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FERC (U. S. Federal Energy Regulatory Commission) rule allows surplus gas to displace fuel oil

Journal Article · · Oil Gas J.; (United States)
OSTI ID:6883164
FERC will allow the displacement of fuel oil with surplus natural gas in U.S. industrial boilers and in power generation by electric utilities in a new temporary rule that will be in effect until June 1980. The rule will allow interstate pipelines to move the gas to displace fuel oil, which is currently in short supply; will set up a new direct sales program under which industrial and electric utility users can buy gas directly from a producer, intrastate pipeline, or local distribution companies; and will allow transactions without prior FERC approval when the gas is bought from an interstate pipeline or from a local distribution firm's local supplies. Gas transported under the rule may be interrupted and diverted to higher-priority users if the President of the United States declares a gas supply emergency or if a governor certifies that high-priority users in his state require volumes being moved under the rule. FERC has acknowledged that the new rule is counter to the long-term national energy policy of using coal and renewable sources rather than oil or gas. The rule is a modification of one recommended by U.S. Economic Regulatory Administration in Mar. 1979.
OSTI ID:
6883164
Journal Information:
Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 77:22; ISSN OIGJA
Country of Publication:
United States
Language:
English