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

(16) Form No. 301-A, statement of sales and revenues of independent producers (§ 260.5 of this chapter).

(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 for certain natural gas companies (§§ 260.7, 260.7a of this chapter).

(19) System flow diagrams (§ 260.8 of this chapter).

(20) General requirements for 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 juridictional affiliates and subsidiaries as defined in 18 CFR 157.40 (a) (2) of the Commision'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 gas (§ 260.20 of this chapter).

(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. Gov

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

ernment 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]

§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 Chairman.

(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 Depart

ment 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 in the vicinity of the line in such proportionate amounts as the Federal Power Commission shall determine after full hearing. §3.186 Information relative to miscellaneous functions.

Excerpts from the statutes referred to in §§ 3.181 through 3.185 are included in the appendices to the pamphlet editions of the Federal Power Act and the Natural Gas Act, copies of which may be obtained from the Office of Public Information or the Superintendent of

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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.

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(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 significant scientific or technological developments relating to national security. The classification Secret shall be sparingly used.

(3) Confidential. Confidential refers to national security information or material which requires protection, but not to the degree described in paragraphs (a) (1) and (2) of this section. The test for assigning Confidential classification shall be whether its unauthorized disclosure could reasonably be expected to cause damage to the national security.

(b) Classified information will be assigned the lowest classification consistent with its proper protection. Documents will be classified according to their own content and not necessarily according to their relationship to other documents.

(c) The overall classification of a file or group of physically connected documents will be at least as high as that of the most highly classified document therein. When put together as a unit or complete file, the classification of the highest classified document contained therein will be marked on a cover sheet, file folder (front and back), or other similar covering, and on any transmittal letters, comments, or endorsements.

(d) Administrative Control Designations. These designations are not security classification designations, but are used to indicate a requirement to protect ma

terial from unauthorized disclosure. Material identified under the provisions of this subparagraph will be handled and protected in the same manner as material classified Confidential except that it will not be subject to the central control system described in § 3a.71. Administrative Control designations are:

(1) For Official Use Only. This designation is used to identify information which does not require protection in the Interest of national security, but requires protection in accordance with statutory requirements or in the public interest and which is exempt from public disclosure under 5 U.S.C. 552(b) and § 1.36 (c) (14) of the rules of practice and procedure of the Federal Power Commission (18 CFR 1.36(c) (14)).

(2) Limited Official Use. This administrative control designation is used by the Department of State to identify nondefense information requiring protection from unauthorized access. Material identified with this notation must be limited to persons having a definite need to know in order to fulfill their official responsibilities.

(e) A letter or other correspondence which transmits classified material will be classified at a level at least as high as that of the highest classified attachment or enclosure. This is necessary to indicate immediately to persons who receive or handle a group of documents the highest classification involved. If the transmittal document does not contain classified information, or if the information in it is classified lower than in an enclosure, the originator will include a notation to that effect. (See § 3a.31(e)). § 3a.12 Authority to classify official information.

(a) The authority to classify information or material originally under Executive Order 11652 is restricted to those offices within the executive branch which are concerned with matters of national security, and is limited to the minimum number absolutely required for efficient administration.

(b) The authority to classify information or material originally as Top Secret is to be exercised only by such officials as the President may designate in writing and by the heads of the following departments and agencies and such of their principal staff officials as the heads of these departments and agencies may designate in writing;

Such offices in the Executive Once of the President as the President may designate in writing.

Central Intelligence Agency.
Atomic Energy Commission.
Department of State.

Department of the Treasury.

Department of Defense.

Department of the Army.
Department of the Navy.
Department of the Air Force.

U.S. Arms Control and Disarmament Agency
Department of Justice.

National Aeronautics and Space Administration.

Agency for International Development.

(c) The authority to classify information or material originally as Secret is exercised only by:

(1) Officials who have Top Secret classification authority under 3a.11(b); and

(2) The heads of the following de partments and agencies and such principal staff officials as they may designate in writing:

Department of Transportation.

Federal Communications Commission.
Export-Import Bank of the United States
Department of Commerce.

U.S. Civil Service Commission.
U.S. Information Agency.

General Services Administration.

Department of Health, Education, and We fare.

Civil Aeronautics Board.

Federal Maritime Commission.
Federal Power Commission.
National Science Foundation.
Overseas Private Investment Corporation.

(d) The authority to classify infor mation or material originally as Confidential is exercised by officials who have Top Secret or Secret classification authority.

(e) Pursuant to Executive Order 11652, the authority to classify information or material originally as Secret or Confidential in the FPC shall be exercised only by the Chairman, the Vice Chairman. and the Executive Director When an incumbent change occurs in these positions, the name of the new incumbent will be reported to the Interagency Classification Review Committee. NSC.

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on the basis of national security considerations. In no case shall information be classified in order to conceal inefficiency or administrative error, to prevent embarrassment to the FPC or any of its officials or employees, or to prevent for any other reason the release of information which does not require protection in the interest of national security.

(b) Each classified document shall show on its face its classification and whether it is subject to or exempt from the General Declassification Schedule (§ 3a.22(b)). It also shall show the office of origin, the date of preparation and classification and, to the extent practicable, be so marked as to indicate which portions are classified. at what level. and which portions are not classified in order to facilitate excerpting and other use. Material which merely contains references to classified materials, which references do not reveal classified information, shall not be classified.

(c) Material classified under this part shall indicate on its face the identity of the highest authority authorizing the classification. Where the individual who signs or otherwise authenticates a document or item has also authorized the classification, no further annotation as to his identity is required.

(d) Classified information or material furnished to the United States by a foreign government or international organization shall either retain its original classification or be assigned a U.S. classification. In either case, the classification shall assure a degree of protection equivalent to that required by the government or international organization which furnished the information or material.

(e) Whenever information or material classified by an authorized official is incorporated in another document or other material by any person other than the classifier, the previously assigned security classification category shall be reflected thereon together with the identity of the classifier.

(f) As a holder of classified information or material, the FPC shall observe and respect the classification assigned by the originator. If it is believed that there is unnecessary classification; that the assigned classification is improper, or that the document is subject to declassification under Executive Order

11652, the FPC will so inform the originator who is then required by the Executive Order to reexamine the classification.

DECLASSIFICATION AND DOWNGRADING

§ 3a.21

Authority to downgrade and declassify.

(a) The authority to downgrade and declassify information or material shall be exercised as follows:

(1) Information or material may be downgraded or declassified by the official authorizing the original classification, by a successor or by a supervisory official of either.

(2) Downgrading and declassification authority may also be exercised by an official specifically authorized under regulations issued by the head of the Department listed in sections 2 A and B of Executive Order 11652, March 10, 1972.

(3) In the case of classified information or material transferred pursuant to statute or Executive order in conjunction with a transfer of function and not merely for storage purposes, the receiving department or agency shall be deemed to be the originating department or agency for all purposes under Executive Order 11652, including downgrading and declassification.

(4) In the case of classified information or material not officially transferred under subparagraph (3) of this paragraph, but originated in a department or agency which has since ceased to exist, each department or agency in possession shall be deemed to be the originating department or agency for all purposes. Such information or material may be downgraded and declassified after consulting with any other departments or agencies having an interest in the subject matter.

(5) Classified information or material transferred to the General Services Administration for accession to the Archives of the United States shall be downgraded and declassified by the Archivist of the United States in accordance with Executive Order 11652, directives of the President issued through the National Security Council, and pertinent regulations of the departments and agencies. § 3a.22 Declassification and downgrading.

(a) When classified information of material no longer requires the level of protection assigned to it, it shall be downgraded or declassified in order to

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