eral Energy Administration, as well as staff members to be assigned by the Federal Power Commission;

(2) Consumer representatives, designated by the Secretaries of Health, Education and Welfare and Housing and Urban Development from members of the general public;

(3) Representatives of State and local governments, as designated by the National Governors' Conference, the National Association of Regulatory Utility Commissioners, the Conference of Mayors, and the National Association of Counties;

(4) Representatives of the natural gas industry, including interstate and intrastate natural gas pipelines and local distribution companies.

(d) These personnel shall be further divided into working groups, as necessary.

§ 1000.3 Details for daily and weekly consultation through conference procedures.

(a) As provided in Order No. 1, representatives of various parties are to participate in conferencing procedures under Pub. L. 95-2. The Emergency Gas Requirements Group will meet weekly on Wednesday at 10 a.m., Room 9200, 825 North Capitol Street NE., Washington, D.C. 20426. The functions of this group are to review the prior week's national gas operations, consider general gas transfer operational guidelines covering the next week's gas flows, consider plans for refilling storage during future periods and to assemble data for reports to the President through the Administrator concerning actions taken under Pub. L. No. 95-2.

(b) The Daily Work Group will meet in Room 9200, 825 North Capitol Street NE., Washington, D.C. at 8:30 a.m. The functions of this group are to include the maintenance of daily contact with pipelines and distributors to determine their expected daily requirements and supply, to comment on requests for orders requiring the transportation and/or deliveries of gas and to recommend proposed actions appropriate to the resolution of these matters. The Daily Work Group will meet with the Emergency Gas Re

quirements Group at their weekly meetings.

(c) The membership and functions of both groups will change from time to time as the situation demands.

§ 1000.4 General criteria for emergency purchases under section 6 of Pub. L. No. 95-2.

(a) Under section 6(a) of the Act the President may authorize emergency purchases of gas upon appropriate terms and conditions which shall include provisions for fair and equitable prices. Until futher order, the Administrator herein determines that the term "fair and equitable" is satisfied by the setting of price levels comparable to the price at which natural gas has recently sold in intrastate commerce. No subsequent action by the Administrator may require a refund of any monies collected or the reduction of prices in any transaction complying with this section and otherwise complying with the act.

(b) Emergency purchases may be made without prior notification to or authorization by the Administrator where the price for such sales is equal to or less than $2.25 per MMBtu, inclusive of all State and local taxes and other adjustments.

(1) With respect to a wellhead sale of natural gas, $2.25 per MMBtu is the maximum consideration that may be received by the seller if the natural gas is delivered at the wellhead without prior notification to or authorization by the Administrator. The price is inclusive of any form of payment to the seller or to any affiliate of the seller for any services however denominated that are necessary to deliver the gas at the wellhead.

(2) The seller or any affiliate of the seller may not receive in the transaction any additional charges above for commissions, brokerage fees, finders fees or similarly described charges.

(c) Where the seller of the gas will be required to use alternate fuel to replace the volumes sold, emergency purchases may be made without prior notification to or authorization by the Administrator, where such price is equal to or less than the cost of alternate fuel plus 7 percent. No subse

quent action by the Administrator may require a refund of any monies collected or the reduction of prices in any transaction complying with this section and otherwise complying with the Act.

(d) Where a distribution company or intrastate pipeline makes an emergency sale it may receive its overall replacement cost plus applicable transportation and storage costs, if any. No subsequent action by the Administrator may require a refund of any monies collected or the the reduction of prices in any transaction complying with this section and otherwise complying with the Act. Emergency purchases may be made without prior notification to or authorization of the Administrator where such price is equal to or less than its overall replacement cost plus applicable transportation and storage costs, if any.

(e) Purchase of natural gas at prices in excess of the levels set forth above shall be permitted only upon authorization by the Administrator upon a showing that the subject gas is not otherwise available, and that the purchase of such gas by the purchaser will promote the objectives of this Act and is fair and equitable in the circumstances. Where the seller of the gas will be required to use alternate fuel to replace the volumes sold, the Administrator will consider the appropriateness of such price, based upon the cost of alternate fuel suitably adjusted for loss of efficiency and increased maintenance costs. Upon authorization of such higher price, no subsequent action by the Administrator may require a refund of any monies collected or the reduction of prices in any transaction so authorized.

(f) When a transaction is effected prior to or after February 3, 1977, including all delivery or transportation arrangements, whether or not covered by an express authorization of the Administrator in a specific order, the transaction shall be deemed to be "authorized" and "ordered" for purposes of Sections 6 and 9 of the Act.

§ 1000.5 Reporting requirements.

(a) Section 12 of the Act requires weekly reporting of prices and vol

umes of natural gas delivered, transported or contracted for. Therefore, within 72 hours of the commencement of deliveries in any transaction under the Act, the purchaser or recipient of gas shall advise the Administrator in writing:

(1) The section of the Act or Administrator's orders or regulations under which the transaction is made;

(2) The estimated volumes to be delivered on a daily basis and in the aggregate;

(3) The price (on an MMBtu basis) and the basis on which such price is derived;

(4) The name, business address and telephone number of the seller or sellers;

(5) How the gas is being transported and the compensation paid for transportation;

(6) Whether the gas involved has been sold under FPC emergency procedures within 60 days of the report;

(7) The amount and method of determination of any broker's fees, commissions, or finder's fees paid in relation to the transaction;

(8) Other relevant terms and conditions of the transaction.

(b) If the deliveries began before February 11, 1977, this information shall be filed by February 16, 1977, or within 72 hours of receipt of actual notice.

(c) On the second Wednesday following commencement of deliveries, and on each Wednesday thereafter, the recipient shall report the actual prices and volumes for all deliveries.

(d) Any person selling gas pursuant to § 1000.4, shall within 15 days of the commencement of deliveries, and on the first of each month thereafter, file with the Administrator a statement setting forth either:

(1) The details of its conversion to alternate fuel which made available the gas sold under the order. Such statement shall contain a computation of the amounts and prices of the alternate fuel used or purchased, and any other information relevant to the derivation of the price being charged for the gas from the cost of alternate fuel;

or

(2) A statement setting forth its overall replacement costs for gas and the method of derivation of the price charged for the sale of gas under the order from such replacement costs.

§ 1000.6 Emergency use exemptions.

(a) Any pipeline which complies with an order to transport gas or construct and operate facilities to transport gas when that gas has been authorized as an emergency purchase under section 6(a) of the Act is not subject to regulation under the Natural Gas Act or to regulation as a common carrier under any provision of state law.

(b) Section 9(b) of the Act makes certain contractual provisions concerning the commingling of gas unenforceable, if an authorization under section 6(a) of the Act applies to the delivery, transportation or contract for supplies of such gas.

§ 1000.7 Emergency supplies.

(a) "Emergency supplies" in section 6 of the Act shall be deemed to mean natural gas that is necessary to enable the purchasing party to serve uses of natural gas other than the boiler fuel uses and industrial use with alternate fuel capability specified in Priorities 4 through 9 (18 CFR 2.78(a)(1)(iv)-(ix)) below:

(4) Firm industrial requirements for boiler fuel use at less than 3,000 Mcf per day, but more than 1,500 Mcf per day, where alternate fuel capabilities can meet such requirements.

(5) Firm industrial requirements for large volume (3,000 Mcf or more per day) boiler fuel use where alternate fuel capabilities can meet such requirements.

(6) Interruptible requirements of more than 300 Mcf per day, but less than 1,500 Mcf per day, where alternate fuel capabilities can meet such requirements.

(7) Interruptible requirements of intermediate volumes (from 1,500 Mcf per day through 3,000 Mcf per day), where alternate fuel capabilities can meet such requirements.

(8) Interruptible requirements of more than 3,000 Mcf per day, but less than 10,000 Mcf per day, where alternate fuel capabilities can meet such requirements.

(9) Interruptible requirements of more than 10,000 Mcf per day, where alternate fuel capabilities can meet such requirements.

(b) The restrictions set forth in § 1000.7 (a) are applicable only to the period prior to May 1, 1977. Thereafter any interstate pipeline or local distribution company served by an interstate pipeline may purchase emergency supplies of natural gas under Section 6(a) of the Act without regard to the restrictions set forth in § 1000.7(a). [42 FR 21104, Apr. 25, 1977, as amended at 42 FR 34499, July 6, 1977]

§ 1000.8 Purchaser qualification for emergency purchases.

(a) From February 22, 1977 until April 30, 1977, no pipeline or distribution company may contract to purchase emergency supplies pursuant to section 6 of Pub. L. 95-2 if contemporaneously with execution of the contract, the pipeline or distribution company is delivering directly or indirectly any natural gas for uses defined in 18 CFR 2.78(a)(1)(iv)-(ix).

(b) The obligation to determine whether it is qualified to make such a purchase is imposed on the purchaser, not the seller. Each sale consummated pursuant to section 6(a) of the Act (91 Stat. 4, 8) shall be deemed to be authorized as to the seller and any person transporting such gas for the purchaser if the seller receives from the purchaser a statement, in a form satisfactory to the seller, that the purchaser is entitled to purchase such gas. The seller may deem the purchaser's execution of a contract to purchase gas a statement that the purchaser is qualified to purchase such gas.

(c) If it is later demonstrated that the purchaser was not qualified to purchase gas, neither the seller nor the reserves from which deliveries are made shall become subject to the jurisdiction of the Federal Power Commission under the Natural Gas Act (15 U.S.C. § 717, et seq.).

(d) The purchaser may be liable for civil and/or criminal penalties under section 11 of the Act (91 Stat. 9-10).

§ 1000.9 Allocation of charges for emergency purchases.

(a) (1) If curtailment under the pipeline's effective FPC curtailment plan is on a daily basis, the pipeline shall

allocate its available gas supplies, including Section 6 gas, on a daily basis.

(2) If curtailment under the pipeline's effective FPC curtailment plan is on a monthly or seasonal basis, the pipeline shall allocate its available gas supplies, including Section 6 gas, during each billing period on such basis. The allocation shall reflect the effect of each change in the level of curtailment imposed during the applicable billing periods.

(b) Section 6 gas purchased by a pipeline as agent for certain of its customers shall be allocated to those customers which received such gas. Those customers shall pay all charges attributable to such supplies including applicable transportation charges.

(c) Section 6 gas purchased for system supply shall be allocated to all customers in proportion to system volumes purchased by each customer during the applicable billing period. The charges for such volumes shall be billed pursuant to paragraph (e) below.

(d) The following billing procedures may be utilized by interstate pipeline companies to flow through all authorized costs of ENGA purchases pursuant to Section (6) of the Act:

(1) If the purchases are 2.0 percent or less of an interstate pipeline company's total purchases for the monthly billing period as forecasted in its September 1976 FPC Form No. 16 for the months of February and March 1977 and for ensuing months its April 1977 Form No. 16, the interstate pipeline company is authorized by the Administrator to seek FPC approval to use its effective FPC PGA tariff provision to flow the allocable jurisdictional costs through to its jurisdictional customers.

'Refers to purchases authorized by the Administrator or consistent with the guidelines laid down by the Administrator in various orders.

(2) If an interstate pipeline company's monthly ENGA purchases exceed 2.0 percent of its forecasted monthly sales in its September 1976 FPC Form No. 16 for the months of February and March 1977 and for ensuing months its April 1977 FPC Form No. 16, alternate billing options are available to the company. ENGA purchases would be allocated pro rata to its customers and storage on the basis of total sales and general system storage injections for the billing month and may be recovered as follows:

(i) The company may utilize the procedure set forth in FPC Docket No. RM77-10 which provides for notification of the costs of ENGA gas allocated to each customer on the billing date following delivery and recovery of the costs in the following monthly billing; or

(ii) The company may elect to bank the ENGA costs allocated to each customer through July 31, 1977. These banked costs, plus carrying costs computed at nine (9) percent per annum, would be recovered from each customer over an eleven month period beginning October 1, 1977 and ending August 31, 1978. Individual surcharges for each customer would be computed by dividing each customer's banked costs by each customer's forecasted eleven month sales included in the pipeline company's September 1977 FPC Form No. 16.

(3) If an interstate pipeline company elects to utilize the revenue recovery procedures provided in 2(ii) above, each individual surcharge will remain in effect until the interstate pipeline company recovers banked costs, plus applicable carrying charges. These individual surcharges should be set forth on a tariff sheet filed with the FPC.

[42 FR 22146, May 2, 1977]