83 FR 39507 - Pipeline Safety: Underground Natural Gas Storage Facility User Fee
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration Federal Register Volume 83, Issue 154 (August 9, 2018)
Pipeline and Hazardous Materials Safety Administration
Federal Register Volume 83, Issue 154 (August 9, 2018)
| Page Range | 39507-39508 | |
| FR Document | 2018-17053 |
[Federal Register Volume 83, Number 154 (Thursday, August 9, 2018)] [Notices] [Pages 39507-39508] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-17053] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration [Docket No. PHMSA-2017-0129] 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 December 8, 2017, PHMSA published a notice and request for comments in the Federal Register titled: ``Underground Natural Gas Storage Facility User Fee'' seeking comments from underground natural gas storage facility (UNGS) operators on a proposal to use UNGS annual report data in the user fee rate structure. PHMSA received two comments in the docket. We are publishing this notice to address the comments received and to announce that PHMSA has used UNGS annual report data about the number of wells in the user fee rate structure for the Pipeline Safety Fund's Underground Natural Gas Storage Facility Safety Account. FOR FURTHER INFORMATION CONTACT: Crystal Stewart by telephone at 202- 366-1524, 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 UNGS 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. After Congress appropriates funds to this account for fiscal year (FY) 2018 and beyond, PHMSA will collect user fees from the operators of the facilities. Summary of Comments The December 8, 2017 notice advised all UNGS facility operators of a proposed PHMSA pipeline user fee assessment and rate structure (82 FR 58045). During the one-month response period, PHMSA received comments from two commenters on the proposed UNGS user fee billing methodology: WBI Energy Transmission Inc., and National Fuel Gas Supply Corporation. The comments can be found at http://www.regulations.gov in Docket Number PHMSA-2017-0129. WBI Energy Transmission Inc., submitted comments supporting the rate structure proposed by PHMSA in the December 8, 2017 notice. The remaining comment is summarized below with PHMSA's response: Comment: National Fuel Gas Supply Corporation stated that well count alone is not an appropriate measure for determining a user fee since larger wells will require more regulatory oversight than smaller wells. Response: Each well penetrating an underground natural gas storage reservoir represents a risk. Currently, PHMSA intends to apply a consistent level of regulatory oversight to all wells, regardless of size. As PHMSA implements its underground storage inspection program, we may gain insights leading to a user fee methodology more reflective of regulatory oversight effort. Underground Natural Gas Storage Facility User Fee Plan During the FY 2018 user fee process, PHMSA has used calendar year (CY) 2016 annual report data for gas transmission pipelines, hazardous liquid pipelines, and liquefied natural gas facilities. Using CY 2016 data ensures adequate time to verify annual report data quality and still be able to send user fee assessments promptly after appropriation. PHMSA does not have CY 2016 annual report data for underground natural gas storage facilities. Congress appropriated UNGS funds for FY 2018, and PHMSA has [[Page 39508]] used the CY 2017 UNGS annual report data to develop the UNGS user fee rate structure for FY 2018. If Congress appropriates UNGS funds for FY 2019, PHMSA plans to use the CY 2017 UNGS annual report data to develop the UNGS user fee rate structure for FY 2019. Specifically, PHMSA will use the number of injection/withdraw wells (section C7) and monitoring/ observation wells (section C8) in the rate structure. For the FY 2020 user fee rate structure, PHMSA would use the CY 2018 UNGS annual report data. For FY 2018, Congress has appropriated $8 million to the Underground Natural Gas Storage Facility Safety Account in the Pipeline Safety Fund. PHMSA has used the following steps to develop the user fee rate structure. PHMSA summed the number of wells from sections C7 and C8 of the annual report for each operator. Once PHMSA determined the number of wells for all UNGS operators, each operator was parsed into one of 10 tiers, based on an ordinal ranking of its well counts compared to other UNGS operators. The operators with the lowest well- count values were placed in tier 1, with the highest operator well- count values in tier 10. The minimum and maximum well counts for each tier were then selected so that an equal number of operators were placed in each tier. This tiered fee structure is designed to place a larger share of the user fee on operators with higher well counts. Using CY 2017 UNGS annual report data as of May 9, 2018, the following table shows the tier boundaries and user fee for each operator in the tier. When the tier boundary spans two tiers, PHMSA randomly selected operators for the lower tier. For example, four wells is the boundary between Tiers 1 and 2. Seven operators have four wells, but only two operators were randomly selected and placed in Tier 1. The remaining five operators with four wells were placed in Tier 2. ---------------------------------------------------------------------------------------------------------------- Number of User fee per Tier Amount (% of total) Tier boundaries operators operator ---------------------------------------------------------------------------------------------------------------- 1................................. $160,000 (2%)........ 4 wells or less...... 13 $12,308 2................................. $320,000 (4%)........ 4 to 7 wells......... 13 24,615 3................................. $400,000 (5%)........ 7 to 12 wells........ 13 30,769 4................................. $480,000 (6%)........ 13 to 19 wells....... 13 36,923 5................................. $640,000 (8%)........ 19 to 27 wells....... 13 49,231 6................................. $800,000 (10%)....... 28 to 45 wells....... 13 61,538 7................................. $960,000 (12%)....... 46 to 68 wells....... 13 73,846 8................................. $1,040,000 (13%)..... 69 to 100 wells...... 12 86,667 9................................. $1,200,000 (15%)..... 101 to 377 wells..... 12 100,000 10................................ $2,000,000 (25%)..... 378 wells or more.... 12 166,667 ---------------------------------------------------------------------------------------------------------------- In summary, PHMSA has used UNGS annual report data about the number of wells in the FY 2018 user fee rate structure for the Pipeline Safety Fund's Underground Natural Gas Storage Facility Safety Account. In future years, the final tier boundaries and user fee per operator may differ slightly from those listed above based on the annual report data at the time the rate structure is established. Issued in Washington, DC, on August 3, 2018, under authority delegated in 49 CFR 1.97. Alan K. Mayberry, Associate Administrator for Pipeline Safety. [FR Doc. 2018-17053 Filed 8-8-18; 8:45 am] BILLING CODE 4910-60-P
![Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Notices 39507
transportation serving the metropolitan F. Appendices authorizes user fees on operators of
planning area,’’ and ‘‘peer reviews and FTA made minor, clarifying edits to these facilities, and directs PHMSA to
exchanges of . . . performance-based the appendices. prescribe procedures to collect those
planning.’’ FTA removed ‘‘arts and fees upon appropriation. Section 2 of
Issued in Washington, DC. the PIPES Act of 2016 authorizes $8
artistic design’’ from the list of eligible
K. Jane Williams, million per year to be appropriated from
grant activities to comply with 49 U.S.C.
Acting Administrator. those fees for each of FY 2017–2019 for
5323, as amended by the FAST Act. In
Section 4, FTA reordered subsections [FR Doc. 2018–17032 Filed 8–8–18; 8:45 am] the newly established Underground
identifying the components of a UPWP. BILLING CODE P Natural Gas Storage Facility Safety
In Section 9, FTA added programs Account in the Pipeline Safety Fund.
created by MAP–21 and the FAST Act, After Congress appropriates funds to
DEPARTMENT OF TRANSPORTATION this account for fiscal year (FY) 2018
and removed references to programs
and beyond, PHMSA will collect user
repealed by MAP–21 and the FAST Act. Pipeline and Hazardous Materials fees from the operators of the facilities.
C. Chapter III—State Planning and Safety Administration
Summary of Comments
Research Program [Docket No. PHMSA–2017–0129]
The December 8, 2017 notice advised
Chapter III provides an overview of Pipeline Safety: Underground Natural all UNGS facility operators of a
the SPRP in terms of its statutory Gas Storage Facility User Fee proposed PHMSA pipeline user fee
authority and program goals, and assessment and rate structure (82 FR
AGENCY: Pipeline and Hazardous 58045). During the one-month response
explains the program’s relationship to
Materials Safety Administration period, PHMSA received comments
and coordination with other FTA- (PHMSA), DOT.
funded programs. The chapter also from two commenters on the proposed
ACTION: Notice of agency action. UNGS user fee billing methodology:
defines the role of the individual States
and FTA, and provides information on SUMMARY: On December 8, 2017, WBI Energy Transmission Inc., and
eligible grant activities, SPRP assistance PHMSA published a notice and request National Fuel Gas Supply Corporation.
formula and notification, and State for comments in the Federal Register The comments can be found at http://
planning activities. In Section 2, FTA titled: ‘‘Underground Natural Gas www.regulations.gov in Docket Number
removed ‘‘training and educational Storage Facility User Fee’’ seeking PHMSA–2017–0129. WBI Energy
activities’’ and ‘‘human resource comments from underground natural Transmission Inc., submitted comments
program activities’’ from the list of gas storage facility (UNGS) operators on supporting the rate structure proposed
a proposal to use UNGS annual report by PHMSA in the December 8, 2017
eligible grant activities for the SPRP
data in the user fee rate structure. notice. The remaining comment is
because the statutory basis for their
PHMSA received two comments in the summarized below with PHMSA’s
eligibility was removed by MAP–21. In
docket. We are publishing this notice to response:
Section 5, FTA added programs created Comment: National Fuel Gas Supply
by MAP–21 and the FAST Act, and address the comments received and to
Corporation stated that well count alone
removed references to programs announce that PHMSA has used UNGS
is not an appropriate measure for
repealed by MAP–21 and the FAST Act. annual report data about the number of
determining a user fee since larger wells
wells in the user fee rate structure for
D. Chapter IV—Consolidated Planning will require more regulatory oversight
the Pipeline Safety Fund’s Underground
Grants than smaller wells.
Natural Gas Storage Facility Safety Response: Each well penetrating an
Account. underground natural gas storage
Chapter IV provides information on
the Consolidated Planning Grant (CPG) FOR FURTHER INFORMATION CONTACT: reservoir represents a risk. Currently,
Program, a program administered by Crystal Stewart by telephone at 202– PHMSA intends to apply a consistent
FTA and FHWA. The CPG Program 366–1524, by fax at 202–366–4566, by level of regulatory oversight to all wells,
allows FTA and FHWA funding that email at Crystal.Stewart@dot.gov, or by regardless of size. As PHMSA
supports metropolitan and statewide mail at U.S. Department of implements its underground storage
transportation planning to be combined Transportation, PHMSA, 1200 New inspection program, we may gain
into a single consolidated grant, which Jersey Avenue SE., PHP–2, Washington, insights leading to a user fee
fosters a cooperative effort between the DC 20590–0001. methodology more reflective of
Federal agencies and the participating SUPPLEMENTARY INFORMATION: regulatory oversight effort.
States to streamline the delivery of their Background Underground Natural Gas Storage
planning programs by providing the Facility User Fee Plan
The Consolidated Omnibus Budget
flexibility to transfer the planning funds
Reconciliation Act of 1986 (COBRA) During the FY 2018 user fee process,
to either FTA or FHWA for processing.
(Pub. L. 99–272, sec. 7005), codified in PHMSA has used calendar year (CY)
In Section 1, FTA clarified that FTA
part at section 60301 of title 49, United 2016 annual report data for gas
funds used for metropolitan planning in
States Code, authorizes the assessment transmission pipelines, hazardous
a CPG are allowed to have the same and collection of user fees to fund the liquid pipelines, and liquefied natural
match ratio as the FHWA Metropolitan pipeline safety activities conducted gas facilities. Using CY 2016 data
Planning funds. under chapter 601 of title 49. On June ensures adequate time to verify annual
sradovich on DSK3GMQ082PROD with NOTICES
E. Chapter V—Application Instructions 22, 2016, President Obama signed into report data quality and still be able to
law the ‘‘Protecting our Infrastructure of send user fee assessments promptly
Chapter V details the application Pipelines and Enhancing Safety Act of after appropriation. PHMSA does not
process of MPOs and States that apply 2016’’ (Pub. L. 114–183) (PIPES Act of have CY 2016 annual report data for
for and receive funds from MPP and 2016). Section 12 of the PIPES Act of underground natural gas storage
SPRP grants. FTA made no substantive 2016 mandates that PHMSA issue facilities. Congress appropriated UNGS
changes to this chapter. regulations for UNGS facilities, funds for FY 2018, and PHMSA has
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![39508 Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Notices
used the CY 2017 UNGS annual report Facility Safety Account in the Pipeline of operators were placed in each tier.
data to develop the UNGS user fee rate Safety Fund. PHMSA has used the This tiered fee structure is designed to
structure for FY 2018. If Congress following steps to develop the user fee place a larger share of the user fee on
appropriates UNGS funds for FY 2019, rate structure. PHMSA summed the operators with higher well counts.
PHMSA plans to use the CY 2017 UNGS number of wells from sections C7 and Using CY 2017 UNGS annual report
annual report data to develop the UNGS C8 of the annual report for each data as of May 9, 2018, the following
user fee rate structure for FY 2019. operator. Once PHMSA determined the table shows the tier boundaries and user
Specifically, PHMSA will use the number of wells for all UNGS operators, fee for each operator in the tier. When
number of injection/withdraw wells each operator was parsed into one of 10 the tier boundary spans two tiers,
(section C7) and monitoring/observation tiers, based on an ordinal ranking of its PHMSA randomly selected operators for
wells (section C8) in the rate structure. well counts compared to other UNGS the lower tier. For example, four wells
For the FY 2020 user fee rate structure, operators. The operators with the lowest is the boundary between Tiers 1 and 2.
PHMSA would use the CY 2018 UNGS well-count values were placed in tier 1, Seven operators have four wells, but
annual report data. with the highest operator well-count only two operators were randomly
For FY 2018, Congress has values in tier 10. The minimum and selected and placed in Tier 1. The
appropriated $8 million to the maximum well counts for each tier were remaining five operators with four wells
Underground Natural Gas Storage then selected so that an equal number were placed in Tier 2.
Amount Number of User fee per
Tier Tier boundaries
(% of total) operators operator
1 ......................... $160,000 (2%) .............................................. 4 wells or less .............................................. 13 $12,308
2 ......................... $320,000 (4%) .............................................. 4 to 7 wells ................................................... 13 24,615
3 ......................... $400,000 (5%) .............................................. 7 to 12 wells ................................................. 13 30,769
4 ......................... $480,000 (6%) .............................................. 13 to 19 wells ............................................... 13 36,923
5 ......................... $640,000 (8%) .............................................. 19 to 27 wells ............................................... 13 49,231
6 ......................... $800,000 (10%) ............................................ 28 to 45 wells ............................................... 13 61,538
7 ......................... $960,000 (12%) ............................................ 46 to 68 wells ............................................... 13 73,846
8 ......................... $1,040,000 (13%) ......................................... 69 to 100 wells ............................................. 12 86,667
9 ......................... $1,200,000 (15%) ......................................... 101 to 377 wells ........................................... 12 100,000
10 ....................... $2,000,000 (25%) ......................................... 378 wells or more ......................................... 12 166,667
In summary, PHMSA has used UNGS SUMMARY: PHMSA is preparing to Instructions: Identify the docket
annual report data about the number of request Office of Management and number, PHMSA–2018–0078, at the
wells in the FY 2018 user fee rate Budget (OMB) approval for the revision beginning of your comments. Note that
structure for the Pipeline Safety Fund’s of the Operator Assignment Request all comments received will be posted
Underground Natural Gas Storage (PHMSA F 1000.1) and National without change to http://
Facility Safety Account. In future years, Registry Notification (PHMSA F 1000.2) www.regulations.gov, including any
the final tier boundaries and user fee per currently approved under OMB control personal information provided. You
operator may differ slightly from those number 2137–0627. PHMSA proposes should know that anyone can search the
listed above based on the annual report revising certain parts of the forms and electronic form of all comments
data at the time the rate structure is instructions. In accordance with the received into any of our dockets by the
established. Paperwork Reduction Act of 1995, name of the individual submitting the
Issued in Washington, DC, on August 3, PHMSA invites comments on the comment (or signing the comment, if
2018, under authority delegated in 49 CFR proposed revisions. submitted on behalf of an association,
1.97. DATES: Interested persons are invited to business, labor union, etc.). Therefore,
Alan K. Mayberry, submit comments on or before October you may want to review DOT’s
Associate Administrator for Pipeline Safety. 9, 2018. complete Privacy Act Statement in the
[FR Doc. 2018–17053 Filed 8–8–18; 8:45 am] Federal Register published on April 11,
ADDRESSES: Comments may be 2000, (65 FR 19476) or visit http://
BILLING CODE 4910–60–P
submitted in the following ways: www.regulations.gov before submitting
E-Gov Website: http:// any such comments.
DEPARTMENT OF TRANSPORTATION www.regulations.gov. This site allows
Docket: For access to the docket or to
the public to enter comments on any
read background documents or
Pipeline and Hazardous Materials Federal Register notice issued by any
comments, go to http://
Safety Administration agency.
www.regulations.gov at any time or to
[Docket No. PHMSA–2018–0078] Fax: 1–202–493–2251. Room W12–140 on the ground level of
Mail: Docket Management Facility, DOT, West Building, 1200 New Jersey
Pipeline Safety: Information Collection U.S. Department of Transportation Avenue SE, Washington, DC, between
Activities, Revision to OPID (DOT), 1200 New Jersey Avenue SE, 9:00 a.m. and 5:00 p.m., Monday
Assignment Request and National West Building, Room W12–140, through Friday, except Federal holidays.
sradovich on DSK3GMQ082PROD with NOTICES
Registry Notification Washington, DC 20590–0001. If you wish to receive confirmation of
AGENCY: Pipeline and Hazardous Hand Delivery: Room W12–140 on the receipt of your written comments,
Materials Safety Administration ground level of DOT, West Building, please include a self-addressed,
(PHMSA), DOT. 1200 New Jersey Avenue SE, stamped postcard with the following
Washington, DC, between 9:00 a.m. and statement: Comments on: PHMSA–
ACTION: Notice and request for
5:00 p.m., Monday through Friday, 2018–0078.’’ The docket clerk will date
comments.
except Federal holidays. stamp the postcard prior to returning it
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Document Created: 2018-08-09 01:11:21
Document Modified: 2018-08-09 01:11:21
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice of agency action. | |
| Contact | Crystal Stewart by telephone at 202- 366-1524, 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 Citation | 83 FR 39507 |
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