60-day Notice, published in Fed. Reg.

SUBCHAPTER P—REGULATIONS UNDER THE INTERSTATE
COMMERCE ACT
PART 340—RATE SCHEDULES AND
TARIFFS
AUTHORITY: Department of Energy Organization Act, 42 U.S.C. 7101–7352; E.O. 12009, 43
CFR 142; Interstate Commerce Act, 49 U.S.C.
1, et seq.; Natural Gas Act, 15 U.S.C. 717–717w.

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§ 340.1 Suspended rate schedules; procedure; refund requirement; administered by the Federal Energy Regulatory Commission.
(a) Effectiveness of suspended rate
schedules. If a rate suspension proceeding initiated under section 15(7) of
the Interstate Commerce Act has not
been concluded and an order has not
been issued by the Commission at the
expiration of the suspension period, the
proposed rate, charge, classification, or
service shall go into in effect so long as
the pipeline company complies with all
of the requirements of this section.
(b) Recordkeeping. Any pipeline company whose proposed rates or charges
were suspended and have gone into effect pending final order of the Commission pursuant to section 15(7) of the
Interstate Commerce Act shall keep
accurate accounts in detail of all
amounts received by reason of the
rates or charges made effective as provided in the Commission’s order, for
each billing period, including the following information by billing period,
and by shipper:
(1) The monthly billing determinants
of petroleum or petroleum by-products
transported to each consignee under
the suspended tariffs;
(2) The revenues which would result
from such transportation services if
they were computed under the rates in
effect immediately prior to the date
the proposed change became effective,
if applicable;
(3) The revenues resulting from such
transportation services as computed
under the proposed increased rates or
charges that became effective after the
suspension period; and
(4) The difference between the revenues computed in paragraphs (b)(2) and
(3) of this section, if applicable.

(c) Refunds. (1) Any pipeline company
that collects charges pursuant to this
section shall refund at such time, in
such amounts, and in such manner as
may be required by final order of the
Commission, the portion of any rates
and charges found by the Commission
in that proceeding not to be justified,
together with interest as required in
paragraph (c)(2) of this section.
(2) Interest shall be computed from
the date of collection until the date refunds are made as follows:
(i) At an average prime rate for each
calendar quarter on amounts held on or
after February 11, 1983. The applicable
average prime rate for each calendar
quarter shall be the arithmetic mean,
to the nearest one-hundredth of one
percent, of the prime rate values published in the Federal Reserve Bulletin, or
in the Federal Reserve’s ‘‘Selected Interest Rates’’ (Statistical Release G.
13) for the most recent three months
preceding the beginning of the calendar
quarter; and
(ii) The interest required to be paid
under paragraph (c)(2)(i) of this section
shall be compounded quarterly.
(3) Any pipeline company required to
make refunds pursuant to this section
shall bear all costs of such refunding.
(4) If any rate or charge described in
paragraph (a) of this section that is
found not to be justified by the Commission is shared between two or more
pipeline companies, each pipeline company which shared in the unjustified
rates or charges is required to refund
to the pipeline company that published
the tariff, not less than five days prior
to the refund date ordered by the Commission under paragraph (c)(1) of this
section,
(i) That portion of the unjustified
rates or charges shared, and
(ii) The appropriate interest as required in paragraph (c)(2) of this section for the period during which the refundable amounts were held.
The pipeline company that published
the tariff shall, on the date set by the
Commission in its final order, make refunds with interest to the appropriate

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Federal Energy Regulatory Commission
shipper for the full period during which
the refundable amounts were held.
[Order 273, 48 FR 1289; Jan. 12, 1983]

PART 341—OIL PIPELINE TARIFFS:
OIL PIPELINE COMPANIES SUBJECT TO SECTION 6 OF THE
INTERSTATE COMMERCE ACT
Sec.
341.0 Definitions; application.
341.1 Electronic filing of tariffs and related
materials.
341.2 Filing requirements.
341.3 Form of tariff.
341.4 Amendments of tariff filings.
341.5 Cancellation of tariffs.
341.6 Adoption of tariff by a successor.
341.7 Concurrences.
341.8 Terminal and other services.
341.9 Index of tariffs.
341.10 Application of rates to intermediate
points.
341.11 Rejection of tariff publications and
other filed materials.
341.12 Informal submissions.
341.13 Withdrawal of proposed tariff publications.
341.14 Special permission.
341.15 Long and short haul or aggregate of
intermediate rates.
AUTHORITY: 42 U.S.C. 7101–7352; 49 U.S.C. 1–
27.

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SOURCE: Order 561, 58 FR 58773, Nov. 4, 1993,
unless otherwise noted.

§ 341.0 Definitions; application.
(a) Definitions. (1) Carrier means an
oil pipeline subject to the Commission’s jurisdiction under the Interstate
Commerce Act.
(2) Concurrence means the agreement
of a carrier to participate in the joint
rates or regulations published by another carrier.
(3) Local rate means a rate for service
over the lines or routes of only one carrier.
(4) Local tariffs means tariffs which
contain only local rates.
(5) Joint rate means a rate that applies for service over the lines or routes
of two or more carriers made by an
agreement between the carriers, effected by a concurrence or power of attorney.
(6) Joint tariffs means tariffs which
contain only joint rates.
(7) Posting or post means making current and proposed and tariffs suspended

§ 341.0
for more than a nominal period available on a carriers’ public Web site.
(8) Proportional rates means rates published to apply only to traffic having a
prior transportation movement, a subsequent transportation movement, or
both.
(9) Rule means any regulation or condition of service stated in the tariff
which affects any rate or service provided by the carrier.
(10) Subscriber means a shipper or a
person who regularly is furnished a
copy of a particular tariff publication
(including reissues and amendments)
by the publishing carrier or agent.
(11) Tariff publication means all parts
of a filed tariff, including revised
pages, supplements and sections.
(12) Through rates means the total
rates from point of origin to destination. They may be local rates, joint
rates, or a combination of separately
established rates.
(13) Section means an individual portion of a tariff that is tracked and accorded appropriate legal status (proposed, suspended, effective). A section
is the smallest portion of a tariff that
can be submitted as part of a tariff filing.
(b) General application. (1) Each carrier must publish, post, and file with
the Commission tariff publications
which contain in clear, complete, and
specific form all the rules and regulations governing the rates and charges
for services performed in accordance
with the tariff. Tariffs must be published in a format that ensures the tariffs are readable and that their terms
and conditions are easy to understand
and apply.
(2) The Commission may reject, or
may require modification, correction,
or reissuance of, any tariff publication
or other document not in compliance
with the law.
(3) All tariffs filed on or after December 6, 1993 must conform to the regulations of this part. Tariffs which are on
file as of that date will not have to be
reissued solely to conform to this part.
(4) Each carrier must post and maintain a complete and current set of all
proposed, current, and suspended tariff
publications which it has issued or to
which it is a party. The carrier must
identify in its posted tariff files any

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§ 341.1

18 CFR Ch. I (4–1–16 Edition)

tariff publication under suspension and
investigation. Each carrier must afford
inquirers reasonable opportunity to examine its posted tariff files.

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[58 FR 58773, Nov. 4, 1993, as amended by
Order 606, 64 FR 44404, Aug. 16, 1999; Order
714, 73 FR 57536, Oct. 3, 2008; Order 780, 78 FR
32098, May 29, 2013]

§ 341.1 Electronic filing of tariffs and
related materials.
(a) General rule. Filings of tariff publications and related materials must be
made electronically.
(b) Requirement for signature. All filings must be signed in compliance with
the following:
(1) The signature on a filing constitutes a certification that the contents are true to the best knowledge
and belief of the signer, and that the
signer possesses full power and authority to sign the filing.
(2) A filing must be signed by one of
the following:
(i) The person on behalf of whom the
filing is made;
(ii) An officer, agent, or employee of
the company, governmental authority,
agency, or instrumentality on behalf of
which the filing is made; or,
(iii) A representative qualified to
practice before the Commission under
§ 385.2101 of this chapter who possesses
authority to sign.
(3) All signatures on the filing or any
document included in the filing must
comply, where applicable, with the requirements in § 385.2005 of this chapter
with respect to sworn declarations or
statements and electronic signatures.
(c) Format requirements for electronic
filing. The requirements and formats
for electronic filing are listed in instructions for electronic filing and for
each form. These formats are available
on the Internet at http://www.ferc.gov
and can be obtained at the Federal Energy Regulatory Commission, Public
Reference Room, 888 First Street, NE.,
Washington, DC 20426.
(d) Only filings filed and designated
as filings with statutory action dates
in accordance with these electronic filing requirements and formats will be
considered to have statutory action
dates. Filings not properly filed and
designated as having statutory action
dates will not become effective, pursu-

ant to the Interstate Commerce Act,
should the Commission not act by the
requested action date.
[Order 714, 73 FR 57536, Oct. 3, 2008, as amended by Order 714–A, 79 FR 29077, May 21, 2014]

§ 341.2

Filing requirements.

(a) Service of filings. (1) Carriers must
serve tariff publications and justifications to each shipper and subscriber.
Such service shall be made in accordance with the requirements of § 385.2010
of this chapter.
(2) Unless it seeks a waiver of electronic service, each customer or party
entitled to service under this paragraph (a) must notify the company of
the e-mail address to which service
should be directed. A customer or
party may seek a waiver of electronic
service by filing a waiver request under
Part 390 of this chapter providing good
cause for its inability to accept electronic service.
(b) Notice period. All tariff publications (except for suspension supplements, adoption notices, adoption supplements, and tariff indexes) must be
filed with the Commission and posted
not less than 30, nor more than 60, days
prior to the proposed effective date, unless a different notice period is authorized by the Commission. The notice period shall begin the first full day after
the tariff publication is filed with the
Commission and shall end on the last
day prior to the tariff publication effective date.
(c) Transmittal letter—(1) Contents.
Letters of transmittal must describe
the filing and explain any changes to
the carrier’s rates, rules, terms or conditions of service; state if a waiver is
being requested, and specify the statute, section, regulation, policy or order
requested to be waived; and identify
the tariffs supplemental numbers, or
tariff sections and the proposed effective date of the tariff publication. Carriers must provide to the Commission,
in the letter of transmittal accompanying the filing of a tariff publication containing a joint carrier, the address, phone number, and a contact for
each joint carrier listed in the tariff
publication.
(2) Certification. Letters of transmittal must certify that the filing has

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Federal Energy Regulatory Commission
been sent to each subscriber of the tariff publication pursuant to paragraph
(a) of this section. For service made on
paper, the letters of transmittal must
certify that the filing has been sent to
each customer or party by first class
mail or other agreed-upon means. If
there are no subscribers, letters of
transmittal must so certify.

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[58 FR 58773, Nov. 4, 1993, as amended by
Order 606, 64 FR 44404, Aug. 16, 1999; Order
714, 73 FR 57536, Oct. 3, 2008; Order 780, 78 FR
32098, May 29, 2013]

§ 341.3 Form of tariff.
(a) Tariffs may be filed either by dividing the tariff into tariff sections or
as an entire document.
(b) Contents of tariff. All tariff publications must contain the following information in the following order:
(1) Title page. The title page of each
tariff must contain the following information:
(i) The FERC tariff number designation, in the upper right hand corner,
numbered consecutively, and the FERC
tariff number designation of the tariff
that is canceled, if any, under it;
(ii) The corporate name of the carrier;
(iii) The type of rates, e.g., local,
joint, or proportional, and the commodity to which the tariff applies, e.g.,
crude, petroleum product, or jet fuel;
(iv) Governing tariffs, e.g., separate
‘‘rules and regulations’’ tariffs, if any;
(v) The specific Commission order
pursuant to which the tariff is issued;
(vi) The issue date, which must be
shown on the lower left side, and the
effective date, which must be shown on
the lower right side;
(vii) The expiration date, if applicable;
(viii) The name of the issuing officer
or duly appointed official issuing the
tariff, the complete street and mailing
address of the carrier, and the name
and phone number of the individual responsible for compiling the tariff publication.
(2) Table of contents. Tariffs of more
than nine pages in length must contain
a table of contents. A table of contents
is optional for tariffs which are less
than 10 pages in length.
(3) A list of carriers participating in
joint tariffs.

§ 341.3
(4) Index of Commodities.
(5) Explanatory statements. These
statements must explain the proper application of rates and rules.
(6) Rules governing tariff publications.
(i) All rules affecting the rates or the
services provided for in the tariff publication must be included. A special rule
affecting a particular item or rate
must be referred to specifically in that
item or in connection with that rate.
(ii) Each rule must be given a separate item number, (e.g., Item No. 1),
and the title of each rule must be distinctive.
(iii) Except as provided in § 341.10,
tariffs may not include any rules that
substitute for any rates named in the
tariff or found in any other tariff.
Rules may not provide that traffic of
any nature will be ‘‘transported only
by special agreement’’ or any other
provision of similar meaning.
(iv) Rules may be separately published in a general rules tariff when it
is not desirable or practicable to include the governing rules in the rate
tariff. Rate tariffs that do not contain
rules must make specific reference, by
FERC Tariff number, to the governing
general rules tariff.
(v) When joint rate tariffs refer to a
separate governing rules tariff, such
separate tariff must be concurred in by
all joint carriers.
(7) Statement of rates. Rates must be
stated explicitly in cents, or in dollars
and cents, per barrel or other specified
unit. The names or designations of the
places from and to which the rates
apply must be arranged in a simple and
systematic manner. Any related services performed by the carrier in connection with the rates must be clearly
identified and explained. Duplicative or
conflicting rates for the same service
are prohibited.
(8) Routing. Routing over which the
rates apply must be stated so that the
actual routes may be ascertained. This
may be accomplished by stating that
the rates apply via all routes of the
carrier except as otherwise specifically
stated in the tariff.
(9) Explanation of abbreviations and
reference marks. Reference marks, abbreviations, and note references must
be explained at the end of each tariff
publication. U.S. Postal Service state

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§ 341.4

18 CFR Ch. I (4–1–16 Edition)

abbreviations and other commonly
used abbreviations need not be explained.
(10) Changes to be indicated in tariff or
supplement.
(i) All tariff publications must identify where changes have been made in
existing rates or charges, rules, regulations or practices, or classifications.
One of the following letter designations
or uniform symbols may be used to indicate the change, and insertions,
other than to tables and rates, must be
indicated by either highlight, background shading, bold, or underline,
with deleted text indicated by strikethrough:
Description

Option 1

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Increase ...............................
Decrease .............................
Change in wording only ......
Cancel .................................
Reissued Item .....................
Unchanged Rate .................
New .....................................

>
<
∧
/
∼
=
+

ices, that fact must be indicated by the
use of the symbols prescribed in paragraph (b)(10)(i) of this section.
(vi) Only revisions to tariff provisions identified in the filing constitute
the tariff filing. Revisions to unidentified portions of the rate schedule or
tariff are not considered part of the filing nor will any acceptance of the filing by the Commission constitute acceptance of such unmarked changes.
(11) Tariff publications must be consecutively numbered.
[Order 561, 58 FR 58773, Nov. 4, 1993, as
amended by Order 714, 73 FR 57536, Oct. 3,
2008; Order 780, 78 FR 32098, May 29, 2013]

§ 341.4

Option 2
[I]
[D]
[W]
[C]
[R]
[U]
[N]

(ii) Reissued items must include in
the square or brackets the number of
the tariff supplement where the item
was first issued or amended. If the letter designation is used, the number of
the supplement must be shown together with the letter. The references
must be explained at the end of the tariff. For example: ‘‘[R2] Reissued from
Supplement No. 2, effective [specify
date].’’
(iii) The symbols and letter designations contained in paragraph (b)(10)(i)
of this section must not be used for any
other purpose.
(iv) When the same change is made in
all or in substantially all rates in a
tariff, a tariff supplement, or a tariff or
tariff supplement page, that fact and
the nature of the change must be indicated in distinctive type at the top of
the title page of the issue, or at the top
of each page, as appropriate. For example: ‘‘All rates in this issue are increased,’’ or ‘‘All rates on this page are
reduced unless otherwise indicated.’’
(v) When a tariff publication that
cancels a previous tariff publication
does not include points of origin or destination, or rates, rules, or routes that
were contained in the prior tariff publication, the new tariff publication must
indicate the cancellation. If such omissions effect changes in charges or serv-

Amendments of tariff filings.

A carrier may file to amend or modify a tariff contained in a tariff filing
at any time during the pendency of the
filing. Such filing will toll the notice
period as provided in § 341.2(b) for the
original filing, and the filing becomes
provisionally effective 31 days from the
original filing and, in the absence of
Commission action, fully effective 31
days from the date of the filing of
amendment or modification.
[Order 780, 78 FR 32098, May 29, 2013]

§ 341.5

Cancellation of tariffs.

Carriers must cancel tariffs when the
service or transportation movement is
terminated. If the service in connection with the tariff is no longer in
interstate commerce, the tariff publication must so state. Carrier must file
such cancellations within 30 days of
the termination of service.
[Order 780, 78 FR 32098, May 29, 2013]

§ 341.6 Adoption of tariff by a successor.
Whenever the tariff(s), or a portion
thereof, of a carrier on file with the
Commission are to be adopted by another carrier as a result of an acquisition, merger, or name change, the succeeding company must file with the
Commission, and post within 30 days
after such succession, the tariff, or portion thereof, that has been adopted in
the electronic format required by § 341.1
bearing the name of the successor company.
[Order 780, 78 FR 32098, May 29, 2013]

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Federal Energy Regulatory Commission
§ 341.7

Concurrences.

Concurrences must be shown in the
carrier’s tariff and maintained consistent with the requirements of Part
341 of this chapter.
[Order 780, 78 FR 32099, May 29, 2013]

§ 341.8

Terminal and other services.

Carriers must publish in their tariffs
rules governing such matters as
prorationing of capacity, demurrage,
odorization, carrier liability, quality
bank, reconsignment, in-transit transfers, storage, loading and unloading,
gathering,
terminalling,
batching,
blending, commingling, and connection
policy, and all other charges, services,
allowances, absorptions and rules
which in any way increase or decrease
the amount to be paid on any shipment
or which increase or decrease the value
of service to the shipper.
§ 341.9

Index of tariffs.

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(a) In general. Each carrier with more
than two tariffs or concurrences must
post on its public Web site a complete
index of all effective tariffs to which it
is a party, either as an initial, intermediate, or delivering carrier. The
index must be arranged in sections as
indicated in paragraphs (b), (c), and (d)
of this section and must show as to
each tariff:
(1) The FERC Tariff number;
(2) The full name of the issuing carrier or agent;
(3) The type of tariff or description of
the traffic to which it applies, including origin and destination points; and
(4) Whether the tariff contains rates
for transportation by mode other than
pipeline.
(5) Product Shipped and Origin. Each
index must identify, for each tariff, the
product or products being shipped and
the origin and destination points specific to each product or products.
(b) Updates. The index of tariffs must
be updated within 90 days of any
change to an effective tariff.
[Order 561, 58 FR 58773, Nov. 4, 1993, as
amended by Order 780, 78 FR 32099, May 29,
2013]

§ 341.10
§ 341.10 Application of rates to intermediate points.
(a) Applicability. (1) A carrier may
provide in its tariff that existing rates
between points named in the tariff will
be applied to transportation movements from intermediate origin points
not named in the tariff to named destination points, and from named origin
points to intermediate destination
points not named in the tariff.
(2) A carrier must file a tariff publication applicable to the transportation
movements within 30 days of the start
of the service if the intermediate point
is to be used on a continuous basis for
more than 30 days.
(b) Intermediate point commodity rate
regulations—(1)
Intermediate
origin
points. The rate for service provided to
a published destination point from an
origin point not specifically named in
the tariff, but located intermediate to
published
origin
and
destination
points, must be the same as the published rate from the next more distant
origin point. Application of this provision is subject to the following:
(i) If branch or diverging lines create
two or more ‘‘next more distant’’
points, the carrier must apply the rate
which results in the lowest charge.
(ii) If the intermediate point is located between two published origin
points, the carrier must apply the rate
which results in the higher charge.
(iii) If the intermediate point is between more than two published origin
points due to branch or diverging lines,
the carrier must eliminate all such
points except that from which the lowest charge is applicable.
(iv) If there is in any other tariff a
commodity rate from the proposed intermediate origin point that is applicable to the same movement, the carrier
should not apply this rule from such
intermediate point.
(2) Intermediate destination points. The
rate for service provided from a published origin point to a destination
point not specifically named in the tariff, but located intermediate to published origin and destination points,
must be the same as the published rate
to the next more distant destination
point. Application of this provision is
subject to the following:

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§ 341.11

18 CFR Ch. I (4–1–16 Edition)

(i) If branch or diverging lines create
two or more ‘‘next more distant’’
points, the carrier must apply the rate
which results in the lowest charge.
(ii) If the intermediate point is located between two published destination points, the carrier must apply the
rate which results in the higher charge.
(iii) If the intermediate point is between more than two published destination points due to branch or diverging lines, the carrier must eliminate all such points except that from
which the lowest charge is applicable.
(iv) If there is in any other tariff a
commodity rate to the proposed intermediate destination point that is applicable to the same movement, the carrier should not apply the provisions of
this rule to such intermediate point.
(3) Intermediate origin and destination
points. Both paragraphs (b)(1) and (b)(2)
of this section may apply in connection
with the same rate. In this instance,
both regulations should be used to establish rates from intermediate points
of origin to intermediate points of destination.
§ 341.11 Rejection of tariff publications
and other filed materials.
(a) Basis for rejection. The Commission may reject tariff publications or
any other material submitted for filing
that fail to comply with the requirements set forth in this part or violate
any statute, or any regulation, policy
or order of the Commission.
(b) Numbering and notating tariff publications. The FERC Tariff number assigned to a tariff publication that has
been rejected may not be used again.
[Order 561, 58 FR 58773, Nov. 4, 1993, as
amended by Order 780, 78 FR 32099, May 29,
2013]

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§ 341.12 Informal submissions.
Carriers may informally submit tariff publications or related material for
suggestions of Staff prior to the filing
of the tariff publications with the Commission.
§ 341.13 Withdrawal of proposed tariff
publications.
(a) Proposed tariff publications. A proposed tariff publication which is not
yet effective may be withdrawn at any
time by filing a notice with the Com-

mission with a certification that all
subscribers have been notified by copy
of such withdrawal.
(b) Tariff publications that are subject
to investigation. A tariff publication
that has been permitted to become effective subject to investigation may be
withdrawn at any time by filing a notice with the Commission, which includes a transmittal letter, a certification that all subscribers have been
notified of the withdrawal, and the previous tariff provisions that are to be
reinstated upon withdrawal of the tariff publication under investigation.
Such withdrawal shall be effective immediately upon the submission of the
notice, unless a specific effective date
is set forth in the notice, and must
have the following effects:
(1) Any proceeding with respect to
such tariff publication shall be terminated;
(2) The previous tariff rate shall be
reinstated; and
(3) Any amounts collected under the
withdrawn tariff publication which are
in excess of the previous tariff rate
shall be refunded within 30 days of the
withdrawal with interest as calculated
by § 340.1 of this chapter.
(c) Numbering and notating tariff publications. The FERC Tariff number assigned to a tariff publication which has
been withdrawn may not be used again.
[Order 561, 58 FR 58773, Nov. 4, 1993, as
amended by Order 714, 73 FR 57537, Oct. 3,
2008; Order 780, 78 FR 32099, May 29, 2013]

§ 341.14 Special permission.
(a) Procedure. Applications for waiver
of the notice and tariff requirements of
section 6(3) of the interstate Commerce
Act must be filed by the carrier concurrently with the tariff publication
being proposed. The letter of transmittal must identify the filing as requesting a waiver under section 6(3) of
the Interstate Commerce Act. The application must state in detail any unusual circumstance or emergency situation that supports the requested waiver. If the application requests permission to make changes in joint tariffs, it
must state that it is made on behalf of
all carriers party to the proposed
change. Tariff publications issued on
short notice must contain the following statement on the Title Pages:

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Federal Energy Regulatory Commission
Issued on [insert number] days notice under
authority of 18 CFR 341.14. This tariff publication is conditionally accepted subject to
refund pending a 30 day review period.

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(b) Conditional acceptance subject to refund. To permit short-notice filings to
become effective as requested, the tariff publications filed concurrently with
special permission requests for short
(less than 30 days) notice will be
deemed conditionally accepted for filing, subject to refund, until the Commission has had a full 30-day review period in which to process the filing. Refunds will be collected with interest as
calculated according to § 340.1 of this
chapter. The refund obligation will
automatically terminate with no refunds due at the end of the full 30-day
notice period absent an order to the
contrary issued by the Commission.
(c) Granting automatic permission. The
special permission requested will be
deemed automatically granted at the
end of the full 30-day notice period absent an order denying such request.
§ 341.15 Long and short haul or aggregate of intermediate rates.
(a) Requests for relief from section 4.
Carriers may file requests for relief
from the provisions of section 4 of the
Interstate Commerce Act in order to
charge a greater amount for a shorter
distance over the same line or route in
the same direction, or to charge greater compensation as a through rate than
the aggregate of the intermediate
rates. Such request will be deemed
granted unless the Commission denies
the request within 30 days of the filing.
(b) Information required to be filed. A
request for section 4 relief must contain the following information:
(1) The names of the carriers for
which the relief is being requested.
(2) The FERC tariff numbers which
contain the rates or charges referred to
in the application, and identification of
all the particular and related rates in
question delineating origin and destination points.
(3) An accurate and complete statement giving the basis and reasoning
why section 4 relief is necessary.
(4) A statement that the lower rates
for longer than for shorter hauls over
the same line or route are reasonably
compensatory.

§ 342.1
(5) A map showing the pipelines and
origin and destination points in question and other pertinent information.
(c) Filing tariff publications concurrent
with application. Applications for section 4 relief must be filed concurrently
with the tariff publication filing establishing those rates. The transmittal
letter must identify the filing as requesting section 4 relief.
(d) Tariff statement. Tariff publications filed containing such rates shall
plainly state on the title page of the
tariff publication that the rates contained therein contravene section 4 of
the Interstate Commerce Act.
(e) Rounding through rates. When a
carrier aggregates intermediate rates
to make up through rates, it may
round the resulting through rate to the
nearest 0.5 whole cent.

PART 342—OIL PIPELINE RATE
METHODOLOGIES AND PROCEDURES
Sec.
342.0
342.1
342.2
342.3
342.4

Applicability.
General rule.
Establishing initial rates.
Indexing.
Other rate changing methodologies.

AUTHORITY: 5 U.S.C. 571–83; 42 U.S.C. 7101–
7532; 49 U.S.C. 60502; 49 App. U.S.C. 1–85.
SOURCE: Order 561, 58 FR 58779, Nov. 4, 1993,
unless otherwise noted.

§ 342.0

Applicability.

(a) Except as provided in paragraph
(b) of this section, rate changes by oil
pipelines shall be governed by this
part.
(b) Exception for the Trans-Alaska
Pipeline. This part shall not apply to
the Trans-Alaska Pipeline authorized
by the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651, et seq.) or to
any pipeline delivering oil directly or
indirectly to the Trans-Alaska Pipeline.
§ 342.1

General rule.

Each carrier subject to the jurisdiction of the Commission under the
Interstate Commerce Act:
(a) Must establish its initial rates
subject to such Act pursuant to § 342.2;
and

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§ 342.2

18 CFR Ch. I (4–1–16 Edition)

(b) Must make any change in existing
rates pursuant to § 342.3 or § 342.4,
whichever is applicable, unless directed
otherwise by the Commission.
§ 342.2 Establishing initial rates.
A carrier must justify an initial rate
for new service by:
(a) Filing cost, revenue, and throughput data supporting such rate as required by part 346 of this chapter; or
(b) Filing a sworn affidavit that the
rate is agreed to by at least one non-affiliated person who intends to use the
service in question, provided that if a
protest to the initial rate is filed, the
carrier must comply with paragraph (a)
of this section.

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[Order 561, 58 FR 58779, Nov. 4, 1993, as
amended at 59 FR 59146, Nov. 16, 1994]

§ 342.3 Indexing.
(a) Rate changes. A rate charged by a
carrier may be changed, at any time,
to a level which does not exceed the
ceiling level established by paragraph
(d) of this section, upon compliance
with the applicable filing and notice
requirements and with paragraph (b) of
this section. A filing under this section
proposing to change a rate that is
under investigation and subject to refund, must take effect subject to refund.
(b) Information required to be filed with
rate changes. The carrier must comply
with Part 341 of this title. Carriers
must specify in their letters of transmittal required in § 341.2(c) of this
chapter the rate schedule to be
changed, the proposed new rate, the
prior rate, the prior ceiling level, and
the applicable ceiling level for the
movement. No other rate information
is required to accompany the proposed
rate change.
(c) Index year. The index year is the
period from July 1 to June 30.
(d) Derivation of the ceiling level. (1) A
carrier must compute the ceiling level
for each index year by multiplying the
previous index year’s ceiling level by
the most recent index published by the
Commission. The index will be published by the Commission prior to June
1 of each year.
(2) The index published by the Commission will be based on the change in
the final Producer Price Index for Fin-

ished Goods (PPI-FG), seasonally adjusted, as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the two calendar years immediately preceding the index year. The
index will be calculated by dividing the
PPI-FG for the calendar year immediately preceding the index year, by
the previous calendar year’s PPI-FG.
(3) A carrier must compute the ceiling level each index year without regard to the actual rates filed pursuant
to this section. All carriers must round
their ceiling levels each index year to
the nearest hundredth of a cent.
(4) For purposes of computing the
ceiling level for the period January 1,
1995 through June 30, 1995, a carrier
must use the rate in effect on December 31, 1994 as the previous index year’s
ceiling level in the computation in
paragraph (d)(1) of this section. If the
rate in effect on December 31, 1994 is
subsequently lowered by Commission
order pursuant to the Interstate Commerce Act, the ceiling level based on
such rate must be recomputed, in accordance with paragraph (d)(1) of this
section, using the rate established by
such Commission order in lieu of the
rate in effect on December 31, 1994.
(5) When an initial rate, or rate
changed by a method other than indexing, takes effect during the index year,
such rate will constitute the applicable
ceiling level for that index year. If such
rate is subsequently lowered by Commission order pursuant to the Interstate Commerce Act, the ceiling level
based on such rate must be recomputed, in accordance with paragraph
(d)(1) of this section, using the rate established by such Commission order as
the ceiling level for the index year
which includes the effective date of the
rate established by such Commission
order.
(e) Rate decreases. If the ceiling level
computed pursuant to § 342.3(d) is below
the filed rate of a carrier, that rate
must be reduced to bring it into compliance with the new ceiling level; provided, however, that a carrier is not required to reduce a rate below the level
deemed just and reasonable under section 1803(a) of the Energy Policy Act of
1992, if such section applies to such
rate or to any prior rate. The rate decrease must be accomplished by filing

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Federal Energy Regulatory Commission
a revised tariff publication with the
Commission to be effective July 1 of
the index year to which the reduced
ceiling level applies.

PART 343—PROCEDURAL RULES APPLICABLE TO OIL PIPELINE PROCEEDINGS

[Order 561, 58 FR 58779, Nov. 4, 1993, as
amended by Order 561–A, 59 FR 40256, Aug. 8,
1994; 59 FR 59146, Nov. 16, 1994; Order 606, 64
FR 44405, Aug. 16, 1999; Order 650, 69 FR 53801,
Sept. 3, 2004]

Sec.
343.0 Applicability.
343.1 Definitions.
343.2 Requirements for filing interventions,
protests and complaints.
343.3 Filing of protests and responses.
343.4 Procedure on complaints.
343.5 Required negotiations.

§ 342.4 Other
odologies.

rate

changing

meth-

(a) Cost-of-service rates. A carrier may
change a rate pursuant to this section
if it shows that there is a substantial
divergence between the actual costs experienced by the carrier and the rate
resulting from application of the index
such that the rate at the ceiling level
would preclude the carrier from being
able to charge a just and reasonable
rate within the meaning of the Interstate Commerce Act. A carrier must
substantiate the costs incurred by filing the data required by part 346 of this
chapter. A carrier that makes such a
showing may change the rate in question, based upon the cost of providing
the service covered by the rate, without regard to the applicable ceiling
level under § 342.3.
(b) Market-based rates. A carrier may
attempt to show that it lacks significant market power in the market in
which it proposes to charge marketbased rates. Until the carrier establishes that it lacks market power,
these rates will be subject to the applicable ceiling level under § 342.3.
(c) Settlement rates. A carrier may
change a rate without regard to the
ceiling level under § 342.3 if the proposed change has been agreed to, in
writing, by each person who, on the
day of the filing of the proposed rate
change, is using the service covered by
the rate. A filing pursuant to this section must contain a verified statement
by the carrier that the proposed rate
change has been agreed to by all current shippers.

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§ 343.2

[Order 561, 58 FR 58779, Nov. 4, 1993, as
amended at 59 FR 59146, Nov. 16, 1994]

AUTHORITY: 5 U.S.C. 571–583; 42 U.S.C. 7101–
7352; 49 U.S.C. 60502; 49 App. U.S.C. 1-85.
SOURCE: Order 561, 58 FR 58780, Nov. 4, 1993,
unless otherwise noted.

§ 343.0 Applicability.
(a) General rule. The Commission’s
Rules of Practice and Procedure in part
385 of this chapter will govern procedural matters in oil pipeline proceedings under part 342 of this chapter
and under the Interstate Commerce
Act, except to the extent specified in
this part.
§ 343.1 Definitions.
For purposes of this part, the following definitions apply:
(a) Complaint means a filing challenging an existing rate or practice
under section 13(1) of the Interstate
Commerce Act.
(b) Protest means a filing, under section 15(7) of the Interstate Commerce
Act, challenging a tariff publication.
[Order 561, 58 FR 58780, Nov. 4, 1993, as
amended by Order 578, 60 FR 19505, Apr. 19,
1995]

§ 343.2 Requirements for filing interventions, protests and complaints.
(a) Interventions. Section 385.214 of
this chapter applies to oil pipeline proceedings.
(b) Standing to file protest. Only persons with a substantial economic interest in the tariff filing may file a protest to a tariff filing pursuant to the
Interstate Commerce Act. Along with
the protest, a verified statement that
the protestor has a substantial economic interest in the tariff filing in
question must be filed.
(c) Other requirements for filing protests
or complaints—(1) Rates established under
§ 342.3 of this chapter. A protest or complaint filed against a rate proposed or

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§ 343.3

18 CFR Ch. I (4–1–16 Edition)

established pursuant to § 342.3 of this
chapter must allege reasonable grounds
for asserting that the rate violates the
applicable ceiling level, or that the
rate increase is so substantially in excess of the actual cost increases incurred by the carrier that the rate is
unjust and unreasonable, or that the
rate decrease is so substantially less
than the actual cost decrease incurred
by the carrier that the rate is unjust
and unreasonable. In addition to meeting the requirements of the section, a
complaint must also comply with all
the requirements of § 385.206, except
§ 385.206(b)(1) and (2).
(2) Rates established under § 342.4(c) of
this chapter. A protest or complaint
filed against a rate proposed or established under § 342.4(c) of this chapter
must allege reasonable grounds for asserting that the rate is so substantially
in excess of the actual cost increases
incurred by the carrier that the rate is
unjust and unreasonable. In addition to
meeting the requirements of the section, a complaint must also comply
with all the requirements of § 385.206,
except § 385.206(b)(1) and (2).
(3) Non-rate matters. A protest or complaint filed against a carrier’s operations or practices, other than rates,
must allege reasonable grounds for asserting that the operations or practices
violate a provision of the Interstate
Commerce Act, or of the Commission’s
regulations. In addition to meeting the
requirements of this section, a complaint must also comply with the requirements of § 385.206.
(4) A protest or complaint that does
not meet the requirements of paragraphs (c)(1), (c)(2), or (c)(3) of this section, whichever is applicable, will be
dismissed.

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[Order 561, 58 FR 58780, Nov. 4, 1993, as
amended by Order 602, 64 FR 17097, Apr. 8,
1999; Order 606, 64 FR 44405, Aug. 16, 1999]

§ 343.3 Filing of protests and responses.
(a) Protests. Any protest pursuant to
section 15(7) of the Interstate Commerce Act must be filed not later than
15 days after the filing of a tariff publication. If the carrier submits a separate letter with the filing, providing a
telefax number and contact person, and
requesting all protests to be telefaxed

to the carrier by a protestant, any protest must be so telefaxed to the pipeline at the time the protest is filed
with the Commission. Only persons
with a substantial economic interest in
the tariff filing may file a protest to a
tariff filing pursuant to the Interstate
Commerce Act. Along with the protest,
the protestant must file a verified
statement which must contain a reasonably detailed description of the nature and substance of the protestant’s
substantial economic interest in the
tariff filing.
(b) Responses. The carrier may file a
response to a protest no later than 5
days from the filing of the protest.
(c) Commission action. Commission action, including any hearings or other
proceedings, on a protest will be limited to the issues raised in such protest. If a filing is protested, before the
effective date of the tariff publication
or within 30 days of the tariff filing,
whichever is later, the Commission
will determine whether to suspend the
tariff and initiate a formal investigation.
(d) Termination of investigation. Withdrawal of the protest, or protests, that
caused the initiation of an investigation automatically terminates the investigation.
[Order 561, 58 FR 58780, Nov. 4, 1993, as
amended by Order 561–A, 59 FR 40256, Aug. 8,
1994]

§ 343.4 Procedure on complaints.
(a) Responses. The carrier must file
an answer to a complaint filed pursuant to section 13(1) of the Interstate
Commerce Act within 20 days after the
filing of the complaint in accordance
with Rule 206.
(b) Commission action. Commission action, including any hearings or other
proceedings, on a complaint will be
limited to the issues raised in the complaint.
[Order 561, 58 FR 58780, Nov. 4, 1993, as
amended by Order 602, 64 FR 17097, Apr. 8,
1999]

§ 343.5 Required negotiations.
The Commission or other decisional
authority may require parties to enter
into good faith negotiations to settle
oil pipeline rate matters. The Commission will refer all protested rate filings

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Federal Energy Regulatory Commission
to a settlement judge pursuant to
§ 385.603 of this chapter for recommended resolution. Failure to participate in such negotiations in good
faith is a ground for decision against
the party so failing to participate on
any issue that is the subject of negotiation by other parties.
[Order 578, 60 FR 19505, Apr. 19, 1995]

§ 346.2
(e) Supersession of a quotation or tender. A quotation or tender which supersedes a prior quotation or tender must,
by a statement shown immediately
under the number of the new document, cancel the prior document number.
[Order 561, 58 FR 58778, Nov. 4, 1993, as
amended by Order 714, 73 FR 57537, Oct. 3,
2008]

PART 344—FILING QUOTATIONS
FOR U.S. GOVERNMENT SHIPMENTS AT REDUCED RATES
Sec.
344.1
344.2

Applicability.
Manner of submitting quotations.

AUTHORITY: 42 U.S. 7101–7352; 49 U.S.C. 1–27.

§ 344.1

Applicability.

The provisions of this part will apply
to quotations or tenders made by all
pipeline common carriers to the United
States Government, or any agency or
department thereof, for the transportation, storage, or handling of petroleum and petroleum products at reduced rates as permitted by section 22
of the Interstate Commerce Act. Excepted are filings which involve information, the disclosure of which would
endanger the national security.
[Order 561, 58 FR 58778, Nov. 4, 1993]

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§ 344.2 Manner
quotations.

of

submitting

(a) The quotation or tender must be
submitted to the Commission concurrently with the submittal of the
quotation or tender to the Federal department or agency for whose account
the quotation or tender is offered or
the proposed services are to be rendered.
(b) [Reserved]
(c) Filing procedure. (1) The quotation
must be filed with a letter of transmittal that prominently indicates that
the filing is in accordance with section
22 of the Interstate Commerce Act.
(2) All filings pursuant to this part
must be filed electronically consistent
with §§ 341.1 and 341.2 of this chapter.
(d)
Numbering.
The
copies
of
quotations or tenders which are filed
with the Commission by each carrier
must be numbered consecutively.

PART 346—OIL PIPELINE COST-OFSERVICE FILING REQUIREMENTS
Sec.
346.1 Content of filing for cost-of-service
rates.
346.2 Material in support of initial rates or
change in rates.
346.3 Asset retirement obligations.
AUTHORITY: 42 U.S.C. 7101–7352; 49 U.S.C.
60502; 49 App. U.S.C. 1–85.

§ 346.1 Content of filing for cost-ofservice rates.
A carrier that seeks to establish
rates pursuant to § 342.2(a) of this chapter, or a carrier that seeks to change
rates pursuant to § 342.4(a) of this chapter, or a carrier described in § 342.0(b) of
this chapter that seeks to establish or
change rates by filing cost, revenue,
and throughput data supporting such
rates, other than pursuant to a Commission-approved settlement, must
file, consistent with the requirements
of §§ 341.1 and 341.2 of this chapter:
(a) A letter of transmittal which conforms to §§ 341.2(c) and 342.4(a) of this
chapter;
(b) The proposed tariff; and
(c) The statements and supporting
workpapers set forth in § 346.2.
[59 FR 59146, Nov. 16, 1994, as amended by
Order 588, 61 FR 38569, July 25, 1996; Order
714, 73 FR 57537, Oct. 3, 2008]

§ 346.2 Material in support of initial
rates or change in rates.
A carrier that files for rates pursuant
to § 342.2(a) or § 342.4(a) of this chapter,
or a carrier described in § 342.0(b) that
files to establish or change rates by filing cost, revenue, and throughput data
supporting such rates, other than pursuant to a Commission-approved settlement, must file the following statements, schedules, and supporting
workpapers. The statement, schedules,

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lpowell on DSK54DXVN1OFR with $$_JOB

§ 346.2

18 CFR Ch. I (4–1–16 Edition)

and workpapers must be based upon an
appropriate test period.
(a) Base and test periods defined. (1)
For a carrier which has been in operation for at least 12 months:
(i) A base period must consist of 12
consecutive months of actual experience. The 12 months of experience must
be adjusted to eliminate nonrecurring
items (except minor accounts). The filing carrier may include appropriate
normalizing adjustments in lieu of nonrecurring items.
(ii) A test period must consist of a
base period adjusted for changes in revenues and costs which are known and
are measurable with reasonable accuracy at the time of filing and which
will become effective within nine
months after the last month of available actual experience utilized in the
filing. For good cause shown, the Commission may allow reasonable deviation from the prescribed test period.
(2) For a carrier which has less than
12 months’ experience, the test period
may consist of 12 consecutive months
ending not more than one year from
the filing date. For good cause shown,
the Commission may allow reasonable
deviation from the prescribed test period.
(3) For a carrier which is establishing
rates for new service, the test period
will be based on a 12-month projection
of costs and revenues.
(b) Cost-of-service summary schedule.
This schedule must contain the following information:
(1) Total carrier cost of service for
the test period.
(2) Throughput for the test period in
both barrels and barrel-miles.
(3) For filings pursuant to § 342.4(a) of
this chapter, the schedule must include
the proposed rates, the rates which
would be permitted under § 342.3 of this
chapter, and the revenues to be realized from both sets of rates.
(c) Content of statements. Any cost-ofservice rate filing must include supporting statements containing the following information for the test period.
(1) Statement A—total cost of service.
This statement must summarize the
total cost of service for a carrier (operating and maintenance expense, depreciation and amortization, return, and
taxes) developed from Statements B

through G described in paragraphs (c)
(2) through (7) of this section.
(2) Statement B—operation and maintenance expense. This statement must set
forth the operation, maintenance, administration and general, and depreciation expenses for the test period. Items
used in the computations or derived on
this statement must consist of operations, including salaries and wages,
supplies and expenses, outside services,
operating fuel and power, and oil losses
and shortages; maintenance, including
salaries and wages, supplies and expenses, outside services, and maintenance and materials; administrative
and general, including salaries and
wages, supplies and expenses, outside
services, rentals, pensions and benefits,
insurance, casualty and other losses,
and pipeline taxes; and depreciation
and amortization.
(3) Statement C—overall return on rate
base. This statement must set forth the
rate base for return purposes from
Statement E in paragraph (c)(5) of this
section and must also state the
claimed rate of return and the application of the claimed rate of return to
the overall rate base. The claimed rate
of return must consist of a weighted
cost of capital, combining the rate of
return on debt capital and the real rate
of return on equity capital. Items used
in the computations or derived on this
statement must include deferred earnings, equity ratio, debt ratio, weighted
cost of capital, and costs of debt and
equity.
(4) Statement D—income taxes. This
statement must set forth the income
tax computation. Items used in the
computations or derived on this statement must show: return allowance, interest expense, equity return, annual
amortization of deferred earnings, depreciation on equity AFUDC, underfunded or overfunded ADIT amortization amount, taxable income, tax factor, and income tax allowance.
(5) Statement E—rate base. This statement must set forth the return rate
base. Items used in the computations
or derived on this statement must include beginning balances of the rate
base at December 31, 1983, working capital (including materials and supplies,

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Federal Energy Regulatory Commission
prepayments, and oil inventory), accrued depreciation on carrier plant, accrued depreciation on rights of way,
and accumulated deferred income
taxes; and adjustments and end balances for original cost of retirements,
interest during construction, AFUDC
adjustments, original cost of net additions and retirements from land, original cost of net additions and retirements from rights of way, original cost
of plant additions, original cost accruals for depreciation, AFUDC accrued
depreciation adjustment, original cost
depreciation accruals added to rights of
way, net charge for retirements from
accrued depreciation, accumulated deferred income taxes, changes in working capital (including materials and
supplies, prepayments, and oil inventory), accrued deferred earnings, annual amortization of accrued deferred
earnings, and amortization of starting
rate base write-up.
(6) Statement F—allowance for funds
used during construction. This statement must set forth the computation
of allowances for funds used during
construction (AFUDC) including the
AFUDC for each year commencing in
1984 and a summary of AFUDC and
AFUDC depreciation for the years 1984
through the test year.
(7) Statement G—revenues. This statement must set forth the gross revenues
for the actual 12 months of experience
as computed under both the presently
effective rates and the proposed rates.
If the presently effective rates are not
at the maximum ceiling rate established under § 342.3 of this chapter, then
gross revenues must also be computed
and set forth as if the ceiling rates
were effective for the 12 month period.

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[59 FR 59146, Nov. 16, 1994, as amended by
Order 588, 61 FR 38569, July 25, 1996; Order
606, 64 FR 44405, Aug. 16, 1999]

§ 346.3 Asset retirement obligations.
(a) A carrier that files material in
support of initial rates or change in
rates under § 346.2 and has recorded
asset retirement obligations on its
books must provide a schedule, as part
of the supporting workpapers, identifying all cost components related to
the asset retirement obligations that
are included in the book balances of all
accounts reflected in the cost of serv-

§ 347.1
ice computation supporting the proposed rates. However, all cost components related to asset retirement obligations that would impact the calculation of rate base, such as carrier property and related accumulated depreciation and accumulated deferred income
taxes, may not be reflected in rates and
must be removed from the rate base
calculation through a single adjustment.
(b) A carrier seeking to recover
nonrate base costs related to asset retirement costs in rates must provide,
with its filing under § 346.2 of this part,
a detailed study supporting the
amounts proposed to be collected in
rates.
(c) A carrier who has recorded asset
retirement obligations on its books but
is not seeking recovery of the asset retirement costs in rates, must remove
all asset retirement obligations related
cost components from the cost of service supporting its proposed rates.
[Order 631, 68 FR 19625, Apr. 21, 2003]

PART 347—OIL PIPELINE
DEPRECIATION STUDIES
AUTHORITY: 42 U.S.C. 7101–7352; 49 U.S.C.
60502; 49 App. U.S.C. 1–85.

§ 347.1 Material to support request for
newly established or changed property account depreciation studies.
(a) Means of filing. Filing of a request
for new or changed property account
depreciation rates must be made with
the Secretary of the Commission.
(b) All filings under this Part must
be made electronically pursuant to the
requirements of §§ 341.1 and 341.2 of this
chapter.
(c) Transmittal letter. Letters of transmittal must give a general description
of the change in depreciation rates
being proposed in the filing. Letters of
transmittal must also certify that the
letter of transmittal (not including the
information to be provided, as identified in paragraphs (d) and (e) of this
section) has been sent to each shipper
and to each subscriber. If there are no
subscribers, letters of transmittal must
so state.

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lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 348

18 CFR Ch. I (4–1–16 Edition)

(d) Effectiveness of property account
depreciation rates. (1) The proposed depreciation rates being established in
the first instance must be used until
they are either accepted or modified by
the Commission. Rates in effect at the
time of the proposed revision must continue to be used until the proposed revised rates are approved or modified by
the Commission.
(2) When filing for approval of either
new or changed property account depreciation rates, a carrier must provide
information in sufficient detail to fully
explain and justify its proposed rates.
(e) Information to be provided. The information in paragraphs (e)(1) through
(5) of this section must be provided as
justification for depreciation changes.
Modifications, additions, and deletions
to these data elements should be made
to reflect the individual circumstances
of the carrier’s properties and operations. Any information in paragraphs
(e)(1) through (5) of this section, the release of which would violate section
15(13) of the Interstate Commerce Act,
must be provided in a format that will
protect individual shippers.
(1) A brief summary relating to the
general principles on which the proposed depreciation rates are based (e.g.,
why the economic life of the pipeline
section is less then the physical life).
(2) An explanation of the organization, ownership, and operation of the
pipeline.
(3) A table of the proposed depreciation rates by account.
(4) An explanation of the average remaining life on a physical basis and on
an economic basis.
(5) The following specific background
data must be submitted at the time of
and concurrently with any request for
the establishment of, or modification
to, depreciation rates for carriers. If
the information listed is not applicable, it may be omitted from the filing:
(i) Up-to-date engineering maps of
the pipeline including the location of
all gathering facilities, trunkline facilities, terminals, interconnections
with other pipeline systems, and interconnections
with
refineries/plants.
Maps must indicate the direction of
flow.
(ii) A brief description of the carrier’s operations and an estimate of

any major near-term additions or retirements including the estimated
costs, location, reason, and probable
year of transaction.
(iii) The present depreciation rates
being used by account.
(iv) For the most current year available and for the two prior years, a
breakdown of the throughput (by type
of product, if applicable) received with
source (e.g. name of well, pipeline company) at each receipt point and
throughput delivered at each delivery
point.
(v) The daily average capacity (in
barrels per day) and the actual average
capacity (in barrels per day) for the
most current year, by line section.
(vi) A list of shipments and their associated receipt points, delivery points,
and volumes (in barrels) by type of
product (where applicable) for the most
current year.
(vii) For each primary carrier account, the latest month’s book balances for gross plant and for accumulated reserve for depreciation.
(viii) An estimate of the remaining
life of the system (both gathering and
trunk lines) including the basis for the
estimate.
(ix) For crude oil, a list of the fields
or areas from which crude oil is obtained.
(x) If the proposed depreciation rate
adjustment is based on the remaining
physical life of the properties, a complete, or updated, if applicable, Service
Life Data Form (FERC Form No. 73)
through the most current year.
(xi) Estimated salvage value of properties by account.
[59 FR 59147, Nov. 16, 1994, as amended at 60
FR 358, Jan. 4, 1995; Order 714, 73 FR 57537,
Oct. 3, 2008]

PART 348—OIL PIPELINE APPLICATIONS FOR MARKET POWER DETERMINATIONS
Sec.
348.1 Content of application for a market
power determination.
348.2 Procedures.
AUTHORITY: 42 U.S.C. 7101–7352, 49 U.S.C.
60502; 49 App. U.S.C. 1–85 (1988).

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lpowell on DSK54DXVN1OFR with $$_JOB

Federal Energy Regulatory Commission
§ 348.1 Content of application for a
market power determination.
(a) If, under § 342.4(b) of this chapter,
a carrier seeks to establish that it
lacks significant market power in the
market in which it proposes to charge
market-based rates, it must file and
provide an application for such a determination. An application must include
a statement of position and the information required by paragraph (c) of
this section.
(b) The carrier’s statement of position required by paragraph (a) of this
section must include an executive summary of its statement of position and a
statement of material facts in addition
to its complete statement of position.
The statement of material facts must
include citation to the supporting
statements, exhibits, affidavits, and
prepared testimony.
(c) The carrier must include with its
application the following information:
(1) Statement A—geographic market.
This statement must describe the geographic markets in which the carrier
seeks to establish that it lacks significant market power. The carrier must
include the origin market and the destination market related to the service
for which it proposes to charge marketbased rates. The statement must explain why the carrier’s method for selecting the geographic markets is appropriate.
(2) Statement B—product market. This
statement must identify the product
market or markets for which the carrier seeks to establish that it lacks significant market power. The statement
must explain why the particular product definition is appropriate.
(3) Statement C—the carrier’s facilities
and services. This statement must describe the carrier’s own facilities and
services in the relevant markets identified in statements A and B in paragraphs (c) (1) and (2) of this section.
The statement must include all pertinent data about the pipeline’s facilities
and services.
(4) Statement D—competitive alternatives. This statement must describe
available transportation alternatives
in competition with the carrier in the
relevant markets and other competition constraining the carrier’s rates in
those markets. To the extent available,

§ 348.1
the statement must include all pertinent data about transportation alternatives and other constraining competition.
(5) Statement E—potential competition.
This statement must describe potential
competition in the relevant markets.
To the extent available, the statement
must include data about the potential
competitors, including their costs, and
their distance in miles from the carrier’s terminals and major consuming
markets.
(6) Statement F—maps. This statement
must consist of maps showing the carrier’s principal transportation facilities, the points at which service is rendered under its tariff, the direction of
flow of each line, the location of each
of its terminals, the location of each of
its major consuming markets, and the
location of the alternatives to the carrier, including their distance in miles
from the carrier’s terminals and major
consuming markets. The statement
must include a general system map and
maps by geographic markets. The information required by this statement
may be on separate pages.
(7) Statement G—market power measures. This statement must set forth the
calculation of the market concentration of the relevant markets using the
Herfindahl-Hirschman
Index.
The
statement must also set forth the carrier’s market share based on receipts in
its origin markets and deliveries in its
destination markets, if the HerfindahlHirschman Index is not based on those
factors. The statement must also set
forth the calculation of other market
power measures relied on by the carrier. The statement must include complete particulars about the carrier’s
calculations.
(8) Statement H—other factors. This
statement must describe any other factors that bear on the issue of whether
the carrier lacks significant market
power in the relevant markets. The description must explain why those other
factors are pertinent.
(9) Statement I—prepared testimony.
This statement must include the proposed testimony in support of the application and will serve as the carrier’s
case-in-chief, if the Commission sets
the application for hearing. The proposed witness must subscribe to the

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§ 348.2

18 CFR Ch. I (4–1–16 Edition)

testimony and swear that all statements of fact contained in the proposed
testimony are true and correct to the
best of his or her knowledge, information, and belief.

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[59 FR 59160, Nov. 16, 1994]

§ 348.2 Procedures.
(a) All filings under this part must be
made electronically pursuant to the requirements of §§ 341.1 and 341.2 of this
chapter. A carrier seeking privileged
treatment for all or any part of its filing must submit a request for privileged treatment in accordance with
§ 388.112 of this chapter.
(b) A carrier must provide a copy of
its letter of transmittal and its proposed form of protective agreement to
each shipper and subscriber on or before the day the material is transmitted to the Commission for filing.
(c) A letter of transmittal must describe the market-based rate filing, including an identification of each rate
that would be market-based, and the
pertinent tariffs, state if a waiver is
being requested and specify the statute, section, subsection, regulation,
policy or order requested to be waived.
Letters of transmittal must be certified pursuant to § 341.1(b) of this chapter.
(d) An interested person must make a
written request to the carrier for a
copy of the carrier’s complete application within 20 days after the filing of
the application. The request must include an executed copy of the protective agreement. Any objection to the
proposed form of protective agreement
must be filed under § 385.212 of this
chapter.
(e) A carrier must provide a copy of
the complete application to the requesting person within seven days after
receipt of the written request and an
executed copy of the protective agreement.
(f) A carrier must provide copies as
required by paragraphs (b) and (e) of
this section by first-class mail or by
other means of transmission agreed
upon in writing.
(g) Any intervention or protest to the
application must be filed within 60
days after the filing of the application
and must be filed pursuant to §§ 343.2
(a) and (b) of this chapter. A protest

must also be telefaxed if required by
§ 343.3(a) of this chapter.
(h) A protest filed against an application for a market power determination
must set forth in detail the grounds for
opposing the carrier’s application, including responding to its position and
information and, if desired, presenting
information pursuant to § 348.1(c).
(i) After expiration of the date for filing protests, the Commission will issue
an order in which it will summarily
rule on the application or, if appropriate, establish additional procedures
and the scope of the investigation.
[59 FR 59160, Nov. 16, 1994, as amended by
Order 714, 73 FR 57537, Oct. 3, 2008; Order 769,
77 FR 65475, Oct. 29, 2012]

PART 349—DISPOSITION OF CONTESTED AUDIT FINDINGS AND
PROPOSED REMEDIES
Sec.
349.1 Notice to audited person.
349.2 Response to notification.
349.3 Shortened procedure.
349.4 Form and style.
349.5 Verification.
349.6 Determination.
349.7 Assignment for oral hearing.
AUTHORITY: 42 U.S.C. 7101–7352; 49 U.S.C. 1,
et seq.
SOURCE: Order 675, 71 FR 9708, Feb. 27, 2006,
unless otherwise noted.

§ 349.1 Notice to audited person.
An audit conducted by the Commission or its staff under authority of the
Interstate Commerce Act may result in
a notice of deficiency or audit report or
similar document containing a finding
or findings that the audited person has
not complied with a requirement of the
Commission with respect to, but not
limited to, the following: A filed tariff
or tariffs, contracts, data, records, accounts, books, communications or papers relevant to the audit of the audited person; and the activities or operations of the audited person. The notice of deficiency, audit report or similar document may also contain one or
more proposed remedies that address
findings of noncompliance. Where such
findings, with or without proposed
remedies, appear in a notice of deficiency, audit report or similar document, such document shall be provided

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Federal Energy Regulatory Commission
to the audited person, and the finding
or findings, and any proposed remedies,
shall be noted and explained. The audited person shall timely indicate in a
written response any and all findings
or proposed remedies, or both, in any
combination, with which the audited
person disagrees. The audited person
shall have 15 days from the date it is
sent the notice of deficiency, audit report or similar document to provide a
written response to the audit staff indicating any and all findings or proposed
remedies, or both, in any combination,
with which the audited person disagrees, and such further time as the
audit staff may provide in writing to
the audited person at the time the document is sent to the audited person.
The audited person may move the Commission for additional time to provide
a written response to the audit staff
and such motion shall be granted for
good cause shown. Any initial order
that the Commission subsequently may
issue with respect to the notice of deficiency, audit report or similar document shall note, but not address on the
merits, the finding or findings, or the
proposed remedy or remedies, or both,
in any combination, with which the audited person disagreed. The Commission shall provide the audited person 30
days to respond to the initial Commission order concerning a notice of deficiency, audit report or similar document with respect to the finding or
findings or any proposed remedy or
remedies, or both, in any combination,
with which it disagreed.

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[Order 675–A, 71 FR 29785, May 24, 2006]

§ 349.2 Response to notification.
Upon issuance of a Commission order
that notes a finding or findings, or proposed remedy or remedies, or both, in
any combination, with which the audited person has disagreed, the audited
person may: Acquiesce in the findings
and/or proposed remedies by not timely
responding to the Commission order, in
which case the Commission may issue
an order approving them or taking
other action; or challenge the finding
or findings and/or any proposed remedies with which it disagreed by timely
notifying the Commission in writing
that it requests Commission review by
means of a shortened procedure, or, if

§ 349.4
there are material facts in dispute
which require cross-examination, a
trial-type hearing.
§ 349.3 Shortened procedure.
If the audited person subject to a
Commission order described in § 349.1
notifies the Commission that it seeks
to challenge one or more audit findings, or proposed remedy or remedies,
or both, in any combination, by the
shortened procedure, the Commission
shall thereupon issue a notice setting a
schedule for the filing of memoranda.
The person electing the use of the
shortened procedure, and any other interested entities, including the Commission staff, shall file, within 45 days
of the notice, an initial memorandum
that addresses the relevant facts and
applicable law that support the position or positions taken regarding the
matters at issue. Reply memoranda
shall be filed within 20 days of the date
by which the initial memoranda are
due to be filed. Only participants who
filed initial memoranda may file reply
memoranda. Subpart T of part 385 of
this chapter shall apply to all filings.
Within 20 days after the last date that
reply memoranda under the shortened
procedure may be timely filed, the audited person who elected the shortened
procedure may file a motion with the
Commission requesting a trial-type
hearing if new issues are raised by a
party. To prevail in such a motion, the
audited person must show that a party
to the shortened procedure raised one
or more new issues of material fact relevant to resolution of a matter in the
shortened procedure such that fundamental fairness requires a trial-type
hearing to resolve the new issue or
issues so raised. Parties to the shortened procedure and the Commission
staff may file responses to the motion.
In ruling upon the motion, the Commission may determine that some or
all of the issues be litigated in a trialtype hearing.
§ 349.4 Form and style.
Each copy of such memorandum
must be complete in itself. All pertinent data should be set forth fully, and
each memorandum should set out the
facts and argument as prescribed for
briefs in § 385.706 of this chapter.

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§ 349.5
§ 349.5

18 CFR Ch. I (4–1–16 Edition)
Verification.

§ 349.7

The facts stated in the memorandum
must be sworn to by persons having
knowledge thereof, which latter fact
must affirmatively appear in the affidavit. Except under unusual circumstances, such persons should be
those who would appear as witnesses if
hearing were had to testify as to the
facts stated in the memorandum.
§ 349.6

Determination.

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If no formal hearing is had the matter in issue will be determined by the
Commission on the basis of the facts
and arguments submitted.

Assignment for oral hearing.

Except when there are no material
facts in dispute, when a person does
not consent to the shortened procedure, the Commission will assign the
proceeding for hearing as provided by
subpart E of part 385 of this chapter.
Notwithstanding a person’s not giving
consent to the shortened procedure,
and instead seeking assignment for
hearing as provided for by subpart E of
part 385 of this chapter, the Commission will not assign the proceeding for
a hearing when no material facts are in
dispute. The Commission may also, in
its discretion, at any stage in the proceeding, set the proceeding for hearing.

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