18 Cfr 284.123

§§ 284.103–284.106

18 CFR Ch. I (4–1–16 Edition)

(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]

§§ 284.103–284.106

[Reserved]

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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 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

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Federal Energy Regulatory Commission
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
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 Com-

§ 284.123
mission 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

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§ 284.123

18 CFR Ch. I (4–1–16 Edition)

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
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 re-

quirements 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
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.

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Federal Energy Regulatory Commission
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
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.

§ 284.123
(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

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§ 284.124

18 CFR Ch. I (4–1–16 Edition)

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.

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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
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 appro-

priate 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;
(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 separately 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

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