ABSTRACT
Changes in the federal regulation of natural gas can have implications for energy measurement. A particularly significant example relates to the procedures for determining the quantity of energy units involved in wellhead sales and other "first sales" of natural gas. The Federal Energy Regulatory Commission issued BTU Rule to implement the wellhead pricing provisions of the Natural Gas Policy Act of 1978. This chapter reviews some of the technical aspects of the BTU Rule and discusses the expected future implications of federal regulation on natural gas energy measurement. Where federal price ceilings do not exist, or where price ceilings are above market prices, contracting parties are free to adopt mutually acceptable provisions to accurately account for energy measurement.
