Regulation

§ 156.8

18 CFR Ch. I (4–1–14 Edition)

file a timely response to the application it shall be deemed to have agreed
to the grant thereof.
[Order 302, 30 FR 9302, July 27, 1965, as
amended by Order 225, 47 FR 19057, May 3,
1982]

§ 156.8

Notice of application.

Notice of each application filed, except when rejected in accordance with
§ 156.6, will be published in the FEDERAL
REGISTER and copies of such notice
sent to the State affected thereby via
electronic means if practical, otherwise by mail.
[Order 653, 70 FR 8724, Feb. 23, 2005]

§ 156.9

Protests and interventions.

Notices of applications, as provided
by § 156.8 will fix the time within which
any person desiring to participate in
the proceeding or to file a protest regarding the application, may file a petition to intervene or protest, and
within which any interested regulatory
agency desiring to intervene may file
its notice of intervention. Failure to
make timely filing will constitute
ground for denial of participation, in
the absence of extraordinary circumstances for good cause shown.
§ 156.10

Hearings.

The Commission will schedule each
application for public hearing at the
earliest possible date giving due consideration of statutory requirements
and other matters pending, with notice
thereof as provided by § 385.2009 of this
chapter: Provided, however, That where
no protests or petitions to intervene
have been received and accepted, the
Commission may, after the due date for
such protests or petitions to intervene,
issue the requested order without hearing.
[Order 234, 26 FR 4848, June 1, 1961, as amended by Order 225, 47 FR 19057, May 3, 1982]

§ 156.11

Dismissal of application.

Except for good cause shown, failure
of an applicant to go forward on the
date set for hearing and present its full
case in support of its application will
constitute ground for the summary dismissal of the application and the termination of the proceedings.

PART
157—APPLICATIONS
FOR
CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY AND
FOR ORDERS PERMITTING AND
APPROVING
ABANDONMENT
UNDER SECTION 7 OF THE NATURAL GAS ACT
Subpart A—Applications for Certificates of
Public Convenience and Necessity
and for Orders Permitting and Approving Abandonment Under Section 7 of
the Natural Gas Act, as Amended,
Concerning Any Operation, Sales,
Service, Construction, Extension, Acquisition or Abandonment
Sec.
157.1 Definitions.
157.5 Purpose and intent of rules.
157.6 Applications; general requirements.
157.7 Abbreviated applications.
157.8 Acceptance for filing or rejection of
applications.
157.9 Notice of application and notice of
schedule for environmental review.
157.10 Interventions and protests.
157.11 Hearings.
157.12 Dismissal of application.
157.13 Form of exhibits to be attached to applications.
157.14 Exhibits.
157.15 Requirements for applications covering acquisitions.
157.16 Exhibits relating to acquisitions.
157.17 Applications for temporary certificates in cases of emergency.
157.18 Applications to abandon facilities or
service; exhibits.
157.20 General conditions applicable to certificates.
157.21 Pre-filing procedures and review process for LNG terminal facilities and other
natural gas facilities prior to filing of applications.
157.22 Schedule for final decisions on a request for a Federal authorization.

Subpart B—Open Seasons for Alaska
Natural Gas Transportation Projects
157.30 Purpose.
157.31 Definitions.
157.32 Applicability.
157.33 Requirement for open season.
157.34 Notice of open season.
157.35 Undue discrimination or preference.
157.36 Open seasons for expansions.
157.37 Project design.
157.38 Pre-approval procedures.
157.39 Rate treatment for pipeline expansions.

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Federal Energy Regulatory Commission
Subpart C [Reserved]
Subpart D—Exemption of Natural Gas
Service for Drilling, Testing, or Purging
from Certificate Requirements
157.53

Testing.

Subpart E [Reserved]
Subpart F—Interstate Pipeline Blanket Certificates and Authorization Under Section 7 of the Natural Gas Act for Certain Transactions and Abandonment
157.201 Applicability.
157.202 Definitions.
157.203 Blanket certification.
157.204 Application procedure.
157.205 Notice procedure.
157.206 Standard conditions.
157.207 General reporting requirements.
157.208 Construction, acquisition, operation,
replacement, and miscellaneous rearrangement of facilities.
157.209 Temporary compression facilities.
157.210 Mainline natural gas facilities.
157.211 Delivery points.
157.212 Synthetic and liquefied natural gas
facilities.
157.213 Underground storage field facilities.
157.214 Increase in storage capacity.
157.215 Underground storage testing and development.
157.216 Abandonment.
157.217 Changes in rate schedules.
157.218 Changes in customer name.
APPENDIX I TO SUBPART F—PROCEDURES FOR
COMPLIANCE WITH THE ENDANGERED SPECIES ACT OF 1973 UNDER § 157.206(b)(3)(i)
APPENDIX II TO SUBPART F—PROCEDURES FOR
COMPLIANCE WITH THE NATIONAL HISTORIC
PRESERVATION ACT OF 1966 UNDER
§ 157.206(b)(3)(ii)

Subpart G—Natural Gas Producer Blanket
Authorization for Sales and Abandonment [Reserved]
AUTHORITY: 15 U.S.C. 717–717z.

§ 157.5

Subpart A—Applications for Certificates of Public Convenience and Necessity and for
Orders Permitting and Approving Abandonment under
Section 7 of the Natural Gas
Act, as Amended, Concerning Any Operation, Sales,
Service, Construction, Extension, Acquisition or Abandonment
§ 157.1

Definitions.

For the purposes of this part—
For the purposes of § 157.21 of this
part, Director means the Director of the
Commission’s
Office
of
Energy
Projects.
Indian tribe means, in reference to a
proposal or application for a certificate
or abandonment, an Indian tribe which
is recognized by treaty with the United
States, by federal statute, or by the
U.S. Department of the Interior in its
periodic listing of tribal governments
in the FEDERAL REGISTER in accordance with 25 CFR 83.6(b), and whose
legal rights as a tribe may be affected
by the proposed construction, operation or abandonment of facilities or
services (as where the construction or
operation of the proposed facilities
could interfere with the tribe’s hunting
or fishing rights or where the proposed
facilities would be located within the
tribe’s reservation).
Resource agency means a Federal,
state, or interstate agency exercising
administration over the areas of recreation, fish and wildlife, water resource
management, or cultural or other relevant resources of the state or states
in which the facilities or services for
which a certificate or abandonment is
proposed are or will be located.
[Order 608, 64 FR 51220, Sept. 22, 1999, as
amended by Order 665, 70 FR 60440, Oct. 18,
2005]

§ 157.5

Purpose and intent of rules.

(a) Applications under section 7 of
the Natural Gas Act shall set forth all
information necessary to advise the

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§ 157.6

18 CFR Ch. I (4–1–14 Edition)

Commission fully concerning the operation, sales, service, construction, extension, or acquisition for which a certificate is requested or the abandonment for which permission and approval is requested. Some applications
may be of such character that an abbreviated application may be justified
under the provisions of § 157.7. Applications for permission and approval to
abandon pursuant to section 7(b) of the
Act shall conform to § 157.18 and to
such other requirements of this part as
may be pertinent. However, every applicant shall file all pertinent data and
information necessary for a full and
complete understanding of the proposed project, including its effect upon
applicant’s present and future operations and whether, and at what docket, applicant has previously applied for
authorization to serve any portion of
the market contemplated by the proposed project and the nature and disposition of such other project.
(b) Every requirement of this part
shall be considered as a forthright obligation of the applicant which can only
be avoided by a definite and positive
showing that the information or data
called for by the applicable rules is not
necessary for the consideration and ultimate determination of the application.
(c) This part will be strictly applied
to all applications as submitted and
the burden of adequate presentation in
intelligible form as well as justification for omitted data or information
rests with the applicant.
[17 FR 7386, Aug. 14, 1952, as amended by
Order 280, 29 FR 4876, Apr. 7, 1964]

§ 157.6 Applications; general requirements.
(a) Applicable rules—(1) Submission required to be furnished by applicant under
this subpart. Applications, amendments
thereto, and all exhibits and other submissions required to be furnished by an
applicant to the Commission under this
subpart must be submitted in an original and 7 conformed copies. To the extent that data required under this subpart has been provided to the Commission, this data need not be duplicated.
The applicant must, however, include a
statement identifying the forms and
records containing the required infor-

mation and when that form or record
was submitted.
(2) Maps and diagrams. An applicant
required to submit a map or diagram
under this subpart must submit one
paper copy of the map or diagram.
(3) The following must be submitted
in electronic format as prescribed by
the Commission:
(i) Applications filed under this part
157 and all attached exhibits;
(ii) Applications covering acquisitions and all attached exhibits;
(iii) Applications for temporary certificates and all attached exhibits;
(iv) Applications to abandon facilities or services and all attached exhibits;
(v) The progress reports required
under § 157.20(c) and (d);
(vi) Applications submitted under
subpart E of this part and all attached
exhibits;
(vii) Applications submitted under
subpart F of this part and all attached
exhibits;
(viii) Requests for authorization
under the notice procedures established
in § 157.205 and all attached exhibits;
(ix) The annual report required by
§ 157.207;
(x) The report required under § 157.214
when storage capacity is increased;
(xi) Amendments to any of the foregoing.
(4) All filings must be signed in compliance with the following.
(i) The signature on a filing constitutes a certification that: The signer
has read the filing signed and knows
the contents of the paper copies and
electronic filing; the paper copies contain the same information as contained
in the electronic filing; the contents as
stated in the copies and in the electronic filing are true to the best knowledge and belief of the signer; and the
signer possesses full power and authority to sign the filing.
(ii) A filing must be signed by one of
the following:
(A) The person on behalf of whom the
filing is made;
(B) An officer, agent, or employee of
the governmental authority, agency, or
instrumentality on behalf of which the
filing is made; or,
(C) A representative qualified to
practice before the Commission under

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Federal Energy Regulatory Commission
§ 385.2101 of this chapter who possesses
authority to sign.
(5) Other requirements. Applications
under section 7 of the Natural Gas Act
must conform to the requirements of
§§ 157.5 through 157.14. Amendments to
or withdrawals of applications must
conform to the requirements of
§§ 385.215 and 385.216 of this chapter. If
the application involves an acquisition
of facilities, it must conform to the additional requirements prescribed in
§§ 157.15 and 157.16. If the application involves an abandonment of facilities or
service, it must conform to the additional requirements prescribed in
§ 157.18.
(b) General content of application.
Each application filed other than an
application for permission and approval to abandon pursuant to section
7(b) shall set forth the following information:
(1) The exact legal name of applicant;
its principal place of business; whether
an individual, partnership, corporation,
or otherwise; State under the laws of
which organized or authorized; and the
name, title, and mailing address of the
person or persons to whom communications concerning the application are to
be addressed.
(2) The facts relied upon by applicant
to show that the proposed service, sale,
operation, construction, extension, or
acquisition is or will be required by the
present or future public convenience
and necessity.
(3) A concise description of applicant’s existing operations.
(4) A concise description of the proposed service, sale, operation, construction, extension, or acquisition, including the proposed dates for the beginning and completion of construction, the commencement of operations
and of acquisition, where involved.
(5) A full statement as to whether
any other application to supplement or
effectuate applicant’s proposals must
be or is to be filed by applicant, any of
applicant’s customers, or any other
person, with any other Federal, State,
or other regulatory body; and if so, the
nature and status of each such application.
(6) A table of contents which shall
list all exhibits and documents filed in
compliance with §§ 157.5 through 157.18,

§ 157.6
as well as all other documents and exhibits otherwise filed, identifying them
by their appropriate titles and alphabetical letter designations. The alphabetical letter designations specified in
§§ 157.14, 157.16, and 157.18 must be
strictly adhered to and extra exhibits
submitted at the volition of applicant
shall be designated in sequence under
the letter Z (Z1, Z2, Z3, etc.).
(7) A form of notice of the application
suitable for publication in the FEDERAL
REGISTER in accordance with the specifications in § 385.203(d) of this chapter.
(8) For applications to construct new
facilities, detailed cost-of-service data
supporting the cost of the expansion
project, a detailed study showing the
revenue responsibility for each firm
rate schedule under the pipeline’s currently effective rate design and under
the pipeline’s proposed rates, a detailed
rate impact analysis by rate schedule
(including by zone, if applicable), and
an analysis reflecting the impact of the
fuel usage resulting from the proposed
expansion project (including by zone, if
applicable).
(c) Requests for shortened procedure. If
shortened procedure is desired a request therefor shall be made in conformity with § 385.802 of this chapter
and may be included in the application
or filed separately.
(d) Landowner notification. (1) For all
applications filed under this subpart
which include construction of facilities
or abandonment of facilities (except for
abandonment by sale or transfer where
the easement will continue to be used
for transportation of natural gas), the
applicant shall make a good faith effort to notify all affected landowners
and towns, communities, and local,
state and federal governments and
agencies involved in the project:
(i) By certified or first class mail,
sent within 3 business days following
the date the Commission issues a notice of the application; or
(ii) By hand, within the same time
period; and
(iii) By publishing notice twice of the
filing of the application, no later than
14 days after the date that a docket
number is assigned to the application,
in a daily or weekly newspaper of general circulation in each county in
which the project is located.

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§ 157.7

18 CFR Ch. I (4–1–14 Edition)

(2) All affected landowners includes
owners of property interests, as noted
in the most recent county/city tax
records as receiving the tax notice,
whose property:
(i) Is directly affected (i.e., crossed or
used) by the proposed activity, including all facility sites (including compressor stations, well sites, and all
above-ground facilities), rights of way,
access roads, pipe and contractor
yards, and temporary workspace;
(ii) Abuts either side of an existing
right-of-way or facility site owned in
fee by any utility company, or abuts
the edge of a proposed facility site or
right-of-way which runs along a property line in the area in which the facilities would be constructed, or contains a residence within 50 feet of the
proposed construction work area;
(iii) Is within one-half mile of proposed compressors or their enclosures
or LNG facilities; or
(iv) Is within the area of proposed
new storage fields or proposed expansions of storage fields, including any
applicable buffer zone.
(3) The notice shall include:
(i) The docket number of the filing;
(ii) The most recent edition of the
Commission’s pamphlet that explains
the Commission’s certificate process
and addresses the basic concerns of
landowners. Except: pipelines are not
required to include the pamphlet in notifications of abandonments or in the
published newspaper notice. Instead,
they should provide the title of the
pamphlet and indicate its availability
at the Commission’s Internet address;
(iii) A description of the applicant
and the proposed project, its location
(including a general location map), its
purpose, and the timing of the project;
(iv) A general description of what the
applicant will need from the landowner
if the project is approved, and how the
landowner may contact the applicant,
including a local or toll-free phone
number and a name of a specific person
to contact who is knowledgeable about
the project;
(v) A brief summary of what rights
the landowner has at the Commission
and in proceedings under the eminent
domain rules of the relevant state. Except: pipelines are not required to include this information in the published

newspaper notice. Instead, the newspaper notice should provide the Commission’s Internet address and the telephone number for the Commission’s Office of External Affairs; and
(vi) Information on how the landowner can get a copy of the application
from the company or the location(s)
where a copy of the application may be
found as specified in § 157.10.
(vii) A copy of the Commission’s notice of application, specifically stating
the date by which timely motions to
intervene are due, together with the
Commission’s information sheet on
how to intervene in Commission proceedings. Except: pipelines are not required to include the notice of application and information sheet in the published newspaper notice. Instead, the
newspaper notice should indicate that
a separate notice is to be mailed to affected landowners and governmental
entities.
(4) If the notice is returned as undeliverable, the applicant will make a
reasonable attempt to find the correct
address and notify the landowner.
(5) Within 30 days of the date the application was filed, applicant shall file
an updated list of affected landowners,
including information concerning notices that were returned as undeliverable.
(6) If paragraph (d)(3) of this section
requires an applicant to reveal Critical
Energy
Infrastructure
Information
(CEII), as defined by § 388.113(c) of this
chapter, to any person, the applicant
shall follow the procedures set out in
§ 157.10(d).
[17 FR 7386, Aug. 14, 1952]
EDITORIAL NOTE: For FEDERAL REGISTER citations affecting § 157.6, see the List of CFR
Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

§ 157.7 Abbreviated applications.
(a) General. When the operations
sales, service, construction, extensions,
acquisitions or abandonment proposed
by an application do not require all the
data and information specified by this
part to disclose fully the nature and
extent of the proposed undertaking, an
abbreviated application may be filed in
the manner prescribed in § 385.2011 of
this chapter, provided it contains all

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Federal Energy Regulatory Commission

§ 157.10

information and supporting data necessary to explain fully the proposed
project, its economic justification, its
effect upon applicant’s present and future operations and upon the public
proposed to be served, and is otherwise
in conformity with the applicable requirements of this part regarding form,
manner of presentation, and filing.
Such an application shall (1) state that
it is an abbreviated application; (2)
specify which of the data and information required by this part are omitted;
and (3) relate the facts relied upon to
justify separately each such omission.

(c) The Director of the Office of Energy Projects or the Director of the Office of Energy Market Regulation may
also reject an application after it has
been noticed, at any time, if it is determined that such application does not
conform to the requirements of this
part.

[Order 280, 29 FR 4876, Apr. 7, 1964]

(a) Notice of each application filed,
except when rejected in accordance
with § 157.8, will be issued within 10
business days of filing, and subsequently will be published in the FEDERAL REGISTER and copies of such notice sent to States affected thereby, by
electronic means if practical, otherwise by mail. Persons desiring to receive a copy of the notice of every application shall so advise the Secretary.
(b) For each application that will require an environmental assessment or
an environmental impact statement,
notice of a schedule for the environmental review will be issued within 90
days of the notice of the application,
and subsequently will be published in
the FEDERAL REGISTER.

EDITORIAL NOTE: For FEDERAL REGISTER citations affecting § 157.7, see the List of CFR
Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

§ 157.8 Acceptance for filing or rejection of applications.
Applications will be docketed when
received and the applicant so advised.
(a) If an application patently fails to
comply with applicable statutory requirements or with applicable Commission rules, regulations, and orders for
which a waiver has not been granted,
the Director of the Office of Energy
Projects or the Director of the Office of
Energy Market Regulation may reject
the application within 10 business days
of filing as provided by § 385.2001(b) of
this chapter. This rejection is without
prejudice to an applicant’s refiling a
complete application. However, an application will not be rejected solely on
the basis of:
(1) Environmental reports that are
incomplete because the company has
not been granted access by the affected
landowner(s) to perform required surveys; or,
(2) Environmental reports that are
incomplete, but where the minimum
checklist requirements of part 380, appendix A of this chapter have been met.
(b) An application which relates to
an operation, sale, service, construction, extension, acquisition, or abandonment concerning which a prior application has been filed and rejected,
shall be docketed as a new application.
Such new application shall state the
docket number of the prior rejected application.

[Order 603–A, 64 FR 54536, Oct. 7, 1999, as
amended by Order 699, 72 FR 45325, Aug. 14,
2007; Order 701, 72 FR 61054, Oct. 29, 2007]

§ 157.9 Notice of application and notice of schedule for environmental
review.

[Order 653, 70 FR 8724, Feb. 23, 2005, as
amended by Order 687, 71 FR 62920, Oct. 27,
2006]

§ 157.10

Interventions and protests.

(a) Notices of applications, as provided by § 157.9, will fix the time within
which any person desiring to participate in the proceeding may file a petition to intervene, and within which
any interested regulatory agency, as
provided by § 385.214 of this chapter, desiring to intervene may file its notice
of intervention.
(1) Any person filing a petition to intervene or notice of intervention shall
state specifically whether he seeks formal hearing on the application.
(2) Any person may file to intervene
on environmental grounds based on the
draft environmental impact statement
as stated at § 380.10(a)(1)(i) of this chapter. In accordance with that section,

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§ 157.11

18 CFR Ch. I (4–1–14 Edition)

such intervention will be deemed timely as long as it is filed within the comment period for the draft environmental impact statement.
(3) Failure to make timely filing will
constitute grounds for denial of participation in the absence of extraordinary circumstances or good cause
shown.
(4) Protests may be filed in accordance with § 385.211 of this chapter within the time permitted by any person
who does not seek to participate in the
proceeding.
(b) A copy of each application, supplement and amendment thereto, including exhibits required by §§ 157.14,
157.16, and 157.18, shall upon request be
promptly supplied by the applicant to
anyone who has filed a petition for
leave to intervene or given notice of
intervention.
(1) An applicant is not required to
serve voluminous or difficult to reproduce material, such as copies of certain
environmental information, to all parties, as long as such material is publicly available in an accessible central
location in each county throughout the
project area.
(2) An applicant shall make a good
faith effort to place the materials in a
public location that provides maximum
accessibility to the public.
(c) Complete copies of the application
must be available in accessible central
locations in each county throughout
the project area, either in paper or
electronic format, within three business days of the date a filing is issued
a docket number. Within five business
days of receiving a request for a complete copy from any party, the applicant must serve a full copy of any filing on the requesting party. Such copy
may exclude voluminous or difficult to
reproduce material that is publicly
available. Pipelines must keep all voluminous material on file with the Commission and make such information
available for inspection at buildings
with public access preferably with
evening and weekend business hours,
such as libraries located in central locations in each county throughout the
project area.
(d) Critical Energy Infrastructure Information. (1) If this section requires an
applicant to reveal Critical Energy In-

frastructure Information (CEII), as defined in § 388.113(c) of this chapter, to
the public, the applicant shall omit the
CEII from the information made available and insert the following in its
place:
(i) A statement that CEII is being
withheld;
(ii) A brief description of the omitted
information that does not reveal any
CEII; and
(iii) This statement: ‘‘Procedures for
obtaining access to Critical Energy Infrastructure Information (CEII) may be
found at 18 CFR 388.113. Requests for
access to CEII should be made to the
Commission’s CEII Coordinator.’’
(2) The applicant, in determining
whether information constitutes CEII,
shall treat the information in a manner consistent with any filings that applicant has made with the Commission
and shall to the extent practicable adhere to any previous determinations by
the Commission or the CEII Coordinator involving the same or like information.
(3) The procedures contained in
§§ 388.112 and 388.113 of this chapter regarding designation of, and access to,
CEII, shall apply in the event of a challenge to a CEII designation or a request for access to CEII. If it is determined that information is not CEII or
that a requester should be granted access to CEII, the applicant will be directed to make the information available to the requester.
(4) Nothing in this section shall be
construed to prohibit any persons from
voluntarily reaching arrangements or
agreements calling for the disclosure of
CEII.
[Order 603–A, 64 FR 54536, Oct. 7, 1999, as
amended by Order 643, 68 FR 52095, Sept. 2,
2003]

§ 157.11 Hearings.
(a) General. The Commission will
schedule each application for public
hearing at the earliest date possible
giving due consideration to statutory
requirements and other matters pending, with notice thereof as provided by
§ 1.19(b) of this chapter: Provided, however, That when an application is filed
less than fifteen days prior to the commencement of a hearing theretofore ordered on a pending application and

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Federal Energy Regulatory Commission
seeks authority to serve some or all of
the markets sought in such pending application or is otherwise competitive
with such pending application, the
Commission will not schedule the new
application for hearing until it has rendered its final decision on such pending
application, except when, on its own
motion, or on appropriate application,
it finds that the public interest requires otherwise.
(b) Shortened procedure. If no protest
or petition to intervene raises an issue
of substance, the Commission may
upon request of the applicant dispose of
an application in accordance with the
provisions of § 385.802 of this chapter.
[17 FR 7386, Aug. 14, 1952, as amended by
Order 225, 47 FR 19057, May 3, 1982]

§ 157.12

Dismissal of application.

Except for good cause shown, failure
of an applicant to go forward on the
date set for hearing and present its full
case in support of its application will
constitute ground for the summary dismissal of the application and the termination of the proceedings.
[17 FR 7386, Aug. 14, 1952]

§ 157.13 Form of exhibits to be attached to applications.
Each exhibit attached to an application must conform to the following requirements:
(a) General requirements. Each exhibit
must be submitted in the manner prescribed in §§ 157.6(a) and 385.2011 of this
chapter and contain a title page showing applicant’s name, docket number
(to be left blank), title of the exhibit,
the proper letter designation of the exhibit, and, if of 10 or more pages, a
table of contents, citing by page, section number or subdivision, the component elements or matters therein contained.
(b) Reference to annual reports and previous applications. An application may
refer to annual reports and previous
applications filed with the Commission
and shall specify the exact pages or exhibit numbers of the filing to which
reference is made, including the page
numbers in any exhibit to which reference is made. When reference is made
to a previous application the docket
number shall be stated. No part of a re-

§ 157.14
jected application may be incorporated
by reference.
(c) Interdependent applications. When
an application considered alone is incomplete and depends vitally upon information in another application, it
will not be accepted for filing until the
supporting application has been filed.
When applications are interdependent,
they shall be filed concurrently.
(d) Measurement base. All gas volumes, including gas purchased from
producers, shall be stated upon a uniform basis of measurement, and, in addition, if the uniform basis of measurement used in any application is other
than 14.73 p.s.i.a., then any volume or
volumes delivered to or received from
any interstate natural-gas pipeline
company shall also be stated upon a
basis of 14.73 p.s.i.a.; similarly, total
volumes on all summary sheets, as well
as grand totals of volumes in any exhibit, shall also be stated upon a basis
of 14.73 p.s.i.a. if the uniform basis of
measurement used is other than 14.73
p.s.i.a.
[17 FR 7387, Aug. 14, 1952, as amended by
Order 185, 21 FR 1486, Mar. 8, 1956; Order 280,
29 FR 4877, Apr. 7, 1964; Order 493, 53 FR 15029,
Apr. 27, 1988]

§ 157.14 Exhibits.
(a) To be attached to each application.
All exhibits specified must accompany
each application when tendered for filing. Together with each exhibit applicant must provide a full and complete
explanation of the data submitted, the
manner in which it was obtained, and
the reasons for the conclusions derived
from the exhibits. If the Commission
determines that a formal hearing upon
the application is required or that testimony and hearing exhibits should be
filed, the Secretary will promptly notify the applicant that submittal of all
exhibits and testimony of all witnesses
to be sponsored by the applicant in
support of his case-in-chief is required.
Submittal of these exhibits and testimony must be within 20 days from the
date of the Secretary’s notice, or any
other time as the Secretary will specify. Exhibits, except exhibits F, F–1, G,
G-I, and G-II, must be submitted to the
Commission on electronic media as
prescribed in § 385.2011 of this chapter.
Interveners and persons becoming

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§ 157.14

18 CFR Ch. I (4–1–14 Edition)

interveners after the date of the Secretary’s notice must be advised by the
applicant of the afore-specified exhibits
and testimony, and must be furnished
with copies upon request. If this section requires an applicant to reveal
Critical Energy Infrastructure Information (CEII), as defined by § 388.113(c)
of this chapter, to any person, the applicant shall follow the procedures set
out in § 157.10(d).
(1) Exhibit A—Articles of incorporation
and bylaws. If applicant is not an individual, a conformed copy of its articles
of incorporation and bylaws, or other
similar documents.
(2) Exhibit B—State authorization. For
each State where applicant is authorized to do business, a statement showing the date of authorization, the scope
of the business applicant is authorized
to carry on and all limitations, if any,
including expiration dates and renewal
obligations. A conformed copy of applicant’s authorization to do business in
each State affected shall be supplied
upon request.
(3) Exhibit C—Company officials. A list
of the names and business addresses of
applicant’s officers and directors, or
similar officials if applicant is not a
corporation.
(4) Exhibit D—Subsidiaries and affiliation. If applicant or any of its officers
or directors, directly or indirectly,
owns, controls, or holds with power to
vote, 10 percent or more of the outstanding voting securities of any other
person or organized group of persons
engaged in production, transportation,
distribution, or sale of natural gas, or
of any person or organized group of
persons engaged in the construction or
financing of such enterprises or operations, a detailed explanation of each
such relationship, including the percentage of voting strength represented
by such ownership of securities. If any
person or organized group of persons,
directly or indirectly, owns, controls,
or holds with power to vote, 10 percent
or more of the outstanding voting securities of applicant—a detailed explanation of each such relationship.
(5) Exhibit E—Other pending applications and filings. A list of other applications and filings under sections 1, 3, 4
and 7 of the Natural Gas Act filed by
the applicant which are pending before

the Commission at the time of the filing of an application and which directly and significantly affect the application filed, including an explanation of any material effect the grant
or denial of those other applications
and filings will have on the application
and of any material effect the grant or
denial of the application will have on
those other applications and filings.
(6) Exhibit F—Location of facilities. Unless shown on Exhibit G or elsewhere, a
geographical map of suitable scale and
detail showing, and appropriately differentiating between all of the facilities proposed to be constructed, acquired or abandoned and existing facilities of applicant, the operation or
capacity of which will be directly affected by the proposed facilities or the
facilities proposed to be abandoned.
This map, or an additional map, shall
clearly show the relationship of the
new facilities to the applicant’s overall
system and shall include:
(i) Location, length, and size of pipelines.
(ii) Location and size (rated horsepower) of compressor stations.
(iii) Location and designation of each
point of connection of existing and proposed facilities with (a) main-line industrial customers, gas pipeline or distribution systems, showing towns and
communities served and to be served at
wholesale and retail, and (b) gas-producing and storage fields, or other
sources of gas supply.
(6-a) Exhibit F-I—Environmental report. An environmental report as specified in §§ 380.3 and 380.12 of this chapter.
Applicant must submit all appropriate
revisions to Exhibit F-I whenever route
or site changes are filed. These revisions should identify the locations by
mile post and describe all other specific differences resulting from the
route or site changes, and should not
simply provide revised totals for the
resources affected.
(7) Exhibit G—Flow diagrams showing
daily design capacity and reflecting operation with and without proposed facilities
added. A flow diagram showing daily
design capacity and reflecting operating conditions with only existing facilities in operation. A second flow diagram showing daily design capacity
and reflecting operating conditions

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Federal Energy Regulatory Commission
with both proposed and existing facilities in operation. Both flow diagrams
shall include the following for the portion of the system affected:
(i) Diameter, wall thickness, and
length of pipe installed and proposed to
be installed and the diameter and wall
thickness of the installed pipe to which
connection is proposed.
(ii) For each proposed new compressor station and existing station,
the size, type and number of compressor units, horsepower required,
horsepower installed and proposed to
be installed, volume of gas to be used
as fuel, suction and discharge pressures, and compression ratio.
(iii) Pressures and volumes of gas at
the main line inlet and outlet connections at each compressor station.
(iv) Pressures and volumes of gas at
each intake and take-off point and at
the beginning and terminus of the existing and proposed facilities and at
the intake or take-off point of the existing facilities to which the proposed
facilities are to be connected.
(8) Exhibit G-I—Flow diagrams reflecting maximum capabilities. If Exhibit G
does not reflect the maximum deliveries which applicant’s existing and
proposed facilities would be capable of
achieving under most favorable operating conditions with utilization of all
facilities, include an additional diagram or diagrams to depict such maximum capabilities. If the horsepower,
pipelines, or other facilities on the segment of applicant’s system under consideration are not being fully utilized
due, e.g., to capacity limitation of connecting facilities or because of the
need for standby or spare equipment,
the reason for such nonutilization shall
be stated.
(9) Exhibit G-II—Flow diagram data.
Exhibits G and G-I shall be accompanied by a statement of engineering
design data in explanation and support
of the diagrams and the proposed
project, setting forth:
(i) Assumptions, bases, formulae, and
methods used in the development and
preparation of such diagrams and accompanying data.
(ii) A description of the pipe and fittings to be installed, specifying the diameter, wall thickness, yield point, ultimate tensile strength, method of fab-

§ 157.14
rication, and methods of testing proposed.
(iii) When lines are looped, the length
and size of the pipe in each loop.
(iv) Type, capacity, and location of
each natural gas storage field or facility,
and
of
each
dehydration,
desulphurization, natural gas liquefaction, hydrocarbon extraction, or
other similar plant or facility directly
attached to the applicant’s system, indicating which of such plants are
owned or operated by applicant, and
which by others, giving their names
and addresses.
(v) If the daily design capacity shown
in Exhibit G is predicated upon an ability to meet each customer’s maximum
contract quantity on the same day, explain the reason for such coincidental
peak-day design. If the design day capacity shown in Exhibit G is predicated
upon an assumed diversity factor, state
that factor and explain its derivation.
(vi) The maximum allowable operating pressure of each proposed facility
for which a certificate is requested, as
permitted by the Department of Transportation’s safety standards. The applicant shall certify that it will design,
install, inspect, test, construct, operate, replace, and maintain the facilities for which a certificate is requested
in accordance with Federal safety
standards and plans for maintenance
and inspection or shall certify that it
has been granted a waiver of the requirements of the safety standards by
the Department of Transportation in
accordance with the provisions of section 3(e) of the Natural Gas Pipeline
Safety Act of 1968. Pertinent details
concerning the waiver shall be set
forth.
(10) Exhibit H—Total gas supply data.
A statement by applicant describing:
(i) Those production areas accessible
to the proposed construction that contain sufficient existing or potential gas
supplies for the proposed project; and
(ii) How those production areas are
connected to the proposed construction.
(11) Exhibit I—Market data. A systemwide estimate of the volumes of gas to
be delivered during each of the first 3
full years of operation of the proposed
service, sale, or facilities and during
the years when the proposed facilities

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§ 157.14

18 CFR Ch. I (4–1–14 Edition)

are under construction, and actual
data of like import for each of the 3
years next preceding the filing of the
application, together with:
(i) Names and locations of customer
companies and municipalities, showing
the number of residential, commercial,
firm industrial, interruptible industrial, residential space-heating, commercial space-heating, and other types
of customers for each distribution system to be served at retail or wholesale;
and the names and locations of each
firm and interruptible direct industrial
customer whose estimated consumption totals 10,000 Mcf or more in any
calendar month or 100,000 Mcf or more
per year together with an explanation
of the end use to which each of these
industrial customers will put the gas.
(ii) Applicant’s total annual and peak
day gas requirements by classification
of service in paragraph (a)(11)(i) of this
section, divided as follows: Gas requirements (a) for each distribution area
where gas is sold by applicant at retail;
(b) for each wholesale customer; (c) for
all main line direct industrial customers; and (d) company use and unaccounted-for gas, for both the applicant
and each wholesale customer.
(iii) Total past and expected curtailments of service by the applicant and
each wholesale customer proposing to
receive new or additional supplies of
gas from the project, all to be listed by
the classifications of service in paragraph (a)(11)(i) of this section.
(iv) Explanation and derivation of
basic factors used in estimating future
requirements, including, for example:
Peak-day and annual degree-day deficiencies, annual load factors of applicant’s system and of its deliveries to
its proposed customers; individual consumer peak-day and annual consumption factors for each class of consumers, with supporting historical
data; forecasted saturation of spaceheating as related to past experience;
and full detail as to all other sources of
gas supply available to applicant and
to each of its customers, including
manufacturing facilities and liquid petroleum gas.
(v) Conformed copy of each contract,
letter of intent or other agreement for
sale or transportation of natural gas
proposed by the application. Indicate

the rate to be charged. If no agreements have been made, indicate the
basis for assuming that contracts will
be consummated and that service will
be rendered under the terms contemplated in the application.
(vi) A full description of all facilities,
other than those covered by the application, necessary to provide service in
the communities to be served, the estimated cost of such facilities, by whom
they are to be constructed, and evidence of economic feasibility.
(vii) A copy of each market survey
made within the past three years for
such markets as are to receive new or
increased service from the project applied for.
(viii) A statement showing the franchise rights of applicant or other person to distribute gas in each community in which service is proposed.
(ix) When an application requires a
statement of total peak-day or annual
market requirements of affiliates,
whose operations are integrated with
those of applicant, to demonstrate applicant’s ability to provide the service
proposed or to establish a gas supply,
estimates and data required by this
subparagraph shall also be stated in
like detail for such affiliates.
(x) When the proposed project is for
service which would not decrease the
life index of the total system gas supply by more than one year, the data required in paragraphs (a)(11) (i) to (ix),
inclusive, of this section need be submitted only as to the particular market to receive new or additional service.
(12) Exhibit J—Federal authorizations.
A statement identifying each Federal
authorization that the proposal will require; the Federal agency or officer, or
State agency or officer acting pursuant
to delegated Federal authority, that
will issue each required authorization;
the date each request for authorization
was submitted; why any request was
not submitted and the date submission
is expected; and the date by which final
action on each Federal authorization
has been requested or is expected.
(13) Exhibit K—Cost of facilities. A detailed estimate of total capital cost of
the proposed facilities for which application is made, showing cost of construction by operating units such as

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Federal Energy Regulatory Commission
compressor stations, main pipelines,
laterals, measuring and regulating stations, and separately stating the cost
of right-of-way, damages, surveys, materials, labor, engineering and inspection, administrative overhead, fees for
legal and other services, allowance for
funds used during construction, and
contingencies. Include a brief statement indicating the source of information used as the basis for the above estimate. If not otherwise set forth, submit data on preliminary bids, if any,
for the proposed facilities and recent
experienced cost data for facilities of
similar character.
(14) Exhibit L—Financing. Plans for financing the proposed facilities for
which the application is filed, together
with:
(i) A description of the class (e.g.,
commercial paper, long-term debt, preferred stock) and cost rates for securities expected to be issued with construction period and post- operational
sources of financing separately identified.
(ii) Statement of anticipated cash
flow, including provision during the period of construction and the first 3 full
years of operation of proposed facilities
for interest requirements, dividends,
and capital requirements.
(iii) A balance sheet and income
statement (12 months) of most recent
data available.
(iv) Comparative pro forma balance
sheets and income statements for the
period of construction and each of the
first 3 full years of operation, giving effect to the proposed construction and
proposed financing of the project.
(v) Any additional data and information upon which applicant proposes to
rely in showing the adequacy and
availability of resources for financing
its proposed project.
(vi) In instances for which principal
operations of the company have not
commenced or where proposed rates for
services are developed on an incremental basis, a brief statement explaining how the applicant will determine the actual allowance for funds
used during construction (AFUDC)
rate, or if a rate is not to be used, how
the applicant will determine the actual
amount of AFUDC to be capitalized as
a component of construction cost, and

§ 157.14
why the method is appropriate under
the circumstances.
(15) Exhibit M—Construction, operation, and management. A concise statement setting forth arrangements for
supervision, management, engineering,
accounting, legal, or other similar
service to be rendered in connection
with the construction or operation of
the project, if not to be performed by
employees of applicant, including reference to any existing or contemplated
agreements therefor, together with:
(i) A statement showing affiliation
between applicant and any parties to
such agreements or arrangements. See
Exhibit D, paragraph (a)(4) of this section.
(ii) Conformed copies of all construction, engineering, management, and
other similar service agreements or
contracts in any way operative with respect to construction, operation, or financing of facilities which are the subject of the application or will be applicable under system operations.
(16) Exhibit N—Revenues—Expenses—
Income. When the estimated revenues
and expenses related to a proposed facility will significantly affect the operating revenues or operating expenses of
an applicant, there shall be submitted
a system-wide statement for the last
year preceding the proposed construction or service and pro forma systemwide and incremental statements for
each of the first three full years of operation of the proposed facilities, showing:
(i) Gas system annual revenues and
volumes of natural gas related thereto,
subdivided by classes of service, and
further subdivided by sales to direct industrial customers, sales to other gas
utilities, and other sales, indicating
billing quantities used for computing
charges, e. g., actual demands, billing
demands, volumes, heat-content adjustment or other determinants. In addition, if enlargement or extension of
facilities is involved, the revenues attributable solely to the proposed facilities shall be stated separately, and the
basis and data used in such computation shall be clearly shown.
(ii) Gas system annual operating expenses classified in accordance with
the Commission’s Uniform System of
Accounts for Natural Gas Companies;

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§ 157.15

18 CFR Ch. I (4–1–14 Edition)

the annual depreciation, depletion,
taxes, utility income, and resulting
rate of return on net investment in gas
plant including working capital. In addition if enlargement or extension of
facilities is involved, the cost of service attributable solely to the proposed
facilities shall be stated separately
with supporting data.
(iii) When the data required in paragraphs (a)(16)(i) and (ii) of this section
is not submitted, applicant shall provide in lieu thereof a statement in sufficient detail to show clearly the effect
on the operating revenues and operating expenses of the estimated revenues and expenses related to the proposed facility.
(17) Exhibit O—Depreciation and depletion. Depreciation and depletion rates
to be established, the method of determination and the justification therefor.
(18) Exhibit P—Tariff. (i) A statement
of the rates to be charged for the proposed sales or service, including:
(a) Identification of the applicable
presently effective rate schedules,
when no additional tariff filings will be
required, or
(b) When changes are required in applicant’s presently effective tariff, or if
applicant has no tariff, pro forma copies of appropriate changes in or additions to the effective tariff or a pro
forma copy of the new gas tariff proposed, or
(c) When a new rate is proposed, a
statement explaining the basis used in
arriving at the proposed rate. Such
statement shall clearly show whether
such rate results from negotiation,
cost-of-service determination, competitive factors or others, and shall give
the nature of any studies which have
been made in connection therewith.
(ii) When new rates or changes in
present rates are proposed or when the
proposed facilities will result in a material change in applicant’s average
cost of service, such statement shall be
accompanied by supporting data showing:
(a) System cost of service for the
first calendar year of operation after
the proposed facilities are placed in
service.
(b) An allocation of such costs to
each particular service classification,

with the basis for each allocation
clearly stated.
(c) The proposed rate base and rate of
return.
(d) Gas operating expenses, segregated functionally by accounts.
(e) Depletion and depreciation.
(f) Taxes with the basis upon which
computed.
(b) Additional exhibits. Applicant shall
submit additional exhibits necessary to
support or clarify its application. Such
exhibits shall be identified and designated as provided by § 157.6(b)(6).
(c) Additional information. Upon request by the Secretary, prior to or during hearing upon the application, applicant shall submit such additional data,
information, exhibits, or other detail
as may be specified. An original and 7
conformed copies of such additional information shall be furnished to the
Commission. The Commission reserves
the right to request additional copies.
(d) Availability of Commission staff for
advice prior to formal filing. Prior to filing an application, any person may informally confer with the staff of the
Commission to obtain advice on any
problem of statement or presentation
of an application or any part thereof.
(Secs. 3(e), 7, 8, 82 Stat. 721, 725 (49 U.S.C.
1672, 1676, 1677; Natural Gas Act (15 U.S.C.
717–717w); Natural Gas Policy Act (15 U.S.C.
3301–3432); Department of Energy Organization Act (42 U.S.C. 7101–7352); E.O. 12009, 3
CFR 142)
[17 FR 7387, Aug. 14, 1952]
EDITORIAL NOTE: For FEDERAL REGISTER citations affecting § 157.14, see the List of CFR
Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

§ 157.15 Requirements for applications
covering acquisitions.
An application for a certificate authorizing acquisition of facilities, in
addition to complying with the applicable provisions of §§ 157.5 through
157.14, shall include a statement showing:
(a) The exact legal name of the vendor, lessor, or other party in interest
(hereinafter referred to as ‘‘vendor’’)
the State or other laws under which
vendor was organized, location of vendor’s principal place of business, and a
description of the business, operation

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Federal Energy Regulatory Commission
or property of vendor covered by the
application.
(b) Any certificate from the Commission, held by vendor, relating directly
to the facilities which applicant seeks
to acquire, citing the order, date thereof, docket designation, and title of the
proceeding; reference to and designation of any companion applications by
vendor for permission and approval
pursuant to section 7(b) of the Natural
Gas Act.
(c) The manner in which the facilities are to be acquired, the consideration to be paid, the method of arriving
at the amount thereof, and anticipated
expenses in addition to the consideration.
(d) The facilities to be acquired, their
present use, their proposed use after
acquisition, and whether they constitute all of vendor’s facilities.
(e) Any franchise, license, or permit
respecting the facilities involved,
showing expiration date thereof, and
the effect of the proposed acquisition
thereon.
[17 FR 7389, Aug. 14, 1952]

§ 157.16 Exhibits relating to acquisitions.
In addition to the exhibits required
by § 157.14, every application involving
acquisition of facilities must be accompanied by the exhibits listed below. Together with each exhibit applicant
must provide a full and complete explanation of the data submitted, the manner in which it was obtained, and the
reasons for the conclusions derived
from the exhibits, unless the applicant
includes a statement identifying the
schedule and rate containing the required information and data filed as
prescribed in § 385.2011 of this chapter.
If the Commission determines that a
formal hearing upon the application is
required or that testimony and hearing
exhibits should be filed, the Secretary
will promptly notify the applicant that
submittal of all the exhibits and testimony of all witnesses to be sponsored
by the applicant in support of his casein-chief is required. Submittal of these
exhibits and testimony must be within
20 days from the date of the Secretary’s notice, or any other time specified by the Secretary in the notice.
Sections 157.6(a) and 385.2011 of this

§ 157.16
chapter will govern the submissions required to be furnished to the Commission. Interveners and persons becoming
interveners after the date of the Secretary’s notice must be advised by the
applicant of the afore-specified exhibits
and testimony, and must be furnished
with copies upon request. If this section requires an applicant to reveal
Critical Energy Infrastructure Information (CEII), as defined by § 388.113(c)
of this chapter, to any person, the applicant shall follow the procedures set
out in § 157.10(d).
(a) Exhibit Q—Effect of acquisition on
existing contracts and tariffs. A statement showing the effect of the proposed transaction upon any agreements
for the purchase, sale, or interchange
of natural gas, and upon any rate
schedules or tariffs on file with this
Commission, together with pro forma
rate schedule sheets, notices of cancellation, or other tariff filings required to be made with this Commission.
(b) Exhibit R—Acquisition contracts. A
summary statement of all contracts,
agreements or undertakings relating to
the proposed acquisition, including:
(1) A conformed copy of each contract or other agreement covering or
relating to the acquisition of the facilities.
(2) The names and addresses of all
persons employed or to be employed
concerning the transaction, including
engineering,
financial
accounting,
legal, or other services, and the compensation, fees, or other payments,
paid or payable, to such persons.
(3) A disclosure of affiliation between
applicant and vendor or between either
of them and any other party in interest
in the proposed acquisition. See Exhibit D, § 157.14(a)(4).
(c) Exhibit S—Accounting. A statement showing:
(1) The amounts recorded upon the
books of the vendor, as being applicable to the facilities to be acquired, and
the related depreciation, depletion, and
amortization reserves. Include a brief
statement explaining the basis or
methods used to derive the related depreciation, depletion and amortization
reserves.
(2) The original cost of the facilities
to be acquired, segregated by accounts

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§ 157.17

18 CFR Ch. I (4–1–14 Edition)

prescribed in the Commission’s Uniform System of Accounts for Natural
Gas Companies; the method by which
the original cost was determined; and
whether such statement of original
cost has been approved by any regulatory body.
(3) If the original cost has not been
determined, an estimate thereof, based
upon records or data of vendor or its
predecessors, together with an explanation of the manner in which such estimate was made and the name and address of the present custodian of all existing pertinent records and data.
(4) The depreciation, depletion, and
amortization reserve requirements applicable to the original cost of the facilities to be acquired, estimated service lives, the approximate average age
of the facilities to which the depreciation reserve applies, the amortization
period, and the depletion rates and estimated gas reserves upon which accruals to the depletion reserve are based.
(5) The amount at which applicant
proposes to record the facilities upon
its books; the amount of the original
cost to be recorded, the depreciation,
depletion, and amortization reserves;
and the acquisition adjustments, if
any, together with applicant’s proposed
disposition of all adjustments.
(6) Duplicate facilities to be acquired
and retired, property which must be extensively rehabilitated, including a
clear description of such property, the
additional costs to be incurred, and the
accounting therefor proposed.
(7) A balance sheet of the company to
be acquired as of the most recent date
available, if the acquisition involved is
by purchase of capital stock and liquidation of the acquired company.
(8) A pro forma consolidating balance
sheet, as of the date of the merger if
the acquisition is by merger, showing
the merging of the accounts and the
adjustments relating thereto.
[17 FR 7389, Aug. 14, 1952, as amended by
Order 493, 53 FR 15029, Apr. 27, 1988; Order 603,
64 FR 26605, May 14, 1999; Order 643, 68 FR
52096, Sept. 2, 2003]

§ 157.17 Applications for temporary
certificates in cases of emergency.
In cases of emergency and pending
the determination of any application
on file with the Commission for a cer-

tificate of public convenience and necessity pursuant to section 7 of the
Natural Gas Act, application may be
made for a temporary certificate authorizing the construction and operation of extensions of existing facilities, interconnections of pipeline systems, or sales of natural gas that may
be required to assure maintenance of
adequate service, or to service particular customers. This application
must be submitted in the manner prescribed in §§ 157.6(a) and 385.2011 of this
chapter.
(a) Whenever the waiver provisions of
§ 385.2011 of this chapter apply, the application must be submitted in writing,
must be subscribed and verified by a responsible officer of applicant having
knowledge of the facts, and must state
clearly and specifically the exact character of the emergency, the proposed
method of meeting it, and the facts
claimed to warrant issuance of a temporary certificate.
(b) The application must be submitted on electronic media as prescribed in § 385.2011 of this chapter,
must be subscribed and verified by a responsible officer of applicant having
knowledge of the facts, and must state
clearly and specifically the exact character of the emergency, the proposed
method of meeting it, and the facts
claimed to warrant issuance of a temporary certificate.
[Order 493, 53 FR 15029, Apr. 27, 1988, as
amended by Order 493–B, 53 FR 49653, Dec. 9,
1988; Order 603, 64 FR 26606, May 14, 1999]

§ 157.18 Applications to abandon facilities or service; exhibits.
Applications for an order authorizing
abandonment of facilities or service
pursuant to section 7(b) of the Natural
Gas Act must contain a statement providing in detail the reasons for the
abandonment and must contain the exhibits listed below, unless the applicant includes a statement identifying
the schedule and rate containing the
required information and data filed as
prescribed in § 385.2011 of this chapter.
Any application for an abandonment
that is not excluded by § 380.4(a)(28) or

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Federal Energy Regulatory Commission
(29), must include an environmental report as specified by § 380.3(c)(2). Sections 157.6(a) and 385.2011 of this chapter will govern the submission of applications and exhibits required to be furnished. Together with each exhibit, applicant must provide a full and complete explanation of the data submitted, the manner in which it was obtained, and the reasons for the conclusions derived from the data. The Secretary may, in addition, require that
the testimony of all witnesses to be
presented by the applicant be filed together with all exhibits upon which applicant will base its case-in-chief.
(a) Exhibit T—Related applications. A
statement showing:
(1) The docket numbers of the prior
proceedings in which the facilities or
services sought to be abandoned were
certificated.
(2) The docket numbers of related applications pending before or which have
been authorized by the Commission
with an explanation of the interrelationship of those applications with
the instant application.
(b) Exhibit U—Contracts and other
agreements. A conformed copy of each
contract or other agreement pertaining
directly or indirectly to the abandonment of facilities or service, including
all agreements which influenced applicant to seek the abandonment and all
agreements which are dependent upon
the approval of the proposed abandonment.
(c) Exhibit V—Flow diagram showing
daily design capacity and reflecting operation of applicant’s system after abandonment. A flow diagram showing daily design capacity and reflecting operating
conditions of applicant’s system after
abandonment of facilities on that segment of the system affected by the
abandonment, including the following:
(1) Diameter, wall thickness, and
length of pipe remaining.
(2) For each remaining compressor
station, the size, type and number of
compressor units, horsepower required,
horsepower installed, volume of gas to
be used as fuel, suction and discharge
pressures, and compression ratio.
(3) Pressures and volumes of gas at
the main line inlet and outlet connections at each compressor station.

§ 157.18
(4) Pressures and volumes of gas at
each intake and takeoff point and at
the beginning and terminus of all remaining facilities.
(d) Exhibit W—Impact on customers
whose service will be terminated. A statement indicating the availability of natural gas from other sources to applicant’s customers whose service will be
terminated by the abandonment and a
statement showing the economic effect
of the abandonment on applicant’s customers. If no other natural gas is available, indicate the availability of other
fuels to those customers and explain
why the abandonment of service to
each customer is permitted by the public convenience and necessity.
(e) Exhibit X—Effect of the abandonment on existing tariffs. A statement
showing the effect of the proposed
abandonment upon any rate schedules
or tariffs on file with this Commission,
together with pro forma rate schedule
sheets, notices of cancellation, or other
tariff filings required to be made with
this Commission.
(f) Exhibit Y—Accounting treatment of
abandonment. Concisely describe the
changes of property, indicating the
cost of property to be abandoned in
place, the cost of property to be removed and salvaged, the proposed disposition of salvaged material, and a description of equipment to be relocated
setting forth its cost, its proposed new
location, and the extent of rehabilitation required. Include the information
required below.
(1) State the proposed accounting
treatment for property changes, showing, for example, retirements by primary plant accounts, cost of removal,
salvage realized for materials and
equipment sold, original cost of reusable materials and equipment recovered (see Account 154 of the Uniform
System of Accounts), and maintenance
costs for reconditioning of reusable
materials and equipment.
(2) If the abandonment will be by sale
of property, describe the property to be
sold, together with the proposed accounting treatment as required by
paragraph F of Gas Plant Instruction 5
of the Uniform System of Accounts. Include a brief statement explaining the
basis or methods used to derive the accumulated depreciation related to the

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§ 157.20

18 CFR Ch. I (4–1–14 Edition)

property to be disposed of. Applicant
may use pro forma accounting entries
based on estimated amounts, provided
that upon consummation of the sale he
must file proposed accounting entries
in conformity with the requirements of
the Uniform System of Accounts. If the
proposed sale will result in a taxable
gain to the applicant, indicate the
amount of federal and state income
taxes to be allocated to the gain. If no
allocation is to be made, explain the
reasons.
(3) State the amount of accumulated
deferred income taxes attributable to
the property to be abandoned and the
tax basis of the property. Indicate the
proposed accounting treatment of
those accumulated deferred taxes.
(g) Exhibit Z—Location of facilities.
Unless shown on Exhibit V or elsewhere, a geographic map of suitable
scale and detail showing, and appropriately differentiating between, all of
the facilities proposed to be abandoned
and the other existing facilities of applicant, the operation or capacity of
which will be directly affected by the
facilities to be abandoned. This map
shall clearly show the relationship of
the facilities to be abandoned to the
applicant’s overall system and shall include:
(1) Location, length and size of pipelines.
(2) Location and size (rated horsepower) of compressor stations.
(3) Location and designation of each
point of connection of existing facilities with (i) main line industrial and
other consumers, pipeline or distribution companies and municipalities, indicating towns and communities served
at wholesale or retail and (ii) gas-producing and storage fields, or other
sources of gas supply. Designate on the
map those facilities and services proposed to be abandoned.
[Order 280, 29 FR 4879, Apr. 7, 1964, as amended by Order 295, 30 FR 4130, Mar. 30, 1965;
Order 493, 53 FR 15029, Apr. 27, 1988; Order 603,
64 FR 26606, May 14, 1999]

§ 157.20 General conditions applicable
to certificates.
Such of the following terms and conditions, among others, as the Commission shall find is required by the public
convenience and necessity, shall attach

to the issuance of each certificate and
to the exercise of the rights granted
thereunder.
(a) The certificate shall be void and
without force or effect unless accepted
in writing by applicant within 30 days
from the issue date of the order issuing
such certificate: Provided, however,
That when an application for rehearing
of such order is filed in accordance
with section 19 of the Natural Gas Act,
such acceptance shall be filed within 30
days from the issue date of the order of
the Commission upon the application
for rehearing or within 30 days from
the date on which such application
may be deemed to have been denied
when the Commission has not acted on
such application within 30 days after it
has been filed: Provided further, That
when a petition for review is filed in
accordance with the provisions of section 19 of the Natural Gas Act, such acceptance shall be filed within 30 days
after final disposition of the judicial
review proceedings thus initiated.
(b) Any authorized construction, extension, or acquisition shall be completed and made available for service
by applicant and any authorized operation, service, or sale shall be available
for regular performance by applicant
within (period of time to be specified
by the Commission in each order) from
the issue date of the Commission’s
order issuing the certificate. Applicant
shall notify the Commission in writing
no later than 10 days after expiration
of this time period that the end-user/
shipper is unable to meet the imposed
timetable to commence service.
(c) Applicant must file with the Commission, in writing and under oath, an
original and four conformed copies, as
prescribed in § 385.2011 of this chapter
and, upon request must furnish an intervener with a single copy, of the following:
(1) Within ten days after the bona
fide beginning of construction, notice
of the date of such beginning;
(2) Within ten days after authorized
facilities have been constructed and
placed in service or any authorized operation, sale, or service has commenced, notice of the date of such
placement and commencement and
(3) Within six months after authorized facilities have been constructed, a

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Federal Energy Regulatory Commission
statement showing, on the basis of all
costs incurred to that date and estimated to be incurred for final completion of the project, the cost of constructing authorized facilities, such
total costs to be classified according to
the estimates submitted in the certificate proceeding and compared therewith and any significant differences explained.
(d) With respect to an acquisition authorized by the certificate, applicant
must file with the Commission, in writing and under oath, an original and
four conformed copies as prescribed in
§ 385.2011 of this chapter the following:
(1) Within 10 days after acquisition
and the beginning of authorized operations, notice of the dates of acquisition and the beginning of operations;
and
(2) Within 10 days after authorized facilities have been constructed and
within 10 days after such facilities have
been placed in service or any authorized operation, sale, or service has
commenced, notice of the date of such
completion, placement, and commencement, and
(e) The certificate issued to applicant
is not transferable in any manner and
shall be effective only so long as applicant continues the operations authorized by the order issuing such certificate and in accordance with the provisions of the Natural Gas Act, as well as
applicable rules, regulations, and orders of the Commission.
(f) In the interest of safety and reliability of service, facilities authorized
by the certificate shall not be operated
at pressures exceeding the maximum
operating pressure set forth in Exhibit
G-II to the application as it may be
amended prior to issuance of the certificate. In the event the applicant
thereafter wishes to change such maximum operating pressure it shall file
an appropriate petition for amendment
of the certificate. Such petition shall
include the reasons for the proposed
change. Nothing contained herein authorizes a natural gas company to operate any facility at a pressure above
the maximum prescribed by state law,

§ 157.21
if such law requires a lower pressure
than authorized hereby.
(Sec. 20, 52 Stat. 832; 15 U.S.C. 717s)
[17 FR 7389, Aug. 14, 1952, as amended by
Order 280, 29 FR 4879, Apr. 7, 1964; Order 317,
31 FR 432, Jan. 13, 1966; Order 324, 31 FR 9348,
July 8, 1966; Order 493, 53 FR 15030, Apr. 27,
1988; Order 493–B, 53 FR 49653, Dec. 9, 1988;
Order 603, 64 FR 26606, May 14, 1999]

§ 157.21 Pre-filing procedures and review process for LNG terminal facilities and other natural gas facilities prior to filing of applications.
(a) LNG terminal facilities and related
jurisdictional natural gas facilities. A
prospective applicant for authorization
to site, construct and operate facilities
included within the definition of ‘‘LNG
terminal,’’ as defined in § 153.2(d), and
any prospective applicant for related
jurisdictional natural gas facilities
must comply with this section’s pre-filing procedures and review process.
These mandatory pre-filing procedures
also shall apply when the Director
finds in accordance with paragraph
(e)(2) of this section that prospective
modifications to an existing LNG terminal are modifications that involve
significant state and local safety considerations that have not been previously addressed. Examples of such
modifications include, but are not limited to, the addition of LNG storage
tanks; increasing throughput requiring
additional tanker arrivals or the use of
larger vessels; or changing the purpose
of the facility from peaking to base
load. When a prospective applicant is
required by this paragraph to comply
with this section’s pre-filing procedures:
(1) The prospective applicant must
make a filing containing the material
identified in paragraph (d) of this section and concurrently file a Letter of
Intent pursuant to 33 CFR 127.007, and
a Preliminary Waterway Suitability
Assessment (WSA) with the U.S. Coast
Guard (Captain of the Port/Federal
Maritime Security Coordinator). The
latest information concerning the documents to be filed with the Coast
Guard should be requested from the
U.S. Coast Guard. For modifications to
an existing or approved LNG terminal,
this requirement can be satisfied by
the prospective applicant’s certifying

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§ 157.21

18 CFR Ch. I (4–1–14 Edition)

that the U.S. Coast Guard did not require such information.
(2) An application:
(i) Shall not be filed until at least 180
days after the date that the Director
issues notice pursuant to paragraph (e)
of this section of the commencement of
the prospective applicant’s pre-filing
process; and
(ii) Shall contain all the information
specified by the Commission staff after
reviewing the draft materials filed by
the prospective applicant during the
pre-filing process, including required
environmental material in accordance
with the provisions of part 380 of this
chapter, ‘‘Regulations Implementing
the National Environmental Policy
Act.’’
(3) The prospective applicant must
provide sufficient information for the
pre-filing review of any pipeline or
other natural gas facilities, including
facilities not subject to the Commission’s Natural Gas Act jurisdiction,
which are necessary to transport
regassified LNG from the subject LNG
terminal facilities to the existing natural gas pipeline infrastructure.
(b) Other natural gas facilities. When a
prospective applicant for authorization
for natural gas facilities is not required
by paragraph (a) of this section to comply with this section’s pre-filing procedures, the prospective applicant may
file a request seeking approval to use
the pre-filing procedures.
(1) A request to use the pre-filing procedures must contain the material
identified in paragraph (d) of this section unless otherwise specified by the
Director as a result of the Initial Consultation required pursuant to paragraph (c) of this subsection; and
(2) If a prospective applicant for nonLNG terminal facilities is approved to
use this section’s pre-filing procedures:
(i) The application will normally not
be filed until at least 180 days after the
date that the Director issues notice
pursuant to paragraph (e)(3) of this section approving the prospective applicant’s request to use the pre-filing procedures under this section and commencing the prospective applicant’s
pre-filing process. However, a prospective applicant approved by the Director
pursuant to paragraph (e)(3) of this section to undertake the pre-filing process

is not prohibited from filing an application at an earlier date, if necessary;
and
(ii) The application shall contain all
the information specified by the Commission staff after reviewing the draft
materials filed by the prospective applicant during the pre-filing process,
including required environmental material in accordance with the provisions of part 380 of this chapter, ‘‘Regulations Implementing the National
Environmental Policy Act.’’
(c) Initial consultation. A prospective
applicant required or potentially required or requesting to use the pre-filing process must first consult with the
Director on the nature of the project,
the content of the pre-filing request,
and the status of the prospective applicant’s progress toward obtaining the
information required for the pre-filing
request described in paragraph (d) of
this section. This consultation will
also include discussion of the specifications for the applicant’s solicitation
for prospective third-party contractors
to prepare the environmental documentation for the project, and whether
a third-party contractor is likely to be
needed for the project.
(d) Contents of the initial filing. A prospective applicant’s initial filing pursuant to paragraph (a)(1) of the section
for LNG terminal facilities and related
jurisdictional natural gas facilities or
paragraph (b)(1) of this section for
other natural gas facilities shall include the following information:
(1) A description of the schedule desired for the project including the expected application filing date and the
desired date for Commission approval.
(2) For LNG terminal facilities, a description of the zoning and availability
of the proposed site and marine facility
location.
(3) For natural gas facilities other
than LNG terminal facilities and related jurisdictional natural gas facilities, an explanation of why the prospective applicant is requesting to use
the pre-filing process under this section.
(4) A detailed description of the
project, including location maps and
plot plans to scale showing all major
plant components, that will serve as

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Federal Energy Regulatory Commission
the initial discussion point for stakeholder review.
(5) A list of the relevant federal and
state agencies in the project area with
permitting requirements. For LNG terminal facilities, the list shall identify
the agency designated by the governor
of the state in which the project will be
located to consult with the Commission regarding state and local safety
considerations. The filing shall include
a statement indicating:
(i) That those agencies are aware of
the prospective applicant’s intention to
use the pre-filing process (including
contact names and telephone numbers);
(ii) Whether the agencies have agreed
to participate in the process;
(iii) How the applicant has accounted
for agency schedules for issuance of
federal authorizations; and
(iv) When the applicant proposes to
file with these agencies for their respective permits or other authorizations.
(6) A list and description of the interest of other persons and organizations
who have been contacted about the
project (including contact names and
telephone numbers).
(7) A description of what work has already been done, e.g., contacting stakeholders, agency consultations, project
engineering, route planning, environmental and engineering contractor engagement, environmental surveys/studies, and open houses. This description
shall also include the identification of
the environmental and engineering
firms and sub-contractors under contract to develop the project.
(8) For LNG terminal projects, proposals for at least three prospective
third-party contractors from which
Commission staff may make a selection to assist in the preparation of the
requisite NEPA document.
(9) For natural gas facilities other
than LNG terminal facilities and related jurisdictional natural gas facilities, proposals for at least three prospective third-party contractors from
which Commission staff may make a
selection to assist in the preparation of
the requisite NEPA document, or a
proposal for the submission of an applicant-prepared draft Environmental Assessment as determined during the ini-

§ 157.21
tial consultation described in paragraph (c) of this section.
(10) Acknowledgement that a complete Environmental Report and complete application are required at the
time of filing.
(11) A description of a Public Participation Plan which identifies specific
tools and actions to facilitate stakeholder communications and public information, including a project website
and a single point of contact. This plan
shall also describe how the applicant
intends to respond to requests for information from federal and state permitting agencies, including, if applicable, the governor’s designated agency
for consultation regarding state and
local safety considerations with respect to LNG facilities.
(12) Certification that a Letter of Intent and a Preliminary WSA have been
submitted to the U.S. Coast Guard or,
for modifications to an existing or approved LNG terminal, that the U.S.
Coast Guard did not require such information.
(e) Director’s notices. (1) When the Director finds that a prospective applicant for authority to site and construct a new LNG terminal has adequately addressed the requirements of
paragraphs (a), (c) and (d) of this section, the Director shall issue a notice
of such finding. Such notice shall designate the third-party contractor. The
pre-filing process shall be deemed to
have commenced on the date of the Director’s notice, and the date of such
notice shall be used in determining
whether the date an application is filed
is at least 180 days after commencement of the pre-filing process.
(2) When the Director finds that a
prospective applicant for authority to
make modifications to an existing or
approved LNG terminal has adequately
addressed the requirements of paragraphs (a), (c) and (d) of this section,
the Director shall issue a notice making a determination whether prospective modifications to an existing LNG
terminal shall be subject to this section’s pre-filing procedures and review
process. Such notice shall designate
the third-party contractor, if appropriate. If the Director determines that
the prospective modifications are significant modifications that involve

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§ 157.21

18 CFR Ch. I (4–1–14 Edition)

state and local safety considerations,
the Director’s notice will state that
the pre-filing procedures shall apply,
and the pre-filing process shall be
deemed to have commenced on the date
of the Director’s notice in determining
whether the date an application is filed
is at least 180 days after commencement of the pre-filing process.
(3) When a prospective applicant requests to use this section’s pre-filing
procedures and review for facilities not
potentially subject to this section’s
mandatory requirements, the Director
shall issue a notice approving or disapproving use of the pre-filing procedures of this section and determining
whether the prospective applicant has
adequately addressed the requirements
of paragraphs (b), (c) and (d) of this section. Such notice shall designate the
third-party contractor, if appropriate.
The pre-filing process shall be deemed
to have commenced on the date of the
Director’s notice, and the date of such
notice shall be used in determining
whether the date an application is filed
is at least 180 days after commencement of the pre-filing process.
(f) Upon the Director’s issuance of a
notice commencing a prospective applicant’s pre-filing process, the prospective applicant must:
(1) Within seven days and after consultation with Commission staff, establish the dates and locations at which
the prospective applicant will conduct
open houses and meetings with stakeholders (including agencies) and Commission staff.
(2) Within 14 days, conclude the contract with the selected third-party contractor.
(3) Within 14 days, contact all stakeholders not already informed about the
project, including all affected landowners as defined in paragraph
§ 157.6(d)(2) of this section.
(4) Within 30 days, submit a stakeholder mailing list to Commission
staff.
(5) Within 30 days, file a draft of Resource Report 1, in accordance with
§ 380.12(c), and a summary of the alternatives considered or under consideration.
(6) On a monthly basis, file status reports detailing the applicant’s project
activities including surveys, stake-

holder communications, and agency
meetings.
(7) Be prepared to provide a description of the proposed project and to answer questions from the public at the
scoping meetings held by OEP staff.
(8) Be prepared to attend site visits
and other stakeholder and agency
meetings arranged by the Commission
staff, as required.
(9) Within 14 days of the end of the
scoping comment period, respond to
issues raised during scoping.
(10) Within 60 days of the end of the
scoping comment period, file draft Resource Reports 1 through 12.
(11) At least 60 days prior to filing an
application, file revised draft Resource
Reports 1 through 12, if requested by
Commission staff.
(12) At least 90 days prior to filing an
application, file draft Resource Report
13 (for LNG terminal facilities).
(13) Certify that a Follow-on WSA
will be submitted to the U.S. Coast
Guard no later than the filing of an application with the Commission (for
LNG terminal facilities and modifications thereto, if appropriate). The applicant shall certify that the U.S.
Coast Guard has indicated that a Follow-On WSA is not required, if appropriate.
(g) Commission staff and third-party
contractor involvement during the prefiling process will be designed to fit
each project and will include some or
all of the following:
(1) Assisting the prospective applicant in developing initial information
about the proposal and identifying affected parties (including landowners,
agencies, and other interested parties).
(2) Issuing an environmental scoping
notice and conducting such scoping for
the proposal.
(3) Facilitating issue identification
and resolution.
(4) Conducting site visits, examining
alternatives, meeting with agencies
and stakeholders, and participating in
the prospective applicant’s public information meetings.
(5) Reviewing draft Resource Reports.
(6) Initiating the preparation of a
preliminary Environmental Assessment or Draft Environmental Impact
Statement, the preparation of which

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Federal Energy Regulatory Commission
may involve cooperating agency review.
(h) A prospective applicant using the
pre-filing procedures of this section
shall comply with the procedures in
§ 388.112 of this chapter for the submission of documents containing privileged materials or critical energy infrastructure information.
[Order 665, 70 FR 60440, Oct. 18, 2005, as
amended by Order 756, 77 FR 4894, Feb. 1,
2012; Order 769, 77 FR 65475, Oct. 29, 2012]

§ 157.22 Schedule for final decisions on
a request for a Federal authorization
For an application under section 3 or
7 of the Natural Gas Act that requires
a Federal authorization—i.e., a permit,
special use authorization, certification,
opinion, or other approval—from a Federal agency or officer, or State agency
or officer acting pursuant to delegated
Federal authority, a final decision on a
request for a Federal authorization is
due no later than 90 days after the
Commission issues its final environmental document, unless a schedule is
otherwise established by Federal law.
[Order 687, 71 FR 62921, Oct. 27, 2006]

Subpart B—Open Seasons for
Alaska Natural Gas Transportation Projects
SOURCE: Order 2005, 70 FR 8286, Feb. 18,
2005, unless otherwise noted.

§ 157.30

Purpose.

This subpart establishes the procedures for conducting open seasons for
the purpose of making binding commitments for the acquisition of initial or
voluntary expansion capacity on Alaska natural gas transportation projects,
as defined herein.
§ 157.31

Definitions.

(a) ‘‘Alaska natural gas transportation project’’ means any natural gas
pipeline system that carries Alaska
natural gas to the international border
between Alaska and Canada (including
related facilities subject to the jurisdiction of the Commission) that is authorized under the Alaska Natural Gas
Transportation Act of 1976 or section

§ 157.33
103 of the Alaska Natural Gas Pipeline
Act.
(b) ‘‘Commission’’ means the Federal
Energy Regulatory Commission.
(c) ‘‘Voluntary expansion’’ means
any expansion in capacity of an Alaska
natural gas transportation project
above the initial certificated capacity,
including any increase in mainline capacity, any extension of mainline pipeline facilities, and any lateral pipeline
facilities beyond those certificated in
the initial certificate order, voluntarily made by the pipeline. An expansion done pursuant to section 105 of the
Alaska Natural Gas Pipeline Act is not
a voluntary expansion.
§ 157.32 Applicability.
These regulations shall apply to any
application to the Commission for a
certificate of public convenience and
necessity or other authorization for an
Alaska natural gas transportation
project, whether filed pursuant to the
Natural Gas Act, the Alaska Natural
Gas Transportation Act of 1976, or the
Alaska Natural Gas Pipeline Act, and
to applications for expansion of such
projects. Absent a Commission order to
the contrary, these regulations are not
applicable in the case of an expansion
ordered by the Commission pursuant to
section 105 of the Alaska Natural Gas
Pipeline Act.
§ 157.33 Requirement for open season.
(a) Any application for a certificate
of public convenience and necessity or
other authorization for a proposed
Alaska natural gas transportation
project must include a demonstration
that the applicant has conducted an
open season for capacity on its proposed project, in accordance with the
requirements of this subpart. Failure
to provide the requisite demonstration
will result in an application being rejected as incomplete.
(b) Initial capacity on a proposed
Alaska natural gas transportation
project may be acquired prior to an
open season through pre-subscription
agreements, provided that in any open
season as required in paragraph (a) of
this section, capacity is offered to all
prospective bidders at the same rates
and on the same terms and conditions
as contained in the pre-subscription

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§ 157.34

18 CFR Ch. I (4–1–14 Edition)

agreements. All pre-subscription agreements shall be made public by posting
on Internet websites and press releases
within ten days of their execution. In
the event there is more than one such
agreement, all prospective bidders
shall be allowed the option of selecting
among the several agreements all of
the rates, terms and conditions contained in any one such agreement.
[Order 2005, 70 FR 8286, Feb. 18, 2005, as
amended by Order 2005–A, 70 FR 35026, June
16, 2005]

§ 157.34

Notice of open season.

(a) Notice. A prospective applicant
must provide reasonable public notice
of an open season through methods including postings on Internet Web sites,
press releases, direct mail solicitations, and other advertising. In addition, a prospective applicant must provide actual notice of an open season to
the State of Alaska and to the Federal
Coordinator for Alaska Natural Gas
Transportation Projects.
(b) In-State Needs Study. A prospective applicant must conduct or adopt a
study of gas consumption needs and
prospective points of delivery within
the State of Alaska and rely upon such
study to develop the contents of the
notice required in paragraph (a) of this
section. Such study shall be identified
in the notice and if practicable, shall
include or consist of a study conducted,
approved, or otherwise sanctioned by
an appropriate governmental agency,
office or commission of the State of
Alaska. In its open season proposal, a
prospective applicant shall include an
estimate based upon the study, of how
much capacity will be used in-state.
(c) Contents of notice. Notice of the
open season required in paragraph (a)
of this section, shall contain at least
the following information; however, to
the extent that any item of such information is not known or determined at
the time the notice is issued, the prospective applicant shall make a good
faith estimate based on the best information available of all such unknown
or undetermined items of required information and further, must identify
the source of information relied on, explain why such information is not presently known, and update the informa-

tion when and if it is later determined
during the open season period:
(1) The general route of the proposed
project, including receipt and delivery
points, and any alternative routes
under consideration; delivery points
must include those within the State of
Alaska as determined by the In-State
Study in paragraph (b) of this section.
(2) Size and design capacity (including proposed certificate capacity at the
delivery points named in paragraph
(c)(1) of this section to the extent that
it differs from design capacity), a description of possible designs for expanded capacity beyond initial capacity, together with any estimated date
when such expansions designs may be
considered;
(3) Maximum allowable operating
pressure and expected actual operating
pressure;
(4) Delivery pressure at all delivery
points named in paragraph (c)(1) of this
section;
(5) Projected in-service date;
(6) An estimated unbundled transportation rate for each delivery point
named in paragraph (c)(1) of this section, stated on a volumetric or thermal
basis, for each service offered, including reservation rates for pipeline capacity, interruptible transportation
rates, usage rates, fuel retention percentages, and other applicable charges,
or surcharges, such as the Annual
Charge Adjustment (ACA); (if rates are
estimated on a volumetric basis then
the notice must inform bidders that
final pro forma service agreements and
the sponsor’s proposed FERC tariff will
have to be submitted with rates based
on a thermal basis.)
(7) The estimated cost of service (i.e.,
estimated cost of facilities, depreciation, rate of return and capitalization,
taxes and operational and maintenance
expenses), and estimated cost allocations, rate design volumes and rate design;
(8) Based on the In-State Study and
the delivery points within the State of
Alaska identified in paragraph (c)(1) of
this section, there must be an estimated transportation rate for such deliveries, based on the amount of instate needs shown in the study. Such
estimated transportation rate must be
based on the costs to make such in-

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Federal Energy Regulatory Commission
state deliveries and shall not include
costs to make deliveries outside the
State of Alaska;
(9) Negotiated rate and other rate options under consideration, including
any rates and terms of any precedent
agreements with prospective anchor
shippers that have been negotiated or
agreed to outside of the open season
process prescribed in this section;
(10) Quality specifications and any
other requirements applicable to gas to
be delivered to the project; provided
that a prospective applicant shall not
require that potential shippers process
or treat their gas at any designated
plant or facility;
(11) Terms and conditions for each
service offered;
(12) Creditworthiness standards to be
applied to, and any collateral requirements for, prospective shippers;
(13) The date, if any, by which potential shippers and the prospective applicant must execute precedent agreements;
(14) A detailed methodology for determining the value of bids for deliveries within the State of Alaska and
for deliveries outside the State of Alaska;
(15) The methodology by which capacity will be awarded, in the case of
over-subscription, clearly stating all
terms that will be considered, except
that if any capacity is acquired
through pre-subscription agreements
as provided in § 157.33(b) and the prospective applicant does not redesign
the project to accommodate all capacity requests, only that capacity that
was acquired through pre-subscription
or was bid in the open season on the
same rates, terms, and conditions as
any one of the pre-subscription agreements shall be allocated on a pro rata
basis and no other capacity acquired
through the open season shall be allocated.
(16) Required bid information, whether bids are binding or non-binding, receipt and delivery point requirements,
the form of a precedent agreement and
time of execution of the precedent
agreement, definition and treatment of
non-conforming bids;
(17) The projected date for filing an
application with the Commission;

§ 157.34
(18) All information that the prospective applicant has in its possession pertaining to the proposed service to be
offered, projected pipeline capacity and
design, proposed tariff provisions, and
cost projections, or that the prospective applicant has made available to,
or obtained from, any potential shipper, including any affiliates of the
project sponsor and any shippers with
pre-subscribed capacity, prior to the
issuance of the public notice of open
season;
(19) A list of the names and addresses
of the prospective applicant’s affiliated
sales and marketing units and affiliates involved in the production of natural gas in the State of Alaska. Affiliated unit means ‘‘Affiliate’’ as defined
in § 358.3(a) of this chapter. Marketing
units and or affiliates are those conducting a ‘‘marketing function’’ as defined in § 358.3(c) of this chapter, except
that the exemption in § 358.3(c)(2)(iii)
shall not apply;
(20) A comprehensive organizational
chart showing:
(i) The organizational structure of
the prospective applicant’s parent corporation(s) with the relative position
in the corporate structure of marketing and sales units and any affiliates involved in the production of natural gas in the State of Alaska.
(ii) The job titles and descriptions,
and chain of command for all officers
and directors of the prospective applicant’s marketing and sales units and
any affiliates involved in the production of natural gas in the State of Alaska; and
(21) A statement that any officers
and directors of the prospective applicant’s affiliated sales and marketing
units and affiliates involved in the production of natural gas in the State of
Alaska named in paragraph (c)(19) of
this section will be prohibited from obtaining information about the conduct
of the open season or allocation of capacity that is not posted on the open
season Internet Web site or that is otherwise also available to the general
public or other participants in the open
season.
(d) Timing. (1) A prospective applicant
must provide prospective shippers at
least 90 days from the date on which

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§ 157.35

18 CFR Ch. I (4–1–14 Edition)

notice of the open season is given within which to submit requests for transportation services. No bid shall be rejected because a prospective shipper
has submitted another bid in another
open season conducted under this subpart.
(2) A prospective applicant must consider any bids tendered after the expiration of the open season by qualifying
bidders and may reject them only if
they cannot be accommodated due to
economic, engineering, design, capacity or operational constraints, or accommodating the request would otherwise adversely impact the timely development of the project, and a detailed explanation must accompany
the rejection. Any bids tendered after
the expiration of the open season must
contain a good faith showing, including
a statement of the circumstances
which prevented the late bidder from
tendering a timely bid and how those
circumstances have changed. If a prospective applicant determines at any
time that, based on the criteria stated
in this paragraph, no further late bids
for capacity can be accommodated, it
may request Commission approval to
summarily reject any further requests.
(3) Within 10 days after precedent
agreements have been executed for capacity allocated in the open season, the
prospective applicant shall make public on the Internet and through press
releases the results of the open season,
at least including the name of the prospective shipper, amount of capacity
awarded, and term of agreement.
(4) Within 20 days after precedent
agreements have been executed for capacity allocated in the open season, the
prospective applicant must submit copies of all such precedent agreements to
the Commission and copies of any relevant correspondence with bidders for
capacity who were not allocated capacity that identifies why such bids were
not accepted (all documents identified
in this paragraph (d)(4) may be filed
seeking privileged treatment pursuant
to § 388.112 of this chapter.
[Order 2005, 70 FR 8286, Feb. 18, 2005, as
amended by Order 2005–A, 70 FR 35026, June
16, 2005; 75 FR 15342, Mar. 29, 2010; Order 769,
77 FR 65475, Oct. 29, 2012]

§ 157.35 Undue discrimination or preference.
(a) All binding open seasons shall be
conducted without undue discrimination or preference in the rates, terms
or conditions of service and all capacity allocated as a result of any open
season shall be awarded without undue
discrimination or preference of any
kind.
(b) Any complaint filed pursuant to
§ 385.206 of this chapter alleging noncompliance with any of the requirements of this subpart shall be processed under the Commission’s Fast
Track Processing procedures contained
in § 385.206(h).
(c) Each prospective applicant conducting an open season under this subpart must function independent of the
other divisions of the prospective applicant as well as the prospective applicant’s ‘‘affiliates’’ performing a ‘‘marketing function’’ as those terms are defined in § 358.3(a) and (c) of the Commission’s regulations, except that the
exemption in § 358.3(c)(2)(iii) shall not
apply. In instances in which the prospective applicant is not an entity created specifically to conduct an open
season under this subpart, the prospective applicant must create or designate
a unit or division to conduct the open
season that must function independent
of the other divisions of the project applicant as well as the project applicant’s ‘‘affiliates’’ performing a ‘‘marketing function’’ as those terms are defined in § 358.3(a) of this chapter, except
that the exemption in 358.3(c)(2)(iii)
shall not apply.
(d) Each project applicant conducting
an open season under this subpart that
is not otherwise subject to the provisions of part 358 of this chapter must
comply with the following sections of
that part: §§ 358.4(c) and (d), 358.5, 358.6,
358.7(a), (b), and (c), and 358.8 (b) and (c)
of this chapter.
[Order 2005, 70 FR 8286, Feb. 18, 2005, as
amended by Order 2005–A, 70 FR 35026, June
16, 2005; 75 FR 15342, Mar. 29, 2010]

§ 157.36 Open seasons for expansions.
Any open season for capacity exceeding the initial capacity of an Alaska
natural gas transportation project
must provide the opportunity for the
transportation of gas other than

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Federal Energy Regulatory Commission
Prudhoe Bay or Point Thomson production. In considering a proposed voluntary expansion of an Alaska natural
gas pipeline project, the Commission
will consider the extent to which the
expansion will be utilized by shippers
other than those who are the initial
shippers on the project and, in order to
promote competition and open access
to the project, may require design
changes to ensure that some portion of
the expansion capacity be allocated to
new shippers willing to sign long-term
firm transportation contracts, including shippers seeking to transport natural gas from areas other than Prudhoe
Bay and Point Thomson.
[Order 2005–A, 70 FR 35026, June 16, 2005]

§ 157.37

which the Commission will act on the
proposed plan.
[Order 2005–A, 70 FR 35026, June 16, 2005]

§ 157.39 Rate treatment of pipeline expansions.
There shall be a rebuttable presumption that rates for any expansion of an
Alaska natural gas transportation
project shall be determined on a rolledin basis.

Subpart C [Reserved]
Subpart D—Exemption of Natural
Gas Service for Drilling, Testing, or Purging from Certificate Requirements

Project design.

In reviewing any application for an
Alaska natural gas pipeline project,
the Commission will consider the extent to which a proposed project has
been designed to accommodate the
needs of shippers who have made conforming bids during an open season, as
well as the extent to which the project
can accommodate low-cost expansion,
and may require changes in project design necessary to promote competition
and offer a reasonable opportunity for
access to the project.
[Order 2005, 70 FR 8286, Feb. 18, 2005; Order
756, 77 FR 4894, Feb. 1, 2012]

§ 157.38

§ 157.53

Pre-approval procedures.

No later than 90 days prior to providing the notice of open season required by § 157.34(a), a prospective applicant must file, for Commission approval, a detailed plan for conducting
an open season in conformance with
this subpart. The prospective applicant’s plan shall include the proposed
notice of open season. Upon receipt of a
request for such a determination, the
Secretary of the Commission shall
issue a notice of the request, which will
then be published in the FEDERAL REGISTER. The notice shall establish a date
on which comments from interested
persons are due and a date, which shall
be within 60 days of receipt of the prospective applicant’s request unless otherwise directed by the Commission, by

AUTHORITY: Natural Gas Act, as amended,
15 U.S.C. 717 et. seq., Energy Supply and Environmental Coordination Act, 15 U.S.C. 791
et. seq., Federal Energy Administration Act,
15 U.S.C. 761 et. seq., Natural Gas Policy Act
of 1978, Pub. L. 95–621, 92 Stat. 3350, Department of Energy Organization Act, Pub. L. 95–
91, E.O. 12009, 42 FR 46267.

§ 157.53

Testing.

(a) Construction and operation of facilities necessary to render direct natural gas service for use in the testing
and purging of new natural gas pipeline
facilities are exempted from the certificate requirements of section 7(c) of
the Natural Gas Act, when the construction and operation of such facilities are conducted in accordance with
paragraph (b) of this section.
(b) Operations undertaken to render
direct natural gas service shall be terminated upon the completion of the
purging or testing of the pipeline facilities. Persons undertaking any construction or operation of facilities or
service under this section shall file an
original and two copies of an annual
statement, by February 1 of each year,
describing their activities hereunder.
[43 FR 56544, Dec. 1, 1978, as amended at 60
FR 53065, Oct. 11, 1995]

Subpart E [Reserved]

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§ 157.201

18 CFR Ch. I (4–1–14 Edition)

Subpart
F—Interstate
Pipeline
Blanket Certificates and Authorization Under Section 7 of
the Natural Gas Act for Certain Transactions and Abandonment
§ 157.201 Applicability.
(a) Scope. This subpart establishes a
procedure whereby an interstate pipeline may obtain a blanket certificate
authorizing certain construction and
operation of facilities and certain certificate amendments and abandonment
under section 7 of the Natural Gas Act.
(b) Who may apply. This procedure is
only applicable to interstate pipelines.
(c) Cross-reference. The procedures applicable to transportation by interstate
pipelines under blanket certificates are
set forth in subpart G of part 284 of this
chapter.
(d) Availability of case-specific certificates. Nothing in this subpart shall preclude an interstate pipeline from proceeding under any other provision of
the Commission’s regulations to obtain
Commission approval of abandonments
or a temporary or permanent certificate of public convenience and necessity.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 436, 50 FR 42490, Oct. 18,
1985; Order 603, 64 FR 26606, May 14, 1999]

§ 157.202 Definitions.
(a) General rule. Terms defined in the
Natural Gas Policy Act of 1978 (NGPA)
shall have the same meaning for the
purposes of this subpart as they have
under the Natural Gas Policy Act of
1978.
(b) Subpart F definitions. For purposes
of this subpart:
(1) Certificate holder means any interstate pipeline with an effective blanket
certificate issued pursuant to this subpart.
(2)(i) Eligible facility means, except
as provided in paragraph (b)(2)(ii) of
this section, any facility subject to the
Natural Gas Act jurisdiction of the
Commission that is necessary to provide service within existing certificated levels. Eligible facility also includes any gas supply facility or any
facility, including receipt points, needed by the certificate holder to receive

gas into its system for further transport or storage, and interconnecting facilities between transporters that
transport natural gas under part 284 of
this chapter. Further, eligible facility
includes main line, lateral, and compressor replacements that do not qualify under § 2.55(b) of this chapter because they will result in an incidental
increase in the capacity of main line
facilities, or because they will not satisfy the location or work space requirements of § 2.55(b). Replacements must
be done for sound engineering purposes.
Replacements for the primary purpose
of creating additional main line capacity are not eligible facilities; however,
replacements and the modification of
facilities to rearrange gas flows or increase compression for the primary
purpose of restoring service in an emergency due to sudden unforeseen damage to main line facilities are eligible
facilities. Eligible facility also includes
auxiliary installations and observation
wells which do not qualify under
§ 2.55(a) of this chapter because they
will not satisfy the location or work
space requirements of § 2.55(a).
(ii) Exclusions: ‘‘Eligible facility’’
does not include:
(A) A main line of a transmission
system, except replacement facilities
covered under § 157.202(b)(2)(i).
(B) An extension of a main line, except replacement facilities covered
under § 157.202(b)(2)(i).
(C) A facility, including compression
and looping, that alters the capacity of
a main line, except replacement facilities and facility modifications covered
under paragraph (b)(2)(i) of this section;
(D) A facility required to test or develop an underground storage field or
that alters the certificated capacity,
deliverability, or storage boundary, or
a facility required to store gas above
ground in either a gaseous or liquified
state, or a facility used to receive gas
from plants manufacturing synthetic
gas or from plants gasifying liquefied
natural gas, or wells needed to utilize
an underground storage field.
(E) Delivery points under § 157.211.
(F) Temporary compression under
§ 157.209;
(G) A facility that crosses a state
line and is constructed for the primary

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Federal Energy Regulatory Commission
purpose of transporting gas which is
also transported by an intrastate pipeline under section 311(a)(2) of the
NGPA;
(3) Facility does not include the items
described in § 2.55 of this chapter.
(4) Temporary compression means compressor facilities installed and operated
at existing compressor locations for
the limited purpose of temporarily replacing existing permanent compressor
facilities that are undergoing maintenance or repair or that are pending permanent replacement.
(5) Main line means the principal
transmission facilities of a pipeline
system extending from supply areas to
market areas and does not include
small diameter supply or delivery
laterals or gathering lines.
(6) Miscellaneous rearrangement of any
facility means any rearrangement of a
facility, excluding underground storage
injection/withdrawal wells, that does
not result in any change of service rendered by means of the facilities involved, including changes in existing
field operations or relocation of existing facilities:
(i) On the same property;
(ii) When required by highway construction, dam construction, encroachment of residential, commercial, or industrial areas, erosion, or the expansion or change of course of rivers,
streams or creeks, or
(iii) To respond to other natural
forces beyond the certificate holder’s
control when necessary to ensure safety or maintain the operational integrity of the certificate holder’s facilities.
(7) Project means a unit of improvement or construction that is used and
useful upon completion.
(8) Project cost means the total actual
cost of constructing the jurisdictional
portions of a project. In the case of a
project constructed jointly by more
than one interstate pipeline, the
project cost is the total cost, irrespective of the amount paid by each pipeline.
(9) Right-of-way grantor means (i) a
person who grants a right-of-way easement to the certificate holder; or (ii)
any successor to an interest which is
subject to the easement.

§ 157.202
(10) Delivery point means a tap and/or
metering and appurtenant facilities,
such as heaters, minor gas conditioning, treatment, odorization, and
similar equipment, necessary to enable
the certificate holder to deliver gas to
any party.
(11)
Sensitive
environmental
area
means:
(i) The habitats of species which have
been identified as endangered or
threatened under the Endangered Species Act (Pub. L. 93–205, as amended)
and essential fish habitat as identified
under the Magnuson-Stevens Fishery
Conservation and Management Act (16
U.S.C. 1801, et seq.);
(ii) National or State Forests or
Parks;
(iii) Properties listed on, or eligible
for inclusion in, the National Register
of Historic Places, or the National Register of Natural Landmarks;
(iv) Floodplains and wetlands;
(v) Designated or proposed wilderness
areas, national or state wild and scenic
rivers, wildlife refuges and management areas and sanctuaries;
(vi) Prime agricultural lands, designated by the Department of Agriculture; or
(vii) Sites which are subject to use by
American Indians and other Native
Americans for religious purposes.
(12) Interconnection facilities means
the interconnecting point, which includes the tap, metering, and M&R facilities and the related interconnecting
pipeline.
(13) Emergency means a sudden unanticipated loss of gas supply or capacity
that requires an immediate restoration
of interrupted service for protection of
life or health or for maintenance of
physical property.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 319, 48 FR 34888, Aug. 1,
1983; Order 319–A, 48 FR 51446, Nov. 9, 1983;
Order 436, 50 FR 42490, Oct. 18, 1985; Order 603,
64 FR 26606, May 14, 1999; Order 603–A, 64 FR
54536, Oct. 7, 1999; Order 609, 64 FR 57391, Oct.
25, 1999; Order 603–B, 65 FR 11464, Mar. 3, 2000;
Order 633, 68 FR 31604, May 28, 2003; Order 790,
78 FR 72812, Dec.4, 2013]

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§ 157.203

18 CFR Ch. I (4–1–14 Edition)

§ 157.203 Blanket certification.
(a) Effect. A blanket certificate
issued pursuant to this subpart authorizes the certificate holder, in accordance with the provisions of this subpart, to engage in any of the activities
specified in § 157.208 through § 157.218 (as
may be amended from time to time).
(b) Automatic authorization. A blanket
certificate issued pursuant to this subpart authorizes the certificate holder
to engage in transactions described in
§ 157.208(a), § 157.209(a), § 157.211(a)(1),
§ 157.213(a), § 157.215, § 157.216(a), or
§ 157.218 without further Commission
approval.
(c) Prior notice required. A blanket
certificate issued pursuant to this subpart authorizes the certificate holder
to engage in activities described in
§ 157.208(b),
§ 157.210,§ 157.211(a)(2),
§ 157.212,
§ 157.213(b),
§ 157.214,
or
§ 157.216(b), if the requirements of
§ 157.205 have been fulfilled.
(d) Landowner notification. (1) Except
as identified in paragraph (d)(3) of this
section, no activity described in paragraph (b) of this section is authorized
unless the company makes a good faith
effort to notify, in writing all affected
landowners, as defined in § 157.6(d)(2),
at least 45 days prior to commencing
construction or at the time it initiates
easement negotiations, whichever is
earlier. A landowner may waive the 45day prior notice requirement in writing
as long as the notice has been provided.
For activity required to restore service
in an emergency, the 45-day prior notice period is satisfied in the event a
company obtains all necessary easements. The notification shall include
at least:
(i) A brief description of the facilities
to be constructed or replaced and the
effect the construction activity will
have on the landowner’s property;
(ii) The name and phone number of a
company representative who is knowledgeable about the project;
(iii) A description of the company’s
environmental complaint resolution
procedure that must:
(A) Provide landowners with clear
and simple directions for identifying
and resolving their environmental
mitigation problems and concerns during construction of the project and restoration of the right-of way;

(B) Provide a local or toll-free phone
number and a name of a specific person
to be contacted by landowners and
with responsibility for responding to
landowner problems and concerns, and
who will indicate when a landowner
should expect a response;
(C) Instruct landowners that if they
are not satisfied with the response,
they may call the company’s Hotline;
and
(D) Instruct landowners that, if they
are still not satisfied with the response, they may contact the Commission’s Dispute Resolution Service at
the current telephone number and email address, which is to be provided in
the notification.
(2) For activities described in paragraph (c) of this section, the company
shall make a good faith effort to notify
in writing all affected landowners, as
defined in § 157.6(d)(2), within at least
three business days following the date
that a docket number is assigned to
the application or at the time it initiates easement negotiations, whichever
is earlier. The notice should include at
least:
(i) A brief description of the company
and the proposed project, including the
facilities to be constructed or replaced
and the location (including a general
location map), the purpose, and the
timing of the project and the effect the
construction activity will have on the
landowner’s property;
(ii) A general description of what the
company will need from the landowner
if the project is approved, and how the
landowner may contact the company,
including a local or toll-free phone
number and a name of a specific person
to contact who is knowledgeable about
the project;
(iii) The docket number (if assigned)
for the company’s application;
(iv) A general description of the blanket certificate program and procedures, as posted on the Commission’s
Web site at the time the landowner notification is prepared, and the link to
the information on the Commission’s
Web site;
(v) A brief summary of the rights the
landowner has in Commission proceedings and in proceedings under the
relevant eminent domain rules; and

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Federal Energy Regulatory Commission
(vi) The following paragraph: This
project is being proposed under the
prior notice requirements of the blanket certificate program administered
by the Federal Energy Regulatory
Commission. Under the Commission’s
regulations, you have the right to protest this project within 60 days of the
date the Commission issues a notice of
the pipeline’s filing. If you file a protest, you should include the docket
number listed in this letter and provide
the specific reasons for your protest.
The protest should be mailed to the
Secretary of the Federal Energy Regulatory Commission, 888 First St., NE.,
Room 1A, Washington, DC 20426. A copy
of the protest should be mailed to the
pipeline at [pipeline address]. If you
have any questions concerning these
procedures you can call the Commission’s Office of External Affairs at (202)
208–1088; and
(vii) The description of the company’s environmental complaint resolution procedure as described in paragraph (d)(1)(iii) of this section.
(3) Exceptions. (i) No landowner notice
is required for replacements which
would have been done under § 2.55 of
this chapter but for the fact that the
replacement facilities are not of the
same capacity as long as they meet the
location requirements of § 2.55(b)(1)(ii)
of this chapter and do not cause any
ground disturbance; or any replacement done for safety, DOT compliance,
environmental, or unplanned maintenance reasons that are not foreseen
and that require immediate attention
by the certificate holder.
(ii) No landowner notice is required
for abandonments which involve only
the sale or transfer of the facilities,
and the easement will continue to be
used for transportation of natural gas.
(iii) No landowner notice is required
if there is only one landowner and that
landowner has requested the service or
facilities.
(iv) No landowner notice is required
for activities that do not involve
ground disturbance or changes to operational air and noise emissions.
(4) If paragraphs (d)(1) or (d)(2) of this
section require an applicant to reveal
Critical Energy Infrastructure Information (CEII), as defined by § 388.113(c)
of this chapter, to any person, the ap-

§ 157.204
plicant shall follow the procedures set
out in § 157.10(d).
[Order 234, 47 FR 24266, June 4, 1982]
EDITORIAL NOTE: For FEDERAL REGISTER citations affecting § 157.203, see the List of CFR
Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

§ 157.204

Application procedure.

(a) Who may apply. Any interstate
pipeline which has been issued a certificate other than a limited-jurisdiction certificate, pursuant to section 7
of the Natural Gas Act and had rates
accepted by the Commission may apply
for a blanket certificate under this subpart in the manner prescribed in
§§ 157.6(a), 157.14(a) and 385.2011 of this
chapter.
(b) Hearing procedure. Upon receiving
an application for a blanket certificate
under this subpart, the Commission
will conduct a hearing pursuant to section 7(c) of the Natural Gas Act and
§§ 1.32 and 157.11 of this chapter.
(c) Issuance. If required by the
present or future public convenience
and necessity, the Commission will
issue a blanket certificate to the applicant.
(d) Application contents. Applications
for blanket certificates shall contain:
(1) Information indicating the exact
legal name of the applicant; its principal place of business; whether the applicant is an individual, partnership,
corporation or otherwise; citation to
the certificate proceeding in which the
applicant was found to be a natural gas
company; the state under the laws of
which the applicant is organized or authorized to do business; and the name,
title, and mailing address and telephone number of the person or persons
to whom communications concerning
the application are to be addressed;
(2) A statement that the applicant
will comply with the terms, conditions
and procedures specified in this subpart.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 319, 48 FR 34888, Aug. 1,
1983; Order 433, 50 FR 40345, Oct. 3, 1985; Order
436, 50 FR 42490, Oct. 18, 1985; Order 493, 53 FR
15030, Apr. 27, 1988; Order 603, 64 FR 26607,
May 14, 1999]

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§ 157.205

18 CFR Ch. I (4–1–14 Edition)

§ 157.205 Notice procedure.
(a) Applicability. No activity described
in
§§ 157.208(b),
§ 157.210,
§ 157.211(a)(2),
§ 157.212,
§ 157.213(b),
157.214 or 157.216(b), except for activity
required to restore service in an emergency, is authorized by a blanket certificate granted under this subpart, unless, prior to undertaking such activity:
(1) The notice requirements have
been fulfilled in accordance with the
provisions of this section; and
(2) Either (i) no protest has been filed
pursuant to paragraph (e) of this section or, (ii) if a protest has been filed,
it has been withdrawn or dismissed
pursuant to paragraph (g) of this section.
(b) Contents. For any activity subject
to the requirements of this section, the
certificate holder must file with the
Secretary of the Commission an original and seven copies, as prescribed in
§§ 157.6(a) and 385.2011 of this chapter, a
request for authorization under the notice procedures of this section that
contains:
(1) The exact legal name of the certificate holder and mailing address and
telephone number of the person or persons to whom communications concerning the request are to be addressed;
(2) The docket number in which its
blanket certificate was issued;
(3) Any information required in
§§ 157.208 through 157.218 of this chapter
for the particular activity;
(4) A verified statement that the proposed activity complies with the requirements of this subpart;
(5) A form of notice of the application
suitable for publication in the FEDERAL
REGISTER in accordance with the specifications in § 385.203(d) of this chapter;
and
(6) Identities and docket numbers of
other applications related to the transaction. All related filings must be
made within 10 days of the first filing.
Otherwise the applications on file will
be rejected under paragraph (c) of this
section without prejudice to refiling
when all parties are ready to proceed.
(c) Rejection of request. The Director
of the Office of Energy Projects shall
reject within 10 days of the date of filing a request which patently fails to
comply with the provisions of para-

graph (b) of this section, without prejudice to the pipeline’s refiling a complete application.
(d) Publication of notice of request. (1)
Unless the request has been rejected
pursuant to paragraph (c) of this section, the Secretary of the Commission
shall issue a notice of the request within 10 days of the date of the filing,
which will then be published in the
FEDERAL REGISTER. The notice shall
designate a deadline for filing protests,
or interventions to the request. The
deadline shall be 60 days after the date
of issuance of the notice of the request.
(2) [Reserved]
(e) Protests. (1) Any person or the
Commission’s staff may file a protest
prior to the deadline. Copies of the protest must be served on the Secretary of
the Commission and the certificate
holder.
(2) Protests shall be filed in the following form:
UNITED STATES OF AMERICA BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
[Name of pipeline holding the blanket certificate] Docket No. [Include both docket
no. of the blanket certificate and the prior
notice transaction]
PROTEST TO PROPOSED BLANKET CERTIFICATE
ACTIVITY
(Name of Protestor) hereby protests the request filed by (Name of pipeline) to conduct
a (construction of facilities, abandonment,
etc.) under § 157.ll of the Commission’s regulations. Protestor seeks to have this request processed as a separate application.
(Include
a
detailed
statement
of
Protestor’s interest in the activity and the
specific reasons and rationale for the objection and whether the protestor seeks to be
an intervener.)

(f) Effect of protest. If a protest is filed
in accordance with paragraph (e) of
this section, then the certificate holder, the person who filed the protest,
any intervenors, and staff shall have 30
days from the deadline determined in
accordance with paragraph (d) of this
section, to resolve the protest, and to
file a withdrawal of the protest pursuant to paragraph (g) of this section. Informal settlement conferences may be
convened by the Director of the Office
of Energy Projects or his designee. If a
protest is not withdrawn or dismissed
pursuant to paragraph (g) of this section, the activity shall not be deemed

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Federal Energy Regulatory Commission
authorized by the blanket certificate.
Instead, the request filed by the certificate holder shall be treated as an application for section 7 authorization for
the particular activity. The FEDERAL
REGISTER notice of the request shall be
deemed to be notice of the section 7 application sufficient to fulfill the notice
requirement of §§ 157.9 and 157.10.
(g) Withdrawal or dismissal of protests.
The protestor may withdraw a protest
within the 30 day period following the
deadline determined in accordance
with paragraph (d) of this section by
submitting written notice of withdrawal to the Secretary of the Commission and serving a copy on the certificate holder, any intervenors and any
other party requesting service. The
withdrawal must state that the certificate holder and the protestor concur in
the withdrawal. Within 10 days of the
filing of a protest, the Director of the
Office of Energy Projects will dismiss
that protest if it does not raise a substantive issue and fails to provide any
specific detailed reason or rationale for
the objection. If a protest is dismissed,
the notice requirements of this section
will not be fulfilled until the earlier of:
(1) a 30 day period following the deadline determined in paragraph (d) of this
section has run; or the dismissed protesting party notifying the Secretary
of the Commission that its concerns
have been resolved.
(h) Final authorization. (1) If no protest is filed within the time allowed by
the Secretary, the certificate holder is
authorized to conduct the activity
under its blanket certificate, effective
on the day after time expires for filing
protests and interventions unless, during that time, the certificate holder
withdraws its application in accordance with § 385.216 of this chapter.
(2) If any protest is filed within the
time allowed for protest and interventions and is subsequently withdrawn
under paragraph (g) of this section, the
certificate holder is authorized to conduct the activity under its blanket certificate, effective upon the day after
the withdrawal of all protests, unless
the certificate holder withdraws its application in accordance with § 385.216 of
this chapter prior to that date.
[Order 234, 47 FR 24266, June 4, 1982]

§ 157.206
EDITORIAL NOTE: For FEDERAL REGISTER citations affecting § 157.205, see the List of CFR
Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

§ 157.206 Standard conditions.
Any activity authorized under a
blanket certificate issued under this
subpart is subject to the following conditions:
(a) Revisions. (1) The Commission reserves the right to amend the requirements of this subpart from time to
time.
(2) The blanket certificate is not
transferable in any manner and shall
be effective only so long as the certificate holder continues the activities authorized by the order issuing such certificate and does so in accordance with
the provisions of the Natural Gas Act,
as well as applicable rules, regulations,
and orders of the Commission.
(b) Environmental compliance. This
paragraph only applies to activities
that involve ground disturbance or
changes to operational air and noise
emissions.
(1) The certificate holder shall adopt
the requirements set forth in § 380.15 of
this chapter for all activities authorized by the blanket certificate and
shall issue the relevant portions thereof to construction personnel, with instructions to use them.
(2) All activities shall be consistent
with all applicable law including the
provisions of the following statutes and
regulations or compliance plans developed to implement these statutes:
(i) Clean Water Act, as amended (33
U.S.C. 1251 et seq.) and the National
Pollution Discharge Elimination System Program, 40 CFR part 122 et seq.;
(ii) Clean Air Act, as amended (42
U.S.C. 1801 et seq.) and air quality regulations and state implementation plans
adopted pursuant to 40 CFR parts 50–99;
(iii) National Historic Preservation
Act of 1966 (16 U.S.C. 470 et seq.);
(iv) Archeological and Historic Preservation Act of 1974 (Pub. L. 93–291);
(v) Coastal Zone Management Act of
1972, as amended (16 U.S.C. 1451 et seq.);
(vi) Endangered Species Act of 1973,
Pub. L. 93–205, as amended (16 U.S.C.
1531 et seq.);
(vii) Executive Order 11988, May 24,
1977 requiring Federal agencies to

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§ 157.206

18 CFR Ch. I (4–1–14 Edition)

evaluate the potential effects of any
actions it may take on a floodplain;
(viii) Executive Order 11990, May 24,
1977 requiring an evaluation of the potential effects of construction on wetland;
(ix) Wild and Scenic Rivers Act (16
U.S.C. 1274 et seq.);
(x) National Wilderness Act (16 U.S.C.
1133 et seq.);
(xi) National Parks and Recreation
Act of 1978 (16 U.S.C. 1 and 230 et seq.).
(xii) Magnuson-Stevens Fishery Conservation and Management Act (16
U.S.C. 1801, et seq.)
(3) The certificate holder shall be
deemed in compliance with:
(i) Paragraph (b)(2)(vi) of this section
only if it adheres to the procedures in
appendix I of this subpart in which case
the Commission finds that endangered
species and their critical habitat are
protected in accordance with 16 U.S.C.
1536;
(ii) Paragraph (b)(2)(iii) of this section only if it adheres to the procedures in appendix II of this subpart in
which case the Commission finds that
there is no effect on any property protected by 16 U.S.C. 470f;
(iii) Paragraph (b)(2)(v) of this section only if the appropriate state agency designated to administer the state’s
coastal zone management plan, prior to
construction of the project, waives its
right of review or determines that the
project complies with the state’s coastal zone management plan.
(iv) Paragraphs (b)(2)(i) and (viii) of
this section only if it adheres to Commission staff’s current ‘‘Upland Erosion Control, Revegetation and Maintenance Plan’’ and ‘‘Wetland and
Waterbody Construction and Mitigation Procedures’’ which are available
on the Commission Internet home page
or from the Commission staff, or gets
written approval from the staff or the
appropriate Federal or state agency for
the use of project-specific alternatives
to clearly identified portions of those
documents.
(4) Any transaction authorized under
a blanket certificate shall not have a
significant adverse impact on a sensitive environmental area.
(5)(i) The noise attributable to any
new compressor station, compression
added to an existing station, or any

modification, upgrade or update of an
existing station, must not exceed a
day-night level (Ldn) of 55 dBA at any
pre-existing noise-sensitive area (such
as schools, hospitals, or residences).
(ii) A compressor facility installed
under this section must be designed to
meet the following noise emissions criteria. For each new compressor station
facility, and for each addition or modification to an existing compression station, the blanket certificate holder
must file a noise survey with the Secretary within 60 days of placing the facility in service.
(A) If noise emitted from a new compressor facility operating at full load
exceeds an Ldn of 55 dBA at any noisesensitive area (NSA), or if an addition
or modification to an existing compressor station operating at full load at
or below an Ldn of 55 dBA at NSAs
causes overall noise attributable to the
station to exceed an Ldn of 55 dBA at an
NSA, the blanket certificate holder
must come into compliance with an Ldn
of 55 dBA at NSAs within 1 year of
placing the facility in service.
(B) If an addition or modification to
an existing compressor station operating at full load above an Ldn of 55
dBA at NSAs causes overall noise attributable to the station to increase at
an NSA, the blanket certificate holder
must act within 1 year of placing the
added or modified facility in service to
reduce noise at NSAs to the level that
existed prior to the addition or modification.
(C) If the initial noise survey demonstrates a need to take action to mitigate noise, within 60 days of completing such action, the blanket certificate holder must file a subsequent
noise survey with the Secretary demonstrating that each new compressor
station facility, and each addition or
modification to an existing compressor
station, complies with the noise level
limits.
(iii) Any horizontal directional drilling or drilling of wells which will occur
between 10 p.m. and 7 a.m. local time
must be conducted with the goal of
keeping the perceived noise from the
drilling at any pre-existing noise-sensitive area (such as schools, hospitals,
or residences) at or below a night level
(Ln) of 55 dBA.

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Federal Energy Regulatory Commission
(6)(i) Any activity otherwise subject
to authorization under § 157.208 shall
not be authorized if the activity is located within 0.5 mile of a nuclear
power plant which is either operating
or under construction, or for which a
construction permit has been filed with
the Nuclear Regulatory Commission.
(ii) Any activity otherwise subject to
authorization under § 157.215 shall not
be authorized if the activity is located
within 2.0 miles of a nuclear power
plant which is either operating or
under construction, or for which a construction permit has been filed with
the Nuclear Regulatory Commission.
(7) The certificate holder shall act as
the Commission’s non-Federal representative upon acceptance of the
blanket certificate for purposes of complying with the Endangered Species
Act of 1973.
(c) Commencement. Any authorized
construction, extension, or acquisition
shall be completed and made available
for service by the certificate holder
and any authorized operation, or service, shall be available within one year
of the date the activity is authorized
pursuant to § 157.205(h). The certificate
holder may apply to the Director of the
Office of Energy Projects for an extension of this deadline. However, if the
request for extension is due to the enduser/shipper not being ready to accept
service, the certificate holder must so
notify the Commission in writing no
later than 10 days after expiration of
the one-year period.
(d) Reports. The certificate holder
shall file reports as required by this
subpart.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 234–A, 47 FR 38877, Sept. 3,
1982; Order 436, 50 FR 42490, Oct. 18, 1985;
Order 603, 64 FR 26607, May 14, 1999; Order
603–A, 64 FR 54536, Oct. 7, 1999; Order 609, 64
FR 57392, Oct. 25, 1999; Order 686, 71 FR 63693,
Oct. 31, 2006; Order 686–A, 72 FR 37436, July
10, 2007; Order 699, 72 FR 45325, Aug. 14, 2007;
72 FR 59942, Oct. 23, 2007]

§ 157.207 General reporting requirements.
On or before May 1, or each year, or
in the case of emergency reconstruction activity, prior to any activity, the
certificate holder must file, in the
manner prescribed in §§ 157.6(a) and
385.2011 of this chapter, an annual re-

§ 157.208
port signed under oath by a senior official of the company, that lists for the
previous calendar year:
(a) For each new facility authorized
by §§ 157.208, 157.210, 157.212, or 157.213,
the information specified in § 157.208(e);
(b) For each delivery point authorized under § 157.211(a)(1), the information required by § 157.211(c);
(c) for each temporary compressor facility under § 157.209, the information
required by § 157.209(b);
(d) For each storage project tested or
developed under § 157.215, the information specified in § 157.215(b)(1);
(e) For each abandonment authorized
under § 157.216(a), the information specified in § 157.216(d);
(f) For each change in rate schedule
authorized under § 157.217, the information specified in § 157.217(b);
(g) For each change in customer
name authorized under § 157.218, the information specified in § 157.218(b); and
(h) If any activity required to be reported under this section was not undertaken, a statement to that effect.
[Order 436, 50 FR 42490, Oct. 18, 1985, as
amended by Order 493, 53 FR 15030, Apr. 27,
1988; Order 603, 64 FR 26607, May 14, 1999;
Order 603, 66 FR 15347, Mar. 19, 2001; Order
633, 68 FR 31605, May 28, 2003; Order 686, 71 FR
63693, Oct. 31, 2006; Order 686–A, 72 FR 37436,
July 10, 2007]

§ 157.208 Construction, acquisition, operation, replacement, and miscellaneous rearrangement of facilities.
(a) Automatic authorization. If the
project cost does not exceed the cost
limitations set forth in column 1 of
Table I, under paragraph (d) of this section, or if the project is required to restore service in an emergency, the certificate holder is authorized to make
miscellaneous rearrangements of any
facility, or acquire, construct, replace,
or operate any eligible facility. The
certificate holder shall not segment
projects in order to meet the cost limitations set forth in column 1 of Table I.
(b) Prior notice. If the project cost is
greater than the amount specified in
column 1 of Table I, but less than the
amount specified in column 2 of Table
I, the certificate holder is authorized
to make miscellaneous rearrangements
of any facility, or acquire, construct,
replace, or operate any eligible facility. The certificate holder shall not

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§ 157.208

18 CFR Ch. I (4–1–14 Edition)

segment projects in order to meet the
cost limitations set forth in column 2
of Table I.
(c) Contents of request. In addition to
the requirements of § 157.205(b), requests filed for activities described
under paragraph (b) of this section
shall contain:
(1) A description of the purpose of the
proposed facilities including their relationship to other existing or planned
facilities;
(2) A detailed description of the proposed facilities specifying length, diameter, wall thickness and maximum
operating pressure for pipeline; and for
compressors, the size, type, and number of compressor units, horsepower required, horsepower existing and proposed, volume of fuel gas, suction and
discharge pressure and compression
ratio;
(3) A USGS 71⁄2 minute series (scale
1:24000) topographic map (or map of
equivalent or greater detail, as appropriate) showing the location of the proposed facilities, and indicating the location of any sensitive environmental
areas within one-quarter mile of
project-related construction activities;
(4) A map showing the relationship of
the proposed facilities to the applicant’s existing facilities;
(5) A flow diagram or comparative
study showing daily design capacity,
daily maximum capacity and operating
pressures with and without the proposed facilities for that portion of the
certificate holder’s system affected by
the proposal;
(6) The estimated cost and method of
financing the proposed facilities;
(7) A statement explaining how the
public convenience and necessity requires the approval of the project;
(8) For acquisitions of facilities:
(i) A statement referencing the date
of issuance, docket number and title of
the proceeding for any certificate
issued by the Commission authorizing
the facilities proposed to be acquired;
and
(ii) The amounts recorded in the accounts of the vendor (seller or lessor)
that apply to the facilities proposed to
be acquired and the accumulated provisions for depreciation, depletion, and
amortization;

(9) A concise analysis discussing the
relevant issues outlined in § 380.12 of
this chapter. The analysis must identify the existing environmental conditions and the expected significant impacts that the proposed action, including proposed mitigation measures, will
cause to the quality of the human environment, including impact expected to
occur to sensitive environmental areas.
When compressor facilities are proposed, the analysis must also describe
how the proposed action will be made
to comply with applicable State Implementation Plans developed under the
Clean Air Act. The analysis must also
include a description of the contacts
made, reports produced, and results of
consultations which took place to ensure compliance with the Endangered
Species Act, National Historic Preservation Act and the Coastal Zone Management Act. Include a copy of the
agreements received for compliance
with the Endangered Species Act, National Historic Preservation Act, and
Coastal Zone Management Act, or if no
written concurrence is issued, a description of how the agency relayed its
opinion to the company. Describe how
drilling for wells or horizontal direction drilling would be designed to meet
the goal of limiting the perceived noise
at NSAs to an Ldn of 55 dBA or what
mitigation would be offered to landowners.
(10) A commitment to having the Environmental Inspector’s report filed
every week.
(d) Limits and inflation adjustment.
The limits specified in Tables I and II
shall be adjusted each calendar year to
reflect the ‘‘GDP implicit price
deflator’’ published by the Department
of Commerce for the previous calendar
year. The Director of the Office of Energy Projects is authorized to compute
and publish limits for future calendar
years as a part of Tables I and II, pursuant to § 375.308(x)(1) of this chapter.
TABLE I
Limit
Year

1982 ...................................
1983 ...................................

Auto. proj.
cost
limit
(Col. 1)

Prior notice
proj. cost
limit
(Col. 2)

$4,200,000
4,500,000

$12,000,000
12,800,000

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Federal Energy Regulatory Commission
TABLE I—Continued
Limit
Auto. proj.
cost
limit
(Col. 1)

Year

1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................
...................................

4,700,000
4,900,000
5,100,000
5,200,000
5,400,000
5,600,000
5,800,000
6,000,000
6,200,000
6,400,000
6,600,000
6,700,000
6,900,000
7,000,000
7,100,000
7,200,000
7,300,000
7,400,000
7,500,000
7,600,000
7,800,000
8,000,000
9,600,000
9,900,000
10,200,000
10,400,000
10,500,000
10,600,000
10,800,000
11,000,000
11,200,000

Prior notice
proj. cost
limit
(Col. 2)
13,300,000
13,800,000
14,300,000
14,700,000
15,100,000
15,600,000
16,000,000
16,700,000
17,300,000
17,700,000
18,100,000
18,400,000
18,800,000
19,200,000
19,600,000
19,800,000
20,200,000
20,600,000
21,000,000
21,200,000
21,600,000
22,000,000
27,400,000
28,200,000
29,000,000
29,600,000
29,900,000
30,200,000
30,800,000
31,400,000
31,900,000

(e) Reporting requirements. For each
facility completed during the calendar
year pursuant to paragraph (a) of this
section and § 157.213(a), the certificate
holder shall file in the manner prescribed in §§ 157.6(a) and 385.2011 of this
chapter as part of the required annual
report under § 157.207(a) the information described in paragraphs (e)(1)–(5)
of this section. For each facility completed during the calendar year pursuant to paragraph (b) of this section,
and §§ 157.210, 157.212, and 157.213(b), the
certificate holder shall file in the manner prescribed above only the information described in paragraph (e)(3) of
this section.
(1) A description of the facilities installed pursuant to this section, including a description of the length and size
of pipelines, compressor horsepower,
metering facilities, taps, valves, and
any other facilities constructed;
(2) The specific purpose, location, and
beginning and completion date of construction of the facilities installed, the
date service commenced, and, if applicable, a statement indicating the ex-

§ 157.208
tent to which the facilities were jointly
constructed;
(3) The actual installed cost of each
facility item listed pursuant to paragraph (e)(1), separately stating the cost
of materials and labor as well as other
costs allocable to the facilities;
(4)(i) A description of the contacts
made, reports produced, and results of
consultations which took place to ensure compliance with the Endangered
Species Act, the National Historic
Preservation Act and the Coastal Zone
Management Act;
(ii) Documentation, including images, that restoration of work areas is
progressing appropriately;
(iii) A discussion of problems or unusual construction issues, including
those identified by affected landowners, and corrective actions taken or
planned; and
(iv) For new or modified compression, a noise survey verifying compliance with § 157.206(b)(5).
(5) For acquisitions of facilities:
(i) A statement referencing the date
of issuance, docket number and title of
the proceeding for any certificate
issued by the Commission authorizing
the facilities acquired; and
(ii) The amounts recorded in the accounts of the vendor (seller or lessor)
that apply to the facilities acquired
and the accumulated provisions for depreciation, depletion, and amortization.
(f) Special conditions. (1) For purposes
of comparing the project cost of leased
facilities with the per-project cost limitations in Table I of this section, the
project cost of leased facilities shall be
the annual lease charge multiplied by
the number of years of the lease.
(2) In the interest of safety and reliability of service, facilities authorized
by the certificate shall not be operated
at pressures exceeding the maximum
operating pressure set forth in the request. In the event that the certificate
holder thereafter wishes to change the
maximum operating pressure of supply
or delivery lateral facilities constructed under section 7(c) of the Natural Gas Act or facilities constructed
under this section, it shall file an appropriate request pursuant to the procedures set forth in § 157.205(b). Such
request shall include the reasons for

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§ 157.209

18 CFR Ch. I (4–1–14 Edition)

the proposed change. Nothing contained herein authorizes the certificate
holder to operate any facility at a pressure above the maximum prescribed by
State law, if such law requires a lower
pressure than authorized hereby.
(g) If the actual cost of the project
exceeds the per-project cost authorized
under a blanket certificate in Table I
of this section, the certificate holder
shall apply to the Director of the Office
of Energy Projects for a waiver of
those project cost limits.
[Order 234, 47 FR 24266, June 4, 1982]
EDITORIAL NOTE: For FEDERAL REGISTER citations affecting § 157.208, see the List of CFR
Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

§ 157.209 Temporary compression facilities.
(a) Automatic authorization. If the cost
does not exceed the cost limitations set
forth in column 1 of Table I, under
§ 157.208(d) of this chapter, the certificate holder may install, operate and remove temporary facilities provided
that the temporary compressor facilities shall not be used to increase the
volume or service above that rendered
by the involved existing permanent
compressor unit(s).
(b) Reporting requirements. As part of
the certificate holder’s annual report
of projects authorized under paragraph
(a) of this section, the certificate holder must report the following in the
manner prescribed in §§ 157.6(a) and
385.2011 of this chapter;
(1) A description of the temporary
compression facility, including the
size, type and number of compressor
units;
(2) The location at which temporary
compression was installed, operated
and removed, including its location relative to existing facilities;
(3) A description of the permanent
compression facility which was unavailable, and a statement explaining
the reason for the temporary compression;
(4) The dates for which the temporary compression was installed, operated and removed; and

(5) If applicable, the information required in § 157.208(e)(4).
[Order 603, 64 FR 26608, May 14, 1999, as
amended by Order 699, 72 FR 45325, Aug. 14,
2007]

§ 157.210
ties.

Mainline natural gas facili-

Subject to the notice requirements of
§§ 157.205(b) and 157.208(c), the certificate holder is authorized to acquire,
construct, modify, replace, and operate
natural gas mainline facilities, including compression and looping, that are
not
eligible
facilities
under
§ 157.202(b)(2)(i). The cost of a project
may not exceed the cost limitation
provided in column 2 of Table I of
§ 157.208(d). The certificate holder must
not segment projects in order to meet
this cost limitation.
[Order 686, 71 FR 63693, Oct. 31, 2006]

§ 157.211

Delivery points.

(a) Construction and operation—(1)
Automatic authorization. The certificate
holder may acquire, construct, replace,
modify, or operate any delivery point,
excluding the construction of certain
delivery points subject to the prior notice provisions in paragraph (a)(2) of
this section if:
(i) The natural gas is being delivered
to, or for the account of, a shipper for
whom the certificate holder is, or will
be, authorized to transport gas; and
(ii) The certificate holder’s tariff
does not prohibit the addition of new
delivery points.
(2) Prior notice. Subject to the notice
procedure in § 157.205, the certificate
holder may acquire, construct, replace,
modify, or operate any delivery point
if:
(i) The natural gas is being delivered
to, or for the account of, an end-user
that is currently being served by a
local distribution company; and
(ii) The natural gas is being delivered
to a shipper for whom the certificate
holder is, or will be, authorized to
transport gas; and
(iii) The certificate holder’s tariff
does not prohibit the addition of new
delivery points.

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Federal Energy Regulatory Commission
(b) Contents of request. In addition to
the requirements of § 157.205(b), requests for activities authorized under
paragraph (a)(2) must contain:
(1) The name of the end-user, the location of the delivery point, and the
distribution company currently serving
the end-user;
(2) A description of the facility and
any appurtenant facilities;
(3) A USGS 71⁄2-minute series (scale
1:24,000 or 1:25,000) topographic map (or
map of equivalent or greater detail, as
appropriate) showing the location of
the proposed facilities;
(4) The quantity of gas to be delivered through the proposed facility;
(5) A description, with supporting
data, of the impact of the service rendered through the proposed delivery
tap upon the certificate holder’s peak
day and annual deliveries.
(c) Reporting requirements. As part of
the certificate holder’s annual report
of projects authorized under paragraph
(a) of this section, the certificate holder must report in the manner prescribed in §§ 157.6(a) and 385.2011 of this
chapter:
(1) A description of the facilities acquired, constructed, replaced, modified
or operated pursuant to this section;
(2) The location and maximum quantities delivered at such delivery point;
(3) The actual cost and the completion date of the delivery point; and
(4) The date of each agreement obtained pursuant to § 157.206(b)(3) and
the date construction began.
[Order 436, 50 FR 42491, Oct. 18, 1985, as
amended by Order 493, 53 FR 15030, Apr. 27,
1988; Order 603, 64 FR 26608, May 14, 1999;
Order 603–B, 65 FR 11464, Mar. 3, 2000]

§ 157.212 Synthetic and liquefied natural gas facilities.
Subject to the notice requirements of
§§ 157.205(b) and 157.208(c), the certificate holder is authorized to acquire,
construct, modify, replace, and operate
natural gas facilities that are used to
transport either a mix of synthetic and
natural gas or exclusively revaporized
liquefied natural gas and that are not
‘‘related jurisdictional natural gas facilities’’ as defined in § 153.2(e) of this
chapter. The cost of a project may not
exceed the cost limitation provided in
column 2 of Table I in § 157.208(d). The

§ 157.213
certificate holder must not segment
projects in order to meet this cost limitation.
[Order 686, 71 FR 63693, Oct. 31, 2006]

§ 157.213 Underground storage field facilities.
(a) Automatic authorization. If the
project cost does not exceed the cost
limitations provided in column 1 of
Table I in § 157.208(d), the certificate
holder may acquire, construct, modify,
replace, and operate facilities for the
remediation and maintenance of an existing underground storage facility,
provided the storage facility’s certificated physical parameters—including
total inventory, reservoir pressure, reservoir and buffer boundaries, and certificated capacity remain unchanged—
and provided compliance with environmental and safety provisions is not affected. The certificate holder must not
alter the function of any well that is
drilled into or is active in the management of the storage facility. The certificate holder must not segment
projects in order to meet this cost limitation.
(b) Prior Notice. Subject to the notice
requirements
of
§§ 157.205(b)
and
157.208(c), the certificate holder is authorized to acquire, construct, modify,
replace, and operate natural gas underground storage facilities, provided the
storage facility’s certificated physical
parameters—including total inventory,
reservoir pressure, reservoir and buffer
boundaries, and certificated capacity
remain unchanged—and provided compliance with environmental and safety
provisions is not affected. The cost of a
project may not exceed the cost limitation provided in column 2 of Table I in
§ 157.208(d). the certificate holder must
not segment projects in order to meet
this cost limitation.
(c) Contents of request. In addition to
the requirements of §§ 157.206(b) and
157.208(c), requests for activities authorized under paragraph (b) of this
section must contain, to the extent
necessary to demonstrate that the proposed project will not alter a storage
reservoir’s total inventory, reservoir
pressure, reservoir or buffer boundaries, or certificated capacity:
(1) A description of the current geological interpretation of the storage

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§ 157.214

18 CFR Ch. I (4–1–14 Edition)

reservoir, including both the storage
formation and the caprock, including
summary analysis of any recent crosssections, well logs, quantitative porosity and permeability data, and any
other relevant data for both the storage reservoir and caprock;
(2) The latest isopach and structural
maps of the storage field, showing the
storage reservoir boundary, as defined
by fluid contacts or natural geological
barriers; the protective buffer boundary; the surface and bottomhole locations of the existing and proposed injection/withdrawal wells and observation wells; and the lengths of open-hole
sections of existing and proposed injection/withdrawal wells;
(3) Isobaric maps (data from the end
of each injection and withdrawal cycle)
for the last three injection/withdrawal
seasons, which include all wells, both
inside and outside the storage reservoir
and within the buffer area;
(4) A detailed description of present
storage operations and how they may
change as a result of the new facilities
or modifications. Include a detailed
discussion of all existing operational
problems for the storage field, including but not limited to gas migration
and gas loss;
(5) Current and proposed working gas
volume, cushion gas volume, native gas
volume, deliverability (at maximum
and minimum pressure), maximum and
minimum storage pressures, at the
present certificated maximum capacity
or pressure, with volumes and rates in
MMcf and pressures in psia;
(6) The latest field injection/withdrawal capability studies including
curves at present and proposed working
gas capacity, including average field
back pressure curves and all other related data;
(7) The latest inventory verification
study for the storage field, including
methodology, data, and work papers;
(8) The shut-in reservoir pressures
(average) and cumulative gas-in-place
(including native gas) at the beginning
of each injection and withdrawal season for the last 10 years; and
(9) A detailed analysis, including
data and work papers, to support the
need for additional facilities (wells,
gathering lines, headers, compression,
dehydration, or other appurtenant fa-

cilities) for the modification of working gas/cushion gas ratio and/or to improve the capability of the storage
field.
[Order 686, 71 FR 63693, Oct. 31, 2006, as
amended by Order 686–A, 72 FR 37436, July 10,
2007]

§ 157.214 Increase in storage capacity.
(a) Prior notice. Subject to the notice
requirements of § 157.205, the certificate
holder is authorized to increase the
maximum volume of natural gas authorized to be stored in a storage field
to the extent that geological data and
operating
experience
have
demonstrated that a volume of natural gas
greater than that currently certificated may be safely stored without the
construction of additional facilities.
(b) Contents of request. In addition to
the requirements of § 157.205(b), requests filed for activities described in
paragraph (a) shall contain:
(1) Current and requested maximum
storage capacity;
(2) Current and requested maximum
storage pressure;
(3) Average depth of the storage formation;
(4) Copies of any geological or engineering studies that demonstrate the
feasibility of the increase in storage
volume; and
(5) A statement setting forth the purpose of the proposed increased capacity.
(c) Reporting requirements. For any
storage facility whose capacity is increased pursuant to this section, the
certificate holder shall submit, in the
manner prescribed in § 385.2011 of this
chapter, semi-annual reports (to coincide with the termination of the injection and withdrawal cycles) containing
the information listed in subdivisions
(1) through (8) of this paragraph. The
certificate holder shall continue to file
semi-annual reports until the storage
inventory volume has reached, or
closely approximates, the maximum
specified in the request. Thereafter, the
reports shall continue on a semi-annual basis for a period of one year. The
filing of reports shall be discontinued
thereafter unless otherwise ordered by
the Commission. (Volumes shall be
stated at 14.73 psia and 60 °F, and pressures shall be stated in psia.)

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Federal Energy Regulatory Commission
(1) The daily volume of natural gas
injected into and withdrawn from the
storage reservoir.
(2) The volume of natural gas in the
reservoir at the end of the reporting
period.
(3) The maximum daily injection or
withdrawal rate experienced during the
reporting period and the average working pressure on such maximum days
taken at a central measuring point
where the total volume injected or
withdrawn is measured.
(4) Results of any tracer program by
which the leakage of injected gas may
be determined. If the leakage of gas exists, the report should show the estimated total volume of gas leakage, the
volume of recycled gas and the remaining inventory of gas in the reservoir at
the end of the reporting period.
(5) Any surveys of pressures in gas
wells, water levels in observation wells,
pump test results for the aquifer-type
reservoirs, and the results of back-pressure tests conducted during the reporting period.
(6) The latest revised structure and
isopachous contour maps showing the
location of the wells, the location and
extent of the gas bubble in the storage
reservoir for aquifer-type reservoirs
and in any other reservoirs of the
project in which gas bubbles are known
to exist. This map need not be filed if
there is no material change from the
map previously filed.
(7) Discussion of current operating
problems and conclusions.
(8) Such other data or reports which
may aid the Commission in the evaluation of the storage project.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 493, 53 FR 15030, Apr. 27,
1988]

§ 157.215 Underground storage testing
and development.
(a) Automatic authorization. The certificate holder is authorized to acquire,
construct and operate natural gas pipeline and compression facilities, including injection, withdrawal, and observation wells for the testing or development of underground reservoirs for the
possible storage of gas, if:
(1) The testing and development of a
particular storage project will be completed within a three-year-period;

§ 157.215
(2) The quantity of natural gas injected into the prospective storage
fields pursuant to the blanket certificate does not exceed a total of
10,000,000 Mcf at any time in all fields
with no more than 2,000,000 Mcf injected into any single field;
(3) Gas will be injected for testing
purposes only during off-peak periods;
(4) The storage field developed pursuant to this section will not be utilized
to render service without further authorization from the Commission, except that gas may be withdrawn on occasion for testing purposes; and
(5) The total expenditures per calendar year pursuant to this section do
not exceed the amount specified in
Table II as adjusted pursuant to
§ 157.208(d). These costs shall include
expenditures for leases, wells, pipeline,
compressors, and related facilities, but
shall exclude the cost of the natural
gas to be used for testing purposes.
TABLE II
Year
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Limit

...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................
...............................................................

$2,700,000
2,900,000
3,000,000
3,100,000
3,200,000
3,300,000
3,400,000
3,500,000
3,600,000
3,800,000
3,900,000
4,000,000
4,100,000
4,200,000
4,300,000
4,400,000
4,500,000
4,550,000
4,650,000
4,750,000
4,850,000
4,900,000
5,000,000
5,100,000
5,250,000
5,400,000
5,550,000
5,600,000
5,700,000
5,750,000
5,850,000
6,000,000
6,100,000

(b) Reporting requirements—(1) Annual
reports. For any storage project tested
or developed pursuant to this section,
the certificate holder shall file, in the
manner prescribed in §§ 157.6(a) and

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§ 157.216

18 CFR Ch. I (4–1–14 Edition)

385.2011 of this chapter as part of the
annual
report
required
under
§ 157.207(a), the following information:
(i) A description of the facilities constructed and the type of storage reservoir, i.e., gas expansion or dry gas,
water-drive or aquifer;
(ii) The location of the facilities;
(iii) The cost of such facilities, the
date construction began, and the date
they were placed in service;
(iv) The monthly volumes of gas injected into and withdrawn from each
reservoir;
(v) An estimate of the storage capacity and daily deliverability of each
project; and
(vi) A description of the contacts
made, reports produced, and results of
consultations which took place to ensure compliance with the Endangered
Species Act, the National Historic
Preservation Act and the Coastal Zone
Management Act.
(2) Quarterly reports. If the reservoir
to be tested and developed is an aquifer-type reservoir, the certificate holder shall file, in the manner prescribed
in §§ 157.6(a) and 385.2011 of this chapter
unless otherwise ordered by the commission, for each such project quarterly reports, under oath, until the
project is either certificated for regular service or abandoned. The quarterly report shall contain the following
information in addition to the data required by paragraph (b)(1) of this section:
(i) The daily volumes of natural gas
injected into and withdrawn from the
aquifer during the quarter and the volume of gas in the aquifer at the end of
each month;
(ii) The maximum daily injection or
withdrawal rate experienced during the
quarter and the average working pressure on such maximum days taken at a
central measuring point where the
total volume injected or withdrawn is
measured;
(iii) Results of any tracer program by
which leakage of gas may be determined;
(iv) Any pressure surveys of gas wells
and water levels in observation wells
conducted during the quarter by individual well, and copies of any core
analyses, gamma ray, neutron or other

electric log surveys and back-pressure
tests taken during the quarter;
(v) A map of the storage project
showing the location of the wells, the
latest revised structure contours, and
the location and extent of the gas bubble. This map need not be filed if there
is no material change from the map
previously filed; and
(vi) Such other data or reports which
may aid the Commission in the evaluation of the project.
(c) Accounting. The cost of any
project ultimately determined to be infeasible for storage shall be charged to
Account No. 822 of part 201, Underground Storage Exploration and Development Expenses.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 493, 53 FR 15030, Apr. 27,
1988; Order 603, 64 FR 26609, May 14, 1999; 72
FR 5614, Feb. 7, 2007; 73 FR 8191, Feb. 13, 2008;
74 FR 6539, Feb. 10, 2009; 75 FR 8246, Feb. 24,
2010; 76 FR 8294, Feb. 14, 2011; 77 FR 8725, Feb.
15, 2012; 78 FR 8390, Feb. 6, 2013; 79 FR 6808,
Feb. 5, 2014]

§ 157.216 Abandonment.
(a) Automatic authorization. The certificate holder is authorized pursuant
to section 7(b) of the Natural Gas Act
to abandon gas supply facilities, and:
(1) A receipt or delivery point, or related supply or delivery lateral, provided the facility has not been used to
provide:
(i) Interruptible transportation service during the one year period prior to
the effective date of the proposed abandonment, or
(ii) Firm transportation service during the one year period prior to the effective date of the proposed abandonment, provided the point is no longer
covered under a firm contract; or
(2) A facility that did or could now
qualify for automatic authorization as
described in § 157.203(b), provided the
certificate holder obtains the written
consent of each customer served using
the facility during the past 12 months.
(b) Prior notice. Subject to the notice
requirements of § 157.205, the certificate
holder is authorized pursuant to section 7(b) of the Natural Gas Act to
abandon:
(1) Any receipt or delivery point if all
of the existing customers of the pipeline served through the receipt or delivery point consent in writing to the

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Federal Energy Regulatory Commission
abandonment. When filing a request for
authorization of the proposed abandonment under the notice procedures of
§ 157.205, the certificate holder shall notify, in writing, the State public service commission having regulatory authority over retail service to the customers served through the delivery
point.
(2) Any other facility that did or
could now qualify for prior notice authorization as described in § 157.203(c),
provided the certificate holder obtains
the written consent of each customer
served using the facility during the
past 12 months.
(c) Contents of request. In addition to
the requirements of § 157.205(b), requests filed for activities described
under paragraph (b) shall describe:
(1) The location, type, size, and
length of the subject facilities. For facilities not constructed or acquired
under blanket certificate authority, an
estimate of the current cost to replicate such facilities;
(2) The docket authorizing the construction and operation of the facilities
to be abandoned;
(3) For each facility an oath statement that all of the customers served
during the past year by the subject facilities have consented to the abandonment, or an explanation of why the
customers’ consent is not available;
(4) A proposed accounting treatment
of any facilities to be abandoned.
(5) For any abandonment resulting in
earth disturbance, a USGS 71⁄2-minuteseries (scale 1:24,000 or 1:25,000) topographic map (or map of equivalent or
greater detail, as appropriate) showing
the location of the proposed facilities
and a concise analysis discussing the
relevant issues outlined in § 380.12 of
this chapter.
(d) Reporting requirements. The annual
report filed by the certificate holder
shall contain, for each abandonment
authorized under paragraph (a) of this
section:
(1) A description of the facilities
abandoned under this section. For facilities not constructed or acquired
under blanket certificate authority, an
estimate of the current cost to replicate such facilities;
(2) The docket number(s) of the certificate(s) authorizing the construction

§ 157.217
and operation of the facilities to be
abandoned;
(3) The accounting treatment of the
facilities abandoned; and
(4) The date earth disturbance, if
any, related to the abandonment began
and the date the facilities were abandoned; and
(5) The date of the agreements obtained pursuant to § 157.206(b)(3), if
earth disturbance was involved.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 234–A, 47 FR 38877, Sept. 3,
1982; Order 603, 64 FR 26609, May 14, 1999;
Order 603–A, 64 FR 54536, Oct. 7, 1999; Order
686, 71 FR 63694, Oct. 31, 2006; 72 FR 54820,
Sept. 27, 2007]

§ 157.217

Changes in rate schedules.

(a) Automatic authorization. The certificate holder is authorized to permit
an existing customer, at the customer’s request, to change from part
157 individually certificated transportation or storage service to part 284
transportation or storage service, and
to abandon the part 157 service, if:
(1) The combined volumetric limitations on deliveries to the customer
under both rate schedules are not increased, for either annual or peak day
limitations;
(2) The conversion will reflect all the
maximum rates and charges associated
with the service;
(3) The changes are consistent with
the terms of the effective tariffs on file
with the Commission. The certificate
holder is granted a limited waiver of
its tariff requiring posting of available
capacity.
(4) The certificate holder shall make
a filing to reflect removal of the part
157 rate schedule from its tariff. This
tariff filing must be filed in the electronic format required by § 154.4 of this
chapter.
(b) Reporting requirements. In the annual report for any year in which the
certificate holder has permitted an existing customer to change from one
rate schedule to another pursuant to
this section, the certificate holder
shall state:
(1) The name of the customer;
(2) The rate schedules and associated
rates involved; and

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§ 157.218

18 CFR Ch. I (4–1–14 Edition)

(3) The effective date of the change.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 603, 64 FR 26609, May 14,
1999; Order 603–A, 64 FR 54537, Oct. 7, 1999;
Order 714, 73 FR 57535, Oct. 3, 2008]

§ 157.218 Changes in customer name.
(a) Automatic authorization. The effective certificates of the certificate holder may be amended to the extent necessary to reflect the change in the
name of an existing customer, if the
certificate holder has filed any necessary conforming changes in its Index
of Customers, including the customer’s
old name.
(b) Reporting requirements. For each
customer name change authorized during a calendar year, the certificate
holder shall include as a part of its annual report:
(1) The old and new names of the customer; and
(2) A brief explanation of the reason
for the name change.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 603, 64 FR 26609, May 14,
1999]

APPENDIX I TO SUBPART F OF PART 157—
PROCEDURES FOR COMPLIANCE WITH
THE ENDANGERED SPECIES ACT OF
1973 UNDER § 157.206(b)(3)(i)
The following procedures apply to any certificate holder which undertakes a project to
be authorized under a blanket certificate
issued pursuant to subparts E or F of part 157
and to any other service subject to
§ 157.206(b) of the Federal Energy Regulatory
Commission’s (Commission) regulations.
Pursuant to § 157.206(b)(7) of the Commission’s regulations, the certificate holder
shall, upon acceptance of its blanket certificate, be designated as the Commission’s nonFederal representative to the U.S. Fish and
Wildlife Service (FWS) and the National Marine Fisheries Service (NMFS) in order to
conduct informal consultations with those
agencies. For purposes of this appendix,
‘‘listed species’’ and ‘‘critical habitat’’ shall
have the same meanings as set forth in 50
CFR 402.02. The certificate holder shall be
deemed in compliance with § 157.206(b)(2)(vi)
of the Commission’s regulations only if,
prior to constructing facilities or abandoning facilities by removal under the blanket certificate, it complies with the following procedures:
1. The certificate holder shall contact the
appropriate regional office of either the FWS
or the NMFS (or both the FWS and the
NMFS, if appropriate) as determined pursu-

ant to 50 CFR 402.01 for the purpose of initiating informal consultations.
2. The certificate holder shall be deemed in
compliance with § 157.206(b)(2)(vi) of the Commission’s regulations if the consulted agency
(either the FWS or NMFS, or both if appropriate) initially determines, pursuant to the
informal consultations:
(a) That no listed species or its critical
habitat occur in the project area; and
(b) That no species proposed to be listed
under 16 U.S.C. 1533 or its critical habitat
occur in the project area.
3. If the consulted agency, pursuant to the
informal consultations, initially determines
that any species proposed to be listed under
16 U.S.C. 1533 or its critical habitat occur in
the project area, then the certificate holder
shall confer with the consulted agency on
how potential impact can be avoided or reduced. Upon completion of the conference
and the implementation of any mitigating
measures the certificate holder elects to implement, and compliance with paragraph 4 of
this Appendix, if applicable, the certificate
holder shall be deemed in compliance with
§ 157.206(b)(2)(vi) of the Commission’s regulations.
4. (a) If the consulted agency initially determines, pursuant to the informal consultations, that a listed species or its critical
habitat may occur in the project area, then
the certificate holder shall continue informal consultation with the consulted agency
to determine if the proposed project may affect such species or habitat. Continued informal consultations may include discussions
with experts (including experts provided by
the consulted agency), field surveys, biological assessments, and formulation of mitigation measures.
(b) The certificate holder shall be deemed
in compliance with § 157.206(b)(2)(vi) of the
Commission’s regulations if the consulted
agency agrees with the certificate holder’s
determination resulting from the continued
informal consultations, that the proposed
project is not likely to adversely affect a
listed species or critical habitat, or that no
further consultation is necessary.
(c) If the consulted agency does not agree
with such determination by the certificate
holder, or if the certificate holder concludes
that the proposed project may affect listed
species or the critical habitat of such species, then the certificate holder may not proceed with the proposed project under the
blanket certificate.
[Order 234, 47 FR 24266, June 4, 1982, as
amended by Order 436, 50 FR 42491, Oct. 18,
1985; Order 603, 64 FR 26609, May 14, 1999;
Order 603–A, 64 FR 54537, Oct. 7, 1999]

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Federal Energy Regulatory Commission
APPENDIX II TO SUBPART F OF PART
157—PROCEDURES FOR COMPLIANCE
WITH THE NATIONAL HISTORIC PRESERVATION
ACT OF 1966 UNDER
§ 157.206(b)(3)(ii)
The following procedures apply to any certificate holder which undertakes a project
under the authority of a blanket certificate
issued pursuant to subparts E or F of part 157
and to any other service subject to
§ 157.206(b) of the Federal Energy Regulatory
Commission’s (Commission) regulations. For
the purposes of this appendix, the following
definitions apply:
(a) ‘‘Listed property’’ means any district,
site, building, structure or object which is
listed (1) on the National Register of Historic
Places, or (2) in the FEDERAL REGISTER as a
property determined to be eligible for inclusion on the National Register.
(b) ‘‘SHPO’’ means the State Historic Preservation Officer or any alternative person
duly designated, in accordance with section
(1)(b) of Appendix II to Subpart F, to advise
on cultural resource matters.
(c) ‘‘Unlisted property’’ means any district,
site, building, structure or object which is
not a listed property.
(d) ‘‘THPO’’ means the Tribal Historic
Preservation Officer, as defined at 36 CFR
800.2(c)(2).
The certificate holder shall be deemed to
be in compliance with § 157.206(b)(2)(iii) of the
Commission’s regulations only if, prior to
constructing facilities or abandoning facilities by removal under the blanket certificate, it complies with the following procedures:
(1)(a) If federally administered land would
be directly affected by the project, then the
procedures used by the appropriate Tribal or
Federal land managing agency to comply
with section 106 of the National Historic
Preservation Act of 1966, 16 U.S.C. 470f, shall
take precedence over these procedures. The
procedures in this appendix apply to State
and private lands, and Federal lands for
which there are no other Federal procedures.
(b) If there is no SHPO, or THPO, if appropriate, or if the SHPO, or THPO, as appropriate, declines to consult with the certificate holder, the certificate holder shall so
inform the environmental staff of the Office
of Energy Projects and shall not proceed
with these procedures or the project until an
alternate consultant has been duly designated.
(2) It shall be the certificate holder’s responsibility to identify or cause to be identified listed properties and unlisted properties
that satisfy the National Register Criteria
for Evaluation (36 CFR 1202.6), that are located within the area of the project’s potential environmental impact and that may be
affected by the undertaking.

Pt. 157, Subpt. F, App. II
(3) The certificate holder shall:
(a) Check the National Register of Historic
Places and consult with the SHPO, or THPO,
as appropriate, to identify all listed properties within the area of the project’s potential environmental impact;
(b) Consult with the SHPO, or THPO, as
appropriate, and to the extent deemed appropriate by the SHPO, or THPO, as appropriate, check public records and consult with
other individuals and organizations with historical and cultural expertise, to determine
whether unlisted properties that satisfy the
National Register Criteria for Evaluation are
known or likely to occur within the area of
the project’s potential environmental impact; and
(c) Consult with the SHPO, or THPO, as appropriate, to determine the need for surveys
to identify unknown unlisted properties. The
certificate holder shall evaluate the eligibility of any known unlisted properties located within the area of the project’s potential environmental impact according to the
National Register Criteria for Evaluation.
(4) The certificate holder shall be deemed
in compliance with § 157.206(b)(2)(iii) of the
Commission’s regulations if the SHPO, or
THPO, as appropriate, agrees with the certificate holder that no survey is required,
and that no listed properties or unlisted
properties that satisfy the National Register
Criteria for Evaluation occur in the area of
the project’s potential environmental impact.
(5) If the SHPO, or THPO, as appropriate,
determines that surveys are required to ensure that no listed properties, or unlisted
properties that satisfy the National Register
Criteria for Evaluation, occur within the
area of the project’s potential environmental
impact, the certificate holder shall perform
surveys deemed by the SHPO, or THPO, as
appropriate, to be of sufficient scope and intensity to identify and evaluate such properties. The certificate holder shall submit
the results of the surveys including a statement as to which unlisted properties satisfy
the National Register Criteria for Evaluation, to the SHPO and solicit comments on
the surveys and the conclusions.
(6) The certificate holder shall be deemed
in compliance with § 157.206(b)(2)(iii) of the
Commission’s regulations if, upon conclusion
of the surveys, the certificate holder and the
SHPO, or THPO, as appropriate, agree that
no listed properties, and no unlisted properties which satisfy the National Register
Criteria for Evaluation, occur in the area of
the project’s potential environmental impact.
(7) For each listed property, and each unlisted property which satisfies the National
Register Criteria for Evaluation, which is located within the area of the project’s potential environmental impact, the certificate
holder, in consultation with the SHPO, or

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Pt. 158

18 CFR Ch. I (4–1–14 Edition)

THPO, as appropriate, shall apply the Criteria of Effect (36 CFR 800.5) to determine
whether the project will have an effect upon
the historical, architectural, archeological,
or cultural characteristics of the property
that qualified it to meet National Register
Criteria for Evaluation. The certificate holder shall be deemed in compliance with
§ 157.206(b)(2)(iii) of the Commission’s regulations if the certificate holder and the SHPO,
or THPO, as appropriate, agree that the
project will not affect these characteristics.
(8) If either the certificate holder or the
SHPO, or THPO, as appropriate, finds that
the project may affect a listed property or an
unlisted property which satisfies the National Register Criteria for Evaluation, located within the area of the project’s potential environmental impact, then the project
shall not be authorized under the blanket
certificate unless such properties can be
avoided by relocation of the project to an
area where the SHPO, or THPO, as appropriate, agrees that no listed properties or unlisted properties that satisfy the National
Register Criteria for Evaluation occur. The
certificate holder shall be deemed in compliance with § 157.206(b)(2)(iii) of the Commission’s regulations if the project is relocated
as described above.
(9) If the certificate holder and the SHPO,
or THPO, as appropriate, are unable to agree
upon the need for a survey, the adequacy of
a survey, or the results of application of the
National Register Criteria for Evaluation to
an unlisted property, the project shall not be
authorized under the blanket certificate.
[Order 603, 64 FR 26610, May 14, 1999, as
amended by Order 603–A, 64 FR 54537, Oct. 7,
1999; Order 699, 72 FR 45325, Aug. 14, 2007]

Subpart G—Natural Gas Producer
Blanket Authorization for Sales
and
Abandonment
[Reserved]
PART 158—ACCOUNTS, RECORDS,
MEMORANDA AND DISPOSITION
OF CONTESTED AUDIT FINDINGS
AND PROPOSED REMEDIES
DISPOSITION OF CONTESTED AUDIT FINDINGS
AND PROPOSED REMEDIES
Sec.
158.1 Notice to audited person.
158.2 Response to notification.
158.3 Shortened procedure.
158.4 Form and style.
158.5 Verification.
158.6 Determination.
158.7 Assignment for oral hearing.
158.8 Burden of proof.

CERTIFICATION OF COMPLIANCE WITH
ACCOUNTING REGULATIONS
158.10
158.11
158.12

Examination of accounts.
Report of certification.
Qualifications of accountants.

AUTHORITY: 15 U.S.C. 717–717w, 3301–3432; 42
U.S.C. 7102–7352.
SOURCE: Order 141, 12 FR 8603, Dec. 19, 1947,
unless otherwise noted.

DISPOSITION OF CONTESTED AUDIT
FINDINGS AND PROPOSED REMEDIES
§ 158.1 Notice to audited person.
An audit conducted by the Commission’s staff under authority of the Natural Gas Act may result in a notice of
deficiency or audit report or similar
document containing a finding or findings that the audited person has not
complied with a requirement of the
Commission with respect to, but not
limited to, the following: A filed tariff
or tariffs, contracts, data, records, accounts, books, communications or papers relevant to the audit of the audited person; matters under the Standards of Conduct or the Code of Conduct;
and the activities or operations of the
audited person. The notice of deficiency, audit report or similar document may also contain one or more
proposed remedies that address findings of noncompliance. Where such
findings, with or without proposed
remedies, appear in a notice of deficiency, audit report or similar document, such document shall be provided
to the audited person, and the finding
or findings, and any proposed remedies,
shall be noted and explained. The audited person shall timely indicate in a
written response any and all findings
or proposed remedies, or both, in any
combination, with which the audited
person disagrees. The audited person
shall have 15 days from the date it is
sent the notice of deficiency, audit report or similar document to provide a
written response to the audit staff indicating any and all findings or proposed
remedies, or both, in any combination,
with which the audited person disagrees, and such further time as the
audit staff may provide in writing to
the audited person at the time the document is sent to the audited person.
The audited person may move the Commission for additional time to provide

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