motion of the independent producer proposing the change as the legally effective rate and shall be charged, effective as of a date not earlier than the date of receipt of such motion by the Commission or the expiration of the suspension period, whichever is later. Three copies of the motion and any accompanying papers shall be filed. The Secretary, upon receipt of such a motion, shall, if the motion is legally adequate for the purpose, notify the movant that the proposed change shall be effective as provided in this section: Provided, That the Secretary shall refer to the Commission any motion requesting that a change in rate, charge, classification, or service be made effective, if in his judgment the motion should receive the specific attention of the Commission; (b)(1) Unless otherwise ordered by the Commission, increased rates or charges shall be charged and collected pursuant to paragraph (a) of this section and there shall be filed by the independent producer a surety bond, or other undertaking, to be approved by the Secretary, to comply with the provisions of paragraph (c) of this section. (2) In compliance with subparagraph (1) of this paragraph, an independent producer may file a general undertaking affording blanket refund coverage of any present and future rate increases suspended under section 4(e) of the Natural Gas Act and collected subject to refund thereunder. Upon acceptance of such general undertaking, the producer need not file further refund assurance when filing a motion to make increased rates effective unless specifically required to do so by order of the Commission. (c) Upon an increased rate being made effective pursuant to the provisions of this section the independent producer shall be obligated to keep accurate accounts in detail of all amounts received by reason of the increased rates or charges for each billing period, and for each purchaser; the billing determinants of natural gas sales to such purchasers and the revenues resulting therefrom, as computed under the rates in effect immediately prior to the effective date of the change, and under the rates which become effective pursuant to the motion, together with the differences in the revenues so computed; and to refund at such times and in such amounts to the persons entitled thereto, and in such manner as may be required by final order of the Commission, the portion of any increased rate found by the Commission in that proceeding not justified, together with interest thereon at the rate of (1) seven percent per annum on all excessive rates and charges collected prior to October 10, 1974; and (2) nine percent per annum on all excessive rates and charges collected on and after October 10, 1974, and nine percent per annum for all interest accruing on and after October 10, 1974, from the date of payment to the producer until refunded, except as provided in paragraph (f) of this section; and to bear all costs of any such refunding. (d) If the producer, acting in conformity with the terms and conditions of the bond or undertaking, makes the refunds as may be required by order of the Commission, the bond or undertaking shall be discharged; otherwise it shall remain in full force and effect; (e) The bond or undertaking required by paragraph (b) of this section may be filed concurrently with the motion to make the increased rates effective. If with his motion the producer has not filed a satisfactory bond or undertaking such bond or undertaking must be filed within 30 days after the issuance of the Secretary's notice provided for in paragraph (a) of this section. Unless notified to the contrary by the Secretary of the Commission within 30 days from the date of filing, such bond or undertaking shall be deemed to be satisfactory and to have been accepted for filing. (f) No interest is required to be paid on any portion of a refund which represents payments of royalties or taxes to Federal or State governmental authorities, except to the extent that such authorities pay interest to the producer when refunding overpayments of royalties or taxes. (Sec. 5, 52 Stat. 823, 15 U.S.C. 717d) 10, 1960; Order 278, 29 FR 3700, Mar. 25, 1964; Order 326, 31 FR 11935, Sept. 10, 1966; Order 377, 33 FR 18624, Dec. 17, 1968; Order 405, 35 FR 8633, June 4, 1970; Order 405-B, 36 FR 22058, Nov. 19, 1971; Order 513, 39 FR 37359, Oct. 21, 1974; Order 513-A, 41 FR 30325, July 23, 1976] § 154.103 Limitations on provisions in rate schedules relating to makeup period for taking prepaid gas. Contracts for the transportation or sale of natural gas, subject to the jurisdiction of the Commission, executed after February 1, 1967, will be rejected if they contain provisions precluding buyer from receiving gas paid for but not taken at any time during a period of at least 5 years immediately following payment for such gas not taken, subject to contract provisions to protect against drainage. If the contract terminates before the end of the minimum 5-year makeup period, a shorter makeup period, consistent with the time remaining under the contract will be permitted. The contract may provide that the prepayment price is the total price for the gas. In the alternative the contract may provide that where the price being collected under the contract has changed between the date that the gas was paid for but not taken and the date the gas is madeup, the makeup gas will be delivered at the price effective at the time it is delivered. If the price has decreased, the decrement will be set off against payments for other gas delivered under the contract and if the price has increased pursuant to the provisions of section 4 of the Natural Gas Act, any increase provided for the makeup gas should be subject to any rate order issued by the Commission in the appropriate rate action. (Secs. 5, 7, 52 Stat. 823, 825, 56 Stat. 83; 15 U.S.C. 717d, 717f) [Order 334-A, 32 FR 5258, Mar. 29, 1967] § 154.104 Annual statements by small producers. Annual statements certifying to the matters enumerated in the form set out in § 250.11 of this chapter shall be filed by all producers, either individually or by groups, who have been exempted under the provisions of § 157.40. The statements shall be submitted by April 1 of each year for the preceding calendar year. [Order 428, 36 FR 5601, Mar. 25, 1971] § 154.105 Area rates-Southern Louisiana area. (a) From and after August 1, 1971, the effective date of Opinion No. 598 in Dockets Nos. AR69-2 and AR69-1, et al., 46 FPC -—, and prior to October 1, 1977, for contracts dated on or after October 1, 1968, and prior to October 1, 1976, for contracts dated prior to October 1, 1968, no rate or charge made, demanded or received under a rate schedule filed pursuant to this part for gas produced in the southern Louisiana area shall exceed the applicable area rate prescribed by this section except in compliance with a specific order of the Commission. (b) Applicable area rate means the base area rate established by paragraph (c) of this section adjusted to the extent required by paragraphs (d), (e), (g), (h), and (i) of this section. (c) The base area rates: The following base area rates per Mcf (at 15.025 p.s.i.a.) are hereby established subject to the adjustments provided in paragraphs (d), (e), (g), (h), and (i) of this section, (1) Gas sold under contracts dated prior to October 1, 1968: (i) 22.375 cents for gas subject to Louisiana production tax. (ii) 21.375 cents for gas not subject to Louisiana production tax. (2) Gas sold under contracts dated on or after October 1, 1968, and newly discovered reservoirs discovered on or after October 1, 1968: 26 cents prior to October 1, 1974. 27 cents on and after October 1, 1974. (3) For gas sold under contracts dated prior to October 1, 1968, the base area rates in subparagraph (1) of this paragraph shall be adjusted upward 0.5 cent on October 1, 1973. (4) The applicable base area rate prescribed herein shall be adjusted downward by 0.51 cent for deliveries made closer to the wellhead than a central point in the field, the tailgate of a natural gas processing plant, an offshore platform to the buyer's line, or a point on the buyer's pipeline. (d) Contingent escalations of area rates: From such time prior to October 1, 1977, as the Commission determines that independent producers shall have dedicated for sale to interstate pipelines new gas reserves from the southern Louisiana area, in addition to gas already dedicated as of October 1, 1970 and also in addition to any dedications used to reduce refund obligations, in the amounts hereafter specified, the base area rates established in paragraph (c) of this section for gas sold under contracts prior to October 1, 1968, shall be increased as follows: 7.5 trillion cubic feet........ 0.5 cents per Mcf. 11.25 trillion cubic feet.... Additional 0.5 cent per Mcf. 15 trillion cubic feet......... Additional 0.5 cent per Mcf. New gas reserves shall mean the estimated original recoverable reserves in place, less any prior production therefrom, which are either initially committed to a jurisdictional sale under a contract dated on or after October 1, 1970, or which are new discoveries (as defined in § 2.56(f)(2) of the Commission's rules of practice and procedure in this chapter) made on or after October 1, 1970. (e) Quality standards and adjustments to the base area rates: (1) The base area rates fixed in paragraph (c) of this section shall be adjusted for any deviations from the following standards. (i) B.t.u. adjustment. The maximum standard will be 1,050 B.t.u.'s per cubic foot of gas, saturated with water vapor, at 60° F. and 14.73 p.s.i.a., and the minimum standard will be 1,000 B.t.u.'s per cubic foot of gas, saturated with water vapor, at 60° F. and 14.73 p.s.i.a. For gas with more than 1,050 B.t.u.'s per cubic foot, upward adjustments shall be made on a proportional basis from a base of 1,050 B.t.u.'s. For gas with less than 1,000 B.t.u.'s per cubic foot, downward adjustments shall be made on a proportional basis from a base of 1,000 B.t.u.'s. (ii) Delivery point. The gas shall be delivered at a central point. A central point includes a central point in the field, the tailgate of a natural gas processing plant, an offshore platform to the buyer's line, and a point on the buyer's pipeline. (2) When a purchaser buys gas which deviates from the quality standards established in subparagraph (1) of this paragraph, the base area rate fixed in paragraph (c) of this section shall be adjusted for any deviations from such standards as follows: (i) The applicable base area rate shall be adjusted downward or upward by the amount of any applicable B.t.u. adjustment as set forth in subparagraph (1)(i) of this paragraph. (f) From and after August 1, 1971, nonassociated gas which has been paid for but not taken may be taken in the manner provided by the contract at any time within 5 years (or longer if the contract so provides) from the end of the contract year in which the obligation to take occurred, provided the purchaser must take the gas within the term of contract under which the gas is being purchased. (g) The applicable area rate shall be adjusted upward or downward to reflect 87.5 percent of any change in State or Federal production, severance, gathering, or similar taxes effective after October 1, 1970. (h) If gas produced offshore is delivered onshore, at the sole cost of the producer, the applicable area rate for such offshore gas shall be increased by 1 cent. (i) As to all contracts dated after August 1, 1971, together with all sales conditioned to the outcome of Docket No. R-338, under which a pipeline transports liquid hydrocarbons or liquefiable hydrocarbons and related fuel, the contract provisions shall control and the ceiling price shall not be reduced; provided, however, if such contracts do not provide for a transportation fee at least equal to the amount obtained by the following formula: Liquefiable hydrocarbons and related fuel0.02 cent per Mcf per mile. Liquid hydrocarbons-20 cents per barrel. then the payment to the pipeline, from and after August 1, 1971, shall be equal to the amounts set forth in the above formula. As to all contracts dated prior to August 1, 1971, except sales conditioned to the outcome of Docket No. R-338, the terms of the contract shall control and there shall be no reduction in the ceiling contract price because of such transportation. (j) Prior to October 1, 1977, for contracts dated on or after October 1, 1968, and prior to October 1, 1976, for contracts dated prior to October 1, 1968, any seller seeking to charge a rate in excess of the applicable area rate must file a petition for waiver or amendment of this section pursuant to § 1.7(b) of the Commission's rules of practice and procedure in this chapter (18 CFR 1.7(b)) fully justifying the relief sought in the light of this opinion and order. Prior to October 1, 1977, for contracts dated on or after October 1, 1968, and prior to October 1, 1976, for contracts dated prior to October 1, 1968, a seller may not file any rate increase in excess of the applicable area rate herein prescribed unless and until the Commission grants the petition. (k) The southern Louisiana area consists of the portion of the State of Louisiana lying south of the 31° parallel and including all areas, both State and Federal, in the Gulf of Mexico off the shore of Louisiana. [36 FR 13916, July 28, 1971] § 154.106 Area rates-Hugoton-Anadarko area. (a) From and after October 1, 1970, the effective date of Opinion No. 586, Docket No. AR64-1 et al., FPC and prior to July 1, 1977, no rate or charge made, demanded or received under a rate schedule filed pursuant to this part for gas produced in the Hugoton-Anadarko area shall exceed the applicable area rate prescribed by this section except in compliance with a specific order of the Commission. (b) Applicable area rate means the base area rate established in paragraph (c) of this section adjusted to the extent required by paragraphs (d), (e), and (f) of this section. (c) The base area rates: The following base area rates per Mcf (at 14.65 p.s.i.a.) are hereby established and subject to the adjustments provided in paragraphs (d), (e), and (f) of this section: (1) Gas sold under contracts dated prior to November 1, 1969: (i) For all gas produced in the Panhandle and Hugoton Fields: 3 (a) Prior to July 1, 1972: 12.50 cents in Kansas. 13.25 cents in Oklahoma. 13.50 cents in Texas. (b) On and after July 1, 1972: 13.50 cents in Kansas. 14.25 cents in Oklahoma. 14.50 cents in Texas. (ii) For all gas produced from fields or reservoirs other than the Panhandle and Hugoton Fields: (a) Prior to July 1, 1972: 17.50 cents in Kansas. 18.50 cents in Oklahoma. 19.00 cents in Texas. (b) On or after July 1, 1972: 18.50 cents in Kansas. 19.50 cents in Oklahoma. 20.00 cents in Texas. The Hugoton fields in Kansas, Oklahoma, and Texas are limited to the producing zones of the Chase group in the Permian system. The Panhandle fields in Texas include the Panhandle Lime of the Wichita group, the Herrington zone of the Chase group, the Granite Wash formation of Permian and Pennsylvania Age, and the Red Cave formation overlying the Wichita group. 'In the event that it is determined by a final order, no longer subject to judicial review, that casinghead gas in the Southern Louisiana area shall receive the same ceiling price as gas-well gas of comparable vintage, the ceiling prices set out hereunder for gaswell gas produced in the Hugoton-Anadarko area and contracted for on or after NovemFootnotes continued on next page (a) Prior to July 1, 1972: 17.5 cents in Kansas. 18.5 cents in Oklahoma. 19.0 cents in Texas. (b) On or after July 1, 1972: 18.5 cents in Kansas. 19.5 cents in Oklahoma. 20.0 cents in Texas. (d) Quality standards and adjustments to the base area rate: (1) For gas sold under contracts dated prior to November 1, 1969, quality standards and resulting adjustments to the base area rate shall be in accordance with the provisions of the particular contract with respect to contract rates." (2) For gas sold under contracts dated on or after November 1, 1969, quality standards and resulting adjustments to the base area rate shall be in accordance with the provisions of the particular contract with respect to contract rates, except: (i) Hydrogen sulphide. The gas shall contain not more than 1 grain of hydrogen sulphide per 100 cubic feet of gas at 60° F. and 14.73 p.s.i.a. (10 gr. per Mcf). (ii) Total sulphur. The gas shall contain not more than 20 grains of total sulphur per 100 cubic feet of gas at 60° F. and 14.73 p.s.i.a. (200 gr. per Mcf). (iii) Carbon dioxide. The gas shall contain not more than 3 percent by volume of carbon dioxide. (iv) B.t.u. adjustment. For gas with more than 1,000 B.t.u.'s per cubic foot, at 60° F. and 14.73 p.s.i.a., upward adjustments shall be made on a proportional basis from a base of 1,000 B.t.u.'s. For gas with less than 1,000 B.t.u.'s per cubic foot, at 60° F. and 14.73 p.s.i.a., downward adjustments shall be made on a proportional basis from a base of 1,000 B.t.u.'s. Footnotes continued from last page ber 1, 1969, shall apply to casinghead gas contracted for on or after November 1, 1969, prospectively from the date of such final order in the Southern Louisiana Area Rate Proceeding. 5 For those sales certificated by Opinion 390, 29 FPC 1175, there shall be a B.t.u. adjustment proportionately upward and downward from 1,000 B.t.u., similar to that provided in subparagraph (2)(iv) of the paragraph. (e) Adjustment for substantial offlease gathering: Where delivery of the gas is made after substantial off-lease gathering by the producer, whether at a plant tailgate or at a central point, the applicable area rate shall be adjusted upward above the base area rate: (1) For gas produced in the Panhandle and Hugoton Fields: (i) Prior to July 1, 1972, 2 cents per Mcf. (ii) On or after July 1, 1972, 2.5 cents per Mcf. (2) For gas produced from fields or reservoirs other than the Panhandle or Hugoton Fields, 1 cent per Mcf. (3) In all instances where deliveries are nominated for the gathering allowance, or claim to the same is otherwise made, that portion of any rate or charge attributable to such gathering allowance, and made effective pursuant to the Order herein, shall be charged and collected subject to refund, with interest at 7 percent per annum, pending the Commission's determination, whether such gathering allowance is, in fact, applicable. (f) Adjustments for tax changes: The applicable area rate shall be adjusted upward by 75 percent of the amount of any applicable new State or Federal production, severance, or similar taxes, effective subsequent to January 29, 1970, and shall be adjusted upward by 75 percent of the amount of any increase in existing State or Federal production, severance, or similar taxes, subsequent to January 29, 1970, and shall be adjusted downward by 75 percent of the amount of any decrease in existing State or Federal production, severance, or similar taxes subsequent to January 29, 1970. (g) The Hugoton-Anadarko area consists of the State of Kansas, Texas Railroad Commission District No. 10, and the Oklahoma counties of Cimarron, Texas, Beaver, Harper, Woodward, Ellis, Woods, Alfalfa, Grant, Major, Garfield, Roger Mills, Dewey, Custer, Blaine, Kingfisher, Canadian, Beckham, Washita, Caddo, and Grady, and that part of Stephens County lying within T. 2 N., RS. 4 and 5 W. (h) Prior to July 1, 1977, any seller seeking to charge rates in excess of |