Letter order accepting PG&E Gas Transmission, Northwest Corp's Substitute Fifth Revised Sheet 68 et al to FERC Gas Tariff, First Revised Volume 1-A, to be effective 991030 under RP99-518.

Jnofflclal FERC-Generated PDF of 20060414-0200 Received by FERC OSEC 12/06/2005 in D o c k e t # : R P 0 4 - 2 4 9 - 0 0 1 200506305008 Received FERC OSEC 06/30/2005 10:43:00 AM Docket# PL04-3-000 l z h l b l t NO. FGT4 i ~ e l ot2so V White Paper on Natural Gas Interchangeability and N o n - C o m b u s t i o n E n d Use NGC+ Interchangeability Work Group February 28, 2005" , ~ r ' ~ . v ~ ' ~ A -TO;(YCG'%.......... Indudingappendic~ added m doo.mamtJune 7, 2004 " i~ ~ ~od-~q~-~._--- V Jnofflclal FERC-Generated PDF of 2 0 0 6 0 4 1 4 - 0 2 0 0 Received by FERC OSEC 12/06/2005 in Docket#: RP04-249-001 200506305008 Received FERC O S E C 06/30/2005 10:43:00 AM Docket# PL04-3-000 White Paper on Natural Gas Interchangeability And Non-Combustion End Use ~ 2~2~a V 2 Jnofflclal FERC-Generated P D F of 2 0 0 6 0 4 1 4 - 0 2 0 0 Received by F E R C OSEC 12/06/2005 in D o c k e t # : RP04-249-001 200506305008 Received FERC OSEC 06/30/2005 i0:43:00 AM Docket# PL04-3-000 White Paper on Natural Gas Interchangeability Exhibit No. FGT-$ P~le $ oCL~O And Non-Combustion End Use 1.0 Introduction 1.0.I The Federal Energy Regulatory Commission (FERC') has undertaken an initiative m examine and update natural gas interchangeability standards. FERC's initiative results from the confluence of several events and issues. Liquefied natural gas (LNG) imports have begun to rise, and forecasts are for future imports to be a significant percentage of total North American supply. Regasification terminals have regained active status and are expanding. The National Petroleum Council's 2003 report "Balancing Natural Gas Policy- Fueling the Demands of a Growing Economy" presented projections for LNG imports to increase from I percent of our natural gas supply in 2003 to as much as 14 percent by 2025. This report also recommended that FERC and D O E "update natural gas interchangeability standards. ''1 The characteristics of natural gas supply in North America have evolved over time as conventional sources are depleted, and new sources in the Rockies, Appalachians and the Gulf of Mexico are devdoped. Direct receipt of unprocessed gas by transmission pipelines has grown and also contributed to the change in the natural gas composition. Finally, the United States has also experienced prolonged periods of pricing economics that make it more profitable to leave some natural gas liquids (NGL's) in the natural gas steam as Btu's rather than process the gas and extract the NGL's for petrochemical feedstock and other traditional markets. These issues are ...