Amounts paid by interstate gas pipelines to natural gas producers, including affiliated companies, for exploration, development, or production of natural gas, which amounts were to be repaid in cash or by future delivery of gas. During a brief period during the 1970s the Commission allowed such advances to be included in the pipeline's rate base (with adjustments when repaid) and hence to be recovered by the pipeline through its cost of service. The purpose of the advance payments was to induce producers to sell natural gas at regulated prices to the interstate pipelines, rather than at higher, unregulated prices to intrastate pipelines.

This definition is in context to Natural Gas. See more contextual defintions for Advance Payments.