[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: 18CFR281.205]

[Page 724]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 281_NATURAL GAS CURTAILMENT UNDER THE NATURAL GAS POLICY ACT OF 
1978--Table of Contents
 
                  Subpart B_Permanent Curtailment Rule
 
Sec. 281.205  General rules.

    (a) Priority of service categories--(1) Priority 1. Each interstate 
pipeline shall establish a new high-priority use category of service 
designated priority one (1) which shall include all the high-priority 
entitlements calculated in accordance with Sec. 281.206 and those 
storage injection volumes calculated in accordance with paragraph (c)(2) 
of this section.
    (2) Priority 2. Each interstate pipeline shall establish a new 
priority of service category designated priority two (2) which shall 
include all the essential agricultural use requirements calculated in 
accordance with Sec. 281.207 and those storage injection volumes 
calculated in accordance with paragraph (c)(2) of this section.
    (3) Other priority of service categories. Each interstate pipeline 
may retain the priority of service categories in its currently effective 
tariff, but such categories shall be placed at priorities below the new 
priorities 1 and 2. Each interstate pipeline shall reduce the 
entitlements in all other existing categories of service to the extent 
such entitlements have been placed into the new priority of service 
categories 1 or 2.
    (b) Method of curtailment. All deliveries to all customers of the 
interstate pipeline for all volumes of natural gas not included in 
priorities 1 and 2 shall be fully curtailed by the interstate pipeline 
before priorities 1 and 2 entitlements are curtailed. Deliveries for 
priority 2 entitlements shall be fully curtailed by the interstate 
pipelines (in accordance with the currently effective curtailment plan) 
before priority 1 entitlements are curtailed by the interstate 
pipelines. Nothing in this paragraph is intended to alter the operation 
of any ``small customer'' or ``small distributor'' exemption or waiver 
(as defined in an interstate pipeline's currently effective curtailment 
plan).
    (c) Storage--(1) General rule. Interstate pipelines shall classify 
customer storage injection volumes in the same manner as that used in 
the currently effective curtailment plan.
    (2) Storage sprinkling. Interstate pipelines which classify customer 
storage injection volumes on the basis of the actual end-use of the 
natural gas shall recalculate storage injection volumes placed in each 
priority of service category based upon the index of entitlements to be 
filed on September 15.
    (3) Other treatment of storage. Except as provided in paragraph 
(c)(2) of this section, no interstate pipeline shall recalculate or 
reclassify any customer storage injection volumes, and no customer 
storage injection volumes shall be included as priority 1 or 2 
entitlements.

[44 FR 26862, May 8, 1979, as amended by Order 29-C, 44 FR 61344, Oct. 
25, 1979; Order 145, 46 FR 27913, May 22, 1981]