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EMD-81-88 1 (1981-07-30)

handle is hein.gao/gaobabcft0001 and id is 1 raw text is: 





RFPO[I,? BY TKE U. S,



General Accounting Office









FERC Should Improve

The Natural Gas

Well Determination Process




The Natural Gas Policy Act of 1978 establish-
ed different maximum lawful price ceilings
for eight categories of natural gas covering
every natural gas producing well in the U.S.
To qualify, producers must apply to the ap-                                 115932
propriate Federal or State jurisdictional
agency for a well determination. The deter-
minations made by these agencies are for-
warded to the Federal Energy Regulatory
Commission and are subject to review for sub-
stantial evidence.

Although the well determination process is
working well for the most part, the lack of
agency verification. procedures and the fail-
ure of FERC auditors to verify supporting
evidence against producer records during
field audits has weakened the effectiveness of
the well determination process.

Furthermore, FERC'b policy of reviewing, in-
house, all determinations for required sup-
porting evidence virtually duplicates a portion
of the agencies' review procedures at a person-
nel cost of about $368,000 a year.


     ,iD ST4q





                                                                           EMD-81-88
                                                                         JULY 30, 1981

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