- 12 -12
local authority's recommendation became final.9 Finally,
judicial review was available under NGPA section 503, but only in
the event that FERC remanded or reversed the local authority's
recommendation. 15 U.S.C. sec. 3413(b)(4).
For purposes of obtaining the gas price incentives, the
four-step process outlined above is mandatory and not severable
or elective. A well owner may not qualify merely by producing
from a well located in a field that has been determined to be a
tight formation. In addition to a field determination, the well
owner must obtain a determination that each well produces tight
formation gas. See, e.g., Enserch Exploration, Inc. v. FERC, 887
F.2d 81, 82 (5th Cir. 1989); FERC Order No. 479, issued July 29,
1987, 52 Fed. Reg. 29003 (Aug. 5, 1987).
Regulations under the NGPA indicate that the Wattenberg "J"
Sand formation had been finally determined to contain tight
formation gas. See 18 C.F.R. sec. 271.703(d)(11) (1988). The
Wattenberg "J" field is located north and east of Denver and
underlies approximately 703,000 acres situated within four
different counties. See 18 C.F.R. sec. 271.703(d)(11)(i).
Accordingly, it is a relatively large area within which many
wells may be situated. The parties do not dispute and the case
law supports the principle that to be entitled to the price
9 See Ecee, Inc. v. FERC, 645 F.2d 339, 345-353 (5th Cir.
1981), for a discussion of the statutory division of
responsibilities between the Commission and the local authority.
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