Subject: FW: PIPELINE NOTES, NO. 45
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Date: Sun, 18 Nov 2001 21:00:07 -0800 (PST)

-----Original Message-----
From: Ben Cooper [mailto:[email-masked]]
Sent: Sunday, November 18, 2001 9:45 PM
To: Ben Cooper
Subject: PIPELINE NOTES, NO. 45

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

Association of Oil Pipe Lines
(202) 408-7970
(202) 408-7983 (fax)
[email-masked]

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.

 - PIPELINE NOTES11.16.01.rtf