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COMPLIANCE BY NATURAL GAS PRODUC terms of a contract of sale of an owner ERS AND GATHERERS WITH CERTIFI

or owners to which the operator is not CATE AND RATE REQUIREMENTS

a signatory party, each signatory

owner is responsible for making the $ 154.91 Applicability.

filings required by $$ 154.92, 154.94 (a) Definition. An "independent pro

and 157.23 to cover the sale, but any ducer" as that term is used in this part

such filings may be made and accepted means any person as defined in the

to cover other co-owners who are joint Natural Gas Act who is engaged in the

signatories to the sales contract. As a production or gathering of natural gas

part of his application for a certificate and who sells natural gas in interstate

of public convenience and necessity, commerce for resale, but who is not

such owner shall file a single stateengaged in the transportation of natu

ment setting forth: (i) the names of ral gas (other than gathering) by pipe

the co-owners (signatory or non-signaline in interstate commerce.

tory) to whose accounts the gas so de(b) Filings by operators signatory to

livered is to be credited; (ii) the per a gas sales contract. (1) Where the op

centum of ownership of such owners erator (i) of a natural gas producing

in the well, unit, or plant; and (iii) a property (not a producer selling pursu

copy of the contract or contracts for ant to a percentage formula under

the sale of gas in interstate commerce paragraph (e) of this section), or (ii) of

for resale. Also, such owner, either at a plant processing natural gas and lo

the close of each calendar year or at cated in or near the production area of

the end of each twelve-month period the gas it processes is a signatory

following the date of initial filing, party to a contract for the sale of the

shall submit a statement listing any gas produced or processed, the opera

changes in the ownership of working tor shall make all the filings required

interests, producers, or plant ownerunder $8 154.92 (rate schedules), 154.94

ship occurring subsequent to the filing (changes in rate schedules), or 157.23

of a prior statement hereunder. (applications for certificates) of all sig

(2) Where the operator is an internatories for such sale, as well as for

state pipe-line transmission company the sale and delivery (according to the and delivers the gas into its own lines terms of the contract) of the gas of

for interstate transmission it shall file nonsignatory Co-owners. Notwith a statement setting forth the names of standing this requirement for filings all the co-owners whose gas is so delivby operators, a co-owner who is a sig ered and the respective per centum of natory party to a contract of sale of ownership therein, and such co-owners natural gas may, but he need not, shall make all required filings. make his own filings under $8 154.92, (d) No filings by non-signatories. 154.94 and 157.23 in addition to the fil Where, under paragraph (b) or (c) of ings required of the operators.

this section, filings of rate schedules, (2) As a part of his application for a rate changes, and certificate applicacertificate of public convenience and tions covering the sale are required of necessity, the operator shall file: (i) a the operator or of the signatory copy of the contract or contracts for owners, a non-signatory co-owner may the sale of gas in interstate commerce not file rate schedules, rate changes, for resale: (ii) the names and percen or certificate applications where his tum of ownership of co-owners whose gas is being sold or delivered by the interest in production is to be deliv operator according to the terms of a ered to the purchaser under the terms contract to which the co-owner is not of such contract or contracts: and (iii) a signatory party, whether or not the a copy of the sales authorization from, filings by operator or co-owner as or operating agreement with, any non above required have been made. Howsignatory co-owners whose gas is so to ever, the non-signatory Co-owner be delivered.

whose gas is being sold by the opera(c) Filings by signatory co-owners. tor may, where he has reserved the (1) Where gas is delivered by a well, right to do so, elect to take his gas in unit, or plant operator under the kind and dispose of it otherwise if and

39

when there has first been obtained authorization therefor to the extent required by section 7 (b), and 7 (c), or other applicable provisions of the Natural Gas Act, and filings have been made as required by section 4 thereof.

(e) Percentage sales. Where a producer sells to the operator of a processing plant at a price which is a percentage of the proceeds from the resale of the residue gas, the plant operator shall make all filings required to cover the sale by such producers, which filings shall include a list of the producers from whom the natural gas is purchased, showing the per centum of the resale price received by each from such sale of gas. At the close of each calendar year or at the end of each twelve-month period following the date of initial filing the operator shall submit a further statement listing any changes in the producers from whom the gas is purchased or in the percentum they receive. In cases of percentage sales by producers covered by this paragraph, the producers may not file rate schedules, rate changes, or certificate applications, whether or not the filings by operator as herein required have been made. However, such producer is fully subject to applicable provisions of the Natural Gas Act, including sections 5 and 7 (b).

(f) Filings by certain nonsignatories. Where the operator and the signatory co-owners in a particular sale are exempt with respect to such sale pursuant to 8 157.40, and where any non

ignatory co-owner's interests are not covered by such exemption, such coowner may file rate schedules, rate changes, or certificate applications with respect to such interests notwithstanding the provisions of paragraph (d) of this section. (Order 190, 21 FR 7617, Oct. 4, 1956, as amended by Order 243, 27 FR 1356, Feb. 14, 1962; Order 429, 36 FR 5601, Mar. 25, 1971; Order 556, 41 FR 52443, Nov. 30, 1976)

or before December 1, 1954, filed with the Commission rate schedules, as defined in g 154.93, setting forth the terms and conditions of service and all rates and charges for such transportation or sale effective on June 7, 1954. To each rate schedule there shall be attached a Schedule 507 of Commission Form No. 108 showing actual billing for a recent month in sufficient detail to show how the billing amount is determined.

(b) Every independent producer who subsequent to the effective date of this part, proposes to initiate an interstate transportation or sale of natural gas subject to the jurisdiction of the Commission to an ex ing or new customer shall file with the Commission not less than 30 days nor more than 90 days prior to the date such transportation or sale is proposed to be initiated a rate schedule, as defined in g 154.93, setting forth the terms and conditions of service and all rates and charges for such transportation or sale. To each such rate schedule there shall be attached a statement showing estimated sal and billing for the first month of service, in sufficient detail to show method of billing and prices used. The statement shall also give the proposed date of commencement of service. A complete copy of all material shall be furnished to each purchaser under the rate schedule. With each such filing there shall be submitted a list of parties to whom such material has been mailed.

(c) Every independent producer who transports or sells less than 100,000 Mcf annually of natural gas subject to the jurisdiction of the Commission may, in lieu of the requirements of paragraphs (a) and (b) of this section file a statement showing (1) the approximate annual volume involved, (2) the rate charged therefor, (3) the name of the purchaser, and (4) the geographical location (field, county, and State) at which delivery is made.

(d)(1) Every independent producer seeking authority to render natural gas service previously authorized by the Commission, as successor in interest in all the properties or other rights covered by a particular rate schedule, shall file three copies of the instru

§ 154.92 Filing of rate schedules by inde

pendent producer. (a) Every independent producer who, on or since June 7, 1954, has engaged in the interstate transportation or sale of natural gas subject to the jurisdiction of the Commission shall on

ment of assignment whereby the as tion, complete and submit Form No. signee acquired the properties (or 108, or applicable schedules thereof, rights therein) involved, along with a pursuant to the direction of $ 260.6 of request that the assignor's rate sched this chapter. ule be redesignated as the rate sched

(Order 174-B, 19 FR 8808, Dec. 23, 1954, as ule of the assignee. He shall also file

amended by Order 278, 29 FR 3699, Mar. 25, three copies of an informational sum

1964; Order 556, 41 FR 52443, Nov. 30, 1976; mary, in the form prescribed in $ 250.8 Order 556-A, 42 FR 41276, Aug. 16, 1977) of this chapter, for each contract of sale or transportation of gas involved 8 154.93 Rate schedule defined. in the assignment.

For the purpose of 88 154.92 through (2) Where the authority being 154.101 "rate schedule" shall mean the sought under subparagraph (1) of this

basic contract and all supplements or paragraph relates only to an assigned

agreements amendatory thereof, effecportion of the rights covered by the

tive and applicable on and after June rate schedule of the assignor, the as

7, 1954, showing the service to be prosignee shall file, as his rate schedule, vided and the rates and charges, three copies of the assignor's basic terms, conditions, classifications, praccontract of sale, as amended, and of tices, rules and regulations affecting the instrument of assignment together or relating to such rates or charges, with the informational summary re applicable to the transportation of quired by subparagraph (1) of this

natural gas in interstate commerce or paragraph.

the sale of natural gas in interstate (3) If the rate schedule of the assign commerce for resale subject to the juor relating to the rights assigned is in risdiction of the Commission: Proeffect subject to refund or if the sale vided, That in contracts executed on is being made by the assignor under or after April 3, 1961, for the sale or temporary authorization subject to a transportation of natural gas subject rate refund condition, authority to to the jurisdiction of the Commission, render service will be granted to the any provision for a change of price assignee only upon condition that he other than the following provisions file assurance by way of bond or un shall be inoperative and of no effect at dertaking that he will refund, at such law; the permissible provisions for a times and in such amounts to such change in price are: persons as the Commission may find (a) Provisions that change a price in to be entitled thereto any portion of order to reimburse the seller for all or the rate which had been permitted to any part of the changes in production, become effective pursuant to § 154.102 severance, or gathering taxes levied or the rate condition in the assignor's upon the seller; temporary authorization, as may be (b) Provisions that change a price to found by the Commission not to be a specific amount at a definite date; justified. Assignee's obligation to

(b-1) Provisions that permit a refund, in the absence of his voluntary change in price to the applicable just assumption of some greater proportion and reasonable area ceiling rate which of assignor's liability, shall attach as has been, or which may be, prescribed of the effective date of the Commis by the Commission for the quality of sion's order granting the assignee a the gas involved; and certificate or temporary certificate as (c) Provisions that, once in five-year the base may be unless otherwise or contract periods during which there is dered or provided.

no provision for a change in price to a (e) Any jurisdictional natural gas specific amount (paragraph (b) of this company that maintains a rate sched section), change a price at a definite ule on file with the Commission or date by a price-redetermination based makes application to have a rate upon and not higher than a producer schedule approved by this Commission rate or producer rates which are subor modifies any existing or proposed ject to the jurisdiction of the Commisrate schedule must, in addition to the sion, are not in issue in suspension or requirements of this or any other sec certificate proceedings, and, are in the

area of the price in question: Provided further, That any contract executed on or after April 2, 1962, containing pricechanging provisions other than the permissible provisions set forth in the proviso next above shall be rejected. (Order 242, 27 FR 1357, Feb. 14, 1962, as amended by Order 329, 31 FR 15486, Dec. 8, 1966)

to

§ 154.94 Changes in rate schedules.

(a) No change shall be made in any rate, charge, or service in effect on and after June 7, 1954, for the interstate transportation or sale of natural gas in interstate commerce subject to the jurisdiction of the Commission by any independent producer required to file rate schedules pursuant $ 154.92, without first filing a change in rates pursuant to section 4 (d) of the Natural Gas Act and in accordance with this section.

(b) Every change in any rate schedule, rate, charge, classification, or service effective or applicable to a sale subject to the jurisdiction of the Commission as of June 7, 1954, and on file with the Commission, or required to be filed pursuant to $ 154.92, or in any rate schedule, rate, charge, classification or service effective or applicable to a sale subject to the jurisdiction of the Commission initiated subsequent to June 7, 1954, on file with the Commission, or required to be filed with the Commission pursuant to § 154.92 shall be filed with the Commission by an original and three copies not less than 30 days nor more than 90 days prior to the date such change in rate schedule is proposed to be made effective.

(c) The operation of any provision of the rate schedule providing for future or periodic changes in the rate, charge, classification, or service after June 7, 1954, or the operation of any like provision in any initial rate schedule filed after June 7, 1954, shall constitute a change in rate schedule.

(d) Any change in any rate schedule, rate, charge, classification, or service provided in a rate schedule in effect on June 7, 1954, which by the terms of said rate schedule is to be operative after June 7, 1954 and prior to September 15, 1954, may be filed on less

than thirty days' prior notice, subject nevertheless to the right of the Commission to suspend any such proposed change, if the Commission in any case shall, within thirty days after the date of filing, find it necessary to suspend such proposed change. If any such proposed change is suspended, the suspension period will begin with the designated effective date of such change.

(e) With each change in rate schedule not constituting a change in rate level by any means there shall be submitted reasons, nature and basis for the proposed change and the date upon which the change is proposed to be made effective. Changes in service such as compression, dehydration, etc., by either seller or buyer shall be considered as a change in the existing rate level.

(f) Notice of change in rate level. (1) An independent producer who is proposing a contractual change in rates, charges, etc., shall file the information called for in Schedule 507 of Form No. 108.

(g) A complete copy of all material filed pursuant to this section shall be furnished to each party to the rate schedule. With each such filing there shall be submitted to the Commission a list of the parties to whom such material has been furnished. [Order 174-B, 19 FR 8809, Deo. 23, 1954, as amended by Order 202, 23 FR 3716, May 29, 1958; Order 240, 27 FR 252, Jan. 10, 1962; Order 556, 41 FR 52443, Nov. 30, 1976; Order 556-A, 42 FR 41276, Aug. 16, 1977)

$ 154.95 Oral agreements.

If any rate schedule or change in a rate schedule is not in writing, its terms shall be reduced to writing and filed with the Commission. If the parties are not able to agree to the precise terms within a reasonable time, the applicant shall file, in triplicate, a statement of his understanding of the agreement, serving a copy thereof on the other parties to the agreement. Such other parties, in the latter event, may subsequently file, in triplicate, their understanding of the agreement. [Order 174-B, 19 FR 8809, Dec. 23, 1954, as amended by Order 202, 23 FR 3716, May 29, 1958)

$ 154.96 Filing date.

$ 154.99 Number of copies; material to be Filing date means the day on which

submitted with changes in rate scheda rate schedule, or a change in rate

ules. schedule, is received in the office of (a) Three copies of any rate schedule the Secretary of the Commission in or part thereof, and material required compliance with the requirements of by $ 154.95 to be filed therewith, and 88 154.92 through 154.99.

Notices of Cancellation or Termina

tion submitted for filing, must be sup(Order 174-B, 19 FR 8809, Dec. 23, 1954)

plied to the Commission. The Commis

sion reserves the right to request addi$ 154.97 Cancellation or termination-as

tional copies. All copies are to be insignment of interest.

cluded in a single package, insofar as (a) When a rate schedule or part possible, together with a letter of thereof is proposed to be cancelled or transmittal and other material and inis to terminate by its own terms and formation required by this part, adno new rate schedule or part thereof is dressed to the Secretary of the Federto be filed in its place, the independ

al Power Commission, Washington 25, ent producer shall notify the Commis D.C. sion of the proposed cancellation or (b) Such letter of transmittal shall termination at least 30 days prior to contain a complete list of all material the proposed effective date of such

being filed, properly designated so cancellation or termination. Such

that each item is easily identifiable. notice shall be in the form prescribed [Order 174-B, 19 FR 8809, Dec. 23, 1954, as in $ 250.9 of this chapter and shall con amended by Order 195, 22 FR 1329, Mar. 5, tain a statement showing the reasons 1957] for the cancellation or termination and a certification that such notice of

$ 154.100 Rejection of rate schedules and cancellation or termination has been

material submitted for filing. served on the affected party or par The Commission reserves the right ties, together with names of parties to to reject any rate schedule or material whom the notice has been mailed. submitted for filing which fails to (b) When part of the acreage or

comply with the requirements of other interest of an independent pro $$ 154.92 through 154.99. ducer is proposed to be assigned to a

(Order 174-B, 19 FR 8809, Dec. 23, 1954) successor who intends to render service from the same acreage as the as $ 154.101 Acceptance for filing not apsignor pursuant to the terms of the as proval. signor's effective rate schedule, the as

Acceptance for filing of any rate signor shall file with the Commission

schedule or part thereof, or of a three copies of the instrument where Notice of Cancellation or Termination, by the assignment is effected.

is not to be construed as approval by (Order 278, 29 FR 3700, Mar. 25, 1964)

the Commission, nor to serve in lieu of

any requirements under section 7 of $ 154.98 Waiver of notice requirements.

the Natural Gas Act. Upon application and for good cause (Order 174-B, 19 FR 8809, Dec. 23, 1954) shown, the Commission may by order

rate provide that a rate schedule or a

$ 154.102 Suspended changes in change in rate schedule shall be effec

schedules; motions to make effective at tive on less than 30 days' notice. The

end of period of suspension; procedure. Commission upon request and for (a) If a rate suspension proceeding good cause shown may permit a rate initiated under section 4(e) of the Natschedule or a change in rate schedule ural Gas Act has not been concluded to be filed prior to 90 days before the and an order made at the expiration of effective date.

the suspension period, the proposed

change of rate, charge, classification, (Order 174-B, 19 FR 8809, Dec. 23, 1954) or service shall go into effect upon

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