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Rule 20:10:31 ASSESSMENT OF FEES FOR INTRASTATE GAS PIPELINE OPERATORS

CHAPTER 20:10:31

ASSESSMENT OF FEES FOR INTRASTATE GAS PIPELINE OPERATORS

Section

20:10:31:01        Definitions.

20:10:31:02        Scope and application.

20:10:31:03        Reduction of support and direct costs.

20:10:31:04        Assessment of direct costs.

20:10:31:05        Assessment of support costs.

20:10:31:06        Assessment of initial inspection fee.

20:10:31:07        Objection to assessment.




Rule 20:10:31:01 Definitions.

          20:10:31:01.  Definitions. Terms defined in SDCL 49-34B-1 have the same meaning when used in this chapter. In addition, terms used in this chapter mean:

          (1)  "Direct costs," all expenses incurred by the commission that are directly attributable to a pipeline facility for the inspection or investigation of the facilities, including enforcement proceedings;

          (2)  "Distribution pipeline operator," natural gas distribution operator, liquefied petroleum gas distribution operator, liquefied natural gas operator, or master meter system operator;

          (3)  "Quarter," the three-month period ending March 31, June 30, September 30, or December 31;

          (4)  "Support costs," all expenses incurred by the commission for the pipeline safety inspection program as authorized pursuant to SDCL chapter 49-34B that are not direct costs.

          Source: 20 SDR 222, effective July 5, 1994.

          General Authority:SDCL 49-34B-20.

          Law Implemented:SDCL 49-34B-9, 49-34B-10.




Rule 20:10:31:02 Scope and application.

          20:10:31:02.  Scope and application. This chapter sets the standards and procedures used to assess pipeline operators for the pipeline safety inspection program created by SDCL chapter 49-34B. This chapter applies only to intrastate gas pipeline facilities operated within the state.

          Source: 20 SDR 222, effective July 5, 1994.

          General Authority:SDCL 49-34B-20.

          Law Implemented:SDCL 49-34B-9, 49-34B-10.




Rule 20:10:31:03 Reduction of support and direct costs.

          20:10:31:03.  Reduction of support and direct costs. All federal reimbursements received by the commission for prescribing, setting, and enforcing rules and safety standards for the transportation of natural and other gas in accordance with federal law and all civil penalties collected pursuant to SDCL 49-34B-12 are first applied as a reduction of support cost assessments. Any money remaining after the reduction of all support cost assessments is then applied on a prorated basis as a reduction of direct cost assessments.

          Source: 20 SDR 222, effective July 5, 1994.

          General Authority:SDCL 49-34B-20.

          Law Implemented:SDCL 49-34B-9, 49-34B-10.




Rule 20:10:31:04 Assessment of direct costs.

          20:10:31:04.  Assessment of direct costs. The commission shall charge a pipeline operator for all direct costs not reduced by § 20:10:31:03. The charges are assessed and billed annually to each pipeline operator.

 

          Source: 20 SDR 222, effective July 5, 1994; 35 SDR 48, effective September 9, 2008.

          General Authority: SDCL 49-34B-20.

          Law Implemented: SDCL 49-34B-9, 49-34B-10.

 




Rule 20:10:31:05 Assessment of support costs.

          20:10:31:05.  Assessment of support costs. Support costs not reduced by § 20:10:31:03 are first divided equally between two categories. Fifty percent of the costs are allocated to meters and fifty percent are allocated to miles. The number of miles in the miles category is the total number of miles of intrastate gas distribution and transmission pipeline. The number of meters is the total number of meters operated by distribution operators. A gas transmission operator is assessed a pro rata per mile share of the support costs based on the fifty percent allocated to the miles category. The pipeline measurement is rounded up to the next whole mile. The pipeline measurement for each operator is based on the number of miles operated on the preceding December 31.

 

          All remaining support costs are assessed on a pro rata basis to distribution pipeline operators based on the number of meters in service by that operator on the preceding December 31. An operator is considered to have one meter in service for each unmetered individual service line on the preceding December 31.

 

          The charges are assessed and billed annually to each pipeline operator.

 

          Source: 20 SDR 222, effective July 5, 1994; 35 SDR 48, effective September 9, 2008.

          General Authority: SDCL 49-34B-20.

          Law Implemented: SDCL 49-34B-9, 49-34B-10.

 




Rule 20:10:31:06 Assessment of initial inspection fee.

          20:10:31:06.  Assessment of initial inspection fee. An initial inspection fee of $100,000 is assessed to intrastate gas pipeline operators. Intrastate distribution pipeline operators with 50 meters or less are assessed a flat fee of $25. The remaining initial inspection fee is prorated among all intrastate gas pipeline operators using the same method used to assess support costs in § 20:10:31:05.

          Source: 20 SDR 222, effective July 5, 1994.

          General Authority:SDCL 49-34B-20.

          Law Implemented:SDCL 49-34B-11.




Rule 20:10:31:07 Objection to assessment.

          20:10:31:07.  Objection to assessment. A pipeline operator who objects to an assessment within thirty days after the assessment is mailed may withhold the amount of assessed charges in dispute, without penalty, while a complaint is pending before the commission. If a pipeline operator appeals the commission's decision, the operator shall pay the disputed amount, subject to refund, to the commission.

          Source: 20 SDR 222, effective July 5, 1994.

          General Authority:SDCL 49-34B-20.

          Law Implemented:SDCL 49-34B-9 to 49-34B-11.

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