216.6.
(a) As used in this section, the following terms have the following meanings:(1) “Nonutility grade natural gas provider” means a person or corporation meeting all of the following criteria:
(A) The corporation or person produces, sells, or transports nonutility grade natural gas within this state for consumption by end users.
(B) The corporation or person sells or transports that nonutility grade natural gas to no more than five end users, provided that the gas actually delivered to the end user is nonutility grade natural gas.
(C) The corporation or person uses a pipeline that complies with subparagraph (B) to serve end users other than the owner of the pipeline.
(2) “Nonutility grade natural gas” means natural gas that meets one or more of the following criteria:
(A) Natural gas that is delivered in the Pacific Gas and Electric Company service area and has a heating range of less than 970 British thermal units (Btus) or more than 1150 Btus.
(B) Natural gas that is delivered in the Sempra Energy service area and has a heating range of less then 970 Btus or more than 1250 Btus.
(C) The nonutility grade natural gas provider determines the natural gas is of insufficient quality to make it acceptable for introduction into the line, plant, or system of the gas corporation nearest the well producing that natural gas or to a state or local agency.
(3) “End user” means any person or corporation, other than the pipeline owner or its subsidiaries or affiliates, that purchases natural gas or natural gas transportation services from the nonutility grade natural gas provider for its own use and does not sell or resell or further transport the natural gas for use by another entity. A pipeline owner may not be considered an end user solely because of consumption of natural gas necessary for the operation of the pipeline.
(b) (1) To protect life, health, property, and natural resources, any pipeline transporting nonutility grade natural gas pursuant to this section owned or operated by a nonutility grade natural gas provider is subject to the jurisdiction of the following entities, as follows:
(A) The Division of Oil, Gas, and Geothermal Resources in the Department of Conservation, if the proprietary pipeline is located within the administrative boundaries of an oil field as defined by the Division of Oil, Gas, and Geothermal Resources.
(B) The United States Department of Transportation for compliance with Sections 190 to 193, inclusive, of Title 49 of the Code of Federal Regulations, if the proprietary pipeline is located outside the jurisdiction of the Division of Oil, Gas, and Geothermal Resources.
(2) The nonutility grade natural gas provider shall notify the Division of Oil, Gas, and Geothermal Resources or the United States Department of Transportation, as applicable, of its intent to engage in the selling of nonutility grade natural gas or of its intent to cease the selling of that gas.
(3) Expansion of an existing proprietary natural gas pipeline for the sole purpose of serving end users does not make the existing pipeline subject to this section.
(c) Notwithstanding any other provision of law, natural gas sold or transported to end users by nonutility grade natural gas providers is subject to Article 10 (commencing with Section 890) of Chapter 4. For purposes of compliance with this division, end users who consume nonutility grade natural gas provided by nonutility grade natural gas providers shall notify the State Board of Equalization of their intent to consume that gas.
(d) Notwithstanding Section 216, 222, or 228, a nonutility grade natural gas provider providing service pursuant to this section is not a public utility, a gas company, or a gas pipeline within the meaning of this title solely because of the production, transportation, or sale of natural gas pursuant to this section.
(e) The commission shall ensure in rate allocation cases that any costs resulting from the implementation of this section do not result in an increase in costs to core customers of natural gas or to natural gas corporations.