#### § 157.208 Construction, acquisition, operation, replacement, and miscellaneous rearrangement of facilities.

(a) *Automatic authorization.* If the project cost does not exceed the cost limitations set forth in column 1 of table 1 to [paragraph (d)](/on/2024-07-29/title-18/section-157.208#p-157.208(d)) of this section, or if the project is required to restore service in an emergency, the certificate holder is authorized to make miscellaneous rearrangements of any facility, or acquire, construct, replace, or operate any eligible facility. The certificate holder shall not segment projects in order to meet the cost limitations set forth in column 1 of table 1 to paragraph (d).

(b) *Prior notice.* If the project cost is greater than the amount specified in column 1 of table 1 to [paragraph (d)](/on/2024-07-29/title-18/section-157.208#p-157.208(d)) of this section, but less than the amount specified in column 2 of table 1 to paragraph (d), the certificate holder is authorized to make miscellaneous rearrangements of any facility, or acquire, construct, replace, or operate any eligible facility. The certificate holder shall not segment projects in order to meet the cost limitations set forth in column 2 of table 1 to paragraph (d).

(c) *Contents of request.* In addition to the requirements of [§ 157.205(b)](/on/2024-07-29/title-18/section-157.205#p-157.205(b)), requests filed for activities described under [paragraph (b)](/on/2024-07-29/title-18/section-157.208#p-157.208(b)) of this section shall contain:

(1) A description of the purpose of the proposed facilities including their relationship to other existing or planned facilities;

(2) A detailed description of the proposed facilities specifying length, diameter, wall thickness and maximum operating pressure for pipeline; and for compressors, the size, type, and number of compressor units, horsepower required, horsepower existing and proposed, volume of fuel gas, suction and discharge pressure and compression ratio;

(3) A USGS 71⁄2 minute series (scale 1:24000) topographic map (or map of equivalent or greater detail, as appropriate) showing the location of the proposed facilities, and indicating the location of any sensitive environmental areas within one-quarter mile of project-related construction activities;

(4) A map showing the relationship of the proposed facilities to the applicant's existing facilities;

(5) A flow diagram or comparative study showing daily design capacity, daily maximum capacity and operating pressures with and without the proposed facilities for that portion of the certificate holder's system affected by the proposal;

(6) The estimated cost and method of financing the proposed facilities;

(7) A statement explaining how the public convenience and necessity requires the approval of the project;

(8) For acquisitions of facilities:

(i) A statement referencing the date of issuance, docket number and title of the proceeding for any certificate issued by the Commission authorizing the facilities proposed to be acquired; and

(ii) The amounts recorded in the accounts of the vendor (seller or lessor) that apply to the facilities proposed to be acquired and the accumulated provisions for depreciation, depletion, and amortization;

(9) A concise analysis discussing the relevant issues outlined in [§ 380.12 of this chapter](/on/2024-07-29/title-18/section-380.12). The analysis must identify the existing environmental conditions and the expected significant impacts that the proposed action, including proposed mitigation measures, will cause to the quality of the human environment, including impact expected to occur to sensitive environmental areas. When compressor facilities are proposed, the analysis must also describe how the proposed action will be made to comply with applicable State Implementation Plans developed under the Clean Air Act. The analysis must also include a description of the contacts made, reports produced, and results of consultations which took place to ensure compliance with the Endangered Species Act, National Historic Preservation Act and the Coastal Zone Management Act. Include a copy of the agreements received for compliance with the Endangered Species Act, National Historic Preservation Act, and Coastal Zone Management Act, or if no written concurrence is issued, a description of how the agency relayed its opinion to the company. Describe how drilling for wells or horizontal direction drilling would be designed to meet the goal of limiting the perceived noise at NSAs to an Ldn of 55 dBA or what mitigation would be offered to landowners.

(10) A commitment to having the Environmental Inspector's report filed every week.

(d) *Limits and inflation adjustment.* The limits specified in table 1 to this [paragraph (d)](/on/2024-07-29/title-18/section-157.208#p-157.208(d)) and table 1 to [§ 157.215(a)(5)](/on/2024-07-29/title-18/section-157.215#p-157.215(a)(5)) shall be adjusted each calendar year to reflect the “GDP implicit price deflator” published by the Department of Commerce for the previous calendar year. The Director of the Office of Energy Projects is authorized to compute and publish limits for future calendar years as a part of table 1 to this [paragraph (d)](/on/2024-07-29/title-18/section-157.208#p-157.208(d)) and table 1 to [§ 157.215(a)(5)](/on/2024-07-29/title-18/section-157.215#p-157.215(a)(5)), pursuant to [§ 375.308(x)(1) of this chapter](/on/2024-07-29/title-18/section-375.308#p-375.308(x)(1)).

Table 1 to Paragraph (d)

| Year | Limit | |
| --- | --- | --- |
| Auto. proj. cost limit (col. 1) | Prior notice proj. cost limit (col. 2) |
| 1982 | $4,200,000 | $12,000,000 |
| 1983 | 4,500,000 | 12,800,000 |
| 1984 | 4,700,000 | 13,300,000 |
| 1985 | 4,900,000 | 13,800,000 |
| 1986 | 5,100,000 | 14,300,000 |
| 1987 | 5,200,000 | 14,700,000 |
| 1988 | 5,400,000 | 15,100,000 |
| 1989 | 5,600,000 | 15,600,000 |
| 1990 | 5,800,000 | 16,000,000 |
| 1991 | 6,000,000 | 16,700,000 |
| 1992 | 6,200,000 | 17,300,000 |
| 1993 | 6,400,000 | 17,700,000 |
| 1994 | 6,600,000 | 18,100,000 |
| 1995 | 6,700,000 | 18,400,000 |
| 1996 | 6,900,000 | 18,800,000 |
| 1997 | 7,000,000 | 19,200,000 |
| 1998 | 7,100,000 | 19,600,000 |
| 1999 | 7,200,000 | 19,800,000 |
| 2000 | 7,300,000 | 20,200,000 |
| 2001 | 7,400,000 | 20,600,000 |
| 2002 | 7,500,000 | 21,000,000 |
| 2003 | 7,600,000 | 21,200,000 |
| 2004 | 7,800,000 | 21,600,000 |
| 2005 | 8,000,000 | 22,000,000 |
| 2006 | 9,600,000 | 27,400,000 |
| 2007 | 9,900,000 | 28,200,000 |
| 2008 | 10,200,000 | 29,000,000 |
| 2009 | 10,400,000 | 29,600,000 |
| 2010 | 10,500,000 | 29,900,000 |
| 2011 | 10,600,000 | 30,200,000 |
| 2012 | 10,800,000 | 30,800,000 |
| 2013 | 11,000,000 | 31,400,000 |
| 2014 | 11,200,000 | 31,900,000 |
| 2015 | 11,400,000 | 32,400,000 |
| 2016 | 11,600,000 | 32,800,000 |
| 2017 | 11,800,000 | 33,200,000 |
| 2018 | 12,000,000 | 33,800,000 |
| 2019 | 12,300,000 | 34,600,000 |
| 2020 | 12,500,000 | 35,200,000 |
| 2021 | 12,600,000 | 35,600,000 |
| 2022 | 13,100,000 | 37,100,000 |
| 2023 | 14,000,000 | 39,700,000 |
| 2024 | 14,500,000 | 41,100,000 |

(e) *Reporting requirements.* For each facility completed during the calendar year pursuant to [paragraph (a)](/on/2024-07-29/title-18/section-157.208#p-157.208(a)) of this section and [§ 157.213(a)](/on/2024-07-29/title-18/section-157.213#p-157.213(a)), the certificate holder shall file in the manner prescribed in [§§ 157.6(a)](/on/2024-07-29/title-18/section-157.6#p-157.6(a)) and [385.2011 of this chapter](/on/2024-07-29/title-18/section-385.2011) as part of the required annual report under [§ 157.207(a)](/on/2024-07-29/title-18/section-157.207#p-157.207(a)) the information described in paragraphs (e)(1)-(5) of this section. For each facility completed during the calendar year pursuant to [paragraph (b)](/on/2024-07-29/title-18/section-157.208#p-157.208(b)) of this section, and [§§ 157.210](/on/2024-07-29/title-18/section-157.210), [157.212](/on/2024-07-29/title-18/section-157.212), and [157.213(b)](/on/2024-07-29/title-18/section-157.213#p-157.213(b)), the certificate holder shall file in the manner prescribed above only the information described in [paragraph (e)(3)](/on/2024-07-29/title-18/section-157.208#p-157.208(e)(3)) of this section.

(1) A description of the facilities installed pursuant to this section, including a description of the length and size of pipelines, compressor horsepower, metering facilities, taps, valves, and any other facilities constructed;

(2) The specific purpose, location, and beginning and completion date of construction of the facilities installed, the date service commenced, and, if applicable, a statement indicating the extent to which the facilities were jointly constructed;

(3) The actual installed cost of each facility item listed pursuant to paragraph (e)(1), separately stating the cost of materials and labor as well as other costs allocable to the facilities;

(4)

(i) A description of the contacts made, reports produced, and results of consultations which took place to ensure compliance with the Endangered Species Act, the National Historic Preservation Act and the Coastal Zone Management Act;

(ii) Documentation, including images, that restoration of work areas is progressing appropriately;

(iii) A discussion of problems or unusual construction issues, including those identified by affected landowners, and corrective actions taken or planned; and

(iv) For new or modified compression, a noise survey verifying compliance with [§ 157.206(b)(5)](/on/2024-07-29/title-18/section-157.206#p-157.206(b)(5)).

(5) For acquisitions of facilities:

(i) A statement referencing the date of issuance, docket number and title of the proceeding for any certificate issued by the Commission authorizing the facilities acquired; and

(ii) The amounts recorded in the accounts of the vendor (seller or lessor) that apply to the facilities acquired and the accumulated provisions for depreciation, depletion, and amortization.

(f) *Special conditions.*

(1) For purposes of comparing the project cost of leased facilities with the per-project cost limitations in table 1 to [paragraph (d)](/on/2024-07-29/title-18/section-157.208#p-157.208(d)) of this section, the project cost of leased facilities shall be the annual lease charge multiplied by the number of years of the lease.

(2) In the interest of safety and reliability of service, facilities authorized by the certificate shall not be operated at pressures exceeding the maximum operating pressure set forth in the request. In the event that the certificate holder thereafter wishes to change the maximum operating pressure of supply or delivery lateral facilities constructed under section 7(c) of the Natural Gas Act or facilities constructed under this section, it shall file an appropriate request pursuant to the procedures set forth in [§ 157.205(b)](/on/2024-07-29/title-18/section-157.205#p-157.205(b)). Such request shall include the reasons for the proposed change. Nothing contained herein authorizes the certificate holder to operate any facility at a pressure above the maximum prescribed by State law, if such law requires a lower pressure than authorized hereby.

(g) If the actual cost of the project exceeds the per-project cost authorized under a blanket certificate in table 1 to [paragraph (d)](/on/2024-07-29/title-18/section-157.208#p-157.208(d)) of this section, the certificate holder shall apply to the Director of the Office of Energy Projects for a waiver of those project cost limits.

[Order 234, [47 FR 24266](https://www.federalregister.gov/citation/47-FR-24266), June 4, 1982]

###### Editorial Note

#### Editorial Note:

For Federal Register citations affecting [§ 157.208](/on/2024-07-29/title-18/section-157.208), see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at *[www.govinfo.gov](http://www.govinfo.gov).*