82_FR_16939 82 FR 16874 - Pipeline Safety: Underground Natural Gas Storage Facility User Fee

82 FR 16874 - Pipeline Safety: Underground Natural Gas Storage Facility User Fee

DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration

Federal Register Volume 82, Issue 65 (April 6, 2017)

Page Range16874-16876
FR Document2017-06803

On November 7, 2016, PHMSA published a notice and request for comments in the Federal Register, titled ``Pipeline Safety: Underground Natural Gas Storage Facility User Fee'' (November 2016 Notice), seeking comments from underground natural gas storage facility operators on a proposed PHMSA pipeline user-fee assessment and rate structure. PHMSA received nine comments in the docket. We are publishing this notice of agency action to address the comments received and to announce the rate structure PHMSA will implement in fiscal year (FY) 2017 if Congress appropriates FY 2017 funds for the Pipeline Safety Fund's Underground Natural Gas Storage Facility Safety Account.

Federal Register, Volume 82 Issue 65 (Thursday, April 6, 2017)
[Federal Register Volume 82, Number 65 (Thursday, April 6, 2017)]
[Notices]
[Pages 16874-16876]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06803]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2016-0092]


Pipeline Safety: Underground Natural Gas Storage Facility User 
Fee

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
DOT.

ACTION: Notice of agency action.

-----------------------------------------------------------------------

SUMMARY: On November 7, 2016, PHMSA published a notice and request for 
comments in the Federal Register, titled ``Pipeline Safety: Underground 
Natural Gas Storage Facility User Fee'' (November 2016 Notice), seeking 
comments from underground natural gas storage facility operators on a 
proposed PHMSA pipeline user-fee assessment and rate structure. PHMSA 
received nine comments in the docket. We are publishing this notice of 
agency action to address the comments received and to announce the rate 
structure PHMSA will implement in fiscal year (FY) 2017 if Congress 
appropriates FY 2017 funds for the Pipeline Safety Fund's Underground 
Natural Gas Storage Facility Safety Account.

FOR FURTHER INFORMATION CONTACT: Roger Little by telephone at 202-366-
4569, by fax at 202-366-4566, by email at [email protected], or by 
mail at U.S. Department of Transportation, PHMSA, 1200 New Jersey 
Avenue SE., PHP-2, Washington, DC 20590-0001.

SUPPLEMENTARY INFORMATION:

Background

    The Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) 
(Pub. L. 99-272, sec. 7005), codified in part at section 60301 of title 
49, United States Code, authorizes the assessment and collection of 
user fees to fund the pipeline safety activities conducted under 
chapter 601 of title 49. On June 22, 2016, President Obama signed into 
law the Protecting our Infrastructure of Pipelines and Enhancing Safety 
Act of 2016 (Pub. L. 114-183) (PIPES Act of 2016). Section 12 of the 
PIPES Act of 2016 mandates that PHMSA issue regulations for underground 
natural gas storage facilities, authorizes user fees on operators of 
these facilities, and directs PHMSA to prescribe procedures to collect 
those fees upon appropriation. Section 2 of the PIPES Act of 2016 
authorizes $8 million per year to be appropriated from those fees for 
each of FY 2017-2019 for the newly established Underground Natural Gas 
Storage Facility Safety Account in the Pipeline Safety Fund. 
Accordingly, if Congress appropriates funds to this account for FY 2017 
and beyond, PHMSA will collect user fees from the operators of the 
facilities.

Summary of Comments on the November 7, 2016 Notice

    The November 2016 Notice advised all underground natural gas 
storage facility operators of a proposed PHMSA pipeline user fee 
assessment and rate structure. 81 FR 78261. During the two-month 
response period, PHMSA received comments on the proposed underground 
natural gas storage user-fee billing methodology from nine commenters: 
David Reitz; the Louisiana Mid-Continent Oil and Gas Association; 
ENSTOR Operating Company; Consumers Energy; Cook Inlet Natural Gas 
Storage Alaska; Atmos Energy Corporation; Pacific Gas and Electric 
Company; the Texas Pipeline Association; and the Interstate Natural Gas 
Association of America (INGAA). The comments may be found at http://www.regulations.gov in Docket Number PHMSA-2016-0092. Consumers Energy, 
Atmos Energy Corporation, the Texas Pipeline Association, and INGAA 
submitted comments generally supporting the rate structure proposed by 
PHMSA in the November 2016 Notice. The remaining comments are 
summarized below with PHMSA's response:
    Comment: The Louisiana Mid-Continent Oil and Gas Association and 
Cook Inlet Natural Gas Storage Alaska questioned whether working-gas 
capacity was the most appropriate basis for the rate structure and 
expressed the view that using the number of wells at a facility may be 
a more suitable basis for the user-fee structure.
    Response: PHMSA agrees that the number of wells would be an 
appropriate basis for the user-fee rate structure. However, the PHMSA 
information collection results that will include the number of wells 
will not be available for fiscal year 2017 billing. PHMSA is aware of 
an underground natural gas storage facility survey recently conducted 
by the American Gas Association (AGA). The survey results, however, are 
not publicly available. PHMSA also has no way to assess the accuracy of 
the AGA survey results and in several cases they appear to be 
inconsistent with information reported to the Energy Information 
Administration (EIA). In the absence of available, reliable data for 
another suitable metric, PHMSA's only viable option for an equitable 
allocation of fees among facility operators in the first year is 
working-gas capacity. After PHMSA's annual reporting is in place and 
PHMSA collects information regarding the number of wells, well count is 
likely to become the basis of the user-fee rate structure for these 
facilities in future fiscal years.
    Comment: David Reitz suggested PHMSA base the tier determination on 
the working gas an operator has available to serve its customers rather 
than total working-gas capacity because doing so would facilitate a 
more precise determination of the appropriate tier in cases where 
storage fields are jointly owned.
    Response: PHMSA's source for working-gas capacity data is the EIA. 
PHMSA currently lacks data to determine to which customers gas in

[[Page 16875]]

storage is available. Therefore, PHMSA will need to use the total 
working-gas capacity of the field, but appreciates the comment and may 
revisit this issue in the future if a reliable data source becomes 
available that breaks working gas down by owner for jointly-owned 
storage fields and the joint owners are not able to apportion the fee 
among themselves.
    Comment: Pacific Gas and Electric Company recommended that PHMSA 
use the number of wells collected on the new PHMSA annual report as the 
basis for the user-fee rate structure.
    Response: As stated above, PHMSA agrees that the number of wells 
would be an appropriate basis for the fee structure. With respect to FY 
2017, however, PHMSA does not expect to collect annual report data from 
facility operators before the FY 2017 billing.
    Comment: The Louisiana Mid-Continent Oil and Gas Association 
requested clarification as to how PHMSA proposes to regulate Louisiana 
facilities and specifically how regulatory activity will be funded.
    Response: PHMSA is supportive of state oversight activities and 
expects the appropriate Louisiana state agency to become certified to 
regulate Louisiana's intrastate facilities in accordance with 49 U.S.C. 
60141(c). User fees collected by PHMSA from operators of intrastate 
underground natural gas storage facilities regulated by Louisiana would 
be granted to the certified Louisiana agency. PHMSA would regulate any 
interstate facilities in Louisiana. If a Louisiana agency does not 
become certified, PHMSA will be responsible for regulating both the 
interstate and intrastate facilities in Louisiana.
    Comment: ENSTOR Operating Company asked if PHMSA will sum the 
working-gas capacity of facilities for the operator and its affiliates.
    Response: PHMSA will sum the working-gas capacity for all fields 
operated by each holder of a PHMSA-issued operator identification 
number. For the past several months, PHMSA has been contacting 
operators of storage facilities to determine the appropriate operator 
identification number for each facility reported to the EIA.
    Comment: ENSTOR Operating Company, LLC, asked if PHMSA has a 
different definition of working-gas capacity than the EIA.
    Response: PHMSA does not have a different definition of working-gas 
capacity. PHMSA will use the working-gas capacity reported to the EIA.
    Comment: ENSTOR Operating Company, LLC, requested that PHMSA 
provide further analysis supporting the proposed user-fee assessment 
tier structure to ensure the regulated community can fully comment.
    Response: PHMSA provided a full description of the analysis in the 
November 2016 Notice. PHMSA will also place a spreadsheet in the docket 
with this notice to provide a more detailed breakdown of the data 
behind the analysis.

Revised Underground Natural Gas Storage Facility User-Fee Plan

    As discussed above in the comment responses, in the absence of 
available, reliable data for another suitable metric, PHMSA's only 
viable option for an equitable allocation of fees among facility 
operators in the first year is working-gas capacity. Accordingly, for 
FY 2017 billing, PHMSA will use working-gas capacity as the basis for 
the user-fee rate structure. PHMSA will use the working-gas capacity 
values from the most recent Form EIA-191 Monthly Underground Natural 
Gas Storage Report. PHMSA will sum the working-gas capacity for all 
fields operated by the holder of a PHMSA-issued operator identification 
number. For fields where PHMSA is unable to determine the operator 
identification number, working-gas capacities will be summed based on 
the company name in the Form EIA-191 data. If a company receives a bill 
that it believes to be in error in some way, it should contact PHMSA 
for further information, using the Web site http://www.phmsa.dot.gov/pipeline/operator-resources/pay-user-fee-assessments.
    The operator working-gas capacity values will be divided into 10 
tiers. The lowest values will be in tier 1 and the highest values in 
tier 10. The minimum and maximum working-gas capacities for each tier 
will be selected to place an equal number of operators in each tier. 
Each tier will have a user-fee assessment to be paid by each operator 
in the tier.
    In the November 2016 Notice, PHMSA used Form EIA-191 annual data 
from 2015 to determine the published assessment per tier and tier 
ranges. Based on Form EIA-191 monthly data available through the EIA's 
Natural Gas Annual Respondent Query System,\1\ and summing working-gas 
capacity using the EIA company name, the tiers and assessment per tier 
to collect $8,000,000 would be:
---------------------------------------------------------------------------

    \1\ http://www.eia.gov/cfapps/ngqs/ngqs.cfm?f_report=RP8&f_sortby=&f_items=&f_year_start=&f_year_end=&f_show_compid=&f_fullscreen=.

------------------------------------------------------------------------
                                   Assessment      Working-gas capacity
              Tier                per operator         (Mcf) range
------------------------------------------------------------------------
1..............................         $11,799  Less than 930,000.
2..............................          23,599  More than 930,000 and
                                                  less than 3,000,000.
3..............................          29,499  More than 3,000,000 and
                                                  less than 5,800,000.
4..............................          35,398  More than 5,800,000 and
                                                  less than 11,000,000.
5..............................          47,198  11,000,000 or more and
                                                  less than 13,700,000.
6..............................          58,997  More than 13,700,000
                                                  and less than
                                                  21,000,000.
7..............................          70,796  More than 21,000,000
                                                  and less than
                                                  32,100,000.
8..............................          76,696  More than 32,100,000
                                                  and less than
                                                  48,000,000.
9..............................          88,496  More than 47,000,000
                                                  and less than
                                                  91,500,000.
10.............................         147,493  More than 91,500,000.
------------------------------------------------------------------------

    PHMSA placed a spreadsheet in the docket showing the EIA company 
names in each tier, as well as the methodology used to determine the 
assessment per tier and tier ranges. If Congress appropriates less than 
$8 million to the Underground Natural Gas Storage Facility Safety 
Account, PHMSA will proportionally reduce the assessment for each tier 
to collect the appropriated amount. Regardless of the appropriated 
amount, PHMSA expects that approximately 25% will fund PHMSA actions 
and 75% will fund grants to certified state agencies.
    Finally, in the November 2016 Notice, we expressed an intent to 
assess user fees on operators of active fields on the

[[Page 16876]]

EIA list. Since then, PHMSA has learned that the EIA includes inactive 
fields in the Form EIA-191 data because inactive fields could be 
restored to service at any time. The EIA removes a field from the Form 
EIA-191 list only after the company reports that all wells connected to 
the field have been abandoned. Essentially, inactive fields on the Form 
EIA-191 list are idle, but not abandoned. Therefore, at least for 
fiscal year 2017 billing, PHMSA will use the EIA-191 form data, which 
includes inactive wells.
    This approach is also consistent with PHMSA's exercise of 
regulatory jurisdiction over pipelines and with its assessment of user 
fees on such pipelines. In an Advisory Bulletin published on August 16, 
2016, titled: ``Clarifications of Terms Relating to Pipeline 
Operational Status,'' PHMSA emphasized that idle pipelines are subject 
to the same regulatory requirements as active pipelines. 81 FR 54512. 
This same regulatory approach applies to underground natural gas 
storage fields. Because inactive fields could be restored to service, 
PHMSA will exercise regulatory authority over inactive fields. 
Accordingly, PHMSA will bill both inactive and active fields appearing 
in the Form EIA-191 data.

    Issued in Washington, DC, on March 31, 2017, under authority 
delegated in 49 CFR 1.97.
Alan K. Mayberry,
Associate Administrator for Pipeline Safety.
[FR Doc. 2017-06803 Filed 4-5-17; 8:45 am]
 BILLING CODE 4910-60-P



                                                  16874                          Federal Register / Vol. 82, No. 65 / Thursday, April 6, 2017 / Notices

                                                  to the FMCSA Administrator on post-                     (November 2016 Notice), seeking                       ENSTOR Operating Company;
                                                  accident reporting requirements,                        comments from underground natural                     Consumers Energy; Cook Inlet Natural
                                                  specifically those in section 5306.                     gas storage facility operators on a                   Gas Storage Alaska; Atmos Energy
                                                  During the April 24 meeting, the                        proposed PHMSA pipeline user-fee                      Corporation; Pacific Gas and Electric
                                                  Committee will provide suggestions on                   assessment and rate structure. PHMSA                  Company; the Texas Pipeline
                                                  the implementation of its                               received nine comments in the docket.                 Association; and the Interstate Natural
                                                  recommendations, seeking                                We are publishing this notice of agency               Gas Association of America (INGAA).
                                                  standardization of definitions related to               action to address the comments received               The comments may be found at http://
                                                  crash reporting, classification of                      and to announce the rate structure                    www.regulations.gov in Docket Number
                                                  Minimum Model Uniform Crash Criteria                    PHMSA will implement in fiscal year                   PHMSA–2016–0092. Consumers Energy,
                                                  (MMUCC) and which should be                             (FY) 2017 if Congress appropriates FY                 Atmos Energy Corporation, the Texas
                                                  prioritized for inclusion on police                     2017 funds for the Pipeline Safety                    Pipeline Association, and INGAA
                                                  accident reporting forms, and a                         Fund’s Underground Natural Gas                        submitted comments generally
                                                  discussion of how to best implement the                 Storage Facility Safety Account.                      supporting the rate structure proposed
                                                  PAR’s recommendations. The PAR                          FOR FURTHER INFORMATION CONTACT:                      by PHMSA in the November 2016
                                                  operates in accordance with FACA.                       Roger Little by telephone at 202–366–                 Notice. The remaining comments are
                                                                                                          4569, by fax at 202–366–4566, by email                summarized below with PHMSA’s
                                                  II. Meeting Participation                                                                                     response:
                                                                                                          at Roger.Little@dot.gov, or by mail at
                                                     Oral comments from the public will                                                                            Comment: The Louisiana Mid-
                                                                                                          U.S. Department of Transportation,
                                                  be heard throughout the meeting, at the                                                                       Continent Oil and Gas Association and
                                                                                                          PHMSA, 1200 New Jersey Avenue SE.,
                                                  discretion of the PAR chairman.                                                                               Cook Inlet Natural Gas Storage Alaska
                                                                                                          PHP–2, Washington, DC 20590–0001.
                                                  Members of the public may submit                                                                              questioned whether working-gas
                                                                                                          SUPPLEMENTARY INFORMATION:                            capacity was the most appropriate basis
                                                  written comments on the topics to be
                                                  considered during the meeting by                        Background                                            for the rate structure and expressed the
                                                  Wednesday, April 12, to Federal Docket                                                                        view that using the number of wells at
                                                                                                            The Consolidated Omnibus Budget                     a facility may be a more suitable basis
                                                  Management System (FDMC) Docket
                                                                                                          Reconciliation Act of 1986 (COBRA)                    for the user-fee structure.
                                                  Number FMCSA–2016–0412 using any
                                                                                                          (Pub. L. 99–272, sec. 7005), codified in                 Response: PHMSA agrees that the
                                                  of the following methods:
                                                     • Federal eRulemaking Portal: Go to                  part at section 60301 of title 49, United             number of wells would be an
                                                  http://www.regulations.gov. Follow the                  States Code, authorizes the assessment                appropriate basis for the user-fee rate
                                                  online instructions for submitting                      and collection of user fees to fund the               structure. However, the PHMSA
                                                  comments.                                               pipeline safety activities conducted                  information collection results that will
                                                     • Fax: 202–493–2251.                                 under chapter 601 of title 49. On June                include the number of wells will not be
                                                     • Mail: Docket Management Facility;                  22, 2016, President Obama signed into                 available for fiscal year 2017 billing.
                                                  U.S. Department of Transportation, 1200                 law the Protecting our Infrastructure of              PHMSA is aware of an underground
                                                  New Jersey Avenue SE., West Building,                   Pipelines and Enhancing Safety Act of                 natural gas storage facility survey
                                                  Room W12–140, Washington, DC 20590.                     2016 (Pub. L. 114–183) (PIPES Act of                  recently conducted by the American Gas
                                                     • Hand Delivery: U.S. Department of                  2016). Section 12 of the PIPES Act of                 Association (AGA). The survey results,
                                                  Transportation, 1200 New Jersey                         2016 mandates that PHMSA issue                        however, are not publicly available.
                                                  Avenue SE., Room W12–140,                               regulations for underground natural gas               PHMSA also has no way to assess the
                                                  Washington, DC, between 9 a.m. and 5                    storage facilities, authorizes user fees on           accuracy of the AGA survey results and
                                                  p.m., E.T. Monday through Friday,                       operators of these facilities, and directs            in several cases they appear to be
                                                  except Federal holidays.                                PHMSA to prescribe procedures to                      inconsistent with information reported
                                                                                                          collect those fees upon appropriation.                to the Energy Information
                                                    Issued on: March 30, 2017.
                                                                                                          Section 2 of the PIPES Act of 2016                    Administration (EIA). In the absence of
                                                  Larry W. Minor,
                                                                                                          authorizes $8 million per year to be                  available, reliable data for another
                                                  Associate Administrator for Policy.                     appropriated from those fees for each of              suitable metric, PHMSA’s only viable
                                                  [FR Doc. 2017–06809 Filed 4–5–17; 8:45 am]              FY 2017–2019 for the newly established                option for an equitable allocation of fees
                                                  BILLING CODE 4910–EX–P                                  Underground Natural Gas Storage                       among facility operators in the first year
                                                                                                          Facility Safety Account in the Pipeline               is working-gas capacity. After PHMSA’s
                                                                                                          Safety Fund. Accordingly, if Congress                 annual reporting is in place and PHMSA
                                                  DEPARTMENT OF TRANSPORTATION                            appropriates funds to this account for                collects information regarding the
                                                  Pipeline and Hazardous Materials                        FY 2017 and beyond, PHMSA will                        number of wells, well count is likely to
                                                  Safety Administration                                   collect user fees from the operators of               become the basis of the user-fee rate
                                                                                                          the facilities.                                       structure for these facilities in future
                                                  [Docket No. PHMSA–2016–0092]                                                                                  fiscal years.
                                                                                                          Summary of Comments on the
                                                                                                                                                                   Comment: David Reitz suggested
                                                  Pipeline Safety: Underground Natural                    November 7, 2016 Notice
                                                                                                                                                                PHMSA base the tier determination on
                                                  Gas Storage Facility User Fee                              The November 2016 Notice advised                   the working gas an operator has
                                                  AGENCY: Pipeline and Hazardous                          all underground natural gas storage                   available to serve its customers rather
                                                  Materials Safety Administration                         facility operators of a proposed PHMSA                than total working-gas capacity because
                                                                                                          pipeline user fee assessment and rate                 doing so would facilitate a more precise
mstockstill on DSK3G9T082PROD with NOTICES




                                                  (PHMSA), DOT.
                                                  ACTION: Notice of agency action.                        structure. 81 FR 78261. During the two-               determination of the appropriate tier in
                                                                                                          month response period, PHMSA                          cases where storage fields are jointly
                                                  SUMMARY:    On November 7, 2016,                        received comments on the proposed                     owned.
                                                  PHMSA published a notice and request                    underground natural gas storage user-fee                 Response: PHMSA’s source for
                                                  for comments in the Federal Register,                   billing methodology from nine                         working-gas capacity data is the EIA.
                                                  titled ‘‘Pipeline Safety: Underground                   commenters: David Reitz; the Louisiana                PHMSA currently lacks data to
                                                  Natural Gas Storage Facility User Fee’’                 Mid-Continent Oil and Gas Association;                determine to which customers gas in


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                                                                                              Federal Register / Vol. 82, No. 65 / Thursday, April 6, 2017 / Notices                                                              16875

                                                  storage is available. Therefore, PHMSA                                       regulating both the interstate and                              facility operators in the first year is
                                                  will need to use the total working-gas                                       intrastate facilities in Louisiana.                             working-gas capacity. Accordingly, for
                                                  capacity of the field, but appreciates the                                      Comment: ENSTOR Operating                                    FY 2017 billing, PHMSA will use
                                                  comment and may revisit this issue in                                        Company asked if PHMSA will sum the                             working-gas capacity as the basis for the
                                                  the future if a reliable data source                                         working-gas capacity of facilities for the                      user-fee rate structure. PHMSA will use
                                                  becomes available that breaks working                                        operator and its affiliates.                                    the working-gas capacity values from
                                                  gas down by owner for jointly-owned                                             Response: PHMSA will sum the                                 the most recent Form EIA–191 Monthly
                                                  storage fields and the joint owners are                                      working-gas capacity for all fields                             Underground Natural Gas Storage
                                                  not able to apportion the fee among                                          operated by each holder of a PHMSA-                             Report. PHMSA will sum the working-
                                                  themselves.                                                                  issued operator identification number.                          gas capacity for all fields operated by
                                                                                                                               For the past several months, PHMSA                              the holder of a PHMSA-issued operator
                                                     Comment: Pacific Gas and Electric
                                                                                                                               has been contacting operators of storage                        identification number. For fields where
                                                  Company recommended that PHMSA
                                                                                                                               facilities to determine the appropriate                         PHMSA is unable to determine the
                                                  use the number of wells collected on the                                     operator identification number for each
                                                  new PHMSA annual report as the basis                                                                                                         operator identification number,
                                                                                                                               facility reported to the EIA.                                   working-gas capacities will be summed
                                                  for the user-fee rate structure.                                                Comment: ENSTOR Operating                                    based on the company name in the
                                                     Response: As stated above, PHMSA                                          Company, LLC, asked if PHMSA has a                              Form EIA–191 data. If a company
                                                  agrees that the number of wells would                                        different definition of working-gas                             receives a bill that it believes to be in
                                                  be an appropriate basis for the fee                                          capacity than the EIA.                                          error in some way, it should contact
                                                  structure. With respect to FY 2017,                                             Response: PHMSA does not have a
                                                                                                                                                                                               PHMSA for further information, using
                                                  however, PHMSA does not expect to                                            different definition of working-gas
                                                                                                                                                                                               the Web site http://www.phmsa.dot.gov/
                                                  collect annual report data from facility                                     capacity. PHMSA will use the working-
                                                                                                                                                                                               pipeline/operator-resources/pay-user-
                                                  operators before the FY 2017 billing.                                        gas capacity reported to the EIA.
                                                                                                                                  Comment: ENSTOR Operating                                    fee-assessments.
                                                     Comment: The Louisiana Mid-                                                                                                                 The operator working-gas capacity
                                                  Continent Oil and Gas Association                                            Company, LLC, requested that PHMSA
                                                                                                                               provide further analysis supporting the                         values will be divided into 10 tiers. The
                                                  requested clarification as to how                                                                                                            lowest values will be in tier 1 and the
                                                  PHMSA proposes to regulate Louisiana                                         proposed user-fee assessment tier
                                                                                                                               structure to ensure the regulated                               highest values in tier 10. The minimum
                                                  facilities and specifically how                                                                                                              and maximum working-gas capacities
                                                                                                                               community can fully comment.
                                                  regulatory activity will be funded.                                                                                                          for each tier will be selected to place an
                                                                                                                                  Response: PHMSA provided a full
                                                     Response: PHMSA is supportive of                                          description of the analysis in the                              equal number of operators in each tier.
                                                  state oversight activities and expects the                                   November 2016 Notice. PHMSA will                                Each tier will have a user-fee assessment
                                                  appropriate Louisiana state agency to                                        also place a spreadsheet in the docket                          to be paid by each operator in the tier.
                                                  become certified to regulate Louisiana’s                                     with this notice to provide a more                                In the November 2016 Notice,
                                                  intrastate facilities in accordance with                                     detailed breakdown of the data behind                           PHMSA used Form EIA–191 annual
                                                  49 U.S.C. 60141(c). User fees collected                                      the analysis.                                                   data from 2015 to determine the
                                                  by PHMSA from operators of intrastate                                                                                                        published assessment per tier and tier
                                                  underground natural gas storage                                              Revised Underground Natural Gas                                 ranges. Based on Form EIA–191
                                                  facilities regulated by Louisiana would                                      Storage Facility User-Fee Plan                                  monthly data available through the
                                                  be granted to the certified Louisiana                                          As discussed above in the comment                             EIA’s Natural Gas Annual Respondent
                                                  agency. PHMSA would regulate any                                             responses, in the absence of available,                         Query System,1 and summing working-
                                                  interstate facilities in Louisiana. If a                                     reliable data for another suitable metric,                      gas capacity using the EIA company
                                                  Louisiana agency does not become                                             PHMSA’s only viable option for an                               name, the tiers and assessment per tier
                                                  certified, PHMSA will be responsible for                                     equitable allocation of fees among                              to collect $8,000,000 would be:

                                                                                                                                                           Assessment
                                                                                                Tier                                                       per operator                       Working-gas capacity (Mcf) range

                                                  1 ..................................................................................................              $11,799      Less than 930,000.
                                                  2 ..................................................................................................               23,599      More than 930,000 and less than 3,000,000.
                                                  3 ..................................................................................................               29,499      More than 3,000,000 and less than 5,800,000.
                                                  4 ..................................................................................................               35,398      More than 5,800,000 and less than 11,000,000.
                                                  5 ..................................................................................................               47,198      11,000,000 or more and less than 13,700,000.
                                                  6 ..................................................................................................               58,997      More than 13,700,000 and less than 21,000,000.
                                                  7 ..................................................................................................               70,796      More than 21,000,000 and less than 32,100,000.
                                                  8 ..................................................................................................               76,696      More than 32,100,000 and less than 48,000,000.
                                                  9 ..................................................................................................               88,496      More than 47,000,000 and less than 91,500,000.
                                                  10 ................................................................................................               147,493      More than 91,500,000.



                                                     PHMSA placed a spreadsheet in the                                         Underground Natural Gas Storage                                 approximately 25% will fund PHMSA
                                                  docket showing the EIA company names                                         Facility Safety Account, PHMSA will                             actions and 75% will fund grants to
                                                  in each tier, as well as the methodology                                     proportionally reduce the assessment                            certified state agencies.
mstockstill on DSK3G9T082PROD with NOTICES




                                                  used to determine the assessment per                                         for each tier to collect the appropriated                         Finally, in the November 2016 Notice,
                                                  tier and tier ranges. If Congress                                            amount. Regardless of the appropriated                          we expressed an intent to assess user
                                                  appropriates less than $8 million to the                                     amount, PHMSA expects that                                      fees on operators of active fields on the


                                                    1 http://www.eia.gov/cfapps/ngqs/ngqs.cfm?f_

                                                  report=RP8&f_sortby=&f_items=&f_year_start=&f_
                                                  year_end=&f_show_compid=&f_fullscreen=.

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                                                  16876                          Federal Register / Vol. 82, No. 65 / Thursday, April 6, 2017 / Notices

                                                  EIA list. Since then, PHMSA has                         ADDRESSES:   Comments should reference                environmental impacts that may result
                                                  learned that the EIA includes inactive                  the docket number for the specific                    if the special permit is granted.
                                                  fields in the Form EIA–191 data because                 special permit request and may be                        Before issuing a decision on the
                                                  inactive fields could be restored to                    submitted in the following ways:                      special permit request, PHMSA will
                                                  service at any time. The EIA removes a                     • E-Gov Web site: http://                          evaluate all comments received on or
                                                  field from the Form EIA–191 list only                   www.Regulations.gov. This site allows                 before the comment closing date.
                                                  after the company reports that all wells                the public to enter comments on any
                                                  connected to the field have been                                                                              Comments received after the closing
                                                                                                          Federal Register notice issued by any                 date will be evaluated if it is possible to
                                                  abandoned. Essentially, inactive fields                 agency.
                                                                                                                                                                do so without incurring additional
                                                  on the Form EIA–191 list are idle, but                     • Fax: 1–202–493–2251.
                                                  not abandoned. Therefore, at least for                     • Mail: Docket Management System:                  expense or delay. PHMSA will consider
                                                  fiscal year 2017 billing, PHMSA will use                U.S. Department of Transportation,                    each relevant comment we receive in
                                                  the EIA–191 form data, which includes                   Docket Operations, M–30, West                         making our decision to grant or deny a
                                                  inactive wells.                                         Building Ground Floor, Room W12–140,                  request.
                                                     This approach is also consistent with                1200 New Jersey Avenue SE.,                              The City of Bangor operates its less
                                                  PHMSA’s exercise of regulatory                          Washington, DC 20590.                                 than one-mile-long pipeline from
                                                  jurisdiction over pipelines and with its                   • Hand Delivery: Docket Management                 terminal tankage to the Bangor
                                                  assessment of user fees on such                         System: U.S. Department of                            International Airport. The pipeline is
                                                  pipelines. In an Advisory Bulletin                      Transportation, Docket Operations, M–                 located in an industrial area of the City,
                                                  published on August 16, 2016, titled:                   30, West Building Ground Floor, Room                  offsite of the Bangor International
                                                  ‘‘Clarifications of Terms Relating to                   W12–140, 1200 New Jersey Avenue SE.,
                                                  Pipeline Operational Status,’’ PHMSA                                                                          Airport in Penobscot County, Maine.
                                                                                                          Washington, DC 20590, between 9:00
                                                  emphasized that idle pipelines are                      a.m. and 5:00 p.m., Monday through                       The City requests this special permit
                                                  subject to the same regulatory                          Friday, except Federal holidays.                      for safety concerns of private,
                                                  requirements as active pipelines. 81 FR                    Instructions: You should identify the              commercial and military aircraft that
                                                  54512. This same regulatory approach                    docket number for the special permit                  refuel at the Bangor International
                                                  applies to underground natural gas                      request you are commenting on at the                  Airport. Due to the stringent quality
                                                  storage fields. Because inactive fields                 beginning of your comments. If you                    control requirements for fuel established
                                                  could be restored to service, PHMSA                     submit your comments by mail, please                  for military and commercial aircraft, any
                                                  will exercise regulatory authority over                                                                       contaminants introduced during a test
                                                                                                          submit two copies. To receive
                                                  inactive fields. Accordingly, PHMSA                                                                           with water, including the water itself,
                                                                                                          confirmation that PHMSA has received
                                                  will bill both inactive and active fields                                                                     could endanger commercial and private
                                                                                                          your comments, please include a self-
                                                  appearing in the Form EIA–191 data.                                                                           aircraft, as well as the many military
                                                                                                          addressed stamped postcard. Internet
                                                    Issued in Washington, DC, on March 31,                users may submit comments at http://                  missions originating from the airport.
                                                  2017, under authority delegated in 49 CFR               www.Regulations.gov.
                                                  1.97.                                                                                                            Testing the pipeline with water would
                                                                                                             Note: There is a privacy statement                 force the City to cease fueling operations
                                                  Alan K. Mayberry,                                       published on http://
                                                  Associate Administrator for Pipeline Safety.                                                                  for an estimated 48 to72 hours. The City
                                                                                                          www.Reglations.gov. Comments,
                                                                                                                                                                and the Maine Air Natural Guard
                                                  [FR Doc. 2017–06803 Filed 4–5–17; 8:45 am]              including any personal information
                                                                                                                                                                operate under a Federal Joint Use
                                                  BILLING CODE 4910–60–P                                  provided, are posted without changes or
                                                                                                          edits to http://www.Regulations.gov.                  Agreement, which stipulates that the
                                                                                                                                                                airport must remain open and available
                                                                                                          FOR FURTHER INFORMATION CONTACT:
                                                  DEPARTMENT OF TRANSPORTATION                                                                                  twenty four hours a day, seven days a
                                                                                                             General: Ms. Kay McIver by telephone
                                                                                                          at 202–366–0113, or email at                          week, to support strategic military
                                                  Pipeline and Hazardous Materials                                                                              missions. This is the only pipeline that
                                                  Safety Administration                                   kay.mciver@dot.gov.
                                                                                                             Technical: Mr. Max Kieba by                        supplies fuel to the airport. Shutting
                                                  [Docket No. PHMSA–2016–0087]                            telephone at 202–493–0595, or email at                down the airport would put the City in
                                                                                                          max.kieba@dot.gov.                                    breach of contract with the military.
                                                  Pipeline Safety: Request for Special                    SUPPLEMENTARY INFORMATION:                               The maximum allowable operating
                                                  Permit; City of Bangor, Maine                              PHMSA has received a special permit                pressure of this pipeline ranges from
                                                  AGENCY: Pipeline and Hazardous                          request from the City of Bangor, Maine                150 to 182 psi, and no leaks have been
                                                  Materials Safety Administration                         to deviate from the pipeline safety                   found in the past 11 years of pressure
                                                  (PHMSA); DOT.                                           regulations to pressure test a single                 testing.
                                                  ACTION: Notice.                                         segment of its pipeline with Jet-A fuel
                                                                                                          (kerosene), rather than water as the
                                                  SUMMARY:   PHMSA is publishing this                                                                             Issued in Washington, DC on March 31,
                                                                                                          medium, during the performance of a
                                                  notice to seek public comment on a                                                                            2017, under authority delegated in 49 CFR
                                                                                                          Subpart E pressure test. A Draft
                                                  request for special permit, seeking relief                                                                    1.97.
                                                                                                          Environmental Assessment (DEA)
                                                  from compliance with certain                            accompanies the special permit request.               Alan K. Mayberry,
                                                  requirements in the Federal pipeline                    The DEA is available at http://                       Associate Administrator for Pipeline Safety.
                                                  safety regulations. At the conclusion of                www.Regulations.gov, in Docket
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                                                                                [FR Doc. 2017–06804 Filed 4–5–17; 8:45 am]
                                                  the 30-day comment period, PHMSA                        Number, PHMSA–2016–0087. We invite                    BILLING CODE 4910–60–P
                                                  will review the comments received from                  interested persons to participate by
                                                  this notice as part of its evaluation to                reviewing the special permit request
                                                  grant or deny the special permit request.               and DEA at http://www.Regulations.gov,
                                                  DATES: Submit any comments regarding                    and by submitting written comments,
                                                  this special permit request by May 8,                   data, or other views. Please include any
                                                  2017.                                                   comments on potential safety and


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Document Created: 2017-04-06 01:46:51
Document Modified: 2017-04-06 01:46:51
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of agency action.
ContactRoger Little by telephone at 202-366- 4569, by fax at 202-366-4566, by email at [email protected], or by mail at U.S. Department of Transportation, PHMSA, 1200 New Jersey Avenue SE., PHP-2, Washington, DC 20590-0001.
FR Citation82 FR 16874 

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