ICCACT.docx

MEMORANDUM
TO:RON LAW
TONYA CLARK
DON HOWELL
FROM:SUSAN HAMLIN
DATE:MARCH 14, 1996
RE:BRIEF SUMMARY OF PIPELINE CARRIER PROVISIONS IN THE ICC TERMINATION ACT
On December 29, 1995, the President signed into law the ICC Termination Act of 1995.  The Act abolished the Interstate Commerce Commission on January 1, 1996, and transferred the development and coordination and preservation of the transportation system to the Surface Transportation Board (Board).  A brief overview of the Act’s Pipeline Carrier provisions is set out below:
●Jurisdiction:  The  Board retains jurisdiction over transportation by pipeline, or by pipeline and railroad or water, when transporting a commodity other than water, gas or oil.  49 CFR § 15301 The administration shall be done by the Board.  49 CFR § 15102.  
●Determination of Rates:  The rates, classifications, through routes, rules and practice related to transportation or service provided by a pipeline carrier must be reasonable.  49 CFR § 15501(a).   Rates may not discriminate against a connecting line of any other carrier subject to jurisdiction of this part of the Act.  49 CFR § 15501(b). When the Board determines, after a hearing, that a rate, classification, rule, or practice violates this part of the Act, it will prescribe what rate, classification, rule, or practice may be utilized.  49 CFR § 15503.
●Notice of Rates:  Tariffs have been eliminated.  Carriers must make their rates and service terms available to anyone on request. 49 CFR § 15701(b).   Carriers may not increase rates or charge service terms without advance notice.  49 CFR § 15701(c).
●Operations of Carriers: The Board may prescribe the form of records required to be prepared or complied, including the movement of traffic and receipts and expenditures of money, by the pipeline carrier and may inspect those records. 49 CFR § 15722.   
●Investigation and Enforcement:  Investigation and suspension process for new rates has been eliminated, however, the Board may use injunctive power to prevent irreparable harm where needed. 49 CFR § 15903. The Board may begin an investigation upon a complaint and if the Board finds that a pipeline carrier is in violation, the Board shall take appropriate action to compel compliance.  49 CFR § 15901.
●Statutes of Limitation:  A pipeline carrier has three years after the claim accrues to bring a civil action to recover charges for transportation or services, and claims for overcharges. 49 CFR § 15905(a)(b).  A person has two years to file a complaint with the Board for damages for excessive charges.  49 CFR § 15905(c).  A person has one year after the date of an order requiring the money to be paid to begin a civil action to enforce the order against a carrier.  49 CFR § 15906(e).
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