131 FERC ¶ 61,245 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Part 260 

[Docket No. RM07-9-003] 

Revisions to Forms, Statements, and Reporting Requirements for Natural Gas Pipelines 

(June 17, 2010) 

AGENCY: Federal Energy Regulatory Commission. 

ACTION: Notice of Proposed Rulemaking. 

SUMMARY: In this Notice of Proposed Rulemaking, the Federal Energy Regulatory 

Commission proposes to revise certain financial reporting forms required to be filed by 

natural gas companies (FERC Form Nos. 2, 2-A, and 3-Q) to include functionalized fuel 

data on pages 521a through 521d of those forms, and to include on those forms the 

amount of fuel waived, discounted or reduced as part of a negotiated rate agreement. We 

also propose to revise page 520 accordingly. 

DATES: Comments are due [insert date that is 60 days after publication in the 

FEDERAL REGISTER]. 

ADDRESSES: You may submit comments, identified by Docket No. RM07-9-003, by 

any of the following methods: 

 Agency Web Site: http://www.ferc.gov. Documents created electronically using 

word processing software should be filed in native applications or print-to-PDF 

format and not in a scanned format. 
Docket No. RM07-9-000 ii 

 Mail/Hand Delivery: Commenters unable to file comments electronically must 

mail or hand deliver an original and 14 copies of their comments to: Federal 

Energy Regulatory Commission, Office of the Secretary, 888 First Street, NE, 

Washington, DC 20426. 

FOR FURTHER INFORMATION CONTACT: 

Brian Holmes (Technical Information) 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street, NE, 

Washington, DC 20426 

Telephone: (202) 502-6008, E-mail: brian.holmes@ferc.gov. 

Robert Sheldon (Technical Information) 

Office of Energy Market Regulation 

Federal Energy Regulatory Commission 

888 First Street, NE, 

Washington, D.C. 20426 

Telephone: (202) 502-8672, E-mail: robert.sheldon@ferc.gov

Gary D. Cohen (Legal Information) 

Office of the General Counsel 

Federal Energy Regulatory Commission 

888 First Street, NE, 

Washington, DC 20426 

Telephone: (202) 502-8321, E-mail: gary.cohen@ferc.gov

SUPPLEMENTARY INFORMATION: 
UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Revisions to Forms, Statements, and Reporting 

Requirements for Natural Gas Pipelines 

Docket No. RM07-9-003 

NOTICE OF PROPOSED RULEMAKING 

(June 17, 2010) 

1. In response to a court remand1

 of Order Nos. 710 and 710-A,2 the Commission is 

granting a motion by the American Gas Association (AGA) requesting that the 

Commission issue a Notice of Proposed Rulemaking (Notice) proposing that the 

Commission revise FERC Form Nos. 2, 2-A, and 3-Q, to include functionalized fuel data 

on pages 521a through 521d of those forms, and to include on such forms the amount of 

fuel waived, discounted or reduced as part of a negotiated rate agreement. We also 

propose to revise page 520 accordingly. 

I. Background

2. In Order No. 710, the Commission revised its financial forms, statements, and 

reports for natural gas companies, contained in FERC Form Nos. 2, 2-A, and 3-Q to 

make the information reported in these forms more useful by updating them to reflect 

current market and cost information relevant to interstate natural gas pipelines and their 

customers. 

 1 American Gas Association v. FERC, 593 F.3d 14 (D.C. Cir. 2010). 

2 Revisions to Forms, Statements, and Reporting Requirements for Natural Gas 

Pipelines, Order No. 710, FERC Stats. & Regs. ¶ 31,267 (2008), order on reh’ g and 

clarification, Order No. 710-A, 123 FERC ¶ 61,278 (2008). 
Docket No. RM07-9-003 - 2 - 

 

3. Among the changes required by the Final Rule, the Commission adopted new 

schedules for Forms 2, 2-A, and 3-Q3

 and added page 520 (Gas Account-Natural Gas) to 

Form 3-Q4

 to report, in greater detail, the acquisition and disposition of shipper-supplied 

gas.5

 Order No. 710 requires pipelines to report: (1) the difference between the volume 

of gas received from shippers and the volume consumed in pipeline operations each 

month; (2) the disposition of any excess gas and the accounting recognition given to such 

disposition, including the basis of valuing the gas and the specific accounts charged or 

credited; and (3) the source of the gas used to meet any deficiency.6

 AGA expressed 

support for these additions to the forms, but argued that greater clarity could be achieved 

if the Commission “requires the information to be broken out by function (e.g., 

transportation, storage, gathering, etc.) and to include, by function, the amount of fuel 

that has been waived, discounted or reduced as part of a negotiated rate agreement.” 7

4. In response to AGA’s arguments, the Commission found that the information that 

AGA requested to be broken out by function (e.g., transportation, storage, gathering, etc.) 

3

 This new schedule reports: (1) the difference between the volume of gas 

received from shippers and the volume of gas consumed in pipeline operations each 

month; (2) the disposition of any excess and the accounting recognition given to such 

disposition, including the basis of valuing the gas and the specific accounts charged or 

credited; and (3) the source of gas used to meet any deficiency, including the accounting 

basis of the gas and the specific account(s) charged or credited. 

4

 Page 520 was added to provide more timely reporting of the quantity of natural 

gas received and delivered by the pipeline. 

5

 Order No. 710, P 13. 

6 Id. 

7 Id. P 15. 
Docket No. RM07-9-003 - 3 - 

 

is available in Form 2 at page 520.8

 The Commission explained that on page 520 (Gas 

Account), pipelines are required to provide detailed information regarding gas received 

and delivered by the pipeline, identified by function and account number.9

 

5. On rehearing, AGA argued, among other matters, that the fuel data would be more 

useful if such data were broken out by different pipeline functions, including 

transportation, storage, gathering, and exploration/production, and should include, by 

function, the amount of fuel waived, discounted or reduced as part of a negotiated rate 

agreement. 

6. In Order No. 710-A, the Commission addressed the various requests for rehearing 

and clarification of Order No. 710, including AGA’s, and denied AGA’s request to add 

additional detail to the fuel costs reported at pages 521a and 521b on the basis that some 

of the information sought by AGA, i.e., certain data broken out by function, are already 

available on page 520 of Form Nos. 2 and 2-A and because Order No. 710 also added 

page 520 to Form No. 3-Q.10 The Commission found that, while the detail sought by 

AGA might provide additional clarity with respect to fuel costs, the Commission did not 

believe its exclusion would preclude the Commission’s or customers’ ability to assess the 

justness and reasonableness of pipeline rates.11 The Commission also denied AGA’s 

request that pipelines provide information regarding the amount of fuel that a pipeline has 

8

 Order No. 710, P 16. 

9 Id.

10 Order No. 710-A, P 9-11. 

11 Id. P 10. 
Docket No. RM07-9-003 - 4 - 

waived, discounted or reduced as part of a negotiated rate agreement, deeming such 

information unnecessary and burdensome.12 Chairman (then Commissioner) Wellinghoff 

issued a partial dissent arguing that AGA’s proposals should have been adopted.13

7. Subsequently, AGA filed a petition for review in the United States Court of 

Appeals for the District of Columbia Circuit arguing that the Commission erred by not 

addressing the concerns raised by Chairman Wellinghoff in his partial dissent to Order 

No. 710-A. The court agreed and remanded the matter back to the Commission for 

further proceedings.14 

8. Following the court’s remand, AGA filed a motion requesting that the 

Commission issue a Notice proposing revisions to FERC Form Nos. 2, 2-A, and 3-Q, to 

add additional details as initially proposed by AGA in the rulemaking proceeding. 

Comments in support of AGA’s motion were filed by Kansas Corporation Commission 

and by Independent Oil & Gas Association of West Virginia, Inc. 

II. Discussion

9. In this Notice, the Commission addresses the concerns raised by AGA in its 

motion. In Order No. 710-A, the Commission found that the detail sought by AGA might 

provide additional clarity with respect to fuel costs, but decided, nonetheless, not to 

require the reporting of this information, based on concerns over the burden associated 

 12 Id. P 11. 

13 Id. at 62,708-9. 

14 593 F.3d at 21. 
Docket No. RM07-9-003 - 5 - 

 

with compliance with such a requirement.15 The Commission also declined to accept 

AGA’s proposal regarding reporting details about the amount of fuel that a pipeline has 

waived, discounted or reduced as part of a negotiated rate agreement, based on concerns 

that this information might not be significant and might not be readily available, as many 

pipelines do not periodically file to adjust fuel rates and may not keep records of this type 

of information.16

10. The court ruled that the Commission’s earlier findings did not discuss AGA’s 

argument that pages 520 and 521 of the forms work in tandem and unless the information 

provided on pages 521a and 521b is broken out by function, a shipper cannot match the 

revenues generated by the sale of excess fuel with the functionalized costs reported on 

page 520. Thus, our preliminary view is that the additional information proposed to be 

reported on pages 521a and 521b will allow the user to determine if there is a crosssubsidy, which is critical to assessing the justness and reasonableness of the pipeline’s 

fuel rates.17 

11. Moreover, as pointed out by AGA, while page 520 of the form provides certain 

fuel information by function, the information is not adequate to enable a form user to 

determine where on the pipeline system fuel costs are being incurred and how they are 

15 Order No. 710-A, P 10. 

16 Id. P 11. 

17 We note that our proposal renumbers page 521 as 521a, renumbers page 521a as 

521b, and adds two runover pages as 521c and 521d. The pages should line up with 521a 

on top of page 521b, with page 521c a continuation of page 521a and page 521d a 

continuation of page 521b. The references in this Notice to pages 521a and 521b assume 

the inclusion of pages 521c and 521d. 
Docket No. RM07-9-003 - 6 - 

being allocated. As stated in the Final Rule, page 520 of Form Nos. 2 and 2-A provides 

fuel losses by function (unaccounted for gas is broken out by function at lines 30-34). 

AGA argues that additional detail regarding fuel costs is required for pages 521a and 

521b to ensure that the Commission and pipeline customers have sufficient information 

required to assess the justness and reasonableness of pipeline rates. We agree and 

therefore propose to require that the fuel information be disaggregated by function to 

provide greater clarity with regard to fuel costs. The Commission believes that the 

availability of this information, reported by function, is consistent with our goal in the 

Final Rule of having sufficient information to allow the Commission and pipeline 

customers to assess the impact on pipeline rates of rising fuel costs. Thus, our proposal 

in this Notice includes the level of detail suggested by AGA and as explained and shown 

below, we propose to require additional information to be reported on pages 521a and 

521b of the forms. 

12. Specifically, we propose to revise pages 521a and 521b to provide more detailed 

information about the information that previously has been reported on page 520, Gas 

Account – Natural Gas. However, the functional category for 

production/extraction/processing that we are here proposing to add to page 521a and 

521b is additional information that has not previously been reported in page 520. 

Consequently, we propose to add a line on page 520 for Gas of Others Received for 

Production/Extraction/Processing (Accounts 490 and 491) and another line for Gas of 

Others Delivered for Production/Extraction/Processing (Accounts 490 and 491). This 
Docket No. RM07-9-003 - 7 - 

 

provides a bridge between the production/extraction/processing function on pages 521a, 

521b and 520. In addition, we propose to revise page 520, line 29 (current line 27) to 

read Other Deliveries and Gas Used for Other Operations. Again, this allows the 

reporting of gas used in operations with the detail reported in pages 521a and 521b. 

13. Finally, we propose to revise the heading on page 520 for Gas Unaccounted For to 

read Gas Losses and Gas Unaccounted For. Additionally, as we are here proposing to 

have more detailed information on fuel costs (broken down by function) reported on 

pages 521a and 521b, we are removing (as duplicative) the prior requirement to report 

information on fuel costs in a more summary fashion on page 520. 

14. AGA also requested the reporting of the amount of fuel by function that has been 

waived, discounted or reduced as part of a negotiated rate agreement. AGA argued that 

this information would enable pipeline customers to better determine if any inappropriate 

cross-subsidization is occurring. The Commission has a strict policy that existing 

shippers must not subsidize the negotiated rate program, and we agree that this additional 

information could be useful in identifying potential violations of that policy.18 Therefore, 

we propose that fuel costs and revenues associated with each type of rate structure (i.e., 

negotiated, discounted, or recourse) be broken down by function to provide better 

information with which to assess the justness and reasonableness of a pipeline’s fuel 

rates. 

18 See Alternative to Traditional Cost-of-Service Ratemaking for Natural Gas 

Pipelines; Regulations of Negotiated Transportation Services of Natural Gas Pipeline

(Alternative Rate Policy Statement), 74 FERC ¶ 61,076, at 61,242 (1996), and NorAm 

Gas Transmission Company, 77 FERC ¶ 61,011 (1996). 
Docket No. RM07-9-003 - 8 - 

15. We also are revisiting the earlier finding that information regarding the amount of 

fuel that a pipeline has waived, discounted or reduced as part of a negotiated rate 

agreement, may not be readily available. AGA argued that some pipeline maintain this 

information by function in order to change a fuel rate either in a tracking mechanism or in 

a future section 4 rate filing, and that such information is readily accessible. After further 

consideration of these arguments we have decided to propose the more detailed reporting 

of this information, as suggested by AGA, and estimate that the burden associated with 

this proposal is related solely to inputting the data in the Form Nos. 2, 2-A, and 3-Q and 

with this additional information we now propose to find that, in light of the usefulness of 

this information, this small increase in filing burden is justified. 

16. Thus, we propose in this Notice to revise the financial reporting forms required to 

be filed by natural gas companies (FERC Form Nos. 2, 2-A, and 3-Q) to include 

functionalized fuel data on pages 521a and 521b of those forms, and to include on such 

forms the amount of fuel waived, discounted or reduced as part of a negotiated rate 

agreement. Specifically, we propose to revise pages 521a and 521b to include the 

following: (1) expanding line 1 to separately reflect shipper supplied fuel by function, 

i.e., production/extraction/process, gathering, transmission, distribution, and storage; (2) 

expanding lines 2, 3, and 4 to separately list the volumes for each of these functions; (3) 

expanding the listing of volumes to include discounted, negotiated and recourse rates; (4) 

expanding line 5 to separately list the volumes for each of these functions; (5) expanding 

the reporting of dollar amounts to include amounts collected under discounted, negotiated 

and recourse rates; (6) requiring the reporting of volumes of gas (in dekatherms) not 

collected where the request for that gas has been waived or reduced under discounted or 
Docket No. RM07-9-003 - 9 - 

negotiated rates; and (7) directing filers (if the pipeline does not use a particular function) 

to enter a zero for that field. 

17. In comments to the notice of proposed rulemaking in this proceeding issued on 

September 20, 2007,19 the Interstate Natural Gas Association of America commented that 

the Commission should revise the reporting requirement for pages 521a and 521b to have 

these data reported on a quarterly basis, rather than a monthly basis. While this 

suggestion is not part of the Commission’s proposal in this Notice, we nonetheless invite 

comments on this suggestion and reserve decision, until the final rule, as to which of 

these options will be adopted in our final rule. 

III. Information Collection Statement

18. The following collections of information contained in this proposed rule have been 

submitted to the Office of Management and Budget for review under section 3507(d) of 

the Paperwork Reduction Act of 1995.20 The Commission solicits comments on the 

Commission’s need for this information, whether the information will have practical 

utility, the accuracy of the burden estimates, ways to enhance the quality, utility and 

clarity of the information to be collected or retained, and any suggested methods for 

minimizing respondents’ burden, including the use of automated information techniques. 

 19 Revisions to Forms, Statements, and Reporting Requirements for Natural Gas 

Pipelines, Notice of Proposed Rulemaking, FERC Stats. & Regs. ¶ 32,623 (2007). 

20 44 U.S.C. 3507(d). 
Docket No. RM07-9-003 - 10 - 

Estimated Annual Burden: 

19. The Commission estimates that on average it will take respondents five additional 

hours per collection to comply with the proposed requirements. Most of the additional 

information required to be reported is already compiled and maintained by the pipelines, 

and will not substantially increase the existing reporting burden. This proposal will 

increase the burden hours as follows: 

Data Collection 

Form 

Number of 

Respondents 

Change in the 

Number of 

Hours per 

Respondent 

Filings Per 

Year 

Change in the Total 

Annual Hours for 

this Form 

 FERC Form 2 84 5 1 420 

FERC Form 2-A 44 5 1 220 

FERC Form 3-Q 128 5 3 1920 

Totals 2560 

Information Collection Costs: The Commission seeks comments on the costs to comply 

with these requirements. As most of the proposed additional data are already maintained 

by the pipelines, the Commission estimates that the additional collection costs will not be 

overly burdensome. 

Title: FERC Form No. 2, “Annual Report for Major Natural Gas Companies”; FERC 

Form No. 2-A, “Annual Report for Nonmajor Natural Gas Companies”; FERC Form No. 

3-Q, “Quarterly Financial Report of Electric Utilities, Licensees, and Natural Gas 

Companies.” 

Action: Proposed information collection. 

OMB Control Nos. 1902-0028 (Form No. 2); 1902-0030 (Form No. 2-A); and 1902-

0205 (Form No. 3-Q). 

Respondents: Businesses or other for profit. 

Frequency of responses: Annually (Form No. 2 and 2-A) and quarterly (Form No. 3-Q). 
Docket No. RM07-9-003 - 11 - 

20. Necessity of the information: The information maintained and collected under the 

requirements of Part 260 is essential to the Commission’s oversight duties. The data now 

reported in the forms does not provide sufficient information to the Commission and the 

public to permit an evaluation of the filers’ jurisdictional rates. Since the triennial 

restatement of rates requirement was abolished and pipelines are no longer required to 

submit this information, the need for current and relevant data is greater than in the past. 

The information collection proposed in the Notice of Proposed Rulemaking will increase 

the forms’ usefulness to both the public and the Commission. Without this information, 

it is difficult for the Commission and the public to perform an assessment of pipeline 

costs, and thereby help to ensure that rates are just and reasonable. We do not believe 

that the additional burden created by the reporting of this information is significant, 

because the pipelines should already have this information readily available for their own 

use in developing separately stated fuel rates in their tariffs. In any event, we believe this 

additional information will allow the Commission and form users to better analyze 

pipeline fuel costs, an important component in assessing the justness and reasonableness 

of pipelines’ rates. 

21. Internal Review: The Commission has reviewed the proposed changes and has 

determined that the changes are necessary. These requirements conform to the 

Commission’s need for efficient information collection, communication, and 

management within the energy industry. The Commission has assured itself, by means of 

internal review, that there is specific, objective support associated with the information 

requirements. 
Docket No. RM07-9-003 - 12 - 

22. Interested persons may obtain information on the reporting requirements by 

contacting: Federal Energy Regulatory Commission, 888 First Street, NE, Washington, 

DC 20426 [Attention: Ellen Brown, Office of the Executive Director, phone (202) 502-

8663, fax: (202) 273-0873, email: DataClearance@ferc.gov. 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, NW, 

Washington, DC 20503 [Attention: Desk Officer for the Federal Energy Regulatory 

Commission, phone: (202) 395-4638, 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 refer to OMB Control Nos. 1902-0028 (FERC 

Form No. 2), 1902-0030 (FERC Form No. 2-A), and 1902-0205 (FERC Form No. 3-Q), 

and the docket number of this proposed rulemaking in your submission. 

IV. Environmental Analysis

23. 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.21 No environmental consideration is necessary for the 

promulgation of a rule that addresses information gathering, analysis, and 

dissemination,22 and, also, addresses accounting.23 No environmental consideration is 

 21 Regulations Implementing the National Environmental Policy Act, 52 FR 47897 

(Dec. 17, 1987), Order No. 486, FERC Stats. & Regs., Regulations Preambles 1986-1990 

¶ 30,783 (1987). 

22 See 18 CFR 380.4(a)(5). 
Docket No. RM07-9-003 - 13 - 

raised by the promulgation of a rule that is procedural or does not substantially change 

the effect if adopted, and thus, this rulemaking falls within these exclusions.24 This 

proposed rule, if finalized, involves information gathering, analysis, and dissemination. 

Consequently, neither an Environmental Impact Statement nor an Environmental 

Assessment is required. 

V. Regulatory Flexibility Act

24. The Regulatory Flexibility Act of 1980 (RFA)25 generally requires a description 

and analysis of final rules that will have significant economic impact on a substantial 

number of small entities.26 Under the industry standards used for purposes of the RFA, a 

natural gas company qualifies as a “small entity” if it has annual revenues of less than $7 

million. Most companies regulated by the Commission do not fall within the RFA’s 

definition of a small entity.27 Thus, most interstate natural gas companies to which the 

rules proposed herein, if finalized, would apply, do not fall within the RFA’s definition of 

small entities. In fact, our most recent information shows that only six natural gas 

companies not affiliated with a large natural gas company fall within the definition of a 

small entity. (These six entities constitute 4.7 % of the 128 total companies.) 

 23 See 18 CFR 380.4(a)(16). 

24 See 18 CFR 380.4(a)(2)(ii). 

25 5 U.S.C. 601-612. 

26 Id.

27 5 U.S.C. 601(3). 
Docket No. RM07-9-003 - 14 - 

Consequently, the rules proposed herein, if finalized, will not have a significant economic 

effect on a substantial number of small entities. 

VI. Comment Procedures

25. The Commission invites interested persons to submit comments on the matters and 

issues proposed in this notice to be adopted, including any related matters or alternative 

proposals that commenters may wish to discuss. Comments are due [insert date that is 60 

days from publication of this Notice in the FEDERAL REGISTER]. Comments must 

refer to Docket No. RM07-9-003, and must include the commenter's name, the 

organization they represent, if applicable, and their address in their comments. 

26. The Commission encourages comments to be filed electronically via the eFiling 

link on the Commission's web site at http://www.ferc.gov. The Commission accepts 

most standard word processing formats. Documents created electronically using word 

processing software should be filed in native applications or print-to-PDF format and not 

in a scanned format. Commenters filing electronically do not need to make a paper 

filing. 

27. Commenters that are not able to file comments electronically must send an 

original and 14 copies of their comments to: Federal Energy Regulatory Commission, 

Office of the Secretary, 888 First Street NE, Washington, DC 20426. 
Docket No. RM07-9-003 - 15 - 

28. All comments will be placed in the Commission's public files and may be viewed, 

printed, or downloaded remotely as described in the Document Availability section 

below. Commenters on this proposal are not required to serve copies of their comments 

on other commenters. 

VII. Document Availability

29. 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 

hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, NE, Room 2A, 

Washington, DC 20426. 

30. 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. 

31. 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. 
Docket No. RM07-9-003 - 16 - 

List of subjects in 18 CFR Part 260

 Natural gas, Reporting and recordkeeping requirements 

By direction of the Commission. 

( S E A L ) 

Nathaniel J. Davis, Sr., 

Deputy Secretary. 

 
Docket No. RM07-9-003 - 17 - 

Note: The following revised schedules will not be published in the Code of Federal 

Regulations. 

Revised Schedules for FERC Form Nos. 2, 2-A and 3-Q

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

Gas Account – Natural Gas 

1. The purpose of this schedule is to account for the quantity of natural gas received and delivered by the respondent. 

2. Natural gas means either natural gas unmixed or any mixture of natural and manufactured gas. 

3. Enter in column (c) the year to date Dth as reported in the schedules indicated for the items of receipts and deliveries. 

4. Enter in column (d) the respective quarter’s Dth as reported in the schedules indicated for the items of receipts and deliveries. 

5. Indicate in a footnote the quantities of bundled sales and transportation gas and specify the line on which such quantities are listed. 

6. If the respondent operates two or more systems which are not interconnected, submit separate pages for this purpose. 

7. Indicate by footnote the quantities of gas not subject to Commission regulation which did not incur FERC regulatory costs by showing: (1) the local distribution 

volumes another jurisdictional pipeline delivered to the local distribution company portion of the reporting pipeline; (2) the quantities that the reporting pipeline 

transported or sold through its local distribution facilities or intrastate facilities and which the reporting pipeline received through gathering facilities or intrastate 

facilities, but not through any of the interstate portion of the reporting pipeline; and (3) the gathering line quantities that were not destined for interstate market or 

that were not transported through any interstate portion of the reporting pipeline. 

8. Indicate in a footnote the specific gas purchase expense account(s) and related to which the aggregate volumes reported on line No. 3 relate. 

9. Indicate in a footnote: (1) the system supply quantities of gas that are stored by the reporting pipeline, during the reporting year and also reported as sales, 

transportation and compression volumes by the reporting pipeline during the same reporting year; (2) the system supply quantities of gas that are stored by the 

reporting pipeline during the reporting year which the reporting pipeline intends to sell or transport in a future reporting year,; and (3) contract storage quantities. 

10. Also indicate the volumes of pipeline production field sales that are included in both the company's total sales figure and the company's total transportation 

figure. Add additional information as necessary to the footnotes. 

Line 

No. 

Item 

(a) 

Ref. Page No. of 

 (FERC Form Nos. 

2/2-A) 

(b) 

Total 

Amount of 

Dth 

Year to Date 

(c) 

Current Three Months 

Ended Amount of Dth 

Quarterly Only 

 (d) 

1 Name of System: 

2 GAS RECEIVED 

3 Gas Purchases (Accounts 800-805) 

4 Gas of Others Received for Gathering (Account 489.1) 303 

5 Gas of Others Received for Transmission (Account 489.2) 305 

6 Gas of Others Received for Distribution (Account 489.3) 301 

7 Gas of Others Received for Contract Storage (Account 489.4) 307 

8 Gas of Others Received for Production/Extraction/Processing (Accounts 490 and 491) 

9 Exchange Gas Received from Others (Account 806) 328 

10 Gas Received as Imbalances (Account 806) 328 

11 Receipts of Respondent’s Gas Transported by Others (Account 858) 332 

12 Other Gas Withdrawn from Storage (Explain) 

13 Gas Received from Shippers as Compressor Station Fuel 

14 Gas Received from Shippers as Lost and Unaccounted for 

15 Other Receipts (Specify) (footnote details) 

16 Total Receipts (Total of lines 3 thru 15) 

17 GAS DELIVERED 

18 Gas Sales (Accounts 480-484) 

19 Deliveries of Gas Gathered for Others (Account 489.1) 303 

20 Deliveries of Gas Transported for Others (Account 489.2) 305 

21 Deliveries of Gas Distributed for Others (Account 489.3) 301 

22 Deliveries of Contract Storage Gas (Account 489.4) 307 

23 Gas of Others Delivered for Production/Extraction/Processing (Accounts 490 and 491) 

24 Exchange Gas Delivered to Others (Account 806) 328 

25 Gas Delivered as Imbalances (Account 806) 328 

26 Deliveries of Gas to Others for Transportation (Account 858) 332 

27 Other Gas Delivered to Storage (Explain) 

28 Gas Used for Compressor Station Fuel 509 

29 Other Deliveries and Gas Used for Other Operations 

30 Total Deliveries (Total of lines 18 thru 29) 

31 GAS LOSSES AND GAS UNACCOUNTED FOR 

32 Gas Losses and Gas Unaccounted For 

33 TOTALS 

34 Total Deliveries, Gas Losses & Unaccounted For (Total of lines 30 and 32) 

FERC FORM NO. 2 (REVISED 12-10) Page 520 

FERC FORM NO. 2-A (REVISED 12-10) 

FERC FORM NO. 3-Q (REVISED 12-10) 
Docket No. RM07-9-003 - 18 - 

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

Shipper Supplied Gas for the Current Quarter 

1. Report monthly (1) shipper supplied gas for the current quarter and gas consumed in pipeline operations, (2) the disposition of any excess, the accounting recognition given to such 

disposition and the specific account(s) charged or credited, and (3) the source of gas used to meet any deficiency, the accounting recognition given to the gas used to meet the 

deficiency, including the accounting basis of the gas and the specific account(s) charged or credited. 

2. On lines 7, 14, 21 and 29 report only the dekatherms of gas provided by shippers under tariff terms and conditions for gathering , production/ extraction/processing, transmission, 

distribution and storage service and the use of that gas for compressor fuel, other operational purposes and lost and unaccounted for. The dekatherms must be broken out by 

functional categories on Lines 2-6, 9-13, 16-20 and 23-28. The dekatherms must be reported in column (d) unless the company has discounted or negotiated rates which should be 

reported in columns (b) and (c). 

3. On lines 7, 14, 21 and 29 report only the dollar amounts of gas provided by shippers under tariff terms and conditions for gathering, production/ extraction/processing, transmission, 

distribution and storage service and the use of that gas for compressor fuel, other operational purposes and lost and unaccounted for. The dollar amounts must be broken out by 

functional categories on Lines 2-6, 9-13, 16-20 and 23-28. The dollar amounts must be reported in column (h) unless the company has discounted or negotiated rates which should 

be reported in columns (f) and (g). The accounting should disclose the account(s) debited and credited in columns (m) and (n).

4. Indicate in a footnote the basis for valuing the gas reported in Columns (f), (g) and (h). 

5. Report in columns (j), (k) and (l) the amount of fuel waived, discounted or reduced as part of a negotiated rate agreement. 

6. On lines 31-35 report the dekatherms and dollar value of the excess or deficiency in shipper supplied gas broken out by functional category and whether recourse rate, discounted 

or negotiated rate. 

7. On lines 38 through 49 report the dekatherms, the dollar amount and the account(s) credited in Column (o) for the dispositions of gas listed in column (a ).

8. On lines 52 through 63 report the dekatherms, the dollar amount and the account(s) debited in Column (n) for the sources of gas reported in column (a).

Line 

No. 

Item 

(a) 

Month 1 

Discounted Rate 

Dth 

(b) 

Month 1 

Negotiated Rate 

Dth 

(c) 

Month 1 

Recourse Rate 

Dth 

(d) 

Month 1 

Total 

Dth 

(e) 

1 Shipper Supplied Gas (Lines 13 and 1, Page 520) 

2 Gathering 

3 Production/Extraction/Processing 

4 Transmission 

5 Distribution 

6 Storage 

7 Total Shipper Supplied Gas 

8 

 Less Gas Used For Compressor Station Fuel (Line 28, 

Page 520) 

9 Gathering 

10 Production/Extraction/Processing 

11 Transmission 

12 Distribution 

13 Storage 

14 Total gas used in compressors

15 

 Less Gas Used For Other Deliveries And Gas Used For 

Other Operations (Line 29, Page 520) (footnote) 

16 Gathering 

16 Production/Extraction/Processing 

17 Transmission 

18 Distribution 

19 Storage 

20 Other Deliveries (specify) (footnote details) 

21 

Total Gas Used For Other Deliveries And Gas Used For 

Other Operations

22 

 Less Gas Lost And Unaccounted For (Line 32, Page 

520) 

23 Gathering 

24 Production/Extraction/Processing 

25 Transmission 

26 Distribution 

27 Storage 

28 Other Losses (specify) (footnote details) 

29 Total Gas Lost And Unaccounted For

FERC FORM NO. 2 (REVISED 12-10) Page 521a 

FERC FORM NO. 2-A (REVISED 12-10) 

FERC FORM NO. 3-Q (REVISED 12-10) 
Docket No. RM07-9-003 - 19 - 

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

Shipper Supplied Gas for the Current Quarter (Continued) 

Line 

No. 

Item 

(a)

Month 1 

Discounted 

Rate 

Dth 

(b) 

Month 1 

Negotiated Rate 

Dth 

(c) 

Month 1 

Recourse Rate 

Dth 

(d) 

Month 1 

Total 

Dth 

(e) 

30 Net Excess Or (Deficiency) 

31 Gathering 

32 Production/Extraction 

33 Transmission 

34 Distribution 

35 Storage 

36 Total Net Excess Or (Deficiency)

37 Disposition Of Excess Gas: 

38 Gas sold to others 

39 Gas used to meet imbalances 

40 Gas added to system gas 

41 Gas returned to shippers 

42 Other (list) 

43 

44 

45 

46 

47 

48 

49 

50 Total Disposition Of Excess Gas 

51 Gas Acquired To Meet Deficiency: 

52 System gas 

53 Purchased gas 

54 Other (list) 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 Total Gas Acquired To Meet Deficiency 

FERC FORM NO. 2 (REVISED 12-10) Page 521b 

FERC FORM NO. 2-A (REVISED 12-10) 

FERC FORM NO. 3-Q (REVISED 12-10) 
Docket No. RM07-9-003 - 20 - 

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

Shipper Supplied Gas for the Current Quarter (continued) 

Amount Collected (Dollars) Volume (in Dth) Not Collected 

Month 1 

Discounted 

Rate 

Amount 

(f) 

Month 1 

Negotiated Rate 

Amount 

(g) 

Month 1 

Recourse Rate 

Amount 

(h) 

Month 1 

Total 

Amount 

(i) 

Month 1 

Waived 

Dth 

(j) 

Month 1 

Discounted 

Dth 

(k) 

Month 1 

Negotiated 

Dth 

(l) 

Month 1 

Total 

Dth 

(m) 

Month 1 

Account(s) 

Debited 

(n) 

Month 1 

Account(s) 

Credited 

(o) 

FERC FORM NO. 2 (REVISED 12-10) Page 521c 

FERC FORM NO. 2-A (REVISED 12-10) 

FERC FORM NO. 3-Q (REVISED 12-10) 
Docket No. RM07-9-003 - 21 - 

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

Shipper Supplied Gas for the Current Quarter (continued) 

Amount Collected (Dollars) Volume (in Dth) Not Collected 

Month 1 

Discounted 

Rate 

Amount 

(f) 

Month 1 

Negotiated Rate 

Amount 

(g) 

Month 1 

Recourse Rate 

Amount 

(h) 

Month 1 

Total 

Amount 

(i) 

Month 1 

Waived 

Dth 

(j) 

Month 1 

Discounted 

Dth 

(k) 

Month 1 

Negotiated 

Dth 

(l) 

Month 1 

Total 

Dth 

(m) 

Month 1 

Account(s) 

Debited 

(n) 

Month 1 

Account(s) 

Credited 

(o) 

FERC FORM NO. 2 (REVISED 12-10) Page 521d 

FERC FORM NO. 2-A (REVISED 12-10) 

FERC FORM NO. 3-Q (REVISED 12-10)