La. Admin. Code tit. 43 § XI-503

Current through Register Vol. 50, No. 11, November 20, 2024

Section XI-503 - Requirements for Abandonment of All or Any Portion of a Facility, or Any Service Rendered by Means of Such Facility under sections 555.B and 722 of the Act

A. This regulation shall apply to requirements of an intrastate natural gas or coal slurry transporter to abandon all or any portion of a facility, or any service rendered by means of such facility, pursuant to the provisions of §555.B of the Act; provided, however, that this regulation-shall not apply to any coal slurry transporter then being regulated by a federal agency having jurisdiction or to abandonments authorized by §513.C.5 Except as provided in Section 513, application for abandonment shall be filed in accordance with the regulation and §305 However, an application for the abandonment of a sale or transportation contract or related facility under this section shall be submitted to the commissioner at least 30 days, but no more than six months, prior to the contract termination date, or prior to the proposed date of termination of a service or abandonment of a facility in the absence of a contract. The commissioner may for good cause shown grant an exception to said time limitations.

B. Where an abandonment of service or facility is proposed, the interested parties shall be the signatory parties to the contracts affecting said services or facilities and the owners or operators of such facility to be abandoned.

C. The commissioner shall issue his permission and approval for the abandonment of all or any portion of the facilities of an intrastate natural gas or coal slurry transporter subject to the jurisdiction of the commissioner, or any service rendered by means of such facilities, only after the intrastate natural gas or coal slurry transporter shall have demonstrated, to the satisfaction of the commissioner, that the available supply of natural gas, coal, or lignite is depleted to the extent that the continuance of service is unwarranted or that the public interest and energy needs permit such abandonment. However, the commissioner may deny abandonment based upon satisfactory evidence that a user of gas or coal or lignite located in the state, a majority of which users' employees are Louisiana residents, or which user produces goods or services for Louisiana residents, including gas or electric service, is or will be unable to secure adequate supplies of natural gas or coal or lignite to maintain employment, production, or service levels if abandonment is granted. Application for abandonment shall be made to the commissioner in writing, executed under oath by an individual having authority to execute same with a copy to all interested parties and shall include the following information:

1. description and location, if applicable, of the facility, or portion thereof, or the service rendered by such facility, or portion thereof, to be abandoned;

2. if a gas, coal or lignite sale or transportation contract:

a. the exact legal name and status of the seller and purchaser and the name, title and mailing address of the person(s) to whom communications concerning the notice are to be addressed;

b. date of contract;

c. term of contract;

d. quantities of gas, coal or lignite:

i. maximum daily quantity seller is obligated to deliver: thousands of cubic feet per day (MCF/Day), millions of British thermal units per day (MMBTU/Day) or tons per day (TON/Day);

ii. minimum daily quantity purchaser is obligated to receive: MCF/Day, MMBTU/Day or tons per day (TON/Day);

iii. measurement-pressure base;

iv. service-firm or interruptible. Give conditions under which deliveries or receipts can be interrupted or curtailed and minimum level of daily volume during interruption or curtailment;

e. type of service: (industrial sale, sale for resale, transportation or other);

f. point(s) of delivery;

g. delivery pressures-minimum, maximum;

h. price;

3. reasons for abandonment;

4. prospective date of abandonment;

5. where an agreement as to the terms and conditions of abandonment has been reached between the transporter and the person or persons who are parties to a contract relating to the use of facilities or services to be abandoned, the application for abandonment shall be accompanied by a letter of agreement, signed by the parties or an authorized agent of the parties, verified under oath;

6. Forms PL-1(A) for abandonment of service and PL-1(B) for abandonment of facility may be obtained from the Office of Conservation.

D. Applications for pre-granted abandonment of emergency or temporary sales and connections necessitated thereby, including those sales to supply an immediate and necessary demand for gas, coal, or lignite, shall contain the information required under Subsection C above, and may be administratively approved by the commissioner.

E. The commissioner may request such additional information as in his opinion is reasonably necessary in order to properly evaluate the application.

La. Admin. Code tit. 43, § XI-503

Promulgated by the Department of Natural Resources, Office of Conservation, LR 4:79 (March 1978), amended LR 7:82 (April 1981), LR 12:600 (September 1986), Repromulgated LR 49279 (2/1/2023), Amended LR 49903 (5/1/2023).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:501-599, 601-606.