§ 2.58 Budget-type certificate applica tions-gas purchase facilities.

In accordance with the Commission's advice set forth in paragraph (e) of this section and unless prevented by other factors, such as interventions in opposition, we will issue budget-type authorizations to natural gas pipeline companies covering the construction and operation of gas purchase facilities, after hearing under the abridged procedure, upon applications for certificates of public convenience and necessity, filed under § 157.6 of this chapter, provided that:

(a) (1) The total estimated cost of the facilities to be installed in a given twelvemonth period does not exceed 11⁄2 percent of the applicant company's plant account or $5,000,000 whichever is the lesser.

(2) The total cost of any single project facilities to be installed during the authorization period does not exceed 25 percent of the total budget amount or $500,000, whichever is the lesser.

(b) Any application proposing the construction of facilities having an estimated total cost in excess of the amounts specified in paragraph (a) of this section shall be accompanied by a request for waiver of the provisions of such paragraph and will be granted only for good cause shown.

(c) The applicant agrees to file with the Commission, within sixty days after expiration of the authorization, a statement showing for each individual project:

(1) Description of facilities installed, i.e., miles and size of pipelines, compressor horsepower, metering facilities.

(2) Location of facilities.

(3) Actual installed cost of facilities subdivided by size of pipe, compressing, metering and appurtenant facilities. (4) Estimated recoverable gas serves in Mcf at 14.73 psia made available to applicant by means of the facilities.

(5) Names of fields connected.

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(6) The names of the independent producers from whom the gas is being purchased together with the respective dates of the gas sales contracts and the docket number of the related seller.

(d) "Gas purchase facilities" means those facilities necessary to connect the applicant's system with the facilities of a seller authorized by this Commission to make a sale for resale in interstate commerce to the applicant.

(e) In its Order No. 185, issued February 8, 1956, 15 FPC 793, 794; 21 F.R. 1485, the Commission advised any interested natural-gas company subject to the Natural Gas Act that it may file under § 157.6 of this chapter a single certificate application covering in general outline along the lines of a budget estimate the proposed routine construction intended to be undertaken by it during the current or ensuing fiscal year. A hearing could then be held on such a proposal and a certificate issued in accordance with the general application. At the end of the period, a statement shall be filed showing the actions taken under the certificate and any authority thereunder which was not exercised.

(Sec. 7, 56 Stat. 83; 15 U.S.C. 717f) [Order 247, 27 F.R. 5606, June 13, 1962, as amended by Order 281, 29 F.R. 5544, Apr. 25, 1964; Order 316, 31 F.R. 215, Jan. 7, 1966]

§ 2.59 Pipeline rate proceedings-procedure.

In order to more fully implement and utilize the procedures contemplated by Order No. 217 (22 FPC 872, 24 F.R. 946), designed to expedite hearings and shorten the records thereof, the procedure hereafter in pipeline rate proceedings which the Commission regards as suited to such techniques will be as follows:

(a) The Commission will give prompt public notice of the rate filing and fix therein a date for the filing of any petitions for or notices of intervention (see §§ 1.8(d) and 154.27 of this chapter, i.e., Rules of Practice and Procedure and Regulations Under the Natural Gas Act, respectively).

(b) Any suspension order issued by the Commission will designate the presiding examiner, who thereafter will control the proceeding until the completed record is certified to the Commission.

(c) Any Commission order granting intervention will direct the natural gas company proposing the rate change to serve copies of its filings upon all interveners promptly thereafter unless such service has already been effected pursuant to Part 154 of this chapter.

(d) The suspension order will also fix the date by which the Commission staff and all interveners proposing to present evidence shall serve their testimony and exhibits upon the presiding examiner and all parties. This date may be de

ferred (or parties permitted to file supplementary evidence at a later date) by the examiner in exceptional cases upon a showing of good cause for the delay. But no such extensions should be permitted to seriously impair the ability of the Commission to reach a prompt decision in the case.

(e) The suspension order will ordinarily fix the date for a prehearing conference to be held pursuant to the provisions of § 1.18 of this chapter (Commission's Rules of Practice and Procedure), such date to be reasonable, soon after the distribution of such staff and intervener evidence. The presiding examiner may, in his discretion, pursuant to § 1.18 of this chapter, convene such other conferences, either before or after the date of the conference fixed in the suspension order, as he may deem useful to expedite the conclusion of the proceeding.

(f) The conference set by the Commission's suspension order shall be an integral part of the proceeding. All parties will be expected to give adequate study, in advance of such conference, to all material distributed in the case. They will be expected to come to the prehearing conference fully prepared for a useful discussion of all problems involved in the proceeding, both procedural and substantive, and fully authorized to make commitments with respect thereto. A primary purpose of this conference will be to exclude immaterial and irrevelant evidence, stipulate non-controverted facts, and define the issues. The prehearing conference will ordinarily be the last stage of the proceeding in which to raise new issues or request permission to file supplemental testimony.

(g) At the conclusion of the prehearing conference the presiding examiner will set the date for service by the applicant of its rebuttal case, if any, and will at the same time fix a date as early as possible after such service date for hearing on the issues remaining to be tried.

(h) The hearing, when commenced, shall be continuous except where the examiner finds that extraordinary circumstances preclude such procedure and shall include full and complete crossexamination of all witnesses on the issues to be tried.

(i) Notwithstanding the provisions of §1.18(e) of this chapter (Rules of Prac

tice and Procedure), relating to offers of settlement, the established schedule of the proceeding will not be interrupted by settlement conferences unless ordered by the presiding examiner or the Commission upon a finding that such a conference might be fruitful, and that the public interest would be served by an interruption for such purpose.

(j) The ultimate goal sought by these provisions is to develop a practice in which the actual trial-type hearing will be devoted solely to the critical problems which are the subject of unresolvable controversy, and which by their nature require and justify development in open hearing through the interrogation of witnesses-a practice under which all other matters will be dealt with and disposed of outside of the trial itself. It is expected that under such a system the parties will come into the trial itself prepared to deal with the critical problems in an expeditious and effective manner. (Secs. 4, 5, 15, 52 Stat. 822, 823, 828, 76 Stat. 72; 15 U.S.C. 717c, 717d, 717n) [Order 257, 27 F.R. 11002, Nov. 10, 1962]

§ 2.60 Facilities and activities during an emergency-accounting treatment of defense-related expenditures.

The Commission, cognizant of the need of the natural gas industry for advice with respect to the applicability of the Natural Gas Act and the Commission's regulations thereunder regarding activities and operations of natural gas companies taking security measures in preparation for a possible national emergency, sets forth the following interpretation and statement of policy:

of

(a) Facilities. The definition "auxiliary installations" in § 2.55(a) for which no certificate authority is necessary includes such defense-related facilities as (1) fallout shelters at compressor stations and other operating and maintenance camps; (2) emergency company headquarters or other similar installations; and (3) emergency communication equipment.

(b) The Commission will consider reasonable investment in defense-related facilities, such as those described in paragraph (a), of this section, to be "prudent investment" for ratemaking purposes.

(c) When a person, not otherwise subject to the jurisdiction of the Commission, files an application for a certificate of public convenience and necessity au

thorizing the construction of facilities to be used solely for operation in a national emergency for the delivery of gas to, or receipt of gas from, a person subject to the Commission's jurisdiction, the Commission will consider a request by such applicant for waiver of the requirement to keep and maintain its accounts in accordence with the Uniform System of Accounts for Natural Gas Companies (Parts 201, 204, and 205 of this chapter) or to file the annual reports to the Commission required by §§ 260.1 and 260.2 of this chapter.

(Secs. 4, 5, 7, 52 Stat. 822, 823, 56 Stat. 84, 76 Stat. 72; 15 U.S.C. 717c, 717d, 717f) [Order 274, 28 F.R. 12866, Dec. 4, 1963]

$2.61 Pipeline companies-natural gas reserves-deliverability life.

Simultaneously with its promulgation of the annual report, FPC Form No. 15, to be filed by certain pipeline companies with respect to total gas supply and deliverability (§ 260.7 of this chapter), the Commission issued the following statement of policy:

(a) When a pipeline company has demonstrated through the annual reports filed pursuant to § 260.7 of this chapter that it has an active gas procurement organization and its pipeline system extends into production areas in which exploration is continuing, the twelve-year deliverability life heretofore found to be a primary requisite by the Commission will not necessarily be applied and the Commission's deliverability requirement will be flexible.1

(b) Unless otherwise ordered by the Commission, existing pipeline companies will not be required to file information with regard to gas supply and deliverability in support of pipeline system expansions, other than with respect to applications to serve major new markets or to serve existing markets from new sources of gas supply by new routes involving extensive expansion of existing

1 "Deliverability" as used herein represents the number of future years during which a pipeline company can meet its annual requirements for its presently certificated delivery capacity from presently committed sources of supply. The availability of gas from these sources of supply shall be governed by the physical capabilities of these sources to deliver gas, by the terms of existing gas-purchase contracts and limitations imposed by state or federal regulatory agencies.

facilities, but may rely on the information set forth in filed annual reports, by reference thereto (§ 157.13(b) of this chapter).

(c) The deliverability life showing of a new pipeline company seeking to initiate service, or of an existing pipeline company seeking to serve major new markets or to serve major existing markets from new sources of supply over new routes will be dependent upon the future availability of gas in its proposed new supply areas, but in no event shall the minimum deliverability life of the incremental supply needed to serve the new or expanded market be less than twelve years.

(Secs. 7, 10(a), 14(a), 52 Stat. 825, 826, 828, 56 Stat. 83; 15 U.S.C. 717f, 7171(a), 717m (a)) [Order 279, 29 F.R. 4874, Apr. 7, 1964] § 2.62 Pipeline certificate proceedingsprocedure.

In order to more fully implement and utilize the procedures contemplated by Order No. 217 (22 FPC 872, 24 F.R. 946), designed to expedite hearings and shorten records, the procedure hereafter in pipeline certificate proceedings which the Commission regards as suited to such techniques will be as follows:

(a) The Commission will give prompt public notice of the application and fix a date for the filing of any petitions for or notices of intervention (see §§ 1.8(d) and 157.10 of this chapter, i.e., Rules of Practice and Procedure and Regulations Under the Natural Gas Act, respectively).

(b) Once it is determined that the proceeding will be contested, the Commission will fix a date for hearing, will require the filing of written testimony and hearing exhibits (as provided in §§ 157.14 and 157.16 of this chapter), and will designate the presiding examiner, who thereafter will control the proceeding until the completed record is certified to the Commission, unless otherwise ordered by the Commission.

(c) Any Commission order granting intervention will direct the natural gas company filing an application to serve copies of its filings upon all interveners promptly thereafter unless such service has already been made pursuant to Part 157 of this chapter.

(d) The hearing, when commenced, shall be continuous except where the examiner finds that extraordinary circum

stances preclude such procedure and shall include full and complete cross-examination of all witnesses on the issues to be tried.

(Secs. 7, 15, 52 Stat, 824, 829; 56 Stat. 83, 84; 15 U.S.C. 7171, 717n) [Order 280, 29 F.R. 4875, Apr. 7, 1964]

§ 2.63 Express refund conditions in certain temporary certificates of public convenience and necessity issued to independent producers of natural

gas.

For the purpose of protecting consumers from the exaction of out-of-line rates, temporary certificates authorizing sales of natural gas by independent producers in areas where just and reasonable rates have not been determined will contain an express refund condition fixed at a level 2 cents below the applicable guideline rate set forth in the statement of general policy No. 61-1, as amended (§ 2.56), or the previously determined applicable in-line rate, whichever is lower, together with a proportional adjustment for B.t.u.'s of less than 1,000 per cubic foot, measured or. a wet basis.

(Sec. 7, 52 Stat. 825, 56 Stat. 83; 15 U.S.C. 717f (c), 717f(e)) [Order 336, 32 F.R. 2845, Feb. 14, 1967]

§ 2.64 Independent producers; transfer of producing acreage; procedure. (a) A natural gas producer who transfers all or part of his producing acreage to another does not have to apply for an amendment to his existing certificate of public convenience and necessity authorizing the sale if the new producer is required to obtain a certificate to sell gas from the property, i.e., in those cases where gas is being produced from the assigned acreage or, if the acreage is nonproductive at the time of transfer if the assignee initiates a sale for resale in interstate commerce. In those cases where the assigned acreage is not productive at the time of transfer, the assignor must obtain Commission authorization to delete such acreage, either pursuant to an application to amend his existing certificate to delete the assigned acreage or by filing an application under section 7(b) of the Natural Gas Act to abandon service from that acreage, unless, within 1 year from the date of the assignment the successor in interest files an application for certificate authorization to sell the gas for resale in interstate commerce.

(b) A producer who transfers part of his acreage to a successor must file the instruments of assignment as supplements to his FPC rate schedules, as required by § 154.97 of this chapter. The successor producer must obtain certificate approval to continue the sale and must file the gas purchase contracts and instruments of assignment as his own rate schedules, as required by §154.92(d) of this chapter.

(Sec. 7, 52 Stat. 825, 56 Stat. 83; 15 U.S.C. 717f (c), 717f (e)) [Order 340, 32 F.R. 5990, Apr. 14, 1967]

3.168

Abandonment.

Certificates.

3.169 State compacts.

3.170 Approved forms, etc.

Sec.

3.735-23 Notice and receipt.

3.735-24 Definitions.

3.735-25

3.735-26

3.735-27

3.735-28

3.735-30

Statements of employment and financial interests.

3.735-29 Interpretation and advisory service. Procedure for reviewing statements of employment and financial interests and reporting conflicts of interest.

3.735-31 Disciplinary and other remedial

action,

3.735-32 Miscellaneous statutes and regulations.

Subpart A-Organization; Delegations of Authority

AUTHORITY: The provisions of this Subpart A issued under sec. 16, 52 Stat. 830, sec. 309, 49 Stat. 858, sec. 3, 60 Stat. 238; 15 U.S.C. 7170, 16 U.S.C. 825h, 5 U.S.C. 552.

§3.1

Purpose.

This subpart describes the central and field organization of the Federal Power Commission, including delegations of final authority and the established places at which, and methods whereby, the public may secure information or make submittals or requests. This subpart also describes the plan of organization and operation which will be observed by this Commission in discharging its lawful duties and responsibilities in the event of an armed attack upon the United States, its territories and possessions, in the event of official notification of the likelihood or imminence of such attack or at a time specified by authority of the President, whichever may first occur.

[Order 351, 32 F.R. 10064, July 8, 1967]

§ 3.2 Nature and responsibilities of the Commission.

The Federal Power Commission, established as an independent agency of the Federal Government by the Act of June 23, 1930 (46 Stat. 797), is responsible for: Administration and enforcement of the Federal Power Act and the Natural Gas Act; certain duties under the Flood Control Act of 1938 and subsequent Flood Control Acts, the River and Harbor Act of 1945 and subsequent River and Harbor Acts, and a number of other statutes, pertaining principally to Federal power projects; and certain