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ed State agencies, and published in the FEDERAL REGISTER. After notice, a hearing is held. The requirements for applications for exemptions pursuant to section 1(c) of the act (the Hinshaw Amendment) are set out in Part 152 of this chapter.

§3.162 Export or import of natural gas.

Applications for authorization to export or import natural gas from or to the United States, pursuant to section 3 of the act, for Presidential Permits under Executive Order 10485, described in §3.181, and for certificates of public convenience and necessity pursuant to section 7 necessary in connection therewith, described in §3.168 are studied and recommendations are made by the BNG, the OCA and the OGC. Notice is given to each State commission and gas company affected and published in the FEDERAL REGISTER. A hearing may be held. See also Part 159 of this chapter with respect to certain filing fees. Such authorizations are issued simultaneously with the requisite Presidential Permits.

[Order No. 351, 32 FR 10064, July 8, 1967, as amended by Order No. 564, 42 FR 17451, Apr. 1, 1977]

§3.163 Rate schedules.

Rate schedules, and tariffs and changes therein filed under section 4 of the act and any accompanying requests for waiver of the 30- to 90-day prior notice provision, are referred to the BNG and OCA for study and recommendation, with the participation of the OGC on the legal aspects thereof. Any complaints under section 4(e) of the act and any answers thereto, are similarly referred. Upon such complaint or upon its own motion, the Commission may suspend the operations of rate schedules or tariff provisions proposing changes, after notice and a statement of reasons therefor Staff studies and recommendations are made by the BNG, OPA, OCA, and OGC. After notice, a hearing may be held pursuant to sections 4(e) and 15 of the act.

[Order No. 351, 32 FR 10064, July 8, 1967, as amended by Order No. 564, 42 FR 17451, Apr. 1, 1977]

§3.164 Fixing rates and charges.

Proceedings to determine just and reasonable rates, charges, etc., under section 5(a) of the act may be initiated by Commission order upon its own motion or upon complaint served on the parties and interested State agencies and published in the FEDERAL REGISTER. Staff studies and recommendations in such proceedings are made by the BNG, OPA, OCA, and OGC. After notice, a hearing may be held.

[Order No. 351, 32 FR 10064, July 8, 1967, as amended by Order No. 564, 42 FR 17451, Apr. 1, 1977]

§3.165 Ascertainment of cost and depreciation. Investigations

to

the

ascertain actual legitimate cost of the properties of natural gas companies and depreciation therein, pursuant to section 6(a) of the act, are made by the OCA, with the participation of the OGC on the legal aspects thereof. Such investigations are usually made in connection with rate proceedings under sections 4 and 5, or accounting proceedings under section 8, of the act and frequently involve field studies of records and investigation of the properties of natural gas companies. After notice, a hearing may be held.

[Order No. 351, 32 FR 10064, July 8, 1967, as amended by Order No. 564, 42 FR 17451, Apr. 1, 1977]

§3.166 Extension of facilities.

Action to require the extension or improvement of transportation facilities, the establishment of physical connection between facilities, and the sale of natural gas under section 7(a) of the act, may be initiated by application or by the Commission upon its own motion. An application seeking a Commission order directing such attachment and sale may be filed in accordance with the provisions of Part 156 of this chapter. Notice is given to each company affected and interested State agencies, and published in the FEDERAL REGISTER. Staff studies and recommendations are made by the BNG, OCA, OPA, and OGC. After notice, a hearing may be held. See

Part 159 of this chapter relative to certain filing fees.

[Order No. 351, 32 FR 10064, July 8, 1967, as amended by Order No. 564, 42 FR 17451, Apr. 1, 1977]

§3.167 Abandonment.

Applications for approval of abandonment of facilities or service pursuant to section 7(b) of the act are referred to the BNG, OCA, and OGC for studies and recommendations. Notices thereof are served upon the parties and interested State agencies and published in the FEDERAL REGISTER. After notice, a hearing is held.

[Order No. 351, 32 FR 10064, July 8, 1967, as amended by Order No. 564, 42 FR 17451, Apr. 1, 1977]

§3.168 Certificates.

Applications

for certificates of public convenience and necessity authorizing the construction, extension, acquisition, or operation of facilities or the sale of natural gas under sections 7(c) and 7(e) of the act are referred to the BNG, OCA and OGC for studies and recommendations, with the participation of OPA After notice, a hearing is held. Part 157 of this chapter applies. Notice of the application is given to the parties and interested State agencies, and published in the FEDERAL REGISTER. See Part 159 of this chapter relative to filing fees.

[Order No. 351, 32 FR 10064, July 8, 1967, as amended by Order No. 564, 42 FR 17451, Apr. 1, 1977]

§3.169 State compacts.

The information required under section 11 of the act concerning matters covered in any proposed State compact on natural gas is assembled and maintained by the BNG. Inquiries concerning such information may be made to the Secretary.

§3.170 Approved forms, etc.

(a) The following is a list of approved forms, statements, and reports, under the Natural Gas Act, descriptions of which have been published in Subchapter G, Parts 250 and 260 of this chapter.

(1) Certificate of service (§ 250.1 of this chapter).

(2) Form of proposed cancellation of tariff or part thereof (§ 250.2 of this chapter).

(3) Form of proposed cancellation or termination of contract or part thereof (§ 250.3 of this chapter).

(4) Form of certificate of adoption (§ 250.4 of this chapter).

(5) Form of contract summary to be filed by all applicants for certificates of public convenience, including successors in interest (§ 250.5 of this chapter).

(6) Form of application to be filed by distributor under section 7(a) seeking gas service of not more than 2,000 Mcf per day (3d year of operation) for a single community (§ 250.6 of this chapter).

(7) Form of contract summary for abandonment applications (§ 250.7 of this chapter).

(8) Summary to accompany rate schedule filed by an assignee as successor in interest (§ 250.8 of this chapter).

(9) Form of notice of proposed cancellation or termination of independent producer rate schedule or part thereof, where no new schedule is to be filed in its place (§ 250.9 of this chapter).

(10) Application for small producer certificate of public convenience and necessity (§ 250.10 of this chapter).

(11) Annual statement for independent producers holding small producer certificates (§ 250.11 of this chapter).

(12) Form No. 2, annual report for natural gas companies (Class A and Class B) (§ 260.1 of this chapter).

(13) Form No. 2-A, annual report for natural gas companies (Class C and Class D) (§ 260.2 of this chapter)

(14) Form No. 14, annual report for importers and exporters of natural gas (§ 260.4 of this chapter).

(15) Form No. 11, natural gas pipeline company monthly statement (§ 260.3 of this chapter).

(16) [Reserved]

(17) Form No. 108,' rate schedule analysis on a continuing current basis. (18) Form No. 15 and 15-A, annual report of gas supply and deliverability

'Form No. 108 is filed as part of the original document.

for certain natural gas companies (§§ 260.7, 260.7a of this chapter). (19) System flow diagrams (§ 260.8 of this chapter).

requirements

for

(20) General annual reports to stockholders and others (§ 260.100 of this chapter).

(21) Form No. 16, report of gas supply and requirements (§ 260.12 of this chapter).

(22) Form No. 16, report of gas supply and requirements (§ 260.12 of this chapter).

(23) Escrow agreements (§ 250.12 of this chapter).

(24) Form No. 334, reserves dedication report (§ 250.13 of this chapter).

(25) Report by natural gas pipeline companies on service interruptions occurring on the pipeline system (§ 260.9 of this chapter).

(26) Original cost statement of utility property (§ 260.200 of this chapter). (27) Form No. 64, Report of Producer Expenditures, Exploration and Development Activity, Production, Reserve Additions, and Revenues of each person found by the Commission to be a “natural-gas company” within the meaning of the Natural Gas Act, and their jurisdictional affiliates and subsidiaries as defined in 18 CFR 157.40(a)(2) of the Commission's Regulations, (§ 261.21 of this chapter).

(28) Form No. 69 report of alternate fuel demand due to natural gas curtailments (§ 260.15 of this chapter).

(29) Form No. 8, Underground Gas Storage Report (§ 260.11 of this chapter).

(30) Form No. 45, report of new nonjurisdictional sales of natural (§ 260.20 of this chapter).

gas

(31) Form No. 40, Natural Gas Companies Annual Report of Proved Domestic Gas Reserves, Including Those of Any Affiliate (Associate) or Subsidiary of Person Found By the Commission to be a "natural-gas company" within the meaning of the Natural Gas Act.

(b) The approved forms in paragraph (a) of this section are published and described in the cited regulations, copies of which may be obtained from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Copies of

statements and reports listed in paragraph (a) of this section are available for inspection and copying from of the OPI of the Commission.

[Order 351, 32 FR 10064, July 8, 1967, as amended by Order 417-A, 37 FR 18524, Sept. 13, 1972; Order 471, 38 FR 4246, Feb. 12, 1973; Order 489, 38 FR 23516, Aug. 31, 1973; Order 502, 39 FR 3821, Jan. 30, 1974; Order No. 531, 40 FR 27647, July 1, 1975; Order No. 534, 40 FR 43894, Sept. 24, 1975; Order No. 543, 40 FR 58632, Dec. 18, 1975; Order No. 531(c), 41 FR 21443, May 26, 1976; Order No. 556, 41 FR 52443, Nov. 30, 1976; Order No. 564, 42 FR 17451, Apr. 1, 1977; Order No. 556-A, 42 FR 41276, Aug. 16, 1977; Order No. 526-B, 42 FR 38560, July 29, 1977; Order No. 526-B, 42 FR 58737, Nov. 11, 1977]

§3.171 Other matters.

Information concerning any function, form, or procedure of the Commission under the Natural Gas Act, not described in §§ 3.161 to 3.170, inclusive, may be secured upon written request to the Secretary.

FUNCTIONS UNDER OTHER
AUTHORIZATIONS

§3.181 Executive Order 10485.

(a) Applications for construction, operation, maintenance, or connection of facilities for the transmission of electric energy between the United States and foreign countries, under Executive Order 10485 (3 CFR 1949-53 Comp., p. 970), are referred to the PWR and to the OGC for studies and recommendations. The Commission thereafter acts upon the basis of the application, staff studies, recommendations of the Secretaries of State, Defense, and Treasury and other pertinent data. If granted, the permit is signed by the Chair

man.

(b) Applications for construction, operation, maintenance, or connection of facilities for the exportation and importation of natural gas from or into the United States are referred to the BNG and to the OGC for studies and recommendations. Thereafter they are processed in the manner described in paragraph (a) of this section, for applications for the exportation of electric energy.

§3.182 Flood Control and River and Harbor Acts.

Beginning with the Flood Control Act of 1938 (33 U.S.C. 701j) and the Flood Control and River and Harbor Acts of subsequent years, the Commission studies plans for proposed water resources projects to be constructed by the Department of the Army, the Department of the Interior, or other Federal agencies, and makes recommendations concerning the installation of penstocks and similar facilities for the development of hydroelectric power.

§3.183 Federal power marketing acts.

The Bonneville Project Act (16 U.S.C. 832), the Eklutna Project Act (64 Stat. 382), the Falcon Dam Act, as amended (68 Stat. 255, 77 Stat. 475), and the Flood Control Act of 1944 (58 Stat. 887, 890) provide that the Commission review and, if satisfactory, confirm and approve rates proposed for the sale of power generated at projects constructed under these and other acts. The Commission also allocates the costs of certain of these projects and participates in the allocation of costs of others. The Federal Columbia River Transmission System Act (16 U.S.C. 837; 88 Stat. 1376) provides that the Commission review and, if satisfactory, confirm and approve rates for the transmission of non-Federal power over the Federal transmission system. [Order No. 564, 42 FR 17451, Apr. 1, 1977] §3.184 Water Resources Planning Act.

The Commission participates, through its Chairman, as a permanent member of the Water Resources Council, in the administration of the Water Resources Planning Act (42 U.S.C. 1962), including the review of comprehensive river basin plans for water and related land resources development.

§3.185 Outer Continental Shelf Lands Act.

Section 5 of this Act (43 U.S.C. 1334) provides for the grant of rights-of-way across submerged lands for pipelines for the transportation of natural gas, oil, sulphur or other mineral. Such grants are upon condition that the gas pipelines shall transport gas produced

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ACCOUNTABILITY FOR CLASSIFIED MATERIAL

Sec.

3a.71 Accountability for classified material.

TRANSMITTAL OF CLASSIFIED MATERIAL 3a.81 Transmittal of classified material. DATA INDEX SYSTEM

3a.91 Data index system.

AUTHORITY: Executive Order 11652 (37 FR 5209, March 10, 1972), National Security Council Directive of May 17, 1972 (37 FR 10053, May 19, 1972), section 309 of the Federal Power Act (49 Stat. 858, 859; 16 U.S.C. 825h) and section 16 of the Natural Gas Act (52 Stat. 830; 15 U.S.C. 7170).

SOURCE: Order 470, 38 FR 5161, Feb. 26, 1973.

§ 3a.1 Purpose.

GENERAL

This Part 3a describes the Federal Power Commission program to govern the classification, downgrading, declassification, and safeguarding of national security information. The provisions and requirements cited herein are applicable to the entire agency except that material pertaining to personnel security shall be safeguarded by the Personnel Security Officer and shall not be considered classified material for the purpose of this Part.

§ 3a.2 Authority.

Official information or material referred to as classified in this part is expressly exempted from public disclosure by 5 U.S.C. 552(b)(1). Wrongful disclosure thereof is recognized in the Federal Criminal Code as providing a basis for prosecution. Executive Order 11652, March 8, 1972 (37 FR 5209, March 10, 1972), identifies the information to be protected, prescribes classification, downgrading, declassification, and safeguarding procedures to be followed and establishes a monitoring system to insure its effectiveness. National Security Council Directive Governing the Classification, Downgrading, Declassification and Safeguarding of National Security Information, May 17, 1972 (37 FR 10053, May 19, 1972), implements Executive Order 11652.

CLASSIFICATION

§ 3a.11 Classification of official information.

(a) Security Classification Categories. Information or material which requires protection against unauthorized disclosure in the interest of the national defense or foreign relations of the United States (hereinafter collectively termed "national security") is classified Top Secret, Secret or Confidential, depending upon the degree of its significance to national security. No other categories are to be used to identify official information or material requiring protection in the interest of national security, except as otherwise expressly provided by statute. These classification categories are defined as follows:

(1) Top Secret. Top Secret refers to national security information or material which requires the highest degree of protection. The test for assigning Top Secret classification is whether its unauthorized disclosure could reasonably be expected to cause exceptionally grave damage to the national security. Examples of “exceptionally grave damage" include armed hostilities against the United States or its allies; disruption of foreign relations vitally affecting the national security; the compromise of vital national defense plans or complex cryptologic and communications intelligence systems; the revelation of sensitive intelligence operations; and the disclosure of scientific or technological developments vital to national security. This classification is to be used with the utmost restraint.

(2) Secret. Secret refers to national security information or material which requires a substantial degree of protection. The test for assigning Secret classification shall be whether its unauthorized disclosure could reasonably be expected to cause serious damage to the national security. Examples of "serious damage" include disruption of foreign relations significantly affecting the national security; significant impairment of a program or policy directly related to the national security; revelation of significant military plans or intelligence operations; and compromise of signifi

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