
[Federal Register Volume 80, Number 211 (Monday, November 2, 2015)]
[Rules and Regulations]
[Pages 67302-67312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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: 
stanley.wolf@ferc.gov.
    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: 
oscar.santillana@ferc.gov.
    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: gary.cohen@ferc.gov.

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).
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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.
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    \44\ Version 3.0 NOPR, FERC Stats. & Regs. ] 32,708 at P 17 & 
n.26.
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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: 
DataClearance@ferc.gov, 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: oira_submission@omb.eop.gov. 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 
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
public.referenceroom@ferc.gov.

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


