Code of Federal Regulations: Containing a Codification of Documents of ...

(ii) When new rates or changes in present rates are proposed or when the proposed facilities will result in a material change in applicant's average cost of service, such statement shall be accompanied by supporting data show

ing:

(a) System cost of service for the first calendar year of operation after the proposed facilities are placed in service.

(b) An allocation of such costs to each particular service classification, with the basis for each allocation clearly stated.

(d) Gas operating expenses, segregated functionally by accounts.

(e) Depletion and depreciation.

Taxes with the basis upon which computed.

(b) Additional exhibits. Applicant shall submit additional exhibits necessary to support or clarify its application. Such exhibits shall be identified and designated as provided § 157.6(b)(6).

(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. An original and 7 conformed copies of such additional information shall be furnished to the Commission and shall conform in all other respects with §§ 1.15, 1.16, and 1.17 of this chapter unless otherwise directed by the Secretary. The Commission reserves the right to request additional copies.

(d) Availability of Commission staff for advice prior to formal filing. Prior to filing an application, any person may informally confer with the staff of the Commission to obtain advice on any problem of statement or presentation of an application or any part thereof.

(Secs. 3(e), 7, 8, 82 Stat. 721, 725; 49 U.S.C. 1672, 1676, 1677)

[17 FR 7387, Aug. 14, 1952, as amended by Order 185, 21 FR 1486, Mar. 8, 1956; Order 196, 22 FR 2882, Apr. 24, 1957; Order 280, 29 FR 4877, Apr. 7, 1964; Order 407, 35 FR 11390, July 16, 1970; Order 415, 35 FR 18961, Dec. 15, 1970; Order 430, 36 FR 7052, Apr. 14, 1971; Order 436, 36 FR 15530, Aug.

17, 1971; Order 415-C, 37 FR 28416, Dec. 23, 1972; Order 474, 38 FR 13479, May 22, 1973; Order 514, 39 FR 37975, Oct. 25, 1974]

§ 157.15 Requirements for applications covering acquisitions.

An application for a certificate authorizing acquisition of facilities, in addition to complying with the applicable provisions of §§ 157.5 through 157.14, shall include a statement showing:

(a) The exact legal name of the vendor, lessor, or other party in interest (hereinafter referred to as "vendor") the State or other laws under which vendor was organized, location of vendor's principal place of business, and a description of the business, operation or property of vendor covered by the application.

(b) Any certificate from the Commission, held by vendor, relating directly to the facilities which applicant seeks to acquire, citing the order, date thereof, docket designation, and title of the proceeding; reference to and designation of any companion applications by vendor for permission and approval pursuant to section 7(b) of the Natural Gas Act.

(c) The manner in which the facilities are to be acquired, the consideration to be paid, the method of arriving at the amount thereof, and anticipated expenses in addition to the consideration.

(d) The facilities to be acquired, their present use, their proposed use after acquisition, and whether they constitute all of vendor's facilities.

(e) Any franchise, license, or permit respecting the facilities involved, showing expiration date thereof, and the effect of the proposed acquisition thereon.

[17 FR 7389, Aug. 14, 1952]

§ 157.16 Exhibits relating to acquisitions.

In addition to the exhibits required by § 157.14, every application involving acquisition of facilities shall be accompanied by the exhibits listed below. Together with each exhibit applicant shall set forth a full and complete explanation of the data submitted, the manner in which it was obtained, and the reasons for the conclusions which

(i) Description of the rearranged facilities installed, e.g., location, miles and size of pipeline (including wall thickness and minimum yield point), taps, laterals, lateral loop lines, metering and regulating facilities.

(ii) Actual cost of facilities subdivided by size of pipeline, taps, laterals, lateral loop lines, metering and regulating facilities, and appurtenant facilities.

(d) Underground gas storage facilities-budget-type application. An abbreviated application requesting tudget-type certificate authorizing the construction and operation of natural gas pipeline and compression facilities for the testing and development of underground reservoirs for the possible storage of gas for a three-year period may be filed when:

(1) The volume of natural gas to be injected into the prospective storage fields does not exceed a total of 10,000,000 Mcf, with no more than 2,000,000 Mfc being injected into any single field.

(2) Gas will be injected for testing purposes only during off-peak periods.

(3) No storage field developed pursuant to this section will be utilized to render service without further authorization by the Commission; except that gas may be withdrawn on occasion for testing purposes.

(4)(i) The total expenditures for the three-year period does not exceed $3,000,000 or $1,000,000 for any oneyear period. These costs shall include expenditures for leases, wells, pipeline, compressor and related facilities, but shall not include the cost of the gas to be used for testing purposes.

(ii) Any application proposing the construction of facilities having an estimated cost in excess of the amounts specified in subdivision (i) of this subparagraph shall be accompanied by a request for waiver of the provisions of such subdivision and will be granted only for good cause shown.

(5) The cost of any project ultimately determined to be infeasible for storage shall be charged to Account No. 822 of Part 201, Underground Storage Exploration and Development Expenses.

(6) Applicant agrees to submit within 60 days after the end of each year of the three-year budget period a statement, under oath, showing for each project:

(i) A description of the facilities constructed and the type of storage reservoir; i.e., gas expansion or dry gas, water-drive or aquifer.

(ii) The location of the facilities. (iii) The cost of such facilities. (iv) The monthly volumes of gas injected into and withdrawn from each reservoir.

(v) An estimate of the storage capacity and daily deliverability of each project.

(7) If the reservoir to be tested and developed is an aquifer-type reservoir, applicant agrees to submit for each such project quarterly reports, under oath, containing the following information in addition to the data required by subparagraph (6) of this paragraph:

(i) The daily volumes of natural gas injected into and withdrawn from the aquifer during the quarter and the volume of gas in the aquifer at the end of each month.

(ii) The maximum daily injection or withdrawal rate experienced during the quarter and the average working pressure on such maximum days taken at a central measuring point where the total volume injected or withdrawn is measured.

(iii) Results of any tracer program by which leakage of gas may be determined.

(iv) Any pressure surveys of gas wells and water levels in observation wells conducted during the quarter by individual well. Copies of any core analyses, gamma ray, neutron or other electric log surveys and back-pressure tests taken during the quarter.

(v) A map of the storage project showing the location of the wells, the latest revised structure contours, the location and extent of the gas bubble. This map need not be filed if there is no material change from the map previously filed.

(vi) Such other data or reports which may aid the Commission in the evaluation of the project.

(vii) Reports shall continue to be filed quarterly through the three-year period and thereafter until the project is either certificated for regular service or abandoned, unless otherwise ordered by the Commission.

(e) Direct sales measuring station and related minor facilities-budgettype abandonment application. An abbreviated application requesting a budget-type authorization permitting the cessation of service and removal of direct sales measuring, regulating, and related minor facilities during a given 12-month period may be filed when:

(1) The deliveries to any one direct sale customer through any one of the sales measuring facilities to be abandoned have not exceeded 100,000 Mcf

annually during the last year of

service.

(2) The applicant will not abandon any service unless it has received a written request, or written permission, from the direct sale customer to terminate service. In the event such request or permission cannot be obtained, a statement certifying that the customer has no further need for the service must be filed.

(3) The applicant agrees to file with the Commission, within 60 days after expiration of the authorized abandonment period:

(i) A statement showing for each individual project a description of the facilities abandoned and the docket numbers of the prior proceedings in which the facilities or services abandoned were certificated.

(ii) A statement indicating in each case the reason why the service or facilities were abandoned, together with a copy of the written request or permission, or statement in lieu thereof, for termination of service. In the event a written request or permission cannot be obtained from the customer, applicant shall set forth in his statement a detailed explanation of how the abandonment is in the public interest.

(iii) A statement showing the effect of the abandonment upon any rate schedules or tariffs on file with this Commission.

(iv) A concise description of the changes of property, indicating the cost of property abandoned in place,

the cost of property removed and salvaged together with the relevant information required by paragraph (f) of § 157.18.

(v) A geographic map or maps of suitable scale and detail showing the location of the facilities abandoned.

(f) Applications to include exhibit FIV. All applications filed in accordance with paragraphs (b), (c), (d), and (g) of this section shall include and exhibit F-IV as prescribed in § 157.14(a)(6-d).

(g) Field gas compression facilities— budget-type application. An abbreviated application requesting budget-type authorization to permit (1) abandonment of field compression and related metering and appurtenant facilities, (2) construction of new or additional field compression and related metering and appurtenant facilities, and (3) removal and relocation of existing field compression and related metering and appurtenant facilities during a given twelve-month period and operation of said facilities may be filed when:

(i) The proposed construction, relocation, removal, and abandonment will not result in changing applicant's system salable capacity or service from that authorized prior to the date of filing the budget application, but will permit the applicant more effectively to utilize the facilities to take gas into its system from existing sources of supply for use in meeting the requirements of its customers. Existing sources of supply are those gas producing fields, reservoirs, wells, or formations from which applicant was receiving gas at the date of filing the budget application, except those producing fields, reservoirs, wells, or formations used exclusively for making emergency sales under §§ 2.68 and 2.70 of this chapter or §§ 157.22 and 157.29.

(ii) The facilities involved in the budget application are those used or to be used to transport natural gas into applicant's interstate system, pursuant to Commission authorization, from existing sources of natural gas supply, as defined above, including its own producing fields, or purchase from other producers or sellers or receipts of gas under exchange arrange