18 Cfr 284.221

Federal Energy Regulatory Commission

Subpart G—Blanket Certificates
Authorizing Certain Transportation by Interstate Pipelines
on Behalf of Others and Services by Local Distribution
Companies

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§ 284.221 General rule; transportation
by interstate pipelines on behalf of
others.
(a) Blanket certificate. Any interstate
pipeline may apply under this section
for a single blanket certificate authorizing the transportation of natural gas
on behalf of others in accordance with
this subpart. A certificate of public
convenience and necessity under this
section is granted pursuant to section 7
of the Natural Gas Act.
(b) Application procedure. (1) An application for a blanket certificate under
this section must be filed electronically. The format for the electronic application filing can be obtained at the
Federal Energy Regulatory Commission, Division of Information Services,
Public Reference and Files Maintenance Branch, Washington, DC 20426,
and must include:
(i) The name of the interstate pipeline; and
(ii) A statement by the interstate
pipeline that it will comply with the
conditions in paragraph (c) of this section.
(2) Upon receipt of an application
under this section, the Commission
will conduct a hearing pursuant to section 7(c) of the Natural Gas Act and
§ 157.11 of this chapter and, if required
by the public convenience and necessity, will issue to the interstate pipeline a blanket certificate authorizing
such pipeline company to transport
natural gas, as provided under this subpart.
(c) General conditions. Any blanket
certificate under this subpart is subject
to the conditions of subpart A of this
part.
(d) Pre-grant of abandonment. (1) Except as provided in paragraph (d)(2) of
this section, abandonment of transportation services is authorized pursuant
to section 7(b) of the Natural Gas Act
upon the expiration of the contractual
term or upon termination of each individual transportation arrangement au-

§ 284.221
thorized under a certificate granted
under this section.
(2) Paragraph (d)(1) of this section
does not apply if the individual transportation arrangement is for firm
transportation under a contract with a
term of one year or more, and the firm
shipper:
(i) Exercises any contractual right to
continue such service; or
(ii) Gives notice that it wants to continue its transportation arrangement
and will match the longest term and
highest rate for its firm service, up to
the applicable maximum rate under
§ 284.10, offered to the pipeline during
the period established in the pipeline’s
tariff for receiving such offers by any
other person desiring firm capacity,
and executes a contract matching the
terms of any such offer. To be eligible
to exercise this right of first refusal,
the firm shipper’s contract must be for
service for twelve consecutive months
or more at the applicable maximum
rate for that service, except that a contract for more than one year, for a
service which is not available for 12
consecutive months, would be subject
to the right of first refusal.
(e) Availability of regular certificates.
This subpart does not preclude an
interstate pipeline from applying for
an individual certificate of public convenience and necessity for any particular transportation service.
(f) Cross references. (1) Any local distribution company served by an interstate pipeline may apply for a blanket
certificate to perform certain services
under § 284.224 of this chapter.
(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

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§ 284.222

18 CFR Ch. I (4–1–12 Edition)

notice procedures under § 157.211(a)(2)
and § 157.205.
(g) Flexible receipt point authority. (1)
An interstate pipeline authorized to
transport gas under a certificate granted under this section may, at the request of the shipper and without prior
notice:
(i) Reduce or discontinue receipts of
natural gas at a particular receipt
point from a supplier; and
(ii) Commence or increase receipts at
a particular receipt point from that
supplier or any other supplier.
(2) The total natural gas volumes received by the interstate pipeline following any such reassignment under
this paragraph must not exceed the
total volume of natural gas that the
interstate pipeline may transport on
behalf of the shipper under a certificate granted under this section.
(3) The receipt points to which natural gas volumes may be reassigned
under this paragraph include eligible
facilities under § 157.208 which are authorized to be constructed and operated pursuant to a certificate issued
under subpart F of part 157 of this
chapter.
(h) Flexible delivery point authority. (1)
An interstate pipeline authorized to
transport gas under a certificate issued
pursuant to this section may at the request of the shipper and without prior
notice:
(i) Reduce or discontinue deliveries
of natural gas to a particular delivery
point; and
(ii) Commence or increase deliveries
at a particular delivery point.
(2) The total natural gas volumes delivered by the interstate pipeline following any such reassignment must
not exceed the total amount of natural
gas that the interstate pipeline is authorized under a certificate issued pursuant to this section to transport on
behalf of the shipper.
(3) The delivery points to which natural gas volumes may be reassigned
under this paragraph include facilities
authorized to be constructed and operated only under § 157.211 and the prior

notice conditions of § 157.205 of this
chapter.
[Order 436, 50 FR 42496, Oct. 18, 1985, as
amended by Order 433–A, 51 FR 43607, Dec. 3,
1986; Order 636, 57 FR 13317, Apr. 16, 1992;
Order 636–A, 57 FR 36217, Aug. 12, 1992; Order
581, 60 FR 53073, Oct. 11, 1995; Order 603, 64 FR
26610, May 14, 1999; Order 637, 65 FR 10222,
Feb. 25, 2000; Order 637–A, 65 FR 35765, June
5, 2000]

§ 284.222

[Reserved]

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

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

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