Natural Gas Regulation

Pipeline Transportation Under FERC Order 436 Gao ID: RCED-87-133BR June 9, 1987

Pursuant to a congressional request, GAO examined how the Federal Energy Regulatory Commission (FERC) is implementing a regulation that allows natural gas pipelines to transport gas without FERC approval if they provide services on a nondiscriminatory basis.

GAO found that: (1) 26 of the 45 major interstate natural gas pipelines have applied to participate in the program; (2) the participating pipelines accounted for 78 percent of the operating revenues received by gas pipelines in 1985; (3) in considering pipeline applications, FERC has had to consider such issues as pipeline capacity allocation, contract reduction or conversion provisions, penalties for deviations from transportation agreements, and pipelines' rate-setting practices; and (4) FERC has, under certain conditions, allowed interstate pipelines to transport gas without complying with the regulation's provisions.



The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.