[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR157.18]

[Page 522-524]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
 PART 157_APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY 
 
   Subpart A_Applications for Certificates of Public Convenience and
 
Sec. 157.18  Applications to abandon facilities or service; exhibits.

    Applications for an order authorizing abandonment of facilities or 
service pursuant to section 7(b) of the Natural Gas Act must contain a 
statement providing in detail the reasons for the abandonment and must 
contain the exhibits listed below, unless the applicant includes a 
statement identifying the schedule and rate containing the required 
information and data filed as prescribed in Sec. 385.2011 of this 
chapter. Any application for an abandonment that is not excluded by 
Sec. 380.4(a)(28) or (29), must include an environmental report as 
specified by Sec. 380.3(c)(2). Sections 157.6(a) and 385.2011 of this 
chapter will govern the submission of applications and exhibits required 
to be furnished. Together with each exhibit, applicant must provide a 
full and complete explanation of the data submitted, the manner in which 
it was obtained, and the reasons for the conclusions derived from the 
data. The Secretary may, in addition, require that the testimony of all 
witnesses to be presented by the applicant be filed together with all 
exhibits upon which applicant will base its case-in-chief.
    (a) Exhibit T--Related applications. A statement showing:
    (1) The docket numbers of the prior proceedings in which the 
facilities or services sought to be abandoned were certificated.
    (2) The docket numbers of related applications pending before or 
which have been authorized by the Commission with an explanation of the 
interrelationship of those applications with the instant application.
    (b) Exhibit U--Contracts and other agreements. A conformed copy of 
each contract or other agreement pertaining directly or indirectly to 
the abandonment of facilities or service, including all agreements which 
influenced applicant to seek the abandonment and all agreements which 
are dependent upon the approval of the proposed abandonment.
    (c) Exhibit V--Flow diagram showing daily design capacity and 
reflecting operation of applicant's system after abandonment. A flow 
diagram showing daily design capacity and reflecting operating 
conditions of applicant's system after

[[Page 523]]

abandonment of facilities on that segment of the system affected by the 
abandonment, including the following:
    (1) Diameter, wall thickness, and length of pipe remaining.
    (2) For each remaining compressor station, the size, type and number 
of compressor units, horsepower required, horsepower installed, volume 
of gas to be used as fuel, suction and discharge pressures, and 
compression ratio.
    (3) Pressures and volumes of gas at the main line inlet and outlet 
connections at each compressor station.
    (4) Pressures and volumes of gas at each intake and takeoff point 
and at the beginning and terminus of all remaining facilities.
    (d) Exhibit W--Impact on customers whose service will be terminated. 
A statement indicating the availability of natural gas from other 
sources to applicant's customers whose service will be terminated by the 
abandonment and a statement showing the economic effect of the 
abandonment on applicant's customers. If no other natural gas is 
available, indicate the availability of other fuels to those customers 
and explain why the abandonment of service to each customer is permitted 
by the public convenience and necessity.
    (e) Exhibit X--Effect of the abandonment on existing tariffs. A 
statement showing the effect of the proposed abandonment upon any rate 
schedules or tariffs on file with this Commission, 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. Include a brief statement explaining the basis or methods 
used to derive the accumulated depreciation related to the property to 
be disposed of. 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 and the tax basis of the 
property. 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

[[Page 524]]

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; Order 493, 53 FR 15029, Apr. 27, 1988; Order 603, 
64 FR 26606, May 14, 1999]