Administrative Rules of Montana › Department 38 - PUBLIC SERVICE REGULATION › Chapter 38.5 - UTILITY DIVISION › Subchapter 38.5.71 - Minimum Filing Requirements for Restructured Gas Utility Applications for Approval of Natural Gas Production or Gathering Resources › Rule 38.5.7101 - MINIMUM FILING REQUIREMENTS FOR RESTRUCTURED GAS UTILITY APPLICATIONS FOR APPROVAL OF NATURAL GAS PRODUCTION OR GATHERING RESOURCES

Current through Register Vol. 13, July 5, 2024
(1) An application by a utility for approval
				of the acquisition of a natural gas production or gathering resource that is
				not yet procured must include, as applicable:
(a) a statement explaining fully the type and
				nature of the acquisition;
(b)
				testimony and supporting work papers describing the resource and stating the
				facts (not conclusory statements) that show that acquiring the resource is in
				the public interest and is consistent with the requirements in
				69-3-201
				and
				69-3-1413
				through
				69-3-1416,
				MCA, the utility's most recent natural gas supply procurement plan, if
				applicable, and these rules;
(c)
				testimony and supporting work papers demonstrating the utility's analysis of
				the cost of the acquired production or gathering resource over the short and
				long term compared to the market cost of natural gas and to all other potential
				production or gathering resources evaluated by the utility;
(d) a copy of any contract(s) or agreement(s)
				related to the acquisition, including all appendices and attachments;
(e) testimony providing a thorough
				explanation and justification for any terms in any contract or ownership
				agreement for which the utility is requesting approval;
(f) testimony and work papers describing all
				of the utility's due diligence related to the acquisition;
(g) a copy of any request for proposals
				issued in connection with acquisition of the natural gas production or
				gathering resource;
(h) testimony
				and supporting work papers comparing all bids received in connection with any
				request for proposals;
(i)
				testimony and supporting work papers concerning the utility's bid evaluation in
				connection with any request for proposals, including the ranking of bids and
				reliance on management judgment;
(j) a complete description of each aspect and
				all infrastructure of the production or gathering resource for which the
				utility requests approval;
(k) if
				the application concerns acquisition of an existing natural gas production
				resource, records demonstrating the production history of the
				resource;
(l) an attestation as to
				the accuracy of the potential gas reserves being considered for acquisition
				from a licensed petroleum engineer or a licensed petroleum geologist;
(m) financial statements of the utility
				demonstrating adequate financial capacity to support the acquisition of the
				natural gas production or gathering resource, and information concerning any
				proposed financing arrangements necessary to finance the proposed
				assets;
(n) the estimated effect of
				the transaction on current and future utility rates and charges, including
				specific tariff rate impacts; and
(o) other information as the commission may
				require.