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tion and discharge pressures, and com- (ii) The estimated total volumes of pression ratio.

proven reserves available to applicant (iii) Pressures and volumes of gas at by fee or under lease, segregated by the main line inlet and outlet connec gas fields and reservoirs thereof, tions at each compressor station.

giving names and locations of fields (iv) Pressures and volumes of gas at (state, county, or parish). each intake and takeoff point and at

(iii) The names and addresses of perthe beginning and terminus of all pro sons with whom applicant has gas purposed transmission facilities.

chase contracts, the effective dates (7) Exhibit G-1-Flow diagram re

and remaining terms in years of such flecting maximum capabilities. If Ex

contracts. hibit G does not reflect the maximum (iv) A study, showing the daily voldeliveries of all transmission facilities,

umes of natural gas which can and are proposed to be installed and operated

proposed to be obtained each year by applicant between distribution fa from each source of supply. cilities of applicant and the transmis

(v) Estimate of the Btu content of sion pipeline system of the proposed

the gas available to or requested by supplier (respondent), under most fa applicant for proposed service. vorable operating conditions, without

(vi) A study of each proposed gas installation of any facilities in addi

storage field showing: Location; geolotion to those proposed in the applica gy; original and present reserves for tion, include an additional diagram or

each reservoir; original and present diagrams to depict such maximum ca

pressure of each reservoir; proposed pabilities.

top and base storage pressures; pro(8) Exhibit G-II-Flow diagram

posed top and base gas volumes to be data. Exhibits G and G-I shall be ac

stored; a deliverability study, including

daily and annual injection and withcompanied by a statement of engineer

drawal rates and pressures, and maxi. ing design data in explanation and support of the diagrams and the pro

mum daily deliverability and maxiposed project, setting forth:

mum storage capacity under the pro

posed plan of development. (i) Assumption, bases, formulae, and

(10) Exhibit IMarket data. An estimethods used in the development and

mate by distribution systems of the preparation of such diagrams and ac

volumes of gas to be delivered during companying data.

the year in which proposed service is (ii) A description of the transmission

estimated to begin and during each of pipe and fittings to be installed, speci

the first 3 full years of operation of fying the diameter, wall thickness,

the proposed facilities, and actual data yield point, ultimate tensile strength,

of like import for each of the 3 years method of fabrication, and methods of

next preceding the filing of the applitesting proposed.

cation, together with: (iii) Type, capacity, and location of

(i) Names and locations of areas to each natural gas storage field or facili

be served, showing the number of resity, or other similar plant or facility di

dential, commercial, firm industrial, rectly attached to the applicant's

interruptible industrial, residential transmission system.

space heating, commercial space heat(9) Exhibit HTotal gas supply

ing, and other types of customers for data. A statement of the total gas

each distribution system to be served; supply committed to, controlled by, or and the names and locations of each possessed by an applicant which is firm and interruptible direct industrial available to it for the acts and the ser customer whose estimated consumpvices proposed, together with:

tion totals 10,000 Mcf or more in any (i) The estimated total volume of calendar month or 100,000 Mcf or proven reserves in place for each reser- more per year. voir in each field from which applicant (ii) Applicant's total annual and takes natural gas, giving names and lo- peak day gas requirements by classification of fields (state, county, or cation of service in subdivision (i) of parish).

this subparagraph, divided as follows: Gas requirements (a) for each distri. (12) Exhibit K-Cost of facilities. A bution area where gas is sold or to be detailed estimate of total capital cost sold by applicant at retail; (b) for all of the proposed facilities involved in main-line direct industrial customers the application, showing cost of conand (c) company use and unaccounted struction by operating units such as for gas.

distribution facilities, compressor sta(iii) Total past and expected curtail. tions, transmission pipelines and laterments of service by the applicant in als, measuring and regulating stations, each distribution area proposed to be and separately stating the cost of supplied with gas from the project, all rights-of-way, damages, surveys, mateto be listed by the classifications of rials, labor, engineering and inspecservice as indicated in subdivision (i) tion, administrative overhead, fees for of this subparagraph.

legal and other services, allowance for (iv) Explanation of basic factors funds used during construction, and l'sed in estimating future require contingencies. Detailed estimates of ments, including, for example: Peak cost of facilities required to be inday and annual degree day deficien stalled by the pipeline supplier shall cies, annual load factors of applicant's be separately stated. deliveries to its proposed customers; (13) Exhibit L-Financing. Plans for derivation of numbers of customers financing the proposed facilities for proposed to be served; individual con- which the application is filed, together sumer peak day and annual consump with: tion factors for each class of consum (i) A detailed description of appli. ers, with supporting historical data; cant's outstanding and proposed secuforecasted saturation of space heating rities and liabilities, showing amount as related to past experience; and full (face value and number), interest or detail as to all other sources of gas dividend rate, dates of issue and matusupply available to applicant and to rity, voting privileges, and principal each of its customers, including manu- terms and conditions applicable to facturing facilities and liquid petro- each. leum gas.

(ii) The manner in which applicant (v) A full description of all facilities, proposes to dispose of securities by other than transmission facilities, nec- private sale, competitive bidding or essary to provide service in the com otherwise; the persons, if known, to munities to be served.

whom they will be sold or issued, and (vi) A copy of each market survey evidence that such persons having made within the past 3 years for the agreed to purchase the securities, and markets proposed to be served.

if not known, the class or classes of (11) Exhibit J-Conversion to natu such persons. ral gas. If it is assumed that proposed (iii) A statement showing for each customers ir new areas or firm and in proposed issue, by total amount and terruptible direct industrial customers by unit, the estimated sale price and whose estimated consumption totals estimated net proceeds to the appli10,000 Mcf or more in any calendar cant. month or 100,000 Mcf or more in any (iv) A statement as to the extent to calendar year will convert from other which the applicant will rely on temfuels to natural gas, state the basis for porary financing in connection with such assumption and include a study the proposed construction, and stateshowing estimated cost of converting ments tending to substantiate the fact customers' facilities to natural gas. that such temporary loans will be The study should indicate the number made available. of customers of each of the other fuels (v) Statement of anticipated cash who applicant anticipates will convert flow, including provision during the to natural gas and the current cost of period of construction and the first 3 fuel to be displaced compared to the full years of proposed operation for incost of natural gas on an equivalent terest requirements, dividends, and Btu basis.

capital retirements.

(vi) Statement showing, over the life of each issue, the annual amount of securities which applicant expects to retire through operation of a sinking fund or other extinguishment of the obligation.

(vii) A balance sheet and income statement (12 months) of most recent date available.

(viii) Comparative pro forma balance sheets and income statements for the period of construction and each of the first 3 full years of operation, giving effect to the proposed construction and proposed financing of the project.

(ix) Any additional data and infor. mation upon which applicant proposes to rely in showing the adequacy and availability to it of resources for fi. nancing its proposed project.

(14) Exhibit M-Construction, operation, and management. A concise statement setting forth arrangements for supervision, management, engineering, accounting, legal, or other similar service to be rendered in connection with the construction or operation of the project if not to be performed by employees of applicant, including reference to any existing or contemplated agreements therefor.

(15) Exhibit N-Revenues, expenses income. Applicant shall submit pro forma statements for each of the first 3 full years of operation of all the proposed facilities, showing:

(i) Gas system annual revenues and volumes of natural gas related thereto subdivided by classes of service and further subdivided by sales to direct industrial customers, sales to other učilities (if any), transportation for other gas utilities and other sales.

(ii) Gas system annual operating expenses, cost of gas purchased, depreciation, depletion, taxes, utility income and resulting rate of return on net investment in gas plant, including work. ing capital, or in the case of a municipality applicant similar data and amortization-interest schedule for life of each bond issue related to the proposed project. Cost of gas purchased shall be at the currently effective applicable rate of the pipeline supplier or applicable rate filed by such pipeline supplier, but not effective at date of filing, whichever is the higher.

(iii) The information required by subdivisions (i) and (ii) of this subpar. agraph need not be furnished when the applicant furnishes as a part of its application a pro forma copy of a certificate of convenience and necessity or similar authorization issued to it by the local State commission having jurisdiction over its proposed operations.

(16) Exhibit P-Rates. (i) A statement of the rates proposed to be charged for the proposed services to be rendered. Indicate whether rates are subject to regulation by the State or local authorities.

(ii) Identification of the rate schedule of the natural gas company (respondent) under which gas is proposed to be purchased.

(b) Additional exhibits. Applicant shall submit additional exhibits necessary to support or clarify its application. Such exhibits shall be identified and designated as provided by § 156.3(b)(8).

(c) Additional information. Upon request by the Secretary, prior to or during hearing upon the application, applicant shall submit such additional data, information, exhibits, or other detail as may be specified. Such additional information shall conform to the requirements of 88 1.15, 1.16, and 1.17 of the rules of practice and procedure unless otherwise directed by the Secretary. (Order 234, 26 FR 4848, June 1, 1961, as amended by Order 280, 29 FR 4876, Apr. 7, 1964; Order 436, 36 FR 15530, Aug. 17, 1971)

$ 156.6 Acceptance for filing or rejection

of application. Applications will be docketed when received and the applicant so advised. Any application which does not conform to the requirements of $$ 156.1 through 156.5 will be rejected by the Secretary. All but one copy of a rejected application will be returned. An application which relates to an operation concerning which a prior application has been filed and rejected, shall be docketed as a new application. Such new application shall state the docket number of the prior rejected application.

$ 156.10 Hearings.

The Commission will schedule each application for public hearing at the earliest possible date giving due consideration of statutory requirements and other matters pending, with notice thereof as provided by $ 1.19(b) of this chapter: Provided, however, That where no protests or petitions to intervene have been received and accepted, the Commission may, after the due date for such protests or petitions to intervene, issue the requested order without hearing.

8 156.7 Service of application.

After an application has been accepted for filing, the Secretary will cause a copy thereof to be served upon the natural gas company (respondent) against which an order pursuant to section 7(a) of the Natural Gas Act has been requested. The natural gas company shall, within 30 days after the date of service of such application file its answer (an original and 7 conformed copies) to such application in which it shall state whether it has any objection to the grant of the application. If the natural gas company objects to the grant of the relief sought by the application, it shall fully state the grounds and reasons for its objections. The answer shall be verified and shall be signed by an executive of the natural gas company. In all other respects, answers shall conform to the applicable requirements of the Commission's rules of practice and procedure, particularly 88 1.9, 1.15, and 1.16 of this chapter. In the event that the respondent natural gas company fails to file a timely response to the application it shall be deemed to have agreed to the grant thereof. (Order 302, 30 FR 9302, July 27, 1965)

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§ 156.8 Notice of application.

Notice of each application filed, except when rejected in accordance with § 156.6, will be published in the FEDERAL REGISTER and copies of such notice mailed to the State affected thereby.

§ 156.9 Protests and interventions.

Notices of applications, as provided by $156.8 will fix the time within which any person desiring to partici. pate in the proceeding or to file a protest regarding the application, may file a petition to intervene or protest, and within which any interested regulatory agency desiring to intervene may file its notice of intervention. Failure to make timely filing will constitute ground for denial of participation, in the absence of extraordinary circumstances for good cause shown.



EXTENSION, ACQUISITION OR ABANDONMENT Sec. 157.5 Purpose and intent of rules. 157.6 Applications; number of copies; gen

eral requirements. 157.7 Abbreviated applications. 157.8 Acceptance for filing or rejection of

applications. 157.9 Notice of application. 157.10 Interventions and protests. 157.11 Hearings. 157.12 Dismissal of application. 157.13 Form of exhibits to be attached to

applications. 157.14 Exhibits. 157.15 Requirements for applications cov

ering acquisitions. 157.16 Exhibits relating to acquisitions. 157.17 Applications for temporary certifi

cates in cases of emergency. 157.18 Applications to abandon facilities or

service; exhibits.


part as may be pertinent. However, 157.20 General conditions applicable to every applicant shall file all pertinent certificates.

data and information necessary for a 157.22 Exemption of temporary acts and full and complete understanding of operations.

the proposed project, including its

effect upon applicant's present and FILINGS BY PRODUCERS AND GATHERERS OF future operations and whether, and at NATURAL GAS WHICH ARE ALSO NATURAL what docket, applicant has previously Gas COMPANIES

applied for authorization to serve any 157.23 Applications for certificates of

portion of the market contemplated public convenience and necessity by in

by the proposed project and the dependent producer.

nature and disposition of such other 157.24 Contents of application.

project. 157.25 Necessary exhibits.

(b) Every requirement of this part 157.26 Form of filing.

shall be considered as a forthright ob137.27 Other information.

ligation of the applicant which can 157.28 Temporary authorizations.

only be avoided by a definite and posi157.29 Exemption of Emergency Sales or

tive showing thai the information or Transportation.

data called for by the applicable rules 157.30 Abandonment of service.

is not necessary for the consideration 157.39 Applicability of 88 157.23 through 157.30.

and ultimate determination of the ap157.40 Exemption of small producers from plication. certain filing requirements.

(c) This part will be strictly applied 157.41 Condition for producer certificates to all applications as submitted and of p iblic convenience and necessity.

the burden of adequate presentation 157.42 Exemption of certain emergency gas in intelligible form as well as justifica

transportation arrangements during the tion for omitted data or information coal emergency period.

rests with the applicant. AUTHORITY: Secs. 7, 16, 52 Stat. 824, as amended, 830; 15 U.S.C. 7171, 7170, unless

(17 FR 7386, Aug. 14, 1952, as amended by

Order 280, 29 FR 4876, Apr. 7, 1964) otherwise noted. APPLICATIONS FOR CERTIFICATES OF $ 157.6 Applications; number of copies:

AND FOR ORDERS PERMITTING AND AP (a) Applicable rules. An original and
PROVING ABANDONMENT UNDER SEC- 7 conformed copies of an application
TION 7 OF THE NATURAL GAS ACT, AS under this part shall be furnished to
AMENDED, CONCERNING ANY OPER the Commission. The Commission re-
ATION, SALES SERVICE, CONSTRUCTION, serves the right to request additional
EXTENSION, ACQUISITION OR ABAN copies. In all other respects applica-

tions shall conform to the require

ments of $$ 157.5 through 157.14, and $ 157.5 Purpose and intent of rules.

other applicable requirements of the (a) Applications under section 7 of Commission's rules of practice and the Natural Gas Act shall set forth all procedure, particularly $$ 1.5, 1.15, information necessary to advise the 1.16, and 1.17 of this chapter. AmendCommission fully concerning the oper ments to or withdrawals of applicaation, sales, service, construction, ex tions shall conform to the requiretension, or acquisition for which a cer- ments of $ 1.11 of this chapter. If the tificate is requested or the abandon application involves an acquisition of ment for which permission and ap facilities, it shall conform to the addiproval is requested. Some applications tional requirements prescribed by may be of such character that an ab- 88 157.15 and 157.16. breviated application may be justified (b) General content of application; under the provisions of § 157.7. Appli- filing fee. Each application filed shall cations for permission and approval to be accompanied by the fee prescribed abandon pursuant to section 7(b) of in part 159 of this subchapter and the Act shall conform to § 157.18 and shall set forth the following informato such other requirements of this tion:

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