|
|
Enron Mail |
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).
|