                                                                                             46. Our regulations provide that
                                                  being incorporated by reference in this                                                                         the Office of Management and Budget
                                                                                                          copies of the NAESB standards
                                                  Final Rule can be summarized as                                                                                 (OMB) for review under section 3507(d)
                                                                                                          incorporated by reference may be
                                                  follows:                                                                                                        of the Paperwork Reduction Act of
                                                                                                          obtained from the North American
                                                    • Additional Standards (Version 3.0,                  Energy Standards Board, 801 Travis                      1995 65 and OMB’s implementing
                                                  November 14, 2014, with minor corrections               Street, Suite 1675, Houston, TX 77002,                  regulations.66 OMB must approve
                                                  applied through June 29, 2015). These                                                                           information collection requirements
                                                                                                          Phone: (713) 356–0060. NAESB’s Web
                                                  standards cover general areas or standards                                                                      imposed by agency rules. The burden
                                                  applicable to multiple business activities,             site is at http://www.naesb.org/. Copies
                                                                                                          may be inspected at the Federal Energy                  estimates for this Final Rule are for one-
                                                  such as creditworthiness and gas/electric
                                                  operational communications.                             Regulatory Commission, Public                           time implementation of the information
                                                    • Nominations Related Standards (Version              Reference and Files Maintenance                         collection requirements of this Final
                                                  3.0, November 14, 2014, with minor                      Branch, 888 First Street NE.,                           Rule (including tariff filing,
                                                  corrections applied through June 29, 2015).             Washington, DC 20426, Phone: (202)                      documentation of the process and
                                                  These standards define the business                     502–8371, http://www.ferc.gov.60 The                    procedures, and IT work), and ongoing
                                                  processes used to schedule natural gas                                                                          burden.
                                                                                                          procedures utilized by NAESB make its
                                                  service on pipelines.
                                                    • Flowing Gas Related Standards (Version              standards reasonably available to those                   48. The Commission solicits
                                                  3.0, November 14, 2014, with minor                      affected by the Commission                              comments from the public on the
                                                  corrections applied through June 29, 2015).             regulations.61 Participants can join                    Commission’s need for this information,
                                                  These standards define the business                     NAESB, for an annual membership cost                    whether the information will have
                                                  processes related to the communication of               of $7,000, which entitles them to full                  practical utility, the accuracy of the
                                                  entitlement rights to flowing gas at a location,        participation in NAESB and enables                      burden estimates, recommendations to
                                                  the entitlement rights on a contractual basis,          them to obtain these standards at no                    enhance the quality, utility, and clarity
                                                  the management of imbalances, and the                   cost.62 Non-members may obtain the                      of the information to be collected, and
                                                  measurement and gas quality information of
                                                                                                          Individual Standards Manual or                          any suggested methods for minimizing
                                                  the actual flow of gas.
                                                    • Invoicing Related Standards (Version                Booklets for each standard by email for                 respondents’ burden, including the use
                                                  3.0, November 14, 2014, with minor                      $250 per manual or booklet, which in                    of automated information techniques.
                                                  corrections applied through June 29, 2015).             the case of these standards would total                 The burden estimates are for
                                                  These standards define the business process             $1,000.63 Nonmembers also may obtain                    implementing the information
                                                  for the communication of charges for services           the complete set of Standards Manuals,                  collection requirements of this Final
                                                  rendered (Invoice), communication of details            Booklets, and Contracts on CD for                       Rule. The Commission asks that any
                                                  about funds rendered in payment for services            $2,000. NAESB also provides a free                      revised burden estimates submitted by
                                                  rendered (Payment Remittance), and                      electronic read-only version of the
                                                  communication of the financial status of a
                                                                                                                                                                  commenters include the details and
                                                  customer’s account (Statement of Account).
                                                                                                          standards for a three business day                      assumptions used to generate the
                                                    • Quadrant Electronic Delivery                        period or, in the case of a regulatory                  estimates.
                                                  Mechanism Related Standards (Version 3.0,               comment period, through the end of the                    49. The collections of information
                                                  November 14, 2014, with minor corrections               comment period.64 In addition, NAESB                    related to this Final Rule fall under
                                                  applied through June 29, 2015). These                                                                           FERC–545 (Gas Pipeline Rates: Rate
                                                  standards establish the framework for the                 60 18  CFR 284.12.
                                                  electronic dissemination and communication                61 As  a private, consensus standards developer,
                                                                                                                                                                  Change (Non-Formal)) 67 and FERC–
                                                  of information between parties in the North             NAESB needs the funds obtained from its                 549C (Standards for Business Practices
                                                  American wholesale gas marketplace for EDI/             membership fees and sales of its standards to           of Interstate Natural Gas Pipelines).68
                                                  EDM transfers, batch flat file/EDM transfers,           finance the organization. The parties affected by       The following estimates of reporting
                                                                                                          these Commission regulations generally are highly
                                                  informational postings Web sites, EBB/EDM
                                                                                                          sophisticated and have the means to acquire the
                                                                                                                                                                  burden are related only to this Final
                                                  and interactive flat file/EDM.                          information they need to effectively participate in     Rule and include the costs to pipelines
                                                    • Capacity Release Related Standards                  Commission proceedings.                                 to comply with the Commission’s
                                                  (Version 3.0, November 14, 2014, with minor                62 North American Energy Standards Board
                                                                                                                                                                  directives in this Final Rule. The burden
                                                  corrections applied through June 29, 2015).             Membership Application, https://www.naesb.org/
                                                  These standards define the business                     pdf4/naesbapp.pdf.
                                                                                                                                                                  estimates are primarily related to start-
                                                  processes for communication of information                 63 NAESB Materials Order Form, https://              up to implement these standards and
                                                  related to the release or transfer of any               www.naesb.org//pdf/ordrform.pdf.                        regulations and will not result in
                                                  portion of a transmission service requester’s              64 Procedures for non-members to evaluate work       ongoing costs.
                                                  contract rights for transportation on                   products before purchasing, https://www.naesb.org/
                                                  pipelines.                                              misc/NAESB_Nonmember_Evaluation.pdf. See                  65 44 U.S.C. 3507(d).
                                                                                                          Incorporation by Reference, 79 FR at 66271, n. 51
                                                    • Internet Electronic Transport Related                                                                         66 5CFR 1320.
                                                                                                          & 53 (Nov. 7, 2014) (citing to NAESB’s procedure
                                                  Standards (Version 3.0, November 14, 2014,              of providing ‘‘no-cost, no-print electronic access,’’     67 FERC–545 covers rate change filings made by

                                                                                                          NAESB Comment, at 1, available at http://               natural gas pipelines, including tariff changes.
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                                                    59 1 CFR 51.5. See Incorporation by Reference, 79     www.regulations.gov/#!documentDetail;D=OFR-               68 FERC–549C covers Standards for Business

                                                  FR 66267 (Nov. 7, 2014).                                2013-0001-0023).                                        Practices of Interstate Natural Gas Pipelines.




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                                                  67310                Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations

                                                                                                           ONE-TIME EFFECTS OF NOPR IN DOCKET RM96–1–038
                                                                                                                                                       [Rounded]

                                                                                                                      Annual                                                                                      Total annual burden           Cost per
                                                                                          Number of                  number of                Total number                Average burden and                        hours and total           respondent 70
                                                                                        respondents 69            responses per               of responses                 cost per response                          annual cost                  ($)
                                                                                                                    respondent

                                                                                                (1)                        (2)                  (1)*(2)=(3)                             (4)                            (3)*(4)=(5)                (5)÷(1)

                                                  FERC–545A 71 .............                             165                            1                      165      10 hrs.; $837 ...............            1,650 hrs.; $138,056 ...               $837
                                                  FERC–549C 72 .............                             165                            1                      165      22 hrs.; $1,841 ............             3,630 hrs.; $303,722 ...              $1,841

                                                        Totals ....................    ........................   ........................   ........................   ......................................   5,280 hrs.; $441,778.



                                                    Information Collection Costs: The                                      annualized cost for all respondents to be
                                                  Commission estimates the average                                         the following:

                                                                                                                                                                                                                           FERC–545           FERC–549C

                                                  Annualized Capital/Startup Costs ............................................................................................................................                $138,056             $303,722
                                                  Annualized Costs (Operations & Maintenance) ......................................................................................................                                N/A                  N/A

                                                        Total Annualized Costs ....................................................................................................................................            $138,056             $303,722
                                                     Total Cost for all Respondents = $441,778.


                                                     OMB regulations require OMB to                                        Final Rule to its regulations are                                               52. Comments concerning the
                                                  approve certain information collection                                   necessary to establish more efficient                                        collections of information and the
                                                  requirements imposed by agency rule.                                     coordination between the natural gas                                         associated burden estimates should be
                                                  The Commission is submitting                                             and electric industries. Requiring such                                      sent to the Commission and to the
                                                  notification of this Final Rule to OMB.                                  information ensures both a common                                            Office of Management and Budget,
                                                  These information collections are                                        means of communication and common                                            Office of Information and Regulatory
                                                  mandatory requirements.                                                  business practices to eliminate                                              Affairs, Washington, DC 20503
                                                     Title: FERC–545,73 Gas Pipeline Rates:                                miscommunication for participants                                            [Attention: Desk Officer for the Federal
                                                  Rates Change (Non-Formal); FERC–                                                                                                                      Energy Regulatory Commission,
                                                                                                                           engaged in the sale of electric energy at
                                                  549C, Standards for Business Practices                                                                                                                telephone: (202) 395–0710, fax: (202)
                                                                                                                           wholesale and the transportation of
                                                  of Interstate Natural Gas Pipelines                                                                                                                   395–4718]. For security reasons,
                                                     Action: Information collections.                                      natural gas. These requirements
                                                                                                                           conform to the Commission’s plan for                                         comments to OMB should be submitted
                                                     OMB Control Nos.: 1902–0154, 1902–                                                                                                                 by email to: oira_submission@
                                                  0174                                                                     efficient information collection,
                                                                                                                           communication, and management                                                omb.eop.gov. Comments submitted to
                                                     Respondents: Business or other for
                                                                                                                           within the natural gas pipeline industry.                                    OMB should include OMB Control
                                                  profit (i.e., Natural Gas Pipelines,
                                                                                                                                                                                                        Numbers 1902–0154 and 1902–0174.
                                                  applicable to only a few small                                           The Commission has assured itself, by
                                                  businesses). Although the intraday                                       means of its internal review, that there                                     VII. Environmental Analysis
                                                  reporting requirements will affect                                       is specific, objective support for the
                                                  electric plant operators, the Commission                                 burden estimates associated with the                                            53. The Commission concludes that
                                                  is not imposing the reporting burden of                                  information requirements.                                                    neither an Environmental Assessment
                                                  adopting these standards on those                                                                                                                     nor an Environmental Impact Statement
                                                                                                                              51. Interested persons may obtain                                         is required for this Final Rule under
                                                  entities.
                                                     Frequency of Responses: One-time                                      information on the reporting                                                 section 380.4(a) of the Commission’s
                                                  implementation (business procedures,                                     requirements by contacting the                                               regulations, which provides a
                                                  capital/start-up).                                                       following: Federal Energy Regulatory                                         categorical exemption for actions that
                                                     50. Internal Review: The Commission                                   Commission, 888 First Street NE.,                                            are clarifying, corrective, or procedural,
                                                  has reviewed the proposed business                                       Washington, DC 20426 [Attention: Ellen                                       or that do not substantively change the
                                                  practice standards of natural gas                                        Brown, Office of the Executive Director,                                     effect of legislation or regulations being
                                                  pipelines and has determined that the                                    email: DataClearance@ferc.gov, phone:                                        amended, for information gathering,
                                                  revisions the Commission makes in this                                   (202) 502–8663, fax: (202) 273–0873].                                        analysis, and dissemination, or for the
                                                    69 The number of respondents is the number of                             71 The mean hourly cost of tariff filings and                                72 The mean hourly cost of tariff filings and

                                                  entities in which a change in burden from the                            implementation for interstate natural gas pipelines                          implementation for interstate natural gas pipelines
                                                  current standards to the proposed exists, not the                        is $83.67. This represents the average wage (salary                          is $83.67. It is composed of the skill sets and related
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                                                  total number of entities from the current or                             and benefits for 2,080 annual work-hours) of the                             hourly costs described above.
                                                  proposed standards that are applicable.
                                                    70 Wage data is based on the Bureau of Labor
                                                                                                                           following occupational categories: ‘‘Legal’’ ($128.02                           73 In the supporting statement for the NOPR, we

                                                                                                                           per hour), ‘‘Computer Analyst’’ ($83.50 per hour),                           submitted Gas and Pipeline Rates: Rate Changes
                                                  Statistics data for 2012 (‘‘May 2012 National
                                                                                                                           and ‘‘Office and Administrative’’ ($39.49 per hour).                         (non-formal) under the temporary collection no.
                                                  Industry-Specific Occupational Employment and
                                                  Wage Estimates, [for] Sector 22—Utilities’’ at http://                   Wage data is available from the Bureau of Labor                              FERC–545A to ensure timely submission to OMB as
                                                  bls.gov/oes/current/naics2_22.htm) and is compiled                       Statistics at http://bls.gov/oes/current/naics2_                             another unrelated item was pending OMB review
                                                  for the top 10 percent earned. For the estimate of                       22.htm and is compiled for the top 10 percent                                under FERC–545 (and only one item per collection
                                                  the benefits component, see http://www.bls.gov/                          earned. For the estimate of the benefits component,                          can be pending at OMB).
                                                  news.release/ecec.nr0.htm.                                               see http://www.bls.gov/news.release/ecec.nr0.htm.



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                                                                   Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations                                             67311

                                                  sale, exchange, or transportation of                    RFA,78 the Commission certifies that                     Issued: October 16, 2015.
                                                  natural gas under sections 4, 5, and 7 of               this Final Rule will not have a                        Kimberly D. Bose,
                                                  the Natural Gas Act that require no                     significant economic impact on a                       Secretary.
                                                  construction of facilities.74                           substantial number of small entities.                    In consideration of the foregoing, the
                                                  VIII. Regulatory Flexibility Act                        IX. Document Availability                              Commission amends parts 157, 260, and
                                                                                                                                                                 284, chapter I, title 18, Code of Federal
                                                     54. The Regulatory Flexibility Act of                   56. In addition to publishing the full              Regulations, as follows.
                                                  1980 (RFA) 75 generally requires a                      text of this document in the Federal
                                                  description and analysis of final rules                 Register, the Commission provides all                  PART 157—APPLICATIONS FOR
                                                  that will have significant economic                     interested persons an opportunity to                   CERTIFICATES OF PUBLIC
                                                  impact on a substantial number of small                 view and/or print the contents of this                 CONVENIENCE AND NECESSITY AND
                                                  entities. The Small Business                            document via the Internet through                      FOR ORDERS PERMITTING AND
                                                  Administration (SBA) revised its size                   FERC’s Home Page (http://                              APPROVING ABANDONMENT UNDER
                                                  standard (effective January 22, 2014) for               www.ferc.gov) and in FERC’s Public                     SECTION 7 OF THE NATURAL GAS
                                                  electric utilities from a standard based                Reference Room during normal business                  ACT
                                                  on megawatt hours to a standard based                   hours (8:30 a.m. to 5:00 p.m. Eastern
                                                  on the number of employees including                    time) at 888 First Street NE., Room 2A,                ■ 1. The authority citation for part 157
                                                  affiliates.76                                           Washington, DC 20426.                                  continues to read as follows:
                                                     55. This Final Rule applies only to                                                                             Authority: 15 U.S.C. 717–717z.
                                                  interstate natural gas pipelines, most of                  57. From FERC’s Home Page on the
                                                  which are not small businesses. The                     Internet, this information is available on             ■ 2. Section 157.14 is amended by
                                                  Commission estimates that                               eLibrary. The full text of this document               revising paragraph (a) to read as follows:
                                                  approximately 165 interstate pipeline                   is available on eLibrary in PDF and
                                                                                                          Microsoft Word format for viewing,                     § 157.14   Exhibits.
                                                  entities are potential respondents
                                                  subject to the data reporting                           printing, and/or downloading. To access                   (a) To be attached to each
                                                  requirements of FERC–545 and also are                   this document in eLibrary, type the                    application. All exhibits specified must
                                                  subject to data collection FERC 549–C                   docket number excluding the last three                 accompany each application when
                                                  reporting requirements. For the year                    digits of this document in the docket                  tendered for filing. Together with each
                                                  2012 (the most recent year for which                    number field.                                          exhibit applicant must provide a full
                                                  information is available), only eleven                     58. User assistance is available for                and complete explanation of the data
                                                  companies not affiliated with larger                    eLibrary and the FERC’s Web site during                submitted, the manner in which it was
                                                  companies had annual revenues of less                   normal business hours from FERC                        obtained, and the reasons for the
                                                  than $25.5 million and are defined by                   Online Support at 202–502–6652 (toll                   conclusions derived from the exhibits. If
                                                  the SBA as ‘‘small entities.’’ These                    free at 1–866–208–3676) or email at                    the Commission determines that a
                                                  companies constitute about seven                        ferconlinesupport@ferc.gov, or the                     formal hearing upon the application is
                                                  percent of the total universe of potential              Public Reference Room at (202) 502–                    required or that testimony and hearing
                                                  respondents. The Commission estimates                   8371, TTY (202) 502–8659. Email the                    exhibits should be filed, the Secretary
                                                  that the one-time implementation cost                   Public Reference Room at                               will promptly notify the applicant that
                                                  of the proposals in this Final Rule is                  public.referenceroom@ferc.gov.                         submittal of all exhibits and testimony
                                                  $441,778 (or $2,677 per entity,                                                                                of all witnesses to be sponsored by the
                                                  regardless of entity size).77 The                       X. Effective Date and Congressional                    applicant in support of his case-in-chief
                                                  Commission does not consider the                        Notification                                           is required. Submittal of these exhibits
                                                  estimated $2,677 impact per entity to be                                                                       and testimony must be within 20 days
                                                                                                            59. These regulations are effective
                                                  significant. Moreover, these                                                                                   from the date of the Secretary’s notice,
                                                                                                          December 2, 2015. The Commission has
                                                  requirements are designed to benefit all                                                                       or any other time as the Secretary will
                                                                                                          determined (with the concurrence of the
                                                  customers, including small businesses                                                                          specify. Exhibits, except exhibits F, F–
                                                                                                          Administrator of the Office of
                                                  that must comply with them. Further, as                                                                        1, G, G–I, and G–II, must be submitted
                                                                                                          Information and Regulatory Affairs of
                                                  noted above, adoption of consensus                                                                             to the Commission on electronic media
                                                                                                          OMB) that this rule is not a ‘‘major rule’’
                                                  standards helps ensure the                                                                                     as prescribed in § 385.2011 of this
                                                                                                          as defined in section 351 of the Small
                                                  reasonableness of the standards by                                                                             chapter. Receipt and delivery point
                                                                                                          Business Regulatory Enforcement
                                                  requiring that the standards draw                                                                              information required in various exhibits
                                                                                                          Fairness Act of 1996. This Final Rule is
                                                  support from a broad spectrum of                                                                               must be labeled with a location point
                                                                                                          being submitted to the Senate, House,
                                                  industry participants representing all                                                                         name and code in conformity with the
                                                                                                          and Government Accountability Office.
                                                  segments of the industry. Because of                                                                           location name and code the pipeline has
                                                  that representation and the fact that                   List of Subjects                                       adopted in conformance with § 284.13(f)
                                                  industry conducts business under these                                                                         of this chapter. Intervenors and persons
                                                                                                          18 CFR Parts 157 and 260                               becoming intervenors after the date of
                                                  standards, the Commission’s regulations
                                                  should reflect those standards that have                  Natural gas, Reporting and                           the Secretary’s notice must be advised
                                                  the widest possible support.                            recordkeeping requirements.                            by the applicant of the afore-specified
                                                  Accordingly, pursuant to § 605(b) of the                                                                       exhibits and testimony, and must be
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                                                                                                          18 CFR Part 284                                        furnished with copies upon request. If
                                                    74 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5),                                                                  this section requires an applicant to
                                                  380.4(a)(27).
                                                                                                            Incorporation by reference, Natural                  reveal Critical Energy Infrastructure
                                                    75 5 U.S.C. 601–612.                                  gas, Reporting and recordkeeping                       Information (CEII), as defined by
                                                    76 SBA Final Rule on ‘‘Small Business Size            requirements.                                          § 388.113(c) of this chapter, to any
                                                  Standards: Utilities,’’ 78 FR 77343 (Dec. 23, 2013).                                                           person, the applicant shall follow the
                                                    77 This number is derived by dividing the total
                                                                                                            By the Commission.
                                                  cost figure by the number of respondents. $441,778/
                                                                                                                                                                 procedures set out in § 157.10(d).
                                                  165 = $2,677.                                             78 5   U.S.C. 605(b).                                *      *    *     *     *


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                                                  67312            Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations

                                                  ■ 3. Section 157.18 is amended by                       PART 284—CERTAIN SALES AND                            the contract, including the location
                                                  revising paragraph (c) introductory text                TRANSPORTATION OF NATURAL GAS                         name and code adopted by the pipeline
                                                  to read as follows:                                     UNDER THE NATURAL GAS POLICY                          in conformance with paragraph (f) of
                                                                                                          ACT OF 1978 AND RELATED                               this section for each point, zone or
                                                  § 157.18 Applications to abandon facilities             AUTHORITIES                                           segment;
                                                  or service; exhibits.
                                                                                                          ■ 6. The authority citation for part 284              *      *     *    *     *
                                                     (c) Exhibit V—Flow diagram showing
                                                                                                          continues to read as follows:                            (2) * * *
                                                  daily design capacity and reflecting
                                                  operation of applicant’s system after                     Authority: 15 U.S.C. 717–717z, 3301–3432;              (iv) The receipt and delivery points
                                                  abandonment. Receipt and delivery                       42 U.S.C. 7101–7352; 43 U.S.C. 1331–1356.             and the zones or segments covered by
                                                  point information required in various                   ■ 7. Section 284.12 is amended by                     the contract, including the location
                                                  exhibits must be labeled with a location                revising paragraph (a)(1) to read as                  name and code adopted by the pipeline
                                                  point name and code in accordance                       follows:                                              in conformance with paragraph (f) of
                                                  with the location name and code the                                                                           this section for each point, zone or
                                                                                                          § 284.12 Standards for pipeline business              segment;
                                                  pipeline has adopted in conformance                     operations and communications.
                                                  with § 284.13(f) of this chapter. A flow                                                                      *      *     *    *     *
                                                                                                             (a) * * *
                                                  diagram showing daily design capacity                      (1) An interstate pipeline that                       (c) * * *
                                                  and reflecting operating conditions of                  transports gas under subparts B or G of                  (2) * * *
                                                  applicant’s system after abandonment of                 this part must comply with the business
                                                  facilities on that segment of the system                                                                         (vi) The receipt and delivery points
                                                                                                          practices and electronic
                                                  affected by the abandonment, including                  communications standards as                           and the zones or segments covered by
                                                  the following:                                          promulgated by the North American                     the contract, including the location
                                                  *      *    *      *    *                               Energy Standards Board, as                            name and code adopted by the pipeline
                                                                                                          incorporated herein by reference in                   in conformance with paragraph (f) of
                                                  PART 260—STATEMENTS AND                                 paragraphs (a)(1)(i) thru (vii) of this               this section for each point, zone or
                                                  REPORTS (SCHEDULES)                                     section.                                              segment;
                                                                                                             (i) Additional Standards (Version 3.0,             *      *     *    *     *
                                                  ■ 4. The authority citation for part 260                November 14, 2014, with minor
                                                                                                                                                                   (f) Location codes. An interstate
                                                  continues to read as follows:                           corrections applied through June 29,
                                                                                                                                                                pipeline must maintain a posting on its
                                                                                                          2015);
                                                    Authority: 15 U.S.C. 717–717z, 3301–3432;                (ii) Nominations Related Standards                 publicly available Internet Web site of
                                                  42 U.S.C. 7101–7352.                                    (Version 3.0, November 14, 2014, with                 the pipeline’s location names and codes
                                                                                                          minor corrections applied through June                for all current and inactive receipt and
                                                  ■ 5. Section 260.8 is amended by                        29, 2015);                                            delivery points on its system, including,
                                                  revising paragraph (a) to read as follows:                 (iii) Flowing Gas Related Standards                for each point: Direction of flow, the
                                                                                                          (Version 3.0, November 14, 2014, with                 location of the point, the location zone
                                                  § 260.8 System flow diagrams: Format No.
                                                  FERC 567.                                               minor corrections applied through June                if such exists, the Commission company
                                                                                                          29, 2015);                                            identification code (CID), if any, of the
                                                    (a) Each Major natural gas pipeline                      (iv) Invoicing Related Standards                   upstream and/or downstream entity, the
                                                  company, having a system delivery                       (Version 3.0, November 14, 2014, with                 location type, the current status as
                                                  capacity in excess of 100,000 Mcf per                   minor corrections applied through June                active and inactive, and the date(s) the
                                                  day (measured at 14.73 p.s.i.a. and 60°                 29, 2015);                                            point becomes active or inactive. The
                                                  F), shall file with the Commission by                      (v) Quadrant Electronic Delivery                   pipeline must provide the information
                                                  June 1 of each year five (5) copies of a                Mechanism Related Standards (Version                  in downloadable file formats, in
                                                  diagram or diagrams reflecting operating                3.0, November 14, 2014, with minor                    conformity with the requirements of 18
                                                  conditions on its main transmission                     corrections applied through June 29,
                                                                                                                                                                CFR 284.12 of this chapter.
                                                  system during the previous twelve                       2015);
                                                                                                             (vi) Capacity Release Related                      ■ 9. Section 284.126 is amended by
                                                  months ended December 31. For
                                                                                                          Standards (Version 3.0, November 14,                  revising paragraph (b)(1)(iv) to read as
                                                  purposes of system peak deliveries, the
                                                                                                          2014, with minor corrections applied                  follows:
                                                  heating season overlapping the year’s
                                                                                                          through June 29, 2015); and
                                                  end shall be used. Facilities shall be                     (vii) Internet Electronic Transport                § 284.126   Reporting requirements.
                                                  those installed and in operation on                     Related Standards (Version 3.0,
                                                  December 31 of the reporting year. All                                                                          (b) * * *
                                                                                                          November 14, 2014, with minor
                                                  volumes shall be reported on a uniform                  corrections applied through June 29,                    (1) * * *
                                                  stated pressure and temperature base.                   2015).                                                  (iv) The primary receipt and delivery
                                                  Receipt and delivery point information                  *       *    *     *     *                            points covered by the contract,
                                                  required in various exhibits must be                    ■ 8. Section 284.13 is amended by                     identified by the list of points that the
                                                  labeled with a location point name and                  revising paragraphs (b)(1)(vi), (b)(2)(iv)            pipeline has published with the
                                                  code in accordance with the location                    and (c)(2)(vi), and adding paragraph (f)              Commission;
asabaliauskas on DSK5VPTVN1PROD with RULES




                                                  name and code adopted by the pipeline                   to read as follows:                                   *     *     *    *      *
                                                  in accordance with § 284.13(f) of this                                                                        [FR Doc. 2015–27806 Filed 10–30–15; 8:45 am]
                                                  chapter.                                                § 284.13 Reporting requirements for
                                                                                                          interstate pipelines.                                 BILLING CODE 6717–01–P
                                                  *     *      *     *    *
                                                                                                            (b) * * *
                                                                                                            (1) * * *
                                                                                                            (vi) The receipt and delivery points
                                                                                                          and the zones or segments covered by


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Document Created: 2018-03-01 11:29:38
Document Modified: 2018-03-01 11:29:38
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule will become effective December 2, 2015. Implementation of these standards is required on April 1, 2016. The incorporation by reference of certain publications listed in this rule is approved by the Director of the Federal Register as of December 2, 2015.
ContactStanley Wolf (technical issues), Office of Energy Policy and Innovation, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-6841, Email: [email protected]
FR Citation80 FR 67302 
CFR Citation18 CFR 157
18 CFR 260
18 CFR 284
CFR AssociatedNatural Gas; Reporting and Recordkeeping Requirements and Incorporation by Reference

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