18 Cfr 156

Pt. 156

18 CFR Ch. I (4–1–15 Edition)

PART 156—APPLICATIONS FOR ORDERS UNDER SECTION 7(a) OF
THE NATURAL GAS ACT
Sec.
156.1 Who may apply.
156.2 Purpose and intent of rules.
156.3 Applications; general requirements.
156.4 Form of exhibits to be attached to applications.
156.5 Exhibits.
156.6 Acceptance for filing or rejection of
application.
156.7 Service of application.
156.8 Notice of application.
156.9 Protests and interventions.
156.10 Hearings.
156.11 Dismissal of application.
AUTHORITY: 52 Stat. 824, 829, 830; 56 Stat. 83,
84; 15 U.S.C. 717f, 717f(a), 717n, 717o.
SOURCE: Order 234, 26 FR 4848, June 1, 1961,
unless otherwise noted.

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§ 156.1 Who may apply.
Any person or municipality as defined in section 2 of the Natural Gas
Act engaged or legally authorized to
engage in the local distribution of natural or artificial gas to the public may
file with the Commission an application pursuant to the provisions of section 7(a) of the Natural Gas Act for an
order of the Commission directing a
natural gas company to extend or improve its transportation facilities, to
establish physical connection of its
transportation facilities with the facilities of, and sell natural gas to such
person or municipality, and for such
purpose to extend its transportation facilities to communities immediately
adjacent to such facilities or to territory served by such natural gas company.
§ 156.2 Purpose and intent of rules.
(a) Applications filed pursuant to the
provisions of section 7(a) of the Natural
Gas Act shall contain all information
necessary to advise the Commission
fully concerning the applicant, the
service which applicant requests the
Commission to direct the natural gas
company to render together with a description of any improvement or extension of facilities which the natural gas
company would be required to make in
connection with the rendition of the
service, applicant’s present and proposed operations, construction, service,

and sales together with a description of
any extension or improvement of facilities by applicant which would be required to enable applicant to engage in
the local distribution of natural gas.
(b) Every requirement of this part
shall be considered as an obligation
upon the applicant which can be avoided only by a definite and positive showing that the information or data required by the applicable section of the
regulations is not necessary to the consideration and ultimate determination
of the application.
(c) This part will be strictly applied
to all applications as submitted and
the burden of adequate presentation in
understandable form as well as justification for omitted data or information rests with the applicant.
(d) Under this part, the natural gas
company from which applicant is seeking the service is a party respondent to
the proceeding.
§ 156.3 Applications; general requirements.
(a) Applicable rules. The application
must be filed with the Secretary of the
Commission in accordance with filing
procedures posted on the Commission’s
Web site at http://www.ferc.gov. In all
other respects applications shall conform to the requirements of §§ 156.1
through 156.5. Amendments to or withdrawals of applications shall be filed in
accordance with the requirements of
§§ 385.213 and 385.214 of this chapter.
(b) General content of application; filing fee. Except as provided in paragraph
(d) of this section, each application
shall set forth the following information:
(1) The exact legal name of the applicant; the name of the natural gas company (respondent) from which applicant is seeking an extension or improvement of transportation facilities,
physical connection of facilities or
service of natural gas together with a
concise description of the extension,
improvement, physical connection of
facilities or service sought from such
company including the estimated volumes of natural gas involved to meet
annual and maximum day requirements for the estimated first three
years of proposed operation.

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Federal Energy Regulatory Commission
(2) Applicant’s principal place of
business; whether applicant is an individual, corporation or municipality as
defined in section 2 of the Natural Gas
Act; State under the laws of which applicant is incorporated, organized or
authorized; and the name, title, and
mailing address of the person or persons to whom communications concerning the application are to be addressed.
(3) The facts relied upon by applicant
to show that the proposed extension or
improvement of transportation facilities, physical connection of facilities
or service and sale of natural gas are
necessary or desirable in the public interest.
(4) A concise description of applicant’s operations, if any, at the time
the application is filed.
(5) A concise description of applicant’s proposed operations, construction, service and sales together with a
description of any extension or improvement of facilities by applicant
which would be required to enable applicant to engage in the local distribution of natural gas and including the
proposed dates for the beginning and
completion of construction and commencement of operations.
(6) A full statement concerning and
description of any certificate of public
convenience and necessity, franchise or
other authorization which applicant
has applied for or received from any
State commission or municipality covering its proposed operations.
(7) A full statement as to whether
any other application must be or is to
be filed by applicant with any other
Federal or State body, or other political subdivision or agency of a State to
enable applicant to engage in the local
distribution of natural gas in the territory it proposes to serve.
(8) Each application shall contain a
table of contents which shall list all
exhibits and documents filed in compliance with §§ 156.1 through 156.2, as well
as other documents and exhibits filed
therewith, identifying them by their
appropriate titles and alphabetical letter designations specified in § 156.5. The
alphabetical designation specified in
§ 156.5 must be adhered to strictly and
any additional exhibits submitted on
applicant’s own volition, pursuant to

§ 156.5
§ 156.5(b) shall be designated in sequence under the letter designation Z
(Z1, Z2, Z3, etc.). Together with each
exhibit applicant shall set forth a full
and complete explanation of the data
submitted, the manner in which it was
obtained, and the reasons for the conclusions which are derived therefrom.
(c) Incorporation by reference. Any information required by this part which
is already on file with the Commission
may be incorporated by reference.
(d) Small distributors. A distributor requesting natural gas service of less
than 2000 Mcf per day to serve a single
community may file the information
required by the form of application
represented in § 250.6 of this chapter.
[Order 234, 26 FR 4848, June 1, 1961, as amended by Order 280, 29 FR 4875, Apr. 7, 1964; Order
317, 31 FR 432, Jan. 13, 1966; Order 225, 47 FR
19057, May 3, 1982; Order 737, 75 FR 43404, July
26, 2010]

§ 156.4 Form of exhibits to be attached
to applications.
(a) General requirements. Each exhibit
shall contain a title page showing applicant’s name, Docket No. CP– lll
(number designation to be left blank),
title of exhibit, and if exhibit consists
of 10 or more pages a table of contents
citing by page, section number or subdivision the component elements or
matters contained therein.
(b) Measurement base. All gas volumes
shall be stated upon a uniform basis of
measurement, and, in addition, if the
uniform basis of measurement used in
any application is other than 14.73
p.s.i.a., then the volume or volumes of
natural gas to be received from any
source and delivered by applicant shall
also be stated upon a basis of 14.73
p.s.i.a. Similarly, total volumes on all
summary sheets, as well as grand totals of volumes in any exhibit, shall
also be stated upon a basis of 14.73
p.s.i.a. if the basis of measurement
used is other than 14.73 p.s.i.a.
§ 156.5 Exhibits.
(a) Exhibits to be submitted with application. All of the following exhibits
shall be submitted with the application
when tendered for filing. Such exhibits
may be attached to the application or
furnished in a separate volume or separate volumes designated ‘‘Exhibits to

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§ 156.5

18 CFR Ch. I (4–1–15 Edition)

Application.’’ Such separate volume or
volumes shall indicate on the cover
thereof applicant’s name and bear
Docket No. CP– lll (number designation to be left blank).
(1) Exhibit A—Articles of incorporation
and bylaws. If applicant is not an individual, a conformed copy of its articles
of incorporation and bylaws, or other
similar documents. One certified copy
shall be submitted with the original
application.
(2) Exhibit B—State and local authorizations. (i) A copy of any certificate of
public convenience and necessity or
similar authorization which applicant
has obtained from the State commission or commissions of each of the
States in which applicant engages or
proposes to engage in the local distribution of natural gas; (ii) a copy of
any franchise or similar authorization
which applicant has obtained from
each of the municipalities in which applicant engages or proposes to engage
in the local distribution of natural gas;
and (iii) a copy of any other authorization or form of consent which applicant
has obtained from any State, State
commission, municipality or from any
agency of the Federal government necessary or incidental to applicant’s proposal to engage in the local distribution of natural gas. One certified copy
of each of the documents specified in
paragraphs (a)(2) (i), (ii), and (iii) of
this section shall be submitted as exhibits to the original application.
(3) Exhibit C—Officials. A list of the
names and business addresses of applicant’s officers and directors, or similar
officials if applicant is not a corporation.
(4) Exhibit D—Subsidiaries and affiliation. If applicant or any of its officers
or directors, directly or indirectly,
owns, controls, or holds with power to
vote, 10 percent or more of the outstanding voting securities of any other
person or organized group of persons
engaged in production, transportation,
distribution, or sale of natural gas, or
of any person or organized group of
persons engaged in the construction or
financing of such enterprises or operations, a detailed explanation of each
such relationship, including the percentage of voting strength represented
by such ownership of securities. If any

persons or organized group of persons,
directly or indirectly, owns, controls,
or holds with power to vote, 10 percent
or more of the outstanding voting securities of applicant—give a detailed explanation of each such relationship.
(5) Exhibit F—Location of facilities. A
geographical map of suitable scale and
detail showing all of the transmission
facilities proposed to be installed and
operated by Applicant between distribution systems of Applicant and the
transmission pipeline system of the
proposed supplier (respondent), and include:
(i) Location, length, and size of applicant’s transmission pipelines.
(ii) Location and size (related horsepower) of applicant’s transmission
compressor stations.
(iii) Location and designation of each
point of connection of applicant’s proposed transmission facilities with (a)
proposed pipeline supplier (respondent)
main line industrial customers, gas
pipeline or distribution systems, showing towns and communities to be
served, and (b) gas producing and storage filed, or other sources of supply.
(iv) Location, length and size of facilities required to be installed by the
proposed supplier (respondent) necessary for the rendition of service requested by the applicant.
(6) Exhibit G—Flow diagram showing
daily design capacity and reflecting operation with proposed transmission facilities. A flow diagram showing daily design capacity of all transmission facilities proposed to be installed and operated by applicant between distribution
facilities of applicant and the transmission pipeline system of the proposed supplier (respondent) including
the following:
(i) Diameter, wall thickness, and
length of pipe to be installed.
(ii) For each transmission compressor station, the size, type, and
number of compressor units, horsepower required, horsepower to be installed, volume of gas to be used as
fuel, suction and discharge pressures,
and compression ratio.
(iii) Pressures and volumes of gas at
the main line inlet and outlet connections at each compressor station.
(iv) Pressures and volumes of gas at
each intake and takeoff point and at

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Federal Energy Regulatory Commission
the beginning and terminus of all proposed transmission facilities.
(7) Exhibit G-I—Flow diagram reflecting
maximum capabilities. If Exhibit G does
not reflect the maximum deliveries of
all transmission facilities, proposed to
be installed and operated by applicant
between distribution facilities of applicant and the transmission pipeline system of the proposed supplier (respondent), under most favorable operating
conditions, without installation of any
facilities in addition to those proposed
in the application, include an additional diagram or diagrams to depict
such maximum capabilities.
(8) Exhibit G-II—Flow diagram data.
Exhibits G and G-I shall be accompanied by a statement of engineering
design data in explanation and support
of the diagrams and the proposed
project, setting forth:
(i) Assumption, bases, formulae, and
methods used in the development and
preparation of such diagrams and accompanying data.
(ii) A description of the transmission
pipe and fittings to be installed, specifying the diameter, wall thickness,
yield point, ultimate tensile strength,
method of fabrication, and methods of
testing proposed.
(iii) Type, capacity, and location of
each natural gas storage field or facility, or other similar plant or facility
directly attached to the applicant’s
transmission system.
(9) Exhibit H—Total gas supply data. A
statement of the total gas supply committed to, controlled by, or possessed
by an applicant which is available to it
for the acts and the services proposed,
together with:
(i) The estimated total volume of
proven reserves in place for each reservoir in each field from which applicant takes natural gas, giving names
and location of fields (state, county, or
parish).
(ii) The estimated total volumes of
proven reserves available to applicant
by fee or under lease, segregated by gas
fields and reservoirs thereof, giving
names and locations of fields (state,
county, or parish).
(iii) The names and addresses of persons with whom applicant has gas purchase contracts, the effective dates and

§ 156.5
remaining terms in years of such contracts.
(iv) A study, showing the daily volumes of natural gas which can and are
proposed to be obtained each year from
each source of supply.
(v) Estimate of the Btu content of
the gas available to or requested by applicant for proposed service.
(vi) A study of each proposed gas
storage field showing: Location; geology; original and present reserves for
each reservoir; original and present
pressure of each reservoir; proposed top
and base storage pressures; proposed
top and base gas volumes to be stored;
a deliverability study, including daily
and annual injection and withdrawal
rates and pressures; and maximum
daily deliverability and maximum storage capacity under the proposed plan of
development.
(10) Exhibit I—Market data. An estimate by distribution systems of the
volumes of gas to be delivered during
the year in which proposed service is
estimated to begin and during each of
the first 3 full years of operation of the
proposed facilities, and actual data of
like import for each of the 3 years next
preceding the filing of the application,
together with:
(i) Names and locations of areas to be
served, showing the number of residential, commercial, firm industrial, interruptible industrial, residential space
heating, commercial space heating,
and other types of customers for each
distribution system to be served; and
the names and locations of each firm
and interruptible direct industrial customer whose estimated consumption
totals 10,000 Mcf or more in any calendar month or 100,000 Mcf or more per
year.
(ii) Applicant’s total annual and peak
day gas requirements by classification
of service in paragraph (a)(10)(i) of this
section, divided as follows: Gas requirements (a) for each distribution area
where gas is sold or to be sold by applicant at retail; (b) for all main-line direct industrial customers and (c) company use and unaccounted-for gas.
(iii) Total past and expected curtailments of service by the applicant in
each distribution area proposed to be
supplied with gas from the project, all
to be listed by the classifications of

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§ 156.5

18 CFR Ch. I (4–1–15 Edition)

service as indicated in paragraph
(a)(10)(i) of this section.
(iv) Explanation of basic factors used
in estimating future requirements, including, for example: Peak day and annual degree day deficiencies, annual
load factors of applicant’s deliveries to
its proposed customers; derivation of
numbers of customers proposed to be
served; individual consumer peak day
and annual consumption factors for
each class of consumers, with supporting historical data; forecasted
saturation of space heating as related
to past experience; and full detail as to
all other sources of gas supply available to applicant and to each of its customers, including manufacturing facilities and liquid petroleum gas.
(v) A full description of all facilities,
other than transmission facilities, necessary to provide service in the communities to be served.
(vi) A copy of each market survey
made within the past 3 years for the
markets proposed to be served.
(11) Exhibit J—Conversion to natural
gas. If it is assumed that proposed customers in new areas or firm and interruptible direct industrial customers
whose estimated consumption totals
10,000 Mcf or more in any calendar
month or 100,000 Mcf or more in any
calendar year will convert from other
fuels to natural gas, state the basis for
such assumption and include a study
showing estimated cost of converting
customers’ facilities to natural gas.
The study should indicate the number
of customers of each of the other fuels
who applicant anticipates will convert
to natural gas and the current cost of
fuel to be displaced compared to the
cost of natural gas on an equivalent
Btu basis.
(12) Exhibit K—Cost of facilities. A detailed estimate of total capital cost of
the proposed facilities involved in the
application, showing cost of construction by operating units such as distribution facilities, compressor stations,
transmission
pipelines
and
laterals, measuring and regulating stations, and separately stating the cost
of rights-of-way, damages, surveys, materials, labor, engineering and inspection, administrative overhead, fees for
legal and other services, allowance for
funds used during construction, and

contingencies. Detailed estimates of
cost of facilities required to be installed by the pipeline supplier shall be
separately stated.
(13) Exhibit L—Financing. Plans for financing the proposed facilities for
which the application is filed, together
with:
(i) A detailed description of applicant’s outstanding and proposed securities and liabilities, showing amount
(face value and number), interest or
dividend rate, dates of issue and maturity, voting privileges, and principal
terms and conditions applicable to
each.
(ii) The manner in which applicant
proposes to dispose of securities by private sale, competitive bidding or otherwise; the persons, if known, to whom
they will be sold or issued, and evidence that such persons having agreed
to purchase the securities, and if not
known, the class or classes of such persons.
(iii) A statement showing for each
proposed issue, by total amount and by
unit, the estimated sale price and estimated net proceeds to the applicant.
(iv) A statement as to the extent to
which the applicant will rely on temporary financing in connection with
the proposed construction, and statements tending to substantiate the fact
that such temporary loans will be
made available.
(v) Statement of anticipated cash
flow, including provision during the period of construction and the first 3 full
years of proposed operation for interest
requirements, dividends, and capital
retirements.
(vi) Statement showing, over the life
of each issue, the annual amount of securities which applicant expects to retire through operation of a sinking
fund or other extinguishment of the obligation.
(vii) A balance sheet and income
statement (12 months) of most recent
date available.
(viii) Comparative pro forma balance
sheets and income statements for the
period of construction and each of the
first 3 full years of operation, giving effect to the proposed construction and
proposed financing of the project.
(ix) Any additional data and information upon which applicant proposes to

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Federal Energy Regulatory Commission
rely in showing the adequacy and
availability to it of resources for financing its proposed project.
(14) Exhibit M—Construction, operation, and management. A concise statement setting forth arrangements for
supervision, management, engineering,
accounting, legal, or other similar
service to be rendered in connection
with the construction or operation of
the project if not to be performed by
employees of applicant, including reference to any existing or contemplated
agreements therefor.
(15) Exhibit N—Revenues, expenses income. Applicant shall submit pro forma
statements for each of the first 3 full
years of operation of all the proposed
facilities, showing:
(i) Gas system annual revenues and
volumes of natural gas related thereto
subdivided by classes of service and
further subdivided by sales to direct industrial customers, sales to other utilities (if any), transportation for other
gas utilities and other sales.
(ii) Gas system annual operating expenses, cost of gas purchased, depreciation, depletion, taxes, utility income
and resulting rate of return on net investment in gas plant, including working capital, or in the case of a municipality applicant similar data and amortization-interest schedule for life of
each bond issue related to the proposed
project. Cost of gas purchased shall be
at the currently effective applicable
rate of the pipeline supplier or applicable rate filed by such pipeline supplier,
but not effective at date of filing,
whichever is the higher.
(iii) The information required by
paragraphs (a)(15)(i) and (ii) of this section need not be furnished when the applicant furnishes as a part of its application a pro forma copy of a certificate
of convenience and necessity or similar
authorization issued to it by the local
State commission having jurisdiction
over its proposed operations.
(16) Exhibit P—Rates. (i) A statement
of the rates proposed to be charged for
the proposed services to be rendered.
Indicate whether rates are subject to
regulation by the State or local authorities.
(ii) Identification of the rate schedule of the natural gas company (re-

§ 156.7
spondent) under which gas is proposed
to be purchased.
(b) Additional exhibits. Applicant shall
submit additional exhibits necessary to
support or clarify its application. Such
exhibits shall be identified and designated as provided by § 156.3(b)(8).
(c) Additional information. Upon request by the Secretary, prior to or during hearing upon the application, applicant shall submit such additional data,
information, exhibits, or other detail
as may be specified.
[Order 234, 26 FR 4848, June 1, 1961, as amended by Order 280, 29 FR 4876, Apr. 7, 1964; Order
436, 36 FR 15530, Aug. 17, 1971; Order 225, 47
FR 19057, May 3, 1982]

§ 156.6 Acceptance for filing or rejection of application.
Applications will be docketed when
received and the applicant so advised.
Any application which does not conform to the requirements of §§ 156.1
through 156.5 will be rejected by the
Secretary. All but one copy of a rejected application will be returned. An
application which relates to an operation concerning which a prior application has been filed and rejected, shall
be docketed as a new application. Such
new application shall state the docket
number of the prior rejected application.
§ 156.7

Service of application.

After an application has been accepted for filing, the Secretary will cause a
copy thereof to be served upon the natural gas company (respondent) against
which an order pursuant to section 7(a)
of the Natural Gas Act has been requested. The natural gas company
shall, within 30 days after the date of
service of such application file its answer (an original and 7 conformed copies) to such application in which it
shall state whether it has any objection to the grant of the application. If
the natural gas company objects to the
grant of the relief sought by the application, it shall fully state the grounds
and reasons for its objections. The answer shall be verified and shall be
signed by an executive of the natural
gas company. In the event that the respondent natural gas company fails to

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§ 156.8

18 CFR Ch. I (4–1–15 Edition)

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

§ 156.8

Notice of application.

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

§ 156.9

Protests and interventions.

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

Hearings.

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

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§ 156.11

Dismissal of application.

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

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

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

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