C.F.R. » Title 18 » CHAPTER I—FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY › SUBCHAPTER I—OTHER REGULATIONS UNDER THE NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES › PART 284—CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES › Subpart G—Blanket Certificates Authorizing Certain Transportation by Interstate Pipelines on Behalf of O…

18 C.F.R. § 284.221

General rule; transportation by interstate pipelines on behalf of others

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(a) Blanket certificate. Any interstate pipeline may apply under this section for a single blanket certificate authorizing the transportation of natural gas on behalf of others in accordance with this subpart. A certificate of public convenience and necessity under this section is granted pursuant to section 7 of the Natural Gas Act.

(b) Application procedure. (1) An application for a blanket certificate under this section must be filed electronically. The format for the electronic application filing available through the Commission's website, https://www.ferc.gov, and must include:

(i) The name of the interstate pipeline; and

(ii) A statement by the interstate pipeline that it will comply with the conditions in paragraph (c) of this section.

(2) Upon receipt of an application under this section, the Commission will conduct a hearing pursuant to section 7(c) of the Natural Gas Act and § 157.11 of this chapter and, if required by the public convenience and necessity, will issue to the interstate pipeline a blanket certificate authorizing such pipeline company to transport natural gas, as provided under this subpart.

(c) General conditions. Any blanket certificate under this subpart is subject to the conditions of subpart A of this part.

(d) Pre-grant of abandonment. (1) Except as provided in paragraph (d)(2) of this section, abandonment of transportation services is authorized pursuant to section 7(b) of the Natural Gas Act upon the expiration of the contractual term or upon termination of each individual transportation arrangement authorized under a certificate granted under this section.

(2) Paragraph (d)(1) of this section does not apply if the individual transportation arrangement is for firm transportation under a contract with a term of one year or more, and the firm shipper:

(i) Exercises any contractual right to continue such service; or

(ii) Gives notice that it wants to continue its transportation arrangement and will match the longest term and highest rate for its firm service, up to the applicable maximum rate under § 284.10, offered to the pipeline during the period established in the pipeline's tariff for receiving such offers by any other person desiring firm capacity, and executes a contract matching the terms of any such offer. To be eligible to exercise this right of first refusal, the firm shipper's contract must be for service for twelve consecutive months or more at the applicable maximum rate for that service, except that a contract for more than one year, for a service which is not available for 12 consecutive months, would be subject to the right of first refusal.

(e) Availability of regular certificates. This subpart does not preclude an interstate pipeline from applying for an individual certificate of public convenience and necessity for any particular transportation service.

(f) Cross references. (1) Any local distribution company served by an interstate pipeline may apply for a blanket certificate to perform certain services under § 284.224 of this chapter.

(2) Any interstate pipeline may apply under subpart F of part 157 of this chapter for a blanket certificate to construct or acquire and operate certain natural gas facilities that are necessary to provide transportation under § 284.223.

(3) Section 157.208 of this chapter provides automatic authorization for the construction, acquisition, operation, replacement, and miscellaneous rearrangement of certain eligible facilities, as defined in § 157.202 of this chapter, subject to limits specified in § 157.208(d) of this chapter and § 284.11.

(4) Authorization for delivery points is subject to the automatic authorization under § 157.211(a)(1) and the prior notice procedures under § 157.211(a)(2) and § 157.205.

(g) Flexible receipt point authority. (1) An interstate pipeline authorized to transport gas under a certificate granted under this section may, at the request of the shipper and without prior notice:

(i) Reduce or discontinue receipts of natural gas at a particular receipt point from a supplier; and

(ii) Commence or increase receipts at a particular receipt point from that supplier or any other supplier.

(2) The total natural gas volumes received by the interstate pipeline following any such reassignment under this paragraph must not exceed the total volume of natural gas that the interstate pipeline may transport on behalf of the shipper under a certificate granted under this section.

(3) The receipt points to which natural gas volumes may be reassigned under this paragraph include eligible facilities under § 157.208 which are authorized to be constructed and operated pursuant to a certificate issued under subpart F of part 157 of this chapter.

(h) Flexible delivery point authority. (1) An interstate pipeline authorized to transport gas under a certificate issued pursuant to this section may at the request of the shipper and without prior notice:

(i) Reduce or discontinue deliveries of natural gas to a particular delivery point; and

(ii) Commence or increase deliveries at a particular delivery point.

(2) The total natural gas volumes delivered by the interstate pipeline following any such reassignment must not exceed the total amount of natural gas that the interstate pipeline is authorized under a certificate issued pursuant to this section to transport on behalf of the shipper.

(3) The delivery points to which natural gas volumes may be reassigned under this paragraph include facilities authorized to be constructed and operated only under § 157.211 and the prior notice conditions of § 157.205 of this chapter.

[Order 436, 50 FR 42496, Oct. 18, 1985, as amended by Order 433-A, 51 FR 43607, Dec. 3, 1986; Order 636, 57 FR 13317, Apr. 16, 1992; Order 636-A, 57 FR 36217, Aug. 12, 1992; Order 581, 60 FR 53073, Oct. 11, 1995; Order 603, 64 FR 26610, May 14, 1999; Order 637, 65 FR 10222, Feb. 25, 2000; Order 637-A, 65 FR 35765, June 5, 2000; Order 899, 88 FR 74031, Oct. 30, 2023]
Notes of Decisions
Cited in 12 cases (1 in the last 5 years), 1990–2022 · leading case: United Distrib. Companies v. Fed. Energy Regulatory Comm'n, Windward Energy & Mktg. Co., Intervenors, 88 F.3d 1105 (D.C. Cir. 1996).
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United Distrib. Companies v. Fed. Energy Regulatory Comm'n, Windward Energy & Mktg. Co., Intervenors, 88 F.3d 1105 (D.C. Cir. 1996). · cites it 6× “636-B, ¶ 61,272, at 62,012-13; see 18 C.F.R. § 284.221 (g)-(h). Even though this is the court’s first occasion to address Order No.”
Georgia Indus. Grp. v. Fed. Energy Regulatory Comm'n, South Georgia Nat. Gas Co., Intervenors, 137 F.3d 1358 (D.C. Cir. 1998). · cites it 3× “¶ 61,251 at 62,769, an assessment GIG does not dispute. GIG’s complaint, that the pre-granted abandonment requirement subjects a minority of customers to riskier and costlier procedures for preserving their service while treating similarly situated customers differently, was…”
Interstate Nat. Gas Ass'n of Am. v. Fed. Energy Regulatory Comm'n, 285 F.3d 18 (D.C. Cir. 2002). “Under this mechanism, the Commission makes ex ante generic findings of public convenience and necessity, and issues a blanket certificate that allows a pipeline to terminate service at the end of the shipper’s contract term.”
Sw. Gas Corp. v. Fed. Energy Regulatory Comm'n, 145 F.3d 365 (D.C. Cir. 1998). “18 C.F.R. §§ 284.221 (g) & (h) (1997). The Commission intended this flexibility to achieve the goals of the capacity release program we have just described.”
Monsanto Co. v. Fed. Energy Regulatory Comm'n, 963 F.2d 827 (5th Cir. 1992). “*829 Although Florida Gas had applied for a five-year authorization, FERC acted pursuant to a fixed policy and authorized the transportation service for one year or until Florida Gas accepted a blanket “open access” transportation certificate under 18 C.F.R. § 284.221 (whichever…”
Gas Transmission Nw. Corp. v. Fed. Energy Regulatory Comm'n, 363 F.3d 500 (D.C. Cir. 2004). “See GTN’s October 15, 2002 Filing (“October 2002 Filing”) at 4; see generally 18 C.F.R. § 284.221 (d)(2). GTN thus sought a partial waiver of the ROFR requirement, supporting its request by likening its program to a group of “capacity reservation” cases in which the Commission…”
Am. Gas Ass'n v. Fed. Energy Regulatory Comm'n, 912 F.2d 1496 (D.C. Cir. 1990). “” 18 CFR § 284.221 (d) (1989). Without pregranted abandonment, a pipeline would have been legally bound to make any such service available indefinitely, despite expiration of the contract, until it received individual Commission approval under § 7(b) of the Natural Gas Act, 15 U.”
Colorado Interstate Gas Co. v. Fed. Energy Regulatory Comm'n, 146 F.3d 889 (D.C. Cir. 1998). “See 18 C.F.R. § 284.221 . These require the pipeline to make its transportation service available on a nondiscriminatory basis under open access tariffs determined by the Commission.”
Transcontinental Gas Pipe Line Corp. v. Fed. Energy Regulatory Comm'n, 485 F.3d 1172 (D.C. Cir. 2007). “See 18 C.F.R. § 284.221 (d). Paragraph 2 denies that particular abandonment procedure to Transco; it does not suggest, however, that Transco can abandon energy services before the expiration of Transco’s 20-year contract term.”
Tennessee Gas Pipeline Co. v. Fed. Energy Regulatory Comm'n, 898 F.2d 801 (D.C. Cir. 1990). “18 C.F.R. § 284.221 (aHb) (1989). The purpose of this order was to open up the transportation market for natural gas.”
Tenneco Gas v. Fed. Energy Regulatory Comm'n, 969 F.2d 1187 (D.C. Cir. 1992). “18 C.F.R. § 284.221 . Subpart H has been reserved and subpart K allows interstate pipelines to transport gas on the outer-continental shelf under § 7 of the NGA.”
BP Am. v. FERC (5th Cir. 2022). “See 18 C.F.R. § 284.221 (a). BP does not dispute that the natural gas it sold had been transported under a contract with the above-quoted language.”
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