[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: 18CFR281.206]

[Page 724-725]
 
           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. 281.206  Priority 1 reclassification.

    (a) Definitions. For purposes of this section ``high-priority 
entitlements'' means, with respect to a particular interstate pipeline.
    (1) In the case of a direct sale customer, the volume of natural gas 
such direct sale customer is entitled to receive for high-priority uses 
(as defined in Sec. 281.203) under the currently effective curtailment 
plan of the interstate pipeline;
    (2) In the case of a local distribution company, the volume of 
natural gas which such local distribution company is entitled to receive 
on account of the high-priority uses (as defined in Sec. 281.203) of 
its high-priority user customers under the currently effective 
curtailment plan of the interstate pipeline;
    (3) In the case of an interstate pipeline purchaser the volume of 
natural gas such interstate pipeline purchaser is entitled to receive 
from an interstate pipeline supplier for the high-priority entitlements 
of its direct sale customers, local distribution company customers and 
interstate pipeline customers.

[[Page 725]]

    (b) Direct sale customer and local distribution company customers. 
(1)(i) Subject to paragraph (b)(2) of this section, and Sec. 281.211 
each direct sale customer may request each of its direct interstate 
pipeline suppliers to reclassify its high-priority entitlements in its 
currently effective curtailment plan as priority 1 entitlements.
    (ii) Subject to paragraph (b)(2) of this section, and Sec. 281.211 
each local distribution company must request each of its direct 
interstate pipeline suppliers to reclassify its high priority 
entitlements in its currently effective curtailment plan as priority 1 
entitlements.
    (2) The direct sale customer or local distribution company customer 
shall designate the entitlements in each priority of service category in 
the currently effective curtailment plan for which priority 1 
reclassification is requested. It shall request that those entitlements 
for which priority 1 reclassification is requested be excluded from the 
category of service in which they are included in the currently 
effective plan.
    (3) Subject to Sec. 281.210, the interstate pipeline shall 
reclassify all such high-priority entitlements as priority 1 
entitlements and shall reduce by an equal amount the entitlements in 
such other priority of service categories as designated by the direct 
sale customer or local distribution company customer, (in accordance 
with paragraph (b)(2) of this section).
    (c) Interstate pipeline. (1) Subject to paragraph (b)(2) of this 
section, and Sec. 281.211 an interstate pipeline purchaser may request 
each of its direct interstate pipeline suppliers to reclassify its high-
priority entitlements in its currently effective curtailment plan (equal 
to the attributed priority 1 entitlements calculated in accordance with 
Sec. 281.209) as priority 1 entitlements in the currently effective 
curtailment plan of the interstate pipeline supplier.
    (2) The interstate pipeline purchaser shall designate the 
entitlements in each priority of service category in the currently 
effective curtailment plan for which priority 1 reclassification is 
requested. It shall request that those entitlements for which priority 1 
classification is requested be excluded from the category of service in 
which they are included in the currently effective plan.
    (3) Subject to Sec. 281.210, the interstate pipeline supplier shall 
reclassify all such high-priority entitlements as priority 1 
entitlements and shall reduce the high-priority entitlements in other 
priority of service categories as designated by the interstate pipeline 
customer, (in accordance with paragraph (c)(2) of this section).

[44 FR 26862, May 8, 1979]