[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: 18CFR284.7]

[Page 735-736]
 
           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 A_General Provisions and Conditions
 
Sec. 284.7  Firm transportation service.

    (a) Firm transportation availability. (1) An interstate pipeline 
that provides transportation service under subpart B or G or this part 
must offer such transportation service on a firm basis and separately 
from any sales service.
    (2) An intrastate pipeline that provides transportation service 
under Subpart C may offer such transportation service on a firm basis.
    (3) Service on a firm basis means that the service is not subject to 
a prior claim by another customer or another class of service and 
receives the same priority as any other class of firm service.
    (4) An interstate pipeline that provided a firm sales service on May 
18, 1992, and that offers transportation service on a firm basis under 
subpart B or G of this part, must offer a firm transportation service 
under which firm shippers may receive delivery up to their firm 
entitlements on a daily basis without penalty.
    (b) Non-discriminatory access. (1) An interstate pipeline or 
intrastate pipeline that offers transportation service on a firm basis 
under subpart B, C or G must provide such service without undue 
discrimination, or preference, including undue discrimination or 
preference in the quality of service provided, the duration of service, 
the categories, prices, or volumes of natural gas to be transported, 
customer classification, or undue discrimination or preference of any 
kind.
    (2) An interstate pipeline that offers transportation service on a 
firm basis under subpart B or G of this part must provide each service 
on a basis that is equal in quality for all gas supplies

[[Page 736]]

transported under that service, whether purchased from the pipeline or 
another seller.
    (3) An interstate pipeline that offers transportation service on a 
firm basis under subpart B or G of this part may not include in its 
tariff any provision that inhibits the development of market centers.
    (c) Reasonable operational conditions. Consistent with paragraph (b) 
of this section, a pipeline may impose reasonable operational conditions 
on any service provided under this part. Such conditions must be filed 
by the pipeline as part of its transportation tariff.
    (d) Segmentation. An interstate pipeline that offers transportation 
service under subpart B or G of this part must permit a shipper to make 
use of the firm capacity for which it has contracted by segmenting that 
capacity into separate parts for its own use or for the purpose of 
releasing that capacity to replacement shippers to the extent such 
segmentation is operationally feasible.
    (e) Reservation fee. Where the customer purchases firm service, a 
pipeline may impose a reservation fee or charge on a shipper as a 
condition for providing such service. Except for pipelines subject to 
subpart C of this part, if a reservation fee is charged, it must recover 
all fixed costs attributable to the firm transportation service, unless 
the Commission permits the pipeline to recover some of the fixed costs 
in the volumetric portion of a two-part rate. A reservation fee may not 
recover any variable costs or fixed costs not attributable to the firm 
transportation service. Except as provided in this paragraph, the 
pipeline may not include in a rate for any transportation provided under 
subpart B, C or G of this part any minimum bill or minimum take 
provision, or any other provision that has the effect of guaranteeing 
revenue.
    (f) Limitation. A person providing service under Subpart B, C or G 
of this part is not required to provide any requested transportation 
service for which capacity is not available or that would require the 
construction or acquisition of any new facilities.

[Order 436, 50 FR 42493, Oct. 18, 1985]

    Editorial Note: For Federal Register citations affecting Sec. 
284.8, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.