Natural Gas Policy Act: Interstate natural gas pipelines— Business practice standards,

[Federal Register: December 23, 1998 (Volume 63, Number 246)]

[Rules and Regulations]

[Page 71014-71015]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr23de98-7]

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 284

[Docket No. RM96-1-012]

Standards for Business Practices of Interstate Natural Gas Pipelines

Issued December 17, 1998. AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule; order establishing implementation date for OBA regulations.

SUMMARY: The Federal Energy Regulatory Commission is establishing April 1, 1999, as the date by which pipelines are required to comply with the regulations requiring pipelines to enter into operational balancing agreements with interconnecting interstate and intrastate pipelines. (18 CFR Sec. 284.10(c)(2)(i)). These regulations were adopted in Order No. 587-G. (63 FR 20072).

DATES: Pipelines must comply with 18 CFR Sec. 284.10(c)(2)(i) by April 1, 1999.

ADDRESSES: Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT:

Michael Goldenberg, Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 208-2294 Marvin Rosenberg, Office of Economic Policy, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 208-1283 Kay Morice, Office of Pipeline Regulation, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 208-0507

SUPPLEMENTARY INFORMATION: In addition to publishing the full text of this document in the Federal Register, the Commission also provides all interested persons an opportunity to inspect or copy the contents of this document during normal business hours in the Public Reference Room at 888 First Street, N.E., Room 2A, Washington, D.C. 20426. The Commission Issuance Posting System (CIPS) provides access to the texts of formal documents issued by the Commission. CIPS can be accessed via Internet through FERC's Homepage (http://www.ferc.fed.us) using the CIPS Link or the Energy Information Online icon. The full text of this document will be available on CIPS in ASCII and WordPerfect 6.1 format. CIPS is also available through the Commission's electronic bulletin board service at no charge to the user and may be accessed using a personal computer with a modem by dialing 202-208-1397, if dialing locally, or 1-800-856-3920, if dialing long distance. To access CIPS, set your communications software to 19200, 14400, 12000, 9600, 7200, 4800, 2400, or 1200 bps, full duplex, no parity, 8 data bits and 1 stop bit. User assistance is available at 202-208-2474 or by E-mail to CipsMaster@FERC.fed.us.

This document is also available through the Commission's Records and Information Management System (RIMS), an electronic storage and retrieval system of documents submitted to and issued by the Commission after November 16, 1981. Documents from November 1995 to the present can be viewed and printed. RIMS is available in the Public Reference Room or remotely via Internet through FERC's Homepage using the RIMS link or the Energy Information Online icon. User assistance is available at 202-208-2222, or by E-mail to RimsMaster@FERC.fed.us.

Finally, the complete text on diskette in WordPerfect format may be purchased from the Commission's copy contractor, RVJ International, Inc. RVJ International, Inc., is located in the Public Reference Room at 888 First Street, N.E., Washington, D.C. 20426.

Before Commissioners: James J. Hoecker, Chairman; Vicky A. Bailey, William L. Massey, Linda Breathitt, and Curt Hebert, Jr.

In Order No. 587-G,\1\ the Commission adopted a regulation (284.10(c)(2)(i)) \2\ requiring each interstate pipeline to enter into operational balancing agreements (OBAs) at points of interconnection between its system and the system of another interstate or intrastate pipeline. In Order No. 587-G, the Commission deferred implementation of this regulation until the Gas Industry Standards Board (GISB) had an opportunity to develop standards related to OBAs and imbalance trading. The Commission also stated that the pipelines would have three months from the date on which final OBA regulations are adopted to conclude OBA agreements with interconnecting interstate and intrastate pipelines.\3\

\1\ Standards for Business Practices of Interstate Natural Gas Pipelines, Order No. 587-G, 63 FR 20072 (Apr. 23, 1998), III FERC Stats. & Regs. Regulations Preambles para. 31,062 (Apr. 16, 1998), on reh'g, Order No. 587-I, 63 FR 53565 (Oct. 6, 1998), III FERC Stats. & Regs. Regulations Preambles para. 31,067 (Sep. 29, 1998).

\2\ 18 CFR Sec. 284.10(c)(2)(i).

\3\ Order No. 587-G 63 FR at 20080, III FERC Stats. & Regs. Regulations Preambles para. 31,062 at 30,676.

On November 9, 1998, GISB filedwith the Commission a report on its standards development progress. GISB reports that its Executive Committee approved a model OBA on July 16, 1998,\4\ and that its OBA standards are completed.\5\

\4\ In Order No. 587-G, the Commission found that pipelines did not have to adopt a standard OBA if its terms are inapplicable to their situation, although a standard OBA would provide a benchmark in the event of disputes over OBA provisions. Order No. 587-G, 63 FR at 20081, III FERC Stats. & Regs. Regulations Preambles para. 31,062 at 30,676-77.

\5\ GISB's November 9, 1998 filing, Docket No. RM96-1-010, at Appendix 5.

[[Page 71015]]

Since the OBA standards are now complete, the Commission is establishing an April 1, 1999 date for the pipelines to comply with the requirement to enter into OBAs with interconnecting interstate and intrastate pipelines. In Order No. 587-G, the Commission determined that pipelines would not have to file OBAs with the Commission as long as they maintained the contracts and made them available, along with all relevant records of volumes and amounts paid, to the Commission and any person requesting copies.\6\ Since pipelines are not required to file OBA contracts with the Commission, each pipeline will be required to file by April 1, 1999, a statement as to whether it has complied with Sec. 284.10(c)(2)(i) of the regulations at all pipeline to pipeline interconnects on its system.

\6\ Order No. 587-G, 63 FR at 20080, III FERC Stats. & Regs. Regulations Preambles para. 31,062 at 30,676.

The Commission orders:

(A) Each interstate pipeline must comply with Sec. 284.10(c)(2)(i) of the Commission's regulations by April 1, 1999.

(B) Each interstate pipeline must file by April 1, 1999, a statement setting forth its compliance with Sec. 284.10(c)(2)(i) of the Commission's regulations.

By the Commission. David P. Boergers, Secretary.

[FR Doc. 98-33986Filed12-22-98; 8:45 am]

BILLING CODE 6717-01-U

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