together with pro forma rate schedule sheets, notices of cancellation, or other tariff filings required to be made with this Commission.

(f) Exhibit Y-Accounting treatment of abandonment. Concisely describe the changes of property, indicating the cost of property to be abandoned in place, the cost of property to be removed and salvaged, the proposed disposition of salvaged material, and a description of equipment to be relocated setting forth its cost, its proposed new location, and the extent of rehabilitation required. Include the information required below.

(1) State the proposed accounting treatment for property changes, showing, for example, retirements by primary plant accounts, cost of removal, salvage realized for materials and equipment sold, original cost of reusable materials and equipment recovered (see Account 154 of the Uniform System of Accounts), and maintenance costs for reconditioning of reusable materials and equipment.

(2) If the abandonment will be by sale of property, describe the property to be sold, together with the proposed accounting treatment as required by paragraph F of Gas Plant Instruction 5 of the Uniform System of Accounts. Applicant may use pro forma accounting entries based on estimated amounts, provided that upon consummation of the sale he must file proposed accounting entries in conformity with the requirements of the Uniform System of Accounts. If the proposed sale will result in a taxable gain to the applicant, indicate the amount of federal and state income taxes to be allocated to the gain. If no allocation is to be made, explain the reasons.

(3) State the amount of accumulated deferred income taxes attributable to the property to be abandoned. Indicate the proposed accounting treatment of those accumulated deferred taxes.

(g) Exhibit Z-Location of facilities. Unless shown on Exhibit V or elsewhere, a geographic map of suitable scale and detail showing, and appropriately differentiating between, all of the facilities proposed to be abandoned and the other existing facilities

of applicant, the operation or capacity of which will be directly affected by the facilities to be abandoned. This map shall clearly show the relationship of the facilities to be abandoned to the applicant's overall system and shall include:

(1) Location, length and size of pipelines.

(2) Location and size (rated horsepower) of compressor stations.

(3) Location and designation of each point of connection of existing facilities with (i) main line industrial and other consumers, pipeline or distribution companies and municipalities, indicating towns and communities served at wholesale or retail and (ii) gas-producing and storage fields, or other sources of gas supply. Designate on the map those facilities and services proposed to be abandoned.

[Order 280, 29 FR 4879, Apr. 7, 1964, as amended by Order 295, 30 FR 4130, Mar. 30, 1965]

§ 157.20 General conditions applicable to certificates.

Such of the following terms and conditions, among others, as the Commission shall find is required by the public convenience and necessity, shall attach to the issuance of each certificate and to the exercise of the rights granted thereunder.

(a) The certificate shall be void and without force or effect unless accepted in writing by applicant within 30 days from the issue date of the order issuing such certificate: Provided, however, That when an application for rehearing of such order is filed in accordance with section 19 of the Natural Gas Act, such acceptance shall be filed within 30 days from the issue date of the order of the Commission upon the application for rehearing or within 30 days from the date on which such application may be deemed to have been denied when the Commission has not acted on such application within 30 days after it has been filed: Provided further, That when a petition for review is filed in accordance with the provisions of section 19 of the Natural Gas Act, such acceptance shall be filed within 30 days after final disposi

tion of the judicial review proceedings thus initiated.

(b) Any authorized construction, extension, or acquisition shall be completed and in actual operation by applicant and any authorized operation, service, or sale shall be actually undertaken and regularly performed by applicant within (period of time to be specified by the Commission in each order) from the issue date of the Commission's order issuing the certificate.

(c) Applicant shall file with the Commission, in writing and under cath, an original and four conformed copies and, upon request, shall furnish an intervener with a single copy, of the following: (1) within ten days after the bona fide beginning of construction, notice of the date of such beginning; (2) each three months after. filing notice of commencing construction, a progress report showing the exact status of authorized construction; (3) within ten days after authorized facilities have been constructed and placed in service or any authorized operation, sale, or service has commenced, notice of the date of such placement and commencement and (4) within six months after authorized facilities have been constructed, a statement showing, on the basis of all costs incurred to that date and estimated to be incurred for final completion of the project, the cost of constructing authorized facilities, such total costs to be classified according to the estimates submitted in the certificate proceeding and compared therewith and any significant differences explained.

(d) With respect to an acquisition authorized by the certificate, applicant shall file with the Commission, in writing and under oath, an original and four conformed copies of the following: (1) Each 3 months after the issue date of the Commission's order issuing this certificate, a progress report showing the exact status of the acquisition; (2) within 10 days after acquisition and the beginning of authorized operations, notice of the dates of acquisition and the beginning of operations; and (3) within 6 months after consummation of the acquisition, a statement showing and explaining the cause for any differences between the

actual cost of the facilities acquired and the estimates of cost relied upon by applicant in the proceeding in which the certificate is issued.

(e) The certificate issued to applicant is not transferable in any manner and shall be effective only so long as applicant continues the operations authorized by the order issuing such certificate and in accordance with the provisions of the Natural Gas Act, as well as applicable rules, regulations, and orders of the Commission.

(f) The certificate herein issued shall be without force and effect unless the fees prescribed by § 159.2(b) and § 159.2(d), if any, of the Regulations Under the Natural Gas Act have been paid in accordance with the requirements thereof.

(g) In the interest of safety and reliability of service, facilities authorized by the certificate shall not be operated at pressures exceeding the maximum operating pressure set forth in Exhibit G-II to the application as it may be amended prior to issuance of the certificate. In the event the applicant thereafter wishes to change such maximum operating pressure it shall file an appropriate petition for amendment of the certificate. Such petition shall include the reasons for the proposed change. Nothing contained herein authorizes a natural gas company to operate any facility at a pressure above the maximum prescribed by state law, if such law requires a lower pressure than authorized hereby.

(Sec. 20, 52 Stat. 832; 15 U.S.C. 717s)

[17 FR 7389, Aug. 14, 1952, as amended by Order 280, 29 FR 4879, Apr. 7, 1964; Order 317, 31 FR 432, Jan. 13, 1966; Order 324, 31 FR 9348, July 8, 1966]

§ 157.22 Exemption of temporary acts and operation.

(a) Public interest does not require the issuance of a certificate for the construction and operation of facilities or the sale of natural gas necessary to assure maintenance of adequate natural gas service where interruption or serious curtailment of service exists or is threatened because of failure of facilities or failure or curtailment of supply or unusual and unexpected demand on such facilities or supply,

and where such acts and operations are limited to a single period of not more than sixty days or in the event a national emergency has been declared by the President, for six months or such further period as the Commission may, by order, allow.

(b) Public interest does not require the issuance of a certificate for the construction and operation of facilities necessary to render direct natural-gas service for use in the drilling of gas or oil wells or for use in the testing and purging of new natural-gas pipeline facilities.

(c) Every person undertaking any such construction and operation or sale under paragraph (a) of this section shall advise the Commission of the commencement of such acts or service and within ten days file (1) a statement in writing and under oath, together with four (4) conformed copies thereof, setting forth the purpose and character of the facilities, sales or services involved, a description of the operation and specific facilities constructed, the anticipated duration of the service, and (2) the rate schedule, contract or service agreement covering the sales or service involved as required by Parts 154 and 155 of this chapter.

(d) Emergency operations undertaken without certificate authorization pursuant to paragraph (a) of this section shall be discontinued upon the expiration of the 60-day period. In the national emergency, emergency operations shall be discontinued upon the expiration of the 6 months' period or any extension thereof ordered by the Commission. Each person undertaking any such construction or operation, pursuant to this section of the regulations desiring to retain such facilities in place shall file an application for a certificate of public convenience and necessity pursuant to the regulations under the Natural Gas Act with the Commission prior to the expiration of the exempt period herein.

(e) Operations undertaken without certificate authorization pursuant to paragraph (b) of this section shall be terminated upon the completion of the well or the purging or testing of the pipeline facilities. Every person

undertaking any construction and operation of facilities or service under paragraph (b) of this section shall file an original and two copies of an annual statement, by February 1 of each year, showing for each such construction and operation of facilities or service made during the previous calendar year:

(1) Description of the operation and specific facilities constructed including their location.

(2) Sales or service involved including total volume of gas delivered and revenues received.

(3) Dates of commencement and termination of the sales or service.

(4) Identification of the contract covering the sales or service, as required to be filed or reported under Part 155 of this chapter.

(Secs. 4, 5, 15, 52 Stat. 822, 823, 829; 56 Stat. 83, 84, 76 Stat. 72; 15 U.S.C. 717c, 717d, 717n)

[Order 192, 21 FR 9166, Nov. 24, 1956, as amended by Order 280, 29 FR 4879, Apr. 7, 1964; Order 391, 34 FR 17331, Oct. 25, 1969; Order 418, 35 FR 19174, Dec. 18, 1970; Order 280(a), 40 FR 3981, Jan. 27, 1975; Order 565, 42 FR 29002, June 7, 1977]

FILINGS BY PRODUCERS AND GATHERERS OF NATURAL GAS WHICH ARE ALSO NATURAL GAS COMPANIES

§ 157.23 Applications for certificates of public convenience and necessity by independent producer.

(a) Every independent producer of natural gas as that term is defined in § 154.91 of this chapter, who, on or since June 7, 1954, has engaged in the interstate transportation or sale of natural gas subject to the jurisdiction of the Commission, and who has not heretofore obtained from the Commission a certificate of public convenience and necessity pursuant to section 7 of the Natural Gas Act, as amended, shall, on or before December 1, 1954, file with the Commission an application (original and 3 copies) in accordance with §§ 157.24 through 157.27. The Commission reserves the right to request additional copies. Independent producers whose sales of natural gas subject to the jurisdiction of the Commission amount in the aggregate to less than 1,000,000 Mcf annually, may,

in lieu of the foregoing, file by December 1, 1954 an application (original and three copies) containing the information called for by Exhibit A set forth below. Pending action by the Commission on an application hereunder, the service for which authorization is sought shall be continued.

(b) No independent producer of natural gas shall, subsequent to the issuance of this part, engage in any new service with respect to the transportation of natural gas in interstate commerce or sale of such natural gas for resale in interstate commerce subject to the jurisdiction of the Commission without approval of the Commission, evidenced by a certificate of public convenience and necessity authorizing such transportation or sale upon application (original and 3 copies) pursuant to §§ 157.24 through 157.27. The Commission reserves the right to request additional copies. Independent producers whose sales of natural gas subject to the jurisdiction of the Commission will amount in the aggregate to less than 1,000,000 Mcf annually may, in lieu of the foregoing, file an application (original and three copies) containing the information called for by Exhibit A set forth below. Where the economic feasibility of a new pipe line or important extension or expansion of an existing pipe line depends upon proof of an adequate gas supply, all related applications necessary to effectuate the service shall be filed within time to enable the Commission to consider all related matters concurrently.

(c) Filings hereunder shall be made by signatory operators and signatory owners as provided in § 154.91 of this chapter.

Exhibit A (§ 157.23)

(5) Person responsible for application: (a) Name and title

(b) Mailing address

(6) Description of facilities used for operations for which certificate is requested (where applicable):

(a) Pipelines:

(i) Location

(ii) Length and diameter (iii) Capacity (Mcf daily) (b) Compressor stations: (i) Location

(ii) Horsepower

(iii) Capacity (Mcf daily) (c) Gasoline plants:

(i) Location

(ii) Capacity (Mcf daily)(d) Dehydration plants: (i) Location

(ii) Capacity (Mcf daily)(e) Purification plants: (i) Location

(ii) Capacity (daily) (f) Storage projects: (i) Location

(ii) Maximum volumes that can be stored Mcf

(7) Gas supply:

(a) Own production:

(i) Name and location of field

(ii) Acreage controlled

(b) Gas purchased:

(i) Name of seller

(ii) Name and location of field

(iii) Point of delivery to applicant

(8) Gas sales or transportation contracts (for each contract); 2

(a) Name of purchaser

(b) Point of delivery

(c) Contract volumes Mcf (daily or annually), indicating pressure base (d) Price at time of filing

(e) Date of contract

(f) Term of contract.

(g) Special conditions (if any)

[Order 174-B, 19 FR 8809, Dec. 23, 1954, as amended by Order 190, 21 FR 7617, Oct. 4, 1956; Order 196, 22 FR 2882, Apr. 24, 1957; Order 297, 30 FR 6518, May 12, 1965]

§ 157.24 Contents of application.

(a) Every application for a certificate of public convenience and necessity filed pursuant to § 157.23 shall contain as the contract summary, Commission Form No. 108 Schedules 502, 503, and the applicable portions of schedule 507. If the application is filed by an assignee seeking authority, as successor in interest, only to render

2 Contracts on file as rate schedules may be incorporated by references.

service previously authorized by the Commission or to initiate service resulting from a farmout agreement, he shall describe the service to be continued (1) under the original F.P.C. Docket No(s). granting authorization to the assignor and (2) the proposed disposition of the assignor's F.P.C. Gas Rate Schedule(s), and, if applicable, in addition to the refund obligations required by § 154.92(d)(3) indicate if the assignor intends to file bond or undertaking to assure total refund from the date increased rate of assignor becomes effective subject to refund or from date operation commenced under assignor's temporary certificate containing a refund condition, as the case may be. In addition, the application shall set forth in the order indicated the following:

(1) The exact legal name of the applicant; if the applicant is a corporation, the State or territory under the laws of which the applicant is organized, the location of applicant's principal place of business, and the names of all States where applicant is authorized to do business.

(2) The same data required by subparagraph (1) of this paragraph with respect to any predecessor in interest of the applicant bona fide engaged in the transportation or sale of natural gas subject to the jurisdiction of the Commission on June 7, 1954.

(3) The name, title, and post office address of the person to whom correspondence or communications in regard to the application is to be addressed. Unless advised to the contrary, the Commission will serve all notices, orders, and other papers, service of which is required, upon the person so named.

(4) A statement of pertinent facts showing that applicant or a predecessor in interest of applicant was a natural-gas company within the meaning of the Natural Gas Act and was bona fide engaged in transportation of natural gas in interstate commerce or sale of natural gas in interstate commerce for resale on June 7, 1954, or upon commencement of the proposed transportation or sale of natural gas would be a natural-gas company. Without limitation upon the requirements of

this paragraph, such statement shall include a showing of:

(i) The sources of the gas (a) produced by applicant or predecessor and (b) purchased by applicant or predecessor. In case of gas produced, give the approximate location of the fields and the points of delivery, and in the case of gas purchased, the names of the sellers and points of delivery.

(ii) The route or routes of the pipe lines over which such transportation or sale of natural gas was or will be accomplished.

(iii) Any communities served on June 7, 1954 or proposed to be served (a) at wholesale or (b) at retail.

(iv) The names of, and points of delivery to, any main line industrial customers (i.e., not located within communities under subdivision (iii) of this subparagraph) purchasing or proposing to purchase 25,000 Mcf or more per year. Such main line industrial customers purchasing 100,000 Mcf or more per year, shall be given the identifying designations I-1, 1-2, etc., which designations shall be used in lieu of names on Exhibit A of the application (§ 157.23).

(v) Any major appurtenant properties and facilities such as compressor stations, gasoline plants, dehydration plants, purification plants, and gas storage projects.

(b) Any information required which is already on file with the Commission may be incorporated by reference. If an applicant is unable to secure required information in time for filing with his application, a statement setting forth the reasons for his failure to file the missing information should be submitted with a request for further time, which may be granted up to 90 days.

[Order 174-B, 19 FR 8810, Dec. 23, 1954, as amended by Order 278, 29 FR 3700, Mar. 25, 1964; Order 556, 41 FR 52443, Nov. 30, 1976; Order No. 556A, 42 FR 41276, Aug. 16, 1977]

§ 157.25 Necessary exhibits.

There shall be filed with the application as a part thereof the following exhibits:

Exhibit A. Map. Each applicant under § 157.24 shall file as a part of his application a general map or sketch of applicant's facili