An end-use curtailment plan is a provision included in the tariff of an interstate natural gas pipeline. This plan outlines the procedures for reducing natural gas deliveries during times of supply shortage. The curtailment of gas deliveries is determined based on various factors, including the intended end-use of the gas. This ensures that critical needs are prioritized when resources are limited.
The term "end-use curtailment plan" is primarily used in the context of energy regulation and natural gas distribution. It is relevant in legal practices concerning energy law, regulatory compliance, and utility management. This term is significant for users involved in natural gas transactions, as it may affect their contracts and supply agreements. Individuals and businesses can utilize legal templates from US Legal Forms to create or review agreements related to natural gas supply and curtailment procedures.
Here are a couple of examples of abatement:
(Hypothetical example) A manufacturing facility relies on natural gas for its production processes. During a severe winter, the local pipeline company activates its end-use curtailment plan, prioritizing residential heating needs over industrial use. As a result, the manufacturing facility receives a reduced gas supply, impacting its operations.
The primary regulation governing end-use curtailment plans is found in 18 CFR 284.262, which is part of the Federal Energy Regulatory Commission's regulations under the Natural Gas Policy Act of 1978. This statute outlines the requirements for interstate pipelines regarding emergency natural gas sales and transportation.
| Term | Definition | Differences |
|---|---|---|
| Supply Curtailment | A general reduction in the supply of a resource due to shortages. | End-use curtailment specifically considers the intended use of natural gas. |
| Demand Response | A program that encourages consumers to reduce their energy use during peak periods. | Demand response focuses on consumer behavior, while end-use curtailment is a regulatory measure. |
If you are affected by an end-use curtailment plan, review your natural gas supply agreement to understand how curtailment may impact your operations. Consider consulting a legal professional for advice tailored to your situation. You can also explore US Legal Forms for templates that can help you manage your agreements and ensure compliance with relevant regulations.
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Supply shortages, often due to extreme weather conditions or unexpected demand surges, can trigger these plans.