Current through Register Vol. 50, No. 9, September 20, 2024
A. All
definitions in this regulation are in accordance with those of §145.
B. This regulation shall apply to the rights
of the commissioner of conservation pursuant to
Section
501 et seq., of the Act to
determine whether or not excess capacity exists and to investigate the need for
using said excess capacity of an intrastate natural gas transporter hereinafter
identified as transporter with respect to transporting a gas supply owned by a
person other than the proposed transporter.
C. All applications to the commissioner by an
owner(s) of intrastate natural gas for an order directing a transporter to
transport said owner's gas in the transporter's intrastate pipeline system
hereinafter identified as transporter's pipelines, pursuant to the provisions
of Section 553 of the Act shall be in writing, verified under oath by an
individual having authority, shall be in the form approved by the commissioner,
shall be noticed upon the proposed transporter by certified mail, and shall
contain the following information:
1. the
legal status of the applicant as shown below and a statement in writing of
applicant's financial capabilities to construct, operate, maintain, and
terminate any required connecting lines onto the transporter's pipelines;
a. if a sole proprietorship, state the name
and address of the person owning said company;
b. if a partnership, state:
i. name, address and percentage of interest
of each and every partner owning 20 percent or more interest;
ii. if said partnership is an affiliate of
another entity, state the name and address and legal status of said
affiliate;
c. if the
applicant's legal status is a corporation, state:
i. the name and address of each shareholder
owning 20 percent or more of the shares, together with the number and
percentage of any class of voting shares of the corporation which such
shareholder is authorized to vote; and
ii. the name and address of each affiliate of
the corporation who could derive direct benefit from the proposed use of
transporter's pipelines, together with, in the case of an affiliate controlled
by the corporation, the number of shares and percentage of any class of voting
stock of that affiliate owned, directly or indirectly, by that corporation and,
in the case of an affiliate which controls that corporation, the number of
shares and the percentage of any class of voting stock of that corporation,
directly or indirectly owned by the affiliate;
iii. the nature of the services rendered by
the applicant and those affiliates identified in Clause c.ii above and to
whom;
iv. state of
incorporation;
2. the operating capability of the applicant;
a. evidence of approval to construct,
operate, and maintain any connecting pipeline facilities from the applicable
state and federal agencies;
b.
design information and details to conclusively demonstrate that all of the
applicant's connecting lines are properly sized for the proposed flow volumes
and in full accordance with all state and federal laws, rules and regulations,
including but not limited to Parts 191 and 192, Title 49, of the Code
of Federal Regulations, as amended;
c. a concise description of applicant's
existing operations pertaining to the application;
3. excess capacity requested for which the
proposed user thereof is willing to pay whether such capacity is used or
not;
4. the period of time that the
gas is to be transported;
5. if gas
proposed for transportation is to be delivered to the transporter's pipeline
from a third party's pipeline, where the third party is a certified intrastate
natural gas transporter or has been authorized by the commissioner to construct
and operate facilities for the transportation of natural gas in the state of
Louisiana, and the subject gas is to be purchased from said third party, the
applicant is not required to furnish the information as set forth in Paragraphs
C.6-10, but Subparagraph 7.e is required;
6. complete geological information on the
productive zone(s) which is proposed to supply the gas reserve subject to this
application, including structural maps, fault trace maps, isopachous maps, and
copies of all logs used in the geologic evaluation;
7. all well history, well test, reservoir and
production data including, but not limited to, the following:
a. basic well information including total
depth, plug-back total depth, perforated interval, net productive sand, sand
top and base or water level, electrical survey (1-inch and 5-inch), porosity
logs, side wall and conventional core analysis, and any other logs or well
surveys (including bottom-hole pressure survey information);
b. complete well test information including
deliverability tests obtained on each well completed or tested in the
productive zone(s);
c. complete
monthly production history and production test reports on all wells which have
produced from the productive zone(s);
d. estimated deliverability from well(s) to
be connected during the period gas is transported hereunder;
e. complete chromatographic gas analysis of
the gas to be transported, the content of sulphur, inert components and water,
heating value, gravity, and temperature;
f. measurement basis for all data
submitted;
8. copies of
all lease information including unitization data, lease expiration dates,
royalty and any special provisions pertaining to leases from which gas is to be
produced and delivered to the transporter's pipelines;
9. history of any past gas deliveries from
well(s) to be connected to the transporter's pipelines, and whether past
deliveries were made into pipelines under the control of the Federal Energy
Regulatory Commission as of the date of application;
10. copies of abandonment orders from any
previous gas deliveries;
11. a
conformed copy of the gas sales contract(s) involving the gas to be transported
and a detailed statement concerning the end use of the gas. If the gas proposed
for transportation:
a. is to be delivered
from applicant's pipeline:
i. the applicant
shall provide the sources of all gas in the said pipeline and all dispositions
therefrom unless applicant is a certified intrastate natural gas transporter or
has been authorized by the commissioner to construct and operate facilities for
the transportation of natural gas in the state of Louisiana;
b. is to be delivered from a third
party's pipeline:
i. the applicant shall
provide the sources of all gas in the said pipeline and all dispositions
therefrom unless the third party is a certified intrastate natural gas
transporter or has been authorized by the commissioner to construct and operate
facilities for the transportation of natural gas in the state of
Louisiana;
ii. the applicant shall
provide a conformed copy of all gas sales and transportation contracts which in
any way could affect the jurisdictional status of any of the transporter's
facilities;
12. schematic flow diagram of the producing
facilities to be used by the applicant for connecting onto the transporter's
pipelines. The schematic should include all wellhead equipment, lines, valves,
separating and scrubbing equipment, all safety and shutdown controls, all
liquid and gas metering equipment complete with capacity and pressure
specifications for all above mentioned equipment;
13. map showing location of all facilities to
be used in the installation along with:
a.
proposed point(s) of entry onto the transporter's pipelines;
b. proposed point(s) of discharge of the gas
from the transporter's pipelines;
c. location of any other interconnects on the
applicant's intrastate system with other pipeline systems;
14. maximum pressure at which applicant can
deliver gas at proposed inlet, and maximum pressure required by applicant at
proposed outlet point(s) of transporter's pipelines, and maximum and minimum
daily volumes of gas to be transported;
15. schematic flow diagram showing all
facilities to be installed at the outlet point(s) indicating all necessary
control, metering and emergency shutdown devices.
D. The applicant shall furnish all the
foregoing information pertaining to the application for excess capacity to the
proposed transporter. Where any of this information is on file with the
commissioner, the applicant shall so state, and not be required to submit same
with its application.
E. As a
prerequisite to filing an application, it is required that the applicant
provide written evidence to the commissioner that the applicant has explored in
good faith with the proposed transporter the feasibility of utilizing the
transporter's pipelines.
F. Upon
receipt of the application referenced in Subsection C hereinabove, the
commissioner shall notice and hear the matter in accordance with the
commissioner's applicable rules of procedure. In determining whether or not
excess capacity exists in the specific segment(s) of the transporter's
pipelines in which the applicant's gas is to physically flow, the commissioner
shall take into consideration the following matters:
1. the specific intrastate pipeline system(s)
in which the gas is proposed to be transported, and the point(s) that the gas
is to enter the transporter's pipelines and is to be discharged
therefrom;
2. the period of time
that said gas is to be transported;
3. whether or not the quality specifications
of the gas to be transported, including the content of sulphur, inert
components, water, ethane and heavier hydrocarbons, heating value, gravity and
temperature meet or exceed the highest quality specifications of the gas then
being transported in the transporter's pipelines;
4. the volume of gas required for the
transporter's own use;
5. the
existing character, pressure, gas flows, condition and all operating data
relative to transporter's pipelines and whether any of the involved pipeline(s)
now, or has ever been engaged in the transportation of interstate
gas;
6. pressure required by the
transporter to receive the gas and the pressure(s) at which the gas would have
to be redelivered for the applicant or for the account of the
applicant;
7. pressure limitations
and all other limitations of the transporter's pipelines determined in
accordance with all applicable state, federal and local laws and agency rules,
regulations and orders including but not limited to such matters as population
density along the transporter's pipelines and good engineering procedures,
practices and calculations;
8. any
and all matters applicable to or in any way connected with the applicant's gas,
well(s) from which the gas is derived, facilities involved with the foregoing,
or otherwise which could possibly subject the proposed transporter's pipelines,
facilities or gas, to control by or within the jurisdiction of the Federal
Energy Regulatory Commission, or any federal regulatory body having similar
jurisdiction;
9. any requirement
which would cause the transporter to alter or modify any of its existing
pipeline facilities or operating pressures, gas flows, or procedures in such a
way as to result in the abridgment, violation or abrogation of any of its
existing contract obligations whatsoever whether such agreements or obligations
are due to gas purchases, gas sales or gas transportation, and whether serviced
by the involved or another segment(s) of the transporter's pipeline;
10. any requirement which would cause the
transporter to alter or modify any involved segment of its pipeline(s), or
facilities either by way of installing, operating or maintaining additional
pipelines or compression facilities, looping of existing pipelines, or
otherwise, so as to create or increase pipeline capacity;
11. all contractual obligations by a
transporter existing as of 30 days after the date of application or date of
hearing, whichever is sooner, requiring the utilization of pipeline capacity,
including but not limited to the following:
a. the maximum existing contract purchase
obligations of the transporter under contracts for the purchase of gas
supplies, subject to change based on actual maximum deliverability under the
gas purchase contracts;
b. the
maximum existing contract delivery obligations of the transporter pursuant to
its contracts for the sale of gas, which obligation shall always mean the
transporter's maximum contractual delivery obligation, reduced solely by an
amount equal to the physical inability of each purchaser of the transporter to
receive its maximum contract quantity;
c. the maximum existing contract obligations
of a transporter to receive and redeliver gas or equivalent gas under gas
transportation or gas exchange contracts, subject to the provisions of
Subparagraph b immediately above;
d. the maximum contract delivery obligations
of transporter under any and all outstanding bonafide offers by the transporter
to third parties which would require the utilization of any of transporter's
pipelines, and affect transporter's pipeline capacity, which offer(s) is
outstanding as of 30 days after the date of application or date of hearing,
whichever is sooner;
e. the maximum
existing contract purchase and delivery obligations of the transporter under
all contracts including but not limited to gas purchase, sales, and
transportation agreements. In determining the maximum contract purchase and
delivery obligations, the greater of the sums of transporter's maximum purchase
or delivery obligations will control, subject only to the provisions of
Subparagraphs a and b above;
12. any adverse effect utilization of
capacity in the segment(s) specifically involved would have on the
transporter's ability to operate its pipeline system and meet its existing
contractual obligations.
G. Where it is found that excess capacity
exists within a pipeline on a part-time or temporary basis and the commissioner
accordingly orders the transportation of gas during the periods when such
excess capacity may be available, it shall be the responsibility of the owner
of the gas being transported in the available excess capacity, and its buyer or
the recipient of such gas, to adjust production and purchase or utilization of
said gas so as not to impair the transporter's ability to render adequate
service to its customers.
H. Prior
to the issuance of any order hereunder, the applicant shall prove to the
commissioner's satisfaction that the gas proposed to be carried in the excess
capacity of the transporter's pipelines and the involved and related facilities
of all parties, have not been, are not now, nor will be subject to control by
or within the jurisdiction of the Federal Energy Regulatory Commission, or any
federal regulatory body having similar jurisdiction, or any successor agency
thereof. Further, any order issued hereunder shall provide that if, pursuant to
such order, any gas carried or to be carried by a transporter or any involved
or related facilities of any party has been, is, or could be subject to the
jurisdiction of the Federal Energy Regulatory Commission, or any successor
agency thereof, said order shall be considered violated thereby, and shall ipso
facto terminate, and end all obligations and duties of the transporter required
thereunder without further action by the transporter or the
commissioner.
I. Every order issued
by the commissioner hereunder shall set the effective term thereof, quality,
quantity, measurement and balancing, and further, after notice and hearing, if
the parties cannot agree, shall fix the rates and charges to be paid by the
owner of the gas to the transporter for the transportation of the gas, all in
accordance with Section 555. E of the Act.
J. The applicant whose gas is being carried
in the transporter's pipelines shall retain title to its gas at all times while
in transit. Every order by the commissioner directing that a transporter carry
the gas of the applicant in the excess capacity of the transporter's pipelines
shall provide that said order shall not be effective unless and until the owner
of the gas has executed in favor of the transporter a written indemnity and
hold harmless agreement, in form as prescribed by the commissioner, with good
and sufficient surety, in an amount as determined by the commissioner,
protecting and indemnifying such transporter from and against any and all
responsibilities, claims, losses, liabilities, damages of any nature or kind
whatsoever, as well as any and all costs associated therewith, and whether for
personal injury, property damage, or otherwise, including those of the
transporter, the owner of the gas, third parties, or gas customers of the
transporter, which may arise by virtue of any compliance by the transporter
with such order, except that the written indemnity and hold harmless agreement
shall not exonerate the transporter for any liability arising from his own
negligence or fault.
K. Every order
issued by the commissioner hereunder shall provide that in the event the
transporter ordered to carry the applicant's gas has a specific need for the
excess capacity of its pipeline(s), or a part thereof, to transport its own gas
or the gas of its subsidiaries or of its parent or of a subsidiary of its
parent, or to satisfy the requirements of its own transportation or sales
contracts for which it then possesses adequate gas supply to fulfill, may in
whole or in part terminate said order by giving written notice. Said notice
shall be served by certified mail by the transporter on the commissioner and
the applicant, shall specify the date on which effective, which shall be not
less than 90 days of the date of said notice. If no opposition thereto is filed
with the commissioner by the applicant, or the commissioner issues no objection
in writing to the transporter and applicant, it shall be conclusively presumed
for all purposes that all requirements of the Act are satisfied, that the
transporter has a bona fide need for the excess capacity as stated in the
notice, and that the public interest and the purposes of the Act would be best
served by termination of the use of the excess capacity of the transporter's
pipelines in whole or in part, and the order shall ipso facto terminate in
accordance with the provisions of the notice. The above 90-day requirement may
be waived by a written agreement filed with the commissioner and approved by
the commissioner, said agreement to be signed by the interested parties or an
authorized agent of the parties and verified under oath.
1. Either upon the filing of opposition by
any party affected by the proposed termination, or upon his own initiative
without opposition, the commissioner shall investigate the purported need of
the transporter to so utilize its excess capacity and to disapprove the
transporter's termination of the contract if, in fact, the transporter does not
have a bonafide need for the excess capacity; or if, in the opinion of the
commissioner, the public interest and the purposes of the Act would best be
served by continuation of the transportation of the gas of the other person
user. Any such opposition made by parties affected or by the commissioner shall
be made within 30 days from the date of receipt by the commissioner of notice
of termination from the transporter and such opposition shall be in writing and
served by certified mail on the transporter and the commissioner. The
commissioner may call a public hearing in order to obtain additional
information required to approve or disapprove the proposed termination. Notice
of any such opposition shall suspend the proposed termination of use of
transporter's excess capacity until such time as the commissioner issues an
order approving or disapproving same.
L. Every order issued by the commissioner
hereunder shall provide that in the event of any emergency which could cause
danger to person or property, a transporter may without any order or permission
of anyone, including the commissioner, and without liability to any person,
including the owner of gas being transported in excess capacity of the
transporter's pipelines, terminate in whole or in part the transportation of
said gas during the period of the emergency. The transporter as soon as
practicable must notify the owner of said gas and the commissioner, of said
emergency, the reason therefore, and the expected duration thereof. Upon the
termination of the emergency, the transporter shall notify the commissioner and
the owner of the gas, and shall forthwith comply with applicable order(s) of
the commissioner.
M. If either the
transporter or applicant is rendered unable, wholly or in part, by force
majeure to carry out its obligations, on such party's giving notice and
reasonably full particulars of such force majeure, in writing or by telegraph,
to the other party within a reasonable time after the occurrence of the cause
relied on, then the obligations of the party giving such notice, so far as they
are affected by such force majeure, shall be suspended during the continuance
of any inability so caused.
N. If
for any reason conditions occur during the term of the applicable order which
would render continued compliance with the order impracticable, dangerous to
person or property, or illegal, the transporter may apply immediately to the
commissioner for relief from all or a portion of the requirements of the
order.
O. Every order issued by the
commissioner shall identify the source(s) of gas approved for transportation in
the transporter's pipelines and the gas shall be limited to the sources so
identified.
P. Every order issued
by the commissioner shall provide for the filing of periodic reports including
but not limited to reports necessary to determine the quantity, quality and
balancing of gas being transported in the excess capacity of transporter's
pipelines.
Q. In the event the
applicant is unable to demonstrate to the satisfaction of the commissioner that
it has the necessary financial standing so as not to jeopardize the financial
position of the transporter, then the applicant will be given an opportunity to
provide and file a performance bond with the commissioner in favor of the
transporter:
1. the amount of the bond shall
in no event be less than the amount sufficient to cover the greater of the sums
determined from Subparagraphs a and b or c and d below:
a. an amount determined as the product of:
i. applicant's estimated peak day
volume;
ii. 60 days; and
iii. estimated rate and charges for the
transportation service; plus
b. an estimated amount to reimburse the
proposed transporter for the cost involved in establishing input and output
points (delivery points) and related facilities for receiving and delivering
gas as proposed by the applicant;
c. an amount determined as the product of:
i. the excess capacity (expressed as a daily
volume) for which applicant is to pay transporter whether used or
not;
ii. 60 days; and
iii. the estimated rates and charges for the
transportation service; plus
d. an estimated amount to reimburse the
proposed transporter for the cost involved in establishing input and output
points (delivery points) and related facilities for receiving and delivering
gas as proposed by the applicant.
2. The estimated rates and charges and
estimated costs involved in establishing delivery points and related facilities
shall be the applicant's best estimate at the time of application, but the
actual amount of surety and bonding capability of the applicant shall be
subject to revision by the commissioner at such time as actual rates and
charges and volume of gas to be transported, if any, have been determined by
the commissioner or have been agreed upon as between applicant and transporter
or transporters.
R.
Every order issued by the commissioner shall provide that the excess capacity
obtained by the applicant shall not be assigned in whole or in part unless
agreed to in writing by the transporter and approved by the
commissioner.
S. The following
general rules will affect all proceedings initiated under Subsections A-S of
this regulation.
1. Except as provided
herein, by law, or by the Act, all applications, reports, approvals, orders and
notices to interested parties, the method of serving same, and all public
hearings conducted under the Act shall be in accordance with the rules of
procedure of the commissioner, this regulation, applicable law, and the
Act.
2. This regulation set out
herein applies only to the provisions of the Act (Chapter 7, Title
30).
3. Unless prohibited by
specific provisions of the Act or by law, the commissioner may waive any or all
of the requirements of the foregoing regulation and grant additional time to
comply with any provision of the Act on written request, and upon reasonable
cause shown if he finds that the application and enforcement thereof will make
undue hardship on the person affected, or will seriously impede the efficiency
of the commissioner's administration of the Act and that the application or
enforcement thereof is not necessary to the accomplishment of the purposes of
the Act.
4. This regulation, in the
absence of an emergency, may not be amended, or new regulation promulgated
without notice and opportunity for public hearing, as provided for in Title 30,
Chapter 1, Section 6 of the Louisiana Revised Statutes of 1950, as
amended.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
30:501-599, 601-606.
