[Federal Register: July 2, 2009 (Volume 74, Number 126)]
[Proposed Rules]
[Page 31675-31686]
[DOCID:fr02jy09-17]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Parts 191, 192, 193, and 195

[Docket No. PHMSA-2008-0291]
RIN 2137-AE33

Pipeline Safety: Updates to Pipeline and Liquefied Natural Gas
Reporting Requirements

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
Department of Transportation (DOT).

ACTION: Notice of proposed rulemaking.

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SUMMARY: This Notice of Proposed Rulemaking seeks to revise the
Pipeline Safety Regulations to improve the reliability and utility of
data collections from operators of natural gas pipelines, hazardous
liquid pipelines, and liquefied natural gas (LNG) facilities. These
revisions will enhance PHMSA's ability to: understand, measure, and
assess the performance of individual operators and industry as a whole;
integrate pipeline safety data to allow a more thorough, rigorous, and
comprehensive understanding and assessment of risk; and expand and
simplify existing electronic reporting by operators. These revisions
will improve both the data and the analyses PHMSA relies on to make
critical, safety-related decisions, and will facilitate PHMSA's
allocation of inspection and other resources based on a more accurate
accounting of risk.

DATES: Submit comments by August 31, 2009.

ADDRESSES: Comments should reference Docket No. PHMSA-2008-0291 and may
be submitted in the following ways:
     E-Gov Web Site: http://www.regulations.gov. This Web site
allows the public to enter comments on any Federal Register notice
issued by any agency. Follow the instructions for submitting comments.
     Fax: 1-202-493-2251.
     Mail: Docket Management System: U.S. Department of
Transportation, Docket Operations, M-30, Room W12-140, 1200 New Jersey
Avenue, SE., Washington, DC 20590-0001.
     Hand Delivery: DOT Docket Management System, West Building
Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC
20590-0001 between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays.
    Instructions: If you submit your comments by mail, submit two
copies. To receive confirmation that PHMSA received your comments,
include a self-addressed stamped postcard.

    Note: Comments are posted without changes or edits to http://
www.regulations.gov, including any personal information provided.
There is a privacy statement published on http://
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Roger Little by telephone at (202)
366-4569 or by electronic mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Objective

    PHMSA is seeking to improve the use of incident, infrastructure,
and performance data in its approaches to improve pipeline safety. As
part of PHMSA's strategy to become a more risk-based and data-driven
organization, PHMSA is proposing the following general data and data
management improvements to the pipeline safety regulations:
    1. Modify the scope of part 191 addressed in 49 CFR 191.1 to
reflect the changes made in the scope of part 192 to the definition of
gas gathering lines.
    2. Change the definition of an ``incident'' in 49 CFR 191.3 to
require an operator to report an explosion or fire not intentionally
set by the operator. The proposal also establishes a volumetric basis
for reporting unexpected or unintentional gas loss. These reporting
changes will more accurately depict the safety performance of gas
pipelines over time.
    3. Require operators to report and file data electronically
whenever possible. The electronic submission of data will increase the
accuracy and quality of data collected which, in turn, will improve
PHMSA's data integration efforts. Electronic submission will also
reduce the reporting burden on operators.
    4. Require operators of LNG facilities to submit incident and
annual reports. This data will provide valuable infrastructure
information to PHMSA,

and allow for a more thorough evaluation of the safety performance of
LNG facilities.
    5. Create and require participation in a National Registry of
Pipeline and LNG Operators. This data will provide PHMSA with timely
updates on significant and potential safety-impacting changes occurring
under its purview, and help PHMSA to better monitor and assess operator
performance.
    6. Require operators to use a standard form in electronically
submitting Safety-Related Condition Reports and Offshore Pipeline
Condition Reports. This will ensure consistency of data submitted
across the pipeline industry.
    7. Merge the natural gas transmission integrity management Semi-
Annual Performance Measures Report with the annual reports. Revise the
leak cause categories listed in the annual report to include those nine
categories listed in ASME B31.8S. This change will significantly reduce
the reporting burden on operators by changing the current semi-annual
requirement. Expand information on the natural gas transmission annual
report to add information for miles of gathering lines by Type A and
Type B gathering; class location information by SMYS, volume of
commodity transported, and type of commodity transported.
    8. Modify hazardous liquid operator telephonic notification of
accidents to require operators to have and use a procedure to calculate
and report a reasonable initial estimate of released product and to
provide an additional telephonic report to the National Response Center
if significant new information becomes available during the emergency
response phase.
    9. Require operators of hazardous liquid pipelines to submit
pipeline information by State on the annual report for hazardous liquid
pipelines. This data will allow PHMSA to improve its allocation of
inspection and other resources through a better understanding of the
infrastructure it regulates.
    10. Remove obsolete provisions that would conflict with the
proposal to require electronic submission of all reports and update OMB
control numbers for information collections.
    11. Update OMB control numbers assigned to information collections.

II. Background

    The statutory authority under 49 U.S.C. 60101 et seq. authorizes
this proposal; these Federal Pipeline Safety Laws grant broad authority
to the Pipeline and Hazardous Material Safety Administration to
regulate pipeline safety. The proposed data collection and filing
requirement revisions are wholly consistent with Section 15 of the
PIPES Act of 2006 (Pub. L. 109-468, December 26, 2006), which requires
PHMSA to review and modify the reporting criteria as appropriate to
ensure that the data accurately reflects trends over time.
    For natural gas pipeline operators specific reporting requirements
in 49 CFR Part 191 are found at:
     Sec.  191.5 telephonic notice of certain incidents.
     Sec.  191.7 Addresses for written reports.
     Sec.  191.9 Natural gas distribution incident report.
     Sec.  191.11 Natural gas distribution annual report.
     Sec.  191.15 Natural gas transmission and gathering
incident report.
     Sec.  191.17 Natural gas transmission and gathering annual
report.
     Sec.  191.23 Reporting safety-related conditions.
     Sec.  191.25 Filing safety-related condition reports.
     Sec.  191.27 Filing offshore pipeline condition reports.
    The requirement for reporting leaks and spills of LNG in accordance
with Part 191 is found at Sec.  193.2011. Part 191 excludes LNG from
many of the reporting requirements.
    For hazardous liquid pipeline operators specific reporting
requirements in 49 CFR Part 195 are found at:
     Sec.  195.49 Annual report.
     Sec.  195.50 Reporting accidents.
     Sec.  195.52 Telephonic notice of certain accidents.
     Sec.  195.54 Accident reports.
     Sec.  195.55 Reporting safety-related conditions.
     Sec.  195.56 Filing safety-related condition reports.
     Sec.  195.57 Filing offshore pipeline condition reports.
     Sec.  195.58 Address for written reports.
    As the Nation's repository for pipeline data, PHMSA's data is used
not only by PHMSA, but by State pipeline safety programs; congressional
committees; metropolitan planners; civic associations and other local
community groups; pipeline research organizations; industry safety
experts; industry watch groups; the media; the public; industry trade
associations; industry consultants; and members of the pipeline and
energy industries. A significant amount of critical safety information
is cultivated from PHMSA's data through statistical analysis and
information retrieval. One of the agency's most valued assets is the
data it collects, maintains, and analyzes pertaining to the industry.
PHMSA is responsible for maintaining the most comprehensive collection
of accident/incident data for intrastate and interstate pipelines in
the country. PHMSA is subject to constant and continued interest and
scrutiny by numerous and varied stakeholders for the reliability,
utility, and applicability of information and statistics pertaining to
pipelines and LNG facilities, including the collection, tracking, and
retrieval of historical data. PHMSA, therefore, must periodically
modify its information and data collections and associated processes to
address changes in industry business practices, changes in PHMSA's
regulations, and changes in PHMSA's own data analysis strategies and
objectives.
    As an example of one such needed change, LNG operators are
currently exempt from annual and incident reporting requirements,
whereas the operators of gas transmission, gas distribution, and
hazardous liquid pipelines are required to report summary data annually
and any incidents or accidents that meet reporting requirements
specified in pipeline safety regulations. Given the increased number of
LNG plants under construction, along with the understandable desire for
PHMSA to better monitor the safety performance of this critical portion
of the nation's energy infrastructure, this proposal removes the
existing exemption for this reporting for operators of LNG facilities.
    This proposed rule also supports PHMSA's strategic objectives aimed
at risk reduction and the continuous improvement of the integrity of
the nation's pipeline systems. The data collection improvements
proposed in this proposed rule will enhance PHMSA's standing analytical
capability and strengthen PHMSA's understanding of risk, all based on
sound data. PHMSA will use the data to help drive program priorities
and resource decisions, improve the ability to detect emerging risks,
and focus prevention activities.

III. Petitions for Rulemaking and Recommendations

Petition for Rulemaking

    On November 7, 2005, the Interstate Natural Gas Association of
America (INGAA) submitted a Petition for Rulemaking asking PHMSA to
change the definition of an incident to adequately provide a method to
normalize skewing due to inflationary price increases of gas lost.
INGAA asserted that the practical effect of the cost based reporting
threshold has skewed the number of incidents

reported upwards as the cost of natural gas has continued to rise.
    Under the current definition, a reportable incident includes
estimated property damage, including cost of gas lost, of the operator
or others, or both, of $50,000 or more (49 CFR 191.3). In its petition,
INGAA asserts that the current definition effectively froze the dollar
amount of the cost of an incident to 1984/1985 levels. Therefore, INGAA
claims that, although less gas is being released, more incidents are
being reported because the price of gas has escalated over time. INGAA
recommended PHMSA establish a volume-based threshold for a reportable
incident. A copy of the petition is in the docket.

Recommendations

    This proposed rule also responds to various Government
Accountability Office (GAO) and National Transportation Safety Board
(NTSB) recommendations. In GAO's report, entitled ``Natural Gas
Pipeline Safety: Integrity Management Benefits Public Safety, but
Consistency of Performance Measure Should Be Improved,'' (GAO-06-946,
September, 2006), GAO stated that the current gas incident reporting
requirements do not adjust for the changing cost of gas released in
incidents. GAO recommended that PHMSA ``revise the definition of a
reportable incident to consider changes in the price of natural gas.''
    In this report GAO also recommended PHMSA revise reporting of
performance measures for the integrity management programs to measure
the impact of the program. GAO recommended that PHMSA improve the
measures related to incidents, leaks, and failures to compare
performance over time and make the measures more consistent with other
pipeline safety measures. GAO also stated that the incident reporting
requirements should adjust for changes in the price of natural gas,
because the value of gas released is a key factor in determining
whether an incident must be reported.
    The NTSB recommended that PHMSA modify 49 CFR 195.52 of the
hazardous liquid regulations to require pipeline operators to have a
procedure to calculate and provide a reasonable initial estimate of
released product in the telephonic report to the National Response
Center (NTSB Safety Recommendation P-07-07). NTSB also recommended that
the hazardous liquid regulations require pipeline operators to provide
an additional telephonic report to the National Response Center if
significant new information becomes available during the emergency
response (NTSB Safety Recommendation P-07-08).

IV. Section by Section Analysis

(1) Modifying the Scope of Part 191 To Reflect the Change to the
Definition of Gas Gathering Lines

49 CFR 191.1
    On Wednesday, March 15, 2006, PHMSA published a new final rule,
redefining the definition of gas gathering line. Part of that
rulemaking effort changed the scope of Part 192 which is addressed in
Sec.  192.1. However, this rulemaking project inadvertently overlooked
making the corresponding changes to the scope of Part 191 in Sec.
191.1 Because of this omission, operators of gathering lines have been
reporting the number of miles of gas gathering lines by the old
definition and not by the new. Sec.  191.1 would be changed to reflect
the new gas gathering line definition.

(2) Changing the Definition of an ``Incident''

49 CFR 191.3
    This proposal would change the definition of an incident in 49 CFR
191.3 to establish a new reporting category: an explosion or fire not
intentionally set by the operator. This proposed change would make the
definition consistent with the accident reporting criteria in 49 CFR
Part 195. The proposal also establishes a volumetric basis of 3,000 MCF
for reporting unintentional gas loss.
Justification
    Explosion or Fire Not Intentionally Set by the Operator
    Adding ``explosion or fire not intentionally set by the operator''
as a category to the definition of a reportable incident will enable
PHMSA to gain information on significant incidents, as fires and
explosions are major adverse outcomes that significantly raise the risk
of death or injury from a pipeline failure. PHMSA's analysis of its
accident/incident database showed the risk of death or injury increased
by a magnitude of four-to-five times if there was a fire or explosion,
compared to incidents without a fire or explosion. This revision would
also make the natural gas pipeline incident reporting requirement
consistent with the reporting requirement for hazardous liquid
pipelines.
Volume Measure for Released Gas
    Under the existing definition, a reportable incident includes
estimated property damage, including cost of gas lost, of the operator
or others, or both, of $50,000 or more. Therefore, although less gas is
being released, more incidents are being reported because the value of
natural gas has escalated over time. This proposal would establish a
volumetric basis for unplanned gas loss for reporting an incident.
    In November 2005, INGAA submitted a petition for rulemaking
recommending PHMSA adopt a volume basis instead of the cost of gas
lost. INGAA recommended 20,000 MCF (20 million standard cubic feet) as
a reporting threshold. INGAA based this volume on the $50,000 reporting
threshold and the 1985 cost of gas at $2.50 per MCF.
    The definition of the term ``incident'' affects both natural gas
distribution and transmission operators. A strategy and proposed
solution to address the problem posed by the escalating cost of gas
therefore must apply to both natural gas distribution and transmission
operators. Historical data indicates that INGAA's recommended amount of
20,000 MCF is too high to have any impact on distribution incident
reporting and would significantly reduce the number of gas transmission
incident reports to PHMSA, inhibiting PHMSA's ability to accurately
track the number of incidents and to learn from the already small
number of reportable incidents that occur annually.
    PHMSA proposes to revise the definition of incident to add a
reporting criterion for 3,000 MCF of gas lost. PHMSA believes that
3,000 MCF more accurately represents the median volume of gas lost
reported through transmission incident reports since 2002. The 3,000
MCF proposed volume represents a large amount of gas from a small
pipeline that would have less potential to do major damage, compared to
a small amount of gas from a large pipeline (e.g. 30- to 40-inch
diameter) that could cause major damage.

(3) Requiring Electronic Reporting and Filing of Reports

49 CFR 191.7 and 195.58
    We are proposing to require an operator of a regulated pipeline or
facility as defined in Sec.  191.3 or Sec.  195.2 to submit all reports
to PHMSA electronically.
Justification
    To improve the processing of submitted reports, PHMSA proposes to
modify Sec. Sec.  191.7 and 195.58 to require electronic reporting and
updating of operator data in PHMSA databases.
    Electronic data submission will enhance efficiency while reducing
paperwork burdens.Currently, 55-80% of operators submit reporting data

electronically. The remaining operators submit large volumes of
reporting data to PHMSA in paper format. Often these operators submit
incomplete data, inconsistent data, and improperly filled-in forms.
PHMSA lacks resources to verify individual data elements and seek
further information to correct errors. Any PHMSA electronic filing
requirement will be a function of the ability of the regulated industry
to report data electronically to PHMSA. Given the size and
technological capacity of pipeline operators, PHMSA believes the
regulated industry has the required technological capability to provide
required data to PHMSA electronically. However, should any operator
lack the technological capacity for electronic reporting, we are
proposing that the operator notify PHMSA and request an alternative to
comply with this requirement. Such requests for alternative methods
must be submitted to PHMSA by mail or fax. PHMSA specifically invites
comments from operators on the burden the proposed electronic reporting
requirement would impose.
    Mandatory electronic filing is wholly consistent with the E-
Government Act of 2002 (Pub. L. 107-347) and the Government Paperwork
Elimination Act of 1998 (Pub. L. 105-277) requirements. By placing
required data fields in an electronic form pipeline and liquefied
natural gas facility operators will submit more concise, complete, and
accurate information in a format that will improve PHMSA's ability to
use the information, ensure compliance, and reduce risk. PHMSA has the
authority and sufficient justification for requiring data collection on
pipeline-related matters by electronic filing. As discussed above,
electronic filing, as encouraged by the E-Gov initiative, will greatly
benefit PHMSA. PHMSA has provided electronic reporting as a method of
filing required reports since 2002. PHMSA believes the regulated
industry possesses the technological expertise, skills, equipment
(hardware and software), internet access etc., and, generally prefers
to submit data electronically as opposed to hard copy. Some affected
smaller business or individuals, however, may not have the required
skills or equipment and the cost of acquiring these necessary resources
for electronic filing could be costly. Therefore, PHMSA will provide
alternatives, such as paper forms submitted though mail or facsimile,
for those operators who notify PHMSA that they are unable to report
electronically and request an alternative.
    As part of the revisions to Sec. Sec.  191.7 and 195.58, PHMSA
proposes to remove the language on filing duplicate copies of annual
and incident reports to State agencies because any State filing
requirement is independent of PHMSA's requirements. With the new
requirement to file reports electronically, we see this provision on
State filing requirements as only adding confusion.
    We will continue to require safety-related condition reports to be
submitted concurrently to the applicable State agency for intrastate
pipeline transportation and on interstate transportation facilities,
where the State acts as PHMSA's agent.

(4) Requiring LNG Operators To Submit Incident and Annual Reports

49 CFR 191.9, 191.15, 191.17 and 193.2011
    PHMSA proposes to amend Sec. Sec.  191.15, 191.17, and 193.2011 to
require LNG facility operators to submit annual and incident reports
consistent with the current reporting requirements for gas and
hazardous liquid pipeline operators.
Justification
    Currently, 49 CFR 193.2011 requires LNG operators to report leaks
and spills of LNG according to the requirements in Part 191. Part 191
provides the requirements for Annual Reports, Incident Reports, and
Safety Related Condition Reports. LNG facilities are exempt from the
requirements for incident reporting in Sec.  191.15 and annual
reporting in Sec.  191.17.
    Various GAO and internal assessments have identified the need for
improved data quality in the area of LNG operations. PHMSA does not
collect annual reports or incident reports for LNG facilities. These
reports would provide timely information needed to improve PHMSA's
ability to effectively evaluate the safety performance of the LNG
industry, to monitor significant changes to plant or facility
operations, and to aid regulatory decision making regarding LNG
operations. PHMSA will also use the information for accurate user fee
assessments.
    The proposed data collection and reporting requirements for LNG
operators are consistent with the current PHMSA reporting requirements
for gas and hazardous liquid pipeline operators.

(5) Creating a National Registry of Pipeline and LNG Operators

49 CFR 191.22 and 195.64
    In this proposed rule we are proposing that all regulated pipeline
operators and LNG plant or LNG facility operators must obtain an
Operator Identification (OPID) number from PHMSA. An ``operator'' of a
regulated pipeline, pipeline facility, LNG plant or LNG facility--or
group of regulated pipelines or facilities--as defined in Sec. Sec.
191.3 and 195.2 will be required to submit all reports for those
regulated pipelines or facilities using the assigned OPID for the
specific pipeline segments or facilities for which the operator
requested the OPID.
    This proposal would require operators to use this OPID for all
submissions (National Pipeline Mapping System, Annual report, accident,
incident, safety-related condition etc.) to PHMSA. If an operator has a
single OPID, then all of its reporting to PHMSA for regulated
pipelines, pipeline facilities, and/or LNG facilities will use the one
number assigned to the company for those assets. If an operator has
multiple OPIDs, the operator must determine which OPID is assigned to
which specific and unique pipeline segments or facilities, and use that
OPID consistently for those pipeline segments or facilities in
reporting to PHMSA.
    To ensure consistency and accuracy of information collection, even
those operators with an existing OPID must reapply. If the pipeline
segments or facilities associated with an existing OPID have not
changed, the existing OPID would not change. Changes to OPID assigned
numbers would occur on a case-by-case basis depending on the extent of
mergers, acquisitions, divestitures, etc. that have occurred since
PHMSA assigned the existing OPID.
    We are also proposing that an operator notify PHMSA at least 60
days in advance of certain profile or other changes to its facilities
which could impact public safety. Such changes would include any of the
following activities for an existing or new pipeline, pipeline segment,
pipeline facility, LNG plant, or LNG facility:
     A change in the operating entity responsible for operating
an existing pipeline, pipeline segment, or facility.
     A change in the operating entity responsible for managing
or administering a safety program (such as an Integrity Management or
Corrosion Protection Program) covering an existing pipeline, pipeline
segment, or facility.
     The acquisition or divestiture of 50 or more miles of an
existing regulated pipeline or pipeline segment.
     Any rehabilitation, replacement, modification, upgrade,
uprate, or update costing $5 million or more.
     The construction of 10 or more miles of a new hazardous
liquid or gas

transmission pipeline facility, or other construction project costing
$5 million or more.
     The construction of a new LNG plant or LNG facility, or
the sale or purchase of an existing LNG plant or LNG facility.
Justification
    A National Registry of Pipeline and LNG Operators will serve as the
storehouse for the reporting requirements for an operator regulated or
subject to reporting requirements under 49 CFR Parts 192, 193, or 195.
Essential to the effectiveness of PHMSA's oversight is the ability to
monitor and assess the performance of the regulated community--
examining both discrete performance as well as historical trending over
time. The single greatest challenge to PHMSA's ability to track
performance--and in particular, performance over time--is the dynamic
nature of the regulated community itself. Due to conversions of
service, new construction, and abandonments, or changes in operatorship
that occur during divestitures, acquisitions, or contractual turnovers,
operators' asset profiles often change year-to-year, rendering
historical trending inaccurate. Currently, PHMSA does not receive any
alerts, information, or notification of these types of changes and we
lack any mechanism to track or capture these changes when they occur.
As a result, PHMSA's ability to accurately portray and assess the
performance of individual operators is severely compromised, with the
problem deteriorating over time as operating and asset changes
accumulate and compound.
    Additionally, there is an increased burden to industry and to PHMSA
in tracking and maintaining potentially numerous OPID's for the same
company. Some companies accumulate a large number of OPID's, often
inadvertently, as the company reports across a variety of lines of
business (e.g., operators may use separate OPID's for reporting their
user fee mileage, safety-related conditions, National Pipeline Mapping
System (NPMS) submissions, incidents, and annual infrastructure and
integrity management data.) The proposed National Registry of Pipeline
and LNG Operators will facilitate the use of one OPID across a
company's reporting requirements for a given set of pipeline segments
or facilities thereby reducing the burden on both PHMSA and industry
for tracking these multiple, duplicative OPID's.
    This proposed rulemaking will also require operators to notify
PHMSA when they experience significant asset changes that affect
PHMSA's ability to accurately monitor and assess pipeline safety
performance. Certain types of changes to or within an operator's
facilities or pipeline network represent potential safety-altering
activities for which PHMSA may need to inspect, investigate, or
otherwise oversee to ensure that any public safety concerns are
adequately and proactively addressed. In these cases, this timely
notification will allow PHMSA to mobilize inspection resources or
notify one of its partner State pipeline safety agencies if needed.
    This proposed Registry would include mandatory registration and
notification requirements, which do not exist within PHMSA's current
OPID assignment process. This Registry is necessary to compile an
integrated national pipeline inventory of operator contact and facility
information that is sustainable and can evolve over time to accommodate
an ever-changing environment. Implementing a National Registry of
Pipeline and LNG Operators will ensure that PHMSA's communications with
representatives of the regulated community are complete and accurate,
achieving a level of assurance that does not exist within PHMSA's
existing OPID assignment process. The proposed Registry will also
enable PHMSA to distribute up-to-date pipeline safety information for
various technology applications used in the performance of inspections,
regulatory oversight, reporting, and other safety-based needs, and will
provide the accurate and up-to-date compilation of operating entities
and facilities that is a critical element of PHMSA's pipeline safety
mission.
    Moreover, the accurate and timely representation of the scope and
make-up of the nation's pipeline and LNG facility infrastructure is not
only critical to PHMSA, but it is also critical to the various
oversight bodies, Congress, the GAO, the DOT Inspector General, and the
NTSB. Other stakeholders such as safety and environmental advocacy
groups, and State and local pipeline safety partners also rely on the
accuracy and completeness of this information.

(6) Requiring Electronic Safety-Related Condition and Offshore Pipeline
Condition Reports

49 CFR 191.25, 191.27, 195.56, 195.57 and 195.58
    We are proposing to require an operator of a natural gas or
hazardous liquid pipeline, or of an LNG plant or LNG facility to use a
new standardized form instead of the free-form Safety-Related Condition
reporting now used. The requirement under Sec.  191.7 and under Sec.
195.58 to file Safety-Related Condition reports concurrently with State
agencies under the conditions outlined in those sections for filing
with State agencies would still apply.
    We are also proposing to require an operator of a hazardous liquid
pipeline to use a new standardized form instead of the free-form
Offshore Pipeline Condition Report now used.
Justification
    PHMSA requires an operator of a natural gas pipeline or LNG plant
or LNG facility to report the existence of a safety-related condition
(SRC) meeting the criteria specified in Sec.  191.23. Hazardous liquid
operators must report a SRC using the criteria in Sec.  195.55. An
operator must file a report within five working days after
determination but no later than ten working days after discovery of the
condition. Reports are sent by facsimile to PHMSA. This proposed rule
proposes to amend Sec. Sec.  191.25, 195.56 and 195.58 to require
operators to submit the information electronically through a
standardized form.
    For offshore pipeline conditions, PHMSA requires an operator to
report certain information within 60 days after completion of the
inspection of all its underwater pipelines subject to Sec.  192.6(2a)
or Sec.  195.413(a). This proposed rule proposes to obtain this
information on a standardized form, filed electronically with PHMSA.
    These proposed requirements will ensure that PHMSA obtains all the
pertinent information it needs to perform its assessments and safety
analyses; ensure that operators report all the required data; ensure
consistent reporting across the regulated community; reduce the data
management burden on PHMSA; and, reduce the reporting burden on
operators. A copy of each form is available in the docket.

(7) Merging the Gas Transmission Integrity Management Semi-Annual
Performance Measures Report With the Gas Transmission Operator Annual
Reports

49 CFR 192.945 and 192.951
    PHMSA is proposing to merge the gas transmission Integrity
Management Program semi-annual performance measures reports with the
annual reports.
Justification
    Operators of gas transmission pipelines subject to Subpart O,
``Pipeline Integrity Management'', must

submit four overall measures of their integrity management performance
on a semi-annual basis, as required by Sec.  192.945. On December 15,
2003, PHMSA published a new Subpart O to the regulations governing
safety of gas pipelines in 49 CFR Part 192 (68 FR 69778). Subpart O
establishes requirements governing integrity management programs for
gas transmission pipelines. Included among these provisions are
requirements for each gas transmission pipeline operator to maintain
quantitative measures of its integrity management performance as
specified in ASME/ANSI B31.8S, ``Managing System Integrity of Gas
Pipelines'', Section 9.4 (49 CFR 192.945). The same regulation requires
that each operator submit the performance measures to PHMSA semi-
annually. The report on performance measures collects information on
the number of pipeline miles inspected; the number of immediate repairs
completed; the number of scheduled repairs completed; and the number of
leaks, failures, and incidents in the High Consequence Areas.
    A consequence of moving these reporting requirements to a gas
transmission operator's annual report for ASME/ANSI B31.8S performance
metrics is that the annual report is by State. Moreover, for the ASME/
ANSI B31.8S performance metrics, the annual report will seek separate
reporting for interstate and intrastate facilities and system
information. Operators will identify if they are interstate or
intrastate. If an operator has interstate mileage it will be able to
report by State or have the data rolled up into a single report. If an
operator is an intrastate operator, the report is already by State. The
acceptable means for submitting reports required by Subpart O are in 49
CFR 192.951.
    In addition, PHMSA is proposing that operators submit the required
performance measures through the annual report required in Sec.
191.17. This regulatory change will reduce the reporting burden of the
industry from twice a year to once a year and will allow PHMSA to
identify the location of the inspection, repairs, leaks, failure, and
incidents in a high consequence area.
    The existing section on the annual report for reporting total leaks
eliminated or repaired during the year has seven cause categories,
while the equivalent information on the biannual reporting for gas
integrity management, as specified in ASME B31.8s, has nine cause
categories. GAO noted the inconsistency in its report (GAO-06-946),
``Natural Gas Pipeline Safety: Integrity Management Benefits Public
Safety, but Consistency of Performance Measure Should Be Improved.''
GAO recommended PHMSA improve the measures related to incidents, leaks,
and failures to better allow for optimal comparison of performance over
time and make them more consistent with other pipeline safety measures.
To achieve consistency PHMSA proposes to revise the annual report form
DOT form 7100.2-1 to replace the seven annual report leak cause
categories with the ASME B31.8s nine cause categories. A copy of the
revised annual report is available for review in the public docket.
    The ASME B31.8s nine cause categories are as follows:
     External Corrosion.
     Internal Corrosion.
     Stress Corrosion Cracking.
     Manufacturing.
     Construction.
     Equipment.
     Third Party Damage/Mechanical Damage.
     Incorrect Operations.
     Weather Related/Other Outside Force.
    The existing seven cause categories on the Gas Transmission and
Gathering System Annual Report are as follows:
     Corrosion.
     Natural Forces.
     Excavation.
     Other Outside Force Damage.
     Material and Welds.
     Equipment and Operations.
     Other.
    PHMSA also seeks expanded information on mileage by Type A and Type
B gathering lines (refer to 49 CFR 192.8 and 192.9); expanded
information on class location by specified minimum yield strength
(SMYS) to better understand the effects of recent ``special permits''
and the final rule (Pipeline Safety: Standards for Increasing the
Maximum Allowable Operating Pressure for Gas Transmission Pipelines; 73
Fed. Reg. 62148: October 17, 2008) allowing operators to operate
certain pipelines at up to 80% SMYS; and information on volume and
commodity transported to better understand system miles by product type
(propane vs. natural gas for example). The expanded information will
enhance our ability to effectively understand the need for further
expansion of regulations for gathering lines and high stress lines.

(8) Modifying Hazardous Liquid Operator Telephonic Notification of
Accidents Reporting Requirement

49 CFR 195.52
    This proposal would require an operator to have a procedure to
calculate and provide a reasonable initial estimate of released product
in telephonic reports to the National Response Center (NRC). An
operator would also be required to provide additional telephonic
reports to the NRC if significant new information becomes available
during the emergency response phase of a reported event.
Justification
    The NTSB recommended that PHMSA modify 49 CFR 195.52 to require
hazardous liquid pipeline operators to have a procedure to calculate
and provide a reasonable initial estimate of released product in the
telephonic report to the National Response Center (NTSB Safety
Recommendation P-07-07). The NTSB also recommended that PHMSA modify
the hazardous liquid telephonic notice regulation section to require
pipeline operators to provide an additional telephonic report to the
National Response Center if significant new information becomes
available during the emergency response phase of a reported event (NTSB
Safety Recommendation P-07-08).

(9) Requiring Operators of Hazardous Liquid Pipelines To Report
Pipeline Information by State on the Annual Report for Hazardous Liquid
Pipelines

49 CFR 195.49
    This proposal would require operators of hazardous liquid pipelines
to submit certain infrastructure and integrity management data for each
State a pipeline traverses.
Justification
    Currently, natural gas transmission pipeline operators submit
State-specific annual reports that give PHMSA a sound and basic
understanding of the location, scope, and nature of the pipeline
facilities subject to its regulations. Hazardous liquid pipeline
operators do not report State-specific information on their annual
reports. These reports show the mileage and characteristics of the
hazardous liquid pipelines operated by approximately 314 operators with
about 165,000 miles of pipelines. These annual reports only contain
nationally aggregated information for the general characteristics of
the hazardous liquid pipelines, along with fundamental integrity
management information. Nationally aggregated information does not
provide the granularity of data that is critical to PHMSA's
understanding of the risks posed by, as well as the condition of, these
pipelines. Although PHMSA's NPMS maintains location information on 310
operators reporting

over 175,000 miles of pipe, none of these submittals contains the
desired State-specific pipeline characteristics or integrity management
information PHMSA needs to effectively understand, monitor, and assess
safety performance and risks more discretely.
    This more granular level of understanding and analysis is critical
to PHMSA's fundamental safety mission. Capturing this State-specific
information for both gas transmission and hazardous liquid pipelines
provides PHMSA with the data necessary to identify areas of potential
high risk and allocate agency resources accordingly. Without this
information, PHMSA cannot differentiate risks and exposures on a State
or regional basis, thereby precluding efforts to allocate internal
resources based on risk or accurately portray and assess the
performance of its various enforcement Regions or individual partner
State pipeline safety agencies. The absence of this information also
severely limits PHMSA's ability to analyze risks and identify safety
issues that may be specific to a particular State or region.
Additionally, this level of information would facilitate PHMSA's
efforts to reconcile discrepancies between operator NPMS submissions
and information submitted through annual reports.
    Many States have pipeline safety programs that operate as either
PHMSA-certified interstate or PHMSA-certified intrastate agents for
hazardous liquid pipelines. PHMSA helps to fund these State programs to
reimburse costs for inspections and other safety activities. PHMSA
needs to have a full and complete understanding of the scope, nature,
and extent of the pipeline infrastructure under each State's purview to
be able to assess the effectiveness of funding State pipeline programs
for these activities, and to effectively assess, monitor, and compare
the State's respective safety performance. Similarly, State pipeline
program managers need this same information to plan and manage their
own programs.
    PHMSA conducted preliminary discussions on the reporting by State
proposal with representatives of the hazardous liquid pipeline
community. These preliminary discussions were held during meetings with
an industry data team consisting of representatives from American
Petroleum Institute (API), Association of Oil Pipe Lines (AOPL), and
hazardous liquid pipeline operators. This industry data team generally
supported reporting by State for the specific areas that PHMSA proposes
to obtain annual report information by State. PHMSA was also urged to
consider an efficient method for the collection of the proposed
information.
    Members of the industry data team also requested PHMSA consider
obtaining infrastructure and integrity management (IM) information
through the NPMS. PHMSA acknowledges the potential benefits of NPMS
submission of infrastructure and IM information. NPMS submission of the
information would greatly enhance PHMSA's ability to make informed
safety-related assessments and decisions. PHMSA is also mindful of the
costs associated with submitting the proposed information via the NPMS
as opposed to other means. PHMSA would have to modify the existing
geospatial technological architecture of the NPMS to accept the
substantial data elements that would have to be submitted if the NPMS
were to generate the proposed State totals. These modifications would
be costly and are not currently budgeted or planned. To retrofit the
NPMS into a format that could accept the substantial data elements
requires several years of planning and extensive work by PHMSA.
Additionally, we need to determine the percentage of the hazardous
liquid operators with the capability to submit information using
geospatial technology. Many small companies are not API or AOPL members
and we need to better understand the overall abilities and capabilities
of the industry before considering this method for the collection of
information. This proposed rule therefore seeks comment from any
hazardous liquid operator that could not provide information via a
geospatial tool.
    PHMSA agrees with the potential benefits of NPMS submission for
this information. Like the industry data team, PHMSA also recognizes
that having the information in a GIS tool greatly facilitates the ease
with which such tables can be computed and produced. Although the
industry data team believes that virtually all of the API and AOPL
members have information in GIS tools, preliminary results from a joint
OPS and industry pilot project indicate that industry may not have any
additional information other than currently collected in NPMS, in GIS
format.
    Therefore, PHMSA is requesting comments on whether infrastructure
and IM information through NPMS is a better alternative that operators
could easily implement. For now, PHMSA will continue to collect the
information through the Annual Report until PHMSA determines that
industry has the capability to convert its technological platform into
a format that could accept the submission via GIS tool and that the
entire industry could adhere to such a format.

(10) Removing Obsolete Provisions

49 CFR 191.19, 191.27, 195.57 and 195.62
    PHMSA proposes to remove or revise the following provisions in
light of the proposal to require electronic submission of all reports.
Electronic reporting makes these requirements obsolete.
     Remove Sec.  191.19, which advises operators they may
obtain, without charge, copies of paper report forms and reproduce the
forms.
     Remove Sec. Sec.  191.27(b) and 195.57(b), which require
mailing hard copies of Offshore Pipeline Condition reports.
     Revise Sec.  195.54 to remove the option to file an
accident report by facsimile.
     Remove Sec.  195.62, which requires operators to maintain
an adequate supply of forms that are a facsimile of DOT accident report
forms so that the operator may promptly report an accident.
    Hard copies of forms will continue to be available on PHMSA's Web
site at http://phmsa.dot.gov/pipeline.

(11) Updating OMB Control Numbers

49 CFR 191.21 and 195.63
    PHMSA proposes to update these sections to add new OMB control
numbers for the new forms (and information collection) proposed in this
proposed rule. There will be new forms for reporting safety-related and
offshore pipeline conditions, LNG incidents and for submitting an LNG
annual report.

V. Regulatory Analyses and Notices

Executive Order 12866 and DOT Policies and Procedures

    This proposed rule is not a significant regulatory action under
section 3(f) of Executive Order 12866 (58 FR 51735) and, therefore, was
not reviewed by the Office of Management and Budget. This proposed rule
is not significant under the Regulatory Policies and Procedures of the
Department of Transportation (44 FR 11034).
    Overall, the costs of the proposed rule are expected to be
approximately $1.9 million per year. The present value of this cost
over 10 years using a 3 percent discount rate is approximately $17
million, while its present value over 10 years using a 7 percent
discount rate is approximately $14 million. Those costs cover changes
to the 49 CFR to enhance

general data and data management improvements for pipelines.
    The average of the present value of net benefits over 10 years at a
3 percent discount rate is approximately $76 million and approximately
$62 million at 7 percent.
    The benefits of the proposed rule enhance PHMSA's ability to
understand, measure, and assess the performance of individual operators
and industry as a whole; integrate pipeline safety data in a way that
will allow a more thorough, rigorous, and comprehensive understanding
and assessment of risk; expand and simplify existing electronic
reporting by operators; improve the data and analyses PHMSA relies on
to make critical, safety-related decisions; and facilitate PHMSA's
allocation of inspection and other resources based on a more accurate
accounting of risk.
    A comparison of the benefits and costs of the rule results in
positive net benefits. The present value of net benefits (the excess of
benefits over costs) for the proposed rule is approximately $59 million
using a three percent discount rate and $48 million using a seven
percent discount rate. A copy of the regulatory evaluation is available
for review in the docket.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980, as amended, requires
Federal agencies to conduct a separate analysis of the economic impact
of rules on small entities. The Regulatory Flexibility Act requires
that Federal agencies take small entities' concerns into account when
developing, writing, publicizing, promulgating, and enforcing
regulations. The modifications noted in the proposed rule will affect
hazardous liquid, natural gas pipelines (distribution and
transmission), and LNG facility operators. PHMSA does not collect
information on number of employees or revenues for pipeline operators.
Such a collection would require OMB approval. Nevertheless, PHMSA
continues to seek information (and invites comments on this subject)
about the number of small pipeline operators to more fully determine
impact on small entities.
    The Small Business Administration (SBA) size standards for
hazardous liquid operators are companies with less than 1,500
employees, including employees of parent corporations. The SBA size
standards are $6.5 million in annual revenues for the natural gas
transmission pipeline industry and 500 employees for the natural gas
distribution industry.
    PHMSA has reviewed the data it collects from the hazardous liquid
pipeline industry and has estimated there are 10 to 20 small entities
in this industry. PHMSA estimates that about 480 of the gas
transmission and gathering firms have less than $6.5 million in
revenues and about 1,000 gas distribution firms have fewer than 500
employees. Information on the market structure of the LNG industry is
scarce\\ but the estimated reporting cost to LNG facilities' operators
is very low, and thus, PHMSA assumes that LNG facilities operators,
large or small, will not be adversely affected by the requirements in
the proposed rule.
    The average annual cost of the increased reporting burden of the
proposed rule ranges from $3,804 to $5,649 for small hazardous liquid
operators, $231 to $385 for small natural gas operators and from $683
to $1,103 for liquefied natural gas operators. These preliminary
results suggest that there is not a significant impact on a substantial
number of small entities.

Executive Order 13175

    PHMSA has analyzed this proposed rule according to the principles
and criteria in Executive Order 13175, ``Consultation and Coordination
with Indian Tribal Governments.'' Because this proposed rule would not
significantly or uniquely affect the communities of the Indian Tribal
governments or impose substantial direct compliance costs, the funding
and consultation requirements of Executive Order 13175 do not apply.

Paperwork Reduction Act

    This proposed rule may result in revisions to several currently
approved information collections. The following list contains the
potentially impacted information collections and their current approval
information:

----------------------------------------------------------------------------------------------------------------
                                                                                Current        Currently
         OMB Control No.                       Info collection title                expiration       approved
                                                                                date        burden hours
----------------------------------------------------------------------------------------------------------------
1. 2137-0047.....................  Transportation of Hazardous Liquids by             11/30/2011          51,011
                                    Pipeline: Recordkeeping and Accident
                                    Reporting.
2. 2137-0522.....................  Incident and Annual Reports for Gas Pipeline       11/30/2010          36,105
                                    Operators.
3. 2137-0578.....................  Reporting Safety-Related Conditions on Gas,         2/28/2011             390
                                    Hazardous A Liquid, and Carbon Dioxide
                                    Pipelines and Liquefied Natural Gas
                                    Facilities.
4. 2137-0610.....................  Pipeline Integrity Management in High               6/30/2009       1,030,309
                                    Consequence Areas Gas Transmission Pipeline
                                    Operators.
5. 2137-0614.....................  Pipeline Safety: New Reporting Requirements         6/30/2010           5,364
                                    for Hazardous Liquid Pipeline Operators:
                                    Hazardous Liquid Annual Report.
----------------------------------------------------------------------------------------------------------------

    Pursuant to 5 CFR 1320.8(d), PHMSA is required to provide
interested members of the public and affected agencies with an
opportunity to comment on information collection and recordkeeping
requests. This notice identifies revised information collection
requests that PHMSA will submit to the Office of Management and Budget
(OMB) for approval based on the requirements in this proposed rule.
    PHMSA has developed revised burden estimates to reflect changes in
this proposed rule. PHMSA estimates that, based on the proposals in
this rule, the current information collection burden for these
information collections will be revised as follows:
    1. Title of information Collection: Transportation of Hazardous
Liquids by Pipeline: Recordkeeping and Accident Reporting.
    OMB Control Number: 2137-0047.
    Total Annual Number of Respondents: 300.
    Total Annual Responses: 450.
    Total Annual Burden Hours: 51,011.
    Total Annual Burden Cost: $3,302,962.25.
    2. Title of information Collection: Incident and Annual Reports for
Gas Pipeline Operators.
    OMB Control Number: 2137-0522.
    Total Annual Number of Respondents: 2,289.
    Total Annual Responses: 5,629.

    Total Annual Burden Hours: 63,153.
    Total Annual Burden Cost: $2,910,448.
    3. Title of information Collection: Reporting Safety-Related
Conditions on Gas, Hazardous A Liquid, and Carbon Dioxide Pipelines and
Liquefied Natural Gas Facilities.
    OMB Control Number: 2137-0578.
    Total Annual Number of Respondents: 2,673.
    Total Annual Responses: 718.
    Total Annual Burden Hours: 1,512.
    Total Annual Burden Cost: $46,620.
    4. Title of information Collection: Pipeline Integrity Management
in High Consequence Areas Gas Transmission Pipeline Operators.
    OMB Control Number: 2137-0610.
    Total Annual Number of Respondents: 721.
    Total Annual Responses: 721.
    Total Annual Burden Hours: 1,018,773.
    Total Annual Burden Cost: $65,967,753.00.
    5. Title of information Collection: Pipeline Safety: New Reporting
Requirements for Hazardous Liquid Pipeline Operators: Hazardous Liquid
Annual Report.
    OMB Control Number: 2137-0614.
    Total Annual Number of Respondents: 300.
    Total Annual Responses: 447.
    Total Annual Burden Hours: 11,748 hours.
    Total Annual Burden Cost: $760,683.00.
    Requests for a copy of the information collection should be
directed to Cameron Satterthwaite, U.S. Department of Transportation,
Office of Regulations, Pipeline and Hazardous Materials Safety
Administration, 1200 New Jersey Avenue, SE., East Building, 2nd Floor,
Washington, DC 20590-0001, Telephone<PHONE_NUMBER>.
    All comments should be addressed to the Dockets Unit as identified
in the ADDRESSES section of this proposed rule and received prior to
the close of the comment period identified in the DATES section of this
proposed rule.
    We specifically request comments on the information collection and
recordkeeping burden associated with developing, implementing, and
maintaining these requirements for approval under this proposed rule.

Unfunded Mandates Reform Act of 1995

    This proposed rule would not impose unfunded mandates under the
Unfunded Mandates Reform Act of 1995. It would not result in costs of
$100 million, adjusted for inflation, or more in any one year to either
State, local, or Tribal governments, in the aggregate, or to the
private sector, and is the least burdensome alternative that achieves
the objective of the proposed rulemaking.

National Environmental Policy Act

    PHMSA analyzed this proposed rule in accordance with section
102(2)(c) of the National Environmental Policy Act (42 U.S.C. 4332),
the Council on Environmental Quality regulations (40 CFR 1500-1508),
and DOT Order 5610.1C, and has preliminarily determined this action
will not significantly affect the quality of the human environment. The
Environmental Assessment for this proposed action is in the docket.

Executive Order 13132

    PHMSA has analyzed this proposed rule according to Executive Order
13132 (``Federalism''). The proposed rule does not have a substantial
direct effect on the States, the relationship between the national
government and the States, or the distribution of power and
responsibilities among the various levels of government. This proposed
rule does not impose substantial direct compliance costs on State and
local governments. This proposed rule would not preempt State law for
intrastate pipelines. Therefore, the consultation and funding
requirements of Executive Order 13132 do not apply.

Executive Order 13211

    This proposed rule is not a ``significant energy action'' under
Executive Order 13211 (Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use). It is not
likely to have a significant adverse effect on supply, distribution, or
energy use. Further, the Office of Information and Regulatory Affairs
has not designated this proposed rule as a significant energy action.

Privacy Act Statement

    Anyone may search the electronic form of all comments received for
any of our dockets. You may review DOT's complete Privacy Act Statement
in the Federal Register published on April 11, 2000 (70 FR 19477) or
visit http://dms.dot.gov.

List of Subjects

49 CFR Part 191

    Pipeline safety, Reporting and recordkeeping requirements.

49 CFR Part 192

    Pipeline safety, Fire prevention, Security measures.

49 CFR Part 193

    Pipeline safety, Fire prevention, Security measures, and Reporting
and recordkeeping requirements.

49 CFR Part 195

    Ammonia, Carbon dioxide, Incorporation by reference, Petroleum,
Pipeline safety, Reporting and recordkeeping requirements.

    In consideration of the foregoing, we propose to amend 49 CFR
Chapter I as follows:

PART 191--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE;
ANNUAL REPORTS, INCIDENT REPORTS, AND SAFETY-RELATED CONDITION
REPORTS

    1. The authority citation for Part 191 continues to read as
follows:

    Authority: 49 U.S.C. 5121, 60102, 60103, 60104, 60108, 60117,
60118, and 60124, and 49 CFR 1.53.

    1a. In Sec.  191.1, paragraph (b)(4) is revised to read as follows:

Sec.  191.1  Scope.

* * * * *
    (b) * * *
    (4) Onshore gathering of gas--
    (i) Through a pipeline that operates at less than 0 psig (0 kPa);
    (ii) Through a pipeline that is not a regulated onshore gathering
line (as determined in Sec.  192.8 of this subchapter); and
    (iii) Within inlets of the Gulf of Mexico, except for the
requirements in Sec.  192.612.
    2. In Sec.  191.3, the definition of ``Incident'' is revised to
read as follows:

Sec.  191.3  Definitions.

* * * * *
    Incident means any of the following events:
    (1) An event that involves a release of gas from a pipeline, or of
liquefied natural gas, liquefied petroleum gas, refrigerant gas, or gas
from an LNG facility, and that results in one of the following
consequences:
    (i) A death, or personal injury necessitating in-patient
hospitalization;
    (ii) Estimated property damage of $50,000 or more, including loss
to the operator and others, or both;
    (iii) Estimated gas loss of 3,000 million cubic feet or more;
    (iv) An explosion or fire not intentionally set by the operator.
    (2) An event at an LNG plant or LNG facility that results in an
emergency shutdown, excluding the activation of emergency shutdown
devices for maintenance.
    (3) An event that is significant in the judgment of the operator,
even though it

did not meet the criteria of paragraphs (1) or (2) of this definition.
* * * * *
    3. Section 191.7 is revised to read as follows:

Sec.  191.7  Report submission requirements.

    (a) General. An operator must submit each report required by this
Part electronically to the Pipeline and Hazardous Materials Safety
Administration at http://opsweb.phmsa.dot.gov. If electronic reporting
imposes an undue burden and hardship, the operator must submit a
written request for an alternative reporting method to the Information
Resources Manager, Office of Pipeline Safety, Pipeline and Hazardous
Materials Safety Administration, PHP-10, 1200 New Jersey Avenue, SE.,
Washington, DC 20590. The request must describe the undue burden and
hardship and be sent at least 60 days prior to the due date of the
report.
    (b) Safety-related conditions. An operator must submit concurrently
to the applicable State agency a safety-related condition report
required by Sec.  191.23 for intrastate pipeline transportation or when
the State agency acts as an agent of the Secretary with respect to
interstate transmission facilities.
    4. In Sec.  191.9, paragraph (c) is revised to read as follows:

Sec.  191.9  Distribution system: Incident report.

* * * * *
    (c) Master meter operators are not required to submit an incident
report as required by this section.
    5. Section 191.11 is revised to read as follows:

Sec.  191.11  Distribution system: Annual report.

    (a) General. Except as provided in paragraph (b) of this section,
each operator of a distribution pipeline system must submit an annual
report for that system on DOT Form PHMSA F 7100.1-1. This report must
be submitted each year, not later than March 15, for the preceding
calendar year.
    (b) Not required. The annual report requirement in this section
does not apply to a master meter system or to a petroleum gas system
that serves fewer than 100 customers from a single source.
    6. Section 191.15 is revised to read as follows:

Sec.  191.15  Transmission systems; gathering systems; and liquefied
natural gas facilities: Incident report.

    (a) General. Each operator of a transmission or a gathering
pipeline system must submit DOT Form PHMSA F 7100.2 as soon as
practicable but not more than 30 days after detection of an incident
required to be reported under Sec.  191.5 of this subchapter.
    (b) LNG. Each operator of a liquefied natural gas plant or facility
must submit DOT Form PHMSA F [INSERT FORM NUMBER] as soon as
practicable but not more than 30 days after detection of an incident
required to be reported under Sec.  191.5 of this subchapter.
    (c) Supplemental report. Where additional related information is
obtained after a report is submitted under paragraph (a) or (b) of this
section, the operator must make a supplemental report as soon as
practicable with a clear reference by date and subject to the original
report.
    7. Section 191.17 is revised to read as follows:

Sec.  191.17  Transmission systems; gathering systems; and liquefied
natural gas facilities: Annual report.

    (a). General. Each operator of a transmission or a gathering
pipeline system must submit an annual report for that system on DOT
Form PHMSA 7100.2.1. This report must be submitted each year, not later
than March 15, for the preceding calendar year.
    (b) LNG. Each operator of a liquefied natural gas facility must
submit an annual report for that system on DOT Form PHMSA [INSERT FORM
NUMBER]. This report must be submitted each year, not later than March
15, for the preceding calendar year.

Sec.  191.19  [Removed]

    8. Section 191.19 is removed.
    9. Section 191.21 is revised to read as follows:

Sec.  191.21  OMB control number assigned to information collection.

    This section displays the control number assigned by the Office of
Management and Budget (OMB) to the information collection requirements
in this Part. The Paperwork Reduction Act requires agencies to display
a current control number assigned by the Director of OMB for each
agency information collection requirement.
    OMB Control Number 2137-0522

------------------------------------------------------------------------
    Section of 49 CFR part 191 where
               identified                            Form No.
------------------------------------------------------------------------
191.5..................................  Telephonic
191.9..................................  PHMSA 7100.1
191.11.................................  PHMSA 7100.1-1
191.15.................................  PHMSA 7100.2
191.17.................................  PHMSA 7100.2-1
191.22.................................  PHMSA xxxxx
191.25.................................  PHMSA xxxxx
191.27.................................  PHMSA xxxxx
------------------------------------------------------------------------

    10. Section 191.22 is added to read as follows:

Sec.  191.22  National Registry of Pipeline and LNG Operators.

    (a) OPID Request. Each operator of a gas pipeline, gas pipeline
facility, LNG plant or LNG facility must obtain from PHMSA an Operator
Identification Number (OPID). An OPID is assigned to an operator for
the pipeline or pipeline system for which the operator has primary
responsibility. To obtain an OPID or a change to an OPID, an operator
must submit a complete and accurate OPID Questionnaire [Insert form
number]. The OPID Questionnaire must be transmitted electronically to
PHMSA through the National Registry of Pipeline and LNG Operators at
http://opsweb.phmsa.dot.gov. This requirement applies to all new and
existing operators, including operators who have already been assigned
one or more OPID.
    (b) Changes. Each operator of a gas pipeline, gas pipeline
facility, LNG plant or LNG facility must notify PHMSA electronically
through the National Registry of Pipeline and LNG Operators at http://
opsweb.phmsa.dot.gov 60 days prior to any of the following events:
    (1) A change in the name of the operator;
    (2) A change in the operating entity responsible for an existing
pipeline, pipeline segment, or pipeline facility, or LNG facility;
    (3) The acquisition or divestiture of 50 or more miles of pipeline
or pipeline system regulated by PHMSA;
    (4) Any rehabilitation, replacement, modification, upgrade, uprate,
or update costing $5 million or more;
    (5) Construction of 10 or more miles of a new gas transmission
pipeline or any project involving a pipeline or pipeline facility
costing $5 million or more; or
    (6) The acquisition or divestiture of an existing LNG plant or LNG
facility or construction of a new LNG plant or LNG facility.
    (c) Reporting. An operator must use the OPID issued by PHMSA for
all reporting requirements covered under this subchapter and for
submissions to the National Pipeline Mapping System.
    (d) Undue burden. If electronic reporting imposes an undue burden
and hardship, an operator must submit a written request for an
alternative reporting method to the Information Resources Manager,
Office of Pipeline Safety, Pipeline and Hazardous Materials Safety
Administration, PHP-10, 1200 New Jersey Avenue, SE., Washington DC
20590. The request

must describe the undue burden and hardship.
    11. Section 191.25 is revised to read as follows:

Sec.  191.25  Filing safety-related condition reports.

    (a) General. Each operator must file a report of a safety-related
condition under Sec.  191.23(a) on DOT Form PHMSA [INSERT FORM NUMBER].
The report must be filed (received by the Administrator) within five
working days (not including Saturdays, Sunday, or Federal Holidays)
after the day a representative of the operator first determines or
discovers that the condition exists, but not later than 10 working days
after the day a representative of the operator determines or discovers
the condition.
    (b) Separate conditions. An operator may describe separate
conditions in a single report if the conditions are closely related.
    12. Section 191.27 is revised to read as follows:

Sec.  191.27  Filing offshore pipeline condition reports.

    Each operator must, within 60 days after completion of the
inspection of all its underwater pipelines subject to Sec.  192.612(a),
file an Offshore Pipeline Condition Report on DOT Form PHMSA [INSERT
FORM NUMBER].

PART 192--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE:
MINIMUM FEDERAL SAFETY STANDARDS

    13. The authority citation for part 192 continues to read as
follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60110,
60113, and 60118; and 49 CFR 1.53.

    14. In Sec.  192.945, paragraph (a) is revised to read as follows:

Sec.  192.945  What methods must an operator use to measure program
effectiveness?

    (a) General. An operator must include in its integrity management
program methods to measure whether the program is effective in
assessing and evaluating the integrity of each covered pipeline segment
and in protecting the high consequence areas. These measures must
include the four overall performance measures specified in ASME/ANSI
B31.8S (incorporated by reference, see Sec.  192.7 of this subchapter),
section 9.4, and the specific measures for each identified threat
specified in ASME/ANSI B31.8S, Appendix A. An operator must submit the
four overall performance measures on the annual report required by
Sec.  191.17 of this subchapter.
* * * * *
    15. Section 192.951 is revised to read as follows:.

Sec.  192.951  Where does an operator file a report?

    An operator must file any report required by this subpart
electronically to the Pipeline and Hazardous Materials Safety
Administration at http://opsweb.phmsa.dot.gov. If electronic reporting
imposes an undue burden and hardship, an operator must submit a written
request for an alternative reporting method to the Information
Resources Manager, Office of Pipeline Safety, Pipeline and Hazardous
Materials Safety Administration, PHP-10, 1200 New Jersey Avenue, SE.,
Washington, DC 20590. The request must describe the undue burden and
hardship.

PART 193--LIQUIFIED NATURAL GAS FACILITIES: FEDERAL SAFETY
STANDARDS

    16. The authority citation for part 193 continues to read as
follows:

    Authority: 49 U.S.C. 5103, 60102, 60103, 60104, 60108, 60109,
60110, 60113, 60118, and 49 CFR 1.53.

    17. Section 193.2011 is revised to read as follows:

Sec.  193.2011  Reporting.

    Incidents, safety-related conditions, and annual pipeline summary
data for LNG plants or facilities must be reported in accordance with
the requirements of part 191 of this subchapter.

PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE

    18. The authority citation for part 195 continues to read as
follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60118,
and 49 CFR 1.53.

    19. Section 195.49 is revised to read as follows:

Sec.  195.49  Annual report.

    Each operator must annually complete and submit DOT Form PHMSA F
7000-1.1 for each type of hazardous liquid pipeline facility operated
at the end of the previous year. The hazardous liquid operator annual
report must be filed by June 15 each year. Each operator must submit a
separate report for each State a pipeline traverses. A separate report
is required for crude oil, HVL (including anhydrous ammonia), petroleum
products, and carbon dioxide pipelines.
    20. Section 195.52 is revised to read as follows:

Sec.  195.52  Telephonic notice of certain accidents.

    (a) Notice requirements. At the earliest practicable moment
following discovery of a release of the hazardous liquid or carbon
dioxide transported resulting in an event described in Sec.  195.50,
the operator of the system must give notice, in accordance with
paragraph (b) of this section, of any failure that:
    (1) Caused a death or a personal injury requiring hospitalization;
    (2) Resulted in either an explosion or fire not intentionally set
by the operator;
    (3) Caused estimated property damage, including cost of cleanup and
recovery, value of lost product, and damage to the property of the
operator or others, or both, exceeding $50,000;
    (4) Resulted in pollution of any stream, river, lake, reservoir, or
other similar body of water that violated applicable water quality
standards, caused a discoloration of the surface of the water or
adjoining shoreline, or deposited a sludge or emulsion beneath the
surface of the water or upon adjoining shorelines; or
    (5) In the judgment of the operator was significant even though it
did not meet the criteria of any other paragraph of this section.
    (b) Information required. Reports made under paragraph (a) of this
section are made by telephone to<PHONE_NUMBER> (in Washington, DC 267-
2675) and must include the following information:
    (1) Name, address and identification number of the operator.
    (2) Name and telephone number of the reporter.
    (3) The location of the failure.
    (4) The time of the failure.
    (5) The fatalities and personal injuries, if any.
    (6) Initial estimate of amount of product released in accordance
with paragraph (c) of this section.
    (7) All other significant facts known by the operator that are
relevant to the cause of the failure or extent of the damages.
    (c) Calculation. A pipeline operator must have a written procedure
to calculate and provide a reasonable initial estimate of the amount of
released product.
    (d) New information. An operator must provide an additional
telephonic report to the National Response Center if significant new
information becomes available during the emergency response phase of a
reported event.
    21. In Sec.  195.54, paragraph (a) is revised to read as follows:

Sec.  195.54  Accident reports.

    (a) Each operator that experiences an accident that is required to
be reported under Sec.  195.50 must, as soon as practicable, but not
later than 30 days after discovery of the accident file an accident
report on DOT Form 7000-1.
* * * * *
    22. Section 195.56 is revised to read as follows:

Sec.  195.56  Filing safety-related condition reports.

    (a) General. Each operator must file a report of a safety-related
condition under Sec.  195.55(a) on DOT Form PHMSA [INSERT FORM NUMBER].
The report must be filed (received by the Administrator) within five
working days (not including Saturdays, Sunday, or Federal Holidays)
after the day a representative of the operator first determines or
discovers that the condition exists, but not later than 10 working days
after the day a representative of the operator determines or discovers
the condition.
    (b) Separate conditions. An operator may describe separate
conditions in a single report if the conditions are closely related.
    23. Section 195.57 is revised to read as follows:

Sec.  195.57  Filing offshore pipeline condition reports.

    Each operator must, within 60 days after completion of the
inspection of all its underwater pipelines subject to Sec.  195.413(a),
file an Offshore Pipeline Condition Report on DOT Form PHMSA [INSERT
FORM NUMBER].
    24. Section 195.58 is revised to read as follows:

Sec.  195.58  Report submission requirements.

    (a) General. An operator must submit each report required by this
part electronically to PHMSA at http://opsweb.phmsa.dot.gov. If
electronic reporting imposes an undue burden and hardship, the operator
must submit a written request for an alternative reporting method to
the Information Resources Manager, Office of Pipeline Safety, Pipeline
and Hazardous Materials Safety Administration, PHP-10, 1200 New Jersey
Avenue, SE., Washington, DC 20590. The request must describe the undue
burden and hardship and be sent at least 60 days prior to the due date
of the report.
    (b) Safety related conditions. An operator must submit concurrently
to the applicable State agency a safety-related condition report
required by Sec.  191.23 of this subchapter for an intrastate pipeline
or when the State agency acts as an agent of the Secretary with respect
to interstate pipelines.

Sec.  195.62  [Removed]

    25. Section 195.62 is removed.
    26. Section 195.63 is revised to read as follows:

Sec.  195.63  OMB control number assigned to information collection.

    The control numbers assigned by the Office of Management and Budget
to the hazardous liquid pipeline information collection pursuant to the
Paperwork Reduction Act are 2137-0047, 2137-0601, 2137-0604, 2137-0605,
2137-0618, and 2137-0622.
    27. Section 195.64 is added to read as follows:

Sec.  195.64  National Registry of Pipeline and LNG Operators.

    (a) OPID Request. Each operator must obtain from PHMSA an Operator
Identification Number (OPID). An OPID is assigned to an operator for
the pipeline or pipeline system for which the operator has primary
responsibility. To obtain an OPID or a change to an OPID, an operator
must submit a complete and accurate OPID Questionnaire (Insert form
number). The OPID Questionnaire must be transmitted electronically to
PHMSA through the National Registry of Pipeline and LNG Operators at
http://opsweb.phmsa.dot.gov. This requirement applies to all operators,
including operators who have already been assigned an OPID.
    (b) Changes. Each operator must notify PHMSA electronically through
the National Registry of Pipeline and LNG Operators at http://
opsweb.phmsa.dot.gov, 60 days prior to any of the following events:
    (1) A change in the name of the operator;
    (2) A change in the operating entity responsible for operating an
existing pipeline, pipeline segment, or pipeline facility;
    (3) The acquisition or divestiture of 50 or more miles of pipeline
or pipeline system regulated by PHMSA;
    (4) Pipeline rehabilitation, pipe replacement, or pipeline system
changes to upgrade/uprate a pipeline or pipeline facility costing $5
million or more;
    (5) Construction of 10 or more miles of a new hazardous liquid
pipeline or any project involving a pipeline or pipeline facility
costing $5 million or more; or
    (6) The acquisition or divestiture of an existing pipeline facility
or construction of a new pipeline facility.
    (c) Reporting. An operator must use the OPID issued by PHMSA for
all reporting requirements covered under this subchapter and for
submissions to the National Pipeline Mapping System.
    (d) Undue burden. If electronic reporting imposes an undue burden
and hardship, an operator must submit written request for an
alternative reporting method mitted to the Information Resources
Manager, Office of Pipeline Safety, Pipeline and Hazardous Materials
Safety Administration, PHP-10, 1200 New Jersey Avenue, SE. Washington
DC 20590. The request must describe the undue burden and hardship.

    Issued in Washington, DC, on June 24, 2009.
Jeffrey D. Wiese,
Associate Administrator for Pipeline Safety.
[FR Doc. E9-15532 Filed 7-1-09; 8:45 am]

BILLING CODE 4910-60-P


[Federal Register Volume 77, Number 220 (Wednesday, November 14, 2012)]
[Notices]
[Page 67862]
[FR Doc No: 2012-27670]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Notice of Availability of the Final Environmental Assessment (EA)
and Finding of No Significant Impact/Record of Decision (FONSI/ROD) for
the Aberdeen Regional Airport in Aberdeen, South Dakota

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of Availability of a Final EA and FONSI/ROD.

-----------------------------------------------------------------------

SUMMARY: The FAA has issued the final EA final Environmental Assessment
(EA) for the Aberdeen Regional Airport Updates and FONSI/ROD for the
proposed decoupling of runways 13/31 and 17/35 and fill on airport
wetlands and associated actions for Aberdeen Regional Airport. The EA
was prepared in accordance with the National Environmental Policy Act
(NEPA) of 1969, as amended, FAA Orders 1050.1E, ``Environmental
Impacts: Policies and Procedures'' and FAA Order 5050.4B, ``NEPA
Implementing Instructions for Airport Actions''.
    Point of Contact: Mr. Al Fenedick, Environmental Protection
Specialist, FAA Regional Office, Suite 315, 2300 East Devon Avenue, Des
Plaines, Illinois 60018, telephone number<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The FAA is issuing a final EA for the
Aberdeen Regional Airport Updates and FONSVROD that evaluated the
potential environmental impacts associated with the proposed decoupling
of Runways13/31 and 17/35 and fill on airport wetlands actions at
Aberdeen Regional Airport located in Aberdeen, South Dakota. Based on
the analysis contained in the final EA, the FAA has determined the
selected alternative has no associated significant impacts to resources
identified in accordance with FAA Order I050.IE, Environmental Impacts:
Policies and Procedures and FAA Order 5054.4B, National Environmental
Policy Act Implementing Instructions for Airport Actions. Therefore, no
environmental impact statement will be prepared. The proposed
decoupling of runways 13/31 and 17/35 and fill on airport wetlands
project is needed to enhance the utility and safety of the Aberdeen
Regional Airport for current and projected levels of aviation by the
design aircraft family.
    Four alternatives were studied for meeting the purpose and need.
Three of the four alternatives were reviewed, analyzed, discarded due
to the degree of environmental impacts and not meeting purpose and
need. A detailed discussion is in the V. Alternatives Discarded Section
of the FONSVROD. The selected alternative is one of four considered in
the final EA. The selected alternative consists of addressing the
identified needs: Incompatible land use, non-standard runway
configuration, and hazardous wildlife habitat.
    The selected alternative includes the:
    (I.) Unconditional approval of the Airport Layout Plan (ALP) for
the development listed in the EA and the decision document. (2.) Issue
final airspace determinations for the development listed on the ALP.
(3.) Eligibility for Federal grants-in-aid funds for eligible items.
(4.) Approval of design and use of air traffic procedures needed to
implement the proposed action. (5.) FAA Finding of ``No Historic
Properties Affected'' for the Proposed Action. (6.) FAA findings of
``may affect, not likely to adversely affect'' for the Topeka shiner
and Whooping Crane endangered species. (7.) FAA Finding of ``No
Impact'' to floodplains. (8.) Wetland finding that there is no
practicable alternatives to such construction and the proposed action
includes all practicable measure to minimize harm to wetlands. (9.)
Appropriate permits and mitigation will be needed before disbursing
Federal funds. These documents will be available for public review
during normal business hours at:
    Federal Aviation Administration Bismarck ADO, 2301 University
Drive, Bldg. 23B, Bismarck, North Dakota 58504.
    Aberdeen Regional Airport, Manager's Office, Terminal Building, E
Highway 12, Aberdeen, SD 57401.
    Aberdeen City Hall, Engineering Department, 123 S. Lincoln St.,
Aberdeen, SD 57401.
    Alexander Mitchell Library, 519 S. Kline St., Aberdeen, SD 57401.

    Issued in Bismarck, North Dakota, October 17, 2012.
Andrew J. Peck,
Acting Manager, Manager, Bismarck Airport District Office FAA, Great
Lakes Region.
[FR Doc. 2012-27670 Filed 11-13-12; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: November 26, 2008 (Volume 73, Number 229)]
[Notices]
[Page 72089-72091]
[DOCID:fr26no08-110]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58978; File No. SR-CBOE-2008-116]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend CBOE Rules Relating to an Expansion of the SPX
Trading Crowd

November 19, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on November 19, 2008, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its rules relating to the physical
expansion of a trading crowd. The text of the proposed rule change is
available on the Exchange's Web site (http://www.cboe.org/Legal), at
the Exchange's Office of the Secretary and at the Commission's Public
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in Sections A, B, and C below, of the most
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    CBOE recently completed an expansion of the back area of the SPX
options trading crowd, which will result in a number of new trading
spaces opening up in the trading crowd. In anticipation of the
expansion, CBOE is filing this proposed rule change to describe the
objective processes that it may utilize to determine which individuals
can use one of the new trading spaces that are available, provided the
demand for trading spaces in the trading crowd exceeds the supply.
    Historically, an order in time process has generally been applied
to determine which individuals can use new trading spaces in a crowd
located on the CBOE trading floor. Recently CBOE codified in its rules
pursuant to Commission approval objective processes pertaining to the
issuance of new Interim Trading Permits (``ITPs'') through either a
random lottery process or order in time process, in anticipation that
the demand for the ITPs would exceed the supply.\5\ In the event the
demand for trading spaces in the back area of the SPX trading crowd
exceeds the supply, CBOE is adopting similar processes to determine
which individuals can use one of the new trading spaces. Specifically,
CBOE may choose to utilize either a random lottery process or an order
in time process, which are the two objective processes that CBOE
recently codified for the issuance of ITPs. CBOE notes that when it
adopted these two processes for the issuance of ITPs, the rule filing
did not receive any negative comments from its members relating to
these objective processes. Instead, CBOE believes that the issuance of
ITPs using the random lottery process was a positive experience, and
now seeks to apply one of these two processes in the context of the
physical expansion of the SPX trading crowd.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 58178 (July 17,
2008), 73 FR 42634 (July 22, 2008), approving SR-CBOE-2008-40.
---------------------------------------------------------------------------

    Under either of the processes that it chooses to utilize, CBOE
would announce a deadline by which an approved individual CBOE member
who desires to use the trading space can submit an indication of
interest for one of the available trading spaces in the back area of
the SPX trading crowd. Only those individuals who are approved members
of CBOE would be eligible to submit an indication of interest, and the
individual who would be using the trading space must be an effective
member under CBOE Rule 3.10 (i.e., must be on a membership \6\), a
temporary member, or ITP Holder at the time of the random lottery
process or the order in time process. If an existing member of the SPX
trading crowd submits an indication of interest, is ``selected''
through the random lottery process or the order in time process and
chooses a new trading space in the back area of the SPX trading crowd,
that member's prior trading space would be deemed vacant.
---------------------------------------------------------------------------

    \6\ Being ``on a membership'' means that the member has
satisfied the applicable requirements to obtain a membership and a
membership has been released to that member by the Exchange's
Membership Department.
---------------------------------------------------------------------------

    After the deadline for indications of interest has passed, the
available trading spaces in the back area of the SPX trading crowd
would be allocated through a random lottery process or an order in time
process.\7\ Each individual member who is ``selected'' through either
the random lottery process (based on the lottery selection sequence) or
the order in time process (based on time sequence) would choose the new
trading space where he or she would like to stand.
---------------------------------------------------------------------------

    \7\ A member who selects a trading space following the random
lottery process or the order in time process does not obtain any
ownership right in that particular trading space. In the event a
space dispute should arise, the crowd space dispute resolution
procedures in Rule 24.21 will continue to apply.
---------------------------------------------------------------------------

    CBOE believes that these processes would provide for the issuance
of new trading spaces in an objective manner and consequently would
provide for fair access to the Exchange.
2. Statutory Basis
    The proposed rule change would permit the Exchange to allocate new
trading spaces in the SPX trading crowd pursuant to one of two
objective processes: a random lottery process or an order in time
process. CBOE notes that both of these processes have been codified in
connection with the issuance of ITPs in a prior filing that was
approved by the Commission. As a result, the Exchange believes the
proposed rule change is consistent with the Act and the rules and
regulations under the Act applicable to a national securities exchange
and, in particular, the requirements of Section 6(b) of the Act.\8\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) Act \9\ requirements that the rules
of an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts and, in general, to
protect investors and the public interest. CBOE believes that these
processes would provide for the issuance of new trading spaces in an
objective manner and consequently would provide for fair access to the
Exchange.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    The Exchange neither solicited nor received comments on the
proposal.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing rule does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay because it has now
completed the expansion of its SPX trading crowd and has recently come
to believe that the demand for additional trading spaces may exceed the
newly available supply. To respond to this possibility, CBOE would like
the flexibility to utilize a

lottery process when it allocates the additional space in the next
several days. CBOE notes that its proposed rule change is a copy of its
current lottery process applicable to the allocation of ITPs, which the
Commission previously approved, and would apply that methodology in the
context of expanding its SPX trading crowd.
---------------------------------------------------------------------------

    \12\ Id.
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public
interest.\14\ In particular, the Commission believes that waiver of the
operative delay will promote competition and efficiency by providing
CBOE with the option to utilize its new lottery process to manage the
expansion of the SPX trading crowd, which it anticipates allocating in
the next several days. Waiving the operative delay will enable CBOE to
use either this new process or the historically-utilized first in time
process as it deems appropriate, and will enable CBOE to allocate the
new space promptly through a fair and objective methodology. For these
reasons, the Commission designates the proposed rule change as
operative upon filing.
---------------------------------------------------------------------------

    \14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's effect on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2008-116 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2008-116. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
am and 3 pm. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-CBOE-2008-116 and should be
submitted on or before December 17, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-28045 Filed 11-25-08; 8:45 am]

BILLING CODE 8011-01-P