{"operation":"document","citation":"PI-75-010","title":"New Jersey Natural Gas Company — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"1975-03-19","effective_on":null,"summary":"PI-75-010 response to New Jersey Natural Gas Company concerning 192.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-75-010.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-75-010.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-75-010","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/1975/PI75010.pdf","body":"<<<PAGE 1>>>\n\nMarch 19, 1975\nMr. P. H. Reardon, Manager\nGas Operations and Maintenance\nNew Jersey Natural Gas Company\n601 Bangs Avenue\nAsbury Park, New Jersey 07712\nDear Mr. Reardon:\nThis responds to your letter of February 25, 1975, referring to a statement in this Office's\nAdvisory Bulletin No. 75-1 (January, 1975) which reads:\n\"Where a public housing authority purchases gas from a public utility and then sells\nand distributes the gas through its own mains and service lines to customers who\nmay or may not be metered, the housing authority is the operator of a gas\ndistribution system and is subject to the requirements of 49 CFR Part 192.\"\nIn this regard, you ask whether a public housing authority that does not charge an identifiable fee\nfor gas delivered to tenants but instead receives payment for the gas as part of the rent money is\nselling gas to tenants and consequently subject to 49 CFR Part 192.\nAs to the first part of your question, we believe the housing authority is selling gas to tenants. If,\nas it appears, the housing authority agrees to furnish gas to tenants and receives compensation for\nthe service by receipt of rent, a sale of gas occurs. An allocation of rent for the service or other\nidentifiable charge is not necessary to how a sale of gas.\nAs to the second part of your question regarding the consequence of the sale, the jurisdiction of\nPart 192 over a person is not determined by whether the person is selling gas. Rather, it is\ndetermined by whether the person owns or operates gas pipeline facilities used to transport gas in\ncommerce. The sale of gas is relevant, but only to indicate that the transportation involved is\nsubject to Part 192. The transportation of gas subject to Part 192 ends when ownership of the\ngas is transferred to an ultimate consumer, normally by sale and delivery to the consumer.\nIn the example quoted from Advisory Bulletin 75-1, the housing authority is transporting gas to\nothers for consumption through its own pipelines. The sale of gas indicates that the transpor-\ntation is in commerce and subject to Part 192. The fact that the housing authority owns and\noperates the pipelines involved in the\ntransportation, not its sale of the gas, subjects it to the jurisdiction of Part 192.\ndal\\192\\3\\75-03-19\n1\n\n<<<PAGE 2>>>\n\nWe appreciate your interest in pipeline safety.\nSincerely,\nJoseph C. Caldwell\nDirector\nOffice of Pipeline Safety\ndal\\192\\3\\75-03-19\n2","truncated":false,"body_characters":2426}