18 Cfr 284.270

§ 284.265

18 CFR Ch. I (4–1–13 Edition)

§ 284.265 Cost recovery by interstate
pipeline.

§ 284.267 Intrastate
pipeline
gency transportation rates.

(a) Except as provided in paragraph
(b), an interstate pipeine that provides
emergency natural gas, whether from
its system supply or by special purchase, must directly assign the emergency gas costs to the recipient.
(b) If an interstate pipeline cannot
identify individual recipients, the
interstate pipeline must roll the emergency gas costs into its general system
supply costs.

General rule. Rates and charges for
transportation of emergency gas by
intrastate pipelines authorized under
this subpart must be determined in accordance with § 284.123 of this chapter.

§ 284.266 Rates and charges for interstate pipelines.
(a) Transportation rates—1) Rate on
file. If an interstate pipeline has on file
with the Commission an effective
transportation rate schedule that conforms to § 284.10, it must use volumetric rates based upon fully-allocated
costs and adjusted only for time and
distance.
(2) Rate not on file. If an interstate
pipeline does not have on file with the
Commission a transportation rate
schedule that conforms to § 284.10, it
may:
(i) Base its rates upon the methodology used in designing rates to recover the transmission and related
storage costs included in one of its
then-effective sales rates schedules; or
(ii) Use the rates contained in one of
its transportation rate schedules on
file with the Commission which the
interstate pipeline determines covers
service comparable to transportation
service authorized under this subpart.
(b) Interstate pipeline costs excluded
from rate base. An interstate pipeline
may not include in its jurisdictional
rate base any cost associated with facilities installed and operated in connection with an emergency natural gas
transaction unless a certificate of public convenience and necessity has been
issued authorizing the costs. Absent a
certificate, such facilities may only be
used to conduct emergency natural gas
transactions or transactions authorized under section 311 of the NGPA.
[Order 449, 51 FR 9187, Mar. 18, 1986, as
amended by Order 581, 60 FR 53074, Oct. 11,
1995]

emer-

§ 284.268 Local distribution company
emergency transportation rates.
(a) Rate on file. A local distribution
company that has a rate on file with an
appropriate state regulatory agency for
city-gate transportation services must
determine its rates and charges for
transportation of emergency natural
gas in accordance with § 284.123 of this
chapter.
(b) Rate not on file. A local distribution company that does not have a rate
on file with an appropriate state regulatory agency for city-gate transportation services must determine its
rates and charges for transportation of
emergency natural gas (per unit volume of emergency natural gas transported)
in
accordance
with
§ 284.224(e)(2)(ii) of this chapter.
§ 284.269 Intrastate pipeline and local
distribution company emergency
sales rates.
An intrastate pipeline or local distribution company must determine its
rates for sales of emergency natural
gas under this subpart in accordance
with § 284.142.
[Order 449, 51 FR 9187, Mar. 18, 1986, as
amended by Order 581, 60 FR 53074, Oct. 11,
1995]

§ 284.270

Reporting requirements.

(a) Forty-eight hour report for sales
transactions. Within 48 hours after deliveries of emergency natural gas commence, the purchasing participant
must notify the Commission by email,
facsimile or other written report of the
sale, stating, in the following sequences:
(1) That the report is submitted pursuant to § 284.270 for an emergency natural gas transaction;
(2) The date deliveries commenced;
(3) The specific nature of the situation, explained in sufficient detail to
demonstrate how the situation qualifies as an emergency under § 284.262 and

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Federal Energy Regulatory Commission
under the conditions of § 284.264, and
anticipated duration of the emergency;
(4) The estimated total amount and
average daily amount of emergency
natural gas to be purchased during the
term of the transaction;
(5) The purchase price of the emergency natural gas;
(6) The transportation rate; and
(7) The identity of all participants involved in the transaction, including
any customers to whom the emergency
natural gas is to be assigned.
(b) Forty-eight hour report for transportation (excluding exchanges). Within 48
hours after deliveries commence in an
emergency natural gas transaction
which does not involve the sale of
emergency natural gas, the recipient of
emergency natural gas shall notify the
Commission by email, facsimile or
other written report of the transportation, stating, in the following sequence:
(1) That the report is submitted pursuant to § 284.270 for an emergency
transaction;
(2) The date deliveries commenced;
(3) The specific nature of the situation, explained in sufficient detail to
demonstrate how the situation qualifies as an emergency under § 284.262 and
under the conditions of § 284.264, and
anticipated duration of the emergency;
(4) The estimated total amount and
average daily amount of emergency
natural gas to be transported during
the term of the transaction;
(5) The transportation rate; and
(6) The identity of all the participants involved in the transaction.
(c) Forty-eight hour report for exchanges. Within 48 hours after an exchange transaction for emergency natural gas commences, the initial recipient of the exchange volumes must notify the Commission by email, facsimile or other written report of the
exchange, stating, in the following sequence:
(1) That the report is for and submitted pursuant to § 284.270 for an
emergency transaction;
(2) The date the exchange commenced;
(3) The specific nature of the situation, explained in sufficient detail to
clearly demonstrate how the situation
qualifies as an emergency under

§ 284.270
§ 284.262 and under the conditions of
§ 284.264, and anticipated duration of
the emergency;
(4) The estimated total amount and
average daily amount of emergency
natural gas to be exchanged during the
term of the transaction;
(5) The identity of all participants involved in the transaction;
(6) Whether the exchange is simultaneous or deferred, or any imbalances in
the volumes;
(7) Whether the exchange is on a
thermal or volumetric basis; and
(8) The rates or charges, if any, for
the exchange service.
(d) Termination report. Within thirty
days after the emergency natural gas
transaction ends, the participant that
received the emergency natural gas
shall file with the Commission a sworn
statement and two conformed copies
thereof, which must include the following information in the following sequence:
(1) A description of the emergency
natural gas transaction, including sufficient information to clearly demonstrate how the situation qualifies as
an emergency under § 284.262 and under
the conditions of § 284.264; the commencement and termination dates; the
date of the 48-hour report, and the
method of resolving the emergency;
(2) Any corrections to the 48-hour report information supplied to the Commission under paragraphs (a) through
(c) of this section or a statement that
the information was correct;
(3) The volumes of the emergency
natural gas delivered during the transaction;
(4) The total compensation received
by the seller for the emergency sale;
(5) The total compensation paid for
the emergency natural gas transportation or exchange service, if any;
(6) The methods by which such compensation was derived;
(7) The total volumes of natural gas
whose cost was assigned to specific customers, and the total volumes whose
cost was included in system supply;
(8) The information supplied to any
other
participant
pursuant
to
§ 284.264(a)(2); and
(9) A statement that the emergency
natural gas transaction was carried out
in accordance with this subpart, and

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§ 284.271

18 CFR Ch. I (4–1–13 Edition)

that identifies the circumstances demonstrating an emergency existed or
was imminent so as to require an emergency natural gas transaction.
[Order 46, 44 FR 52184, Sept. 7, 1979, as amended by Order 756, 77 FR 4894, Feb. 1, 2012]

§ 284.271 Waiver.
The Commission may, by order,
waive the requirements of this subpart
in connection with any emergency natural gas transaction to the extent required by the public interest.

Subpart J—Blanket Certificates
Authorizing Certain Natural
Gas Sales by Interstate Pipelines
SOURCE: Order 636, 57 FR 13318, Apr. 16,
1992, unless otherwise noted.

§ 284.281 Applicability.
This subpart applies to any interstate pipeline that offers transportation service under subpart B or G of
this part.
§ 284.282 Definitions.
(a) Bundled sales service is gas sales
service that is not sold separately from
transportation service.
(b) Sales service includes firm or interruptible gas sales.
(c) Unbundled sales service is gas sales
service that is sold separately from
transportation service.
(d) Small customer is a customer that
purchases gas from a pipeline under the
pipeline’s one-part imputed load factor
rate schedule on the effective date of
the blanket certificate.
[Order 636, 57 FR 13318, Apr. 16, 1992, as
amended by Order 636–A, 57 FR 36218, Aug. 12,
1992]

§ 284.283 Point of unbundling.
A sales service is unbundled when gas
is sold at a point before it enters a
mainline system, at an entry point to a
mainline system from a production
area, or at an intersection with another pipeline system.
§ 284.284 Blanket
certificates
for
unbundled sales services.
(a) Authorization. An interstate pipeline that offers transportation service

under subpart B or G of this part is
granted a blanket certificate of public
convenience and necessity pursuant to
section 7 of the Natural Gas Act authorizing it to provide unbundled firm
or interruptible sales in accordance
with the provisions of this section.
(b) Conversion to unbundled firm sales
service and firm transportation service.
On the effective date of the pipeline’s
blanket certificate for unbundled sales
services under paragraph (a) of this
section, firm sales entitlements under
any firm sales service agreement for a
bundled sales service are converted to
an equivalent amount of unbundled
firm sales service and an equivalent
amount of unbundled firm transportation service.
(c) Conversion to unbundled interruptible sales service and interruptible transportation service. On the effective date
of the pipeline’s blanket certificate for
unbundled sales services under paragraph (a) of this section, interruptible
sales volumes under any interruptible
sales service agreement for a bundled
sales service are converted to an equivalent amount of unbundled sales service and an equivalent amount of
unbundled interruptible transportation
service.
(d)
A
pipeline
that
provides
unbundled sales service under this section may serve as an agent of the sales
customer to arrange for any pipelineprovided service necessary to deliver
gas to the customer.
(e) Small customer cost-based rate. A
pipeline that provided bundled sales
service to a small customer before the
effective date of the blanket certificate
granted in paragraph (a) of this section
is required to offer a sales service to
that customer at a cost-based rate for
one year from the effective date of the
certificate. The obligation to sell at
the cost-based rate expires one year
after the effective date of the certificate.
[Order 636, 57 FR 13318, Apr. 16, 1992, as
amended by Order 636–A, 57 FR 36218, Aug. 12,
1992; Order 581, 60 FR 53074, Oct. 11, 1995]

§ 284.285 Pregrant of abandonment of
unbundled sales services.
Abandonment of unbundled sales
services is authorized pursuant to section 7(b) of the Natural Gas Act upon

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