COMPLIANCE BY NATURAL GAS PRODUCERS AND GATHERERS WITH CERTIFICATE AND RATE REQUIREMENTS

§ 154.91 Applicability.

(a) Definition. An "independent producer" as that term is used in this part means any person as defined in the Natural Gas Act who is engaged in the production or gathering of natural gas and who sells natural gas in interstate commerce for resale, but who is not engaged in the transportation of natural gas (other than gathering) by pipeline in interstate commerce.

(b) Filings by operators signatory to a gas sales contract. (1) Where the operator (i) of a natural gas producing property (not a producer selling pursuant to a percentage formula under paragraph (e) of this section), or (ii) of a plant processing natural gas and located in or near the production area of the gas it processes is a signatory party to a contract for the sale of the gas produced or processed, the operator shall make all the filings required under §§ 154.92 (rate schedules), 154.94 (changes in rate schedules), or 157.23 (applications for certificates) of all signatories for such sale, as well as for the sale and delivery (according to the terms of the contract) of the gas of nonsignatory Co-owners. Notwithstanding this requirement for filings by operators, a co-owner who is a signatory party to a contract of sale of natural gas may, but he need not, make his own filings under §§ 154.92, 154.94 and 157.23 in addition to the filings required of the operators.

(2) As a part of his application for a certificate of public convenience and necessity, the operator shall file: (i) a copy of the contract or contracts for the sale of gas in interstate commerce for resale: (ii) the names and percentum of ownership of co-owners whose interest in production is to be delivered to the purchaser under the terms of such contract or contracts: and (iii) a copy of the sales authorization from, or operating agreement with, any nonsignatory co-owners whose gas is so to be delivered.

(c) Filings by signatory co-owners. (1) Where gas is delivered by a well, unit, or plant operator under the

terms of a contract of sale of an owner or owners to which the operator is not a signatory party, each signatory owner is responsible for making the filings required by §§ 154.92, 154.94 and 157.23 to cover the sale, but any such filings may be made and accepted to cover other co-owners who are joint signatories to the sales contract. As a part of his application for a certificate of public convenience and necessity, such owner shall file a single statement setting forth: (i) the names of the co-owners (signatory or non-signatory) to whose accounts the gas so delivered is to be credited; (ii) the per centum of ownership of such owners in the well, unit, or plant; and (iii) a copy of the contract or contracts for the sale of gas in interstate commerce for resale. Also, such owner, either at the close of each calendar year or at the end of each twelve-month period following the date of initial filing, shall submit a statement listing any changes in the ownership of working interests, producers, or plant ownership occurring subsequent to the filing of a prior statement hereunder.

(2) Where the operator is an interstate pipe-line transmission company and delivers the gas into its own lines for interstate transmission it shall file a statement setting forth the names of all the co-owners whose gas is so delivered and the respective per centum of ownership therein, and such co-owners shall make all required filings.

(d) No filings by non-signatories. Where, under paragraph (b) or (c) of this section, filings of rate schedules, rate changes, and certificate applications covering the sale are required of the operator or of the signatory owners, a non-signatory co-owner may not file rate schedules, rate changes, or certificate applications where his gas is being sold or delivered by the operator according to the terms of a contract to which the co-owner is not a signatory party, whether or not the filings by operator or co-owner as above required have been made. However, the non-signatory Co-owner whose gas is being sold by the operator may, where he has reserved the right to do so, elect to take his gas in kind and dispose of it otherwise if and

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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 § 157.40, and where any nonsignatory 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 § 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 existing 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 § 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 sales 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

ment of assignment whereby the assignee acquired the properties (or rights therein) involved, along with a request that the assignor's rate schedule be redesignated as the rate schedule of the assignee. He shall also file three copies of an informational summary, in the form prescribed in § 250.8 of this chapter, for each contract of sale or transportation of gas involved in the assignment.

(2) Where the authority being sought under subparagraph (1) of this paragraph relates only to an assigned portion of the rights covered by the rate schedule of the assignor, the assignee shall file, as his rate schedule, three copies of the assignor's basic contract of sale, as amended, and of the instrument of assignment together with the informational summary required by subparagraph (1) of this paragraph.

(3) If the rate schedule of the assignor relating to the rights assigned is in effect subject to refund or if the sale is being made by the assignor under temporary authorization subject to a rate refund condition, authority to render service will be granted to the assignee only upon condition that he file assurance by way of bond or undertaking that he will refund, at such times and in such amounts to such persons as the Commission may find to be entitled thereto any portion of the rate which had been permitted to become effective pursuant to § 154.102 or the rate condition in the assignor's temporary authorization, as may be found by the Commission not to be justified. Assignee's obligation to refund, in the absence of his voluntary assumption of some greater proportion of assignor's liability, shall attach as of the effective date of the Commission's order granting the assignee a certificate or temporary certificate as the base may be unless otherwise ordered or provided.

(e) Any jurisdictional natural gas company that maintains a rate schedule on file with the Commission or makes application to have a rate schedule approved by this Commission or modifies any existing or proposed rate schedule must, in addition to the requirements of this or any other sec

tion, complete and submit Form No. 108, or applicable schedules thereof, pursuant to the direction of § 260.6 of this chapter.

[Order 174-B, 19 FR 8808, Dec. 23, 1954, as amended by Order 278, 29 FR 3699, Mar. 25, 1964; Order 556, 41 FR 52443, Nov. 30, 1976; Order 556-A, 42 FR 41276, Aug. 16, 1977]

§ 154.93 Rate schedule defined.

For the purpose of §§ 154.92 through 154.101 "rate schedule" shall mean the basic contract and all supplements or agreements amendatory thereof, effective and applicable on and after June 7, 1954, showing the service to be provided and the rates and charges, terms, conditions, classifications, practices, rules and regulations affecting or relating to such rates or charges, applicable to the transportation of natural gas in interstate commerce or the sale of natural gas in interstate commerce for resale subject to the jurisdiction of the Commission: Provided, That in contracts executed on or after April 3, 1961, for the sale or transportation of natural gas subject to the jurisdiction of the Commission, any provision for a change of price other than the following provisions shall be inoperative and of no effect at law; the permissible provisions for a change in price are:

(a) Provisions that change a price in order to reimburse the seller for all or any part of the changes in production, severance, or gathering taxes levied upon the seller;

a

(b) Provisions that change a price to a specific amount at a definite date; (b-1) Provisions that permit change in price to the applicable just and reasonable area ceiling rate which has been, or which may be, prescribed by the Commission for the quality of the gas involved; and

(c) Provisions that, once in five-year contract periods during which there is no provision for a change in price to a specific amount (paragraph (b) of this section), change a price at a definite date by a price-redetermination based upon and not higher than a producer rate or producer rates which are subject to the jurisdiction of the Commission, are not in issue in suspension or 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]

§ 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 to § 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, Dec. 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.

Filing date means the day on which a rate schedule, or a change in rate schedule, is received in the office of the Secretary of the Commission in compliance with the requirements of §§ 154.92 through 154.99.

[Order 174-B, 19 FR 8809, Dec. 23, 1954]

§ 154.97 Cancellation or termination—assignment of interest.

(a) When a rate schedule or part thereof is proposed to be cancelled or is to terminate by its own terms and no new rate schedule or part thereof is to be filed in its place, the independent producer shall notify the Commission of the proposed cancellation or termination at least 30 days prior to the proposed effective date of such cancellation or termination. Such notice shall be in the form prescribed in § 250.9 of this chapter and shall contain a statement showing the reasons for the cancellation or termination and a certification that such notice of cancellation or termination has been served on the affected party or parties, together with names of parties to whom the notice has been mailed.

(b) When part of the acreage or other interest of an independent producer is proposed to be assigned to a successor who intends to render service from the same acreage as the assignor pursuant to the terms of the assignor's effective rate schedule, the assignor shall file with the Commission three copies of the instrument whereby the assignment is effected.

[Order 278, 29 FR 3700, Mar. 25, 1964]

§ 154.99 Number of copies; material to be submitted with changes in rate schedules.

(a) Three copies of any rate schedule or part thereof, and material required by § 154.95 to be filed therewith, and Notices of Cancellation or Termination submitted for filing, must be supplied to the Commission. The Commission reserves the right to request additional copies. All copies are to be included in a single package, insofar as possible, together with a letter of transmittal and other material and information required by this part, addressed to the Secretary of the Federal Power Commission, Washington 25, D.C.

(b) Such letter of transmittal shall contain a complete list of all material being filed, properly designated so that each item is easily identifiable. [Order 174-B, 19 FR 8809, Dec. 23, 1954, as amended by Order 195, 22 FR 1329, Mar. 5, 1957]

§ 154.100 Rejection of rate schedules and material submitted for filing.

The Commission reserves the right to reject any rate schedule or material submitted for filing which fails to comply with the requirements of §§ 154.92 through 154.99.

[Order 174-B, 19 FR 8809, Dec. 23, 1954]

§ 154.101 Acceptance for filing not approval.

Acceptance for filing of any rate schedule or part thereof, or of a Notice of Cancellation or Termination, is not to be construed as approval by the Commission, nor to serve in lieu of any requirements under section 7 of the Natural Gas Act.

[Order 174-B, 19 FR 8809, Dec. 23, 1954]

§ 154.102 Suspended in changes rate schedules; motions to make effective at end of period of suspension; procedure. (a) If a rate suspension proceeding initiated under section 4(e) of the Natural Gas Act has not been concluded and an order made at the expiration of the suspension period, the proposed change of rate, charge, classification, or service shall go into effect upon