[Federal Register: November 23, 2004 (Volume 69, Number 225)]
[Proposed Rules]
[Page 68106-68110]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23no04-21]
=======================================================================
-----------------------------------------------------------------------
DEPARMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 157
[Docket No. RM05-1-000]
Regulations Governing the Conduct of Open Seasons for Alaska
Natural Gas Transportation Projects
November 15, 2004.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of Proposed Rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission is proposing to amend
its regulations to establish requirements governing the conduct of open
seasons for proposals to construct Alaska natural gas transportation
projects. These proposed regulations are intended to fulfill the
Commission's responsibilities to issue open season regulations under
section 103 of the Alaska Natural Gas Pipeline Act (the Act), enacted
on October 13, 2004. Section 103(e)(1) of the Act directs the
Commission, within 120 days from enactment of the Act, to promulgate
regulations governing the conduct of open seasons for Alaska natural
gas transportation projects, including procedures for allocation of
capacity. According to section 103(e)(2) of the Act, these regulations
must include the criteria for and timing of any open season, promote
competition in the exploration, development, and production of Alaska
natural gas, and for any open seasons for capacity exceeding the
initial capacity, provide for the opportunity for the transportation of
natural gas other than from the Prudhoe Bay and Point Thomson units.
DATES: Comments are due on December 17, 2004.
ADDRESSES: Comments may be filed electronically via the eFiling link on
the Commission's Web site at http://www.ferc.gov. Commenters unable to
file comments electronically must send an original and 14 copies of
their comments to: Federal Energy Regulatory Commission, Office of the
Secretary, 888 First Street NE., Washington, DC, 20426. Refer to the
Comment Procedures section of the preamble for additional information
on how to file comments.
FOR FURTHER INFORMATION CONTACT: Whit Holden, Office of the General
Counsel, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8089, edwin.holden@ferc.gov.
SUPPLEMENTARY INFORMATION:
Notice of Proposed Rulemaking
I. Introduction
1. The Alaska Natural Gas Pipeline Act became law on October 13,
2004. Under the Act, Congress mandated the expedited processing by the
Commission of any application for an Alaska natural gas transportation
project, namely any natural gas pipeline system that carries natural
gas derived from that portion of Alaska lying north of 64 degrees north
latitude to the border between Alaska and Canada. The new law
recognizes the importance of our Alaskan natural gas resources in
meeting the rapidly rising demand for natural gas in the United States.
The timely development of an Alaska natural gas transportation project
to bring Alaskan natural gas to markets in Alaska and in the lower 48
states will help ensure that the nation has adequate supplies of
natural gas at reasonable prices.\1\ To this end, the Act charges the
Commission with the responsibility of implementing an expedited
approval process consistent with the Act. The Act specifically directs
the Commission to prescribe the rules which will apply to any open
season held for the purpose of soliciting interest in, or making
binding commitments to the acquisition of capacity on, any Alaska
natural gas transportation project, including the criteria for
allocating capacity among competing bidders.
---------------------------------------------------------------------------
\1\ Secretary of Energy Spencer Abraham, in requesting the
National Petroleum Council (NPC) to undertake a study of natural gas
in the United States in the 21st century, sought ``the NPC's advice
on actions that can be taken by industry and Government to increase
the productivity and efficiency of North American natural gas
markets and to ensure adequate and reliable supplies of energy for
consumers.'' The NPC's resulting report found that the solution
includes accessing ``gas resources from previously inaccessible
areas of the United States and gas from the Arctic.'' Balancing
Natural Gas Policy--Fueling the Demands of a Growing Economy, A
Report of the National Petroleum Council, at 7 (Sept. 25, 2003) (NPC
Report).
---------------------------------------------------------------------------
2. To date, it has been the Commission's policy, developed through
its orders and opinions, that all new interstate pipeline construction
be preceded by a non-discriminatory, non-preferential ``open season''
process through which potential shippers may seek and obtain firm
capacity rights. Congress has determined that it is necessary to
supplant Commission policy with specific regulations governing the
conduct of open seasons for an Alaska natural gas transportation
project in order to take into account the tremendous cost, long lead-
time, and environmental sensitivities that are unique to such a
project. In this regard, Congress has emphasized that the Commission's
regulations are to be designed to promote competition in the
exploration, development, and production of Alaska natural gas and, as
to any open season for expansion of the initial capacity of any Alaska
natural gas transportation project, the Commission's regulations are to
specifically provide the opportunity for gas other than Prudhoe Bay and
Point Thomson production to have access to the pipeline.
3. In summary, the Commission sees as its goal the creation of an
open season process that provides non-discriminatory access to capacity
on any Alaska natural gas transportation project while, at the same
time, ensuring sufficient economic certainty to support the
construction of the pipeline and
[[Page 68107]]
thereby provide a stimulus for exploration, development and production
of Alaska natural gas.
4. Congress has also given the Commission the statutory authority
to require an expansion of an Alaska natural gas transportation project
to address the circumstance where additional capacity is required but
the pipeline owners have not committed to expand the system on a timely
basis. Consequently, section 105(a) of the Act authorizes the
Commission, upon the request of one or more persons, and upon the
satisfaction of certain statutory criteria, to order the expansion of
any Alaska natural gas transportation project. Section 105(e)
authorizes the Commission to issue such regulations as are necessary to
fulfill this responsibility. While the Commission may issue such
regulations in the future, the regulations which are the subject of
this rulemaking pertain solely to open seasons for initial capacity or
expansion capacity other than expansion capacity ordered pursuant to
section 105 of the Act.
II. Summary of Proposed Regulations
5. Proposed section 157.30 sets out the purpose of Subpart B. That
purpose is to prescribe rules for the conduct of any open season on any
Alaska natural gas transportation project. Section 103(e)(2) of the Act
provides that these regulations must include the criteria for and
timing of any open season, promote competition in the exploration,
development, and production of Alaska natural gas, and, for any open
seasons for capacity exceeding the initial capacity, provide for the
opportunity for the transportation of natural gas other than from the
Prudhoe Bay and Point Thomson units.\2\
---------------------------------------------------------------------------
\2\ The Prudhoe Bay and Point Thomson units are gas fields
located on Alaska's North Slope with a total of approximately 35 Tcf
of known gas reserves.
---------------------------------------------------------------------------
6. Proposed section 157.31 defines the terms ``Alaska natural gas
transportation project'' and ``Commission'' consistent with definitions
provided in the Act.
7. Proposed section 157.32 provides that regulations proposed will
apply to any application to the Commission for a certificate of public
convenience and necessity or other authorization for an Alaska natural
gas transportation project, whether filed pursuant to the Natural Gas
Act, the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719
et seq.), or the Alaska Natural Gas Pipeline Act, and to applications
for expansion of such projects, other than expansions of Alaska natural
gas transportation projects that are requested and ordered pursuant to
section 105 of the Act.
8. Although the Commission is authorized in section 105(e) to issue
regulations governing expansions requested under section 105(a), that
authorization is separate from the authority granted the Commission in
section 103(e) to issue regulations for open seasons. Moreover, the
Commission is directed to issue the section 103(e) regulations within
120 days from the date of issuance of the Act, whereas the Commission
is not under any time constraints in considering the need for any
regulations to carry out its responsibilities under section 105.
Therefore, the Commission is focusing solely on those issues relevant
to open seasons under section 103 of the Act at this time. However, the
proposed section 157.32 leaves open the possibility that the
requirements of this subpart might, in a given case, have application
or be suited to an expansion ordered under section 105 of the Act.
9. Proposed section 157.33 requires that any application for a
certificate of public convenience and necessity for a proposed Alaska
natural gas transportation project include a showing that the applicant
conducted an open season for capacity on its proposed project that
fully complies with the requirements of this subpart. To ensure
compliance with this requirement, proposed section 157.33 provides that
any application lacking such a showing will be dismissed as deficient.
10. Proposed section 157.34 sets forth the criteria for and timing
of any open season for an Alaska natural gas transportation project.
Proposed section 157.34(a) provides for public notice of an open season
at least 30 days prior to the commencement of the open season through
methods including postings on Internet websites, press releases, direct
mail solicitations, and other advertising. The Commission believes that
such prior notice would serve several purposes. First, it would reduce,
if not eliminate, any advantage that one potential shipper might have
as a result of prior knowledge of the open season. Second, it would
afford both project sponsors and prospective shippers a period of time
prior to the actual open season period in which they can address and
possibly resolve any questions or problems regarding the terms and
conditions of the open season. Third, it would afford potential
shippers time to prepare submissions in response to the open season.
11. Proposed section 157.34(b) lists the information that any
notice of open season for an Alaska natural gas transportation project
must contain. The Commission recognizes in this section that a
potential applicant for an Alaska natural gas transportation project
might find it necessary or appropriate to initiate an open season
before some of the information can be determined. Indeed, the
Commission understands that in a given situation, such information
cannot be reasonably determined until after an open season is held. The
Commission can envision, for instance, a situation where a prospective
project sponsor might first conduct a non-binding open season as a
manner of gathering information and assessing demand, on the basis of
which the sponsor would then be able to conduct a second, binding open
season containing information sufficiently detailed to permit
prospective shippers to enter into binding precedent agreements.
12. The proposed list of information contained in proposed section
157.34(b) is intentionally inclusive. In this area, as well as others,
the Commission is soliciting comments received in response to this
Notice of Proposed Rulemaking to fashion a final rule that meets the
Commission's goal which is, as stated above, to create an open season
process that provides non-discriminatory access to capacity on any
Alaska natural gas transportation project while, at the same time,
ensuring sufficient economic certainty to support the construction of
the pipeline and thereby provide a stimulus for exploration,
development and production of Alaska natural gas.
13. Proposed section 157.34(c) provides that an open season for an
Alaska natural gas transportation project must remain open for a period
of at least 90 days. This minimum 90-day period for prospective
shippers to examine the open season materials and make service requests
to the pipeline is intended to establish some parity among shippers,
given that certain shippers, primarily the ``anchor shippers,'' \3\ may
have had advance information relating to the pipeline's proposed
services, tariff provisions, and cost projections. Ninety days is
proposed as an adequate amount of time in which to conduct a reasoned
evaluation of the open season materials and to help level the playing
field. The Commission considers this provision essential to ensuring
that the Commission's regulations promote competition in the
exploration,
[[Page 68108]]
development, and production of Alaska natural gas.
---------------------------------------------------------------------------
\3\ ``Anchor shipper(s)'' as used in the natural gas industry
means one or a very few shippers with very large, significant
volumes of natural gas that will fully financially support the
initial design and cost of a project.
---------------------------------------------------------------------------
III. Public Comment and Expedited Procedures
14. The Act mandates that the Commission issue regulations
implementing the open season requirements within 120 days of the date
of its enactment. Congress and the Commission consider the promulgation
of these regulations to be a matter of critical importance to the
construction and development of, and access to, an Alaska natural gas
transportation project. Therefore, the Commission intends to promulgate
final regulations by February 10, 2005. To that end, public comments on
this notice are due on December 17, 2004. The Commission will carefully
weigh and consider all public comments received.
15. In addition to seeking comments on the proposed rules contained
herein, the Commission seeks comments on the following questions:
(1) Should the Commission require that prospective applicants for
Alaska natural gas transportation projects, before conducting open
seasons, file with the Commission proposals for how the open seasons
will be conducted? If so, should the proposals be filed for notice and
comment, or for a decision or pre-determination by the Commission that
such proposals conform to the regulations? What other procedures are
suitable to facilitate the expeditious resolution of objections or
concerns regarding any open season for an Alaska natural gas
transportation project?
(2) Should the Commission issue regulations now, pursuant to
section 105 of the Alaska Natural Gas Pipeline Act, with respect to the
Commission's authority to require expansion of any Alaska natural gas
transportation project? If so, should those regulations deal with the
rate treatment (rolled-in or incremental) of any such expansion?
(3) Should the Commission allow pre-subscribed, reserved capacity
such as was allowed in connection with open seasons for certain new
Outer Continental Shelf pipeline facilities? See, e.g., Garden Banks
Gas Pipeline, LLC, 78 FERC ] 61,066 (1997); Green Canyon Pipe Line Co.,
47 FERC ] 61,310 (1989)?
(4) Congress has made expressly clear that the open season rules
must promote competition in the exploration, development, and
production of Alaska natural gas. Commenters are invited to discuss
whether, and to what extent, any tension may exist between this
mandated purpose and the application of existing Commission policies to
the open season rules due to circumstances unique to access to capacity
on any Alaska natural gas transportation project.
(5) To what extent should the Commission's open season regulations
address the issues of tying the receipt of capacity on any Alaska
natural gas transportation project to ancillary services involving the
treatment of gas to meet specified gas quality requirements or
allocating capacity at a gas treatment plant or other facility?
IV. Information Collection Statement
16. The Office of Management and Budget (OMB) regulations require
that OMB approve certain reporting, record keeping, and public
disclosure (collections of information) imposed by an agency.\4\ The
following information collection requirements contained in this
proposed rule are being submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the Paperwork
Reduction Act of 1995.\5\ FERC identifies the information disclosed
under Part 157 as FERC-537. The Commission has submitted this
information collection to OMB for review and clearance under emergency
processing procedures.\6\ OMB approval has been requested by December
31, 2004.
---------------------------------------------------------------------------
\4\ 5 CFR 1320.11.
\5\ 44 U.S.C. 3507(d).
\6\ 5 CFR 1320.13.
---------------------------------------------------------------------------
17. Comments are solicited on the Commission's need for this
information, whether the information will have practical utility, the
accuracy of the provided burden estimates, ways to enhance the quality,
utility, and clarity of the information to be collected, and any
suggested methods for minimizing respondent's burden, including the use
of automated information techniques. The burden estimates for complying
with this rule are as follows:
----------------------------------------------------------------------------------------------------------------
Number of Number of Hours per Total annual
Data collection respondents responses response hours
----------------------------------------------------------------------------------------------------------------
FERC-537........................................ 30 1 80 2400
-----------------
Totals...................................... .............. .............. .............. 2400
----------------------------------------------------------------------------------------------------------------
Total Annual Hours for Collection: 2400 hrs. These are mandatory
information collection requirements.
Information Collection Costs: The Commission seeks comments on the
cost to comply with these requirements. It has projected the average
annualized cost for all respondents to be $139,000 (2400 x $58.00).
Title: FERC-537 ``Gas Pipeline Certificates: Construction,
Acquisition and Abandonment.''
Action: Proposed Information Collection.
OMB Control Nos.: 1902-0060. The applicant shall not be penalized
for failure to respond to this collection of information unless the
collection of information displays a valid OMB control number.
Respondents: Business or other for profit.
Frequency of Responses: One-time implementation.
Necessity of Information: On October 13, 2004, Congress enacted the
Alaska Natural Gas Pipeline Act. Section 103(e)(1) of the Act directs
the Commission to issue regulations within 120 days from the enactment
of the Act. Congress and the Commission consider the issuance of these
regulations to be of critical importance to the construction and
development of and access to Alaska natural gas transportation
projects. The Commission must issue a final rule by February 10, 2005.
The Commission seeks emergency processing of this proposed information
collection because the use of normal clearance procedures is reasonably
likely to cause a statutory ordered deadline to be missed. The proposed
rule revises the reporting requirements contained in 18 CFR Part 157.
Specifically, the Alaska Natural Gas Pipeline Act authorized the
Commission to expedite application for any natural gas transportation
projects that carries gas derived from that portion of Alaska lying
north of 64 degree north latitude to the border between Alaska and
Canada. Specifically, the Commission is proposing rules to establish
open seasons to accept bids for capacity on any Alaska natural gas
transportation project. The Alaska Natural Gas Pipeline Act regulations
must (1) include the
[[Page 68109]]
criteria for and timing of any open season, (2) promote competition in
the exploration, development and production of Alaska natural gas, and
(3) for any open seasons for capacity exceeding the initial capacity,
provide for the opportunity for the transportation of natural gas other
than from Prudhoe Bay and Point Thomson.
Internal Review: The Commission has assured itself, by means of
internal review, that there is specific, objective support for the
burden estimates associated with the information requirements. The
Commission's Office of Energy Projects will review the data included in
the application to determine whether the proposed facilities are in the
public interest as well as for general industry oversight. This
determination involves, among other things, an examination of adequacy
of design, cost, reliability, redundancy, safety and environmental
acceptability of the proposed facilities. These requirements conform to
the Commission's plan for efficient information collection,
communication and management within the natural gas industry.
18. Interested persons may obtain information on the reporting
requirements by contacting the Commission, as follows: Federal Energy
Regulatory Commission, 888 First Street, NE, Washington, D.C. 20426
(Attention: Michael Miller, Office of the Executive Director, 202-502-
8415, fax: 202-273-0873), e-mail: michael.miller@ferc.gov.
19. For submitting comments concerning the collection of
information and the associated burden estimate(s)s including
suggestions for reducing this burden, please send your comments to the
contact listed above and to the Office of Management and Budget, Room
10202 NEOB, 725 17th Street, NW., Washington, DC 20503 (Attention: Desk
Officer for the Federal Energy Regulatory Commission, 202-395-4650,
fax: 202-395-7285).
V. Environmental Analysis
20. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\7\ No
environmental consideration is raised by the promulgation of a rule
that is procedural in nature or does not substantially change the
effect of legislation or regulations being amended.\8\ The proposed
rule establishes requirements governing the conduct of open seasons for
proposals to construct Alaska natural gas transportation projects and
does not substantially change the effect of the underlying legislation
or regulations being revised.
---------------------------------------------------------------------------
\7\ Order No. 486, Regulations Implementing the National
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. &
Regs. Preambles 1986-1990 ] 30,783 (1987).
\8\ 18 CFR 380.4(a)(2)(ii) (2004).
---------------------------------------------------------------------------
VI. Regulatory Flexibility Act Statement
21. The Regulatory Flexibility Act of 1980 (RFA) \9\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The Commission is not required to make such an analysis if a rule would
not have such an effect.
---------------------------------------------------------------------------
\9\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
22. The Commission concludes that this rule would not have such an
impact on small entities. Most companies regulated by the Commission do
not fall within the RFA's definition of a small entity.\10\
---------------------------------------------------------------------------
\10\ 5 U.S.C. 601(3), citing to section 3 of the Small Business
Act, 15 U.S.C. 623. Section 3 of the Small Business Act defines a
``small-business concern'' as a business which is independently-
owned and operated and which is not dominant in its field of
operation.
---------------------------------------------------------------------------
VII. Comment Procedures
23. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due on December 17, 2004. Comments must refer
to Docket No.RM05-1 and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments. Comments may be filed either in electronic or paper format.
24. Comments may be filed electronically via the eFiling link on
the Commission's web site at http://www.ferc.gov. The Commission
accepts most standard word processing formats and commenters may attach
additional files with supporting information in certain other file
formats. Commenters filing electronically do not need to make a paper
filing. Commenters that are not able to file comments electronically
must send an original and 14 copies of their comments to: Federal
Energy Regulatory Commission, Office of the Secretary, 888 First Street
NE., Washington, DC, 20426.
25. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VIII. Document Availability
26. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m.
eastern time) at 888 First Street, NE., Room 2A, Washington DC 20426.
27. From FERC's Home Page on the Internet, this information is
available in the Commission's document management system, eLibrary. The
full text of this document is available on eLibrary in PDF and
Microsoft Word format for viewing, printing, and/or downloading. To
access this document in eLibrary, type the docket number excluding the
last three digits of this document in the docket number field.
28. User assistance is available for eLibrary and the FERC's Web
site during normal business hours. For assistance, please contact FERC
Online Support at 1-866-208-3676 (toll free) or 202-502-6652 (e-mail at
FERCOnlineSupport@FERC.gov), or the Public Reference Room at 202-502-
8371, TTY (202) 502-8659 (e-mail at public.referenceroom@ferc.gov).
List of Subjects in 18 CFR Part 157
Administrative practice and procedure; Natural gas; Reporting and
recordkeeping requirements.
By direction of the Commission.
Magalie R. Salas,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
Part 157, Chapter I, Title 18, Code of Federal Regulations, as follows.
PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND
NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER
SECTION 7 OF THE NATURAL GAS ACT
1. The authority citation for part 157 continues to read as
follows:
Authority: 15 U.S.C. 717-717w.
2. Subpart B is added to Part 157 to read as follows:
Subpart B--Open Seasons for Alaska Natural Gas Transportation Projects
Sec.
157.30 Purpose.
157.31 Definitions.
[[Page 68110]]
157.32 Applicability.
157.33 Requirement for open season.
157.34 Notice of open season.
157.35 Capacity allocation.
157.36 Open season for expansion.
Subpart B--Open seasons for Alaska Natural Gas Transportation
Projects
Sec. 157.30 Purpose.
This subpart establishes the procedures for conducting open seasons
for Alaska natural gas transportation projects, as defined herein.
Sec. 157.31 Definitions.
(a) ``Alaska natural gas transportation project'' means any natural
gas pipeline system that carries Alaska natural gas to the border
between Alaska and Canada (including related facilities subject to the
jurisdiction of the Federal Energy Regulatory Commission).
(b) ``Commission'' means the Federal Energy Regulatory Commission.
Sec. 157.32 Applicability.
These regulations shall apply to any application to the Commission
for a certificate of public convenience and necessity or other
authorization for an Alaska natural gas transportation project, whether
filed pursuant to the Natural Gas Act, the Alaska Natural Gas
Transportation Act of 1976, or the Alaska Natural Gas Pipeline Act, and
to applications for expansion of such projects. Absent a Commission
order to the contrary, these regulations are not applicable in the case
of an expansion ordered by the Commission pursuant to section 105 of
the Alaska Natural Gas Pipeline Act.
Sec. 157.33 Requirement for open season.
Any application for a certificate of public convenience and
necessity for a proposed Alaska natural gas transportation project must
include a demonstration that the applicant has conducted an open season
for capacity on its proposed project, in accordance with the
requirements of this sub-part. Failure to provide the requisite
demonstration will result in an application being dismissed as
deficient.
Sec. 157.34 Notice of open season.
(a) Notice. A prospective applicant must provide reasonable public
notice of an open season, at least 30 days prior to the commencement of
the open season, through methods including postings on Internet
websites, press releases, direct mail solicitations, and other
advertising. In addition, a prospective applicant must provide actual
notice of an open season to the State of Alaska and to the Federal
Coordinator for Alaska Natural Gas Transportation Projects.
(b) Contents of Notice. Notice of the open season shall contain at
least the following information, to the extent that such information is
known or determined at the time the notice is issued:
(1) The general route of the proposed project, including receipt
and delivery points, and any alternative routes under consideration;
(2) Size and design capacity (including proposed certificate
capacity to the extent that it differs from design capacity), and any
estimated phase-in dates for capacity beyond initial capacity;
(3) Maximum allowable operating pressure and expected actual
operating pressure;
(4) Delivery pressure;
(5) Projected in-service date;
(6) An estimated unbundled transportation rate, stated on an MMBtu
basis, for each service offered, including reservation rates for
pipeline capacity, interruptible transportation rates, usage rates,
fuel retention percentages, and other applicable charges, or
surcharges, such as annual charge adjustment (ACA);
(7) The estimated costs of proposed facilities and cost of service,
and expected return on equity used to justify the transportation rates;
(8) Negotiated rate and other rate options under consideration;
(9) Quality specifications and any other requirements applicable to
gas to be delivered to the project;
(10) Terms and conditions for each service offered;
(11) Creditworthiness standards to be applied to prospective
shippers;
(12) The date, if any, by which potential shippers and the
prospective applicant must execute precedent agreements;
(13) A detailed methodology for determining the value of bids;
(14) The methodology by which capacity will be awarded, in the case
of over-subscription, clearly stating all terms that will be
considered, including price and contract term;
(15) Required bid information, whether bids are binding or non-
binding, receipt and delivery point requirements, the form of a
precedent agreement and time of execution, definition and treatment of
non-conforming bids;
(16) The projected date for filing an application with the
Commission; and
(17) All other information that may be relevant to the open season,
including information pertaining to the proposed service to be offered,
projected pipeline capacity and design, proposed tariff provision, and
cost projections, made available to or in the hands of any potential
shipper, including any affiliates of the project sponsor and any
shippers with pre-subscribed capacity, prior to the issuance of the
public notice of open season.
(c) Timing. A prospective applicant must provide prospective
shippers at least 90 days from the date on which notice of the open
season is given within which to submit requests for transportation
services.
Sec. 157.35 Capacity allocation.
Capacity allocated as a result of any open season shall be awarded
without undue discrimination or preference of any kind.
Sec. 157.36 Open seasons for expansions.
Any open season for capacity exceeding the initial capacity of an
Alaska natural gas transportation project must provide the opportunity
for the transportation of gas other than Prudhoe Bay or Point Thomson
production.
[FR Doc. 04-25933 Filed 11-22-04; 8:45 am]
BILLING CODE 6717-01-P