121 FERC ¶ 61,295 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Parts 260, 284 and 385 

(Docket No. RM07-10-000; Order No. 704)

Transparency Provisions of Section 23 of the Natural Gas Act 

(Issued December 26, 2007) 

AGENCY: Federal Energy Regulatory Commission. 

ACTION: Final Rule. 

SUMMARY: In the final rule, the Commission promulgates regulations that require 

certain natural gas market participants to report information regarding their reporting of 

transactions to price index publishers and their blanket sales certificate status, and to 

report annually certain information regarding their wholesale, physical natural gas 

transactions for the previous calendar year. Certain market participants engaged in a 

de minimis volume of transactions will not be required to report information regarding 

their transactions for the calendar year. The reported information will make it possible to 

estimate the size of the physical U.S. natural gas market, to assess the use of index 

pricing in that market, and to determine the size of the fixed-priced trading market that 

produces the information. These regulations facilitate price transparency in markets for 

the wholesale sale of physical natural gas in interstate commerce.

EFFECTIVE DATE: This rule will become effective [Insert date 30 days after 

publication in the FEDERAL REGISTER]. 
Docket No. RM07-10-000 - 2 - 

FOR FURTHER INFORMATION CONTACT: 

Stephen J. Harvey (Technical) 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street NE 

Washington, D.C. 20426 

(202)502-6372 

Stephen.Harvey@ferc.gov 

Christopher J. Peterson (Technical) 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street NE 

Washington, D.C. 20426 

(202)502-8933 

Christopher.Peterson@ferc.gov 

Eric Ciccoretti (Legal) 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street NE 

Washington, D.C. 20426 

(202)502-8493 

Eric.Ciccoretti@ferc.gov 

SUPPLEMENTARY INFORMATION:
UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Before Commissioners: Joseph T. Kelliher, Chairman; 

 Suedeen G. Kelly, Marc Spitzer, 

 Philip D. Moeller, and Jon Wellinghoff. 

Transparency Provisions of Section 23 of 

the Natural Gas Act 

 Docket No. RM07-10-000 

ORDER NO. 704 

 FINAL RULE 

(Issued December 26, 2007 

I. Background

1. In this final rule, the Commission promulgates regulations that require certain 

natural gas market participants to report annually certain information regarding their 

wholesale, physical natural gas transactions, their reporting of transactions to price index 

publishers, and their blanket certificate status. This rule arises from a Notice of Proposed 

Rulemaking (NOPR) issued on April 19, 2007, which set forth two proposals, an annual 

reporting requirement proposal and a daily pipeline posting proposal.1

 This rule 

addresses the annual reporting requirement. The Commission addresses the daily 

pipeline posting proposal concurrently in a Notice of Proposed Rulemaking in a separate 

docket, Docket No. RM08-2-000. 

 1

Transparency Provisions of Section 23 of the Natural Gas Act, 72 FR 20791 

(Apr. 26, 2007), FERC, Stats. and Regs. ¶ 32,614 (2007). 
Docket No. RM07-10-000 - 2 - 

2. The Commission largely adopts the annual reporting proposal in the NOPR issued 

in this docket, with a few changes and a few clarifications. The final rule requires that 

any buyer or seller of more than a de minimis volume of natural gas report aggregate 

volumes of relevant transactions in an annual filing using a new form, Commission Form 

No. 552. A market participant buying or selling less than a de minimis volume that 

operates under blanket sales certificate authority pursuant to § 284.402 or § 284.284 of 

the Commission’s regulations must also submit a Form No. 552 for identification and 

certain reporting purposes, but is not required to report aggregate volumes of relevant 

transactions. A market participant that buys or sells less than a de minimis volume but 

that does not operate under blanket sales certificate authority need not submit a Form 

No. 552. Filings of the form will be due on May 1 of each year, starting on May 1, 2009 

for the calendar year 2008. 

3. The significant changes from the proposal in the NOPR fall generally into four 

categories. The first category of changes focuses the reporting requirement solely on 

wholesale buyers and sellers by excluding retail transactions. The second category of 

changes, intended to focus on price formation in the spot markets, narrows the questions 

on new Form No. 552 to obtain information about the amount of daily or monthly fixedpriced trading that are eligible to be reported to price index publishers as compared to the 

amount of trading that uses or refers to price indices. The third category of changes 

expands the number of companies that must state publicly whether or not they report to 
Docket No. RM07-10-000 - 3 - 

index price publishers. The last category involves other clarifications of questions raised 

in comments and changes made to streamline completion of the form. 

4. In promulgating the final rule, the Commission exercises its new transparency 

authority under section 23 of the Natural Gas Act (transparency provisions).2

 Congress 

added the transparency provisions in enacting the Energy Policy Act of 2005 (EPAct 

2005). 3

 The transparency provisions direct the Commission “to facilitate price 

transparency in markets for the sale or transportation of physical natural gas in interstate 

commerce, having due regard for the public interest, the integrity of those markets, and 

the protection of consumers,”4

 and further allow the Commission to “prescribe such rules 

as the Commission determines necessary and appropriate to carry out the purposes of [the 

transparency provisions]” – rules that “shall provide for the dissemination, on a timely 

basis, of information about the availability and prices of natural gas sold at wholesale and 

interstate commerce to the Commission, State commissions, buyers and sellers of 

wholesale natural gas, and the public.”5

 

 2

Section 23 of the Natural Gas Act, 15 U.S.C. 717t-2 (2000 & Supp. V 2005).

3

Energy Policy Act of 2005, Pub. L. No. 109-58, 119 Stat. 594 (2005). 

4

Section 23(a)(1) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(1) (2000 & Supp. V 

2005). 

5

Section 23(a)(2) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(2) (2000 & Supp. V 

2005). 
Docket No. RM07-10-000 - 4 - 

5. The final rule will facilitate transparency of the price formation process in natural 

gas markets by collecting information to understand in broad terms the size of the natural 

gas market and the use of fixed prices and of index prices. Currently, because of the way 

transactions take place in the natural gas industry, there is no way to estimate in even the 

broadest terms the overall size of the natural gas market or its breakdown by types of 

contract provision, including pricing and term (e.g., spot or for delivery farther in the 

future).6

 As noted by the price index developer Platts, the question of what is the total 

size of the traded market has “hung over the gas market for years.”7

 More particularly, 

there is no way to determine important volumetric relationships between (a) the fixedprice, day-ahead or month-ahead transactions that form price indices; and (b) transactions 

that use price indices. Without the most basic information about these volumetric 

relationships, the Commission has been hampered in its oversight and its ability to assess 

the adequacy of price-forming transactions. Market participants are likewise unable to 

evaluate their use of indexed transactions. Typically, market participants rely on indexpriced transactions as a way to reference market prices without taking on the risks of 

 6

In its supplemental comments, Platts provided information regarding its use of 

physical basis transactions in compiling monthly indices. Supplemental Comments of 

Platt’s, Transparency Provisions of the Energy Policy Act, Docket No. AD06-11-000 

(filed Feb. 23, 2007). 

7

Comments of Platts at 6, Transparency Provisions of the Energy Policy Act, 

Docket No. AD06-11-000 (filed Nov. 1, 2006). 
Docket No. RM07-10-000 - 5 - 

active trading. These market participants rely on index prices, often whether or not those 

prices are derived from a robust market of fixed-price transactions. 

6. Price formation in natural gas markets makes no distinction between transactions 

that are jurisdictional to the Commission under the Natural Gas Act, absent new section 

23 of that statute, and those that are not. While the Commission’s traditional jurisdiction 

under sections 4, 5, and 7 of the Natural Gas Act is limited to “natural gas compan[ies],”8

this limitation is not applicable to the Commission’s jurisdiction under the transparency 

provisions.9

 As a consequence, in order to assess the size and structure of U.S. natural 

gas markets, information about wholesale natural gas transactions is required from a 

market participant regardless of whether it is subject to the Commission’s traditional 

jurisdiction. 

7. By obtaining information about natural gas transactions, the final rule would 

further the Commission’s efforts to monitor price formation in the wholesale natural gas 

markets, which support the Commission’s market-oriented policies for the wholesale 

natural gas industries. Those policies in turn require that interested persons have broad 

confidence that reported market prices accurately reflect the interplay of legitimate 

market forces. Without confidence in the basic processes of price formation, market 

 8

See 15 U.S.C. 717b-717i. 

9

Section 23 of the Natural Gas Act, 15 U.S.C. 717t-2 (2000 & Supp. V 2005). 
Docket No. RM07-10-000 - 6 - 

participants cannot have faith in the value of their transactions, the public cannot believe 

that the prices they see are fair, and it is more difficult for the Commission to ensure that 

jurisdictional prices are “just and reasonable.”10

8. The performance of Western electric and natural gas markets early in the decade 

shook confidence in posted market prices for energy. In examining these markets, the 

Commission’s Staff found, inter alia, that some companies submitted false information to 

the publishers of natural gas price indices, so that the resulting reported prices were 

inaccurate and untrustworthy.11 As a result, questions arose about the legitimacy of 

published price indices, remaining even after the immediate crisis passed. Moreover, 

market participants feared that the indices might have become even more unreliable, 

since reporting (which has always been voluntary) declined to historically low levels in 

late 2002. 

9. The Commission recognized concerns about price discovery in electric and natural 

gas markets as early as January 2003, when, prior to passage of EPAct 2005, the 

Commission made use of its existing authority under the Natural Gas Act and the Federal 

 10See sections 4 and 5 of the Natural Gas Act, 15 U.S.C. 717c, 717d; sections 205 

and 206 of the Federal Power Act, 16 U.S.C. 824d, 824e. 

11See “Initial Report on Company-Specific Separate Proceedings and Generic 

Reevaluations; Published Natural Gas Price Data; and Enron Trading Strategies – Fact 

Finding Investigation of Potential Manipulation of Electric and Natural Gas Prices,” 

Docket No. PA02-2-000 (Aug. 2003). 
Docket No. RM07-10-000 - 7 - 

Power Act to help restore confidence in natural gas and electricity price indices. The 

Commission expected that, over time, improved price discovery processes would 

naturally increase confidence in market performance. On July 24, 2003, the Commission 

issued a Policy Statement on Electric and Natural Gas Price Indices (Policy Statement) 

that explained its expectations of natural gas and electricity price index developers and 

the companies that report transaction data to them.12 On November 17, 2003, the 

Commission adopted behavior rules for certain electric market participants in its Order

Amending Market-Based Rate Tariffs and Authorizations relying on section 206 of the 

Federal Power Act to condition market-based rate authorizations,13 and for certain natural 

gas market participants in Amendments to Blanket Sales Certificates, relying on section 7 

of the Natural Gas Act to condition blanket marketing certificates.14 The behavior rules 

 12 104 FERC ¶ 61,121 (2003). Subsequently, in the same proceeding, the 

Commission issued an Order on Clarification of Policy Statement on Natural Gas and 

Electric Price Indices, 105 FERC ¶ 61,282 (2003) (Order on Clarification of Policy 

Statement) and an Order on Further Clarification of Policy Statement on Natural Gas and 

Electric Price Indices, 112 FERC ¶ 61,040 (2005) (Order on Further Clarification of 

Policy Statement). 

13Investigation of Terms and Conditions of Public Utility Market-Based Rate 

Authorizations,105 FERC ¶ 61,218, at P 1 (2003), superseded in part by, Conditions for 

Public Utility Market-Based Rate Authorization Holders, Order No. 674, 71 FR 9695 

(Feb. 27 2006), FERC Stats. and Regs. ¶ 31,208 (2006). 

14 Amendments to Blanket Sales Certificates, Order No. 644, 68 FR 66323 

(Nov. 26, 2003), FERC Stats. and Regs. ¶ 31,153, at P 1 (2003) (citing 15 U.S.C. 717f), 

reh’g denied, 107 FERC ¶ 61,174 (2004).
Docket No. RM07-10-000 - 8 - 

bar false statements and require certain market participants, if they report transaction 

data, to report such data in accordance with the Policy Statement. These participants 

must also notify the Commission whether or not they report prices to price index 

developers in accordance with the Policy Statement.15 On November 19, 2004, the 

Commission issued an order that addressed issues concerning price indices in natural gas 

and electricity markets and adopted specific standards for the use of price indices in 

jurisdictional tariffs.16 

10. In the Policy Statement, among other things, the Commission directed Staff to 

continue to monitor price formation in wholesale markets, including the level of reporting 

to index developers and the amount of adherence to the Policy Statement standards by 

price index developers and by those who provide data to them.17 In adhering to this 

directive, Commission Staff documented improvements in the number of companies that 

reported prices from back offices, that adopted codes of conduct, and that audited their 

 15Certain portions of the behavior rules were rescinded in Amendments to Codes 

of Conduct for Unbundled Sales Service and for Persons Holding Blanket Marketing 

Certificates, Order No. 673, 71 FR 9709 (Feb. 27, 2006), FERC Stats. and Regs. ¶ 31,207 

(2006). The requirements to report transaction data in accordance with the Policy 

Statement and to notify the Commission of reporting status were retained in renumbered 

sections. 18 CFR 284.288(a), 284.403(a). 

16Price Discovery in Natural Gas and Electric Markets, 109 FERC ¶ 61,184, at 

P 73 (2004). 

17Policy Statement at P 43. 
Docket No. RM07-10-000 - 9 - 

price reporting practices.18 These efforts resulted in significant progress in the amount 

and quality of both price reporting and the information provided to market participants by 

price indices.19 Further, in conformance with this directive, Commission Staff recently 

concluded audits of three natural gas market participants with blanket certificate authority 

that were data providers subject to § 284.403 of the Commission’s regulations. 20

11. Congress recognized that the Commission might need expanded authority to 

mandate additional reporting to improve market confidence through greater price 

transparency and included in EPAct 2005 authority for the Commission to obtain 

information on wholesale electric and natural gas prices and availability. Under the 

Federal Power Act21 and the Natural Gas Act,22 the Commission has long borne a 

 18Federal Energy Regulatory Commission, “Report on Natural Gas and Electricity 

Price Indices,” at 2, Docket No. PL03-3-004 (2004). 

19See, e.g., General Accountability Office, “Natural Gas and Electricity Markets: 

Federal Government Actions to Improve Private Price Indices and Stakeholder Reaction” 

(December 2005). 

20The audits found general compliance with the price reporting standards. See

April 5, 2007 letter issued to Anadarko Energy Services Co. in Docket No. PA06-11-000 

by Director, Office of Enforcement and attached Audit of Price Index Reporting 

Compliance; April 5, 2007 letter issued to BG Energy Merchants, LLC in Docket No. 

PA06-12-000 by Director, Office of Enforcement and attached Audit of Price Index 

Reporting Compliance; April 5, 2007 letter issued to Marathon Oil Co. in Docket No. 

PA06-13-000 by Director, Office of Enforcement, and attached Audit of Price Index 

Reporting Compliance. 

2116 U.S.C. 824 et seq.

2215 U.S.C. 717 et seq.
Docket No. RM07-10-000 - 10 - 

responsibility to protect wholesale electric and natural gas consumers. EPAct 2005 

emphasized the Commission’s responsibility for protecting the integrity of the markets 

themselves as a way of protecting consumers in an active market environment. In 

particular, Congress directed the Commission to facilitate price transparency “having due 

regard for the public interest, the integrity of [interstate energy] markets, [and] fair 

competition.”23 In the new transparency provisions of section 23 of the Natural Gas Act, 

Congress provided that the Commission may, but is not obligated to, prescribe rules for 

the collection and dissemination of information regarding the wholesale, interstate 

markets for natural gas, and authorized the Commission to adopt rules to assure the 

timely dissemination of information about the availability and prices of natural gas and 

natural gas transportation in such markets.24

II. Overview of Final Rule

12. In this final rule, the Commission largely adopts the proposal in the NOPR, with a 

few changes and a few clarifications. The final rule requires that any buyer or seller of 

more than a de minimis volume of natural gas report aggregate volumes of relevant 

transactions in an annual filing using a new form, Commission Form No. 552. A market 

 23Section 23(a)(1) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(1) (2000 & Supp. V 

2005); see also section 220 of the Federal Power Act, 16 U.S.C. 824t (2000 & Supp. V 

2005) (identical language). 

24 Section 23(a)(2) & (3) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(2) & (3) 

(2000 & Supp. V 2005). 
Docket No. RM07-10-000 - 11 - 

participant that buys or sells less than a de minimis volume and that operates under 

blanket sales certificate authority under § 284.402 or § 284.284 of the Commission’s 

regulations must also submit a Form No. 552 for identification and certain reporting 

purposes, but is not required to report aggregate volumes of relevant transactions. A 

market participant that buys or sells less than a de minimis volume but that does not 

operate under blanket sales certificate authority need not submit a Form No. 552. Filings 

of the form will be due on May 1 of each year, starting on May 1, 2009 for the calendar 

year 2008. 

13. The significant changes from the proposal in the NOPR fall generally into four 

categories. The first category of changes focuses the reporting requirement solely on 

wholesale buyers and sellers by excluding retail transactions. The second category of 

changes, intended to focus on price formation in the spot markets, narrows the questions 

on new Form No. 552 to obtain information about the amount of daily or monthly fixedprice trading that are eligible to be reported to price index publishers as compared to the 

amount of trading that uses or refers to price indices. The third category of changes 

expands the number of companies that must state publicly whether or not they report to 

index price publishers. The last category involves other clarifications of questions raised 

in comments and changes made to streamline completion of the form. 
Docket No. RM07-10-000 - 12 - 

14. On Form No. 552, certain wholesale natural gas buyers and sellers must identify 

themselves to the Commission and report summary information about their physical 

natural gas transactions for the previous calendar year including: 

a. the total volume of transactions for the previous calendar year; 

b. the volume of transactions that were priced at fixed prices for next-day 

delivery and were reportable to price index publishers; 

c. the volume of transactions priced by reference to next-day gas price 

indices; 

d. the volume of transactions that were priced at fixed prices for next-month 

delivery and were reportable to price index publishers; and, 

e. the volume of transactions priced by reference to next-month gas price 

indices. 

15. As defined in Form No. 552, a transaction is “reportable to price index publishers” 

if it is made at a reportable location where a price index publisher collects information for 

fixed-price transactions with next-day or next-month delivery obligations in order to 

create a price index. As these locations may change over time, Commission Staff will 

post each year a list for the coming year of current “Reportable Locations” for each price 

index publisher on the Commission website at http://www.ferc.gov/docsfiling/eforms.asp#552. This information will allow a market participant to determine 
Docket No. RM07-10-000 - 13 - 

whether a transaction should be classified on Form No. 552 as a reportable transaction, 

i.e., one made at a reportable location. 

16. In addition, on the form, a natural gas seller must state whether it operates under 

blanket certificate authority under § 284.402 of the Commission’s regulations, whether it 

reports transactions to price index publishers, and whether any such reporting complies 

with the standards provided in § 284.403(a). 25 Similarly, an interstate pipeline must state 

whether it operates under blanket certificate authority under § 284.284 of the 

Commission’s regulations, whether it reports transactions to price index publishers and 

whether any such reporting complies with the standards provided in § 284.288(a).26

17. The final rule requires these holders of blanket sales certificates and, also, 

wholesale buyers and sellers of more than a de minimis volume in the reporting year to 

report to the Commission on Form No. 552 whether they report transactions to natural 

 25 In its regulations, the Commission grants automatically blanket certificates of 

convenience and necessity under section 7 of the Natural Gas Act to interstate natural gas 

pipelines “to provide unbundled firm and interruptible sales,” 18 CFR 284.284 (blanket 

certificates for unbundled sales services), and to any person who is not an interstate 

pipeline “to make sales for resale at negotiated rates,” 18 CFR 284.402 (blanket market 

certificate). 

26The Commission recognizes that few if any interstate natural gas pipelines still 

make wholesale sales. Nevertheless, if they were to sell gas at wholesale in interstate 

commerce, they would be subject to the final rule. More relevant, of course, is the fact 

that all of their affiliates making wholesale sales in interstate commerce would be subject 

to the final rule. 
Docket No. RM07-10-000 - 14 - 

gas price index publishers.27 Sellers with blanket sales authority must indicate whether 

such reporting complies with the Commission’s standards for such reporting. Prior to 

this final rule, such sellers were required to notify the Commission only when it changed 

their practice regarding such reporting. The final rule will make notifications of reporting 

status more reliable. 

18. The final rule is designed to permit an annual estimate of (a) the size of the 

physical domestic natural gas market, (b) the use of index pricing in that market, (c) the 

size of the fixed-price trading market that produces price indices from the subset reported 

to index publishers, and (d) the relative size of major traders. Obtaining such estimates 

requires information from all significant buyers and sellers of wholesale natural gas in the 

United States. The final rule creates an annual requirement that buyers and sellers of 

more than a de minimis volume of natural gas report volumes of relevant transactions to 

the Commission. 

19. Although the natural gas transparency provisions authorize the Commission to 

require reporting of detailed transaction-by-transaction information from wholesale 

natural gas buyers and sellers, the Commission will collect a more limited set of 

aggregate information designed to assess the market. 

 27 New 18 CFR 260.401. 
Docket No. RM07-10-000 - 15 - 

III. Notice of Proposed Rulemaking

20. In the NOPR, the Commission proposed that buyers and sellers of more than a 

de minimis volume of natural gas be required to report aggregate numbers and volumes 

of relevant transactions in an annual filing. The Commission proposed a form for this 

reporting, which was attached to the NOPR as “Form [X].” 

21. Under the proposed reporting requirement, certain natural gas buyers and sellers 

would have had to identify themselves to the Commission and report summary 

information about physical natural gas transactions for the previous calendar year 

including: (a) their total amount of physical natural gas transactions by number and 

volume; (b) the breakdown of their transactions by purchases and sales; (c) the number 

and volume breakdown of their purchases and sales by whether they were conducted in 

monthly or daily spot markets; and (d) the number and volume breakdown of their 

purchases and sales by type of pricing, in particular whether that pricing was fixed or 

indexed. 

22. In addition, under the proposal, a natural gas seller would have been required to 

state whether it operates under blanket certificate authority under § 284.402 of the 

Commission’s regulations, whether it reports transactions to price index publishers and 

whether any such reporting complies with the standards provided in § 284.403(a). 

Similarly, an interstate pipeline would have been required to state whether it operates 

under blanket certificate authority under § 284.284 of the Commission’s regulations, and 
Docket No. RM07-10-000 - 16 - 

whether it reports transactions to price index publishers and whether any such reporting 

complies with the standards provided in § 284.288(a). 

23. In response to the NOPR, seventy-four entities filed comments. Commission Staff 

held an informal workshop to discuss implementation and other technical issues 

associated with the proposals set forth in the NOPR on July 24, 2007. Following the 

workshop, twenty-nine entities filed reply comments. 

IV. Comments on the Notice of Proposed Rulemaking

A. Merits of Annual Reporting Requirement

24. As an initial matter, no commenter asserted that the Commission lacked 

jurisdiction to implement the annual reporting proposal or lacked jurisdiction over market 

participants required to report, i.e., “any buyer or seller that engaged in wholesale 

physical natural gas transactions the previous calendar year.”28

25. The vast majority of commenters on this issue supported the annual reporting 

proposal, although many suggested refinements. For instance, MidAmerican Energy 

Company and PacifiCorp (MidAmerican) supported the reporting proposal and praised 

FERC’s “sensible approach,” which would “help market participants and state and 

federal regulators better understand the natural gas market and pricing process.”29 

 28 New 18 CFR 260.401(b). 

29MidAmerican Comments at 1 & 5; see also Statoil Comments at 4-5 (supporting 

annual reporting requirement). 
Docket No. RM07-10-000 - 17 - 

Similarly, Wisconsin Electric Power Company and Wisconsin Gas Company LLC (the 

Wisconsin Companies) supported the reporting proposal stating that the “benefits of such 

a reporting regime outweigh the expenditures of resources necessary to implement.”30 

The Wisconsin Companies cautioned, however, that “[a]ny further frequency or 

granularity in the reporting requirements ... would be unduly burdensome.”31 The 

Wisconsin Companies proposed changes to the information reported, suggesting a simple 

breakdown for transaction information between monthly or daily spot markets would be 

insufficient and suggesting obtaining information about transactions of longer than a 

month and intraday transactions.32 The Wisconsin Companies reasoned that these 

categories of transactions “make up a substantial amount of the purchases and sales 

conducted by the Companies and therefore need to be included in the reporting.”33

26. The Public Service Commission of New York (PSCNY) supported the annual 

reporting proposal as a way to “provide critical information to analyze the important 

volumetric relationships between the fixed-price day-ahead or month-ahead transactions 

that form price indices.”34 The Producer Coalition35 also supported the annual reporting 

 30Wisconsin Companies Comments at 4. 

31Id. 

32Id. at 6. 

33Id. 

34PSCNY Comments at 2. 
Docket No. RM07-10-000 - 18 - 

proposal as a way to create greater market confidence and transparency. The information 

obtained from the requirement, according to the Producers Coalition, would result in 

greater understanding of the prices and availability of physical natural gas in interstate 

commerce and allow for assessment of the ratio of fixed-price transactions to indexpriced transactions.36 AGA supported the annual reporting of transaction data “because it 

could provide valuable information regarding the size of the physical natural gas 

markets.”37

27. In opposition to the annual reporting proposal, Morgan Stanley Capital Group Inc. 

(MSCG) contended that the Commission did not establish in the NOPR a clear 

connection between the required annual reporting and the statutory goal to achieve price 

transparency in the physical gas markets.38 For its part, MSCG asserted its confidence in 

the markets and contended it did not need the information that would be provided through 

the annual reporting requirement proposal.39 MSCG observed that the price indices are 

already good and are getting better which renders any annual reporting requirement an 

 35The Producer Coalition consists of three independent producers: Forest Oil 

Corporation; Hydro Gulf of Mexico LLC; and, Newfield Exploration Company. 

36Producer Coalition at 3. 

37AGA Comments at 3. 

38MSCG Comments at 7. 

39Id. 
Docket No. RM07-10-000 - 19 - 

unnecessary burden.40 MSCG described the proposal as an “additional regulatory 

intervention to benefit the publishers’ commercial enterprise.”41 Also in opposition, DCP 

Midstream LLC (DCP) objected to the annual reporting proposal as unnecessary given 

that there are other sources available for the information sought in the proposal.42

28. Platts, a price index publisher, proposed revisions to the annual reporting proposal. 

Platts contended that as drafted the annual reporting proposal could provide misleading 

information regarding the universe of fixed-price transactions and create a misleading 

comparison of fixed-priced transactions and index-priced transactions.43 This problem 

arises, according to Platts, because the proposed definition of fixed-price transactions 

lumped together two categories of fixed-price transactions: (a) fixed-price transactions 

that are eligible for inclusion in a published price index (“indexable” as described by 

Platts); and (b) fixed-price transactions that are not eligible. Without distinguishing these 

two categories, the information reported could not be used to determine the percentage of 

fixed-price transactions that are reported to price index publishers.44 Platts summarized 

the problem: “the proposed reporting form would sweep up far more physical fixed-price 

 40Id. 

41Id. 

42DCP Comments at 4-6. 

43Platts Comments at 4-7. 

44Id. at 5. 
Docket No. RM07-10-000 - 20 - 

deals than are eligible for inclusion in Platts’s indices. Rather than enabling a 

comparison of apples to apples, it would compare apples and fruit salad.”45

29. To avoid this problem, Platts recommended that the Commission distinguish 

between “transactions that are eligible to be included in [published price] indices and 

those that are not.”46 In support of this recommendation, American Public Gas 

Association (APGA) advocated changing the survey form to obtain data to determine 

“what proportion of reportable fixed-price transactions are actually being reported” to 

index publishers.47 APGA asserted that, when survey data are collected, FERC should 

“be able to determine once and for all whether the indices, on the basis of which 

hundreds of millions of dollars of natural gas are traded, are grounded in fixed-price 

transactions representing most of the fixed-price transactions being consummated in the 

market.”48

30. Platts, in its comments, also suggested that all companies – not just blanket 

certificate holders – notify the Commission annually of their price reporting status.49 

 45Id. at 7.

46Id. at 4. 

47APGA Reply Comments at 1; see also AGA Reply Comments at 7 (supporting 

“capture” of transactions eligible to be reported to a price index publisher). 

48APGA Reply Comments at 3. 

49Platts Comments at 8. 
Docket No. RM07-10-000 - 21 - 

Additionally, Platts suggested that all companies affirm that their price reporting 

practices comply with the Policy Statement procedures.50

31. Calpine Corporation (Calpine) contended that the Commission should avoid 

collection of information that is available elsewhere. As an example, Calpine suggested 

that a market participant that submits information on its fossil-fuel purchases to the U.S. 

Department of Energy’s Energy Information Administration (EIA) not be required to file 

an annual report at the Commission.51

B. De Minimis Threshold

32. In the NOPR, the Commission proposed to define a de minimis market participant 

as a market participant that engages in physical natural gas transactions that amount by 

volume to less than 2,200,000 MMBtus annually and to exclude such de minimis market 

participants from reporting transaction information.52 Several commenters sought to 

increase the de minimis threshold.53 MSCG supported a higher de minimis volume based 

on 200 standard futures contracts per day as a way to focus only on large sellers.54 

 50Id. 

51Calpine Comments at 4. 

52NOPR at P 52. 

53MSCG Comments at 10; Northwest Industrial Gas Users Comments at 7-10; 

Independent Oil & Gas Association of West Virginia at 3-4. 

54MSCG Comments at 10; see also INGAA Comments at 8 (supporting MSCG’s 

de minimis proposal). 
Docket No. RM07-10-000 - 22 - 

Northwest Industrial Gas Users (Northwest Industrials) argued for increasing the annual 

volume threshold significantly from the proposed 2,200,000 MMBtus per year to 

136,000,000 MMBtu per year.55 Independent Oil & Gas Association of West Virginia 

proposed a greater de minimis threshold of 10,000,000 MMBtu/year.56 A greater 

de minimis threshold would reduce the burden, it contended, for some of its small 

producer-members.57 The Wisconsin Companies called for a greater de minimis

threshold because the threshold set forth in the NOPR uses “physical volumes consumed 

[and, thus], may ignore the reality of daisy chain sales; that is, many transactions can 

occur before natural gas ultimately reaches the consumer.”58

33. Some commenters supported the Commission’s proposed de minimis threshold.59 

The Texas Alliance of Energy Producers (Texas Alliance) contended that the de minimis

threshold for annual transaction reporting is reasonable.60 IPAA advocated setting the 

 55Northwest Industrials at 7-10. 

56West Virginia Independents Comments at 3-4. 

57Id. 

58Wisconsin Companies Comments at 5. 

59See, e.g., APGA Comments at 10. 

60Texas Alliance Comments at 12. 
Docket No. RM07-10-000 - 23 - 

de minimis threshold as a function of the market size rather than setting it as a fixed 

number.61

34. The Interstate Natural Gas Association of America (INGAA) sought clarification 

that a de minimis market participant need only file basic identification and whether it 

reports transactions to index price publishers.62

C. Exclusion of Certain Transactions

35. Commenters sought to exclude certain transactions from the reporting 

requirement. INGAA sought to exclude interstate pipeline transactions associated with 

cash-out and operations because such information is already reported by some in Form 

No. 2 and on electronic bulletin board (EBB) postings and because such operational 

transactions would only distort assessment of the quantity of gas available for trading in 

the interstate market.63 The Oklahoma Independent Petroleum Association (Oklahoma 

IPA) sought to exclude transactions priced pursuant to a “percentage of proceeds” 

contract under which a producer is required to sell any gas produced and receive the 

percentage of proceeds realized by the buyer.64 Oklahoma IPA argued that sellers of 

 61IPAA Comments at 3-4. 

62INGAA Comments at 8. 

63Id. at 9. 

64Oklahoma IPA Comments at 3. 
Docket No. RM07-10-000 - 24 - 

such contracts have no influence on the price for the sale of gas.65 Along those lines, 

Oklahoma IPA argued that the de minimis threshold is too low.66

36. Shell sought to exclude reporting transactions that are related to operational 

functions and transactions between affiliates.67 As transactions related to operational 

functions, Shell included imbalance make-up, royalty-in-kind payments, gas provided for 

processing such as plant thermal reduction (shrinkage), and purchases and sales related to 

the production and gathering function.68 Such transactions, Shell contended, are not part 

of the wholesale market and their reporting would not provide a meaningful benefit.69 As 

to affiliate transactions, Shell noted that the Commission’s Policy Statement excludes 

transactions between affiliate companies.70

37. MSCG supported the exclusion of financially settled transactions from the 

proposed reports, claiming that the Commission lacks jurisdiction over natural gas futures 

 65Id. at 3; see also Hess Corporation Comments at 4-6. 

66Oklahoma IPA Comments at 3. 

67Shell Comments at 8. 

68Id. 

69Id. at 8-9. 

70Id. at 9 (citing Price Discovery in Natural Gas and Electric Markets, Policy 

Statement on Natural Gas and Electric Price Indices, 104 FERC ¶ 61,121 (2003) (Policy 

Statement)). 
Docket No. RM07-10-000 - 25 - 

contracts that are not settled through physical delivery.71 Further, MSCG asserted that 

the Commission’s memorandum of understanding with the Commodity Futures Trading 

Commission could facilitate obtaining such information.72

38. The Natural Gas Supply Association (NGSA) sought clarification that a market 

participant did not need to report the following transactions: 1) liquefied natural gas 

(LNG) import transactions prior to regasification; 2) natural gas exports from LNG 

liquefaction facilities; 3) transactions related to export for re-import; 4) transactions 

among affiliates; 5) sales and purchases in Alaska; and 5) sales to or purchases by an enduser.73

39. Several commenters sought to exclude retail transactions involving end-use 

customers from reporting. In its reply comments, the American Forest & Paper 

Association contended that end-use customers should not be required to report end-use 

purchases because end-use purchases do not play a role in setting index prices.74 NGSA 

sought clarification that the Commission did not intend to require the reporting of non-

 71MSCG Comments at 8. 

72Id. 

73NGSA Comments at 15. 

74AF&PA Comments at 5-7; see also NGSA Comments at 12-14; Industrial 

Energy Consumers of America Comments at 3. 
Docket No. RM07-10-000 - 26 - 

wholesale transactions in the annual report.75 NGSA contended that the Commission 

must limit reporting to wholesale transactions made in interstate commerce because 

section 23 of the Natural Gas Act limits the information the Commission may obtain to 

wholesale transactions in interstate commerce.76

40. AGA called for the Commission to exclude reporting of retail sales or volumes 

transported for others under retail choice programs.77 The National Energy Marketers 

Association (NEM) requested that retail transactions be exempt from any reporting 

requirement.78

41. EnCana Marketing seeks clarification that the reporting requirement only applies 

to transactions in the United States.79

D. Mandatory Reporting of Fixed-Price Transactions to Publishers

42. Some commenters advocated for the Commission to use its transparency authority 

to require mandatory reporting of fixed-price transactions directly to price index 

publishers or indirectly to them through the Commission. APGA sees the annual 

reporting proposal set forth in the NOPR “as an important first step in the journey 

 75NGSA Comments at 14. 

76NGSA Comments at 12; see also Honeywell Reply Comments at 2. 

77AGA Comments at 3. 

78NEM Comments at 4-7. 

79EnCana Marketing Comments at 5. 
Docket No. RM07-10-000 - 27 - 

towards full transparency in the physical market,” but stated that the Commission should 

go further and seek mandatory reporting of fixed-price transactions.80 

43. In contrast, other commenters objected to any mandatory reporting of fixed price 

transactions.81 For instance, concurring with the Commission’s reasoning set forth in the 

NOPR, the NEM opposed mandatory reporting, saying that voluntary reporting with a 

safe harbor for a good-faith effort is sufficient.82

E. Purchases and Sales

44. Several commenters objected to reporting of information regarding purchases. 

Several parties asserted that double-counting would result from the inclusion of 

purchases and sales.83 EnCana Marketing (USA) Inc. (EnCana Marketing) called for 

reporting on only sales of natural gas and not for purchases.84 EnCana Marketing 

asserted there is no value in reporting purchases “other than to enlarge the universe of 

market participants obligated to undertake the new reporting requirement.”85 

 80APGA Comments at 5-8. 

81Platts also supports FERC’s “continued reliance on voluntary price reporting.” 

Platts Comments at 2; see also Electric Energy Institute (EEI) and the Alliance of Energy 

Suppliers Reply Comments at 3; ONEOK Energy Services Co. L.P. Comments at 3.

82NEM Comments at 2-3. 

83See, e.g., Northwest Industrials Reply Comments at 4. 

84EnCana Marketing at 8-9. 

85Id. at 9. 
Docket No. RM07-10-000 - 28 - 

45. MSCG stated that the Commission should require the reporting of only sales, not 

purchases, contending that requiring buyers to report purchases would be overreaching.86 

The Texas Alliance contended it would be more efficient to require only the purchaser 

and/or recipient of gas from producers to file a report.87

F. Frequency of Reporting

46. Several commenters support reporting no more frequently than annually. EnCana 

Marketing contended that reporting more frequently than annually would be burdensome 

while not providing a significant benefit.88 MSCG contended that any reporting should 

be annual, unless a clear connection can be established that more frequent reporting 

results in greater transparency.89 In contrast, the National Association of Royalty Owners 

(NARO) favored monthly transaction reporting rather than just annual reporting; it stated 

that monthly as well as regional reporting would be more useful to royalty owners, 

including for the monitoring of price index reliability.90 

 86MSCG Comments at 9. 

87Texas Alliance Comments at 12. 

88EnCana Marketing Comments at 10. 

89MSCG Comments at 9. 

90NARO Comments at 4; see also Mewbourne Oil Company Comments at 5.
Docket No. RM07-10-000 - 29 - 

G. Codification of Price Index Policy

47. In the NOPR, the Commission sought comment on whether to codify the price 

index policy standards into the regulations. The regulations describe the price index 

policy standards by reference to the Policy Statement.91 NARO supported codification of 

the price index policy standards because the enforcement power of the Commission is 

necessary to protect the integrity of the data.92 MSCG opposed such codification.93

H. Aggregation of Data

48. The Wisconsin Companies call for the discretion to submit separate reports 

because “[a] requirement for [combination utilities] to submit a single annual report is 

problematic in that the separation of these business units currently prevents the sharing of 

market information that would be relevant to the reporting requirements.”94

 91Title 18 of the CFR, section 284.403(a) reads, in relevant part: 

To the extent Seller engages in reporting of transactions to publishers of 

electricity or natural gas indices, Seller shall provide accurate and factual 

information, and not knowingly submit false or misleading information or 

omit material information to any such publisher, by reporting its 

transactions in a manner consistent with the procedures set forth in the 

Policy Statement on Natural Gas and Electric Price Indices, issued by the 

Commission in Docket No. PL03–3–000 and any clarifications thereto. 

See also 18 CFR 284.288 (a) (identical language). 

92NARO Comments at 5; see also MidAmerican Comments at 10. 

93MSCG Comments at 12. 

94Wisconsin Companies Comments at 6. 
Docket No. RM07-10-000 - 30 - 

49. The Electric Power Supply Association (EPSA) called for companies to have the 

option to file either aggregated data for all its affiliate companies that buy and sell natural 

gas or individual reports for each entity that buys or sells gas.95 Similarly, Calpine 

Corporation called for the Commission to allow companies to aggregate data from 

subsidiaries in order to reduce the burden on industry and to provide the benefit of 

eliminating double-counting of intracompany transactions.96

50. NGSA wanted clarification that the annual transaction report, with a few 

exceptions, applies to all nonaffiliated third parties, and one report can be filed on behalf 

of all entities in a corporate family.97 NGSA advocated exclusion of sales between 

affiliates because such information would not be meaningful.98 NGSA contended that 

such exclusion is consistent with the price index reporting standards set forth in the 

Policy Statement, which “prohibit the reporting of sales between affiliates to price index 

developers.”99

 95EPSA Comments at 7-8. 

96Calpine Comments at 4-5. 

97NGSA Comments at 15. 

98Id. 

99NGSA Reply Comments at 4. 
Docket No. RM07-10-000 - 31 - 

51. On a similar issue, AGA and Duke Energy Ohio, Inc. sought clarification on the 

reporting obligations of asset managers.100

I. Public Filing

52. Several commenters supported maintaining as non-public any aggregated 

transaction data to be filed.101 NGSA contended that “the annual aggregated 

transactional information could cause competitive harm to the market by potentially 

revealing corporate proprietary trading strategies of a company particularly [if it has] 

geographically concentrated trading or supply portfolios.”102 Pacific Gas & Electric 

(PG&E) contended that data filed by market participants should be maintained as nonpublic for one year following the calendar year for which the data pertain to avoid 

revealing competitive buying strategies.103 Enbridge contended that each entity should 

have the option to file information non-publicly.104

53. NGSA advocated that any reporting be non-public. NGSA argued that even 

“annual aggregated transactional information could cause competitive harm to the market 

 100AGA Comments at 3; Duke Energy Ohio, Inc. Comments at 8-9. 

101Nicor Gas Company Comments at 6; Statoil Natural Gas LLC Comments at 5; 

PG&E Comments at 6; NGSA Reply Comments at 2.

102NGSA Reply Comments at 2. 

103PG&E Comments at 6. 

104Enbridge Comments at 26. 
Docket No. RM07-10-000 - 32 - 

by potentially revealing corporate proprietary trading strategies of a company, 

particularly for companies with geographically concentrated trading or supply 

portfolios.”105 NGSA explained that making public “the percentage of a company’s 

portfolio that is index-based or fixed-price-based and the percentage of natural gas sold in 

the monthly and daily markets” would reveal the company’s “procurement strategy and 

risk profile,” thus reducing its competitiveness in future deals.106 To address this 

concern, NGSA suggested not publicly disclosing the individual company filings or 

“redacting the identity of the market participant making the filing.”107 

J. Filing Date

54. In the NOPR, the Commission proposed an annual filing deadline of February 15 

and asked for comment on whether this deadline would be unduly burdensome.108 

MSCG and Statoil called for a deadline of April 30.109 AGA recommended a filing date 

 105NGSA Comments at 2. 

106Id. 

107Id. 

108NOPR at P 68. 

109MSCG Comments at 9; Statoil Comments at 6-7. 
Docket No. RM07-10-000 - 33 - 

of May 1.110 NGSA recommended a filing date of either May 1 or April 18, which is the 

filing deadline of FERC Form No. 2.111 

K. Safe Harbor

55. Several commenters requested that the Commission adopt a safe harbor for good 

faith compliance with the reporting obligation.112 The Commission should state, 

according to AGA, that it will not “prosecute, penalize or otherwise impose remedies on 

parties for inadvertent errors in... reporting.”113

L. Information Collection Burden

56. NEM and Sequent Energy Management, L.P. (Sequent) stated that the 

Commission significantly underestimated in the NOPR the cost burden imposed by the 

annual reporting proposal.114 NEM stated an estimate that it would take approximately 

200 hours annually to comply with the reporting requirement.115 NEM explained that 

because market participants’ data is not currently stored in a format that could be used to 

 110AGA Comments at 4. 

111NGSA Comments at 15-16. 

112AGA Comments at 6-7; NGSA Comments at 16-17; PG&E Comments at 6; 

Suez Energy North America, Inc. Comments at 10-12. 

113AGA Comments at 7. 

114 NEM Comments at 7; Sequent Comments at 6-7. 

115 NEM Comments at 8. 
Docket No. RM07-10-000 - 34 - 

fill out the proposed form, market participants would need to develop ancillary 

information technology systems to store such data at significant cost.116 NEM also stated 

that although the proposal would require annual reporting, data collection would be 

needed daily, which would be costly.117 Sequent pointed out that the Commission 

estimate overlooks the costs of legal and regulatory compliance for each annual report.118

Sequent also stated that the cost burden estimate ignores asset management arrangements 

because an annual reporting requirement would trigger renegotiation of those asset 

management contracts.119

V. Commission Determination

57. On the basis of the comments, the Commission has determined to adopt in large 

part the proposed annual reporting of certain natural gas transaction information, but to 

modify its proposal in several ways. Specifically, the Commission adopts rules here to 

require certain market participants to report annually information about their wholesale, 

physical natural gas transactions delivered in the previous calendar year in the United 

 116 NEM Comments at 7. 

117 NEM Comments at 8. 

118 Sequent Comments at 7. 

119 Sequent Comments at 7. 
Docket No. RM07-10-000 - 35 - 

States of America on a form, Form No. 552.120 For purposes of the annual reporting 

requirement, a market participant is defined as “any buyer or seller that engaged in 

wholesale, physical natural gas transactions in the previous calendar year.”121 

Specifically, on Form No. 552, a market participant must provide the Commission with 

contact information and answer questions about whether it sells pursuant to a blanket 

sales certificate and whether it reports to price index publishers. A market participant 

that sold or purchased more than a specified de minimis volume of natural gas during the 

previous calendar year, regardless of whether it holds a blanket sales certificate, must 

also provide the following information: 

a. the total volume of transactions for the previous calendar year; 

b. the volume of transactions that were priced at fixed prices for next-day 

delivery and were reportable to price index publishers; 

c. the volume of transactions priced by reference to next-day gas price 

indices; 

 120As we stated in the NOPR, although the standard contract for the most 

significant natural gas futures market traded on the New York Mercantile Exchange 

(NYMEX) requires physical delivery, the vast majority of those transactions do not go to 

delivery. For the purposes of the reporting requirement, the Commission excludes 

volumes of futures transactions from reporting. 

121 New 18 CFR 284.401(b). 
Docket No. RM07-10-000 - 36 - 

d. the volume of transactions that were priced at fixed prices for next-month 

delivery and were reportable to price index publishers; and, 

e. the volume of transactions priced by reference to next-month gas price 

indices. 

58. The final rule will also require a market participant to report whether it operated 

under a blanket sales certificate under the Commission’s regulations, § 284.402 or 

§ 284.284. This information will allow the Commission to measure overall market 

activity of the entities subject to its jurisdiction under the Natural Gas Act as well as 

allow the Commission to maintain records of such entities. The final rule will require a 

market participant to indicate whether it reports transactions to any price index 

publishers, and, if so, whether their reporting conforms to the standards set forth in 

§ 248.403 or § 248.288, as applicable. This information will allow the Commission to 

ensure the accuracy of price indices and to monitor adherence to the Commission’s 

transaction reporting standards. 

59. The final rule retains several of the specific proposals presented in the NOPR: the 

de minimis threshold is to remain the same; all filings are to be made public; both 

purchases and sales are to be reported; and the filing will be annual. 

60. The final rule makes several changes to the proposal in the NOPR. They include 

the following: 
Docket No. RM07-10-000 - 37 - 

a. Reporting will be limited to buyers and sellers only of wholesale natural 

gas delivered in the United States, i.e., it excludes sales to end-users. 

b. All wholesale buyers and sellers of natural gas operating under a blanket 

sales certificate and all others buying or selling more than the de minimis

volume must provide contact information, indicate whether they are 

operating under a blanket sales certificate, and whether they report prices to 

an index publisher. In the NOPR, the Commission did not propose asking 

wholesale buyers and sellers that are not operating under a blanket sales 

certificate whether they report prices to index publishers. 

c. A company with multiple affiliates may choose to report separately or in 

aggregate, as best meets its needs. In the NOPR, we assumed that reporting 

would be by affiliate or subsidiary. 

d. The questions on the form now request data relating to transactions with 

expected deliveries in the reporting year, rather than transaction dates. 

e. The form no longer requests the number of transactions. 

f. The definitions of fixed-price transactions in the form have been changed to 

tie more directly to those volumes that could be reported to index providers. 

To clarify those terms, the Commission will establish a web site defining 

reportable locations previous to each reporting year, and providing links to 

active index publishers and their reporting definitions. 
Docket No. RM07-10-000 - 38 - 

61. The final rule includes further instructions regarding certain specific categories of 

reportable and non-reportable transactions. The final rule also discusses some general 

issues raised by commenters including safe harbor provisions, mandatory reporting of 

fixed-price transactions to price index publishers, and possible effects of the rule on price 

index publishers. 

62. By obtaining the volume of transactions conducted for each significant market 

participant, the Commission, market participants and others will be able to determine the 

overall level of activity of market participants in the physical natural gas market. In 

particular, the information will provide regularly an estimate of (a) the size of the 

physical U.S. domestic natural gas market, (b) the use of index pricing in that market, 

(c) the size of the fixed-price trading market that produces price indices, and (d) the 

relative sizes of major traders. 

63. This information will improve the understanding of index pricing by interested 

entities, including the market participants and state commissions who use them. The 

volume break-down of transactions by price type, fixed-price or index-price, should 

permit an overall assessment of the ratio of index-using transactions to price-forming 

transactions, i.e., fixed-price transactions. At present, we do not know how much fixedprice transactions are a part of the universe of natural gas transactions, although they may 
Docket No. RM07-10-000 - 39 - 

be the minority of natural gas transactions.122 The Commission has taken several steps to 

restore confidence in natural gas index prices and their formation. By obtaining 

information regarding the extent that market participants make fixed-price transactions, 

market participants will be able to evaluate their confidence in the index prices that are 

formed by those fixed-price transactions. 

64. By collecting sales and purchases information, results may also be cross-checked 

to ensure that information is accurate. In effect, total sales should roughly equal total 

purchases, with some allowance for de minimis buyers and sellers. 

A. Definitions

65. Definitions used in this final rule for development of Form No. 552 include the 

following: 

a. Affiliate – An affiliate means a person who controls, is controlled by or is 

under common control with, another person.123 

 122Tr. at 32 (Comments of Ms. Jane Lewis-Raymond, American Gas Association) 

(surmising that we currently cannot know the amount of fixed-price transactions and the 

amount of fixed-price trades that make up an index). 

123A market participant has the option of including an affiliate’s information in its 

reporting on Form No. 552. This is a matter of convenience for companies subject to the 

final rule. Their affiliations are irrelevant to whether they are required to report under the 

final rule. If they satisfy the criteria of a reporting market participant, they must report. 

Therefore, the Commission intends to allow market participants to determine whether 

their relationships permit one company to report on behalf of another company. 

Accordingly, the definitions of “affiliate” used elsewhere in the Commission’s 

regulations, e.g., in Part 358, are not germane. 
Docket No. RM07-10-000 - 40 - 

b. Fixed Price – A “Physical Natural Gas” price determined by agreement 

between buyer and seller and not benchmarked to any other source of 

information. For example, Physical Basis transactions that refer directly to 

futures prices, for the purpose of this form, are not “Fixed Price” transactions. 

c. Next-Day Delivery – Delivery of a transaction executed prior to NAESB 

nomination deadline (11:30 am Central Prevailing Time) on one day for 

uniform physical delivery over the next pipeline day. Transactions done for 

Friday are usually for flow on Saturday, Sunday, and Monday inclusive. 

Trading patterns may vary in the case of holidays or the end of a month that 

occurs on a weekend. Commission Staff will maintain links to price index 

publishers’ descriptions of their processes for receiving price information and 

publishing indices on the ferc.gov website at http://www.ferc.gov/docsfiling/eforms.asp#552. 

d. Next-Month Delivery – Delivery of a transaction executed during the last five 

(5) business days of one month for uniform physical delivery over the next 

month. 

e. Physical Natural Gas – Natural gas transactions that contain an obligation to 

deliver natural gas at a specified location and at a specified time, with the 

exception of physically-delivered futures contracts. It is not necessary that 
Docket No. RM07-10-000 - 41 - 

natural gas actually be delivered under the transactions, only that the delivery 

obligation existed in the agreement when executed. Certain Physical Natural 

Gas transactions may not remain in existence through the time of delivery 

because they were traded away or “booked out.” For purposes of this form, 

these transactions should be included whether they went to delivery or not. 

The only exception, notwithstanding its delivery obligation, is futures 

contracts traded on the New York Mercantile Exchange which should not be 

reported in this form. 

f. Price Index Publisher – Companies that report price indices for U.S. 

wholesale natural gas markets. The list of companies can change over time. 

Commission Staff will maintain a list of relevant “Price Index Publishers” 

with links to their descriptions of their processes for receiving price 

information and publishing indices on the ferc.gov website at 

http://www.ferc.gov/docs-filing/eforms.asp#552. 

g. Prices that Refer to (Daily or Monthly) Price Indices – Prices for “Wholesale 

Natural Gas Purchases” or “Sales” that reference directly a daily or monthly 

index price published by a “Price Index Publisher” rather than a “Fixed Price” 

or a price that refers directly to some other benchmark. 
Docket No. RM07-10-000 - 42 - 

h. Quantity – Amount of purchases or sales expressed in units of energy “British 

Thermal Units” (Btu). One million BTUs (MMBtu) are, by definition, the 

same as one Dekatherm (Dth). A volume of one billion cubic feet (Bcf) of 

natural gas contains approximately one trillion Btus (TBtu or million MMBtu) 

of energy depending on the exact energy content of the natural gas. The 

quantities to be reported in the “Purchase and Sales Information” schedule 

should be measured in TBtus. 

i. Reportable Locations – Those locations (hubs, pipelines, regions, etc.) where 

“Price Index Publishers” collect “Fixed Price” information for transactions 

with “Next-Day” or “Next-Month Delivery” obligations, and produce index 

prices. These locations may change over time. Commission Staff will 

maintain a list of current “Reportable Locations” with links to “Price Index 

Publishers” descriptions of their processes for receiving price information and 

publishing indices on the ferc.gov website at http://www.ferc.gov/docsfiling/eforms.asp#552. 

j. Reporting Company – The person, corporation, licensee, agency, authority, or 

other legal entity or instrumentality on whose behalf the report is being 

submitted by the “Respondent.” 
Docket No. RM07-10-000 - 43 - 

k. Respondent – The person, corporation, licensee, agency, authority, or other 

legal entity or instrumentality that is submitting the report either on its own 

behalf, or on behalf of itself and/or its affiliates. A Respondent may choose to 

either report for all its affiliates collectively, or may choose to have each of its 

affiliates report separately as their own “Respondent.” If reporting 

collectively, the reporting “Respondent” must report for each “Affiliate” in 

the “Schedule of Reporting Companies” and the “Price Index Reporting 

Schedule,” and collectively for all its affiliates in the “Purchase and Sales 

Information” schedule. 

l. Wholesale Natural Gas Purchases – The “Quantity” of “Physical Natural Gas” 

purchased by the “Reporting Company” during the “Year of Report,” with the 

exception of certain futures contracts. 

m. Wholesale Natural Gas Sales – The “Quantity” of “Physical Natural Gas” sold 

by the “Reporting Company” during the “Year of Report” to customers that 

do not use all the natural gas they buy themselves under contracts with 

physical delivery obligations, with the exception of physically-delivered 

futures contracts. 
Docket No. RM07-10-000 - 44 - 

B. Facilitating Price Transparency

66. The annual reporting requirement will make the price formation process more 

transparent and aid the Commission’s efforts to monitor price indices and the integrity of 

wholesale natural gas markets. These efforts follow the directive of Congress in the 

transparency provisions to facilitate price transparency “having due regard for the public 

interest, the integrity of [the physical natural gas] markets, [and] fair competition.”124 By 

monitoring and reporting on price indices and their influence over wholesale natural gas 

pricing in the United States, the Commission ensures that market participants can have 

confidence in the oversight of published price indices, a basic building block of price 

formation. We reiterate that, without confidence in the basic processes of price 

formation, market participants cannot have faith in the value of their transactions, the 

public cannot believe that the prices they see are fair, and it is more difficult for the 

Commission to ensure that jurisdictional prices are “just and reasonable.”125 

67. The information gained from the annual reporting requirement will make the price 

formation process more transparent by providing a better understanding of the size of the 

physical natural gas market, the use of fixed and indexed prices in that market, and the 

formation of price indices. The information collected under this requirement is focused 

 124Section 23(a)(1) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(1) (2000 & Supp. 

V 2005). 

125 See sections 4 and 5 of the Natural Gas Act, 15 U.S.C. 717c & 717d.
Docket No. RM07-10-000 - 45 - 

specifically on daily and monthly physical spot or “cash” market activity and the 

contracting based on the prices developed in those markets. The requirement will not 

create additional information concerning other types of wholesale natural gas contracting 

practices in the United States, such as long-term, fixed-price transactions, swaps and 

other financially-settled transactions and futures. Better understanding of the role and 

functioning of wholesale natural gas spot markets can increase confidence that posted 

market prices of natural gas accurately reflect the interplay of legitimate market forces. 

68. In promulgating these regulations to improve the transparency of the natural gas 

markets, the Commission exercises its authority under the transparency provisions. 

Under the Natural Gas Act,126 the Commission has long borne a responsibility to protect 

wholesale electric and natural gas customers.127 The transparency provisions of EPAct 

2005 added new authority for protecting the integrity of the markets themselves as a way 

of protecting customers in an active market environment.128 As discussed above, 

Congress’s grant of transparency authority followed the Commission’s earlier efforts at 

 12615 U.S.C. 717 et seq.

127 See sections 4 and 5 of the Natural Gas Act, 15 U.S.C. 717c, 717d; sections 

205 and 206 of the Federal Power Act, 16 U.S.C. 824d, 824e. 

128See section 23(a)(1) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(1) (2000 & 

Supp. V 2005). 
Docket No. RM07-10-000 - 46 - 

monitoring the price formation process.129 Congress recognized that the Commission 

might need expanded authority to mandate additional reporting to improve market 

confidence through greater price transparency and included in EPAct 2005 authority for 

the Commission to obtain information on the availability and prices of sales of wholesale 

natural gas. 

69. Pursuant to this grant of authority, the final rule continues the Commission’s 

efforts to monitor price index formation and to increase transparency of the price 

formation process, and, thus, protect the integrity of the physical natural gas markets. 

The final rule increases transparency by allowing, for the first time, the Commission and 

other market observers to determine an annual estimate of (a) the size of the physical 

domestic natural gas market, (b) the use of index pricing in that market, (c) the size of the 

fixed-price trading market that produces price indices from the subset reported to index 

publishers, and (d) the relative size of major traders. 

70. The information to be reported in the annual reporting requirement falls well 

within the Commission’s transparency authority. In section 23 of the Natural Gas Act, 

Congress provided the Commission a broad grant of authority to obtain and disseminate 

“information about the availability and prices of natural gas sold at wholesale and in 

 129See, supra, at P 11. 
Docket No. RM07-10-000 - 47 - 

interstate commerce.”130 Information about the volume of wholesale, physical gas 

transactions and about the type of pricing used for those transactions is “information 

about the availability and prices of natural gas sold at wholesale and in interstate 

commerce.”131

71. The information sought in the final rule is not obtainable elsewhere. Section 

23(a)(4) of the Natural Gas Act requires the Commission to “consider the degree of price 

transparency provided by existing price publishers and providers of trade processing 

services....”132 As we stated in the NOPR, because of the way transactions currently take 

place in the natural gas industry, there is no way to estimate in even the grossest terms the 

overall size of the natural gas market or its breakdown by types of contract provision, 

including pricing (fixed prices or prices using or referring to price indices) and term (e.g., 

spot transactions for next-day or next-month delivery or forward transactions for longerterm delivery).133 Further, currently there is no way to determine important volumetric 

 130Section 23(a)(1) of the Natural Gas Act; 15 U.S.C. 717t-2(a)(1) (2000 & Supp. 

V 2005). 

131Id. 

132Section 23(a)(4) of the Natural Gas Act; 15 U.S.C. 717t-2(a)(4) (2000 & Supp. 

V 2005). 

133NOPR at 50 (“As noted by the price index developer Platt’s, the question of 

what is the total size of the traded market has ‘hung over the gas market for years.’”) 

(citing Comments of Platts at 6, Transparency Provisions of the Energy Policy Act, 

Docket No. AD06-11-000 (filed Nov. 1, 2006)). 
Docket No. RM07-10-000 - 48 - 

relationships between the fixed-price, day-ahead or month-ahead transactions that form 

price indices or to determine the use of price indices themselves. 

72. In comments on the NOPR, no commenter pointed to a source for similar 

information. DCP contended that “the information that is available through the price 

index publishers is the same information that is being requested [in the annual reporting 

proposal] and it is the actual data that makes up the index prices that represent the price 

of natural gas on any given day at any given location.”134 The information to be reported 

on Form No. 552 is not the same. The information to be reported will include 

information regarding transactions that could be (i.e., are qualified to be) but are not 

reported to price index publishers, therefore, such information is not available from price 

index publishers. The amount of market activity that could form price indices as opposed 

to the amount that actually does form price indices is an important fact that has been 

missing in the discussion of the Commission’s market price policies, leading to confusion 

and undermining confidence in indices. 

73. Further, the Commission’s goal is not only to understand the transactions used to 

formulate price indices; it is to understand how influential price indices are in the overall 

transacting of natural gas in U.S. wholesale markets. The information to be reported on 

Form No. 552 will allow market participants to evaluate their use of indexed transactions. 

 134DCP Comments at 5. 
Docket No. RM07-10-000 - 49 - 

Typically, market participants rely on index-priced transactions as a way to reference 

market prices without taking on the risks of active trading. These market participants 

rely on index prices, often whether or not those prices are derived from a robust market 

of fixed-price transactions. Such information is not available elsewhere. 

74. Also, the annual reporting requirements will allow the Commission, market 

participants and the public to estimate the amount of activity of significant wholesale 

traders relative to the overall market. Information on significant traders’ activity allows 

the Commission and the public to understand the impact of the largest traders on the price 

formation process, improving natural gas market transparency. 

75. The Commission directs Staff to monitor the information received in the filings of 

Form No. 552, to determine whether the information received meets the goals set forth in 

this preamble. Although in future years the Commission Staff may change the reportable 

locations and may change the format of Form No. 552 in order to make the form easier to 

complete and to make the information submitted easier to analyze, the substance of Form 

No. 552 will remain the same absent Commission action. 

C. Reporting Requirements Retained from the Notice of Proposed 

 Rulemaking 

76. The final rule retains several of the features of the annual reporting proposal 

presented in the NOPR: (1) the de minimis threshold remains the same; (2) all filings are 

to be made publicly; (3) both purchases and sales are to be reported; and (4) the form is to 

be submitted annually. 
Docket No. RM07-10-000 - 50 - 

1. De Minimis Threshold 

77. In the final rule, the Commission retains the volumetric de minimis threshold 

proposed in the NOPR and clarifies its application.135 A market participant is required to 

report its transactions annually if it engages either in wholesale sales that amount to 

2,200,000 MMBtus or more or wholesale purchases that amount to 2,200,000 MMBtus or 

more. Each market participant operating under a blanket certificate under § 284.284 or 

§ 284.402 must file a Form No. 552. However, if a market participant operating under a 

blanket certificate under § 284.284 or § 284.402 buys or sells less than the de minimis

volumes in the reporting year, it is not required to provide information about the volumes 

of its transactions. A market participant that does not operate under a blanket certificate 

under § 284.284 or § 284.402, and that buys or sells less than the de minimis volumes in 

the reporting year, is not required to file a Form No. 552. The creation here of a de

minimis threshold is consistent with the transparency provisions. Notwithstanding 

Congress’s broadening of the scope of the Commission’s jurisdiction in new section 23 

of the Natural Gas Act with respect to transparency, Congress mandated that the 

 135 New 18 CFR 284.401(a) (defining de minimis market participant). The 

regulations define a market participant as “any buyer or seller that engaged in physical 

natural gas transactions for the previous calendar year.” New 18 CFR 284.401(b).
Docket No. RM07-10-000 - 51 - 

Commission exempt “natural gas producers, processors or users who have a de minimis

market presence [from compliance] with the reporting requirements of this section.”136 

78. In proposing in the NOPR a de minimis threshold for reporting which would apply 

to market participants, the Commission sought to require reporting from a sufficient 

number of significant market participants to ensure, in the aggregate, an accurate picture 

of the physical natural gas market as a whole. To this end, the Commission proposed in 

the NOPR to define such a de minimis market participant as a market participant that 

engages in physical natural gas transactions that amount by volume to less than 2,200,000 

MMBtus annually. 137 This figure was based on the simple calculation of one-ten 

thousandth (1/10,000th) of the annual physical volumes consumed in the United States, 

which is approximately 22 trillion cubic feet (Tcf) (or roughly 22 billion MMBtus).138 

Looked at another way, a de minimis market participant would trade the equivalent of 

less than one standard NYMEX futures contract per day. Although a market participant 

that contracts for 1/10,000th of the nation’s annual physical volume may appear to have 

little effect on natural gas prices, that participant may be transacting only at one location 

 136Section 23(d)(2) of the Natural Gas Act, 15 U.S.C. 717t-2 (2000 & Supp. V 

2005). 

137 New 18 CFR 260.401.

138U.S. Department of Energy, Energy Information Administration, Natural Gas 

Summary, Data Series: Total Consumption, 2006, 

http://tonto.eia.doe.gov/dnav/ng/ng_sum_lsum_dcu_nus_a.htm. 
Docket No. RM07-10-000 - 52 - 

and, thus, have a much greater pricing effect there. In the NOPR, we indicated that we 

do not expect annual physical volumes consumed in the United States to remain constant, 

however the figure of 22 Tcf was a useful snapshot of consumption and a useful startingpoint for setting the de minimis exemption. 

79. As requested by INGAA, the Commission clarifies that each market participant 

that (a) either holds a blanket certificate under § 284.284 or § 284.402, or (b) buys or 

sells more than the de minimis volumes in the reporting year must report: identification 

information; whether it holds a blanket certificate under § 284.284 or § 284.402; whether 

it reports transactions to price index publishers, and, if so, whether its reporting conforms 

to the applicable regulations. A market participant that holds a blanket certificate under 

§ 284.284 or § 284.402 but that buys or sells less than the de minimis volumes in the 

reporting year must complete the form except it need not report its volumes. 

80. Several commenters, including MSCG,139 Northwest Industrial Gas Users,140 and 

the Independent Oil & Gas Association of West Virginia,141 proposed greater de minimis

thresholds. Other commenters, including the Texas Alliance,142 supported the proposed 

threshold. No commenter suggested a lesser threshold. The proposed threshold is small 

 139MSCG Comments at 10. 

140Northwest Industrial Gas Users Comments at 7-10 

141Independent Oil & Gas Association of West Virginia Comments at 3-4. 

142Texas Alliance Comments at 12. 
Docket No. RM07-10-000 - 53 - 

enough to allow the Commission to accurately determine the size of the physical natural 

gas market, while at the same time, large enough to exclude market participants, who in 

the aggregate, do not contribute significantly to that market. 

81. The spot wholesale natural gas markets that create index prices – those markets 

that involve fixed-price trading for next-day or next-month delivery at reportable 

locations and that are actually reported to price index publishers – make up only a tiny 

part of the overall wholesale natural market in the United States. This is true whether one 

compares those particular trading volumes to total U.S. consumption or whether, as 

Wisconsin Companies points out in their comments143 (in support of a higher de minimis

threshold) an appropriate total trading volume would also include those transactions that 

take place between the production and consumption of natural gas. When the spot 

wholesale natural gas markets that create index prices are then broken down among many 

varied geographical locations, even very small market participants can be very important 

in narrow regional contexts. It is conceivable that these small, local wholesale market 

participants do not actually contribute to price formation in this type of trading, but the 

Commission and other market observers are in no position to know at this time. If these 

small, local wholesale market participants do contribute to this type of price formation – 

 143Wisconsin Companies Comments at 5. 
Docket No. RM07-10-000 - 54 - 

which would be a healthy thing for these markets – such contribution would not be 

detectable if the de minimis threshold were set too high. 

2. Public Filing

82. A market participant must submit Form No. 552, in a public filing. Some 

commenters objected to filing the form publicly because, in their view, public filing of 

the annual report could reveal confidential trading strategies.144 The Commission finds 

these commenters’ concerns are misplaced and ignore Congress’s directive in the 

transparency provisions. Public access to Form No. 552 data would comport with the 

transparency provisions which require that any such rules “provide for the dissemination, 

on a timely basis, of information... to the public.”145 The transparency provisions further 

direct the Commission to “rely on [existing price publishers and providers of trade 

processing services] to the maximum extent possible.”146 By requiring public filings by 

market participants, the Commission would provide an opportunity for trade publications 

and commercial vendors to aggregate the information filed and provide any analysis 

should a desire for such services arise in the energy information marketplace. 

 144See, e.g., PG&E Comments at 6. 

145Section 23(a)(2) of the Natural Gas Act, 15 U.S.C. 717t-2 (2000 & Supp. V 

2005). 

146Section 23(a)(4) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(4) (2000 & Supp. 

V 2005). 
Docket No. RM07-10-000 - 55 - 

83. Under the transparency provisions, the Commission is required to balance 

confidentiality concerns with the transparency goal that the information collected be 

disseminated publicly. The annual filing requirement balances these two statutory 

requirements. By requiring a company to file its report publicly, the requirement adheres 

to Congress’s directive that “[t]he rules shall provide for the dissemination, on a timely 

basis, of information about the availability and prices of natural gas at wholesale and in 

interstate commerce to the Commission, State commissions, buyers and sellers of 

wholesale natural gas, and the public.”147 Because the filing requires aggregated 

information and does not require reporting of price information or of transaction-specific 

information, the annual reporting requirement adheres to Congress’s other directive “to 

ensure that consumers and competitive markets are protected from the adverse effects of 

potential collusion or other anticompetitive behaviors that can be facilitated by untimely 

public disclosure of transaction-specific information.”148 The annual reporting 

requirement avoids facilitating anti-competitive behavior in several ways: (i) reported 

information would not include specific price information; (ii) reported information would 

be aggregated information over a period of one year and not transaction-specific 

 147Section 23(a)(2) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(2) (2000 & Supp. 

V 2005). 

148Section 23(b)(2) of the Natural Gas Act, 15 U.S.C. 717t-2(b)(2) (2000 & Supp. 

V 2005). 
Docket No. RM07-10-000 - 56 - 

information; (iii) reported information would be made on an aggregated, national level, 

and not by point or even region; and (iv) information would not be reported until four 

months after the end of the reporting year. 

84. This approach is consistent with the opinion of the U.S. Department of Justice, 

which observed that the Commission “may be able to achieve the benefits of 

transparency while limiting its potential harm by aggregating, masking, and lagging the 

release of such information.”149 The Commission determines that “masking” or 

permitting filings on a confidential basis is unnecessary to avoid potential harm. The 

aggregation of the information and lagging of public filing is sufficient to avoid such 

harm.150 Any potential harm from the public filing of Form No. 552 would be minimal 

given the aggregation of data, both aggregation across the nation and aggregation across 

the calendar year, and given the lagging of the public filing of information until May 1 of 

the year following the reporting year. In circumstances in which any potential harm is 

 149Comments of the U.S. Department of Justice, Antitrust Division, Transparency 

Provisions of the Energy Policy Act, Docket No. AD06-11-000 (filed Jan. 25, 2007). 

The Department of Justice’s comments focused on the electricity markets, although it did 

note that the same general considerations that applied to electricity markets also applied 

to natural gas markets. 

150This is consistent with our approach regarding the individual transaction data 

reported on Electric Quarterly Reports. For that much more detailed reporting of 

individual transactions, the Commission found that a delay of 30 days for reporting 

individual transaction data in EQR filings would greatly reduce the usefulness of the data 

as a tool for collusion. Revised Public Utility Filing Requirements, Order No. 2001, 

67 FR 31043 (May 8, 2002), FERC Stats. & Regs. ¶ 31,127 (2002) at P 17. 
Docket No. RM07-10-000 - 57 - 

minimal, it is not the Commission’s practice to permit confidential filings.151 In addition, 

smaller market participants whose operations are limited to a smaller region of the 

country are likely to transact less than the de minimis amount required to report their 

transaction information. Further, without public filings by market participants, market 

observers would not be able to estimate the relative size of major traders. 

3. Purchases and Sales

85. Several commenters, including EnCana Marketing,152 MSCG,153 and the Texas 

Alliance,154 objected to the inclusion of purchases as well as sales in the reporting 

requirement. While the Commission appreciates these commenters’ concerns, it believes 

that volume information on purchases as well as sales is necessary for developing a 

complete and accurate picture of the size of the natural gas spot market. For example, it 

will permit the Commission Staff to cross-check information. Also, as discussed above, 

spot prices are formed in only a very tiny fraction of all wholesale U.S. natural gas 

 151This is consistent with our approach regarding the individual transaction data 

reported on Electric Quarterly Reports. For that much more detailed reporting of 

individual transactions, the Commission found that a delay of 30 days for reporting 

individual transaction data in EQR filings would greatly reduce the usefulness of the data 

as a tool for collusion. Revised Public Utility Filing Requirements, Order No. 2001, 

67 FR 31043 (May 8, 2002), FERC Stats. & Regs. ¶ 31,127 (2002) at P 17. 

152EnCana Marketing Comments at 8-9. 

153MSCG Comments at 9. 

154Texas Alliance Comments at 12. 
Docket No. RM07-10-000 - 58 - 

transactions, which are then broken down among many varied geographical locations. 

Verifying the amount of such trading becomes far more difficult. At the level of de

minimis volume set forth herein, this type of cross-verification becomes more important 

than it would otherwise. In this regard, Staff’s experience implementing the Electronic 

Quarterly Reports suggests that purchase transactions are quite important in developing a 

comprehensive picture of trading activity. 

86. Although the language of the natural gas transparency provisions address sales of 

natural gas, it does not limit the Commission from seeking information about natural gas 

purchases as well as sales. They are simply different sides of the same transaction. 

Congress directed the Commission to “facilitate price transparency in markets for the 

sale... of physical natural gas in interstate commerce,” but that language does not limit 

the Commission to seeking information regarding only sales.155 Purchases of physical 

natural gas are also a part of such markets; there is no market for the sale of natural gas 

that does not include purchases. Nor does the natural gas transparency provision 

language that provides for the “dissemination... of information about the availability and 

prices of natural gas sold at wholesale and interstate commerce” restrict the 

 155Section 23(a)(1) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(1) (2000 & Supp. 

V 2005). 
Docket No. RM07-10-000 - 59 - 

Commission.156 As a practical matter, information regarding purchases of natural gas is 

necessary to evaluate the reliability of information regarding sales of natural gas. Both 

types of information are necessary to obtain a useful gauge of price transparency in 

natural gas markets. 

87. MSCG expressed a further concern about double-counting if purchases and sales 

are included.157 Form No. 552 requires that purchases clearly be reported separately from 

sales. Given the clear identification of sales as opposed to purchases in the form, the 

Commission remains confident that its Staff and other users of this information will be 

capable of not mixing these separate sets of numbers in their analyses. 

4. Annual Reporting

88. The Commission retains from the NOPR the requirement that Form No. 552 be 

submitted annually. Commenters provided a variety of perspectives on the frequency of 

filing, but none supported less frequently than annually. NARO favored monthly, 

regional reporting.158 EnCana Marketing and MSCG commented that more frequent 

reporting would not provide a significant benefit159 Annual, national information alone 

 156Section 23(a)(2) of the Natural Gas Act, 15 U.S.C. 717t-2(a)(2) (2000 & Supp. 

V 2005) (emphasis added). 

157MSCG Comments at 9. 

158NARO Comments at 4; see also Mewbourne Oil Company Comments at 5.

159EnCana Marketing Comments at 10 and MSCG Comments at 9 
Docket No. RM07-10-000 - 60 - 

will significantly improve both the Commission’s and others’ understanding of index 

pricing. Annual reporting should provide a useful amount of information to assess the 

volume break-down of transactions by price type, fixed-priced or index-priced, and the 

ratio of index-using transactions to price-forming transactions, i.e., fixed-priced 

transactions. A more granular breakdown, which would result from more frequent 

reporting or from regional reporting, would be more likely to reveal the strategies of 

particular market participants, raising the concerns Congress in the transparency 

provisions cautioned the Commission to avoid, that is, “the adverse effects of potential 

collusion or other anticompetitive behaviors that can be facilitated by untimely public 

disclosure of transaction-specific information.”160

D. Reporting Requirements Changed From the Notice of Proposed 

 Rulemaking

89. In the final rule, the Commission changes several features of the reporting 

requirement proposal presented in the NOPR: (1) retail (end-use) transactions are 

excluded; (2) basic contact information must be reported; (3) a market participant must 

indicate whether it reports transactions to price index publishers; (4) a market participant 

may report in the aggregate for its affiliates; (5) volumes are to be reported based on 

delivery date, not execution date; (6) a market participant must report volume 

 160 Section 23(b)(2) of the Natural Gas Act, 15 U.S.C. 717t-2(b)(2) (2000 & Supp. 

V 2005). 
Docket No. RM07-10-000 - 61 - 

information but not the number of transactions; (7) volumes of transactions must be 

broken down by whether they are reportable to price index publishers; and (8) the filing 

deadline is changed to May 1 of each year. 

1. Exclusion of Retail Transactions

90. Several commenters objected to the inclusion of purchases in the form because 

end-use customers would be required to file annual reports.161 Although some 

transactions reported to indices may include purchases by large end-users, the 

Commission is generally interested in wholesale prices. On balance, restricting reporting 

only to clearly wholesale transactions should provide a reasonable set of data for 

assessing wholesale price activity, without burdening retail or end-use customers. 

Consequently, the Commission does not require end-use customers or retail buyers to 

report transaction information unless they also make wholesale sales or purchases of 

natural gas greater than the de minimis threshold. Likewise, a transaction made to an 

end-user is not to be included in the volumes reported on the form. Of course, if the enduse customer holds a blanket marketing certificate under § 284.402, it must report on 

Form No. 552 that it holds such certificate and whether it reports to price index 

publishers. 

 161See, e.g., AF&PA Comments at 5-7; NGSA Comments at 12-14; Industrial 

Energy Consumers of America Comments at 3.
Docket No. RM07-10-000 - 62 - 

2. Basic Contact Information and Use of Blanket Sales Certificates

91. Each market participant, including a de minimis market participant, must provide 

contact information and indicate on Form No. 552 whether or not it operates under 

blanket certificate authority under § 284.402 or § 284.284 of the Commission’s 

regulations. This information from a market participant will provide the Commission 

with basic information regarding participants in wholesale natural gas markets necessary 

to monitor their behavior systematically as well as a measure of the number of holders of 

Natural Gas Act blanket sales certificates and contact information for those blanket sales 

certificate holders. This combination of information will permit some break down of 

market information between jurisdictional and non-jurisdictional components, which is in 

turn useful for effective oversight and monitoring for market manipulation.162

3. Status of Reporting to Price Index Publishers

92. Each market participant must state on Form No. 552 whether it reports 

transactions to price index publishers. If so, it must also state whether its reporting 

complies with the standards for reporting provided in § 284.403(a) or § 284.288(a), 

which in turn incorporate the reporting procedures of the Policy Statement on Natural 

 162The Commission has the authority to police against manipulation of natural gas 

markets in connection with jurisdictional transactions. Prohibition of Energy Market 

Manipulation, Order No. 670, 71 FR 4244 (Jan. 26, 2006), FERC Stats. & Regs. ¶ 31,202 

(2006), at P 4, 21-24. 
Docket No. RM07-10-000 - 63 - 

Gas and Electric Price Indices.

163 Prior to this final rule, a blanket sales certificate holder 

did not need to report whether it reports transactions to a price index publisher; it needed 

only report whether it changes that reporting status.164 To simplify the reporting, instead 

of a letter notification only upon a change in company policy, under this final rule, a 

market participant, including a blanket sales certificate holder, must notify the 

Commission annually of its price index reporting practices.165 The Commission amends 

§ 284.288(a) and § 284.403(a) in this final rule accordingly. 

93. The Commission also requires a holder of blanket sales certificate to notify the 

Commission annually about its reporting of transaction information to price index 

publishers and whether any such reporting conforms to the Policy Statement. After the 

Policy Statement’s notification requirement took effect, we observed that blanket 

 163Policy Statement on Natural Gas and Electric Price Indices, 104 FERC ¶ 61,121 

(2003). 

164See former 18 CFR 284.403(a) (blanket marketing certificate holder); former 

18 CFR 284.288(a) (unbundled sales certificate holder). In Order No. 644, the 

Commission required each holder of a blanket sales certificate to notify the Commission 

whether it engages in reporting of its transactions to publishers of electricity or natural 

gas price indices according to the standards set out in the Commission’s Policy Statement 

on Price Indices. Amendments to Blanket Sales Certificates, Order No. 644, 68 FR 

66323 (Nov. 26, 2003), FERC Stats & Regs. ¶ 31,153 (2003), at P 70-72 (amending 

18 CFR 284.403(a) and 18 CFR 284.288(a)), reh’g denied,107 FERC ¶ 61,174 (2004). 

165However, a seller of electricity under market-based rates will continue to be 

obligated to notify the Commission of its reporting status upon a change in status. See 

18 CFR 35.37(c). 
Docket No. RM07-10-000 - 64 - 

marketing certificate holders may have overlooked this requirement and we provided the 

opportunity for blanket marketing certificate holders to notify the Commission by 

August 1, 2005 of their reporting status.166 Based on Commission Staff’s experience 

monitoring price indices and adherence to the Policy Statement, as discussed in the 

introduction, the Commission believes that notification on an annual basis would make 

the information more reliable. As a further benefit, a filing company would have the 

opportunity to review their practices in coordination with their response to the data 

collection proposal described above. 

94. In the NOPR, the Commission sought comment on whether the procedures set 

forth in the Policy Statement for reporting to price index publishers should be codified.167 

Of those who commented on this provision, some supported codification; some opposed 

codification.168 The Commission will not codify these procedures. The Commission 

believes that the regulations read in conjunction with the Policy Statement are sufficiently 

clear to price index publishers and those who report to price index publishers. In this 

regard, for example, this year, Commission Staff concluded audits of three natural gas 

 166Order on Further Clarification of Policy Statement at P 21. 

167NOPR at P 70. 

168MidAmerican supported codification as a way to add clarity to the regulations. 

MidAmerican Comments at 10; see also NARO Comments at 5. MSCG opposed 

codification. MSCG Comments at 12; see also ONEOK Energy Service Co. Comments 

at 5. 
Docket No. RM07-10-000 - 65 - 

market participants with blanket certificate authority that were data providers subject to 

§ 284.403 of the Commission’s regulations.169 Commission Staff found that these three 

companies generally complied with the standards in the Policy Statement and found the 

regulations sufficiently clear to perform the audits and ensure compliance with the 

regulations. 

95. In the final rule, in contrast to the proposal in the NOPR, a market participant with 

sales or purchases greater than or at the de minimis level must state whether it reports its 

transactions to a price index publisher regardless of whether it operates under a blanket 

sales certificate. Platts, in its comments, suggested that all companies – not just blanket 

certificate holders – notify the Commission annually of their price reporting status.170 In 

fact, the processes used in the formation of wholesale natural gas prices by market 

participants have no regard for whether or not those participants operate under blanket 

certificates. In order to clearly assess the effectiveness of the index formation process, 

the Commission needs to collect the information about reporting to price index publishers 

 169See April 5, 2007 letter issued to Anadarko Energy Services Co. in Docket 

No. PA06-11-000 by Director, Office of Enforcement and attached Audit of Price Index 

Reporting Compliance; April 5, 2007 letter issued to BG Energy Merchants, LLC. in 

Docket No. PA06-12-000 by Director, Office of Enforcement and attached Audit of Price 

Index Reporting Compliance; April 5, 2007 letter issued to Marathon Oil Co. in Docket 

No. PA06-13-000 by Director, Office of Enforcement, and attached Audit of Price Index 

Reporting Compliance.

170Platts Comments at 8. 
Docket No. RM07-10-000 - 66 - 

from each market participant including market participants that section 1 of the Natural 

Gas Act171 excludes from the Commission’s certificate authority under section 7 of the 

Natural Gas Act.172

96. However, only a company operating pursuant to a blanket sales certificate must 

state on Form No. 552 whether its reporting to price index publishers conforms to the 

Commission’s Policy Statement. Platts suggested that all companies affirm that their 

price reporting practices comply with the Policy Statement procedures.173 But, the Policy 

Statement standards apply only to holders of blanket sales certificates. A market 

participant that does not hold blanket sales certificates is not required to comply with the 

Policy Statement processes, nor does it receive the safe harbor available in the Policy 

Statement. Consequently, there is no value to the Commission in collecting and 

publicizing the compliance of companies with policies that do not apply to them. 

4. Aggregated Reporting 

97. In reporting transactions on Form No. 552, a market participant may, but is not 

required to, aggregate information from its affiliates. One commenter, Wisconsin 

Companies, underscored its difficulties in providing an aggregated report.174 Others, 

 17115 U.S.C. 717. 

17215 U.S.C. 717f. 

173Id. 

174Wisconsin Companies at 6. 
Docket No. RM07-10-000 - 67 - 

including EPSA, Calpine and NGSA, sought the ability to file an aggregate report. 175 

Given the comments both for and against aggregation and the ease with which Staff can 

process the information in either form, the Commission provides the option to reporting 

companies. A company must indicate on Form No. 552 the affiliates for which it is 

reporting. If an affiliate or subsidiary holds a blanket certificate pursuant to § 284.284 or 

§ 284.402, each affiliate must report separately that it has such a certificate. Similarly, if 

an affiliate reports transactions to price index publishers, it must report so separately. 

98. By contrast, asset managers may not report aggregated information for their 

customers in Form No. 552. Several commenters sought clarification on the reporting 

obligations of asset managers.176 It is unlikely that transactions between asset managers 

and their clients would be used to create price indices, although such transactions may 

use price indices. Given the variety and diversity of services available from asset 

managers, and the interest of the Commission in tracking the amount of wholesale natural 

gas activity that both creates and relies on spot price indices, information about the use of 

price indices would be lost if such aggregation were permitted. 

 175EPSA Comments at 7-8; Calpine Comments at 4-5; NGSA Comments at 15. 

176AGA Comments at 3; Duke Energy Ohio, Inc. at 8-9. 
Docket No. RM07-10-000 - 68 - 

5. Reportable Volumes Based on Contracted Delivery

99. Unlike in the NOPR, Form No. 552 now requires reporting based on date of 

contracted delivery and not date of execution. Although there were no comments on this 

issue, in Staff’s experience, for many market participants, this approach may also 

simplify collection of data by permitting use of more direct accounting information. The 

Commission’s goal in obtaining data is to evaluate the creation and use of price 

information in the market, specifically the creation and use of spot price indices. Because 

wholesale natural gas price indices are based on fixed-priced trading for next-day or nextmonth delivery, delivery dates for the transactions of particular interest will not differ by 

more than a month from execution date. Consequently, reporting transactions by delivery 

date gives a sufficiently accurate picture of the use of price indices and how well price 

indices reflect fixed-priced transactions. Even though not pointed out in comments, the 

trade-off of some information lost for what is likely to be much simpler gathering of 

information by respondents is a reasonable one. 

6. Eliminate Reporting Numbers of Transactions

100. In another change from the NOPR, Form No. 552 does not require market 

participants to report the number of their transactions. Although this part of the proposal 

did not prompt comments, this change streamlines the form and reduces the burden of 

reporting without significantly reducing the value of the information. Volume 

information is more relevant for monitoring the amount of market activity used in 
Docket No. RM07-10-000 - 69 - 

creating price indices and using those indices. On reflection, the number of transactions 

is not needed to obtain greater transparency of the price formation process, consequently 

Form No. 552 does not include it. 

7. Conform Reporting Definitions to Those Used By Price Index 

Publishers

101. In several other respects, the reported information requested on the final Form No. 

552 differs from the information on the form proposed in the NOPR. In response to the 

comments of Platts177 as supported by APGA178 and AGA,179 Form No. 552 distinguishes 

more directly those fixed-priced transactions that are reportable to price index publishers 

from those that are not. Platts’ expressed concern that information collected from the 

proposed form would not effectively show the ratio of market activity that forms index 

prices to the market activity eligible to form index prices.180 As proposed in the NOPR, 

all next-month and next-day fixed price transactions would have been reported, instead of 

only those transactions that were actually eligible for inclusion in price indices. The 

changes in the final Form No. 552 should allow the Commission, market participants and 

the public to assess in a more focused way the amount of fixed price transactions that 

 177Platts Comments at 4, 5 & 7. 

178APGA Reply Comments at 1 & 3. 

179AGA Reply Comments at 7. 

180Platts Comments at 4-7 
Docket No. RM07-10-000 - 70 - 

contribute to the formation of price indices. In effect, the change allows a more precise 

calculation of the proportion of those transactions that could be reported to price 

publishers to those that are reported to them. 

102. To implement this change, a market participant must categorize certain volumes 

by whether the transaction was made at a “reportable location” regardless of whether the 

transaction was actually reported to a price index publisher. As stated on Form No. 552, 

a “reportable location” transaction is “a location (hubs, pipelines, regions, etc.) where 

‘Price Index Publishers’ collect ‘Fixed Price’ information for transactions with ‘NextDay’ or ‘Next-Month Delivery’ obligations, and produce index prices.” As these 

locations may change over time, Commission Staff will maintain a list of current 

“Reportable Locations” for each price index publisher on the Commission website at 

http://www.ferc.gov/docs-filing/eforms.asp#552. This information will allow a market 

participant to determine whether a transaction should be classified on Form No. 552 as a 

reportable transaction, i.e., one made at a reportable location. Commission Staff will list 

the price index publishers and the index price points no later than December 20 of the 

year previous to the report year. The first annual report will be due in 2009 for 

transactions delivered in 2008. 

103. Although generally supportive of making a distinction based on whether a 

transaction is reportable, APGA raised the concern that a market participant that does not 

report transactions to price index publishers will not easily understand which transactions 
Docket No. RM07-10-000 - 71 - 

are reportable.181 To address this concern, Form No. 552 provides more information 

regarding these distinctions than the form proposed in the NOPR. In particular, Form 

No. 552 asks for transactions with particular price and term characteristics (i.e., fixedpriced transactions for next-day or next-month delivery) at reportable locations. To 

provide a common understanding of reportable locations, the Commission Staff will 

maintain a list of current “Reportable Locations” with links to “Price Index Publishers” 

descriptions of their processes for receiving price information and publishing indices on 

the ferc.gov website at http://www.ferc.gov/docs-filing/eforms.asp#552. 

104. In addition, the Commission believes that appropriately reporting those 

transactions needed to establish wholesale natural gas market prices represents a 

significant public good. The Commission believes that a market participant, should 

consider reporting in a responsible way, and to do so must become aware of which of its 

transactions are reportable. The burden imposed on market participants to understand 

and distinguish its reportable from its non-reportable transactions is easily balanced by 

the benefits of improving public knowledge of how much market activity, though 

reportable, is not reported. The benefits accrue to the Commission and all market 

participants, who will be able to evaluate the usefulness of the price indices better. 

 181APGA Reply Comments at 2. 
Docket No. RM07-10-000 - 72 - 

8. Filing Date

105. Unlike in the NOPR, Form No. 552 will have a filing deadline of May 1 in the 

year after the reporting year. In this regard, the Commission agrees with the commenters 

who sought more time for filing than permitted by the February 15 deadline proposed in 

the NOPR.182 Because the data used for the form would come from the accounting and 

other official records of the market participants reporting, the response to Form No. 552 

must be coordinated with a variety of other regular annual financial and regulatory 

reports. May 1 was the latest filing date recommended in comments. Given the 

aggregate nature of the data, a time lag of four months from the reporting year should 

keep the information timely while providing market participants the time needed to 

coordinate a new regulatory filing with other obligations. 

E. Clarification of Other Reporting Issues

106. Several commenters requested clarification as to reportable volumes. The 

Commission will address these in turn, first those that must be reported and then those 

that do not need to be reported. 

1. Reportable Volumes

107. Interstate pipelines must report sale and purchase volumes related to cash-outs, 

imbalance makeups and operations. INGAA advocated that transactions associated with 

 182MSCG Comments at 9-10; Statoil Comments at 6-7; AGA Comments at 4; 

NGSA Comments at 15-16. 
Docket No. RM07-10-000 - 73 - 

cash-out and operations be excluded from Form No. 552 because similar information is 

available from Form No. 2 and from pipeline electronic bulletin boards (EBBs), and the 

volumes used are not available for trading.183 Similarly, Shell indicated that imbalance 

makeup volumes should be excluded.184 The Commission finds these commenters’ 

views unpersuasive. The partial availability of information on Form No. 2 submissions 

and through EBBs does not provide a complete view of that information in an assessment 

of wholesale natural gas market activity. In addition, while it is true that volumes of sales 

and purchases related to pipeline cash-out and operations are unlikely to be used to create 

price indices, such sales and purchases do use price indices as a way of transferring value 

among market participants. Consequently, the information is useful in assessing how 

spot prices are being used commercially in the nation. 

108. Market participants must include on Form No. 552 sale and purchase volumes 

attributable to royalty-in-kind transactions, gas provided for processing such as plant 

thermal reduction, and purchases and sales related to the production and gathering 

function. Shell advocated excluding these transactions from reporting.185 While these 

transactions may not affect the formation of price indices in wholesale markets, these 

 183INGAA Comments at 9. 

184Shell Comments at 8. 

185Shell Comments at 8. 
Docket No. RM07-10-000 - 74 - 

transactions often make use of price indices. Again, to the extent that transfers of value 

take place based on price indices, it is important that the Commission and other market 

observers be able to understand the extent of that transfer and its dependency on price 

indices as well. 

109. NGSA further sought clarification regarding transactions related to export for reimport.186 The sale of these volumes, assuming they could be identified, has an effect on 

overall wholesale markets and could, potentially, either help create or make use of price 

indices, consequently they should be reported. If such transactions take place among 

affiliates, they should be excluded (as explained below). 

2. Non-Reportable Volumes

110. The instructions to Form No. 552 now explicitly exclude volumes due to 

transactions among affiliates. Several commenters emphasized the importance of 

excluding volumes transacted among affiliates.187 A transaction between affiliates is not 

part of the price formation process in wholesale natural gas markets. 

111. Market participants may not include any type of financially-settled transaction on 

Form No. 552. However, transactions with physical delivery obligations must be 

reported – whether those transactions actually continued through delivery or not. When 

 186Id.

187See, e.g., Shell Comments at 8; NGSA Comments at 15. 
Docket No. RM07-10-000 - 75 - 

the physical transaction was executed, it may have either contributed to or used spot 

market price information regardless of its later disposition. In other words, sales or 

purchase obligations that were “booked out” must be included. The Commission intends 

“physical natural gas transaction” to mean a sale or purchase of natural gas with an 

obligation to deliver or receive physically, even if the natural gas is not physically 

transferred due to some offsetting or countervailing trade. Thus, even if the transaction 

does not go to physical delivery, it would still be included as a physical transaction. 

112. In response to NGSA, 188 the Commission clarifies that a market participant should 

not include volumes of imported LNG traded prior to regasification. LNG traded prior to 

regasification is not wholesale natural gas, though it is a source of natural gas through 

regasification itself. NGSA further sought clarification regarding natural gas exports 

from LNG liquefaction facilities.189 LNG traded after liquefaction is also not wholesale 

natural gas, consequently a market participant must exclude such volumes. 

113. Unlike in the NOPR, Form No. 552 no longer requests information on NYMEX 

contracts that go to physical delivery because the purpose of the form is to focus on 

fixed-priced spot transactions and how they are used. Further, information attributable to 

such contracts is available from NYMEX. Consequently, to reduce the burden on market 

 188NGSA Comments at 15. 

189Id. 
Docket No. RM07-10-000 - 76 - 

participants, this instruction has been removed and a market participant may not include 

volume information related to physically-settled future contracts. 

F. Other Issues Raised By Commenters

1. Safe Harbor Policy

114. Many commenters requested a “safe harbor” for reporting. 190 The Commission 

set forth a “safe harbor policy” provision in the Policy Statement for voluntary reporting 

to price index publishers.191 As requested by commenters, the Commission reiterates that 

it does not intend to prosecute or penalize parties for inadvertent errors in reporting. The 

Commission’s goal in setting forth the reporting requirement is to obtain information for 

the evaluation of price indices; it is not to penalize good faith efforts at compliance. 

However, in contrast to the voluntary reporting to price index publishers, the annual 

reporting requirement for Form No. 552 is mandatory for certain market participants. 

The Commission will focus any enforcement efforts on entities that violate good faith 

standards, including instances of intentional submission of false, incomplete or 

misleading information to the Commission, of failure to report in the first instance, or of 

failure to exercise due diligence in compiling and reporting data. 

 190AGA Comments at 6-7; NGSA Comments at 16-17; PG&E Comments at 6; 

Suez Energy North America, Inc. Comments at 10-12. 

191 Policy Statement at P 37. 
Docket No. RM07-10-000 - 77 - 

2. Mandatory Reporting of Fixed-Priced Transactions 

115. Several commenters called for mandatory reporting of individual, fixed-priced 

transactions.192 However, the Commission will not require mandatory reporting of fixedpriced transactions to price index publishers at this time. Mandatory reporting would 

appear to provide additional benefits in that it could assist in determining whether the 

price indices are an accurate reflection of underlying fixed-priced trading. Market 

participants, state commissions, and the Commission could gain a clearer sense of the 

volume and number of natural gas transactions that form prices by location and duration. 

In the NOPR, the Commission acknowledged these benefits, but the Commission decided 

that mandatory reporting is not appropriate at this time, citing three reasons. We review 

those three reasons here. 

116. First, mandatory reporting of certain transactions would create an incentive for 

wholesale buyers and sellers to consider structuring transactions based on avoiding 

reporting requirements rather than simply on the economics of the transaction. Even very 

subtle shifts in the form of transactions could easily make them non-reportable in any 

pre-defined system. For instance, if the Commission required reporting of fixed-price, 

day-ahead transactions, market participants could create two-day transactions, achieving 

substantially the same economic result and avoiding reporting. 

 192See, e.g., APGA at 5-8.
Docket No. RM07-10-000 - 78 - 

117. Second, buyers and sellers might shift away from fixed-priced transactions to 

indexed-price transactions. Fixed-priced transactions could easily decrease to the point 

that indices that rely on them would no longer represent reliable indicators of the market. 

Such indices would likely become more volatile as they moved more in response to fewer 

transactions. 193 

118. Third, the Commission stated that broad availability of detailed transaction data 

might prove to be anticompetitive.194

119. In its comments, APGA disputed the three reasons asserted by the Commission in 

the NOPR. It discounts the first reason asserted that mandatory reporting creates an 

incentive to structure transactions to avoid reporting. APGA contended that the burden 

 193At the October 13, 2006 technical conference in this proceeding, several 

panelists raised similar concerns and advocated against mandatory price reporting. See, 

e.g., Tr. at 12-13 (Mr. Christopher Conway on behalf of Conoco-Phillips Gas and Power, 

the Natural Gas Supply Association, and the Independent Producers Association of 

America) (asserting that mandatory price reporting could drive market participants away 

from reportable transactions, thereby, possibly reducing liquidity); Tr. at 35-36, 38-39 

(Mr. Alex Strawn on behalf of the Process Gas Consumers Group) (asserting that 

mandatory reporting of fixed price transactions would drive market participants to use 

index-price transactions, thereby, reducing liquidity); Comments of Independent 

Petroleum Association of America, at p. 3, Transparency Provisions of the Energy Policy 

Act, Docket No. AD06-11-000 (filed Nov. 1, 2006) (mandatory reporting would push 

market participants away from reportable transactions and cause them to do more indexprice transactions); Comments of Natural Gas Supply Association, Transparency 

Provisions of the Energy Policy Act, Docket No. AD06-11-000 (filed Nov. 1, 2006) 

(similar). 

194 NOPR at P 60. 
Docket No. RM07-10-000 - 79 - 

of mandatory reporting is not so great as to cause a significant number of market 

participants “to change the way they do business.”195 APGA did not deny the existence 

of such an incentive and the Commission does not wish to create such an incentive. This 

is particularly so given that it would be difficult to detect whether an entity was acting on 

such an incentive and, thereby, determine what effect this incentive had on reporting of 

transactions. In discounting the assertion, APGA also contended that the Commission is 

sufficiently creative to frame its reporting requirement to overcome those that might seek 

to avoid the reporting requirement. The Commission is not as confident. Commission 

Staff cannot monitor activity so closely as to be aware of every attempt to evade the 

Commission’s annual reporting requirement. Additionally, because market practices 

change over time, trying to promulgate rules to account for constantly changing market 

dynamics would not only place a significant demand on Commission resources, but the 

level of interaction could easily interfere in the healthy, continuing development of the 

markets themselves. 

120. APGA also disputed that mandatory price reporting would cause entities to switch 

from fixed-priced transactions to index-priced transactions because there is little burden 

to such reporting and those that would switch would not have been reporting to price 

indices anyway. The Commission does not share APGA’s confidence that mandating 

 195APGA Comments at 6. 
Docket No. RM07-10-000 - 80 - 

price reporting would not cause such switching. The Commission remains concerned 

about the liquidity of the fixed-priced, next-day and next-month wholesale natural gas 

markets, and would prefer to see much more activity in these price-generating markets. 

Any reluctance to actively trade fixed-priced transactions could affect liquidity in these 

crucial markets. 

121. APGA disputes the assertion in the NOPR that mandatory price reporting could 

lead to the potential collusion or anticompetitive behavior because mandatory price 

reporting would make public detailed transaction data. The Commission’s concern 

would be dependent on the exact nature of the mandatory price reporting process, though 

the Commission acknowledges that simply mandating reporting to price index publishers 

would not, given historical practice, put competitive information at risk. 

122. The annual reporting requirement set forth in this final rule can provide significant 

insight into the formation and use of price indices and how they reflect underlying fixedpriced trading. Given these benefits, at far lower costs in time and effort, the 

Commission continues to believe mandatory reporting of fixed-priced transactions is not 

appropriate at this time. 

3. Effects on Trade Publishers

123. In opposing the annual reporting requirement, MSCG contended that the 

requirement imposes a burden on market participants simply to benefit commercial trade 

publishers. As discussed above, the transparency benefits justify the burdens imposed by 
Docket No. RM07-10-000 - 81 - 

the annual reporting requirement. The Commission acknowledges that the annual 

reporting requirement could benefit commercial trade publishers, but disagrees that this is 

a drawback. Indeed, the comment ignores the fact that commercial trade publishers are 

the most significant source of market price information in U.S. wholesale natural gas 

markets. The information they develop is used by Commission Staff to monitor market 

activity, and more significantly, buyers and sellers interested in access to market prices. 

Acknowledging this, Congress specifically directed the Commission in prescribing 

transparency rules to “rely on [existing price] publishers and [trade processing] services 

to the maximum extent possible.”196

4. Information Collection Burden

124. NEM argued that market participants’ data is not currently stored in a format that 

could be used to fill out the proposed form, and, as a result, market participants would 

need to develop ancillary information technology systems to store such data at significant 

cost.197 NEM also stated that although the reporting proposal requires annual reporting, 

data collection would be needed daily, which would be costly. In requiring annual 

aggregated reporting of a limited set of transactions, the Commission intends that each 

market participant would have the data necessary to complete Form No. 552 in the course 

 196Section 23(a)(4) of the Natural Gas Act; 15 U.S.C. 717t-2(a)(4) (2000 & Supp. 

V 2005). 

197 NEM Comments at 6-7. 
Docket No. RM07-10-000 - 82 - 

of its business operations, for instance, in the course of preparing year-end aggregations 

for management, accounting and shareholder reporting purposes. The information 

needed to complete Form No. 552 is information that can be extracted from the market 

participant’s book of accounts that it would already have developed as part of its normal 

business operations. If a market participant buys or sells natural gas under complex 

arrangements, then it is likely to have an accounting system to manage the complexity 

and sort out the categories of purchases and sales. The Commission bases its estimated 

cost burden on a market participant adapting existing information to the standard format 

for Form No. 552 and submitting the form annually. On that basis, the Commission will 

retain its estimate of the cost burden as set forth in the NOPR. This estimate does not 

include the regulatory and compliance costs attributable to reporting as those costs are 

part of the overhead that market participants bear as part of their participation in 

Commission-regulated markets. Although Sequent asserted that asset managers would 

have to renegotiate contracts to provide for the annual reporting requirement, the 

Commission considers it likely that such asset management agreements already require 

collection of the transactions executed which could be used to complete Form No. 552. 

VI. Information Collection Statement

125. The Office of Management and Budget (OMB) regulations require that OMB 

approve certain reporting, record keeping, and public disclosure (collections of 
Docket No. RM07-10-000 - 83 - 

information) imposed by an agency.198 Pursuant to OMB regulations, the Commission 

will provide notice of its proposed information collections to OMB for review under 

section 3507(d) of the Paperwork Reduction Act of 1995.199

126. The Commission identifies the information provided under Part 260 as contained 

in FERC No. Form 552. The Commission solicited comments on the need for this 

information, whether the information would provide useful transparency information, 

ways to enhance the quality, utility, and clarity of the information to be collected, and any 

suggested methods for minimizing respondents’ burden. Where commenters raised 

concerns that information collection requirements would be burdensome to implement, 

the Commission has addressed those concerns elsewhere in the rule. 

127. The Commission estimates the burden for complying with the final rule as 

follows: 

Data 

Collection 

No. Of 

Respondents 

No. of 

Responses 

per 

Respondent 

Estimated 

Annual 

Burden 

Hours per 

Respondent 

Total 

Annual 

Hours For 

All 

Respondents 

Estimated 

Start-Up 

Burden Per 

Respondent 

Part 260 

FERC-552 

 

Annual 

Reporting 

Requirement 

 1,500 1 per year 4 hours 6,000 40 hours 

 1985 CFR 1320.11. 

19944 U.S.C. 3507(d). 
Docket No. RM07-10-000 - 84 - 

Information Collection Costs: The average annualized cost for each respondent is 

projected to be the following: 

 Annualized 

Capital/Startup Costs 

(10 year amortization)

Annual Costs Annualized Costs 

Total 

FERC-552 

Annual 

 Reporting Requirement 

$400 $400 $800 

Title: FERC- 552 

Action: Proposed Information Filing 

OMB Control No: 1902-0242 

Respondents: Business or other for profit. 

Frequency of Responses: Annually. 

Necessity of the Information: The annual filing of transaction information by market 

participants is necessary to provide information regarding the size of the physical natural 

gas market, the use of the natural gas spot markets and the use of fixed- and indexedprice transactions. 

128. Internal Review: The Commission has reviewed the requirements pertaining to 

natural gas market participants and determined they are necessary to provide price and 

availability information regarding the sale of natural gas in interstate markets. 

129. Interested persons may obtain information on the annual reporting requirements by 

contacting: Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, 
Docket No. RM07-10-000 - 85 - 

D.C. 20426, [Attention: Michael Miller, Office of the Chief Information Officer], phone: 

(202) 502-8415, fax: (202) 208-2425, e-mail: Michael.Miller@ferc.gov. Comments on 

the requirements of the final rule also may be sent to the Office of Information and 

Regulatory Affairs, Office of Management and Budget, Washington, D.C. 20503 

[Attention: Desk Officer for the Federal Energy Regulatory Commission]. 

130. For submitting comments concerning the collections of information and the 

associated burden estimates, please send your comments to the contact listed above and 

to the Office of Information and Regulatory Affairs, Office of Management and Budget, 

725 17th Street, N.W., Washington, D.C. 20503 Attention: Desk Officer for the Federal 

Energy Regulatory Commission, phone (202) 395-3122, fax: (202) 395-7285. Due to 

security concerns, comments should be sent electronically to the following e-mail 

address: oira_submission@omb.eop.gov. Please reference the docket number of this 

rulemaking in your submission. 

VII. Environmental Analysis

131. The Commission is required to prepare an Environmental Assessment or an 

Environmental Impact Statement for any action that may have a significant adverse effect 

on the human environment.200 The actions taken here fall within categorical exclusions 

in the Commission’s regulations for information gathering, analysis, and dissemination, 

 200Order No. 486, Regulations Implementing the National Environmental Policy 

Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs, ¶ 30,783 (1987). 
Docket No. RM07-10-000 - 86 - 

and for sales, exchange, and transportation of natural gas that requires no construction of 

facilities.201 Therefore, an environmental assessment is unnecessary and has not been 

prepared in this rulemaking. 

VIII. Regulatory Flexibility Act

132. The Regulatory Flexibility Act of 1980 (RFA)202 generally requires a description 

and analysis of final rules that will have significant economic impact on a substantial 

number of small entities. The RFA requires consideration of regulatory alternatives that 

accomplish the stated objectives of a proposed rule and that minimize any significant 

economic impact on such entities. The RFA does not, however, mandate any particular 

outcome in a rulemaking. At a minimum, agencies are to consider the following 

alternatives: establishment of different compliance or reporting requirements for small 

entities or timetables that take into account the resources available to small entities; 

clarification, consolidation, or simplification of compliance and reporting requirements 

for small entities; use of performance rather than design standards; and exemption for 

certain or all small entities from coverage of the rule, in whole or in part. 

133. The annual reporting requirement set forth in the final rule will not have a 

significant economic impact on a substantial number of small entities. The requirement 

 20118 CFR 380.4(a)(5) & (a)(27). 

2025 U.S.C. 601-612. 
Docket No. RM07-10-000 - 87 - 

for annual reporting of physical natural gas transactions will have minimal impact on 

small entities. By incorporating a de minimis exemption into the regulations, the 

Commission has reduced the number of small entities subject to the requirements: 

de minimis entities without blanket sales certificates will not be required to report. This 

reporting requirement will affect small entities but the burden on them will be minimal. 

For each entity, small or otherwise, that is required to comply with the annual reporting 

requirement, the Commission estimates that the compliance would require a one-time 

cost of approximately $4,000 and an annual cost thereafter of $400. Although some costs 

would increase for market participants with a greater number of transactions, we expect 

that that increase would be likely offset because such entities would have already 

compiled information regarding their transactions in the aggregate. This amount is not a 

significant burden on small entities. The de minimis exemption provides a regulatory 

alternative that will reduce the economic impact on certain small entities from coverage 

of the rule. Accordingly, the Commission certifies that the final rule will not have a 

significant economic impact on a substantial number of small entities. 

IX. Document Availability

134. In addition to publishing the full text of this document in the Federal Register, the 

Commission provides all interested persons an opportunity to view and/or print the 

contents of this document via the Internet through FERC's Home Page 

(http://www.ferc.gov) and in FERC's Public Reference Room during normal business 
Docket No. RM07-10-000 - 88 - 

hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, N.E., Room 2A, 

Washington D.C. 20426. 

135. From FERC's Home Page on the Internet, this information is available on 

eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft 

Word format for viewing, printing, and/or downloading. To access this document in 

eLibrary, type the docket number excluding the last three digits of this document in the 

docket number field. 

136. User assistance is available for eLibrary and the FERC’s website during normal 

business hours from FERC Online Support at 202-502-6652 (toll free at 1-866-208-3676) 

or email at ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-

8371, TTY (202)502-8659. E-mail the Public Reference Room at 

public.referenceroom@ferc.gov. 

X. Effective Date and Congressional Notification

137. These regulations are effective [Insert date 30 days after publication in the 

FEDERAL REGISTER]. The Commission has determined, with the concurrence of the 

Administrator of the Office of Information and Regulatory Affairs of OMB, that this rule 

is not a “major rule” as defined in section 351 of the Small Business Regulatory 

Enforcement Fairness Act of 1996. The Commission will submit the final rule to both 

houses of Congress and to the General Accountability Office. 
Docket No. RM07-10-000 - 89 - 

List of subjects

18 CFR Part 260

Natural gas; Reporting and recordkeeping requirements. 

18 CFR Part 284

Continental shelf; Natural gas; Reporting and recordkeeping requirements.

18 CFR Part 385

Administrative practice and procedure; Electric power; Penalties; Pipelines; Reporting 

and recordkeeping requirements.

By the Commission. 

 

( S E A L ) 

Kimberly D. Bose, 

 Secretary. 

 

 

 
Docket No. RM07-10-000 - 90 - 

 For the reasons stated in the preamble, the Federal Energy Regulatory 

Commission, amends 18 CFR Chapter I as follows. 

PART 260 – STATEMENTS AND REPORTS (SCHEDULES)

1. The authority citation for part 260 continues to read as follows: 

Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352. 

2. Section 260.401 is added to read as follows: 

§ 260.401 FERC Form No. 552, Annual Report of Natural Gas Transactions. 

(a) Prescription. The annual reporting report for natural gas market 

participants, designated as FERC Form No. 552, is prescribed for the calendar year 

ending December 31, 2008 and each calendar year thereafter. 

(b) Filing requirements —(1) Who must file. Unless otherwise exempted or 

granted a waiver by Commission rule or order, each natural gas market participant, i.e., 

any buyer or seller that engaged in wholesale, physical natural gas transactions the 

previous calendar year, must prepare and file with the Commission a FERC Form No. 

552 pursuant to the definitions and general instructions set forth in that form. As a 

de minimis exemption, a natural gas market participant is exempt from this filing 

requirement if: 

(i) It does not hold a blanket sales certificate pursuant to § 284.402 of this 

chapter or a blanket unbundled sales certificate pursuant to § 284.284 of this chapter; and 

(ii) It engages either in wholesale, physical natural gas sales that amount to less 
Docket No. RM07-10-000 - 91 - 

than 2,200,000 MMBtus for the previous calendar year or wholesale physical natural gas 

purchases that amount to less than 2,200,000 MMBtus for the previous calendar year. 

(2) Form No. 552 must be filed as prescribed in § 385.2011 of this chapter as 

indicated in the General Instructions set out in the annual reporting form, and must be 

properly completed and verified. Each market participant must file Form No. 552 by 

May 1, 2009 for calendar year 2008 and by May 1 of each year thereafter for the previous 

calendar year. Each report must be prepared in conformance with the Commission’s 

software and guidance posted and available for downloading from the FERC Web site 

(http://www.ferc.gov). One copy of the report must be retained by the respondent in its 

files. 

PART 284 – CERTAIN SALES AND TRANSPORATION OF NATURAL GAS 

UNDER THE NATURAL GAS POLICY ACT OF 1978 AND RELATED 

AUTHORITIES

3. The authority citation for part 284 continues to read as follows: 

Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352; 43 U.S.C. 

1331-1356. 

4. In § 284.288, paragraph (a) is revised to read as follows: 

§ 284.288 Code of conduct for unbundled sales service.

(a) To the extent Seller engages in reporting of transactions to publishers of 

electricity or natural gas indices, Seller must provide accurate and factual information, 

and not knowingly submit false or misleading information or omit material information to 
Docket No. RM07-10-000 - 92 - 

any such publisher, by reporting its transactions in a manner consistent with the 

procedures set forth in the Policy Statement on Natural Gas and Electric Price Indices, 

issued by the Commission in Docket No. PL03–3–000 and any clarifications thereto. 

Seller must notify the Commission as part of its FERC Form No. 552 annual reporting 

requirement in § 260.401 of this chapter whether it reports its transactions to publishers 

of electricity and natural gas indices. In addition, Seller must adhere to any other 

standards and requirements for price reporting as the Commission may order. 

* * * * * 

5. In § 284.403, paragraph (a) is revised to read as follows: 

§ 284.403 Code of conduct for persons holding blanket marketing certificates.

(a) To the extent Seller engages in reporting of transactions to publishers of 

electricity or natural gas indices, Seller must provide accurate and factual information, 

and not knowingly submit false or misleading information or omit material information to 

any such publisher, by reporting its transactions in a manner consistent with the 

procedures set forth in the Policy Statement on Natural Gas and Electric Price Indices, 

issued by the Commission in Docket No. PL03–3–000 and any clarifications thereto. 

Seller must notify the Commission as part of its FERC Form No. 552 annual reporting 

requirement in § 260.401 of this chapter whether it reports its transactions to publishers 

of electricity and natural gas indices. In addition, must shall adhere to any other 

standards and requirements for price reporting as the Commission may order. 
Docket No. RM07-10-000 - 93 - 

* * * * * 

PART 385—RULES OF PRACTICE AND PROCEDURE 

6. The authority citation for Part 385 continues to read as follows: 

Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16 U.S.C. 791a825v, 2601-2645; 28 U.S.C. 2461; 31 U.S.C. 3701, 9701; 42 U.S.C. 7101-7352, 16441, 

16451-16463; 49 U.S.C. 60502; 49 App. U.S.C. 1-85 (1988). 

7. In § 385.2011, paragraph (a)(11) is added to read as follows: 

§ 385.2011 Procedures for filing in electronic media (Rule 2011). 

 (a) * * * 

(11) FERC Form No. 552, Annual Report of Natural Gas Transactions.
Docket No. RM07-10-000 - 94 - 

Note: The following appendix will not be published in the Code of Federal Regulations. 

Appendix A to Final Rule: 
Docket No. RM07-10-000 - 95 - 

 Form No. 552 

 OMB No. 1902-0242 

 Expires (mm/dd/yyyy)

FERC TRANSACTION REPORT 

FERC FORM No. 552: Annual Report of 

Natural Gas Transactions 

These reports are mandatory under the Natural Gas Act, Section 23(a)(2), and 18 CFR Parts 260.401. Failure to 

report may result in criminal fines, civil penalties, and other sanctions as provided by law. The Federal Energy 

Regulatory Commission does not consider these reports to be of a confidential nature. 

Exact Legal Name of Respondent (Company) Year of Report 

End of 

FERC FORM No. 552 (New) 

THIS FILING IS 

Item 1: □ An Initial (Original) Submission OR □ Resubmission No. ___ 
Docket No. RM07-10-000 - 96 - 

INSTRUCTIONS FOR FILING THE FERC FORM NO. 552 

GENERAL INFORMATION 

I Purpose 

 FERC Form No. 552 collects transactional information from natural gas market participants. 

The filing of this information is necessary to provide information regarding the size of the physical 

gas market, the use of the natural spot markets, and the use of fixed and index price transactions. 

This form is considered to be a non-confidential public use form. 

II. Who Must Submit 

 Wholesale natural gas buyers and sellers must fill out the form annually if they make use of a 

blanket sales certificate under § 284.402 or § 284.284 or if their natural gas purchases or sales were 

greater than 2.2 million (2,200,000) MMBtus in the reporting year. 

 If a natural gas market participant is required to fill out Form No. 552 because it makes use of a 

blanket sales certificate under § 284.402 or § 284.284, but its natural gas purchases and sales were 

each lower than 2.2 million (2,200,000) MMBtus in the reporting year, then it is not required to report 

the schedule of Form No. 552 that collects volumetric information. 

III. What and Where to Submit 

(a) Submit FERC Form No. 552 electronically through the submission software at 

http://www.ferc.gov/docs-filing/eforms.asp#552.

 

(b) The Corporate Officer Certification must be submitted electronically as part of the FERC 

Form No. 552 filing. 

 (c) Users may obtain additional blank copies of FERC Form No. 552 for reference free of 

charge from: http://www.ferc.gov/docs‐filing/eforms.asp#552. Copies may also be 

obtained from the Public Reference and Files Maintenance Branch, Federal Energy 

Regulatory Commission, 888 First Street, NE, Room 2A, Washington, DC 20426 or by 

calling (202) 502-8371. 

IV. When to Submit: 

 

 The FERC Form No. 552 must be filed by May 1st of the year following the reporting year (18 

C.F.R. § 260.401). 

 V. Where to Send Comments on Public Reporting Burden. 

 The public reporting burden for the FERC Form No. 552 collection of information is 

estimated to average 4 hours per response, including the time for reviewing instructions, 

searching existing data sources, gathering and maintaining the data-needed, and completing 

and reviewing the collection of information. This estimate was noted in the Notice of Purposed 

Rulemaking and in the Final Rule (RM07-10-000) and addressed by commenters. 
Docket No. RM07-10-000 - 97 - 

 Filers may send additional comments regarding these burden estimates or any aspect of 

these collections of information, including suggestions for reducing burden, to the Federal 

Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426 (Attention: 

Information Clearance Officer); and to the Office of Information and Regulatory Affairs, Office of 

Management and Budget, Washington, DC 20503 (Attention: Desk Officer for the Federal 

Energy Regulatory Commission). No person shall be subject to any penalty if any collection of 

information does not display a valid control number (44 U.S.C. § 3512 (a)). 

GENERAL INSTRUCTIONS

I. All respondents (i.e., wholesale natural gas buyers and sellers that make use of a blanket 

sales certificate under § 284.402 or § 284.284 or that purchase or sell more than 2.2 million 

(2,200,000) MMBtus in the reporting year) must identify themselves annually by filling-out the 

first part of Form No. 552. 

II. Aggregation across affiliates is permitted, though not required. If a respondent is aggregating 

volumes across affiliates, the respondent must fill in the “Schedule of Reporting Companies” 

which lists those affiliates and a separate “Price Index Reporting” schedule for each affiliate. 

III. Asset managers may not report aggregated information for their customers in Form No. 552. 

IV. Report all gas quantities in Trillion British Thermal Unit (TBtu) unless the schedule specifically 

requires the reporting in another unit of measurement. 

V. For reported volumes, enter whole numbers only, except where otherwise noted. 

VI. Report volumes of physical natural gas as explained in the definitions. 

VII. Complete each question fully and accurately, even if it has been answered in a previous 

report. Enter the word "None" where it truly and completely states the fact. 

VIII. Enter the month, day, and year for all dates. Use customary abbreviations. The "Date of 

Report" included in the header of each page is to be completed only for resubmissions 

(see IX. below). 

IX. For any resubmissions, submit the electronic filing using the form submission only. Please 

explain the reason for the resubmission in a footnote to the data field. 

X. Footnote and further explain as necessary. 

XI. Do not make references to reports of previous periods/years or to other reports in lieu of 

required entries, except as specifically authorized. 

XII. For further assistance in filling out Form No. 552, Commission staff will maintain a list of 

current Reportable Locations with links to Price Index Publishers’ descriptions of their 

processes for receiving price information and publishing indices on the ferc.gov website at 

http://www.ferc.gov/docs‐filing/eforms.asp#552.
Docket No. RM07-10-000 - 98 - 

DEFINITIONS 

 

I. Affiliate– An affiliate means a person who controls, is controlled by or is under common control with 

another person. 

II. Blanket Certificate – A blanket certificate means either (i) a blanket marketing certificate granted to a 

person that is not an interstate pipeline pursuant to 18 CFR § 284.402 or (ii) a blanket certificate for 

unbundled sales service granted to an interstate pipeline pursuant to 18 CFR § 284.284. 

III. Date of Report – The date the report is submitted to the Commission. 

IV. Fixed Price – A “Physical Natural Gas” price determined by agreement between buyer and seller 

and not benchmarked to any other source of information. For example, Physical Basis transactions 

that directly refer to futures prices, for the purpose of this form, are not “Fixed Price” transactions. 

V. Next-Day Delivery – Delivery of a transaction executed prior to NAESB nomination deadline 

(11:30am Central Prevailing Time) on one day for uniform physical delivery over the next pipeline 

day. Transactions done for Friday are usually for flow on Saturday, Sunday, and Monday inclusive. 

Trading patterns may vary in the case of holidays or the end of a month that occurs on a weekend. 

Commission staff will maintain links to “Price Index Publishers’” descriptions of their processes for 

receiving price information and publishing indices on the ferc.gov website at 

http://www.ferc.gov/docs‐filing/eforms.asp#552.

VI. Next-Month Delivery – Delivery of a transaction executed during the last five (5) business days of 

one month for uniform physical delivery over the next month. 

VII. Physical Natural Gas – Natural gas transactions that contain an obligation to deliver natural gas at a 

specified location and at a specified time, with the exception of physically-delivered futures 

contracts. It is not necessary that natural gas actually be delivered under the transactions, only that 

the delivery obligation existed in the agreement when executed. Certain Physical Natural Gas 

transactions may not remain in existence through the time of delivery because they were traded 

away or “booked out.” For purposes of this form, these transactions should be included whether 

they went to delivery or not. The Final Rule discusses a variety of particular instances. Among 

these, the following physical natural gas volumes should be included in volumetric data submitted in 

the Form No. 552: 

a. cash-out, imbalance makeup and operational volumes reported by pipelines; and 

b. volumes attributable to royalty-in-kind transactions, gas provided for processing such as plant 

thermal reduction, and purchases and sales related to the production and gathering function. 

The following physical natural gas volumes should be excluded in volumetric data submitted in the 

Form No. 552: 

a. sales to and purchases by end-users, 

b. sales or purchases outside the United States of America, 

c. transactions take place among affiliates, 
Docket No. RM07-10-000 - 99 - 

d. any type of financially-settled transaction, 

e. volumes traded in futures contracts, even those that go to physical delivery, and 

f. volumes of imported LNG traded prior to regasification and exported LNG traded after 

liquefaction. 

VIII. Price Index Publisher – Companies that report price indices for U.S. wholesale natural gas markets. 

The list of companies can change over time. Commission staff will maintain a list of relevant “Price 

Index Publishers” with links to their descriptions of their processes for receiving price information 

and publishing indices on the ferc.gov website at http://www.ferc.gov/docs‐

filing/eforms.asp#552.

IX. Prices that Refer to (Daily or Monthly) Price Indices – Prices for “Wholesale Natural Gas Purchases” 

or “Sales” that reference directly a daily or monthly index price published by a “Price Index 

Publisher” rather than a “Fixed Price” or a price that refers directly to some other benchmark. 

X. Quantity – Amount of purchases or sales expressed in units of energy “British Thermal Units” (Btu). 

One million BTUs (MMBtu) are, by definition, the same as one Dekatherm (Dth). A volume of one 

billion cubic feet (Bcf) of natural gas contains approximately one trillion Btus (TBtu or million 

MMBtu) of energy depending on the exact energy content of the natural gas. The quantities to be 

reported in the ”Purchase and Sales Information” schedule should be measured in TBtus. 

XI. Reportable Locations – Those locations (hubs, pipelines, regions, etc.) where “Price Index 

Publishers” collect “Fixed Price” information for transactions with “Next-Day” or “Next-Month 

Delivery” obligations, and produce index prices. These locations may change over time. 

Commission staff will maintain a list of current “Reportable Locations” with links to “Price Index 

Publishers” descriptions of their processes for receiving price information and publishing indices on 

the ferc.gov website at http://www.ferc.gov/docs‐filing/eforms.asp#552. 

XII. Reporting Company – The person, corporation, licensee, agency, authority, or other legal entity or 

instrumentality on whose behalf the report is being submitted by the “Respondent.” 

XIII. Respondent – The person, corporation, licensee, agency, authority, or other legal entity or 

instrumentality that is submitting the report either on its own behalf, or on behalf of itself and/or its 

affiliates. A Respondent may choose to either report for all its affiliates collectively, or may choose 

to have each of its affiliates report separately as their own “Respondent.” If reporting collectively, 

the reporting “Respondent” and must report for each “Affiliate” in the “Schedule of Reporting 

Companies” and the “Price Index Reporting Schedule,” and collectively for all its affiliates in the 

“Purchase and Sales Information” schedule. 

XIV. Wholesale Natural Gas Purchases – The “Quantity” of “Physical Natural Gas” purchased by the 

“Reporting Company” during the “Year of Report,” with the exception of certain futures contracts. 

Purchases by end users should be excluded. 

XV. Wholesale Natural Gas Sales – The “Quantity” of “Physical Natural Gas” sold by the “Reporting 

Company” during the “Year of Report” to customers that do not use all the natural gas they buy 

themselves under contracts with physical delivery obligations, with the exception of physicallydelivered futures contracts. Purchases by end users should be excluded. 
Docket No. RM07-10-000 - 100 - 

XVI. Year of Report – The calendar year for which the report is being submitted. 
Docket No. RM07-10-000 - 101 - 

ANNUAL REPORT OF NATURAL GAS TRANSACTIONS 

IDENTIFICATION OF RESPONDENT 

01 Exact Legal Name of Respondent 

 

02 Year of Report 

End of 

03 Previous Name and Date of Change (If name changed during year) 

04 Address of Principal Office at End of Year (Street, City, State, Zip Code) 

05 Name of Contact Person 06 Title of Contact Person 

07 Address of Contact Person (Street, City, State, Zip Code) 

08 Email Address of Contact Person 

09 Telephone of Contact Person, Including Area Code 10 This Report is: 

(1) □ An Original 

(2) □ A Resubmission 

11 Date of Report 

(MM,DD,YYYY) 

ANNUAL CORPORATE OFFICER CERTIFICATION 

The undersigned officer certifies that: 

I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are 

accurate and complete statements of the business affairs of the respondent. 

12 Name 13 Title 

14 Signature 15 Date Signed 

Title 18, U.S.C. 1001, makes it a crime for any person knowingly and willingly to make to any Agency or Department of the United 

States any false, fictitious or fraudulent statements as to any matter within its jurisdiction. 

FERC FORM NO. 552 (NEW) Page 1 
Docket No. RM07-10-000 - 102 - 

Name of Respondent* This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report* 

(Mo, Da, Yr) 

 / / 

Year/Period of Report* 

End of Year/Qtr

List of Schedules 

Enter in column (d) the terms “none,” “not applicable,” or “NA” as appropriate, where no information or amounts have been reported 

for certain pages. Omit pages where the responses are “none,” “not applicable,” or “NA.” 

Line 

No. 

Title of Schedule

(a) 

Reference 

Page No.

 

(b) 

Date Revised

 

(c) 

Remarks

 

(d) 

1 Schedule of Reporting Companies 3 

2 Price Index Reporting 4 

3 Purchases and Sales Information 5 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

Total 

FERC FORM NO. 552 (NEW) Page 2 
Docket No. RM07-10-000 - 103 - 

Name of Respondent* This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report* 

(Mo, Da, Yr) 

 / / 

Year/Period of Report* 

End of Year/Qtr

Schedule of Reporting Companies 

If the Respondent is reporting collectively for multiple affiliates*, list the exact legal name of those affiliate in this form. Respondent 

should complete the next schedule, Price Index Reporting, for each of these companies separately. Respondent should complete the 

“Purchase and Sales Information” schedule only once for these companies collectively. 

* An asterisk means that the previous term is explained in more detail in the definitions. 

 

Line 

No. 

List the Exact Legal Names of all Affiliates* Reported by Respondent* below 

(a) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

FERC FORM NO. 552 (NEW) Page 3 
Docket No. RM07-10-000 - 104 - 

Name of Respondent* This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report* 

(Mo, Da, Yr) 

 / / 

Year/Period of Report* 

End of Year

Name of Reporting Company* Reporting Company is: 

(1) ⁫ Same as Respondent 

(2)  An affiliate of Respondent (other affiliates reported separately) 

Price Index Reporting 

Even if the Respondent is reporting collectively for multiple affiliate, the Respondent still must complete this schedule for each of its 

affiliates separately. 

When answering yes/ no questions, to select yes enter 1 in the yes column and 0 in the no column of the appropriate row. To select no 

enter 1 in the no column and 0 in the yes column of the appropriate row. 

* An asterisk means that the previous term is explained in more detail in the definitions. 

Line 

No. 

Question 

(a) 

Yes 

(b) 

No 

(c) 

1 At any time during the report year, did the Reporting Company* operate under a Blanket Certificate*? 

2 Did the Reporting Company report any transaction information to price index publishers* during the report 

year*? 

 

3 If no on either lines 1 or 2, skip the question on line 4 and move to line 5. 

4 If yes on line 2, did the Reporting Company’s reporting comply with the regulations governing reporting to 

price index publishers pursuant to 18 CFR § 284.403? 

 

5 Were the Reporting Company’s* total wholesale natural gas purchases* greater than 2.2 TBtu for the Report 

Year*? 

 

6 Were the Reporting Company’s* total wholesale natural gas sales* greater than 2.2 TBtu delivered in the 

Report Year? 

 

7 If no on both lines 5 and 6, Reporting Company is not required to go to the next schedule and has completed 

Form No. 552. If yes on either line 5 or 6, Reporting Company is required to complete the next schedule 

FERC FORM NO. 552 (NEW) Page 4 
Docket No. RM07-10-000 - 105 - 

Name of Respondent* This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report* 

(Mo, Da, Yr) 

 / / 

Year/Period of Report* 

End of Year

Name of Reporting Company* Reporting Company is: 

(1) ⁫ Same as Respondent 

(2)  An affiliate of Respondent (other affiliates reported separately) 

Purchase and Sales Information 

If the Respondent is reporting collectively for multiple affiliates, the Respondent should complete this schedule for all of its affiliate 

companies collectively. 

* An asterisk means that the previous term is explained in more detail in the definitions. 

Line 

No. 

Item 

(a) 

Purchases 

(TBtu) 

(b) 

Sales 

(TBtu) 

(c) 

1 How much physical natural gas* did the Respondent buy and sell in the prior 

calendar year? 

 

2 Of the amounts reported on line 1, what quantities were contracted at fixed 

prices* for next-day delivery* at locations reportable* to publishers of nextday gas price indices*? 

 

3 Of the amounts reported on line 1, what quantities were contracted at prices 

that refer to* published next-day gas price indices? 

 

4 Of the amounts reported on line 1, what quantities were contracted at fixed 

prices for next-month delivery* at locations reportable (see definition) to 

publishers of next-month gas price indices? 

 

5 Of the amounts reported on line 1, what quantities were contracted at prices 

that refer to published next-month gas price indices? 

 

6 Of the amounts reported on line 1, what quantities were not contracted at 

fixed prices for next-day delivery nor fixed prices for next-month delivery at 

locations reportable to publishers of gas price indices, nor were they 

contracted at prices that refer to published next-day or next-month gas price 

indices? 

 

7 If there is a difference between Respondent’s purchases reported on line 6 and its purchases reported on line 1 less purchases 

on lines 2, 3, 4 and 5, please explain the difference in the space below. 

8 If there is a difference between Respondent’s sales reported on line 6 and its sales reported on line 1 less sales on lines 2, 3, 4 

and 5, please explain the difference in the space below. 

FERC FORM NO. 552 (NEW) Page 5