[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: 18CFR281.208]

[Page 726-727]
 
           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. 281.208  Calculation of essential agricultural requirements and 
attributable priority 2 entitlements.

    (a) Scope. This section sets forth the method by which:
    (1) An essential agricultural user calculates total essential 
agricultural requirements, direct essential agricultural requirements, 
and indirect essential agricultural requirements;
    (2) A local distribution company calculates attributable indirect 
essential agricultural requirements for its essential agricultural user 
customers; and
    (3) An interstate pipeline purchaser calculates it attributable 
priority 2 entitlements.
    (b) Calculation by an essential agricultural user--(1) Total 
essential agricultural requirements--(i) General Rule. (A) The essential 
agricultural requirements of an essential agricultural user are those 
volumes (expressed in daily, monthly, seasonal or other appropriate 
periodic volumes) designated by the Secretary of Agriculture and 
calculated in accordance with 7 CFR 2900.4; less
    (B) Alternative fuel volumes (determined under Sec. 281.304).
    (ii) Definitions. Current requirements as used in 7 CFR part 2900 
means the lesser of
    (A) The energy consumption from the most recent 12 month period for 
which actual data is available, with necessary adjustments; or
    (B) The maximum volume of natural gas for which the essential 
agricultural user has installed capability to use for essential 
agricultural uses.
    (2) Attribution of total essential agricultural requirement and 
indirect essential agricultural requirements. (i) The essential 
agricultural user shall attribute its total essential agricultural 
requirements among all its sources of supply of natural gas in 
accordance with Sec. 281.209.
    (ii) The direct essential agricultural requirement with respect to a 
particular interstate pipeline supplier is that part of the total 
essential agricultural requirements attributed under

[[Page 727]]

Sec. 281.209 to the direct interstate pipeline supplier. The indirect 
essential agricultural requirement with respect to a particular local 
distribution company supplier is that part of the total essential 
agricultural requirements attributed under Sec. 281.209 to a direct 
local distribution company supplier.
    (c) Calculation by local distribution companies. (1) A local 
distribution company shall attribute under Sec. 281.209 the indirect 
essential agricultural requirements of each of its essential 
agricultural user customers (calculated under paragraph (b)(2) of this 
section) among all the interstate pipelines which are direct suppliers 
of the local distribution company.
    (2) That part of the indirect essential agricultural requirements 
which the local distribution company attributes to a particular 
interstate pipeline supplier is the attributed indirect essential 
agricultural requirements attributed to that interstate pipeline.
    (d) Interstate pipelines. (1) An interstate pipeline purchaser may 
attribute under Sec. 281.209 the priority 2 entitlements it includes in 
its index of entitlements among its direct interstate pipeline 
suppliers.
    (2) The attributable priority 2 entitlements attributed to a 
particular interstate pipeline supplier is that part of the priority 2 
entitlements of the interstate pipeline purchaser which it attributes to 
a particular interstate pipeline supplier.

[44 FR 26862, May 8, 1979, as amended at 44 FR 62490, Oct. 31, 1979]