[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: 18CFR284.102]

[Page 743-744]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 284_CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE 
NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES--Table of Contents
 
        Subpart B_Certain Transportation by Interstate Pipelines
 
Sec. 284.102  Transportation by interstate pipelines.

    (a) Subject to paragraphs (d) and (e) of this section, other 
provisions of this subpart, and the conditions of subpart A of this 
part, any interstate pipeline is authorized without prior Commission 
approval, to transport natural gas on behalf of:
    (1) Any intrastate pipeline; or
    (2) Any local distribution company.
    (b) Any rates charged for transportation under this subpart may not 
exceed the just and reasonable rates established under subpart A of this 
part.
    (c) An interstate pipeline that engages in transportation 
arrangements under this subpart must file reports in accordance with 
Sec. 284.13 and Sec. 284.106 of this chapter.
    (d) Transportation of natural gas is not on behalf of an intrastate 
pipeline or local distribution company or authorized under this section 
unless:
    (1) The intrastate pipeline or local distribution company has 
physical custody of and transports the natural gas at some point; or
    (2) The intrastate pipeline or local distribution company holds 
title to the natural gas at some point, which may occur prior to, 
during, or after the time that the gas is being transported by the 
interstate pipeline, for a purpose related to its status and functions 
as an intrastate pipeline or its status and functions as a local 
distribution company; or
    (3) The gas is delivered at some point to a customer that either is 
located in

[[Page 744]]

a local distribution company's service area or is physically able to 
receive direct deliveries of gas from an intrastate pipeline, and that 
local distribution company or intrastate pipeline certifies that it is 
on its behalf that the interstate pipeline is providing transportation 
service.
    (e) An interstate pipeline must obtain from its shippers 
certifications including sufficient information to verify that their 
services qualify under this section. Prior to commencing transportation 
service described in paragraph (d)(3) of this section, an interstate 
pipeline must receive the certification required from a local 
distribution company or an intrastate pipeline pursuant to paragraph 
(d)(3) of this section.

[Order 436, 50 FR 42495, Oct. 18, 1985, as amended by Order 526, 55 FR 
33011, Aug. 13, 1990; Order 537, 56 FR 50245, Oct. 4, 1991; Order 581, 
60 FR 53072, Oct. 11, 1995; Order 637, 65 FR 10222, Feb. 25, 2000]