FR 2025-05108

The document from the Federal Energy Regulatory Commission (FERC) seeks public input on its data collection practices from oil pipeline companies through FERC Forms 6 and 6-Q. These forms are used by FERC to ensure that the rates charged for oil transportation are fair and to keep an eye on the financial health of the pipeline companies.

General Summary

FERC is asking for feedback on forms required from oil pipelines, specifically FERC Form Nos. 6 (an annual report) and 6-Q (a quarterly report), both of which help the agency monitor industry practices and pricing. The aim is to continue collecting this data for another three years without changing the current reporting requirements. Public comments can help FERC refine their processes and extend the reporting mandate through 2025.

Significant Issues or Concerns

Several issues present in the document may affect how the public and stakeholders interpret it:

1. Cost Clarity: The document lacks detailed information about the costs associated with processing and managing these forms, complicating assessments of potential financial inefficiencies or waste.

2. Threshold Values Justification: It is unclear why specific revenue thresholds for reporting have been set as they are and whether they remain appropriate for today's industry climate.

3. Jargon and Complexity: The document features industry-specific jargon and complex regulatory references without adequate explanation, making it challenging for those unfamiliar with industry specifics to grasp the content effectively.

4. Burden and Cost Explanation: There is a mention of costs related to form submissions based on an average salary of $104/hour, but the breakdown and relevance of this figure to the reader are not well explained.

5. Accessibility for Filing Methods: The document does not address measures for ensuring that organizations with limited technological capabilities can easily file electronically, raising concerns about accessibility.

Public Impact

The document primarily affects the oil pipeline sector and associated regulation standards in the U.S., potentially impacting a wide range of stakeholders. For the general public, particularly consumers, ensuring fair transportation rates for oil products is important as it can affect overall market prices for a variety of goods dependent on oil. Any inefficiency or improper handling in reporting could translate into higher costs for consumers.

Stakeholder Impact

For the oil pipeline companies, ongoing reporting requirements present administrative and financial burdens, which the industry must balance against the benefits of transparency and regulatory compliance. The need to potentially use projected data for new companies could impose additional challenges, particularly for startups that must anticipate revenue without historical data.

Regulatory bodies and state commissions, which rely on this data for further oversight and compliance checks, may find themselves adjusting to any changes resulting from this call for comments. Their need for accurate, reliable data underscores the importance of refining how this information is collected and used.

In summary, while FERC's request for comments signifies a step towards transparency and improvement, it also highlights several areas where greater clarity and accessibility would enhance understanding and compliance, ultimately serving the public interest more effectively.

The document provides information about financial thresholds related to the reporting requirements for oil pipeline carriers. Specifically, oil pipeline carriers with annual jurisdictional operating revenues of $500,000 or more for three consecutive years are required to file FERC Form No. 6, which is the Annual Report of Oil Pipeline Companies. Furthermore, those oil pipeline carriers with revenues between $350,000 and $500,000 must prepare certain portions of FERC Form No. 6, while those with revenues of $350,000 or less only need to file a specific analysis schedule.

One issue identified is the lack of information concerning the appropriateness of the $350,000 and $500,000 thresholds. The document does not provide a rationale for setting these thresholds at these specific amounts, nor does it discuss whether these values are still suitable given potential industry changes since their establishment. This absence of context could leave stakeholders uncertain about whether these thresholds are based on current economic conditions or outdated benchmarks.

In terms of costs, the document notes that the burden calculation for the respondents involves a Commission-wide average salary of $104.00 per hour. This suggests an estimation of the time and financial resources needed for companies to comply with the reporting requirements. However, the document does not break down how this hourly rate was determined, nor how it is specifically relevant to the potential respondents, which is a noted issue. This lack of detailed breakdown makes it difficult to fully understand the financial impact on the companies that must comply with these filing obligations.

Additionally, the document does not explicitly address the costs associated with managing and processing FERC Form Nos. 6 and 6-Q beyond the mentioned average salary. This omission can impact stakeholders' ability to assess if there is any unnecessary or wasteful spending associated with these activities. Without this information, it is challenging to evaluate whether the resources allocated to the management and processing of these forms are being utilized effectively.

Overall, while financial figures are presented, there is a notable absence of detailed information or justification that would aid in understanding the broader financial implications for the entities involved. This lack of clarity on financial allocations and thresholds may hinder comprehensive public commentary and evaluation.