69-3-1415. Application and approval of natural gas production and gathering resources. - Montana Statutes

     69-3-1415. Application and approval of natural gas production and gathering resources. (1) A natural gas utility may apply to the commission for approval of a natural gas production and gathering resource that is not yet procured.
     (2) (a) Within 45 days of the natural gas utility's submission of an application under subsection (1), the commission shall determine whether or not the application is adequate and in compliance with the commission's minimum filing requirements.
     (b) If the commission determines that the application is inadequate, the commission shall, within 10 days of the determination, provide written notice to the natural gas utility of the deficiencies.
     (3) The commission shall issue an order within 270 days of receipt of an adequate application for approval of an application to lease or acquire an equity interest in natural gas production and gathering resources.
     (4) To facilitate timely consideration of an application, the commission may initiate proceedings to evaluate planning and procurement activities related to a potential resource procurement prior to the natural gas utility's submission of an application for approval.
     (5) (a) The commission may approve or deny, in whole or in part, an application for approval of a natural gas production resource, a gathering resource, or both.
     (b) The commission may consider all relevant information known up to the time that the administrative record in the proceeding is closed in the evaluation of an application for approval.
     (c) A commission order granting approval of an application must find that the application is in whole or in part in the public interest.
     (d) The commission order may include a provision for allowable natural gas production and gathering assets cost of service when the utility has filed an application for the lease or acquisition of an equity interest in natural gas production and gathering resources.
     (e) The commission order may include other findings that the commission determines necessary.
     (f) A commission order that denies approval must describe why the findings required in subsection (5)(c) could not be reached.
     (6) Except as otherwise provided in this part, if the commission has issued an order containing the findings required under subsection (5)(c), the commission may not subsequently disallow the recovery of costs related to the approved natural gas production and gathering resource based on contrary findings.
     (7) Nothing in this section limits the commission's ability to, in any future rate proceeding, inquire into the manner in which the natural gas utility has managed, dispatched, operated, or maintained any resource or managed any natural gas supply purchase agreement as part of its overall resource portfolio. The commission may subsequently disallow rate recovery for the costs that result from the failure of a natural gas utility to reasonably manage, dispatch, operate, maintain, or administer natural gas production and gathering resources in a manner consistent with 69-3-1413 through 69-3-1416 and commission rules.
     (8) By March 31, 2010, the commission shall adopt rules prescribing minimum filing requirements for applications filed pursuant to this part.

     History: En. Sec. 3, Ch. 127, L. 2009.