Calculation of gas heating value is complicated by the courts

Journal Article · Mon Jul 02 04:00:00 EDT 1984 · Oil Gas J.; (United States)

OSTI ID:6453746

Sharples, R J; Pannill, W

In implementing the Natural Gas Policy Act of 1978 - which set the Btu as the basic unit of measure for gas pricing purposes - the Federal Energy Regulatory Commission adopted a rule (FERC Order 93) that prescribed a technically accurate definition of gas heating value determined at standard conditions to reflect the actual water content of the gas at delivery conditions. This order effectively increased the heating value of gas sold by as much as 1.74% and was challenged by many pipelines and gas distributors. In August 1983, the US Circuit Court of Appeals vacated Order 93, causing the refund of over $1 billion by gas producers to their purchasers and by purchasers to their customers retroactive to Dec. 1, 1978. This article reviews the Order 93 controversy, discusses the ramifications of the court's decision, and recommends a correct method for calculating potential refunds.

• OSTI ID: 6453746
• Journal Information: Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 82; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
031000* -- Natural Gas-- Legislation & Regulations
CALCULATION METHODS
CALORIFIC VALUE
COMBUSTION PROPERTIES
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
IMPLEMENTATION
INDUSTRY
LAWS
LEGAL ASPECTS
NATIONAL ENERGY ACT
NATURAL GAS
NATURAL GAS INDUSTRY
NATURAL GAS POLICY ACT
PRICING REGULATIONS
REGULATIONS