Enron Mail

From:drew.fossum@enron.com
To:martha.benner@enron.com
Subject:OCS Final Rule, Order 639
Cc:
Bcc:
Date:Wed, 12 Apr 2000 08:11:00 -0700 (PDT)

pls print. thanks df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 04/12/2000
03:10 PM ---------------------------


Janet Butler
04/12/2000 02:50 PM
To: Tim Aron/ET&S/Enron@ENRON, John Ballentine/FGT/Enron@ENRON, Martha
Benner/ET&S/Enron@ENRON, Eric Benson/ET&S/Enron@ENRON, Donna
Bily/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Lynn Blair/ET&S/Enron@ENRON, Jack
Boatman/FGT/Enron@ENRON, Rob Bradley/Corp/Enron@ENRON, Lorna
Brennan/ET&S/Enron@ENRON, Bob Chandler/ET&S/Enron@ENRON, Bill
Cordes/ET&S/Enron@ENRON, Shelley Corman/ET&S/Enron@Enron, Christi
Culwell/FGT/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Larry
DeRoin/NPNG/Enron@ENRON, Rick Dietz/ET&S/Enron@ENRON, Dari
Dornan/ET&S/Enron@ENRON, John Dushinske/ET&S/Enron@ENRON, Sharon
Farrell/FGT/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Donna
Fulton/Corp/Enron, Lou Geiler/ET&S/Enron@ENRON, John
Goodpasture/OTS/Enron@ENRON, Mary Hain/HOU/ECT@ECT, Bob M
Hall/FGT/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Joe
Hartsoe/Corp/Enron@ENRON, Glen Hass/ET&S/Enron@Enron, Robert
Hayes/FGT/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Bambi
Heckerman/NPNG/Enron@ENRON, Theresa Hess/ET&S/Enron@ENRON, Robert
Hill/NPNG/Enron@ENRON, Staci Holtzman/FGT/Enron@ENRON, Tamara
Hopkins/ET&S/Enron@Enron, Stanley Horton/Corp/Enron@Enron, Lee
Huber/ET&S/Enron@ENRON, Martha Janousek/ET&S/Enron@ENRON, Steven
January/ET&S/Enron@ENRON, Anne Jolibois/FGT/Enron@ENRON, Steven J
Kean/HOU/EES@EES, Jeffrey Keeler/Corp/Enron@ENRON, Robert
Kilmer/FGT/Enron@ENRON, Frazier King/FGT/Enron@ENRON, Steve
Kirk/ET&S/Enron@ENRON, Tim Kissner/ET&S/Enron@ENRON, Laura
Lantefield/ET&S/Enron@ENRON, Linda L Lawrence/HOU/EES@EES, Blair
Lichtenwalter/FGT/Enron@ENRON, Elizabeth Linnell/HOU/EES@EES, Teb
Lokey/FGT/Enron@ENRON, Phil Lowry/OTS/Enron@ENRON, Susan J Mara/SFO/EES@EES,
Donna Martens/ET&S/Enron@ENRON, Dorothy McCoppin/FGT/Enron@ENRON, Mike
McGowan/ET&S/Enron@ENRON, Rockford Meyer/FGT/Enron@ENRON, Mary Kay
Miller/ET&S/Enron@ENRON, Michael Moran/ET&S/Enron@ENRON, Sheila
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Nicolay/HOU/ECT@ECT, Sarah Novosel/Corp/Enron@ENRON, Maureen
Palmer/HOU/EES@EES, Zelda Paschal/FGT/Enron@ENRON, Geneva
Patterson/NPNG/Enron@ENRON, Maria Pavlou/ET&S/Enron@ENRON, Eileen
Peebles/ET&S/Enron@ENRON, Keith Petersen/ET&S/Enron@ENRON, Peggy
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Wilkie/ET&S/Enron@ENRON, Jane Wilson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Michele Winckowski/ET&S/Enron@ENRON
cc:

Subject: OCS Final Rule, Order 639


Regulations Under the Outer Continental Shelf Lands Act Governing the
Movement of Natural Gas on Facilities on the Outer Continental Shelf, RM99-5

The final rule is attached - 84 pages



Executive Summary
The Final Rule was issued April 10, 2000 and becomes effective 30 days after
publication in the Federal Register.

The purpose of the final rule is to establish a data base as a foundation for
identifying discrimination with OCS gas service providers. The reporting
will include affiliations and conditions of service. This is a procedural
rule - reporting only. The rule only applies to gas pipelines - FERC found
transportation for oil pipelines to be just and reasonable. The Commission
is acting in part as a response to the ruling in Sea Robin in which the court
directed FERC to reconsider the manner in which it applied its primary
function test to Sea Robin's predominantly offshore system.

NOPR was issued on June 30, 1999. The Commission believes that the new OCSLA
reporting requirements mirror certain existing NGA reporting requirements.
Salient points of the final rule are:

Exemptions
Service providers that confine their operations to moving their own gas or
that of a single shipper are exempt from reporting; add new section
330.0(a)(1) and (2) Note: reporting exemption turns on identity of service
provider and its shippers - not type of service provided.
Gas service providers that are regulated by FERC under NGA are exempt from
OCSLA reporting; add new section (330.3(a)(4)
Exempts lines that feed into a facility where gas is first collected,
separated, dehydrated or processed from OCSLA reporting requirements; add new
section 330.3(a)(3).

Reporting Requirements
If an NGA-regulated company's system includes OCS facilities that are not
subject to NGA (gathering/production lines), the company must submit an OCSLA
report covering its non-NGA facilities
Reclassified facilities will no longer be subject to NGA reporting
requirements but will be subject to OCSLA requirements. (Shippers no longer
have protection against the exercise of market power afforded by the NGA).
Service provider must list all of its affiliates defined as engaged in the
exploration, development, production, processing, transportation, marketing,
consumption or sale of gas need be identified in the report; new section
330.2(a)(6)
Reporting Updates restricted to four times per year.
Reports will be based on conditions on the first day of the first full
calendar quarter that begins after the effective date of this rule; reports
due on the first business day after the close of the quarter. Providers will
have more than one full quarter in which to prepare their initial OSCLA report
Providers will be required to submit a description of their operations as
they stand on the first day of each calendar quarter, e.g. describing the
provider's status on one particular day; report due on first business day of
the subsequent quarter (e.g. filing due April 1 will describe operations as
they stood on January 1). If the operations are identical on the first and
last days of any given quarter, provider need not submit an update the
following quarter
Not necessary to file contracts but must provide table of shippers and
services; new section 330.2(b)
Retaining requirement for alternative reporting for OCS companies who do not
provide service under formal contracts, must provide information sufficient
to derive rates charged and conditions applicable for service between two
points; new section 330.2(b)(9)
OCSLA Reporting Form available via Internet http://www.ferc.fed.us or the
public reference room
Providers new to provisions have 90 days to prepare and submit OCSLA report
(NOPR had stipulated 60 days).