18 Cfr 284

18 CFR Part 284 (up to date as of 11/28/2022)
Certain Sales and Transportation of Natural Gas Under the Nat...

18 CFR Part 284

This content is from the eCFR and is authoritative but unofficial.

Title 18 - Conservation of Power and Water Resources
Chapter I - Federal Energy Regulatory Commission, Department of Energy
Subchapter I - Other Regulations Under the Natural Gas Policy Act of 1978 and Related
Authorities
Part 284 Certain Sales and Transportation of Natural Gas Under the Natural Gas
Policy Act of 1978 and Related Authorities
Subpart A General Provisions and Conditions
§ 284.1 Definitions.
§ 284.2 Refunds and interest.
§ 284.3 Jurisdiction under the Natural Gas Act.
§ 284.4 Reporting.
§ 284.5 Further terms and conditions.
§ 284.6 Rate interpretations.
§ 284.7 Firm transportation service.
§ 284.8 Release of firm capacity on interstate pipelines.
§ 284.9 Interruptible transportation service.
§ 284.10 Rates.
§ 284.11 Environmental compliance.
§ 284.12 Standards for pipeline business operations and communications.
§ 284.13 Reporting requirements for interstate pipelines.
§ 284.14 Posting requirements of major non-interstate pipelines.
§ 284.15 Bidding by affiliates in open seasons for pipeline capacity.
Subpart B Certain Transportation by Interstate Pipelines
§ 284.101 Applicability.
§ 284.102 Transportation by interstate pipelines.
§§ 284.103-284.106 [Reserved]
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.
Subpart D Certain Sales by Intrastate Pipelines
§ 284.141 Applicability.
§ 284.142 Sales by intrastate pipelines.
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§§ 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.
§ 284.222 [Reserved]
§ 284.223 Transportation by interstate pipelines on behalf of shippers.
§ 284.224 Certain transportation and sales by local distribution companies.
§§ 284.225-284.226 [Reserved]
§ 284.227 Certain transportation by intrastate pipelines.
Subpart H [Reserved]
Subpart I Emergency Natural Gas Sale, Transportation, and Exchange
Transactions
§ 284.261 Purpose.
§ 284.262 Definitions.
§ 284.263 Exemption from section 7 of Natural Gas Act and certain regulatory conditions.
§ 284.264 Terms and conditions.
§ 284.265 Cost recovery by interstate pipeline.
§ 284.266 Rates and charges for interstate pipelines.
§ 284.267 Intrastate pipeline emergency transportation rates.
§ 284.268 Local distribution company emergency transportation rates.
§ 284.269 Intrastate pipeline and local distribution company emergency sales rates.
§ 284.270 Reporting requirements.
§ 284.271 Waiver.
Subpart J Blanket Certificates Authorizing Certain Natural Gas Sales by Interstate
Pipelines
§ 284.281 Applicability.
§ 284.282 Definitions.
§ 284.283 Point of unbundling.
§ 284.284 Blanket certificates for unbundled sales services.
§ 284.285 Pregrant of abandonment of unbundled sales services.
§ 284.286 Standards of conduct for unbundled sales service.
§ 284.287 Implementation and effective date.
§ 284.288 Code of conduct for unbundled sales service.
Subpart K Transportation of Natural Gas on the Outer Continental Shelf by
Interstate Natural Gas Pipelines on Behalf of Others
§ 284.301 Applicability.
§ 284.302 Definitions.
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§ 284.303 OCS blanket certificates.
Subpart L Certain Sales for Resale by Non-interstate Pipelines
§ 284.401 Definitions.
§ 284.402 Blanket marketing certificates.
§ 284.403 Code of conduct for persons holding blanket marketing certificates.
Subpart M Applications for Market-Based Rates for Storage
§ 284.501 Applicability.
§ 284.502 Procedures for applying for market-based rates.
§ 284.503 Market-power determination.
§ 284.504 Standard requirements for market-power authorizations.
§ 284.505 Market-based rates for storage providers without a market-power determination.

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 includes storage, exchange, backhaul, displacement, or other methods of transportation.
(b) Appropriate state regulatory agency means a state agency which regulates intrastate pipelines and local
distribution companies within such state. When used in reference to rates and charges, the term includes
only those agencies which set rates and charges on a cost-of-service basis.
(c) Market center means an area where gas purchases and sales occur at the intersection of different
pipelines.
(d) Major non-interstate pipeline means a pipeline that fits the following criteria:
(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.
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18 CFR 284.2

[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. Any rate or charge collected for any sale, transportation, or assignment conducted pursuant to
this part which exceeds the rates or charges authorized by this part shall be refunded.
(b) Interest. All refunds made pursuant to this section must include interest at an amount determined in
accordance with § 154.501(d) of this chapter.
[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. All reports filed pursuant to this part must indicate quantities of natural gas in
MMBtu's. An MMBtu means a million British thermal units. A British thermal unit or Btu means the
quantity of heat required to raise the temperature of one pound avoirdupois of pure water from 58.5
degrees to 59.5 degrees Fahrenheit, determined in accordance with paragraphs (b) and (c) of this section.
(b) Measurement. The Btu content of one cubic foot of natural gas under the standard conditions specified in
paragraph (c) of this section is the number of Btu's produced by the complete combustion of such cubic
foot of gas, at constant pressure with air of the same temperature and pressure as the gas, when the
products of combustion are cooled to the initial temperature of the gas and air and when the water
formed by such combustion is condensed to a liquid state.
(c) Standard conditions. The standard conditions for purposes of paragraph (b) of this section are as follows:
The gas is saturated with water vapor at 60 degrees Fahrenheit under a pressure equivalent to that of
30.00 inches of mercury at 32 degrees Fahrenheit, under standard gravitational force (980.665
centimeters per second squared).
[Order 581, 60 FR 53072, Oct. 11, 1995]

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18 CFR 284.5

§ 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. A pipeline may obtain an interpretation pursuant to subpart L of part 385 of this chapter
concerning whether particular rates and charges comply with the requirements of this part.
(b) Address. Requests for interpretations should be addressed to: FERC Part 284 Interpretations, Office of
General Counsel, Federal Energy Regulatory Commission, Washington, DC 20426.
[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.
(1) An interstate pipeline that provides transportation service under subpart B or G or this part must
offer such transportation service on a firm basis and separately from any sales service.
(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 means that the service is not subject to a prior claim by another customer or
another class of service and receives the same priority as any other class of firm service.
(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.
(1) An interstate pipeline or intrastate pipeline that offers transportation service on a firm basis under
subpart B, C or G must provide such service without undue discrimination, or preference, including
undue discrimination or preference in the quality of service provided, the duration of service, the
categories, prices, or volumes of natural gas to be transported, customer classification, or undue
discrimination or preference of any kind.
(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. Consistent with paragraph (b) of this section, a pipeline may impose
reasonable operational conditions on any service provided under this part. Such conditions must be filed
by the pipeline as part of its transportation tariff.

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18 CFR 284.7(d)

(d) Segmentation. An interstate pipeline that offers transportation service under subpart B or G of this part
must permit a shipper to make use of the firm capacity for which it has contracted by segmenting that
capacity into separate parts for its own use or for the purpose of releasing that capacity to replacement
shippers to the extent such segmentation is operationally feasible.
(e) Reservation fee. Where the customer purchases firm service, a pipeline may impose a reservation fee or
charge on a shipper as a condition for providing such service. Except for pipelines subject to subpart C of
this part, if a reservation fee is charged, it must recover all fixed costs attributable to the firm
transportation service, unless the Commission permits the pipeline to recover some of the fixed costs in
the volumetric portion of a two-part rate. A reservation fee may not recover any variable costs or fixed
costs not attributable to the firm transportation service. Except as provided in this paragraph, the pipeline
may not include in a rate for any transportation provided under subpart B, C or G of this part any minimum
bill or minimum take provision, or any other provision that has the effect of guaranteeing revenue.
(f) Limitation. A person providing service under Subpart B, C or G of this part is not required to provide any
requested transportation service for which capacity is not available or that would require the construction
or acquisition of any new facilities.
[Order 436, 50 FR 42493, Oct. 18, 1985]

Editorial Note: For FEDERAL REGISTER citations affecting § 284.7, see the List of CFR Sections Affected, which
appears in the Finding Aids section of the printed volume and at 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.
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18 CFR 284.8(e)

(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.
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18 CFR 284.8(h)(3)(iii)

(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.
(1) An interstate pipeline that provides firm transportation service under subpart B or G of this part must
also offer transportation service on an interruptible basis under that subpart or subparts and
separately from any sales service.
(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 means that the capacity used to provide the service is subject to a
prior claim by another customer or another class of service and receives a lower priority than such
other classes of service.
(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. No reservation fee may be imposed for interruptible service. A pipeline's rate for any
transportation service provided under this section may not include any minimum bill provision, minimum
take provision, or any other provision that has the effect of guaranteeing revenue.
[Order 436, 50 FR 42494, Oct. 18, 1985]

Editorial Note: For FEDERAL REGISTER citations affecting § 284.9, see the List of CFR Sections Affected, which
appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

§ 284.10 Rates.
(a) Applicability. Any rate charged for transportation service under subparts B and G of this part must be
established under a rate schedule that is filed with the Commission prior to commencement of such
service and that conforms to the requirements of this section.
(b) Rate objectives. Maximum rates for both peak and offpeak periods must be designed to achieve the
following three objectives:
(1) Rates for service during peak periods should ration capacity;
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18 CFR 284.10(b)(2)

(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 (1) Volumetric rates. Except as provided in § 284.7(e), any rate filed for service subject to this section
must be a one-part rate that recovers the costs allocated to the service to the extent that the
projected units of that service are actually purchased and may not include a demand charge, a
minimum bill or minimum take provision or any other provision that has the effect of guaranteeing
revenue. Such rate must separately identify cost components attributable to transportation, storage,
and gathering costs.
(2) Based on projected units of service. Any rate filed for service subject to this section must be
designed to recover costs on the basis of projected units of service. The fixed costs allocated to
capacity reservations, as determined in accordance with § 284.7(e), should be used along with the
projected nominations accepted by the pipeline to compute the unit reservation fee. The remaining
fixed costs and all variable costs should be used to determine the volumetric rate computed on the
basis of projected volumes to be transported. The units projected for the service in rates filed under
this section may be changed only in a subsequent rate filing under section 4 of the Natural Gas Act.
(3) Differentiation due to time and distance. Any rate filed for service subject to this section must
reasonably reflect any material variation in the cost of providing the service due to:
(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.
(i)

Any maximum rate filed under this section must be designed to recover on a unit basis, solely
those costs which are properly allocated to the service to which the rate applies.

(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.
(i)

Any rate schedule filed under this section must state a maximum rate and a minimum rate.

(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.
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18 CFR 284.11

[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 (1) General rule. Except as provided in paragraph (b)(2) of this section, at least 30 days prior to
commencing construction a company must file notification with the Commission of any activity
described in paragraph (a) of this section.
(2) Exception. The advance notification described in paragraph (b)(1) of this section is not required if the
cost of the project does not exceed the cost limit specified in Column 1 of Table I of § 157.208(d) of
this chapter.
(c) Contents of advance notification. The advance notification described in paragraph (b)(1) of this section
must include the following information:
(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. On or before May 1 of each year, a company must file (on electronic media
pursuant to § 385.2011 of this chapter, accompanied by 7 paper copies) an annual report that lists for the
previous calendar year each activity that is described in paragraph (a) of this section, and which was
completed during the previous calendar year and exempt from the advance notification requirement
pursuant to paragraph (b)(2) of this section. For each such activity, the company must include all of the
information described in paragraph (c) of this section.
[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.
(1) An interstate pipeline that transports gas under subparts B or G of this part must comply with the
business practices and electronic communications standards as promulgated by the North
American Energy Standards Board, as incorporated herein by reference in paragraphs (a)(1)(i)
through (vii) of this section.
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(i)

18 CFR 284.12(a)(1)(i)

Additional Standards (Version 3.2, August 15, 2020);

(ii) Nominations Related Standards (Version 3.2, August 15, 2020);
(iii) Flowing Gas Related Standards (Version 3.2, August 15, 2020);
(iv) Invoicing Related Standards (Version 3.2, August 15, 2020);
(v) Quadrant Electronic Delivery Mechanism Related Standards (Version 3.2, August 15, 2020);
(vi) Capacity Release Related Standards (Version 3.2, August 15, 2020); and
(vii) internet Electronic Transport Related Standards (Version 3.2, August 15, 2020).
(2) This incorporation by reference was approved by the Director of the Federal Register in accordance
with 5 U.S.C. 552(a) and 1 CFR part 51. Copies of these standards may be obtained from the North
American Energy Standards Board, 801 Travis Street, Suite 1675, Houston, TX 77002, Phone: (713)
356-0060. NAESB's website is at https://www.naesb.org/. Copies may be inspected at the Federal
Energy Regulatory Commission, Public Reference Room, 888 First Street NE, Washington, DC 20426,
Phone: (202) 502-8371, https://www.ferc.gov/, or at the National Archives and Records
Administration (NARA). For information on the availability of this material at NARA, email
fr.inspection@nara.gov, or go to: www.archives.gov/federal-register/cfr/ibr-locations.html.
(b) Business practices and electronic communication requirements. An interstate pipeline that transports gas
under subparts B or G of this part must comply with the following requirements. The regulations in this
paragraph adopt the abbreviations and definitions contained in the North American Energy Standards
Board Wholesale Gas Quadrant standards incorporated by reference in paragraph (a)(1) of this section.
(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.
(A) Pipelines must permit shippers acquiring released capacity to submit a nomination at the
earliest available nomination opportunity after the acquisition of capacity. If the pipeline
requires the replacement shipper to enter into a contract, the contract must be issued
within one hour after the pipeline has been notified of the release, but the requirement for
contracting must not inhibit the ability of the replacement shipper to submit a nomination
at the earliest available nomination opportunity.
(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.
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18 CFR 284.12(b)(1)(iii)

(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.
(i)

Operational balancing agreements. A pipeline must enter into Operational Balancing
Agreements at all points of interconnection between its system and the system of another
interstate or intrastate pipeline.

(ii) Netting and trading of imbalances. A pipeline must establish provisions permitting shippers and
their agents to offset imbalances accruing on different contracts held by the shipper with the
pipeline and to trade imbalances with other shippers where such imbalances have similar
operational impact on the pipeline's system.
(iii) Imbalance management. A pipeline with imbalance penalty provisions in its tariff must provide,
to the extent operationally practicable, parking and lending or other services that facilitate the
ability of its shippers to manage transportation imbalances. A pipeline also must provide its
shippers the opportunity to obtain similar imbalance management services from other
providers and shall provide those shippers using other providers access to transportation and
other pipeline services without undue discrimination or preference.
(iv) Operational flow orders. A pipeline must take all reasonable actions to minimize the issuance
and adverse impacts of operational flow orders (OFOs) or other measures taken to respond to
adverse operational events on its system. A pipeline must set forth in its tariff clear standards
for when such measures will begin and end and must provide timely information that will
enable shippers to minimize the adverse impacts of these measures.
(v) Penalties. A pipeline may include in its tariff transportation penalties only to the extent
necessary to prevent the impairment of reliable service. Pipelines may not retain net penalty
revenues, but must credit them to shippers in a manner to be prescribed in the pipeline's tariff.
A pipeline with penalty provisions in its tariff must provide to shippers, on a timely basis, as
much information as possible about the imbalance and overrun status of each shipper and the
imbalance of the pipeline's system.
(3) Communication protocols.
(i)
(A) All electronic information provided and electronic transactions conducted by a pipeline
must be provided on the public Internet. A pipeline must provide, upon request, private
network connections using internet tools, internet directory services, and internet
communication protocols and must provide these networks with non-discriminatory
access to all electronic information. A pipeline may charge a reasonable fee to recover the
costs of providing such an interconnection.
(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:

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18 CFR 284.12(b)(3)(ii)(A)

(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 crossreference 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.
(i)

A pipeline is authorized to share non-public, operational information with a public utility, as
defined in § 38.2(a) of this chapter or another pipeline covered by this section, for the purpose
of promoting reliable service or operational planning.

(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 citations affecting § 284.12, see the List of CFR Sections Affected, which
appears in the Finding Aids section of the printed volume and at 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. The pipeline must comply with the requirements in Part 358, Part 250, and Part 260 of
this chapter, where applicable.
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18 CFR 284.13(b)

(b) Reports on firm and interruptible services. An interstate pipeline must post the following information on its
Internet web site, and provide the information in downloadable file formats, in conformity with § 284.12 of
this part, and must maintain access to that information for a period not less than 90 days from the date of
posting.
(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;

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18 CFR 284.13(b)(2)(iv)

(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.
(1) On the first business day of each calendar quarter, an interstate pipeline must file with the
Commission an index of all its firm transportation and storage customers under contract as of the
first day of the calendar quarter that complies with the requirements set forth by the Commission.
The Commission will establish the requirements and format for such filing. The index of customers
must also posted on the pipeline's Internet web, in accordance with standards adopted in § 284.12
of this part, and made available from the Internet web site in a downloadable format complying with
the specifications established by the Commission. The information posted on the pipeline's Internet
web site must be made available until the next quarterly index is posted.
(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.

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18 CFR 284.13(c)(5)

(5) The requirements for the electronic index can be obtained from the Federal Energy Regulatory
Commission, Division of Information Services, Public Reference and Files Maintenance Branch,
Washington, DC 20426.
(d) Capacity and flow information.
(1) An interstate pipeline must provide on its Internet web site and in downloadable file formats, in
conformity with § 284.12 of this part, equal and timely access to information relevant to the
availability of all transportation services whenever capacity is scheduled, including, but not limited
to, the availability of capacity at receipt points, on the mainline, at delivery points, and in storage
fields, whether the capacity is available directly from the pipeline or through capacity release, the
total design capacity of each point or segment on the system, the amount scheduled at each point or
segment whenever capacity is scheduled, and all planned and actual service outages or reductions
in service capacity. An interstate pipeline must also provide information about the volumes of nonotice transportation provided pursuant to § 284.7(a)(4). This information must be posted at each
receipt and delivery point before 11:30 a.m. central clock time three days after the day of gas flow
and must reflect the pipeline's best estimate. Updated information must be posted at each receipt
and delivery point as necessary within ten business days after the month of gas flow.
(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. An interstate pipeline that provides transportation (except storage) 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 company and the
local distribution company's appropriate regulatory agency in writing of the proposed transportation prior
to commencement.
(f) Location codes. An interstate pipeline must maintain a posting on its publicly available Internet Web site
of the pipeline's location names and codes for all current and inactive receipt and delivery points on its
system, including, for each point: Direction of flow, the location of the point, the location zone if such
exists, the Commission company identification code (CID), if any, of the upstream and/or downstream
entity, the location type, the current status as active and inactive, and the date(s) the point becomes active
or inactive. The pipeline must provide the information in downloadable file formats, in conformity with the
requirements of 18 CFR 284.12 of this chapter.
[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]

§ 284.14 Posting requirements of major non-interstate pipelines.
(a) Daily posting requirement. A major non-interstate pipeline must post on a daily basis on a publiclyaccessible Internet Web site and in downloadable file format equal and timely access to information
regarding receipt or delivery points, including non-physical scheduling points.

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18 CFR 284.14(a)(1)

(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. The following categories of major non-interstate pipelines are
exempt from the posting requirement of § 284.14(a):
(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]
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18 CFR 284.15

§ 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 basis, unless each affiliate has an independent business
reason for submitting a bid.
(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

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18 CFR 284.102(d)(3)

(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.

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18 CFR 284.123

[Order 436, 50 FR 42495, Oct. 18, 1985, as amended by Order 537, 56 FR 50245, Oct. 4, 1991; Order 537-A, 57 FR 46501, Oct. 9,
1992; Order 581, 60 FR 53073, Oct. 11, 1995; Order 756, 77 FR 4894, Feb. 1, 2012]

§ 284.123 Rates and charges.
(a) General rule. Rates and charges for transportation of natural gas authorized under § 284.122(a) shall be
fair and equitable as determined in accordance with paragraph (b) of this section.
(b) Election of rates.
(1) Subject to the conditions in §§ 284.7 and 284.9 of this 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.

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18 CFR 284.123(c)

(c) Treatment of revenues. The Commission presumes that all revenues received by an intrastate pipeline in
connection with transportation authorized under § 284.122(a) and computed in accordance with
paragraph (b)(1) of this section have been or will be taken into account by the appropriate state regulatory
agency for purposes of establishing transportation charges by the intrastate pipeline for service to
intrastate customers.
(d) Presumptions. If the intrastate pipeline is charging a rate computed pursuant to § 284.123(b)(1), the rate
charged is presumed to be:
(1) Fair and equitable; and
(2) Not in excess of the rates and charges which interstate pipelines would be permitted to charge for
providing similar transportation service.
(e) Filing requirements. Within 30 days of commencement of new service, any intrastate pipeline that
engages in transportation arrangements under this subpart must file with the Commission a statement
that includes the pipeline's interstate rates, the rate election made pursuant to paragraph (b) of this
section, and a description of how the pipeline will engage in these transportation arrangements, including
operating conditions, such as quality standards and financial viability of the shipper. If the pipeline
changes its operations, rates, or rate election under this subpart, it must amend the statement and file
such amendments not later than 30 days after commencement of the change in operations or the change
in rate election.
(f) Electronic filing of statements, and related materials (1) General rule. All filings made in proceedings initiated under this part must be made electronically,
including rates and charges, or parts thereof, and material related thereto, statements, and all
workpapers.
(2) Requirements for signature. All filings must be signed in compliance with the following:
(i)

The signature on a filing constitutes a certification that the contents are true to the best
knowledge and belief of the signer, and that the signer possesses full power and authority to
sign the filing.

(ii) A filing must be signed by one of the following:
(A) The person on behalf of whom the filing is made;
(B) An officer, agent, or employee of the company, governmental authority, agency, or
instrumentality on behalf of which the filing is made; or,
(C) A representative qualified to practice before the Commission under § 385.2101 of this
chapter who possesses authority to sign.
(iii) All signatures on the filing or any document included in the filing must comply, where applicable,
with the requirements in § 385.2005 of this chapter with respect to sworn declarations or
statements and electronic signatures.
(3) Format requirements for electronic filing. The requirements and formats for electronic filing are listed
in instructions for electronic filing and for each form. These formats are available on the Internet at
http://www.ferc.gov and can be obtained at the Federal Energy Regulatory Commission, Public
Reference Room, 888 First Street, NE., Washington, DC 20426.
(g) Election of Notice Procedures 18 CFR 284.123(g) (enhanced display)

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18 CFR 284.123(g)(1)

(1) Applicability. An intrastate pipeline filing for approval of rates, a statement of operating conditions,
and any amendments or modifications thereto pursuant to this section may use the notice
procedures in this paragraph. Any intrastate pipeline electing to use these notice procedures for a
filing must clearly state its election to use these procedures in the filing. Such filing is approved and
the rates deemed fair and equitable and not in excess of the amount that an interstate pipeline
would be permitted to charge for similar transportation service if the requirements in paragraph
(g)(8) of this section have been fulfilled.
(2) Rejection of filing. The Director of the Office of Energy Market Regulation or his designee shall reject
within 7 days of the date of filing a request which patently fails to comply with the provisions of
paragraph (e) or (f) of this section, without prejudice to the intrastate pipeline refiling a complete
application. If such filing was required by this section, that filing must be refiled within 14 days of the
date of the rejection.
(3) Publication of notice of filing. The Secretary of the Commission shall issue a notice of the filing
within 10 days of the date of the filing, which will then be published in the FEDERAL REGISTER. The
notice shall designate a deadline for filing interventions, initial comments, final comments, and
protests to the filing. The deadline for interventions and initial comments shall be 21 days after the
date of the filing or such other date established by the Secretary of the Commission. The deadline
for final comments and protests shall be 60 days after the date of the filing or such other date
established by the Secretary of the Commission.
(4) Protests.
(i)

Any person or the Commission's staff may file a protest prior to the deadline for protests.

(ii) Protests shall be filed with the Commission in the form required by Part 385 of this chapter
including a detailed statement of the protestor's interest in the filing and the specific reasons
and rationale for the objection and whether the protestor seeks to be an intervenor.
(5) Effect of protest. If a protest is filed in accordance with paragraph (g)(4) of this section, then the
intrastate pipeline, the person who filed the protest, any intervenors and Commission staff shall have
30 days from the deadline for filing protests established by the Secretary of the Commission in
accordance with paragraph (g)(3) of this section, to resolve the protest, and to file a withdrawal of
the protest pursuant to paragraph (g)(6) of this section. Informal settlement conferences may be
convened by the Director of the Office of Energy Market Regulation or his designee during this 30 day
period. If a protest is not withdrawn or dismissed by end of that 30 day period, the filing shall not be
deemed approved pursuant to this paragraph. Within 60 days from the deadline for filing protests
established by the Secretary of the Commission in accordance with paragraph (g)(3) of this section
the Commission will establish procedures to resolve the proceeding.
(6) Withdrawal of protests. The protestor may withdraw a protest by submitting written notice of
withdrawal to the Secretary of the Commission pursuant to § 385.216 of this chapter and serving a
copy on the intrastate pipeline, any intervenors, and any person who has filed a motion to intervene
in the proceeding.
(7) Amendments or modifications to tariff records prior to approval. An intrastate pipeline may file to
amend or modify a tariff record contained in the initial filing pursuant to the procedures under this
paragraph (g) which has not yet been approved pursuant to paragraph (g)(8) of this section. Such
filing will toll the notice period established in paragraph (g)(3) of this section and the Secretary of the
Commission will issue a notice establishing new deadlines for comments and protests for the entire
filing pursuant to paragraph (g)(3).
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18 CFR 284.123(g)(8)

(8) Final approval.
(i)

If no protest is filed within the time allowed by the Secretary of the Commission under
paragraph (g)(3) of this section, the filing by the intrastate pipeline is approved, effective on the
date proposed in the filing requesting approval unless the intrastate pipeline withdraws,
amends, or modifies its filing or the filing is rejected pursuant to paragraph (g)(2) of this
section.

(ii) If any protest is filed within the time allowed by the Secretary of the Commission under
paragraph (g)(3) of this section and is subsequently withdrawn before the end of the 30-day
reconciliation period provided by paragraph (g)(5) of this section, the filing by the intrastate
pipeline is approved effective on the date proposed in the filing requesting approval unless the
intrastate pipeline withdraws, amends, or modifies its filing or the filing is rejected pursuant to
paragraph (g)(2) of this section.
(9) Periodic rate review. Rates of pipelines approved by the Commission pursuant to this paragraph are
required to be periodically reviewed.
(i)

Any intrastate pipeline with rates so approved must file an application for rate approval under
this section on or before the date five years following the date it filed the application for
authorization of rates pursuant to this paragraph. Any Hinshaw pipeline that has been a granted
a blanket certificate under § 284.224 of this chapter and with rates approved pursuant to this
paragraph must on or before the date five years following the date it filed the application for
authorization of the rates pursuant to this paragraph either file under this section cost,
throughput, revenue and other data, in the form specified in § 154.313 of this chapter, to allow
the Commission to determine whether any change in rates is required pursuant to section 5 of
the Natural Gas Act or an application for rate authorization pursuant to this section.

(ii) An intrastate pipeline with rates approved pursuant to the rate election in paragraph (b)(1) of
this section that remain unchanged during the five-year review period which were approved
based on then effective state rates may file a certification with the Commission pursuant to this
paragraph (g) that the rates continue to comply on the same basis with the requirements set
forth in paragraph (b)(1) of this section. Such certification of rates will meet the periodic rate
review requirement set forth in this paragraph (g)(9) unless the Commission determines that
further proceedings concerning the rates are appropriate.
(iii) If the state rate used pursuant to paragraph (b)(1) of this section for approval of a rate pursuant
to this paragraph (g) is changed, not later than 30 days after that changed rate becomes
effective, the intrastate pipeline must file a new rate election pursuant to paragraph (b) of this
section.
(10) Withdrawal of filing prior to approval. A pipeline may, pursuant to paragraph (h) of this section,
withdraw in its entirety a filing made pursuant to paragraph (g) that has not been approved by filing a
withdrawal motion with the Commission. A filing that is withdrawn will not fulfill the requirements
under paragraph (g)(8) of this section.
(h) Withdrawal of filing. A pipeline may withdraw in its entirety a filing pursuant to this section that has not
been approved by filing a withdrawal motion with the Commission.

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18 CFR 284.123(h)(1)

(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]

§ 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. 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) Form No. 549D, Quarterly Transportation and Storage Report of Intrastate Natural Gas and Hinshaw
Pipelines.
(1) Each intrastate pipeline must use Form No. 549D to file a quarterly report with the Commission and
the appropriate state regulatory agency that contains, for each transportation and storage service
provided during the preceding calendar quarter under § 284.122, the following information on each
transaction, aggregated by contract:
(i)

The full legal name, and identification number, of the shipper receiving the service, including
whether there is an affiliate relationship between the pipeline and the shipper;

(ii) The type of service performed (i.e., firm or interruptible transportation, storage, or other service);
(iii) The rate charged under each contract, specifying the rate schedule/name of service and docket
where the rates were approved. The report should separately state each rate component set
forth in the contract (i.e., reservation, usage, and any other charges);
(iv) The primary receipt and delivery points covered by the contract, identified by the list of points
that the pipeline has published with the Commission;
(v) The quantity of natural gas the shipper is entitled to transport, store, or deliver under each
contract;
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18 CFR 284.126(b)(1)(vi)

(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). One copy of the report must be retained by the respondent in its files.
(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]
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18 CFR 284.221

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. 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 authorized 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.

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18 CFR 284.221(e)

(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 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.

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[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 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. Applications for blanket certificates must be accompanied by the fee prescribed in
§ 381.207 of this chapter or a petition for waiver pursuant to § 381.106 of this chapter, and shall state:
(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;

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18 CFR 284.224(c)(3)

(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, as contemplated by § 157.9 of this
chapter, which will briefly summarize the facts contained in the application in such way as to
acquaint the public with its scope and purpose; and
(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.
(1) Any certificate granted under this section will authorize the certificate holder to engage in
transactions of the type authorized by subparts C and D of this part.
(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.
(1) Except as provided in paragraph (e)(2) of this section, any transaction authorized under a blanket
certificate is subject to the same rates and charges, terms and conditions, and reporting
requirements that apply to a transaction authorized for an intrastate pipeline under subparts C and D
of this part.
(2) Rate election. If the certificate holder does not have any existing rates on file with the appropriate
state regulatory agency for city-gate service, the certificate holder may make the rate election
specified in § 284.123(b)(1) only if:
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(i)

18 CFR 284.224(e)(2)(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. The volumes of natural gas sold or assigned under the blanket certificate may not
exceed the volumes obtained from sources other than interstate supplies.
(4) Filings. Any filings made with the Commission that report individual transactions shall reference the
docket number of the proceeding in which the blanket certificate was granted.
(5) Filing Requirements. Filings under this section must comply with the requirements of § 284.123 (f) of
this part. The tariff filing requirements of Part 154 of this chapter shall not apply to transactions
authorized by the blanket certificate.
(f) Pregrant of abandonment. Abandonment of transportation services or sales, pursuant to section 7(b) of
the Natural Gas Act, is authorized upon the expiration of the contractual term of each individual
arrangement authorized by a blanket certificate under this section.
(g) Hinshaw pipeline without blanket certificate. A Hinshaw pipeline that does not obtain a blanket certificate
under this section is not authorized to sell or transport natural gas as an intrastate pipeline under
subparts C and D of this part.
(h) Definitions. For the purposes of this section:
(1) A Hinshaw pipeline means any person engaged in the transportation of natural gas which is not
subject to the jurisdiction of the Commission under the Natural Gas Act solely by reason of section
1(c) of the Natural Gas Act.
(2) Interstate supplies means any natural gas obtained, either directly or indirectly, from:
(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. A blanket certificate shall issue under this section to any intrastate pipeline that
receives natural gas produced in adjacent Federal waters or onshore or offshore in an adjacent state,
provided that:
(1) The gas must be received by the intrastate pipeline from a gatherer or other intrastate pipeline;
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18 CFR 284.227(a)(2)

(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. If an intrastate pipeline is providing a transportation service described in paragraph (a) of
this section as of February 1, 1992, and the service is not a qualifying service under § 284.122 of subpart
C of this part, a blanket certificate shall issue under paragraph (a) of this section and become effective as
of February 1, 1992. If an intrastate pipeline is not providing a transportation service described in
paragraph (a) of this section as of February 1, 1992 the blanket certificate shall issue and become
effective on the date that the intrastate pipeline commences such a service that is not a qualifying service
under § 284.122 of subpart C of this part.
(c) Acceptance of certificate. An intrastate pipeline shall be deemed to have accepted a blanket certificate
under this section if it continues after February 1, 1992, a service described in paragraph (a) of this
section that is not a qualifying service under § 284.122 of subpart C or commences such a service after
November 4, 1991.
(d) Terms and conditions. An intrastate pipeline's blanket certificate transportation authority under this
section is subject to its compliance with all terms and conditions of subpart C of this part, except that
service under this section does not have to be on behalf of an interstate pipeline or local distribution
company served by an interstate pipeline.
(e) Pregrant of abandonment. Abandonment of transportation services, pursuant to section 7(b) of the
Natural Gas Act, is authorized upon the expiration of the contractual term of each individual arrangement
authorized by a blanket certificate under this section.
(f) Effect of certificate. Acceptance of a certificate issued under this section or conduct of activity authorized
under this section will not subject the certificate holder to the Natural Gas Act jurisdiction of the
Commission except to the extent necessary to enforce the terms and conditions of the 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:
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18 CFR 284.262 “Emergency”

Emergency means:
(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 means the level of gas volumes to be delivered by the company for each customer and
additional gas volumes needed by a customer due solely to a weather-induced increase in requirements.
Emergency natural gas means natural gas sold, transported, or exchanged in an emergency natural gas
transaction.
Emergency natural gas transaction means the sale, transportation, or exchange of natural gas (including the
construction and operation of necessary facilities) conducted pursuant to this subpart, that is:
(1) Necessary to alleviate an emergency; and
(2) Not anticipated to extend for more than 60 days in duration.
Emergency facilities means any facilities necessary to alleviate the emergency within the time frame established
in § 284.264(b). Participants can seek permanent authority to operate the emergency facilities either
under the temporary certificate provisions of § 157.17 of this chapter or the prior notice provisions of §
157.208(b) of this chapter.
Participant means any first seller, interstate pipeline, intrastate pipeline, local distribution company or Hinshaw
pipeline that participates in an emergency natural gas transaction under this subpart.
Recipient means:
(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 means a pipeline that is exempt from the Natural Gas Act jurisdiction of the Commission by
reason of section 1(c) of the Natural Gas Act.
18 CFR 284.262 “Hinshaw pipeline” (enhanced display)

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18 CFR 284.263

[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.
(1) A participant must make every reasonable attempt to minimize use of emergency natural gas
transactions.
(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 (1) Emergency sale or transportation. An emergency natural gas transaction is limited to 60 consecutive
calendar days, except that such transaction may be continued for an additional 60 consecutive days
if:
(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

18 CFR 284.264(b)(1)(i)(B) (enhanced display)

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18 CFR 284.264(b)(1)(ii)

(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. The redelivery of emergency natural gas received under an
exchange arrangement must occur within 180 consecutive days following the termination of
deliveries of the emergency natural gas.

§ 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 (1) Rate on file. If an interstate pipeline has on file with the Commission an effective transportation rate
schedule that conforms to § 284.10, it must use volumetric rates based upon fully-allocated costs
and adjusted only for time and distance.
(2) Rate not on file. If an interstate pipeline does not have on file with the Commission a transportation
rate schedule that conforms to § 284.10, it may:
(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. An interstate pipeline may not include in its jurisdictional
rate base any cost associated with facilities installed and operated in connection with an emergency
natural gas transaction unless a certificate of public convenience and necessity has been issued
authorizing the costs. Absent a certificate, such facilities may only be used to conduct emergency natural
gas transactions or transactions authorized under section 311 of the NGPA.
[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. Rates and charges for transportation of emergency gas by intrastate pipelines authorized under
this subpart must be determined in accordance with § 284.123 of this chapter.

§ 284.268 Local distribution company emergency transportation rates.
(a) Rate on file. A local distribution company that has a rate on file with an appropriate state regulatory
agency for city-gate transportation services must determine its rates and charges for transportation of
emergency natural gas in accordance with § 284.123 of this chapter.

18 CFR 284.268(a) (enhanced display)

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18 CFR 284.268(b)

(b) Rate not on file. A local distribution company that does not have a rate on file with an appropriate state
regulatory agency for city-gate transportation services must determine its rates and charges for
transportation of emergency natural gas (per unit volume of emergency natural gas transported) in
accordance with § 284.224(e)(2)(ii) of this chapter.

§ 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. Within 48 hours after deliveries of emergency natural gas
commence, the purchasing participant must notify the Commission by email, facsimile or other written
report of the sale, stating, in the following sequences:
(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). Within 48 hours after deliveries
commence in an emergency natural gas transaction which does not involve the sale of emergency natural
gas, the recipient of emergency natural gas shall notify the Commission by email, facsimile or other
written report of the transportation, stating, in the following sequence:
(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.
18 CFR 284.270(b)(6) (enhanced display)

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18 CFR 284.270(c)

(c) Forty-eight hour report for exchanges. Within 48 hours after an exchange transaction for emergency
natural gas commences, the initial recipient of the exchange volumes must notify the Commission by
email, facsimile or other written report of the exchange, stating, in the following sequence:
(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. Within thirty days after the emergency natural gas transaction ends, the participant
that received the emergency natural gas shall file with the Commission a sworn statement and two
conformed copies thereof, which must include the following information in the following sequence:
(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]

18 CFR 284.270(d)(9) (enhanced display)

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18 CFR 284.271

§ 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 is gas sales service that is not sold separately from transportation service.
(b) Sales service includes firm or interruptible gas sales.
(c) Unbundled sales service is gas sales service that is sold separately from transportation service.
(d) Small customer is a customer that purchases gas from a pipeline under the pipeline's one-part imputed
load factor rate schedule on the effective date of the blanket certificate.
[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. An interstate pipeline that offers transportation service under subpart B or G of this part is
granted a blanket certificate of public convenience and necessity pursuant to section 7 of the Natural Gas
Act authorizing it to provide unbundled firm or interruptible sales in accordance with the provisions of this
section.
(b) Conversion to unbundled firm sales service and firm transportation service. On the effective date of the
pipeline's blanket certificate for unbundled sales services under paragraph (a) of this section, firm sales
entitlements under any firm sales service agreement for a bundled sales service are converted to an
equivalent amount of unbundled firm sales service and an equivalent amount of unbundled firm
transportation service.
(c) Conversion to unbundled interruptible sales service and interruptible transportation service. On the
effective date of the pipeline's blanket certificate for unbundled sales services under paragraph (a) of this
section, interruptible sales volumes under any interruptible sales service agreement for a bundled sales
service are converted to an equivalent amount of unbundled sales service and an equivalent amount of
unbundled interruptible transportation service.

18 CFR 284.284(c) (enhanced display)

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18 CFR 284.284(d)

(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. A pipeline that provided bundled sales service to a small customer before
the effective date of the blanket certificate granted in paragraph (a) of this section is required to offer a
sales service to that customer at a cost-based rate for one year from the effective date of the certificate.
The obligation to sell at the cost-based rate expires one year after the effective date of the certificate.
[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]

18 CFR 284.287(b) (enhanced display)

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18 CFR 284.288

§ 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,
issued by the Commission in Docket No. PL03-3-000 and any clarifications thereto. Seller must notify the
Commission as part of its FERC Form No. 552 annual reporting requirement in § 260.401 of this chapter
whether it reports its transactions to publishers of electricity and natural gas indices. In addition, Seller
must adhere to any other standards and requirements for price reporting as the Commission may order.
(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 (OCS) has the same meaning as found in section 2(a) of the OCSLA (43 U.S.C.
1331(a)); and
(b) OCS pipeline means an interstate natural gas pipeline that holds a certificate under section 7 of the NGA
authorizing the construction and operation of facilities on the OCS, and includes all of the OCS pipeline's
facilities that fall within the scope of the Commission's jurisdiction under section 7 of the NGA to the full
extent that such facilities are used or necessary to transport natural gas on or across the OCS between:
(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.
18 CFR 284.302(b)(2)(iii) (enhanced display)

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18 CFR 284.303

[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. For purposes of this subpart, an “affiliated marketer” is a person engaged in the “marketing”
of natural gas that is an “affiliate” of an interstate pipeline as those terms are defined in § 161.2 of this
chapter.
[Order 547, 57 FR 57959, Dec. 8, 1992]

§ 284.402 Blanket marketing certificates.
(a) Authorization. Any person who is not an interstate pipeline is granted a blanket certificate of public
convenience and necessity pursuant to section 7 of the Natural Gas Act authorizing the certificate holder
to make sales for resale at negotiated rates in interstate commerce of any category of gas that is subject
to the Commission's Natural Gas Act jurisdiction. A blanket certificate issued under Subpart L is a
certificate of limited jurisdiction which will not subject the certificate holder to any other regulation under
the Natural Gas Act jurisdiction of the Commission, other than that set forth in this Subpart L, by virtue of
the transactions under this certificate.
(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]
18 CFR 284.402(d) (enhanced display)

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18 CFR 284.403

§ 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,
issued by the Commission in Docket No. PL03-3-000 and any clarifications thereto. Seller must notify the
Commission as part of its FERC Form No. 552 annual reporting requirement in § 260.401 of this chapter
whether it reports its transactions to publishers of electricity and natural gas indices. In addition, Seller
shall adhere to any other standards and requirements for price reporting as the Commission may order.
(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:
18 CFR 284.503 (enhanced display)

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18 CFR 284.503(a)

(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. This statement must describe the geographic markets for storage
services in which the applicant seeks to establish that it lacks significant market power. It must
include the market related to the service for which it proposes to charge market-based rates. The
statement must explain why the applicant's method for selecting the geographic markets is
appropriate.
(2) Statement B - product market. This statement must identify the product market or markets for which
the applicant seeks to establish that it lacks significant market power. The statement must explain
why the particular product definition is appropriate.
(3) Statement C - the applicant's facilities and services. This statement must describe the applicant's
own facilities and services, and those of all parent, subsidiary, or affiliated companies, in the relevant
markets identified in Statements A and B in paragraphs (b)(1) and (2) of this section. The statement
must include all pertinent data about the storage facilities and services.
(4) Statement D - competitive alternatives. This statement must describe available alternatives in
competition with the applicant in the relevant markets and other competition constraining the
applicant's rates in those markets. Such proposed alternatives may include an appropriate
combination of other storage, local gas supply, LNG, financial instruments and pipeline capacity.
These alternatives must be shown to be reasonably available as a substitute in the area to be served
soon enough, at a price low enough, and with a quality high enough to be a reasonable alternative to
the applicant's services. Capacity (transportation, storage, LNG, or production) owned or controlled
by the applicant and affiliates of the applicant in the relevant market shall be clearly and fully
identified and may not be considered as alternatives competing with the applicant. Rather, the
capacity of an applicant's affiliates is to be included in the market share calculated for the applicant.
To the extent available, the statement must include all pertinent data about storage or other
alternatives and other constraining competition.
(5) Statement E - potential competition. This statement must describe potential competition in the
relevant markets. To the extent available, the statement must include data about the potential
competitors, including their costs, and their distance in miles from the applicant's facilities and
major consuming markets. This statement must also describe any relevant barriers to entry and the
applicant's assessment of whether ease of entry is an effective counter to attempts to exercise
market power in the relevant markets.
(6) Statement F - maps. This statement must consist of maps showing the applicant's principal facilities,
pipelines to which the applicant intends to interconnect and other pipelines within the area to be
served, the direction of flow of each line, the location of the alternatives to the applicant's service
offerings, including their distance in miles from the applicant's facility. The statement must include a
general system map and maps by geographic markets. The information required by this statement
may be on separate pages.

18 CFR 284.503(b)(6) (enhanced display)

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18 CFR 284.503(b)(7)

(7) Statement G - market-power measures. This statement must set forth the calculation of the market
concentration of the relevant markets using the Herfindahl-Hirschman Index. The statement must
also set forth the applicant's market share, inclusive of affiliated service offerings, in the markets to
be served. The statement must also set forth the calculation of other market-power measures relied
on by the applicant. The statement must include complete particulars about the applicant's
calculations.
(8) Statement H - other factors. This statement must describe any other factors that bear on the issue of
whether the applicant lacks significant market power in the relevant markets. The description must
explain why those other factors are pertinent.
(9) Statement I - prepared testimony. This statement must include the proposed testimony in support of
the application and will serve as the applicant's case-in-chief, if the Commission sets the application
for hearing. The proposed witness must subscribe to the testimony and swear that all statements of
fact contained in the proposed testimony are true and correct to the best of his or her knowledge,
information, and belief.

§ 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.
18 CFR 284.505(a)(2) (enhanced display)

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18 CFR Part 284 (up to date as of 11/28/2022)
Certain Sales and Transportation of Natural Gas Under the Nat...

18 CFR 284.505(b)

(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.

18 CFR 284.505(b) (enhanced display)

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