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(C) Fuel Price Computation.

(1) The delivered price of the proposed fuel to be burned (FPB;) must reflect the real escalation rate of the proposed fuel, and must be computed with Equation EQ II-3. EQ-II-3 is: FPB;=MPB (PX) where: FPB;=Price of the proposed fuel (distillate

oil, residual oil, or natural gas) in year i. MPB=The current delivered market price

of the proposed fuel. PX;=The fuel price index value in year i,

computed with Equation II-1.

(d) Fuel Price Computation-Alternate Fuel. The delivered price of alternate fuel (PFA) must reflect the real escalation rate of alternate fuel and must be computed with Equation II 4. Equation II 4 is:

PFA;=APFxapx; where: PFA=The price of the alternate fuel in

year i. APF-i=The current market price of the al

ternate fuel f.o.b. the facility). APX;=The alternate fuel price index value

for year i, computed with Equation II-1. In most cases the alternate fuel will be coal. The petitioner must use Equation II-1 (paragraph (b)) to compute the escalation rate (APXi). If an alternate fuel other than coal is proposed the source or the derivation of the index must be fully documented and be contained in the evidential summary. (54 FR 52896, Dec. 22, 1989)

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(2) When planning to use more than one fuel in the proposed unit(s), the petitioner must use Equation II-1 and Equation II-3 to calculate the annual fuel price of each fuel to be used. The petitioner then must estimate the proportion of each fuel to be burned annually over the useful life of the unit(s). With these proportions and the respective annual fuel prices for each fuel, the petitioner must compute an annual weighted average fuel price. The methodology used to calculate the weighted average fuel price must follow standard statistical procedures and be fully documented within the petition.






Sec. 580.01 Purpose. 580.02 Definitions. 580.03 Curtailment priorities. 580.04 Administrative procedures. (Re

served) AUTHORITY: Secs. 401, 403, Pub. L. 95-621, 92 Stat. 3394-3395, 3396; secs. 301(b), 402(a), Pub. L. 95-91, 91 Stat. 578, 594, (42 U.S.C. 7115(b), 7117(a)); E.O. 12009, 42 FR 46267.

SOURCE: 44 FR 15646, Mar. 15, 1979, unless otherwise noted.

g580.01 Purpose.

The purpose of this part is to implement the authority granted to the Secretary of Energy in section 401 of the Natural Gas Policy Act of 1978, Public Law 95-621, 92 Stat. 3394-3395 (1978).

8580.02 Definitions.

(a) Terms defined in section 2 of the Natural Gas Policy Act of 1978 shall have the same meaning, as applicable, for purposes of this part, unless further defined in paragraph (b) of this section.

(b) The following definitions are applicable to this part:

(1) Commercial establishment means any establishment, (including institutions and local, state and federal government agencies) engaged primarily in the sale of goods or services, where natural gas is used for purposes other than those involving manufacturing or electric power generation.

(2) Essential agricultural use means any use of natural gas:

(i) For agricultural production, natural fiber production, natural fiber processing, food processing, food quality maintenance, irrigation pumping, crop drying; or

(ii) As a process fuel or feedstock in the production of fertilizer, agricultural chemicals, animal feed, or food which the Secretary of Agriculture determines is necessary for full food and fiber production.

(3) Essential agricultural user means any person who uses natural gas for an essential agricultural use as defined in paragraph (b)(2) of this section.

(4) Hospital means a facility whose primary function is delivering medical care to patients who remain at the facility, including nursing and convalescent homes. Outpatient clinics or doctors' offices are not included in this definition.

(5) High-priority use means any use of natural gas by a high-priority user as defined in paragraph (a)(6) of this section.

(6) High-priority user means, in no specific order, any person who uses natural gas:

(i) In a residence, or

(ii) In a commercial establishment in amounts of less than 50 Mcf on a peak day; or

(iii) In any school or hospital; or

(iv) For minimum plant protection when operations are shut down, for police protection, for fire protection, in a sanitation facility, in a correctional facility, or for emergency situations pursuant to 18 CFR 2.78(a)(4).

(7) Interstate pipeline means any person engaged in natural gas transportation subject to the jurisdiction of the Federal Energy Regulatory Commission under the Natural Gas Act.

(8) Residence means a dwelling using natural gas predominately for residential purposes such as space heating, air conditioning, hot water heating, cooking, clothes drying, and other residential uses, and includes apartment buildings and other multi-unit residential buildings.

(9) School means a facility, the primary function of which is to deliver instruction to regularly enrolled students in attendance at such facility. Facilities used for both educational and non-educational activities are not included under this definition unless the latter are merely incidental to the delivery of instruction.

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8580.03 Curtailment priorities.

(a) Notwithstanding any provision of law other than section 401(b) of the Natural Gas Policy Act of 1978, or any other rule, regulation, or order of the Department of Energy, the Federal Energy Regulatory Commission or their predecessor agencies, and to the maximum extent practicable, no curtailment plan of an interstate pipeline may provide for curtailment of deliveries of natural gas for any essential agricultural use, unless:

(1) Such curtailment does not reduce the quantity of natural gas delivered for such use below the use requirement certified by the Secretary of Agriculture under section 401(c) of the Natural Gas Policy Act of 1978 in order to meet the requirements of full food and fiber production; or

(2) Such curtailment is necessary in order to meet the requirements of high-priority users; or

(3) The Federal Energy Regulatory Commission, in consultation with the Secretary of Agriculture, determines, by rule or order issued pursuant to section 401(b) of the Natural Gas Policy Act of 1978, that use of a fuel (other than natural gas) is economically practicable and that the fuel is reasonably available as an alternative for such essential agricultural use.

(b) Any essential agricultural user who also qualifies as a high-priority user shall be a high-priority user for purposes of paragraph (a) of this sec

Sec. 590.100 OMB Control Numbers. 590.101 Purpose and scope. 590.102 Definitions. 590.103 General requirements for filing doc

uments with FE. 590.104 Address for filing documents. 590.105 Computation of time. 590.106 Dockets. 590.107 Service. 590.108 Off-the-record communications. 590.109 FE investigations.

Subpart B-Applications for Authorization

to Import or Export Natural Gas 590.201 General. 590.202 Contents of applications. 590.203 Deficient applications. 590.204 Amendment or withdrawal of appli

cations. 590.205 Notice of applications. 590.206 Notice of procedures. 590.207 Filing fees. 590.208 Small volume exports. 590.209 Exchanges by displacement


(c) The specific relative order of priority for all uses and users of natural gas, including high-priority and essential agricultural uses and users, shall remain as reflected in effective curtailment plans of interstate pipelines filed with the Federal Energy Regulatory Commission to the extent that the relative order of priorities does not conflict with paragraph (a) of this section.

(d) Nothing in this rule shall prohibit the injection of natural gas into storage by interstate pipelines or deliveries to its customers for their injection into storage unless it is demonstrated to the Federal Energy Regulatory Commission that these injections or deliveries are not reasonably necessary to meet the requirements of high-priority users or essential agricultural uses.

Subpart C-Procedures 590.301 General 590.302 Motions and answers. 590.303 Interventions and answers. 590.304 Protests and answers. 590.305 Informal discovery. 590.306 Subpoenas. 590.307 Depositions. 590.308 Admissions of facts. 590.309 Settlements. 590.310 Opportunity for additional proce

dures. 590.311 Conferences. 590.312 Oral presentations. 590.313 Trial-type hearings. 590.314 Presiding officials. 590.315 Witnesses. 590.316 Shortened proceedings. 590.317 Complaints.

Subpart D-Opinions and Orders

590.401 Orders to show cause. 590.402 Conditional orders. 590.403 Emergency interim orders. 590.404 Final opinions and orders. 590.405 Transferability. 590.406 Compliance with orders.


590.407 Reports of changes.

it opposes an application or other re

quested action. Subpart E-Applications for Rehearing

(c) Decisional employee means the As590.501 Filing.

sistant Secretary, presiding officials at 590.502 Application is not a stay.

conferences, oral presentations or 590.503 Opinion and order on rehearing. trial-type hearings, and any other em590.504 Denial by operation of law.

ployee of the DOE, including consult590.505 Answers to applications for rehear

ants and contractors, who are, or may

reasonably be expected to be, involved AUTHORITY: Secs. 301(b), 402(1), and 644, in the decision-making process, includPub. L. 95-91, 91 Stat. 578, 585, and 599 (42 ing advising the Assistant Secretary on U.S.C. 7151(b), 7172(1), and 7254), Sec. 3, Act of the resolution of issues involved in June 21, 1938, c. 556, 52 Stat. 822 (15 U.S.C.

proceeding. The term includes those 717b); E.O. 12009 (42 FR 46267, September 15,

employees of the DOE assisting in the 1977); DOE Delegation Order Nos. 0204-111 and 0204–127 (49 FR 6684, February 22, 1984; 54 FR

conduct of trial-type hearings by per11437, March 20, 1989).

forming functions on behalf of the As

sistant Secretary or presiding official. SOURCE: 54 FR 53531, Dec. 29, 1989, unless

(d) DOE means the Department of otherwise noted.

Energy, of which FE is a part.

(e) DOE Act means the Department of Subpart A-General Provisions

Energy Organization Act, Public Law

95–91, 91 Stat. 565 (42 U.S.C. 7101 et seq.). 8590.100 OMB Control Numbers.

(1) FE means the Office of The AssistThe information collection require- ant Secretary for Fossil Energy. ments contained in this part have been

(g) FERC means the Federal Energy approved by the Office of Management

Regulatory Commission. and Budget under Control No. 1903-0081.

(h) Interested person means a person,

other than a decisional employee, 590.101 Purpose and scope.

whose interest in a proceeding goes beThe purpose of this part is to estab yond the general interest of the public lish the rules and procedures required as a whole and includes applicants, into be followed by persons to obtain au tervenors, competitors of applicants, thorizations from DOE to import or ex and other individuals and organizaport natural gas under the Natural Gas tions, including non-profit and public Act and by all other persons interested interest organizations, and state, local, in participating in a natural gas im- and other public officials, with a proport or export proceeding before the prietary, financial or other special inagency. This part establishes the pro terest in the outcome of a proceeding. cedural rules necessary to implement The term does not include other federal the authorities vested in the Secretary agencies or foreign governments and of Energy by sections 301(b) and 402(1) their representatives, unless the agenof the DOE Act, which have been dele

cy, foreign government, or representagated to the Assistant Secretary.

tive of a foreign government is a party

to the proceeding. 8590.102 Definitions.

(i) Natural gas means natural gas and As used in this part:

mixtures of natural gas and synthetic (a) Assistant Secretary means the As- natural gas, regardless of physical form sistant Secretary for Fossil Energy or or phase, including liquefied natural any employee of the DOE who has been gas and gels primarily composed of delegated final decisional authority. natural gas.

(b) Contested proceeding means a pro- (j) NGA means the Natural Gas Act of ceeding:

June 21, 1938, c. 556, 52 Stat. 821 (15 (1) Where a protest or a motion to in- U.S.C. 717 et seq.). tervene, or a notice of intervention, in (k) Off-the-record communication opposition to an application or other means a written or oral communicarequested action has been filed, or

tion not on the record which is rel(2) Where a party otherwise notifies evant to the merits of a proceeding, the Assistant Secretary and the other and about which the parties have not parties to a proceeding in writing that been given reasonable prior notice of the nature and purpose of the commu- order by the Assistant Secretary under nication and an opportunity to be subparts D and E. present during such communication or, (p) State commission means the reguin the case of a written communica- latory body of a state or municipality tion, an opportunity to respond to the having jurisdiction to regulate rates communication. It does not include and charges for the sale of natural gas communications concerned solely with to consumers within the state or muprocedures which are not relevant to nicipality, or having any regulatory juthe merits of a proceeding. It also does risdiction over parties involved in the not include general background discus- import or export arrangement. sions about an entire industry or natural gas markets or communications of

8590.103 General requirements for fila general nature made in the course of

ing documents with FE. developing agency policy for future

(a) Any document, including but not general application, even though these limited to an application, amendment discussions may relate to the merits of of an application, request, petition, a particular proceeding.

motion, answer, comment, protest, (1) Party means an applicant, any per

complaint, and any exhibit submitted son who has filed a motion for and been

in connection with such documents, granted intervenor status or whose mo

shall be filed with FE under this part. tion to intervene is pending, and any

Such document shall be considered ofstate commission which has intervened

ficially filed with FE when it has been by notice pursuant to $590.303(a).

received and stamped with the time

and date of receipt by the Office of (m) Person means any individual,

Fuels Programs, FE. Documents transfirm, estate, trust, partnership, association, company, joint-venture, cor

mitted to FE must be addressed as pro

vided in $590.104. All documents and exporation, United States local, state and

hibits become part of the record in the federal governmental unit or instru

official FE docket file and will not be mentality thereof, charitable, educational or other institution, and oth

returned. An original and fifteen (15) ers, including any officer, director,

copies of all applications, filings and

submittals shall be provided to FE. No owner, employee, or duly authorized

specific format is required. Applicants representative of any of the foregoing.

required to file quarterly reports as a (n) Presiding official means any em

condition to an authorization need ployee of the DOE who has been des

only file an original and four (4) copies. ignated by the Assistant Secretary to

(b) Upon receipt by FE, each applicaconduct any stage of a proceeding,

tion or other initial request for action which may include presiding at a con

shall be assigned a docket number. Any ference, oral presentation, or trial-type

petition, motion, answer, request, comhearing, and who has been delegated

ment, protest, complaint or other docthe authority of the Assistant Sec

ument filed subsequently in a docketed retary to make rulings and issue orders

proceeding with FE shall refer to the in the conduct of such proceeding, assigned docket number. All docuother than final opinions and orders,

ments shall be signed either by the perorders to show cause, emergency in

son upon whose behalf the document is terim orders, or conditional decisions

filed or by an authorized representaunder subpart D and orders on rehear- tive. Documents signed by an authoring under subpart E.

ized representative shall contain a cer(0) Proceeding means the process and tified statement that the representaactivity, and any part thereof, insti- tive is a duly authorized representative tuted by FE either in response to an unless the representative has a cerapplication, petition, motion or other tified statement already on file in the filing under this part, or on its own ini- FE docket of the proceeding. All docutiative, by which FE develops and con- ments shall also be verified under oath siders the relevant facts, policy and ap or affirmation by the person filing, or plicable law concerning the importa- by an officer or authorized representation or exportation of natural gas and tive of the firm having knowledge of which may lead to the issuance of an the facts alleged. Each document filed

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