PART 284—CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES 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 § 284.1 Definitions. (a) Transportation (b) Appropriate state regulatory agency (c) Market center (d) Major non-interstate pipeline (1) It is not a “natural gas company” under section 1 of the Natural Gas Act, 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. (b) Interest. [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. (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 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. (b) Measurement. (c) Standard conditions. [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. (b) Address. [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. (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 (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. (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 not include in its tariff any provision that inhibits the development of market centers. (c) Reasonable operational conditions. (d) Segmentation. (e) Reservation fee. (f) Limitation. [Order 436, 50 FR 42493, Oct. 18, 1985] Editorial Note: For Federal Register www.govinfo.gov. § 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 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] § 284.9 Interruptible transportation service. (a) Interruptible transportation availability. (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 (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. [Order 436, 50 FR 42494, Oct. 18, 1985] Editorial Note: For Federal Register www.govinfo.gov. § 284.10 Rates. (a) Applicability. (b) Rate objectives. (1) Rates for service during peak periods should ration capacity; (2) Rates for firm service during off-peak 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 Volumetric rates. (2) Based on projected units of service. (3) Differentiation due to time and distance. (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. (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. (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 General rule. (2) Exception. (c) Contents of advance notification. (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. [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. (i) WGQ Additional Standards, Version 4.0, September 29, 2023, (including Addition of WGQ Standard No. 0.3.30, November 25, 2024). (ii) WGQ Nominations Related Standards, Version 4.0, September 29, 2023. (iii) WGQ Flowing Gas Related Standards, Version 4.0, September 29, 2023. (iv) WGQ Invoicing Related Standards, Version 4.0, September 29, 2023, (including Minor Correction MC24002 applied May 17, 2024). (v) WGQ Quadrant Electronic Delivery Mechanism Related Standards, Version 4.0, September 29, 2023, (including Revision to Standard No. 4.3.23, November 25, 2024). (vi) WGQ Capacity Release Related Standards, Version 4.0, September 29, 2023, (including Addition of WGQ Standard No. 5.3.74, November 25, 2024); and (vii) WGQ Cybersecurity Related Standards, Version 4.0, September 29, 2023. (2) The material listed in paragraph (a)(1) is incorporated by reference into this section with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. All approved material is available for inspection at the Federal Energy Regulatory Commission and at the National Archives and Records Administration (NARA). For assistance in viewing the material, contact the Federal Energy Regulatory Commission at: 888 First Street NE, Washington, DC 20426 phone: 202-502-8371; email: [email protected]; https://www.ferc.gov. www.archives.gov/federal-register/cfr/ibr-locations [email protected]. https://www.naesb.org/. (b) Business practices and electronic communication requirements. (1) Nominations. (i) Intra-day nominations. (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. (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. (iii) Within 60 days after a shipper request, a pipeline must file to make appropriate tariff changes at the Commission to allow multiple shippers associated with a designated agent or asset manager to be jointly and severally liable under a single firm transportation service agreement, subject to reasonable terms and conditions. (2) Flowing gas. Operational balancing agreements. (ii) Netting and trading of imbalances. (iii) Imbalance management. (iv) Operational flow orders. (v) Penalties. (3) Communication protocols. (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. (ii) Except as permitted in paragraph (b)(4)(i) of this section, a pipeline and its employees, contractors, consultants, and agents are prohibited from 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 www.govinfo.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. (b) Reports on firm and interruptible services. (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 that would be applicable to a comparable sale of pipeline services; (v) The duration of the contract; (vi) The receipt and delivery points and the zones or segments covered by the contract, including the location name and code adopted by the pipeline in conformance with paragraph (f) of this section 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 between which the shipper is entitled to transport gas at the rate charged, including the location name and code adopted by the pipeline in conformance with paragraph (f) of this section 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 agreement deviates from the pipeline's tariff. (vii) Whether the shipper is affiliated with the pipeline. (c) Index of customers. (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, including the location name and code adopted by the pipeline in conformance with paragraph (f) of this section 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 are available through the Commission's website, https://www.ferc.gov. (d) Capacity and flow information. (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 the respective assignments of that capacity to the various firm services provided by the pipeline. (e) Notice of bypass. (f) Location codes. [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; Order 587-W, 80 FR 67312, Nov. 2, 2015; Order 587-X, 81 FR 15432, Mar. 23, 2016; Order 899, 88 FR 74031, Oct. 30, 2023] § 284.14 Posting requirements of major non-interstate pipelines. (a) Daily posting requirement. (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 maximum 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 non-interstate pipelines, which commence service after the effective date of this section, must comply with the requirements of this section upon their in-service 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. (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 end-users 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 (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] §§ 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 Rates and charges. (a) General rule. (b) Election of rates. (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. (d) Presumptions. (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. (f) Electronic filing of statements, and related materials General rule. (2) Requirements for signature. (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. https://www.ferc.gov. (g) Election of Notice Procedures Applicability. (2) Rejection of filing. (3) Publication of notice of filing. Federal Register. (4) 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. (6) Withdrawal of protests. (7) Amendments or modifications to tariff records prior to approval. (8) Final approval. (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. (9) Periodic rate review. (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. (h) Withdrawal of filing. (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; Order 849, 83 FR 36715, July 30, 2018; Order 849-B, 86 FR 29506, June 2, 2021; Order 899, 88 FR 74031, Oct. 30, 2023] § 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. (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., (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., (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 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 (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; Order 587-W, 80 FR 67312, Nov. 2, 2015] 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. § 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. (b) Application procedure. https://www.ferc.gov, (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. (d) Pre-grant of abandonment. (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. (f) Cross references. (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. (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. (i) Reduce or discontinue deliveries of natural gas to a particular delivery point; and (ii) Commence or increase deliveries at a particular delivery point. (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; Order 899, 88 FR 74031, Oct. 30, 2023] § 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. (b) Blanket certificate (2) Upon application for a certificate under this section, a hearing will be conducted under section 7(c) of the 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. (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, (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 12-month 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. (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. (2) Rate election. (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. (4) Filings. (5) Filing Requirements. (f) Pregrant of abandonment. (g) Hinshaw pipeline without blanket certificate. (h) Definitions. (1) A Hinshaw pipeline (2) Interstate supplies (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 by intrastate pipelines. (a) Blanket certificate. 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. (c) Acceptance of certificate. (d) Terms and conditions. (e) Pregrant of abandonment. (f) Effect of 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 (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 Emergency natural gas Emergency natural gas transaction (1) Necessary to alleviate an emergency; and (2) Not anticipated to extend for more than 60 days in duration. Emergency facilities Participant Recipient (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 [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. (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 Emergency sale or transportation. (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. § 284.265 Cost recovery by interstate pipeline. (a) Except as provided in paragraph (b), an interstate pipeline 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 Rate on file. (2) Rate not on file. (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. [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. § 284.268 Local distribution company emergency transportation rates. (a) Rate on file. (b) Rate not on file. § 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. (1) That the report is submitted pursuant to § 284.270 for an emergency natural gas 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 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). (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. (1) That the report is for and submitted pursuant to § 284.270 for an emergency transaction; (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. (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; (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 (b) Sales service (c) Unbundled sales service (d) Small customer [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 for unbundled sales services. (a) Authorization. (b) Conversion to unbundled firm sales service and firm transportation service. (c) Conversion to unbundled interruptible sales service and 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 pipeline-provided service necessary to deliver gas to the customer. (e) Small customer cost-based rate. [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 for unbundled sales service. (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 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 for 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 (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. § 284.301 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). § 284.302 Definitions. For the purposes of this subpart, the term: (a) Outer Continental Shelf (b) OCS pipeline (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] Subpart L—Certain Sales for Resale by Non-interstate Pipelines § 284.401 Definitions. Affiliated marketer. [Order 547, 57 FR 57959, Dec. 8, 1992] § 284.402 Blanket marketing certificates. (a) Authorization. (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 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. [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] § 284.403 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 (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. § 284.501 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. § 284.502 Procedures for applying for market-based rates. (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 market-based 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 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. (2) Statement B—product market. (3) Statement C—the applicant's facilities and services. (4) Statement D—competitive alternatives. (5) Statement E—potential competition. (6) Statement F—maps. (7) Statement G—market-power measures. (8) Statement H—other factors. (9) Statement I—prepared testimony. § 284.504 Standard requirements for market-power authorizations. (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 market-based 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. § 284.505 Market-based rates for storage providers without a market-power 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.