Regulation

Pt. 284

18 CFR Ch. I (4–1–14 Edition)

4 Mathematically the price difference ratio is P —P /P ; Where P =the price of fuel oil or coal and P =the price of natural gas.
2
1 1
2
1
The ratio indicates the percent difference between natural gas and alternate fuel prices. For example in January 1980 electric
utilities reported that in that month they paid 1.897 times more (189.7 percent) for No. 2 fuel oil than they paid for natural gas.
As determined in Docket No. RM79–40 NOPR issued June 3, 1980, corrected for clerical/typographical error.

[Order 55–B, 45 FR 54740, Aug. 18, 1980]

PART 284—CERTAIN SALES AND
TRANSPORTATION OF NATURAL
GAS UNDER THE NATURAL GAS
POLICY ACT OF 1978 AND RELATED AUTHORITIES
Subpart A—General Provisions and
Conditions
Sec.
284.1 Definitions.
284.2 Refunds and interest.
284.3 Jurisdiction under the Natural Gas
Act.
284.4 Reporting.
284.5 Further terms and conditions.
284.6 Rate interpretations.
284.7 Firm transportation service.
284.8 Release of firm capacity on interstate
pipelines.
284.9 Interruptible transportation service.
284.10 Rates.
284.11 Environmental compliance.
284.12 Standards for pipeline business operations and communications.
284.13 Reporting requirements for interstate
pipelines.
284.14 Posting requirements of major noninterstate pipelines.
284.15 Bidding by affiliates in open seasons
for pipeline capacity.

Subpart B—Certain Transportation by
Interstate Pipelines
284.101 Applicability.
284.102 Transportation by interstate pipelines.
284.103–284.106 [Reserved]

Subpart C—Certain Transportation by
Intrastate Pipelines
284.121 Applicability.
284.122 Transportation by intrastate pipelines.
284.123 Rates and charges.
284.124 Terms and conditions.
284.125 [Reserved]
284.126 Reporting requirements.

Subpart D—Certain Sales by Intrastate
Pipelines
284.141 Applicability.
284.142 Sales by intrastate pipelines.
284.143–284.148 [Reserved]

Subparts E–F [Reserved]
Subpart G—Blanket Certificates Authorizing Certain Transportation by Interstate Pipelines on Behalf of Others and
Services by Local Distribution Companies
284.221 General rule; transportation by
interstate pipelines on behalf of others.
284.222 [Reserved]
284.223 Transportation by interstate pipelines on behalf of shippers.
284.224 Certain transportation and sales by
local distribution companies.
284.225–284.226 [Reserved]
284.227 Certain transportation by intrastate
pipelines.

Subpart H [Reserved]
Subpart I—Emergency Natural Gas Sale,
Transportation, and Exchange Transactions
284.261 Purpose.
284.262 Definitions.
284.263 Exemption from section 7 of Natural
Gas Act and certain regulatory conditions.
284.264 Terms and conditions.
284.265 Cost recovery by interstate pipeline.
284.266 Rates and charges for interstate
pipelines.
284.267 Intrastate pipeline emergency transportation rates.
284.268 Local distribution company emergency transportation rates.
284.269 Intrastate pipeline and local distribution company emergency sales
rates.
284.270 Reporting requirements.
284.271 Waiver.

Subpart J—Blanket Certificates Authorizing
Certain Natural Gas Sales by Interstate
Pipelines
284.281 Applicability.
284.282 Definitions.
284.283 Point of unbundling.
284.284 Blanket certificates for unbundled
sales services.
284.285 Pregrant
of
abandonment
of
unbundled sales services.
284.286 Standards of conduct for unbundled
sales service.
284.287 Implementation and effective date.

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Federal Energy Regulatory Commission
284.288 Code of conduct for unbundled sales
service.

Subpart K—Transportation of Natural Gas
on the Outer Continental Shelf by
Interstate Natural Gas Pipelines on Behalf of Others
284.301
284.302
284.303

Applicability.
Definitions.
OCS blanket certificates.

Subpart L—Certain Sales for Resale by
Non-interstate Pipelines
284.401 Definitions.
284.402 Blanket marketing certificates.
284.403 Code of conduct for persons holding
blanket marketing certificates.

Subpart M—Applications for Market-Based
Rates for Storage
284.501 Applicability.
284.502 Procedures for applying for marketbased rates.
284.503 Market-power determination.
284.504 Standard requirements for marketpower authorizations.
284.505 Market-based rates for storage providers without a market-power determination.
AUTHORITY: 15 U.S.C. 717–717z, 3301–3432; 42
U.S.C. 7101–7352; 43 U.S.C. 1331–1356.
SOURCE: Order 46, 44 FR 52184, Sept. 7, 1979,
unless otherwise noted.
EDITORIAL NOTE: Nomenclature changes to
part 284 appear at 65 FR 10222, Feb. 25, 2000.

Subpart A—General Provisions
and Conditions

§ 284.3
or is a ‘‘natural gas company’’ and has
obtained a service area determination
under section 7(f) of the Natural Gas
Act from the Commission;
(2) It delivers annually more than
fifty (50) million MMBtu (million British thermal units) of natural gas measured in average deliveries for the previous three calendar years; or, if the
pipeline has been operational for less
than three years, its design capacity
permits deliveries of more than fifty
(50) million MMBtu of natural gas annually.
[44 FR 52184, Sept. 7, 1989, as amended by
Order 636, 57 FR 13315, Apr. 16, 1992; Order 720,
73 FR 73517, Dec. 2, 2008; Order 720–A, 75 FR
5201, Feb. 1, 2010]

§ 284.2

Refunds and interest.

(a) Refunds. Any rate or charge collected for any sale, transportation, or
assignment conducted pursuant to this
part which exceeds the rates or charges
authorized by this part shall be refunded.
(b) Interest. All refunds made pursuant to this section must include interest at an amount determined in accordance with § 154.501(d) of this chapter.
[44 FR 52184, Sept. 7, 1979, as amended at 44
FR 53505, Sept. 14, 1979; Order 273, 48 FR 1288;
Jan. 12, 1983; Order 581, 60 FR 53072, Oct. 11,
1995]

§ 284.3 Jurisdiction under the Natural
Gas Act.

§ 284.1 Definitions.
(a) Transportation includes storage,
exchange, backhaul, displacement, or
other methods of transportation.
(b) Appropriate state regulatory agency
means a state agency which regulates
intrastate pipelines and local distribution companies within such state.
When used in reference to rates and
charges, the term includes only those
agencies which set rates and charges
on a cost-of-service basis.
(c) Market center means an area where
gas purchases and sales occur at the
intersection of different pipelines.
(d) Major non-interstate pipeline means
a pipeline that fits the following criteria:
(1) It is not a ‘‘natural gas company’’
under section 1 of the Natural Gas Act,

(a) For purposes of section 1(b) of the
Natural Gas Act, the provisions of such
Act and the jurisdiction of the Commission under such Act shall not apply
to any transportation or sale in interstate commerce of natural gas if such a
transaction is authorized pursuant to
section 311 or 312 of the NGPA.
(b) For purposes of the Natural Gas
Act, the term ‘‘natural gas company’’
(as defined by section 2(6) of such Act)
shall not include any person by reason
of, or with respect to, any transaction
involving natural gas if the provisions
of the Natural Gas Act do not apply to
such transaction by reason of paragraph (a) of this section.
(c) The Natural Gas Act shall not
apply to facilities utilized solely for

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§ 284.4

18 CFR Ch. I (4–1–14 Edition)

transportation authorized by section
311(a) of the NGPA.
[44 FR 52184, Sept. 7, 1979, as amended by
Order 581, 60 FR 53072, Oct. 11, 1995]

§ 284.4 Reporting.
(a) Reports in MMBtu. All reports
filed pursuant to this part must indicate quantities of natural gas in
MMBtu’s. An MMBtu means a million
British thermal units. A British thermal unit or Btu means the quantity of
heat required to raise the temperature
of one pound avoirdupois of pure water
from 58.5 degrees to 59.5 degrees Fahrenheit, determined in accordance with
paragraphs (b) and (c) of this section.
(b) Measurement. The Btu content of
one cubic foot of natural gas under the
standard conditions specified in paragraph (c) of this section is the number
of Btu’s produced by the complete combustion of such cubic foot of gas, at
constant pressure with air of the same
temperature and pressure as the gas,
when the products of combustion are
cooled to the initial temperature of the
gas and air and when the water formed
by such combustion is condensed to a
liquid state.
(c) Standard conditions. The standard
conditions for purposes of paragraph
(b) of this section are as follows: The
gas is saturated with water vapor at 60
degrees Fahrenheit under a pressure
equivalent to that of 30.00 inches of
mercury at 32 degrees Fahrenheit,
under standard gravitational force
(980.665
centimeters
per
second
squared).
[Order 581, 60 FR 53072, Oct. 11, 1995]

§ 284.5 Further terms and conditions.
The Commission may prospectively,
by rule or order, impose such further
terms and conditions as it deems appropriate on transactions authorized
by this part.
§ 284.6 Rate interpretations.
(a) Procedure. A pipeline may obtain
an interpretation pursuant to subpart
L of part 385 of this chapter concerning
whether particular rates and charges
comply with the requirements of this
part.
(b) Address. Requests for interpretations should be addressed to: FERC

Part 284 Interpretations, Office of General Counsel, Federal Energy Regulatory Commission, Washington, DC
20426.
[44 FR 66791, Nov. 21, 1979; 44 FR 75383, Dec.
20, 1979, as amended by Order 225, 47 FR 19058,
May 3, 1982; Order 581, 60 FR 53072, Oct. 11,
1995]

§ 284.7 Firm transportation service.
(a) Firm transportation availability. (1)
An interstate pipeline that provides
transportation service under subpart B
or G or this part must offer such transportation service on a firm basis and
separately from any sales service.
(2) An intrastate pipeline that provides transportation service under Subpart C may offer such transportation
service on a firm basis.
(3) Service on a firm basis means that
the service is not subject to a prior
claim by another customer or another
class of service and receives the same
priority as any other class of firm service.
(4) An interstate pipeline that provided a firm sales service on May 18,
1992, and that offers transportation
service on a firm basis under subpart B
or G of this part, must offer a firm
transportation service under which
firm shippers may receive delivery up
to their firm entitlements on a daily
basis without penalty.
(b) Non-discriminatory access. (1) An
interstate pipeline or intrastate pipeline that offers transportation service
on a firm basis under subpart B, C or G
must provide such service without
undue discrimination, or preference,
including undue discrimination or preference in the quality of service provided, the duration of service, the categories, prices, or volumes of natural
gas to be transported, customer classification, or undue discrimination or
preference of any kind.
(2) An interstate pipeline that offers
transportation service on a firm basis
under subpart B or G of this part must
provide each service on a basis that is
equal in quality for all gas supplies
transported under that service, whether purchased from the pipeline or another seller.
(3) An interstate pipeline that offers
transportation service on a firm basis
under subpart B or G of this part may

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Federal Energy Regulatory Commission
not include in its tariff any provision
that inhibits the development of market centers.
(c) Reasonable operational conditions.
Consistent with paragraph (b) of this
section, a pipeline may impose reasonable operational conditions on any
service provided under this part. Such
conditions must be filed by the pipeline
as part of its transportation tariff.
(d) Segmentation. An interstate pipeline that offers transportation service
under subpart B or G of this part must
permit a shipper to make use of the
firm capacity for which it has contracted by segmenting that capacity
into separate parts for its own use or
for the purpose of releasing that capacity to replacement shippers to the extent such segmentation is operationally feasible.
(e) Reservation fee. Where the customer purchases firm service, a pipeline may impose a reservation fee or
charge on a shipper as a condition for
providing such service. Except for pipelines subject to subpart C of this part,
if a reservation fee is charged, it must
recover all fixed costs attributable to
the firm transportation service, unless
the Commission permits the pipeline to
recover some of the fixed costs in the
volumetric portion of a two-part rate.
A reservation fee may not recover any
variable costs or fixed costs not attributable to the firm transportation service. Except as provided in this paragraph, the pipeline may not include in
a rate for any transportation provided
under subpart B, C or G of this part
any minimum bill or minimum take
provision, or any other provision that
has the effect of guaranteeing revenue.
(f) Limitation. A person providing
service under Subpart B, C or G of this
part is not required to provide any requested transportation service for
which capacity is not available or that
would require the construction or acquisition of any new facilities.
[Order 436, 50 FR 42493, Oct. 18, 1985]
EDITORIAL NOTE: For FEDERAL REGISTER citations affecting § 284.7, see the List of CFR
Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

§ 284.8
§ 284.8 Release of firm capacity on
interstate pipelines.
(a) An interstate pipeline that offers
transportation service on a firm basis
under subpart B or G of this part must
include in its tariff a mechanism for
firm shippers to release firm capacity
to the pipeline for resale by the pipeline on a firm basis under this section.
(b)(1) Firm shippers must be permitted to release their capacity, in
whole or in part, on a permanent or
short-term basis, without restriction
on the terms or conditions of the release. A firm shipper may arrange for a
replacement shipper to obtain its released capacity from the pipeline. A replacement shipper is any shipper that
obtains released capacity.
(2) The rate charged the replacement
shipper for a release of capacity may
not exceed the applicable maximum
rate, except that no rate limitation applies to the release of capacity for a period of one year or less if the release is
to take effect on or before one year
from the date on which the pipeline is
notified of the release. Payments or
other consideration exchanged between
the releasing and replacement shippers
in a release to an asset manager as defined in paragraph (h)(3) of this section
are not subject to the maximum rate.
(c) Except as provided in paragraph
(h) of this section, a firm shipper that
wants to release any or all of its firm
capacity must notify the pipeline of
the terms and conditions under which
the shipper will release its capacity.
The firm shipper must also notify the
pipeline of any replacement shipper
designated to obtain the released capacity under the terms and conditions
specified by the firm shipper.
(d) The pipeline must provide notice
of offers to release or to purchase capacity, the terms and conditions of
such offers, and the name of any replacement shipper designated in paragraph (b) of this section, on an Internet
web site, for a reasonable period.
(e) The pipeline must allocate released capacity to the person offering
the highest rate and offering to meet
any other terms and conditions of the
release. If more than one person offers
the highest rate and meets the terms
and conditions of the release, the released capacity may be allocated on a

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§ 284.8

18 CFR Ch. I (4–1–14 Edition)

basis provided in the pipeline’s tariff,
provided however, if the replacement
shipper designated in paragraph (b) of
this section offers the highest rate, the
capacity must be allocated to the designated replacement shipper.
(f) Unless otherwise agreed by the
pipeline, the contract of the shipper releasing capacity will remain in full
force and effect, with the net proceeds
from any resale to a replacement shipper credited to the releasing shipper’s
reservation charge.
(g) To the extent necessary, a firm
shipper on an interstate pipeline that
offers transportation service on a firm
basis under subpart B or G of this part
is granted a limited-jurisdiction blanket certificate of public convenience
and necessity pursuant to section 7 of
the Natural Gas Act solely for the purpose of releasing firm capacity pursuant to this section.
(h)(1) The following releases need not
comply with the bidding requirements
of paragraphs (c) through (e) of this
section:
(i) A release of capacity to an asset
manager as defined in paragraph (h)(3)
of this section;
(ii) A release of capacity to a marketer participating in a state-regulated
retail access program as defined in
paragraph (h)(4) of this section;
(iii) A release for more than one year
at the maximum tariff rate; and
(iv) A release for any period of 31
days or less.
(v) If a release is exempt from bidding under paragraph (h)(1) of this section, notice of the release must be provided on the pipeline’s Internet Web
site as soon as possible, but not later
than the first nomination, after the release transaction commences.
(2) When a release of capacity is exempt from bidding under paragraph
(h)(1)(iv) of this section, a firm shipper
may not roll over, extend or in any
way continue the release to the same
replacement shipper using the 31 days
or less bidding exemption until 28 days
after the first release period has ended.
The 28-day hiatus does not apply to any
re-release to the same replacement
shipper that is posted for bidding or
that qualifies for any of the other exemptions from bidding in paragraph
(h)(1) of this section.

(3) A release to an asset manager exempt from bidding requirements under
paragraph (h)(1)(i) of this section is any
pre-arranged release that contains a
condition that the releasing shipper
may call upon the replacement shipper
to deliver to, or purchase from, the releasing shipper a volume of gas up to
100 percent of the daily contract demand of the released transportation or
storage capacity, as provided in paragraphs (h)(3)(i) through (h)(3)(iii) of
this paragraph.
(i) If the capacity release is for a period of one year or less, the asset manager’s delivery or purchase obligation
must apply on any day during a minimum period of the lesser of five
months (or 155 days) or the term of the
release.
(ii) If the capacity release is for a period of more than one year, the asset
manager’s delivery or purchase obligation must apply on any day during a
minimum period of five months (or 155
days) of each twelve-month period of
the release, and on five-twelfths of the
days of any additional period of the release not equal to twelve months.
(iii) If the capacity release is a release of storage capacity, the asset
manager’s delivery or purchase obligation need only be up to 100 percent of
the daily contract demand under the
release for storage withdrawals or injections, as applicable.
(4) A release to a marketer participating in a state-regulated retail access program exempt from bidding requirements under paragraph (h)(1)(ii)
of this section is any prearranged capacity release that will be utilized by
the replacement shipper to provide the
gas supply requirement of retail consumers pursuant to a retail access program approved by the state agency
with jurisdiction over the local distribution company that provides delivery service to such retail consumers.
[Order 636, 57 FR 13318, Apr. 16, 1992, as
amended by Order 636–A, 57 FR 36217, Aug. 12,
1992; Order 577, 60 FR 16983, Apr. 4, 1995; Order
577-A, 60 FR 30187, June 8, 1995. Redesignated
and amended by Order 637, 65 FR 10220, Feb.
25, 2000; Order 637–A, 65 FR 35765, June 5, 2000;
Order 712, 73 FR 37092, June 30, 2008; Order
712–A, 73 FR 72714, Dec. 1, 2008; 73 FR 79628,
Dec. 30, 2008]

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Federal Energy Regulatory Commission
§ 284.9 Interruptible
service.

transportation

(a) Interruptible transportation availability. (1) An interstate pipeline that
provides firm transportation service
under subpart B or G of this part must
also offer transportation service on an
interruptible basis under that subpart
or subparts and separately from any
sales service.
(2) An intrastate pipeline that provides transportation service under Subpart C may offer such transportation
service on an interruptible basis.
(3) Service on an interruptible basis
means that the capacity used to provide the service is subject to a prior
claim by another customer or another
class of service and receives a lower
priority than such other classes of
service.
(b) The provisions regarding non-discriminatory access, reasonable operational conditions, and limitations
contained in § 284.7 (b), (c), and (f) apply
to pipelines providing interruptible
service under this section.
(c) Reservation fee. No reservation fee
may be imposed for interruptible service. A pipeline’s rate for any transportation service provided under this section may not include any minimum bill
provision, minimum take provision, or
any other provision that has the effect
of guaranteeing revenue.
[Order 436, 50 FR 42494, Oct. 18, 1985]
EDITORIAL NOTE: For FEDERAL REGISTER citations affecting § 284.9, see the List of CFR
Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

§ 284.10

Rates.

(a) Applicability. Any rate charged for
transportation service under subparts
B and G of this part must be established under a rate schedule that is
filed with the Commission prior to
commencement of such service and
that conforms to the requirements of
this section.
(b) Rate objectives. Maximum rates for
both peak and offpeak periods must be
designed to achieve the following three
objectives:
(1) Rates for service during peak periods should ration capacity;

§ 284.10
(2) Rates for firm service during offpeak periods and for interruptible service during all periods should maximize
throughput; and
(3) The pipeline’s revenue requirement allocated to firm and interruptible services should be attained by providing the projected units of service in
peak and off-peak periods at the maximum rate for each service.
(c) Rate design—(1) Volumetric rates.
Except as provided in § 284.7(e), any
rate filed for service subject to this
section must be a one-part rate that recovers the costs allocated to the service to the extent that the projected
units of that service are actually purchased and may not include a demand
charge, a minimum bill or minimum
take provision or any other provision
that has the effect of guaranteeing revenue. Such rate must separately identify cost components attributable to
transportation, storage, and gathering
costs.
(2) Based on projected units of service.
Any rate filed for service subject to
this section must be designed to recover costs on the basis of projected
units of service. The fixed costs allocated to capacity reservations, as determined in accordance with § 284.7(e),
should be used along with the projected
nominations accepted by the pipeline
to compute the unit reservation fee.
The remaining fixed costs and all variable costs should be used to determine
the volumetric rate computed on the
basis of projected volumes to be transported. The units projected for the
service in rates filed under this section
may be changed only in a subsequent
rate filing under section 4 of the Natural Gas Act.
(3) Differentiation due to time and distance. Any rate filed for service subject
to this section must reasonably reflect
any material variation in the cost of
providing the service due to:
(i) Whether the service is provided
during a peak or an off-peak period;
and
(ii) The distance over which the
transportation is provided.
(4) Cost basis for rates. (i) Any maximum rate filed under this section
must be designed to recover on a unit
basis, solely those costs which are

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§ 284.11

18 CFR Ch. I (4–1–14 Edition)

properly allocated to the service to
which the rate applies.
(ii) Any minimum rate filed under
this section must be based on the average variable costs which are properly
allocated to the service to which the
rate applies.
(5) Rate flexibility. (i) Any rate schedule filed under this section must state
a maximum rate and a minimum rate.
(ii)(A) Except as provided in paragraph (d)(5)(ii)(B) of this section the
pipeline may charge an individual customer any rate that is neither greater
than the maximum rate nor less than
the minimum rate on file for that service.
(B) If a pipeline does not hold a blanket certificate under Subpart G of this
part, it may not charge, in a transaction involving its marketing affiliate, a rate that is lower than the highest rate it charges in any transaction
not involving its marketing affiliate.
(iii) The pipeline may not file a revised or new rate designed to recover
costs not recovered under rates previously in effect.
[Order 436, 50 FR 42493, Oct. 18, 1985, as
amended at 50 FR 52274, Dec. 23, 1985; 53 FR
22163, June 14, 1988; Order 522, 55 FR 12169,
Apr. 2, 1990; Order 581, 60 FR 53072, Oct. 11,
1995. Redesignated and amended by Order 637,
65 FR 10220, Feb. 25, 2000]

§ 284.11 Environmental compliance.
(a) Any activity involving the construction of, or the abandonment with
removal of, facilities that is authorized
pursuant to § 284.3(c) and subpart B or C
of this part is subject to the terms and
conditions of § 157.206(b) of this chapter.
(b) Advance notification—(1) General
rule. Except as provided in paragraph
(b)(2) of this section, at least 30 days
prior to commencing construction a
company must file notification with
the Commission of any activity described in paragraph (a) of this section.
(2) Exception. The advance notification described in paragraph (b)(1) of
this section is not required if the cost
of the project does not exceed the cost
limit specified in Column 1 of Table I
of § 157.208(d) of this chapter.
(c) Contents of advance notification.
The advance notification described in
paragraph (b)(1) of this section must
include the following information:

(1) A brief description of the facilities
to be constructed or abandoned with
removal of facilities (including pipeline
size and length, compression horsepower, design capacity, and cost of construction);
(2) Evidence of having complied with
each provision of § 157.206(b) of this
chapter;
(3) Current U.S. Geological Survey
7.5-minute series topographical maps
showing the location of the facilities;
and
(4) A description of the procedures to
be used for erosion control, revegetation and maintenance, and stream and
wetland crossings.
(d) Reporting requirements. On or before May 1 of each year, a company
must file (on electronic media pursuant to § 385.2011 of this chapter, accompanied by 7 paper copies) an annual report that lists for the previous calendar year each activity that is described in paragraph (a) of this section,
and which was completed during the
previous calendar year and exempt
from the advance notification requirement pursuant to paragraph (b)(2) of
this section. For each such activity,
the company must include all of the information described in paragraph (c) of
this section.
[Order 544, 57 FR 46495, Oct. 9, 1992, as amended by Order 581, 60 FR 53072, Oct. 11, 1995;
Order 603–A, 64 FR 54537, Oct. 7, 1999]

§ 284.12 Standards for pipeline business operations and communications.
(a) Incorporation by reference of
NAESB standards. (1) An interstate
pipeline that transports gas under subparts B or G of this part must comply
with the following business practice
and electronic communication standards promulgated by the North American Energy Standards Board, which
are incorporated herein by reference:
(i) Additional Standards (Version 2.0,
November 30, 2010, with Minor Corrections Applied Through April 30, 2012);
(ii) Nominations Related Standards
(Version 2.0, November 30, 2010, with
Minor Corrections Applied Through December 2, 2011);
(iii) Flowing Gas Related Standards
(Version 2.0, November 30, 2010, with

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Federal Energy Regulatory Commission
Minor Corrections Applied Through
June 3, 2011);
(iv) Invoicing Related Standards
(Version 2.0, November 30, 2010, with
Minor Corrections Applied Through
June 3, 2011);
(v) Quadrant Electronic Delivery
Mechanism Related Standards (Version
2.0, November 30, 2010, with Minor Corrections Applied Through December 2,
2011) with the exception of Standard
4.3.4;
(vi) Capacity Release Related Standards (Version 2.0, November 30, 2010,
with
Minor
Corrections
Applied
Through January 5, 2012); and
(vii) Internet Electronic Transport
Related Standards (Version 2.0, November 30, 2010, with Minor Corrections Applied Through January 2, 2011) with the
exception of Standard 10.3.2.
(2) This incorporation by reference
was approved by the Director of the
Federal Register in accordance with 5
U.S.C. 552(a) and 1 CFR part 51. Copies
of these standards may be obtained
from the North American Energy
Standards Board, 801 Travis Street,
Suite 1675, Houston, TX 77002, Phone:
(713) 356–0060. NAESB’s Web site is at
http://www.naesb.org/. Copies may be inspected at the Federal Energy Regulatory Commission, Public Reference
and Files Maintenance Branch, 888
First Street, NE., Washington, DC
20426, Phone: (202) 502–8371, http://
www.ferc.gov, or at the National Archives and Records Administration
(NARA). For information on the availability of this material at NARA, call
202–741–6030,
or
go
to:
http://
www.archives.gov/federallregister/
codeloflfederallregulations/
ibrllocations.html.
(b) Business practices and electronic
communication requirements. An interstate pipeline that transports gas
under subparts B or G of this part must
comply with the following requirements. The regulations in this paragraph adopt the abbreviations and definitions contained in the North American Energy Standards Board Wholesale Gas Quadrant standards incorporated by reference in paragraph (a)(1)
of this section.
(1) Nominations.
(i) Intra-day nominations.

§ 284.12
(A) A pipeline must give scheduling
priority to an intra-day nomination
submitted by a firm shipper over nominated and scheduled volumes for interruptible shippers. When an interruptible shipper’s scheduled volumes are to
be reduced as a result of an intra-day
nomination by a firm shipper, the interruptible shipper must be provided
with advance notice of such reduction
and must be notified whether penalties
will apply on the day its volumes are
reduced.
(B) An intra-day nomination submitted on the day prior to gas flow will
take effect at the start of the gas day
at 9 a.m. CCT.
(ii) Capacity release scheduling. (A)
Pipelines must permit shippers acquiring released capacity to submit a nomination at the earliest available nomination opportunity after the acquisition of capacity. If the pipeline requires the replacement shipper to enter
into a contract, the contract must be
issued within one hour after the pipeline has been notified of the release,
but the requirement for contracting
must not inhibit the ability of the replacement shipper to submit a nomination at the earliest available nomination opportunity.
(B) A pipeline must permit releasing
shippers, as a condition of a capacity
release, to recall released capacity and
renominate such recalled capacity at
each nomination opportunity. Each replacement shipper must be provided
with advance notice of such recall and
must be notified whether penalties will
apply on the day its volumes are reduced.
(2) Flowing gas. (i) Operational balancing agreements. A pipeline must
enter into Operational Balancing
Agreements at all points of interconnection between its system and the
system of another interstate or intrastate pipeline.
(ii) Netting and trading of imbalances.
A pipeline must establish provisions
permitting shippers and their agents to
offset imbalances accruing on different
contracts held by the shipper with the
pipeline and to trade imbalances with
other shippers where such imbalances
have similar operational impact on the
pipeline’s system.

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§ 284.12

18 CFR Ch. I (4–1–14 Edition)

(iii) Imbalance management. A pipeline
with imbalance penalty provisions in
its tariff must provide, to the extent
operationally practicable, parking and
lending or other services that facilitate
the ability of its shippers to manage
transportation imbalances. A pipeline
also must provide its shippers the opportunity to obtain similar imbalance
management services from other providers and shall provide those shippers
using other providers access to transportation and other pipeline services
without undue discrimination or preference.
(iv) Operational flow orders. A pipeline
must take all reasonable actions to
minimize the issuance and adverse impacts of operational flow orders (OFOs)
or other measures taken to respond to
adverse operational events on its system. A pipeline must set forth in its
tariff clear standards for when such
measures will begin and end and must
provide timely information that will
enable shippers to minimize the adverse impacts of these measures.
(v) Penalties. A pipeline may include
in its tariff transportation penalties
only to the extent necessary to prevent
the impairment of reliable service.
Pipelines may not retain net penalty
revenues, but must credit them to shippers in a manner to be prescribed in
the pipeline’s tariff. A pipeline with
penalty provisions in its tariff must
provide to shippers, on a timely basis,
as much information as possible about
the imbalance and overrun status of
each shipper and the imbalance of the
pipeline’s system.
(3) Communication protocols. (i)(A) All
electronic information provided and
electronic transactions conducted by a
pipeline must be provided on the public
Internet. A pipeline must provide, upon
request, private network connections
using internet tools, internet directory
services, and internet communication
protocols and must provide these networks with non-discriminatory access
to all electronic information. A pipeline may charge a reasonable fee to recover the costs of providing such an
interconnection.
(B) A pipeline must implement this
requirement no later than June 1, 2000.
(ii) A pipeline must comply with the
following requirements for documents

constituting public information posted
on the pipeline web site:
(A) The documents must be accessible to the public over the public
Internet using commercially available
web browsers, without imposition of a
password or other access requirement;
(B) Users must be able to search an
entire document online for selected
words, and must be able to copy selected portions of the documents; and
(C) Documents on the web site should
be directly downloadable without the
need for users to first view the documents on the web site.
(iii) If a pipeline uses a numeric or
other designation to represent information, an electronic cross-reference
table between the numeric or other
designation and the information represented must be available to users, at
a cost not to exceed reasonable shipping and handling.
(iv) A pipeline must provide the same
content for all information regardless
of the electronic format in which it is
provided.
(v) A pipeline must maintain, for a
period of three years, all information
displayed and transactions conducted
electronically under this section and be
able to recover and regenerate all such
electronic information and documents.
The pipeline must make this archived
information available in electronic
form for a reasonable fee.
(vi) A pipeline must post notices of
operational flow orders, critical periods, and other critical notices on its
Internet web site and must notify affected parties of such notices in either
of the following ways to be chosen by
the affected party: Internet E-Mail or
direct notification to the party’s Internet URL address.
(4) Communication and information
sharing among pipelines and public utilities. (i) A pipeline is authorized to
share non-public, operational information with a public utility, as defined in
§ 38.2(a) of this chapter or another pipeline covered by this section, for the
purpose of promoting reliable service
or operational planning.
(ii) Except as permitted in paragraph
(b)(4)(i) of this section, a pipeline and
its employees, contractors, consultants, and agents are prohibited from

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Federal Energy Regulatory Commission
disclosing, or using anyone as a conduit for the disclosure of, non-public,
operational information received from
a public utility pursuant to § 38.2 of
this chapter to a third party or to its
marketing function employees as that
term is defined in § 358.3(d) of this chapter.
[Order 587, 61 FR 39068, July 26, 1996]
EDITORIAL NOTE: For FEDERAL REGISTER citations affecting § 284.12, see the List of CFR
Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

§ 284.13 Reporting requirements for
interstate pipelines.
An interstate pipeline that provides
transportation service under subparts
B or G of this part must comply with
the following reporting requirements.
(a) Cross references. The pipeline must
comply with the requirements in Part
358, Part 250, and Part 260 of this chapter, where applicable.
(b) Reports on firm and interruptible
services. An interstate pipeline must
post the following information on its
Internet web site, and provide the information in downloadable file formats, in conformity with § 284.12 of this
part, and must maintain access to that
information for a period not less than
90 days from the date of posting.
(1) For pipeline firm service and for
release transactions under § 284.8, the
pipeline must post with respect to each
contract, or revision of a contract for
service, the following information no
later than the first nomination under a
transaction:
(i) The full legal name of the shipper,
and identification number, of the shipper receiving service under the contract, and the full legal name, and
identification number, of the releasing
shipper if a capacity release is involved
or an indication that the pipeline is the
seller of transportation capacity;
(ii) The contract number for the shipper receiving service under the contract, and, in addition, for released
transactions, the contract number of
the releasing shipper’s contract;
(iii) The rate charged under each contract;
(iv) The maximum rate, and for capacity release transactions not subject
to a maximum rate, the maximum rate

§ 284.13
that would be applicable to a comparable sale of pipeline services;
(v) The duration of the contract;
(vi) The receipt and delivery points
and zones or segments covered by the
contract, including the industry common code for each point, zone, or segment;
(vii) The contract quantity or the
volumetric quantity under a volumetric release;
(viii) Special terms and conditions
applicable to a capacity release transaction, including all aspects in which
the contract deviates from the pipeline’s tariff, and special details pertaining to a pipeline transportation
contract, including whether the contract is a negotiated rate contract,
conditions applicable to a discounted
transportation contract, and all aspects in which the contract deviates
from the pipeline’s tariff.
(ix) Whether there is an affiliate relationship between the pipeline and the
shipper or between the releasing and
replacement shipper.
(x) Whether a capacity release is a
release to an asset manager as defined
in § 284.8(h)(3) and the asset manager’s
obligation to deliver gas to, or purchase gas from, the releasing shipper.
(xi) Whether a capacity release is a
release to a marketer participating in
a state-regulated retail access program
as defined in § 284.8(h)(4).
(2) For pipeline interruptible service,
the pipeline must post on a daily basis
no later than the first nomination for
service under an interruptible agreement, the following information:
(i) The full legal name, and identification number, of the shipper receiving service;
(ii) The rate charged;
(iii) The maximum rate;
(iv) The receipt and delivery points
covered between which the shipper is
entitled to transport gas at the rate
charged, including the industry common code for each point, zone, or segment;
(v) The quantity of gas the shipper is
entitled to transport;
(vi) Special details pertaining to the
agreement, including conditions applicable to a discounted transportation
contract and all aspects in which the

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§ 284.13

18 CFR Ch. I (4–1–14 Edition)

agreement deviates from the pipeline’s
tariff.
(vii) Whether the shipper is affiliated
with the pipeline.
(c) Index of customers. (1) On the first
business day of each calendar quarter,
an interstate pipeline must file with
the Commission an index of all its firm
transportation and storage customers
under contract as of the first day of the
calendar quarter that complies with
the requirements set forth by the Commission. The Commission will establish
the requirements and format for such
filing. The index of customers must
also posted on the pipeline’s Internet
web, in accordance with standards
adopted in § 284.12 of this part, and
made available from the Internet web
site in a downloadable format complying with the specifications established by the Commission. The information posted on the pipeline’s Internet web site must be made available
until the next quarterly index is posted.
(2) For each shipper receiving firm
transportation or storage service, the
index must include the following information:
(i) The full legal name, and identification number, of the shipper;
(ii) The applicable rate schedule
number under which the service is
being provided;
(iii) The contract number;
(iv) The effective and expiration
dates of the contract;
(v) For transportation service, the
maximum daily contract quantity
(specify unit of measurement), and for
storage service, the maximum storage
quantity (specify unit of measurement);
(vi) The receipt and delivery points
and the zones or segments covered by
the contract in which the capacity is
held, including the industry common
code for each point, zone, or segment;
(vii) An indication as to whether the
contract includes negotiated rates;
(viii) The name of any agent or asset
manager managing a shipper’s transportation service; and
(ix) Any affiliate relationship between the pipeline and a shipper or between the pipeline and a shipper’s asset
manager or agent.

(3) The requirements of this section
do not apply to contracts which relate
solely to the release of capacity under
§ 284.8, unless the release is permanent.
(4) Pipelines that are not required to
comply with the index of customers
posting and filing requirements of this
section must comply with the index of
customer requirements applicable to
transportation and sales under Part 157
as set forth under § 154.111(b) and (c) of
this chapter.
(5) The requirements for the electronic index can be obtained from the
Federal Energy Regulatory Commission, Division of Information Services,
Public Reference and Files Maintenance Branch, Washington, DC 20426.
(d) Capacity and flow information. (1)
An interstate pipeline must provide on
its
Internet
web
site
and
in
downloadable file formats, in conformity with § 284.12 of this part, equal
and timely access to information relevant to the availability of all transportation services whenever capacity is
scheduled, including, but not limited
to, the availability of capacity at receipt points, on the mainline, at delivery points, and in storage fields,
whether the capacity is available directly from the pipeline or through capacity release, the total design capacity of each point or segment on the
system, the amount scheduled at each
point or segment whenever capacity is
scheduled, and all planned and actual
service outages or reductions in service
capacity. An interstate pipeline must
also provide information about the volumes of no-notice transportation provided pursuant to § 284.7(a)(4). This information must be posted at each receipt and delivery point before 11:30
a.m. central clock time three days
after the day of gas flow and must reflect the pipeline’s best estimate. Updated information must be posted at
each receipt and delivery point as necessary within ten business days after
the month of gas flow.
(2) An interstate pipeline must make
an annual filing by March 1 of each
year showing the estimated peak day
capacity of the pipeline’s system, and
the estimated storage capacity and
maximum daily delivery capability of
storage facilities under reasonably representative operating assumptions and

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Federal Energy Regulatory Commission
the respective assignments of that capacity to the various firm services provided by the pipeline.
(e) Notice of bypass. An interstate
pipeline that provides transportation
(except storage) to a customer that is
located in the service area of a local
distribution company and will not be
delivering the customer’s gas to that
local distribution company, must file
with the Commission, within thirty
days after commencing such transportation, a statement that the interstate
pipeline has notified the local distribution company and the local distribution company’s appropriate regulatory
agency in writing of the proposed
transportation prior to commencement.
[Order 637, 65 FR 10221, Feb. 25, 2000, as
amended by Order 637–A, 65 FR 35765, June 5,
2000; Order 2004, 68 FR 69157, Dec. 11, 2003;
Order 712, 73 FR 37092, June 30, 2008; Order
720, 73 FR 73517, Dec. 2, 2008; Order 720–B, 75
FR 44900, July 30, 2010; Order 757, 77 FR 4224,
Jan. 27, 2012]

§ 284.14 Posting requirements of major
non-interstate pipelines.
(a) Daily posting requirement. A major
non-interstate pipeline must post on a
daily basis on a publicly-accessible
Internet Web site and in downloadable
file format equal and timely access to
information regarding receipt or delivery points, including non-physical
scheduling points.
(1) A major non-interstate pipeline
must post data for each receipt or delivery point, or for any point that operates as both a delivery and receipt
point for the major non-interstate
pipeline, to which natural gas transportation is scheduled:
(i) With a physically metered design
capacity equal to or greater than 15,000
MMBtu (million British thermal units)/
day; or
(ii) If a physically metered design capacity is not known or does not exist
for such a point, with a maximum volume scheduled to such a point equal to
or greater than 15,000 MMBtu on any
day within the prior three calendar
years.
(2) Notwithstanding the requirements
of subsection 284.14(a)(1), a receipt
point is not subject to the posting requirements of this section if the max-

§ 284.14
imum scheduled volume at the receipt
point was less than 5,000 MMBtu on
every day within the prior three calendar years. If a point has operated as
both a receipt and delivery point any
time within the prior three calendar
years, subsection 284.14(a)(2) shall not
apply to that point.
(3) A major non-interstate pipeline
that must post data for a receipt or delivery point shall do so within 45 days
of the date that the point becomes eligible for posting.
(4) For each delivery or receipt point
that must be posted, a major non-interstate pipeline must provide the following information by 10:00 p.m. central clock time the day prior to scheduled natural gas flow: Transportation
Service Provider Name, Posting Date,
Posting Time, Nomination Cycle, Location Name, Additional Location Information if Needed to Distinguish Between Points, Location Purpose Description (Receipt, Delivery, Bilateral,
or Non-physical Scheduling Point),
Posted Capacity (physically metered
design capacity or maximum flow
within the last three years), Method of
Determining Posted Capacity (Capacity or Maximum Volume), Scheduled
Volume, Available Capacity (Calculated as Posted Capacity minus
Scheduled Capacity), and Measurement
Unit (Dth, MMBtu, or MCf). For receipt
or delivery points with bi-directional
scheduled flows, the Scheduled Volume
for scheduled flow in each direction
must be posted. The information in
this subsection must remain posted for
at least a period of one year.
(5) Newly constructed major noninterstate pipelines, which commence
service after the effective date of this
section, must comply with the requirements of this section upon their inservice date. Except for newly constructed major non-interstate pipelines, a major non-interstate pipeline
that becomes subject to the requirements of this section in any year after
the effective date of this section has
until June 1 of that year to comply
with the requirements of this section.
(b) Exemptions to daily posting requirement. The following categories of major
non-interstate pipelines are exempt
from the posting requirement of
§ 284.14(a):

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§ 284.15

18 CFR Ch. I (4–1–14 Edition)

(1) Those that are located upstream
of a processing, treatment or dehydration plant;
(2) Those that deliver more than
ninety-five percent (95%) of the natural
gas volumes they flow directly to endusers or on-system storage as measured
in average deliveries for the previous
three calendar years;
(3) Storage providers;
(4) Those that deliver the entirety of
their transported natural gas directly
to an end-user that owns or operates
the major non-interstate pipeline.
[Order 720–A, 75 FR 5201, Feb. 1, 2010, as
amended by Order 720–B, 75 FR 44900, July 30,
2010]

§ 284.15 Bidding by affiliates in open
seasons for pipeline capacity.
(a) Multiple affiliates of the same entity may not participate in an open
season for pipeline capacity conducted
by any interstate pipeline providing
service under subparts B and G of this
part, in which the pipeline may allocate capacity on a pro rata basis, unless
each affiliate has an independent business reason for submitting a bid.
(b) For purposes of this section, an
affiliate is any person that satisfies the
definition of affiliate in § 358.3(a)(1) and
(3) of this chapter with respect to another entity participating in an open
season subject to paragraph (a) of this
section.
[Order 894, 76 FR 72306, Nov. 23, 2011]

Subpart B—Certain Transportation
by Interstate Pipelines
§ 284.101 Applicability.
This subpart implements section
311(a)(1) of the NGPA and applies to the
transportation of natural gas by any
interstate pipeline on behalf of:
(a) Any intrastate pipeline; or
(b) Any local distribution company.
§ 284.102 Transportation by interstate
pipelines.
(a) Subject to paragraphs (d) and (e)
of this section, other provisions of this
subpart, and the conditions of subpart
A of this part, any interstate pipeline
is authorized without prior Commission approval, to transport natural gas
on behalf of:

(1) Any intrastate pipeline; or
(2) Any local distribution company.
(b) Any rates charged for transportation under this subpart may not exceed the just and reasonable rates established under subpart A of this part.
(c) An interstate pipeline that engages in transportation arrangements
under this subpart must file reports in
accordance with § 284.13 of this chapter.
(d) Transportation of natural gas is
not on behalf of an intrastate pipeline
or local distribution company or authorized under this section unless:
(1) The intrastate pipeline or local
distribution company has physical custody of and transports the natural gas
at some point; or
(2) The intrastate pipeline or local
distribution company holds title to the
natural gas at some point, which may
occur prior to, during, or after the time
that the gas is being transported by the
interstate pipeline, for a purpose related to its status and functions as an
intrastate pipeline or its status and
functions as a local distribution company; or
(3) The gas is delivered at some point
to a customer that either is located in
a local distribution company’s service
area or is physically able to receive direct deliveries of gas from an intrastate pipeline, and that local distribution company or intrastate pipeline
certifies that it is on its behalf that
the interstate pipeline is providing
transportation service.
(e) An interstate pipeline must obtain from its shippers certifications including sufficient information to verify
that their services qualify under this
section. Prior to commencing transportation service described in paragraph
(d)(3) of this section, an interstate
pipeline must receive the certification
required from a local distribution company or an intrastate pipeline pursuant
to paragraph (d)(3) of this section.
[Order 436, 50 FR 42495, Oct. 18, 1985, as
amended by Order 526, 55 FR 33011, Aug. 13,
1990; Order 537, 56 FR 50245, Oct. 4, 1991; Order
581, 60 FR 53072, Oct. 11, 1995; Order 637, 65 FR
10222, Feb. 25, 2000; Order 756, 77 FR 4894, Feb.
1, 2012]

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Federal Energy Regulatory Commission
§§ 284.103–284.106

[Reserved]

Subpart C—Certain Transportation
by Intrastate Pipelines
§ 284.121

Applicability.

This subpart implements section
311(a)(2) of the NGPA and applies to the
transportation of natural gas by any
intrastate pipeline on behalf of:
(a) Any interstate pipeline, or
(b) Any local distribution company
served by any interstate pipeline.
§ 284.122 Transportation by intrastate
pipelines.
(a) Subject to paragraph (d) of this
section, other provisions of this subpart, and the applicable conditions of
Subpart A of this part, any intrastate
pipeline may, without prior Commission approval, transport natural gas on
behalf of:
(1) Any interstate pipeline; or
(2) Any local distribution company
served by an interstate pipeline.
(b) No rate charged for transportation authorized under this subpart
may exceed a fair and equitable rate
under § 284.123.
(c) Any intrastate pipeline engaged
in transportation arrangements authorized under this section must file
reports as required by § 284.126.
(d) Transportation of natural gas is
not on behalf of an interstate pipeline
or local distribution company served
by an interstate pipeline or authorized
under this section unless:
(1) The interstate pipeline or local
distribution company has physical custody of and transports the natural gas
at some point; or
(2) The interstate pipeline or local
distribution company holds title to the
natural gas at some point, which may
occur prior to, during, or after the time
that the gas is being transported by the
intrastate pipeline, for a purpose related to its status and functions as an
interstate pipeline or its status and
functions as a local distribution company.
[Order 436, 50 FR 42495, Oct. 18, 1985, as
amended by Order 537, 56 FR 50245, Oct. 4,
1991; Order 537–A, 57 FR 46501, Oct. 9, 1992;
Order 581, 60 FR 53073, Oct. 11, 1995; Order 756,
77 FR 4894, Feb. 1, 2012]

§ 284.123
§ 284.123 Rates and charges.
(a) General rule. Rates and charges for
transportation of natural gas authorized under § 284.122(a) shall be fair and
equitable as determined in accordance
with paragraph (b) of this section.
(b) Election of rates. (1) Subject to the
conditions in §§ 284.7 and 284.9 of this
chapter, an intrastate pipeline may
elect to:
(i) Base its rates upon the methodology used:
(A) In designing rates to recover the
cost of gathering, treatment, processing, transportation, delivery or
similar service (including storage service) included in one of its then effective
firm sales rate schedules for city-gate
service on file with the appropriate
state regulatory agency; or
(B) In determining the allowance permitted by the appropriate state regulatory agency to be included in a natural gas distributor’s rates for citygate natural gas service; or
(ii) To use the rates contained in one
of its then effective transportation rate
schedules for intrastate service on file
with the appropriate state regulatory
agency which the intrastate pipeline
determines covers service comparable
to service under this subpart.
(2)(i) If an intrastate pipeline does
not choose to make any election under
paragraph (b)(1) of this section, it shall
apply for Commission approval, by
order, of the proposed rates and
charges by filing with the Commission
the proposed rates and charges, and information showing the proposed rates
and charges are fair and equitable.
Each petition for approval filed under
this paragraph must be accompanied
by the fee set forth in § 381.403 or by a
petition for waiver pursuant to § 384.106
of this chapter. Upon filing the petition
for approval, the intrastate pipeline
may commence the transportation
service and charge and collect the proposed rate, subject to refund.
(ii) 150 days after the date on which
the Commission received an application filed pursuant to paragraph
(b)(2)(i) of this section, the rate proposed in the application will be deemed
to be fair and equitable and not in excess of an amount which interstate
pipelines would be permitted to charge
for providing similar transportation

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§ 284.123

18 CFR Ch. I (4–1–14 Edition)

service, unless within the 150 day period, the Commission either extends
the time for action, or institutes a proceeding in which all interested parties
will be afforded an opportunity for
written comments and for the oral
presentation of views, data and arguments. In such proceeding, the Commission either will approve the rate or
disapprove the rate and order refund,
with interest, of any amount which has
been determined to be in excess of
those shown to be fair and equitable or
in excess of the rates and charges
which interstate pipelines would be
permitted to charge for providing similar transportation service.
(iii) A Commission order approving
or disapproving a transportation rate
under this paragraph supersedes a rate
determined in accordance with paragraph (b)(1) of this section.
(c) Treatment of revenues. The Commission presumes that all revenues received by an intrastate pipeline in connection with transportation authorized
under § 284.122(a) and computed in accordance with paragraph (b)(1) of this
section have been or will be taken into
account by the appropriate state regulatory agency for purposes of establishing transportation charges by the
intrastate pipeline for service to intrastate customers.
(d) Presumptions. If the intrastate
pipeline is charging a rate computed
pursuant to § 284.123(b)(1), the rate
charged is presumed to be:
(1) Fair and equitable; and
(2) Not in excess of the rates and
charges which interstate pipelines
would be permitted to charge for providing similar transportation service.
(e) Filing requirements. Within 30 days
of commencement of new service, any
intrastate pipeline that engages in
transportation arrangements under
this subpart must file with the Commission a statement that includes the
pipeline’s interstate rates, the rate
election made pursuant to paragraph
(b) of this section, and a description of
how the pipeline will engage in these
transportation arrangements, including operating conditions, such as quality standards and financial viability of
the shipper. If the pipeline changes its
operations, rates, or rate election
under this subpart, it must amend the

statement and file such amendments
not later than 30 days after commencement of the change in operations or the
change in rate election.
(f) Electronic filing of statements, and
related materials—(1) General rule. All
filings made in proceedings initiated
under this part must be made electronically, including rates and charges,
or parts thereof, and material related
thereto,
statements,
and
all
workpapers.
(2) Requirements for signature. All filings must be signed in compliance with
the following:
(i) The signature on a filing constitutes a certification that the contents are true to the best knowledge
and belief of the signer, and that 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 company, governmental authority,
agency, or instrumentality on behalf of
which the filing is made; or,
(C) A representative qualified to
practice before the Commission under
§ 385.2101 of this chapter who possesses
authority to sign.
(iii) All signatures on the filing or
any document included in the filing
must comply, where applicable, with
the requirements in § 385.2005 of this
chapter with respect to sworn declarations or statements and electronic signatures.
(3) Format requirements for electronic
filing. The requirements and formats
for electronic filing are listed in instructions for electronic filing and for
each form. These formats are available
on the Internet at http://www.ferc.gov
and can be obtained at the Federal Energy Regulatory Commission, Public
Reference Room, 888 First Street, NE.,
Washington, DC 20426.
(g) Election of Notice Procedures. (1)
Applicability. An intrastate pipeline filing for approval of rates, a statement
of operating conditions, and any
amendments or modifications thereto
pursuant to this section may use the
notice procedures in this paragraph.
Any intrastate pipeline electing to use
these notice procedures for a filing

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Federal Energy Regulatory Commission
must clearly state its election to use
these procedures in the filing. Such filing is approved and the rates deemed
fair and equitable and not in excess of
the amount that an interstate pipeline
would be permitted to charge for similar transportation service if the requirements in paragraph (g)(8) of this
section have been fulfilled.
(2) Rejection of filing. The Director of
the Office of Energy Market Regulation or his designee shall reject within
7 days of the date of filing a request
which patently fails to comply with
the provisions of paragraph (e) or (f) of
this section, without prejudice to the
intrastate pipeline refiling a complete
application. If such filing was required
by this section, that filing must be
refiled within 14 days of the date of the
rejection.
(3) Publication of notice of filing. The
Secretary of the Commission shall
issue a notice of the filing 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 interventions, initial
comments, final comments, and protests to the filing. The deadline for
interventions and initial comments
shall be 21 days after the date of the
filing or such other date established by
the Secretary of the Commission. The
deadline for final comments and protests shall be 60 days after the date of
the filing or such other date established by the Secretary of the Commission.
(4) Protests. (i) Any person or the
Commission’s staff may file a protest
prior to the deadline for protests.
(ii) Protests shall be filed with the
Commission in the form required by
Part 385 of this chapter including a detailed statement of the protestor’s interest in the filing and the specific reasons and rationale for the objection
and whether the protestor seeks to be
an intervenor.
(5) Effect of protest. If a protest is
filed in accordance with paragraph
(g)(4) of this section, then the intrastate pipeline, the person who filed the
protest, any intervenors and Commission staff shall have 30 days from the
deadline for filing protests established
by the Secretary of the Commission in
accordance with paragraph (g)(3) of

§ 284.123
this section, to resolve the protest, and
to file a withdrawal of the protest pursuant to paragraph (g)(6) of this section. Informal settlement conferences
may be convened by the Director of the
Office of Energy Market Regulation or
his designee during this 30 day period.
If a protest is not withdrawn or dismissed by end of that 30 day period, the
filing shall not be deemed approved
pursuant to this paragraph. Within 60
days from the deadline for filing protests established by the Secretary of
the Commission in accordance with
paragraph (g)(3) of this section the
Commission will establish procedures
to resolve the proceeding.
(6) Withdrawal of protests. The
protestor may withdraw a protest by
submitting written notice of withdrawal to the Secretary of the Commission pursuant to § 385.216 of this chapter and serving a copy on the intrastate pipeline, any intervenors, and
any person who has filed a motion to
intervene in the proceeding.
(7) Amendments or modifications to tariff records prior to approval. An intrastate pipeline may file to amend or
modify a tariff record contained in the
initial filing pursuant to the procedures under this paragraph (g) which
has not yet been approved pursuant to
paragraph (g)(8) of this section. Such
filing will toll the notice period established in paragraph (g)(3) of this section and the Secretary of the Commission will issue a notice establishing
new deadlines for comments and protests for the entire filing pursuant to
paragraph (g)(3).
(8) Final approval. (i) If no protest is
filed within the time allowed by the
Secretary of the Commission under
paragraph (g)(3) of this section, the filing by the intrastate pipeline is approved, effective on the date proposed
in the filing requesting approval unless
the intrastate pipeline withdraws,
amends, or modifies its filing or the filing is rejected pursuant to paragraph
(g)(2) of this section.
(ii) If any protest is filed within the
time allowed by the Secretary of the
Commission under paragraph (g)(3) of
this section and is subsequently withdrawn before the end of the 30-day reconciliation period provided by paragraph (g)(5) of this section, the filing

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§ 284.124

18 CFR Ch. I (4–1–14 Edition)

by the intrastate pipeline is approved
effective on the date proposed in the
filing requesting approval unless the
intrastate pipeline withdraws, amends,
or modifies its filing or the filing is rejected pursuant to paragraph (g)(2) of
this section.
(9) Periodic rate review. Rates of pipelines approved by the Commission pursuant to this paragraph are required to
be periodically reviewed.
(i) Any intrastate pipeline with rates
so approved must file an application
for rate approval under this section on
or before the date five years following
the date it filed the application for authorization of rates pursuant to this
paragraph. Any Hinshaw pipeline that
has been a granted a blanket certificate under § 284.224 of this chapter and
with rates approved pursuant to this
paragraph must on or before the date
five years following the date it filed
the application for authorization of the
rates pursuant to this paragraph either
file under this section cost, throughput, revenue and other data, in the
form specified in § 154.313 of this chapter, to allow the Commission to determine whether any change in rates is required pursuant to section 5 of the Natural Gas Act or an application for rate
authorization pursuant to this section.
(ii) An intrastate pipeline with rates
approved pursuant to the rate election
in paragraph (b)(1) of this section that
remain unchanged during the five-year
review period which were approved
based on then effective state rates may
file a certification with the Commission pursuant to this paragraph (g)
that the rates continue to comply on
the same basis with the requirements
set forth in paragraph (b)(1) of this section. Such certification of rates will
meet the periodic rate review requirement set forth in this paragraph (g)(9)
unless the Commission determines that
further proceedings concerning the
rates are appropriate.
(iii) If the state rate used pursuant to
paragraph (b)(1) of this section for approval of a rate pursuant to this paragraph (g) is changed, not later than 30
days after that changed rate becomes
effective, the intrastate pipeline must
file a new rate election pursuant to
paragraph (b) of this section.

(10) Withdrawal of filing prior to approval. A pipeline may, pursuant to
paragraph (h) of this section, withdraw
in its entirety a filing made pursuant
to paragraph (g) that has not been approved by filing a withdrawal motion
with the Commission. A filing that is
withdrawn will not fulfill the requirements under paragraph (g)(8) of this
section.
(h) Withdrawal of filing. A pipeline
may withdraw in its entirety a filing
pursuant to this section that has not
been approved by filing a withdrawal
motion with the Commission.
(1) The withdrawal motion must
state that any amounts collected subject to refund in excess of the rates authorized the Commission will be refunded with interest calculated and a
refund report filed with the Commission in accordance with § 154.501 of this
chapter. The refunds must be made
within 60 days of the date the withdrawal motion becomes effective.
(2) The withdrawal motion will become effective, and the filing will be
deemed withdrawn at the end of 15 days
from the date of filing of the withdrawal motion, if no order disallowing
the motion is issued within that period. If an answer in opposition is filed
within the 15-day period, the withdrawal is not effective until an order
accepting the withdrawal is issued.
[44 FR 52184, Sept. 7, 1979, as amended at 44
FR 66791, Nov. 21, 1979; Order 394, 49 FR 35364,
Sept. 7, 1984; Order 436, 50 FR 42496, Oct. 18,
1985; 50 FR 52276, Dec. 23, 1985; Order 581, 60
FR 53073, Oct. 11, 1995; Order 714, 73 FR 57535,
Oct. 3, 2008; Order 781, 78 FR 45862, July 30,
2013]

§ 284.124

Terms and conditions.

Contracts for the transportation of
natural gas authorized under this subpart shall provide that the transportation arrangement is subject to the
provisions of this subpart.
§ 284.125

[Reserved]

§ 284.126

Reporting requirements.

(a) Notice of bypass. An intrastate
pipeline that provides transportation
(except storage) under § 284.122 to a customer that is located in the service
area of a local distribution company

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Federal Energy Regulatory Commission
and will not be delivering the customer’s gas to that local distribution
company, must file with the Commission within thirty days after commencing such transportation, a statement that the interstate pipeline has
notified the local distribution and the
local distribution company’s appropriate state regulatory agency in writing of the proposed transportation
prior to commencement.
(b) Form No. 549D, Quarterly Transportation and Storage Report of Intrastate Natural Gas and Hinshaw Pipelines.
(1) Each intrastate pipeline must use
Form No. 549D to file a quarterly report with the Commission and the appropriate state regulatory agency that
contains, for each transportation and
storage service provided during the
preceding calendar quarter under
§ 284.122, the following information on
each transaction, aggregated by contract:
(i) The full legal name, and identification number, of the shipper receiving the service, including whether
there is an affiliate relationship between the pipeline and the shipper;
(ii) The type of service performed
(i.e., firm or interruptible transportation, storage, or other service);
(iii) The rate charged under each contract, specifying the rate schedule/
name of service and docket where the
rates were approved. The report should
separately state each rate component
set forth in the contract (i.e., reservation, usage, and any other charges);
(iv) The primary receipt and delivery
points covered by the contract, identified by the list of points that the pipeline has published with the Commission, which shall include the industry
common code for each point where one
has already been established;
(v) The quantity of natural gas the
shipper is entitled to transport, store,
or deliver under each contract;
(vi) The duration of the contract,
specifying the beginning and (for firm
contracts only) ending month and year
of the current agreement;
(vii) Total volumes transported,
stored, injected or withdrawn for the
shipper; and
(viii) Annual revenues received for
each shipper, excluding revenues from
storage services. The report should sep-

§ 284.141
arately state revenues received under
each component, and need only be reported every fourth quarter.
(2) The quarterly Form No. 549D report for the period January 1 through
March 31 must be filed on or before
June 1. The quarterly report for the period April 1 through June 30 must be
filed on or before September 1. The
quarterly report for the period July 1
through September 30 must be filed on
or before December 1. The quarterly report for the period October 1 through
December 31 must be filed on or before
March 1.
(3) Each Form No. 549D report must
be filed as prescribed in § 385.2011 of this
chapter as indicated in the General Instructions and Data Dictionary set out
in the quarterly reporting form. Each
report must be prepared and filed in
conformance with the Commission’s
software or XML Schema, eTariff filing
structure, and reporting guidance, so
as to be posted and available for
downloading from the FERC Web site
(http://www.ferc.gov). One copy of the
report must be retained by the respondent in its files.
(4) Intrastate pipelines filing Form
No. 549D are no longer required to file
Form No. 549—Intrastate Pipeline Annual Transportation Report after their
March 31, 2011 filing.
[Order 436, 50 FR 42496, Oct. 18, 1985, as
amended at 50 FR 52276, Dec. 23, 1985; Order
636, 57 FR 13317, Apr. 16, 1992; Order 581, 60 FR
53073, Oct. 11, 1995; 71 FR 38066, July 5, 2006;
75 FR 29419, May 26, 2010; 75 FR 80697, Dec. 23,
2010; Order 757, 77 FR 4224, Jan. 27, 2012]

Subpart D—Certain Sales by
Intrastate Pipelines
SOURCE: 44 FR 12409, Mar. 7, 1979, unless
otherwise noted. Redesignated at 44 FR 52184,
Sept. 7, 1979.

§ 284.141

Applicability.

This subpart implements section
311(b) of the NGPA and applies to certain sales of natural gas by intrastate
pipelines to:
(a) Interstate pipelines; and
(b) Local distribution companies
served by interstate pipelines.

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§ 284.142

18 CFR Ch. I (4–1–14 Edition)

§ 284.142 Sales by intrastate pipelines.
Any intrastate pipeline may, without
prior Commission approval, sell natural gas to any interstate pipeline or
any local distribution company served
by an interstate pipeline. The rates
charged by an intrastate pipeline pursuant to this subpart may not exceed
the price for gas as negotiated in the
contract, plus a fair and equitable
transportation rate as determined in
accordance with § 284.123.
[Order 581, 60 FR 53073, Oct. 11, 1995]

§§ 284.143–284.148

[Reserved]

Subparts E–F [Reserved]
Subpart G—Blanket Certificates
Authorizing Certain Transportation by Interstate Pipelines
on Behalf of Others and Services by Local Distribution
Companies
§ 284.221 General rule; transportation
by interstate pipelines on behalf of
others.
(a) Blanket certificate. Any interstate
pipeline may apply under this section
for a single blanket certificate authorizing the transportation of natural gas
on behalf of others in accordance with
this subpart. A certificate of public
convenience and necessity under this
section is granted pursuant to section 7
of the Natural Gas Act.
(b) Application procedure. (1) An application for a blanket certificate under
this section must be filed electronically. The format for the electronic application filing can be obtained at the
Federal Energy Regulatory Commission, Division of Information Services,
Public Reference and Files Maintenance Branch, Washington, DC 20426,
and must include:
(i) The name of the interstate pipeline; and
(ii) A statement by the interstate
pipeline that it will comply with the
conditions in paragraph (c) of this section.
(2) Upon receipt of an application
under this section, the Commission
will conduct a hearing pursuant to section 7(c) of the Natural Gas Act and
§ 157.11 of this chapter and, if required

by the public convenience and necessity, will issue to the interstate pipeline a blanket certificate authorizing
such pipeline company to transport
natural gas, as provided under this subpart.
(c) General conditions. Any blanket
certificate under this subpart is subject
to the conditions of subpart A of this
part.
(d) Pre-grant of abandonment. (1) Except as provided in paragraph (d)(2) of
this section, abandonment of transportation services is authorized pursuant
to section 7(b) of the Natural Gas Act
upon the expiration of the contractual
term or upon termination of each individual transportation arrangement authorized under a certificate granted
under this section.
(2) Paragraph (d)(1) of this section
does not apply if the individual transportation arrangement is for firm
transportation under a contract with a
term of one year or more, and the firm
shipper:
(i) Exercises any contractual right to
continue such service; or
(ii) Gives notice that it wants to continue its transportation arrangement
and will match the longest term and
highest rate for its firm service, up to
the applicable maximum rate under
§ 284.10, offered to the pipeline during
the period established in the pipeline’s
tariff for receiving such offers by any
other person desiring firm capacity,
and executes a contract matching the
terms of any such offer. To be eligible
to exercise this right of first refusal,
the firm shipper’s contract must be for
service for twelve consecutive months
or more at the applicable maximum
rate for that service, except that a contract for more than one year, for a
service which is not available for 12
consecutive months, would be subject
to the right of first refusal.
(e) Availability of regular certificates.
This subpart does not preclude an
interstate pipeline from applying for
an individual certificate of public convenience and necessity for any particular transportation service.
(f) Cross references. (1) Any local distribution company served by an interstate pipeline may apply for a blanket
certificate to perform certain services
under § 284.224 of this chapter.

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Federal Energy Regulatory Commission
(2) Any interstate pipeline may apply
under subpart F of part 157 of this
chapter for a blanket certificate to
construct or acquire and operate certain natural gas facilities that are necessary to provide transportation under
§ 284.223.
(3) Section 157.208 of this chapter provides automatic authorization for the
construction, acquisition, operation,
replacement, and miscellaneous rearrangement of certain eligible facilities,
as defined in § 157.202 of this chapter,
subject to limits specified in § 157.208(d)
of this chapter and § 284.11.
(4) Authorization for delivery points
is subject to the automatic authorization under § 157.211(a)(1) and the prior
notice procedures under § 157.211(a)(2)
and § 157.205.
(g) Flexible receipt point authority. (1)
An interstate pipeline authorized to
transport gas under a certificate granted under this section may, at the request of the shipper and without prior
notice:
(i) Reduce or discontinue receipts of
natural gas at a particular receipt
point from a supplier; and
(ii) Commence or increase receipts at
a particular receipt point from that
supplier or any other supplier.
(2) The total natural gas volumes received by the interstate pipeline following any such reassignment under
this paragraph must not exceed the
total volume of natural gas that the
interstate pipeline may transport on
behalf of the shipper under a certificate granted under this section.
(3) The receipt points to which natural gas volumes may be reassigned
under this paragraph include eligible
facilities under § 157.208 which are authorized to be constructed and operated pursuant to a certificate issued
under subpart F of part 157 of this
chapter.
(h) Flexible delivery point authority. (1)
An interstate pipeline authorized to
transport gas under a certificate issued
pursuant to this section may at the request of the shipper and without prior
notice:
(i) Reduce or discontinue deliveries
of natural gas to a particular delivery
point; and
(ii) Commence or increase deliveries
at a particular delivery point.

§ 284.224
(2) The total natural gas volumes delivered by the interstate pipeline following any such reassignment must
not exceed the total amount of natural
gas that the interstate pipeline is authorized under a certificate issued pursuant to this section to transport on
behalf of the shipper.
(3) The delivery points to which natural gas volumes may be reassigned
under this paragraph include facilities
authorized to be constructed and operated only under § 157.211 and the prior
notice conditions of § 157.205 of this
chapter.
[Order 436, 50 FR 42496, Oct. 18, 1985, as
amended by Order 433–A, 51 FR 43607, Dec. 3,
1986; Order 636, 57 FR 13317, Apr. 16, 1992;
Order 636–A, 57 FR 36217, Aug. 12, 1992; Order
581, 60 FR 53073, Oct. 11, 1995; Order 603, 64 FR
26610, May 14, 1999; Order 637, 65 FR 10222,
Feb. 25, 2000; Order 637–A, 65 FR 35765, June
5, 2000]

§ 284.222

[Reserved]

§ 284.223 Transportation by interstate
pipelines on behalf of shippers.
Subject to the provisions of this subpart and the conditions of Subpart A of
this part, any interstate pipeline issued
a certificate under § 284.221 is authorized, without prior notice to or approval by the Commission, to transport
natural gas for any duration for any
shipper for any end-use by that shipper
or any other person.
[Order 436, 50 FR 42497, Oct. 18, 1985; 50 FR
45908, Nov. 5, 1985, as amended at 50 FR 52276,
Dec. 23, 1985; Order 537, 56 FR 50245, Oct. 4,
1991; Order 581, 60 FR 53074, Oct. 11, 1995;
Order 637, 65 FR 10222, Feb. 25, 2000]

§ 284.224 Certain transportation and
sales by local distribution companies.
(a) Applicability. This section applies
to local distribution companies served
by interstate pipelines, including persons who are not subject to the jurisdiction of the Commission, by reason of
section 1(c) of the Natural Gas Act.
(b) Blanket certificate—(1) Any local
distribution company served by an
interstate pipeline or any Hinshaw
pipeline may apply for a blanket certificate under this section.
(2) Upon application for a certificate
under this section, a hearing will be
conducted under section 7(c) of the

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§ 284.224

18 CFR Ch. I (4–1–14 Edition)

Natural Gas Act, § 157.11 of this chapter, and subpart H of part 385 of this
chapter.
(3) The Commission will grant a blanket certificate to such local distribution company or Hinshaw pipeline
under this section, if required by the
present or future public convenience
and necessity. Such certificate will authorize the local distribution company
to engage in the sale or transportation
of natural gas that is subject to the
Commission’s jurisdiction under the
Natural Gas Act, to the same extent
that and in the same manner that
intrastate pipelines are authorized to
engage in such activities by subparts C
and D of this part, except as otherwise
provided in paragraph (e)(2) of this section.
(c) Application procedure. Applications
for blanket certificates must be accompanied by the fee prescribed in § 381.207
of this chapter or a petition for waiver
pursuant to § 381.106 of this chapter,
and shall state:
(1) The exact legal name of applicant;
its principal place of business; whether
an individual, partnership, corporation
or otherwise; the state under the laws
of which it is organized or authorized;
the agency having jurisdiction over
rates and tariffs; and the name, title,
and mailing address of the person or
persons to whom communications concerning the application are to be addressed;
(2) The volumes of natural gas which:
(i) Were received during the most recent 12-month period by the applicant
within or at the boundary of a state,
and
(ii) Were exempt from the Natural
Gas Act jurisdiction of the Commission
by reason of section 1(c) of the Natural
Gas Act, if any;
(3) The total volume of natural gas
received by the applicant from all
sources during the same time period;
(4) Citation to all currently valid
declarations of exemption issued by the
Commission under section 1(c) of the
Natural Gas Act if any;
(5) A statement that the applicant
will comply with the conditions in
paragraph (e) of this section;
(6) A form of notice suitable for publication in the FEDERAL REGISTER, as
contemplated by § 157.9 of this chapter,

which will briefly summarize the facts
contained in the application in such
way as to acquaint the public with its
scope and purpose; and
(7) A statement of the methodology
to be used in calculating rates for services to be rendered, setting forth any
elections under § 284.123 or paragraph
(e)(2) of this section and a sample calculation employing the methodology
using current data. If a rate election is
made under paragraph (e)(2) of this section, this statement shall contain the
following items (reflecting the 12month period used to justify costs in
the most recently approved rate case
conducted by an appropriate state regulatory agency):
(i) Total operating revenues,
(ii) Purchase gas costs,
(iii) Distribution costs (which include
that portion of the common costs allocated to the distribution function),
(iv) The volume throughput of the
system categorized by sales, transportation and exchange service, and
(v) A study which determines transportation costs on a unit revenue basis
in accordance with paragraph (e)(2) of
this section, including any supporting
work papers.
(d) Effect of certificate. (1) Any certificate granted under this section will authorize the certificate holder to engage
in transactions of the type authorized
by subparts C and D of this part.
(2) Acceptance of a certificate or conduct of an activity authorized thereunder will:
(i) Not impair the continued validity
of any exclusion under section 1(c) of
the Natural Gas Act which may be applicable to the certificate holder, and
(ii) Not subject the certificate holder
to the Natural Gas Act jurisdiction to
the Commission except to the extent
necessary to enforce the terms and
conditions of the certificate.
(e) General conditions. (1) Except as
provided in paragraph (e)(2) of this section, any transaction authorized under
a blanket certificate is subject to the
same rates and charges, terms and conditions, and reporting requirements
that apply to a transaction authorized
for an intrastate pipeline under subparts C and D of this part.
(2) Rate election. If the certificate
holder does not have any existing rates

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Federal Energy Regulatory Commission
on file with the appropriate state regulatory agency for city-gate service, the
certificate holder may make the rate
election specified in § 284.123(b)(1) only
if:
(i) The certificate holder’s existing
rates are approved by an appropriate
state regulatory agency,
(ii) The rates and charges for any
transportation are computed by using
the portion of the certificate holder
weighted average annual unit revenue
(per MMBtu) generated by existing
rates which is attributable to the cost
of gathering, treatment, processing,
transportation, delivery or similar
service (including storage service), and
(iii) The Commission has approved
the method for computing rates and
charges specified in paragraph (e)(2)(ii)
of this section.
(3) Volumetric test. The volumes of
natural gas sold or assigned under the
blanket certificate may not exceed the
volumes obtained from sources other
than interstate supplies.
(4) Filings. Any filings made with the
Commission that report individual
transactions shall reference the docket
number of the proceeding in which the
blanket certificate was granted.
(5) Filing Requirements. Filings under
this section must comply with the requirements of § 284.123 (f) of this part.
The tariff filing requirements of Part
154 of this chapter shall not apply to
transactions authorized by the blanket
certificate.
(f) Pregrant of abandonment. Abandonment of transportation services or
sales, pursuant to section 7(b) of the
Natural Gas Act, is authorized upon
the expiration of the contractual term
of each individual arrangement authorized by a blanket certificate under this
section.
(g) Hinshaw pipeline without blanket
certificate. A Hinshaw pipeline that
does not obtain a blanket certificate
under this section is not authorized to
sell or transport natural gas as an
intrastate pipeline under subparts C
and D of this part.
(h) Definitions. For the purposes of
this section:
(1) A Hinshaw pipeline means any person engaged in the transportation of
natural gas which is not subject to the
jurisdiction of the Commission under

§ 284.227
the Natural Gas Act solely by reason of
section 1(c) of the Natural Gas Act.
(2) Interstate supplies means any natural gas obtained, either directly or indirectly, from:
(i) The system supplies of an interstate pipeline, or
(ii) Natural gas reserves which were
committed or dedicated to interstate
commerce on November 8, 1978.
[45 FR 1875, Jan. 9, 1980, as amended by Order
319, 48 FR 34891, Aug. 1, 1983; 48 FR 35635,
Aug. 5, 1983; Order 433, 50 FR 40346, Oct. 3,
1985. Redesignated and amended by Order 436,
50 FR 42497, 42498, Oct. 18, 1985; Order 478, 52
FR 28467, July 30, 1987; Order 581, 60 FR 53074,
Oct. 11, 1995; Order 714, 73 FR 57535, Oct. 3,
2008]

§§ 284.225–284.226

[Reserved]

§ 284.227 Certain transportation
intrastate pipelines.

(a) Blanket certificate. A blanket certificate shall issue under this section
to any intrastate pipeline that receives
natural gas produced in adjacent Federal waters or onshore or offshore in an
adjacent state, provided that:
(1) The gas must be received by the
intrastate pipeline from a gatherer or
other intrastate pipeline;
(2) The intrastate pipeline delivers
the gas in the intrastate pipeline’s
state of operation to an end user or another intrastate pipeline; and
(3) The gas ultimately used by an end
user in the same state.
(b) Effective date. If an intrastate
pipeline is providing a transportation
service described in paragraph (a) of
this section as of February 1, 1992, and
the service is not a qualifying service
under § 284.122 of subpart C of this part,
a blanket certificate shall issue under
paragraph (a) of this section and become effective as of February 1, 1992. If
an intrastate pipeline is not providing
a transportation service described in
paragraph (a) of this section as of February 1, 1992 the blanket certificate
shall issue and become effective on the
date that the intrastate pipeline commences such a service that is not a
qualifying service under § 284.122 of subpart C of this part.
(c) Acceptance of certificate. An intrastate pipeline shall be deemed to have
accepted a blanket certificate under

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§ 284.261

18 CFR Ch. I (4–1–14 Edition)

this section if it continues after February 1, 1992, a service described in
paragraph (a) of this section that is not
a qualifying service under § 284.122 of
subpart C or commences such a service
after November 4, 1991.
(d) Terms and conditions. An intrastate pipeline’s blanket certificate
transportation authority under this
section is subject to its compliance
with all terms and conditions of subpart C of this part, except that service
under this section does not have to be
on behalf of an interstate pipeline or
local distribution company served by
an interstate pipeline.
(e) Pregrant of abandonment. Abandonment of transportation services,
pursuant to section 7(b) of the Natural
Gas Act, is authorized upon the expiration of the contractual term of each individual arrangement authorized by a
blanket certificate under this section.
(f) Effect of certificate. Acceptance of a
certificate issued under this section or
conduct of activity authorized under
this section will not subject the certificate holder to the Natural Gas Act jurisdiction of the Commission except to
the extent necessary to enforce the
terms and conditions of the certificate.
[Order 537, 56 FR 50246, Oct. 4, 1991, as amended by Order 544, 57 FR 46501, Oct. 9, 1992;
Order 581, 60 FR 53074, Oct. 11, 1995]

Subpart H [Reserved]
Subpart I—Emergency Natural
Gas Sale, Transportation, and
Exchange Transactions
SOURCE: Order 449, 51 FR 9187, Mar. 18, 1986,
unless otherwise noted.

§ 284.261 Purpose.
This subpart exempts a person who
engages in an emergency natural gas
transaction, as defined for purposes of
this subpart, in interstate commerce
from the certificate requirements of
section 7 of the Natural Gas Act and
from the conditions of § 284.10, except
as provided in § 284.266, and §§ 284.7–284.9
and §§ 284.11–284.13 of subpart A of this
chapter.
§ 284.262 Definitions.
For purposes of this subpart:

Emergency means:
(1) Any situation in which an actual
or expected shortage of gas supply or
capacity would require an interstate
pipeline company, intrastate pipeline,
local distribution company, or Hinshaw
pipeline to curtail deliveries of gas or
provide less than the projected level of
service to any pipeline customer, including any situation in which additional supplies or capacity are necessary to ensure a pipeline’s contracted
level of service to any customer, but
not including any situation in which
additional supplies or capacity are
needed to increase the contracted level
of service to an existing customer or to
provide service to a new customer; or
(2) A sudden unanticipated loss of
natural gas supply or capacity; or
(3) An anticipated loss of natural gas
supply or capacity due to a foreseeable
facility outage resulting from a landslide or riverbed erosion or other natural forces beyond the participant’s
control. Participants may seek a temporary certificate under §§ 157.17 of this
chapter if the facilities to remedy the
emergency cannot be constructed automatically under § 2.55(b) or § 157.208(a)
of this chapter.
(4) A situation in which the participant, in good faith, determines that
immediate action is required or is reasonably anticipated to be required for
protection of life or health or for maintenance of physical property.
Emergency does not mean any situation resulting from a failure by any
person to transport natural gas under
subpart B, C, or G of this part.
Projected level of service means the
level of gas volumes to be delivered by
the company for each customer and additional gas volumes needed by a customer due solely to a weather-induced
increase in requirements.
Emergency natural gas means natural
gas sold, transported, or exchanged in
an emergency natural gas transaction.
Emergency natural gas transaction
means the sale, transportation, or exchange of natural gas (including the
construction and operation of necessary facilities) conducted pursuant to
this subpart, that is:
(1) Necessary to alleviate an emergency; and

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Federal Energy Regulatory Commission
(2) Not anticipated to extend for
more than 60 days in duration.
Emergency facilities means any facilities necessary to alleviate the emergency within the time frame established in § 284.264(b). Participants can
seek permanent authority to operate
the emergency facilities either under
the temporary certificate provisions of
§ 157.17 of this chapter or the prior notice provisions of § 157.208(b) of this
chapter.
Participant means any first seller,
interstate pipeline, intrastate pipeline,
local distribution company or Hinshaw
pipeline that participates in an emergency natural gas transaction under
this subpart.
Recipient means:
(1) In the case of a sale of emergency
natural gas, the purchaser of such gas;
or
(2) In the case of a transportation or
exchange of natural gas when there is
no sale of emergency natural gas under
this subpart, the participant who receives the gas.
Hinshaw pipeline means a pipeline
that is exempt from the Natural Gas
Act jurisdiction of the Commission by
reason of section 1(c) of the Natural
Gas Act.
[Order 603, 64 FR 26610, May 14, 1999]

§ 284.263 Exemption from section 7 of
Natural Gas Act and certain regulatory conditions.
Any participant that engages in an
emergency natural gas transaction
conducted in accordance with this subpart is exempt from the requirements
of section 7 of the Natural Gas Act and
the conditions of § 284.10, except as provided in § 284.266, and from the requirements of §§ 284.7–284.9 and §§ 284.11–284.13
of subpart A of this part. Participation
in any emergency natural gas transaction will not subject any participant
to the jurisdiction of the Commission
under section 7 of the Natural Gas Act
except to the extent such transaction
is provided for in this subpart.
§ 284.264

Terms and conditions.

(a) General conditions. (1) A participant must make every reasonable attempt to minimize use of emergency
natural gas transactions.

§ 284.264
(2) Before deliveries of emergency
natural gas commence, a responsible
official of the recipient must provide
any participants in the emergency natural gas transaction sufficient information to enable the participants to form
a good faith belief that an emergency
exists or is imminent.
(3) No participant may engage in an
emergency natural gas transaction if
its participation will adversely affect
service to its existing customers.
(4) A participant may not sell emergency natural gas if, during the term of
the sale, it is also purchasing emergency natural gas under this subpart,
except when natural gas is being sold
to relieve an emergency on another,
separate segment of the participant’s
system.
(5) An interstate pipeline, acting in
an emergency gas transaction as a
broker or agent on behalf of another
participant or any other person, may
not receive compensation for such brokerage or agency service.
(6) A recipient of emergency natural
gas that directly benefits from the
service must:
(i) Provide line loss and the fuel volumes required to transport the emergency natural gas; and
(ii) Pay for the facilities required to
be constructed to conduct the emergency natural gas transaction.
(b) Duration—1) Emergency sale or
transportation. An emergency natural
gas transaction is limited to 60 consecutive calendar days, except that
such transaction may be continued for
an additional 60 consecutive days if:
(i) Fifteen days prior to the end of
the initial 60-day period, the recipient
of emergency natural gas files a petition that:
(A) Describes fully the continued
emergency,
(B) Requests a waiver of the initial
60-day limitation and permission for an
extension of the transaction for an additional 60 days; and
(ii) Within the 15-day period, the
Commission does not, by order, prohibit continuation of the emergency
natural gas transaction for the additional 60-day period.
(2) Redelivery in emergency exchange.
The redelivery of emergency natural

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§ 284.265

18 CFR Ch. I (4–1–14 Edition)

gas received under an exchange arrangement must occur within 180 consecutive days following the termination of deliveries of the emergency
natural gas.
§ 284.265 Cost recovery by interstate
pipeline.
(a) Except as provided in paragraph
(b), an interstate pipeine that provides
emergency natural gas, whether from
its system supply or by special purchase, must directly assign the emergency gas costs to the recipient.
(b) If an interstate pipeline cannot
identify individual recipients, the
interstate pipeline must roll the emergency gas costs into its general system
supply costs.
§ 284.266 Rates and charges for interstate pipelines.
(a) Transportation rates—1) Rate on
file. If an interstate pipeline has on file
with the Commission an effective
transportation rate schedule that conforms to § 284.10, it must use volumetric rates based upon fully-allocated
costs and adjusted only for time and
distance.
(2) Rate not on file. If an interstate
pipeline does not have on file with the
Commission a transportation rate
schedule that conforms to § 284.10, it
may:
(i) Base its rates upon the methodology used in designing rates to recover the transmission and related
storage costs included in one of its
then-effective sales rates schedules; or
(ii) Use the rates contained in one of
its transportation rate schedules on
file with the Commission which the
interstate pipeline determines covers
service comparable to transportation
service authorized under this subpart.
(b) Interstate pipeline costs excluded
from rate base. An interstate pipeline
may not include in its jurisdictional
rate base any cost associated with facilities installed and operated in connection with an emergency natural gas
transaction unless a certificate of public convenience and necessity has been
issued authorizing the costs. Absent a
certificate, such facilities may only be
used to conduct emergency natural gas

transactions or transactions authorized under section 311 of the NGPA.
[Order 449, 51 FR 9187, Mar. 18, 1986, as
amended by Order 581, 60 FR 53074, Oct. 11,
1995]

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

§ 284.270 Reporting requirements.
(a) Forty-eight hour report for sales
transactions. Within 48 hours after deliveries of emergency natural gas commence, the purchasing participant
must notify the Commission by email,
facsimile or other written report of the
sale, stating, in the following sequences:
(1) That the report is submitted pursuant to § 284.270 for an emergency natural gas transaction;

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

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

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§ 284.271

18 CFR Ch. I (4–1–14 Edition)

(8) The information supplied to any
other
participant
pursuant
to
§ 284.264(a)(2); and
(9) A statement that the emergency
natural gas transaction was carried out
in accordance with this subpart, and
that identifies the circumstances demonstrating an emergency existed or
was imminent so as to require an emergency natural gas transaction.
[Order 46, 44 FR 52184, Sept. 7, 1979, as amended by Order 756, 77 FR 4894, Feb. 1, 2012]

§ 284.271

Waiver.

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

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

§ 284.281

Applicability.

This subpart applies to any interstate pipeline that offers transportation service under subpart B or G of
this part.
§ 284.282

Definitions.

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

§ 284.283

Point of unbundling.

A sales service is unbundled when gas
is sold at a point before it enters a
mainline system, at an entry point to a
mainline system from a production

area, or at an intersection with another pipeline system.
§ 284.284 Blanket
certificates
unbundled sales services.

(a) Authorization. An interstate pipeline that offers transportation service
under subpart B or G of this part is
granted a blanket certificate of public
convenience and necessity pursuant to
section 7 of the Natural Gas Act authorizing it to provide unbundled firm
or interruptible sales in accordance
with the provisions of this section.
(b) Conversion to unbundled firm sales
service and firm transportation service.
On the effective date of the pipeline’s
blanket certificate for unbundled sales
services under paragraph (a) of this
section, firm sales entitlements under
any firm sales service agreement for a
bundled sales service are converted to
an equivalent amount of unbundled
firm sales service and an equivalent
amount of unbundled firm transportation service.
(c) Conversion to unbundled interruptible sales service and interruptible transportation service. On the effective date
of the pipeline’s blanket certificate for
unbundled sales services under paragraph (a) of this section, interruptible
sales volumes under any interruptible
sales service agreement for a bundled
sales service are converted to an equivalent amount of unbundled sales service and an equivalent amount of
unbundled interruptible transportation
service.
(d)
A
pipeline
that
provides
unbundled sales service under this section may serve as an agent of the sales
customer to arrange for any pipelineprovided service necessary to deliver
gas to the customer.
(e) Small customer cost-based rate. A
pipeline that provided bundled sales
service to a small customer before the
effective date of the blanket certificate
granted in paragraph (a) of this section
is required to offer a sales service to
that customer at a cost-based rate for
one year from the effective date of the
certificate. The obligation to sell at
the cost-based rate expires one year

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Federal Energy Regulatory Commission
after the effective date of the certificate.
[Order 636, 57 FR 13318, Apr. 16, 1992, as
amended by Order 636–A, 57 FR 36218, Aug. 12,
1992; Order 581, 60 FR 53074, Oct. 11, 1995]

§ 284.285 Pregrant of abandonment of
unbundled sales services.
Abandonment of unbundled sales
services is authorized pursuant to section 7(b) of the Natural Gas Act upon
the expiration of the contractual term
or upon termination of each individual
sales arrangement authorized under
§ 284.284.
§ 284.286 Standards of conduct
unbundled sales service.

for

(a) To the maximum extent practicable, the pipeline must organize its
unbundled sales and transportation operating employees so that they function independently of each other.
(b) The pipeline must conduct its
business to conform to the requirements set forth in § 284.7(b)(2) and
§ 284.9(b)(2) with respect to the equality
of service by not giving shippers of gas
sold by the pipeline any preference
over shippers of gas sold by any other
merchant in matters relating to part
284 transportation.
(c) The pipeline must comply with
part 358 by considering its unbundled
sales operating employees as an operational unit which is the functional
equivalent of a marketing affiliate.
(d) The pipeline must comply with
§ 250.16 of this chapter by considering
its unbundled sales operating employees as an operational unit which is the
functional equivalent of a marketing
affiliate.
(e)
A
pipeline
that
provides
unbundled sales service under § 284.284
must have tariff provisions on file with
the Commission indicating how the
pipeline is complying with the standards of this section.
[Order 636, 57 FR 13318, Apr. 16, 1992, as
amended by Order 566, 59 FR 32899, June 27,
1994; Order 581, 60 FR 53074, Oct. 11, 1995;
Order 2004, 68 FR 69157, Dec. 11, 2003]

§ 284.287 Implementation and effective
date.
(a) Prior to offering any sales service
under this subpart J, a pipeline must

§ 284.288
file revised tariff sheets incorporating
the provisions of this subpart J.
(b) A blanket certificate issued under
§ 284.284 will be effective on the effective date (as approved by the Commission) of the tariff sheets implementing
service under that certificate.
[Order 581, 60 FR 53074, Oct. 11, 1995]

§ 284.288 Code
of
conduct
unbundled sales service.

(a) To the extent Seller engages in
reporting of transactions to publishers
of electricity or natural gas indices,
Seller must provide accurate and factual information, and not knowingly
submit false or misleading information
or omit material information to any
such publisher, by reporting its transactions in a manner consistent with
the procedures set forth in the Policy
Statement on Natural Gas and Electric
Price Indices, issued by the Commission
in Docket No. PL03–3–000 and any clarifications thereto. Seller must notify
the Commission as part of its FERC
Form No. 552 annual reporting requirement in § 260.401 of this chapter whether it reports its transactions to publishers of electricity and natural gas
indices. In addition, Seller must adhere
to any other standards and requirements for price reporting as the Commission may order.
(b)
A
pipeline
that
provides
unbundled natural gas sales service
under § 284.284 shall retain, for a period
of five years, all data and information
upon which it billed the prices it
charged for natural gas it sold pursuant to its market based sales certificate or the prices it reported for use in
price indices.
[Order 644, 68 FR 66336, Nov. 26, 2003, as
amended by Order 673, 71 FR 9716, Feb. 27,
2006; Order 677, 71 FR 30287, May 26, 2006; 73
FR 1032, Jan. 4, 2008]

Subpart K—Transportation of Natural Gas on the Outer Continental Shelf by Interstate Natural Gas Pipelines on Behalf
of Others
SOURCE: Order 509, 53 FR 50938, Dec. 19,
1988, unless otherwise noted.

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§ 284.301
§ 284.301

18 CFR Ch. I (4–1–14 Edition)
Applicability.

This subpart implements section 5 of
the Outer Continental Shelf Land Act
(OCSLA) and applies to any jurisdictional interstate natural gas pipeline
that holds a certificate under section 7
of the Natural Gas Act (NGA) authorizing the construction and operation of
facilities on the Outer Continental
Shelf (OCS).

Subpart L—Certain Sales for
Resale by Non-interstate Pipelines
§ 284.401

Definitions.

Affiliated marketer. For purposes of
this subpart, an ‘‘affiliated marketer’’
is a person engaged in the ‘‘marketing’’
of natural gas that is an ‘‘affiliate’’ of
an interstate pipeline as those terms
are defined in § 161.2 of this chapter.
[Order 547, 57 FR 57959, Dec. 8, 1992]

§ 284.302

Definitions.

For the purposes of this subpart, the
term:
(a) Outer Continental Shelf (OCS) has
the same meaning as found in section
2(a) of the OCSLA (43 U.S.C. 1331(a));
and
(b) OCS pipeline means an interstate
natural gas pipeline that holds a certificate under section 7 of the NGA authorizing the construction and operation of facilities on the OCS, and includes all of the OCS pipeline’s facilities that fall within the scope of the
Commission’s jurisdiction under section 7 of the NGA to the full extent
that such facilities are used or necessary to transport natural gas on or
across the OCS between:
(1) Any locations on the OCS (if the
pipeline does not have an interconnection off the OCS), or
(2) The OCS and the first point of
interconnection on the shoreward side
of the OCS where the pipeline delivers
or receives natural gas to or from either:
(i) A natural gas conditioning or
processing facility, or
(ii) Another pipeline, or
(iii) A distributor or end user of natural gas.
[Order 509, 53 FR 50938, Dec. 19, 1988, as
amended by Order 509-A, 54 FR 8313, Feb. 28,
1989]

§ 284.303

OCS blanket certificates.

Every OCS pipeline [as that term is
defined in § 284.302(b)] is required to
provide open-access, nondiscriminatory
transportation service pursuant to a
blanket
transportation
certificate
issued under subpart G of this part.
[Order 559, 58 FR 52663, Oct. 12, 1993]

§ 284.402 Blanket
cates.

marketing

certifi-

(a) Authorization. Any person who is
not an interstate pipeline is granted a
blanket certificate of public convenience and necessity pursuant to section
7 of the Natural Gas Act authorizing
the certificate holder to make sales for
resale at negotiated rates in interstate
commerce of any category of gas that
is subject to the Commission’s Natural
Gas Act jurisdiction. A blanket certificate issued under Subpart L is a certificate of limited jurisdiction which
will not subject the certificate holder
to any other regulation under the Natural Gas Act jurisdiction of the Commission, other than that set forth in
this Subpart L, by virtue of the transactions under this certificate.
(b) The authorization granted in
paragraph (a) of this section will become effective on January 7, 1993 except as otherwise provided in paragraph (c) of this section.
(c)(1) The authorization granted in
paragraph (a) of this section will become effective for an affiliated marketer with respect to transactions involving affiliated pipelines when an affiliated pipeline receives its blanket
certificate pursuant to § 284.284.
(2) Should a marketer be affiliated
with more than one pipeline, the authorization granted in paragraph (a) of
this section will not be effective for
transactions involving other affiliated
interstate pipelines until such other
pipelines’ meet the criterion set forth
in paragraph (c)(1) of this section. The
authorization granted in paragraph (a)
of this section is not extended to affiliates of persons who transport gas in
interstate commerce and who do not
have a tariff on file with the Commission under part 284 of this subchapter

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§ 284.503

with respect to transactions involving
that person.
(d) Abandonment of the sales service
authorized in paragraph (a) of this section is authorized pursuant to section
7(b) of the Natural Gas Act upon the
expiration of the contractual term or
upon termination of each individual
sales arrangement.

§ 284.501

[Order 547, 57 FR 57959, Dec. 8, 1992, as
amended by Order 581, 60 FR 53074, Oct. 11,
1995; Order 644, 68 FR 66337, Nov. 26, 2003]

§ 284.502 Procedures for applying for
market-based rates.

§ 284.403 Code of conduct for persons
holding blanket marketing certificates.
(a) To the extent Seller engages in
reporting of transactions to publishers
of electricity or natural gas indices,
Seller must provide accurate and factual information, and not knowingly
submit false or misleading information
or omit material information to any
such publisher, by reporting its transactions in a manner consistent with
the procedures set forth in the Policy
Statement on Natural Gas and Electric
Price Indices, issued by the Commission
in Docket No. PL03–3–000 and any clarifications thereto. Seller must notify
the Commission as part of its FERC
Form No. 552 annual reporting requirement in § 260.401 of this chapter whether it reports its transactions to publishers of electricity and natural gas
indices. In addition, Seller shall adhere
to any other standards and requirements for price reporting as the Commission may order.
(b) A blanket marketing certificate
holder shall retain, for a period of five
years, all data and information upon
which it billed the prices it charged for
the natural gas sold pursuant to its
market based sales certificate or the
prices it reported for use in price indices.
[Order 644, 68 FR 66337, Nov. 26, 2003, as
amended by Order 673, 71 FR 9716, Feb. 27,
2006; Order 677, 71 FR 30287, May 26, 2006; 73
FR 1032, Jan. 4, 2008; 73 FR 55739, Sept. 26,
2008]

Subpart M—Applications for
Market-Based Rates for Storage
SOURCE: Order 678, 71 FR 36636, July 27,
2006, unless otherwise noted.

Applicability.

Any pipeline or storage service provider that provides or will provide service under subparts B, C, or G of this
part, and that wishes to provide storage and storage-related services at
market-based rates must conform to
the requirements in subpart M.

(a) Applications for market-based
rates may be filed with certificate applications. Service, notice, intervention, and protest procedures for such
filings will conform with those applicable to the certificate application.
(b) With respect to applications not
filed as part of certificate applications,
(1) Applicants providing service
under subpart B or subpart G of this
part must file a request for declaratory
order and comply with the service and
filing requirements of part 154 of this
chapter. Interventions and protests to
applications for market-based rates
must be filed within 30 days of the application unless the notice issued by
the Commission provides otherwise. An
applicant providing service under subpart B or subpart G of this part cannot
charge market-based rates under this
subpart of this part until its application has been accepted by the Commission. Once accepted, the applicant can
make the appropriate filing necessary
to set its market-based rates into effect.
(2) Applicants providing service
under subpart C of this part must file
in accordance with the requirements of
that subpart.
§ 284.503

Market-power determination.

An applicant may apply for marketbased rates by filing a request for a
market-power determination that complies with the following:
(a) The applicant must set forth its
specific request and adequately demonstrate that it lacks market power in
the market to be served, and must include an executive summary of its
statement of position and a statement
of material facts in addition to its
complete statement of position. The

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§ 284.503

18 CFR Ch. I (4–1–14 Edition)

statement of material facts must include citation to the supporting statements, exhibits, affidavits, and prepared testimony.
(b) The applicant must include with
its application the following information:
(1) Statement A—geographic market.
This statement must describe the geographic markets for storage services in
which the applicant seeks to establish
that it lacks significant market power.
It must include the market related to
the service for which it proposes to
charge market-based rates. The statement must explain why the applicant’s
method for selecting the geographic
markets is appropriate.
(2) Statement B—product market. This
statement must identify the product
market or markets for which the applicant seeks to establish that it lacks
significant market power. The statement must explain why the particular
product definition is appropriate.
(3) Statement C—the applicant’s facilities and services. This statement must
describe the applicant’s own facilities
and services, and those of all parent,
subsidiary, or affiliated companies, in
the relevant markets identified in
Statements A and B in paragraphs
(b)(1) and (2) of this section. The statement must include all pertinent data
about the storage facilities and services.
(4) Statement D—competitive alternatives. This statement must describe
available alternatives in competition
with the applicant in the relevant markets and other competition constraining the applicant’s rates in those
markets. Such proposed alternatives
may include an appropriate combination of other storage, local gas supply,
LNG, financial instruments and pipeline capacity. These alternatives must
be shown to be reasonably available as
a substitute in the area to be served
soon enough, at a price low enough,
and with a quality high enough to be a
reasonable alternative to the applicant’s services. Capacity (transportation, storage, LNG, or production)
owned or controlled by the applicant
and affiliates of the applicant in the
relevant market shall be clearly and
fully identified and may not be considered as alternatives competing with

the applicant. Rather, the capacity of
an applicant’s affiliates is to be included in the market share calculated
for the applicant. To the extent available, the statement must include all
pertinent data about storage or other
alternatives and other constraining
competition.
(5) Statement E—potential competition.
This statement must describe potential
competition in the relevant markets.
To the extent available, the statement
must include data about the potential
competitors, including their costs, and
their distance in miles from the applicant’s facilities and major consuming
markets. This statement must also describe any relevant barriers to entry
and the applicant’s assessment of
whether ease of entry is an effective
counter to attempts to exercise market
power in the relevant markets.
(6) Statement F—maps. This statement
must consist of maps showing the applicant’s principal facilities, pipelines
to which the applicant intends to interconnect and other pipelines within the
area to be served, the direction of flow
of each line, the location of the alternatives to the applicant’s service offerings, including their distance in miles
from the applicant’s facility. The
statement must include a general system map and maps by geographic markets. The information required by this
statement may be on separate pages.
(7) Statement G—market-power measures. This statement must set forth the
calculation of the market concentration of the relevant markets using the
Herfindahl-Hirschman
Index.
The
statement must also set forth the applicant’s market share, inclusive of affiliated service offerings, in the markets to be served. The statement must
also set forth the calculation of other
market-power measures relied on by
the applicant. The statement must include complete particulars about the
applicant’s calculations.
(8) Statement H—other factors. This
statement must describe any other factors that bear on the issue of whether
the applicant lacks significant market
power in the relevant markets. The description must explain why those other
factors are pertinent.

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Federal Energy Regulatory Commission
(9) Statement I—prepared testimony.
This statement must include the proposed testimony in support of the application and will serve as the applicant’s case-in-chief, if the Commission
sets the application for hearing. The
proposed witness must subscribe to the
testimony and swear that all statements of fact contained in the proposed
testimony are true and correct to the
best of his or her knowledge, information, and belief.
§ 284.504 Standard requirements
market-power authorizations.

for

(a) Applicants granted the authority
to charge market-based rates under
§ 284.503 that provide cost-based service(s) must separately account for all
costs and revenues associated with facilities used to provide the marketbased services. When it files to change
its cost-based rates, applicant must
provide a summary of the costs and
revenues associated with market-based
rates with applicable cross references
to §§ 154.312 and 154.313 of this chapter.
The summary statement must provide
the formulae and explain the bases
used in the allocation of common costs
between the applicant’s cost-based
services and its market-based services.
(b) A storage service provider granted
the authority to charge market-based
rates under § 284.503 is required to notify the Commission within 10 days of
acquiring knowledge of significant
changes occurring in its market power
status. Such notification should include a detailed description of the new
facilities/services and their relationship to the storage service provider.
Significant changes include, but are
not limited to:
(1) The storage provider expanding
its storage capacity beyond the
amount authorized in this proceeding;
(2) The storage provider acquiring
transportation facilities or additional
storage capacity;
(3) An affiliate providing storage or
transportation services in the same
market area; and
(4) The storage provider or an affiliate acquiring an interest in or is acquired by an interstate pipeline.

§ 286.101
§ 284.505 Market-based rates for storage providers without a marketpower determination.
(a) Any storage service provider seeking market-based rates for storage capacity, pursuant to the authority of
section 4(f) of the Natural Gas Act, related to a specific facility put into
service after August 8, 2005, may apply
for market-based rates by complying
with the following requirements:
(1) The storage service provider must
demonstrate that market-based rates
are in the public interest and necessary
to encourage the construction of the
storage capacity in the area needing
storage services; and
(2) The storage service provider must
provide a means of protecting customers from the potential exercise of
market power.
(b) Any storage service provider seeking market-based rates for storage capacity pursuant to this section will be
presumed by the Commission to have
market power.

PART 286—ACCOUNTS, RECORDS,
MEMORANDA AND DISPOSITION
OF CONTESTED AUDIT FINDINGS
AND PROPOSED REMEDIES
Sec.
286.101
286.102

Application for stay.
Application for rehearing.

DISPOSITION OF CONTESTED AUDIT FINDINGS
AND PROPOSED REMEDIES
286.103 Notice to audited person.
286.104 Response to notification.
286.105 Shortened procedure.
286.106 Form and style.
286.107 Verification.
286.108 Determination.
286.109 Assignment for oral hearing.
AUTHORITY: 5 U.S.C. 551 et seq.; 15 U.S.C.
717–717w, 3301–3432; 42 U.S.C. 7102–7352.

§ 286.101

Application for stay.

(a) General rule. Any person who believes that any provision of a final or
interim regulation issued under the
Natural Gas Policy Act of 1978 is unlawful as applied to such person may
file an application for stay.
(b) Content of application. The application shall state, clearly and concisely:

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