18 C.F.R. Subpart C—Certain Transportation by Intrastate Pipelines
Title 18 - Conservation of Power and Water Resources
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. (a) Subject to paragraphs (d) and (e) 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] (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 city-gate 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 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 describes how the pipeline will engage in these transportation arrangements, including operating conditions, such as, quality standards and financial viability of the shipper. The statement must also include the rate election made by the intrastate pipeline pursuant to paragraph (b) of this section. If the pipeline changes its operations 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. [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] 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.
Title 18: Conservation of Power and Water Resources
PART 284—CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES
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.
(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 appropriate state regulatory agency in writing of the proposed transportation prior to commencement.
(b) Annual report. Not later than March 31 of each year, each intrastate pipeline must file an annual report with the Commission and the appropriate state regulatory agency that contains, for each transportation service (except storage) provided during the preceding calendar year under §284.122, the following information:
(1) The name of the shipper receiving the transportation service;
(2) The type of service performed (i.e., firm or interruptible);
(3) Total volumes transported for the shipper. If it is firm service, the report should separately state reservation and usage quantities; and
(4) Total revenues received for the shipper. If it is firm service, the report should separately state reservation and usage revenues.
(c) Semi-annual storage report. Within 30 days of the end of each complete storage injection and withdrawal season, the intrastate pipeline shall file with the Commission a report of storage activity provided under the authority of §284.122. The report must be signed under oath by a senior official, consist of an original and five conformed copies, and contain a summary of storage injection and withdrawal activities to include the following:
(1) The identity of each customer injecting gas into storage and/or withdrawing gas from storage;
(2) The docket where the storage injection or withdrawal rates were approved;
(3) The maximum storage quantity and maximum daily withdrawal quantity applicable to each storage customer;
(4) For each storage customer, the volume of gas (in dekatherms) injected into and/or withdrawn from storage during the period;
(5) The unit charge and total revenues received during the injection/withdrawal period from each storage customer; and
(6) The related docket numbers in which the intrastate pipeline reported storage related injection/withdrawal transportation services.
[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]
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