PIPELINE NOTES FROM WASHINGTON
Vol. 4, No. 45
November 16, 2001

Association of Oil Pipe Lines
(202) 408-7970
(202) 408-7983 (fax)
bcooper@aopl.org

The opinions if any expressed in these notes are the author’s only and do not represent the views of the Association of Oil Pipe Lines (but they should).

 1.	Congressional Republicans Plan to Push Energy Stalls 

The expected move by Senate Republicans to offer H.R.4, the House–passed energy bill, as an amendment to the Senate’s version of economic stimulus legislation stalled this week, and the stimulus package itself was put off until Congress returns after Thanksgiving.  It became known that Majority Leader Trent Lott (R-MS) would not support any amendments that would delay the stimulus legislation.  Bush Administration Office of Management and Budget Director Mitchell Daniels offered the opinion that the Senate should develop its own energy bill and dismissed H.R.4 as “essentially a tax relief bill”.  We still expect negotiations to be concluded on terms for addressing energy legislation in the Senate next February, but it is less clear when the agreement will be reached.  And we still expect the Senate to add the McCain pipeline safety bill to its energy legislation when it does take up the subject, thereby bringing the pipeline safety issue before the House in a perhaps more compelling way than heretofore. Meanwhile, key House Members continue working on pipeline safety legislation, but nothing new has been introduced in the form of a bill in the House and no drafts have been released for comment.   We are urging these House members to put something out around which we can rally.  With Congress gone for Thanksgiving week, we have just have to wait to see if anything like this will happen this year.

2.	Transportation Appropriations to Move

Meanwhile we expect the Transportation Appropriations conference to reconvene soon after Congress returns, resolve the Mexican truck issue that has been holding things up and pass a bill that will include significantly increased funding for the Office of Pipeline Safety relative to the current level.  A copy of the House and Senate bills and Committee reports can be accessed at http://thomas.loc.gov/home/approp/appover.html.  Scroll down to Transportation, H.R.2299.  

3.	OPS Interview Draws Favorable Austin American-Statesman Editorial 

	Office of Pipeline Safety head Stacey Gerard was interviewed by the Austin American-Statesman last week.  The interview apparently did some good because in an editorial on November 13 the American-Statesman concluded “The assurance of Stacey Gerard that her agency is ‘working hard on a number of fronts’ is encouraging.  The director’s small agency, located in the Department of Transportation, appears ready to do a better job.  Congress should provide encouragement and funding.  The regulated industry should cooperate.  Citizens should be watchful.”  See http://www.austin360.com/auto_docs/epaper/editions/tuesday/editorial_3.html -- Pipelines require caution two ways

4.	Speculation on Regulation of Gathering Lines

From the same interview, speculation on prospects for regulating gathering lines:   http://www.austin360.com/statesman/editions/today/news_1.html -- Comprehensive regulation unlikely for rural pipelines  

5.	Commission Expands Electronic Filing Options

	With the current anthrax scare and the related disruption to Washington, DC mail service, Chairman Wood has asked Chief Information Office Fernanda Young to accelerate the Federal Energy Regulatory  Commission’s electronic filing effort.  CIO Young has responded, with a notice issued late Friday significantly expanding the list of documents that will be accepted with electronic filing.  Among these are motions, answers to motions, requests for rehearing, settlement comments, requests for production and production of documents and answers to complaints.  One of the few documents that must still be filed in hard copy is a complaint.  For more on the Commission’s initiative, see the Friday order at http://cips.ferc.gov/Q\CIPS\RULES\RM\RM00-12.00D.TXT.  The User’s Guide on electronic filing may be accessed at www.ferc.gov using the E-Filing link.

6.	FERC Schedules Olympic for Consideration

	The Federal Energy Regulatory Commission agenda for its meeting of November 20, 2001 indicates that it plans to take up Tosoro’s request to suspend Olympic Pipe Line’s cost-of-service rates for a full seven months (docket number IS01-441-002).   The Commission had suspended the rates for one day and then allowed them to go into effect subject to refund.  We will let you know what the Commission decides to do.

7.	Calnev Asks for Rehearing

	Calnev this week asked the Commission to look again at its October 15 order stating the complainant ARCO does not need to allege reasonable grounds for asserting that the rate increase is so out of line with actual cost increases as to be unjust and unreasonable (i.e. rule 343.2(c)(1)).  Calnev believes that is the very test that needs to be met.  It also points out that the Commission’s recent order in SFPP (docket number OR92-8-012, http://rimsweb1.ferc.gov/rims.q?rp2~rimsdocinfo~2222355) merely confuses things further by adding a cost-of-service measure that was not there previously.
In the alternative, Calnev asks the Commission to clarify its standards of pleading and proof for challenging (i) rates grandfathered under EPAct; (2) rate increases resulting from indexing; and (3) increases above the grandfathered level adopted prior to indexing.  A copy of the Calnev request can be found at http://rimsweb1.ferc.gov/rims.q?rp2~rimsdocinfo~2223723.  The docket number is OR01-8-001.

8.	FERC Changes Web Links

	The Commission has retired its old website and will now only use the website at www.ferc.gov.   This change also affects our regularly used links to CIPS and to RIMS.  The new link to the Commission Issuance Posting System is http://cips.ferc.gov/cips/default.htm.  The Remote Information Management System is now accessible at http://rimsweb1.ferc.gov/rims.q?rp2~intro. 

9.	Longhorn Opposition Results in a Study

http://www.austin360.com/statesman/editions/today/news_14.html -- Texas lawmakers ordered to study pipeline issues

10.	CEQ Sends Inquiry to FERC

	As many of you know, the Council on Environmental Quality is looking at ways to streamline permitting for energy projects.   Last month, they collected suggestions from the public on energy projects that might benefit from their oversight.  Colonial Pipeline brought to their attention the Colonial expansion project into Tennessee.  Last week, the CEQ sent an inquiry to the FERC, probably among other affecting agencies, asking the FERC to identify any unresolved issues related to the project and FERC contacts.  A copy of the CEQ request can be found at http://rimsweb1.ferc.gov/rims.q?rp2~getImagePages~2222806~46~3~1~50. 

11.	EPA Publishes Boutique Fuels White Paper

	The EPA announced in the Federal Register of November 14, 2001 the availability of its study on the impact of boutique fuels on product supply and its proposal to smooth the seasonal transition in fuel types.  The EPA is seeking comments on this document through December 31, 2001.  You may find a copy of the EPA notice at page 57099 at http://www.access.gpo.gov/su_docs/fedreg/a011114c.html or on the EPA website at http://www.epa.gov/otaq/fuels.htm.