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US (United States) Code. Title 15. Chapter 60: Natural Gas Policy

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15 USC CHAPTER 60 - NATURAL GAS POLICY 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

-HEAD-

CHAPTER 60 - NATURAL GAS POLICY

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Sec.

3301. Definitions.

SUBCHAPTER I - WELLHEAD PRICING

3311 to 3320, 3331 to 3333. Repealed.

SUBCHAPTER II - INCREMENTAL PRICING

3341 to 3348. Repealed.

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

PART A - EMERGENCY AUTHORITY

3361. Declaration of emergency.

(a) Presidential declaration.

(b) Limitation.

3362. Emergency purchase authority.

(a) Presidential authorization.

(b) Contract duration.

(d) Maintenance of adequate records.

(e) Special limitation.

3363. Emergency allocation authority.

(a) In general.

(b) Allocation of certain boiler fuel gas.

(d) Allocation of user-owned gas.

(e) Limitation.

(f) Industry assistance.

(g) Compensation.

(h) Related transportation and facilities.

(i) Monitoring.

(j) Commission study.

(k) ''High-priority use'' defined.

3364. Miscellaneous provisions.

(a) Information.

(b) Reporting of prices and volumes.

(d) Delegation of authorities.

(e) Antitrust protections.

(f) Effect on certain contractual obligations.

(g) Preemption.

PART B - OTHER AUTHORITIES AND REQUIREMENTS

3371. Authorization of certain sales and transportation.

(a) Commission approval of transportation.

(b) Commission approval of sales.

3372. Assignment of contractual rights to receive surplus natural

gas.

(a) Authorization of assignments.

(b) Effect of authorization under subsection (a).

3373. Effect of certain natural gas prices on indefinite price

escalator clauses.

(a) High-cost natural gas.

(b) Other transactions.

3374. Clauses prohibiting certain sales, transportation, and

commingling.

(a) General rule.

(b) Natural gas covered by this chapter.

3375. Filing of contracts and agreements.

SUBCHAPTER IV - NATURAL GAS CURTAILMENT POLICIES

3391. Natural gas for essential agricultural uses.

(a) General rule.

(b) Curtailment priority not applicable if

alternative fuel available.

requirements.

(d) Authority of Secretary of Agriculture to

intervene.

(e) Limitation.

(f) Definitions.

3391a. ''Essential agricultural use'' defined.

3392. Natural gas for essential industrial process and feedstock

uses.

(a) General rule.

(b) Curtailment priority applicable only if

alternative fuel not available.

requirements.

(d) Definitions.

3393. Establishment and implementation of priorities.

(a) Establishment of priorities.

(b) Implementation of priorities.

3394. Limitation on revoking or amending certain pre-1969

certificates of public convenience and necessity.

(a) General rule.

(b) Commission curtailment authority.

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

3411. General rulemaking authority.

(a) In general.

(b) Authority to define terms.

3412. Administrative procedure.

(a) Administrative Procedure Act.

(b) Opportunity for oral presentations.

3413. Repealed.

3414. Enforcement.

(a) General rule.

(b) Civil enforcement.

3415. Intervention.

(a) Authority to intervene.

(b) Access to State courts.

3416. Judicial review.

(a) Orders.

(b) Review of rules and orders.

3417. Repealed.

3418. Applicability of other Federal statutory provisions relating

to information-gathering.

SUBCHAPTER VI - COORDINATION WITH NATURAL GAS ACT; MISCELLANEOUS

PROVISIONS

3431. Coordination with the Natural Gas Act.

(a) Jurisdiction of the Commission under the Natural

Gas Act.

(b) Charges deemed just and reasonable.

3432. Effect on State laws.

(a) Authority to prescribe maximum lawful prices.

(b) Common carriers.

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CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 717x, 717y of this title;

title 26 section 29; title 42 section 7255.

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15 USC Sec. 3301 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

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Sec. 3301. Definitions

-STATUTE-

For purposes of this chapter -

(1) Natural gas

The term ''natural gas'' means either natural gas unmixed, or

any mixture of natural and artificial gas.

(2) Well

The term ''well'' means any well for the discovery or

production of natural gas, crude oil, or both.

(3) New well

The term ''new well'' means any well -

(A) the surface drilling of which began on or after February

19, 1977; or

(B) the depth of which was increased, by means of drilling on

or after February 19, 1977, to a completion location which is

located at least 1,000 feet below the depth of the deepest

completion location of such well attained before February 19,

1977.

(4) Old well

The term ''old well'' means any well other than a new well.

(5) Marker well

(A) General rule

The term ''marker well'' means any well from which natural

gas was produced in commercial quantities at any time after

January 1, 1970, and before April 20, 1977.

(B) New wells

The term ''marker well'' does not include any new well under

paragraph (3)(A) but includes any new well under paragraph

(3)(B) if such well qualifies as a marker well under

subparagraph (A) of this paragraph.

(6) Reservoir

The term ''reservoir'' means any producible natural

accumulation of natural gas, crude oil, or both, confined -

(A) by impermeable rock or water barriers and characterized

by a single natural pressure system; or

(B) by lithologic or structural barriers which prevent

pressure communication.

(7) Completion location

(A) General rule

The term ''completion location'' means any subsurface

location from which natural gas is being or has been produced

in commercial quantities.

(B) Marker well

The term ''completion location'', when used with reference to

any marker well, means any subsurface location from which

natural gas was produced from such well in commercial

quantities after January 1, 1970, and before April 20, 1977.

(8) Proration unit

The term ''proration unit'' means -

(A) any portion of a reservoir, as designated by the State or

Federal agency having regulatory jurisdiction with respect to

production from such reservoir, which will be effectively and

efficiently drained by a single well;

(B) any drilling unit, production unit, or comparable

arrangement, designated or recognized by the State or Federal

agency having jurisdiction with respect to production from the

reservoir, to describe that portion of such reservoir which

will be effectively and efficiently drained by a single well;

arrangement is not specifically provided for by State law or by

any action of any State or Federal agency having regulatory

jurisdiction with respect to production from such reservoir,

any voluntary unit agreement or other comparable arrangement

applied, under local custom or practice within the locale in

which such reservoir is situated, for the purpose of describing

the portion of a reservoir which may be effectively and

efficiently drained by a single well.

(9) New lease

The term ''new lease'', when used with respect to the Outer

Continental Shelf, means a lease, entered into on or after April

20, 1977, of submerged acreage.

(10) Old lease

The term ''old lease'', when used with respect to the Outer

Continental Shelf, means any lease other than a new lease.

(11) New contract

The term ''new contract'' means any contract, entered into on

or after November 9, 1978, for the first sale of natural gas

which was not previously subject to an existing contract.

(12) Rollover contract

The term ''rollover contract'' means any contract, entered into

on or after November 9, 1978, for the first sale of natural gas

that was previously subject to an existing contract which expired

at the end of a fixed term (not including any extension thereof

taking effect on or after November 9, 1978) specified by the

provisions of such existing contract, as such contract was in

effect on November 9, 1978, whether or not there is an identity

of parties or terms with those of such existing contract.

(13) Existing contract

The term ''existing contract'' means any contract for the first

sale of natural gas in effect on November 8, 1978.

(14) Successor to an existing contract

The term ''successor to an existing contract'' means any

contract, other than a rollover contract, entered into on or

after November 9, 1978, for the first sale of natural gas which

was previously subject to an existing contract, whether or not

there is an identity of parties or terms with those of such

existing contract.

(15) Interstate pipeline

The term ''interstate pipeline'' means any person engaged in

natural gas transportation subject to the jurisdiction of the

Commission under the Natural Gas Act (15 U.S.C. 717 et seq.).

(16) Intrastate pipeline

The term ''intrastate pipeline'' means any person engaged in

natural gas transportation (not including gathering) which is not

subject to the jurisdiction of the Commission under the Natural

Gas Act (15 U.S.C. 717 et seq.) (other than any such pipeline

which is not subject to the jurisdiction of the Commission solely

by reason of section 1(c) of the Natural Gas Act (15 U.S.C.

717(c))).

(17) Local distribution company

The term ''local distribution company'' means any person, other

than any interstate pipeline or any intrastate pipeline, engaged

in the transportation, or local distribution, of natural gas and

the sale of natural gas for ultimate consumption.

(18) Committed or dedicated to interstate commerce

(A) General rule

The term ''committed or dedicated to interstate commerce'',

when used with respect to natural gas, means -

(i) natural gas which is from the Outer Continental Shelf;

and

(ii) natural gas which, if sold, would be required to be

sold in interstate commerce (within the meaning of the

Natural Gas Act (15 U.S.C. 717 et seq.)) under the terms of

any contract, any certificate under the Natural Gas Act, or

any provision of such Act.

(B) Exclusion

Such term does not apply with respect to -

(i) natural gas sold in interstate commerce (within the

meaning of the Natural Gas Act (15 U.S.C. 717 et seq.)) -

(I) under section 6 of the Emergency Natural Gas Act of

1977;

(II) under any limited term certificate, granted pursuant

to section 7 of the Natural Gas Act (15 U.S.C. 717f), which

contains a pregrant of abandonment of service for such

natural gas;

(III) under any emergency regulation under the second

proviso of section 7(c) of the Natural Gas Act (15 U.S.C.

717f(c)); or

(IV) to the user by the producer and transported under

any certificate, granted pursuant to section 7(c) of the

Natural Gas Act (15 U.S.C. 717f(c)), if such certificate

was specifically granted for the transportation of that

natural gas for such user;

(ii) natural gas for which abandonment of service was

granted before November 9, 1978, under section 7 of the

Natural Gas Act (15 U.S.C. 717f); and

(iii) natural gas which, but for this clause, would be

committed or dedicated to interstate commerce under

subparagraph (A)(ii) by reason of the action of any person

(including any successor in interest thereof, other than by

means of any reversion of a leasehold interest), if on May

31, 1978 -

(I) neither that person, nor any affiliate thereof, had

any right to explore for, develop, produce, or sell such

natural gas; and

(II) such natural gas was not being sold in interstate

commerce (within the meaning of the Natural Gas Act (15

U.S.C. 717 et seq.)) for resale (other than any sale

described in clause (i)(I), (II), or (III)).

(19) Certificated natural gas

The term ''certificated natural gas'' means natural gas

transported by any interstate pipeline in a facility for which

there is in effect a certificate issued under section 7(c) of the

Natural Gas Act (15 U.S.C. 717f(c)). Such term does not include

natural gas sold to the user by the producer and transported

pursuant to a certificate which is specifically issued under

section 7(c) of the Natural Gas Act for the transportation of

that natural gas, for such user unless such natural gas is used

for the generation of electricity.

(20) Sale

The term ''sale'' means any sale, exchange, or other transfer

for value.

(21) First sale

(A) General rule

The term ''first sale'' means any sale of any volume of

natural gas -

(i) to any interstate pipeline or intrastate pipeline;

(ii) to any local distribution company;

(iii) to any person for use by such person;

(iv) which precedes any sale described in clauses (i),

(ii), or (iii); and

(v) which precedes or follows any sale described in clauses

(i), (ii), (iii), or (iv) and is defined by the Commission as

a first sale in order to prevent circumvention of any maximum

lawful price established under this chapter.

(B) Certain sales not included

Clauses (i), (ii), (iii), or (iv) of subparagraph (A) shall

not include the sale of any volume of natural gas by any

interstate pipeline, intrastate pipeline, or local distribution

company, or any affiliate thereof, unless such sale is

attributable to volumes of natural gas produced by such

interstate pipeline, intrastate pipeline, or local distribution

company, or any affiliate thereof.

(22) Deliver

The term ''deliver'', when used with respect to any first sale

of natural gas, means the physical delivery from the seller;

except that in the case of the sale of proven reserves in place

to any interstate pipeline, any intrastate pipeline, any local

distribution company, or any user of such natural gas, such term

means the transfer of title to such reserves.

(23) Certificate

The term ''certificate'', when used with respect to the Natural

Gas Act (15 U.S.C. 717 et seq.), means a certificate of public

convenience and necessity issued under such Act.

(24) Commission

The term ''Commission'' means the Federal Energy Regulatory

Commission.

(25) Federal agency

The term ''Federal agency'' has the same meaning as given such

term in section 105 of title 5.

(26) Person

The term ''person'' includes the United States, any State, and

any political subdivision, agency, or instrumentality of the

foregoing.

(27) Affiliate

The term ''affiliate'', when used in relation to any person,

means another person which controls, is controlled by, or is

under common control with, such person.

(28) Electric utility

The term ''electric utility'' means any person to the extent

such person is engaged in the business of the generation of

electricity and sale, directly or indirectly, of electricity to

the public.

(29) Mcf

The term ''Mcf'', when used with respect to natural gas, means

1,000 cubic feet of natural gas measured at a pressure of 14.73

pounds per square inch (absolute) and a temperature of 60 degrees

Fahrenheit.

(30) Btu

The term ''Btu'' means British thermal unit.

(31) Month

The term ''month'' means a calendar month.

(32) Mile

The term ''mile'' means a statute mile of 5,280 feet.

(33) United States

The term ''United States'' means the several States and

includes the Outer Continental Shelf.

(34) State

The term ''State'' means each of the several States and the

District of Columbia.

(35) Outer Continental Shelf

The term ''Outer Continental Shelf'' has the same meaning as

such term has under section 1331(a) of title 43.

(36) Prudhoe Bay Unit of Alaska

The term ''Prudhoe Bay Unit of Alaska'' means the geographic

area subject to the voluntary unit agreement approved by the

Commissioner of the Department of Natural Resources of the State

of Alaska on June 2, 1977, and referred to as the ''affected

area'' in Conservation Order No. 145 of the Alaska Oil and Gas

Conservation Committee, Division of Oil and Gas Conservation,

Department of Natural Resources of the State of Alaska, as such

order was in effect on June 1, 1977, and determined without

regard to any adjustments in the description of the affected area

permitted to be made under such order.

(37) Antitrust laws

The term ''Federal antitrust laws'' means the Sherman Act (15

U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 12, 13, 14-19, 20,

21, 22-27), the Federal Trade Commission Act (15 U.S.C. 41 et

seq.), sections 73 and 74 of the Wilson Tariff Act (15 U.S.C.

8-9), and the Act of June 19, 1936, chapter 592 (15 U.S.C. 13,

13a, 13b, and 21a).

-SOURCE-

(Pub. L. 95-621, Sec. 2, Nov. 9, 1978, 92 Stat. 3352.)

-REFTEXT-

REFERENCES IN TEXT

The Natural Gas Act, and such Act, referred to in pars. (15),

(16), (18)(A)(ii), (B)(i), (iii)(II), (23), is act June 21, 1938,

ch. 556, 52 Stat. 821, as amended, which is classified generally to

chapter 15B (Sec. 717 et seq.) of this title. For complete

classification of this Act to the Code, see section 717w of this

title and Tables.

Section 6 of the Emergency Natural Gas Act of 1977, referred to

in par. (18)(B)(i)(I), is Pub. L. 95-2, Sec. 6, Feb. 2, 1977, 91

Stat. 7, which was formerly set out in a note under section 717 of

this title.

The Sherman Act (15 U.S.C. 1 et seq.), referred to in par. (37),

is act July 2, 1890, ch. 647, 26 Stat. 209, as amended, which is

classified to sections 1 to 7 of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1 of this title and Tables.

The Clayton Act (15 U.S.C. 12, 13, 14-19, 20, 21, 22-27),

referred to in par. (37), is act Oct. 15, 1914, ch. 323, 38 Stat.

730, as amended, which is classified generally to sections 12, 13,

14 to 19, 20, 21, and 22 to 27 of this title, and sections 52 and

53 of Title 29, Labor. For further details and complete

classification of this Act to the Code, see References in Text note

set out under section 12 of this title and Tables.

The Federal Trade Commission Act (15 U.S.C. 41 et seq.), referred

to in par. (37), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as

amended, which is classified generally to subchapter I (Sec. 41 et

seq.) of chapter 2 of this title. For complete classification of

this Act to the Code, see section 58 of this title and Tables.

Act of June 19, 1936, chapter 592, referred to in par. (37),

means act June 19, 1936, ch. 592, 49 Stat. 1526, popularly known as

the Robinson-Patman Antidiscrimination Act and also as the

Robinson-Patman Price Discrimination Act, which enacted sections

13a, 13b, and 21a of this title and amended section 13 of this

title. For complete classification of this Act to the Code, see

Short Title note set out under section 13 of this title and Tables.

-MISC2-

SHORT TITLE OF 1989 AMENDMENT

Pub. L. 101-60, Sec. 1, July 26, 1989, 103 Stat. 157, provided

that: ''This Act (amending sections 3331, 3372, 3373, 3375, 3411,

3412, 3414, 3416, 3431, and 3432 of this title, repealing sections

3311 to 3320, 3331 to 3333, 3413, and 3417 of this title, and

enacting provisions set out as notes under sections 3311 and 3372

of this title) may be cited as the 'Natural Gas Wellhead Decontrol

Act of 1989'.''

SHORT TITLE

Section 1 of Pub. L. 95-621 provided that: ''This Act (enacting

this chapter and amending section 7255 of Title 42, The Public

Health and Welfare) may be cited as the 'Natural Gas Policy Act of

1978'.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 717b, 3312, 3363, 3802 of

this title; title 26 section 29.

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15 USC SUBCHAPTER I - WELLHEAD PRICING 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER I - WELLHEAD PRICING

-HEAD-

SUBCHAPTER I - WELLHEAD PRICING

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15 USC Sec. 3311 to 3320, 3331 to 3333 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER I - WELLHEAD PRICING

-HEAD-

Sec. 3311 to 3320, 3331 to 3333. Repealed. Pub. L. 101-60, Sec.

2(b), July 26, 1989, 103 Stat. 158

-MISC1-

Section 3311, Pub. L. 95-621, title I, Sec. 101, Nov. 9, 1978, 92

Stat. 3356, related to inflation adjustments and other general

price ceiling rules to be applied in establishing wellhead price

controls.

Section 3312, Pub. L. 95-621, title I, Sec. 102, Nov. 9, 1978, 92

Stat. 3358; Pub. L. 102-154, title I, Nov. 13, 1991, 105 Stat.

1000, related to ceiling price for new natural gas and certain gas

produced from Outer Continental Shelf.

Section 3313, Pub. L. 95-621, title I, Sec. 103, Nov. 9, 1978, 92

Stat. 3361, related to ceiling price for new, onshore production

wells.

Section 3314, Pub. L. 95-621, title I, Sec. 104, Nov. 9, 1978, 92

Stat. 3362, related to a ceiling price for sales of natural gas

dedicated to interstate commerce.

Section 3315, Pub. L. 95-621, title I, Sec. 105, Nov. 9, 1978, 92

Stat. 3363, related to ceiling price for sales under intrastate

contracts existing on Nov. 8, 1978.

Section 3316, Pub. L. 95-621, title I, Sec. 106, Nov. 9, 1978, 92

Stat. 3365, related to ceiling price for sales under rollover

contracts.

Section 3317, Pub. L. 95-621, title I, Sec. 107, Nov. 9, 1978, 92

Stat. 3366, related to ceiling price for high-cost natural gas.

Section 3318, Pub. L. 95-621, title I, Sec. 108, Nov. 9, 1978, 92

Stat. 3367, related to ceiling price for stripper well natural gas.

Section 3319, Pub. L. 95-621, title I, Sec. 109, Nov. 9, 1978, 92

Stat. 3368, related to ceiling price for other categories of

natural gas.

Section 3320, Pub. L. 95-621, title I, Sec. 110, Nov. 9, 1978, 92

Stat. 3368, related to treatment of State severance taxes and

certain production-related costs.

Section 3331, Pub. L. 95-621, title I, Sec. 121, Nov. 9, 1978, 92

Stat. 3369; Pub. L. 101-60, Sec. 2(a), July 26, 1989, 103 Stat.

157, provided for elimination of price controls for certain natural

gas sales.

Section 3332, Pub. L. 95-621, title I, Sec. 122, Nov. 9, 1978, 92

Stat. 3370, related to standby price control authority.

Section 3333, Pub. L. 95-621, title I, Sec. 123, Nov. 9, 1978, 92

Stat. 3371, related to reports to Congress by Department of Energy.

EFFECTIVE DATE OF REPEAL

Section 2(b) of Pub. L. 101-60 provided that the repeal of

sections 3311 to 3320 and 3331 to 3333 is effective Jan. 1, 1993.

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15 USC SUBCHAPTER II - INCREMENTAL PRICING 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER II - INCREMENTAL PRICING

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SUBCHAPTER II - INCREMENTAL PRICING

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15 USC Sec. 3341 to 3348 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER II - INCREMENTAL PRICING

-HEAD-

Sec. 3341 to 3348. Repealed. Pub. L. 100-42, Sec. 2(a), May 21,

1987, 101 Stat. 314

-MISC1-

Section 3341, Pub. L. 95-621, title II, Sec. 201, Nov. 9, 1978,

92 Stat. 3371, required Commission to prescribe and make effective

a rule designed to provide for passthrough of costs of natural gas,

with respect to boiler fuel use of natural gas by industrial boiler

fuel facilities, not later than 12 months after Nov. 9, 1978.

Section 3342, Pub. L. 95-621, title II, Sec. 202, Nov. 9, 1978,

92 Stat. 3372, required Commission to prescribe an amendment to

rule required under section 3341 of this title, which would expand

its application to other industrial uses, not later than 18 months

after Nov. 9, 1978.

Section 3343, Pub. L. 95-621, title II, Sec. 203, Nov. 9, 1978,

92 Stat. 3373, enumerated acquisition costs subject to passthrough

requirements of rule prescribed under section 3341 of this title.

Section 3344, Pub. L. 95-621, title II, Sec. 204, Nov. 9, 1978,

92 Stat. 3375, related to method of passthrough.

Section 3345, Pub. L. 95-621, title II, Sec. 205, Nov. 9, 1978,

92 Stat. 3378, related to direct passthrough of surcharges paid by

local distributors on natural gas delivered by interstate pipelines

to industrial facilities served by such local distributors.

Section 3346, Pub. L. 95-621, title II, Sec. 206, Nov. 9, 1978,

92 Stat. 3379, enumerated exemptions from application of rule

required under section 3341 of this title.

Section 3347, Pub. L. 95-621, title II, Sec. 207, Nov. 9, 1978,

92 Stat. 3380, related to application of section 3343 to certain

natural gas and liquefied natural gas imports.

Section 3348, Pub. L. 95-621, title II, Sec. 208, Nov. 9, 1978,

92 Stat. 3381, directed that Alaska natural gas be allocated to

rates and charges of interstate pipelines in accordance with

certain general principles applicable on Nov. 9, 1978, for

establishing rates.

REPEAL OF INCREMENTAL PRICING REQUIREMENTS

Section 2 of Pub. L. 100-42 provided that:

''(a) Repeal. - Subject to subsections (b) and (c) of this

section, title II of the Natural Gas Policy Act of 1978 (15 U.S.C.

3341-3348) is repealed, and the items relating to title II are

stricken from the table of contents of that Act.

''(b) Limited Continuing Effect of Rules. - A rule promulgated by

the Federal Energy Regulatory Commission, under title II of the

Natural Gas Policy Act of 1978 shall continue in effect only with

respect to the flowthrough of costs incurred before the enactment

of this section (May 21, 1987), including any surcharges based on

such costs.

''(c) Implementation. - The Federal Energy Regulatory Commission

may take appropriate action to implement this section.''

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15 USC SUBCHAPTER III - ADDITIONAL AUTHORITIES AND

REQUIREMENTS 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

-HEAD-

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in title 42 section 7511a.

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15 USC Part A - Emergency Authority 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part A - Emergency Authority

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Part A - Emergency Authority

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15 USC Sec. 3361 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part A - Emergency Authority

-HEAD-

Sec. 3361. Declaration of emergency

-STATUTE-

(a) Presidential declaration

The President may declare a natural gas supply emergency (or

extend a previously declared emergency) if he finds that -

(1) a severe natural gas shortage, endangering the supply of

natural gas for high-priority uses, exists or is imminent in the

United States or in any region thereof; and

(2) the exercise of authorities under section 3362 or section

3363 of this title is reasonably necessary, having exhausted

other alternatives to the maximum extent practicable, to assist

in meeting natural gas requirements for such high-priority uses.

(b) Limitation

(1) Expiration

Any declaration of a natural gas supply emergency (or extension

thereof) under subsection (a) of this section, shall terminate at

the earlier of -

(A) the date on which the President finds that any shortage

described in subsection (a) of this section does not exist or

is not imminent; or

(B) 120 days after the date of such declaration of emergency

(or extension thereof).

(2) Extensions

Nothing in this subsection shall prohibit the President from

extending, under subsection (a) of this section, any emergency

(or extension thereof), previously declared under subsection (a)

of this section, upon the expiration of such declaration of

emergency (or extension thereof) under paragraph (1)(B).

-SOURCE-

(Pub. L. 95-621, title III, Sec. 301, Nov. 9, 1978, 92 Stat. 3381.)

-TRANS-

DELEGATION OF FUNCTIONS

Functions of President under this subchapter, except for

authority to declare, extend, and terminate a national gas supply

emergency pursuant to this section, delegated to Secretary of

Energy, see section 1-101 of Ex. Ord. No. 12235, Sept. 3, 1980, 45

F.R. 58803, set out as a note under section 3364 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3362, 3363, 3364, 3412,

3416 of this title.

-CITE-

15 USC Sec. 3362 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part A - Emergency Authority

-HEAD-

Sec. 3362. Emergency purchase authority

-STATUTE-

(a) Presidential authorization

During any natural gas supply emergency declared under section

3361 of this title, the President may, by rule or order, authorize

any interstate pipeline or local distribution company served by any

interstate pipeline to contract, upon such terms and conditions as

the President determines to be appropriate (including provisions

respecting fair and equitable prices), for the purchase of

emergency supplies of natural gas -

(1) from any producer of natural gas (other than a producer who

is affiliated with the purchaser, as determined by the President)

if -

(A) such natural gas is not produced from the Outer

Continental Shelf; and

(B) the sale or transportation of such natural gas was not

pursuant to a certificate issued under the Natural Gas Act (15

U.S.C. 717 et seq.) immediately before the date on which such

contract was entered into; or

(2) from any intrastate pipeline, local distribution company,

or other person (other than an interstate pipeline or a producer

of natural gas).

(b) Contract duration

The duration of any contract authorized under subsection (a) of

this section may not exceed 4 months. The preceding sentence shall

not prohibit the President from authorizing under subsection (a) of

this section a renewal of any contract, previously authorized under

such subsection, following the expiration of such contract.

The President may, by order, require any pipeline to transport

natural gas, and to construct and operate such facilities for the

transportation of natural gas, as he determines necessary to carry

out any contract authorized under subsection (a) of this section.

The costs of any construction or transportation ordered under this

subsection shall be paid by the purchaser of natural gas under the

contract with respect to which such order is issued. No order to

transport natural gas under this subsection shall require any

pipeline to transport natural gas in excess of such pipeline's

available capacity.

(d) Maintenance of adequate records

The Commission shall require any interstate pipeline or local

distribution company contracting under the authority of this

section for natural gas to maintain and make available full and

adequate records concerning transactions under this section,

including records of the volumes of natural gas purchased under the

authority of this section and the rates and charges for purchase

and receipt of such natural gas.

(e) Special limitation

No sale under any emergency purchase contract under this section

for emergency supplies of natural gas for sale and delivery from

any intrastate pipeline which is operating under court supervision

as of January 1, 1977, may take effect unless the court approves.

-SOURCE-

(Pub. L. 95-621, title III, Sec. 302, Nov. 9, 1978, 92 Stat. 3382.)

-REFTEXT-

REFERENCES IN TEXT

The Natural Gas Act, referred to in subsec. (a)(1)(B), is act

June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is

classified generally to chapter 15B (Sec. 717 et seq.) of this

title. For complete classification of this act to the Code, see

section 717w of this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3361, 3363, 3364, 3373,

3374, 3412, 3414, 3416, 3417, 3431, 3432 of this title.

-CITE-

15 USC Sec. 3363 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part A - Emergency Authority

-HEAD-

Sec. 3363. Emergency allocation authority

-STATUTE-

(a) In general

In order to assist in meeting natural gas requirements for

high-priority uses of natural gas during any natural gas supply

emergency declared under section 3361 of this title, the President

may, by order, allocate supplies of natural gas under subsections

(b), (c), and (d) of this section to -

(1) any interstate pipeline;

(2) any local distribution company -

(A) which is served by any interstate pipeline;

(B) which is providing natural gas only for high-priority

uses; and

in meeting natural gas requirements for high-priority uses of

natural gas; and

(3) any person for meeting requirements of high-priority uses

of natural gas.

(b) Allocation of certain boiler fuel gas

(1) Required finding

The President shall not allocate supplies of natural gas under

this subsection unless he finds that -

(A) to the maximum extent practicable, emergency purchase

authority under section 3362 of this title has been utilized to

assist in meeting natural gas requirements for high-priority

uses of natural gas;

(B) emergency purchases of natural gas supplies under section

3362 of this title are not likely to satisfy the natural gas

requirements for such high-priority uses;

reasonably necessary to assist in meeting natural gas

requirements for such high-priority uses; and

(D) any interstate pipeline or local distribution company

receiving such natural gas has ordered the termination of all

deliveries of natural gas for other than high-priority uses and

attempted to to (FOOTNOTE 1) the maximum extent practicable to

terminate such deliveries.

(FOOTNOTE 1) So in original.

(2) Allocation authority

Subject to paragraph (1), in order to assist in meeting natural

gas requirements for high-priority uses of natural gas, the

President may, by order, allocate supplies of natural gas the use

of which has been prohibited by the President pursuant to

authority under section 717z of this title (relating to the use

of natural gas as a boiler fuel during any natural gas supply

emergency).

(1) Required findings

The President shall not allocate supplies of natural gas under

this subsection unless he finds that -

(A) to the maximum extent practicable, allocation of supplies

of natural gas under subsection (b) of this section has been

utilized to assist in meeting natural gas requirements for

high-priority uses of natural gas;

(B) the exercise of such authority is not likely to satisfy

the natural gas requirements for such high-priority uses;

reasonably necessary to assist in meeting natural gas

requirements for such high-priority uses;

(D) any interstate pipeline or local distribution company

receiving such natural gas has ordered the termination of all

deliveries of natural gas for other than high-priority uses and

attempted to the maximum extent practicable to terminate such

deliveries;

(E) such allocation will not create, for the interstate

pipeline delivering certificated natural gas, a supply shortage

which will cause such pipeline to be unable to meet the natural

gas requirements for high-priority uses of natural gas served,

directly or indirectly, by such pipeline; and

(F) such allocation will not result in a disproportionate

share of deliveries and resulting curtailments of natural gas

being experienced by such interstate pipeline when compared to

deliveries and resulting curtailments which are experienced as

a result of orders issued under this subsection applicable to

other interstate pipelines (as determined by the President).

(2) Required notification from State

(A) (FOOTNOTE 2) Notification

(FOOTNOTE 2) So in original. Par. (2) enacted without a subpar.

(B).

The President shall not allocate supplies of natural gas

under this subsection unless he is notified by the Governor of

any State that -

(i) a shortage of natural gas supplies available to such

State exists or is imminent;

(ii) such shortage or imminent shortage endangers the

supply of natural gas for high-priority uses in such State;

and

(iii) the exercise of authority under State law is

inadequate to protect high-priority uses of natural gas in

such State from an interruption in natural gas supplies.

(3) Basis of finding

To the maximum extent practicable, the Governor shall submit,

together with any notification under subparagraph (A),

information upon which he has based his finding under such

subparagraph, including -

(i) volumes of natural gas required to meet the natural gas

requirements for high-priority uses of natural gas in such

State;

(ii) information received from persons in the business of

producing, selling, transporting, or delivering natural gas in

such State as to the volumes of natural gas supplies available

to such State;

(iii) information on the authority under State law which will

be exercised to protect high-priority uses; and

(iv) such other information which the President requests or

which the Governor determines appropriate to apprise the

President of emergency deliveries and transportation of

interstate natural gas needed by such State.

(4) Allocation authority

Subject to paragraphs (1), (2), and (5), in order to assist in

meeting natural gas requirements for high-priority uses of

natural gas, the President may, by order, allocate supplies of

certificated natural gas from any interstate pipeline.

(5) Consideration of alternative fuel availability

In issuing any order under this subsection the President shall

consider the relative availability of alternative fuel to natural

gas users supplied by the interstate pipeline ordered to make

deliveries pursuant to this subsection.

(d) Allocation of user-owned gas

(1) Required finding

The President shall not allocate supplies of natural gas under

this subsection unless he finds that -

(A) to the maximum extent practicable, allocation of supplies

of natural gas under subsection (c) of this section has been

utilized to assist in meeting natural gas requirements for

high-priority uses of natural gas;

(B) the exercise of such authority is not likely to satisfy

the natural gas requirements for such high-priority uses;

reasonably necessary to assist in meeting natural gas

requirements for such high-priority uses;

(D) any interstate pipeline or local distribution company

receiving such natural gas has ordered the termination of all

deliveries of natural gas for other than high-priority uses and

attempted to the maximum extent practicable to terminate such

deliveries; and

(E) such allocation will not create, for the person who owns

and would otherwise use such natural gas, a supply shortage

which will cause such person to be unable to satisfy such

person's natural gas requirements for high-priority uses.

(2) Allocation authority

Subject to paragraphs (1) and (3), in order to assist in

meeting natural gas requirements for high-priority uses of

natural gas, the President may, by order, allocate supplies of

natural gas which would be certificated natural gas but for the

second sentence of section 3301(19) of this title.

(3) Consideration of economic feasibility of alternative fuels

In issuing any order under this subsection, the President shall

consider the economic feasibility of alternative fuels available

to the user which owned the natural gas subject to an order under

this subsection.

(e) Limitation

No order may be issued under this section unless the President

determines that such order will not require transportation of

natural gas by any pipeline in excess of its available

transportation capacity.

(f) Industry assistance

The President may request that representatives of pipelines,

local distribution companies, and other persons meet and provide

assistance to the President in carrying out his authority under

this section.

(g) Compensation

(1) In general

If the parties to any order issued under subsection (b), (c),

(d), or (h) of this section fail to agree upon the terms of

compensation for natural gas deliveries or transportation

required pursuant to such order, the President, after a hearing

held either before or after such order takes effect, shall, by

supplemental order, prescribe the amount of compensation to be

paid for such deliveries or transportation and for any other

expenses incurred in delivering or transporting natural gas.

(2) Calculation of compensation for certain boiler fuel natural

gas

For purposes of any supplemental order under paragraph (1) with

respect to emergency deliveries pursuant to subsection (b) of

this section, the President shall calculate the amount of

compensation -

(A) for supplies of natural gas based upon the amount

required to make whole the user subject to the prohibition

order, but in no event may such compensation exceed just

compensation prescribed in section 717z of this title; and

(B) for transportation, storage, delivery, and other

services, based upon reasonable costs, as determined by the

President.

(3) Compensation for other natural gas allocated

For the purpose of any supplemental order under paragraph (1),

if the party making emergency deliveries pursuant to subsection

(A) indicates a preference for compensation in kind, the

President shall direct that compensation in kind be provided as

expeditiously as practicable;

(B) indicates a preference for compensation, or the President

determines that, notwithstanding paragraph (A) of this

subsection, any portion thereof cannot practicably be

compensated in kind, the President shall calculate the amount

of compensation -

(i) for supplies of natural gas, based upon the amount

required to make the pipeline and its local distribution

companies whole, in the case of any order under subsection

gas is allocated whole, in the case of any order under

subsection (d) of this section including any amount actually

paid by such pipeline and its local distribution companies or

such user for volumes of natural gas or higher cost synthetic

gas acquired to replace natural gas subject to an order under

subsection (c) or (d) of this section; and

(ii) for transportation, storage, delivery, and other

services, based upon reasonable costs, as determined by the

President. Compensation received by an interstate pipeline

under this subsection shall be credited to the account of any

local distribution company served by that pipeline to the

extent ordered by the President to make such local

distribution company whole.

(h) Related transportation and facilities

The President may, by order, require any pipeline to transport

natural gas, and to construct and operate such facilities for the

transportation of natural gas, as he determines necessary to carry

out any order under subsection (b), (c), or (d) of this section.

Compensation for the costs of any construction or transportation

ordered under this subsection shall be determined under subsection

(g) of this section and shall be paid by the person to whom

supplies of natural gas are ordered allocated under this section.

(i) Monitoring

In order to effect the purposes of this part, the President shall

monitor the operation of any order made pursuant to this section to

assure that natural gas delivered pursuant to this section is

applied to high-priority uses only.

(j) Commission study

Not later than June 1, 1979, the Commission shall prepare and

submit to the Congress a report regarding whether authority to

allocate natural gas, which is not otherwise subject to allocation

under this part, is likely to be necessary to meet high-priority

uses.

(k) ''High-priority use'' defined

For purposes of this section, the term ''high-priority use''

means any -

(1) use of natural gas in a residence;

(2) use of natural gas in a commercial establishment in amounts

less than 50 Mcf on a peak day; or

(3) any use of natural gas the curtailment of which the

President determines would endanger life, health, or maintenance

of physical property.

-SOURCE-

(Pub. L. 95-621, title III, Sec. 303, Nov. 9, 1978, 92 Stat. 3383.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 717z, 3361, 3364, 3373,

3374, 3412, 3414, 3416, 3431, 3432 of this title.

-CITE-

15 USC Sec. 3364 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part A - Emergency Authority

-HEAD-

Sec. 3364. Miscellaneous provisions

-STATUTE-

(a) Information

(1) Obtaining of information

In order to obtain information to carry out his authority under

this part, the President may -

(A) sign and issue subpenas for the attendance and testimony

of witnesses and the production of books, records, papers, and

other documents;

(B) require any person, by general or special order, to

submit answers in writing to interrogatories, requests for

reports or for other information, and such answers shall be

made within such reasonable period, and under oath or otherwise

as the President may determine; and

any Federal agency.

(FOOTNOTE 1) So in original. Probably should be ''(C)''.

(2) Enforcement of subpenas and orders

The appropriate United States district court may, upon petition

of the Attorney General at the request of the President, in the

case of refusal to obey a subpena or order of the President

issued under this subsection, issue an order requiring compliance

therewith, and any failure to obey an order of the court may be

punished by the court as a contempt thereof.

(b) Reporting of prices and volumes

In issuing any order under section 3362 or 3363 of this title,

the President shall require that the prices and volumes of natural

gas delivered, transported, or contracted for pursuant to such

order shall be reported to him on a weekly basis. Such reports

shall be made available to the Congress.

The President shall report to the Congress, not later than 90

days following the termination under section 3361(b) of this title

of any declaration of a natural gas supply emergency (or extension

thereof) under section 3361(a) of this title, respecting the

exercise of authority under section 3361, 3362, 3363 of this title,

or this section.

(d) Delegation of authorities

The President may delegate all or any portion of the authority

granted to him under section 3361, 3362, 3363 of this title, or

this section to such Federal officers or agencies as he determines

appropriate, and may authorize such redelegation as may be

appropriate. Except with respect to section 552 of title 5, any

Federal officer or agency to which authority is delegated or

redelegated under this subsection shall be subject only to such

procedural requirements respecting the exercise of such authority

as the President would be subject to if such authority were not so

delegated.

(e) Antitrust protections

(1) Defenses

There shall be available as a defense for any person to civil

or criminal action brought for violation of the Federal antitrust

laws (or any similar law of any State) with respect to any action

taken, or meeting held, pursuant to any order of the President

under section 3363(b), (c), (d), or (i) of this title, or any

meeting held pursuant to a request of the President under section

3363(g) of this title, if -

(A) such action was taken or meeting held solely for the

purpose of complying with the President's request or order;

(B) such action was not taken for the purpose of injuring

competition; and

paragraph (2).

Persons interposing the defense provided by this subsection shall

have the burden of proof, except that the burden shall be on the

person against whom the defense is asserted with respect to

whether the actions were taken for the purpose of injuring

competition.

(2) Requirements of meetings

With respect to any meeting held pursuant to a request by the

President under section 3363(g) of this title or pursuant to an

order under section 3363 of this title -

(A) there shall be present at such meeting a full-time

Federal employee designated for such purposes by the Attorney

General;

(B) a full and complete record of such meeting shall be taken

and deposited, together with any agreements resulting

therefrom, with the Attorney General, who shall make it

available for public inspection and copying;

shall have the opportunity to participate from the beginning in

the development and carrying out of agreements and actions

under section 3363 of this title, in order to propose any

alternative which would avoid or overcome, to the greatest

extent practicable, possible anticompetitive effects while

achieving substantially the purposes of section 3363 of this

title and any order thereunder; and

(D) such other procedures as may be specified by the

President in such request or order shall be complied with.

(f) Effect on certain contractual obligations

There shall be available as a defense to any action brought for

breach of contract under Federal or State Law arising out of any

act or omission that such act was taken or that such omission

occurred for purposes of complying with any order issued under

section 3363 of this title.

(g) Preemption

Any order issued pursuant to this subchapter shall preempt any

provision of any program for the allocation, emergency delivery,

transportation, or purchase of natural gas established by any State

or local government if such program is in conflict with any such

order.

-SOURCE-

(Pub. L. 95-621, title III, Sec. 304, Nov. 9, 1978, 92 Stat. 3387.)

-EXEC-

EX. ORD. NO. 12235. ASSIGNMENT OF MANAGEMENT RESPONSIBILITY IN

CASES OF NATURAL GAS EMERGENCIES

Ex. Ord. No. 12235, Sept. 3, 1980, 45 F.R. 58803, provided:

By the authority vested in me as President by the Constitution

and statutes of the United States of America, including Section

304(d) of the Natural Gas Policy Act of 1978 (92 Stat. 3387; 15

U.S.C. 3364(d)) and Section 301 of Title 3 of the United States

Code, and in order to assign management responsibility in case of a

natural gas supply emergency, it is hereby ordered as follows:

1-101. The functions vested in the President by Sections 301

through 304(c) of the Natural Gas Policy Act of 1978 (92 Stat.

3381-3387; 15 U.S.C. 3361-3364(c)) are delegated to the Secretary

of Energy; except for the authority to declare, extend, and

terminate a natural gas supply emergency pursuant to Section 301

thereof (15 U.S.C. 3361).

1-102. The functions vested in the President by Section 607 of

the Public Utility Regulatory Policies Act of 1978 (92 Stat. 3171;

15 U.S.C. 717z) are delegated to the Secretary of Energy; except

for the authority to declare, extend, and terminate a natural gas

supply emergency pursuant to Section 607(a) and (b) thereof (15

U.S.C. 717z(a) and (b)).

1-103. The Secretary shall consult with the Administrator of the

Environmental Protection Agency, the Director of the Federal

Emergency Management Agency, and the heads of other executive

agencies in exercising the functions delegated to him by this

Order.

1-104. All functions delegated to the Secretary by this Order may

be redelegated, in whole or in part, to the head of any other

agency.

1-105. All Executive agencies shall, to the extent permitted by

law, cooperate with and assist the Secretary in carrying out the

functions delegated to him by this Order. Jimmy Carter.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3416 of this title.

-CITE-

15 USC Part B - Other Authorities and Requirements 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part B - Other Authorities and Requirements

-HEAD-

Part B - Other Authorities and Requirements

-CITE-

15 USC Sec. 3371 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part B - Other Authorities and Requirements

-HEAD-

Sec. 3371. Authorization of certain sales and transportation

-STATUTE-

(a) Commission approval of transportation

(1) Interstate pipelines

(A) In general

The Commission may, by rule or order, authorize any

interstate pipeline to transport natural gas on behalf of -

(i) any intrastate pipeline; and

(ii) any local distribution company.

(B) Just and reasonable rates

The rates and charges of any interstate pipeline with respect

to any transportation authorized under subparagraph (A) shall

be just and reasonable (within the meaning of the Natural Gas

Act (15 U.S.C. 717 et seq.)).

(2) Intrastate pipelines

(A) In general

The Commission may, by rule or order, authorize any

intrastate pipeline to transport natural gas on behalf of -

(i) any interstate pipeline; and

(ii) any local distribution company served by any

interstate pipeline.

(B) Rates and charges

(i) Maximum fair and equitable price

The rates and charges of any intrastate pipeline with

respect to any transportation authorized under subparagraph

(A), including any amount computed in accordance with the

rule prescribed under clause (ii), shall be fair and

equitable and may not exceed an amount which is reasonably

comparable to the rates and charges which interstate

pipelines would be permitted to charge for providing similar

transportation service.

(ii) Commission rule

The Commission shall, by rule, establish the method for

calculating an amount necessary to -

(I) reasonably compensate any intrastate pipeline for

expenses incurred by the pipeline and associated with the

providing of any gathering, treatment, processing,

transportation, delivery, or similar service provided by

such pipeline in connection with any transportation of

natural gas authorized under subparagraph (A); and

(II) provide an opportunity for such pipeline to earn a

reasonable profit on such services.

(b) Commission approval of sales

(1) In general

The Commission may, by rule or order, authorize any intrastate

pipeline to sell natural gas to -

(A) any interstate pipeline; and

(B) any local distribution company served by any interstate

pipeline.

(2) Rates and charges

(A) Maximum fair and equitable price

The rates and charges of any intrastate pipeline with respect

to any sale of natural gas authorized under paragraph (1) shall

be fair and equitable and may not exceed the sum of -

(i) such intrastate pipeline's weighted average acquisition

cost of natural gas;

(ii) an amount, computed in accordance with the rule

prescribed under subparagraph (B); and

(iii) any adjustment permitted under subparagraph (C).

(B) Commission rule

The Commission shall, by rule, establish the method for

calculating an amount necessary to -

(i) reasonably compensate any intrastate pipeline for

expenses incurred by the pipeline and associated with the

providing of any gathering, treatment, processing,

transportation, or delivery service provided by such pipeline

in connection with any sale of natural gas authorized under

paragraph (1); and

(ii) provide an opportunity for such pipeline to earn a

reasonable profit on such services.

(i) Application

This subparagraph shall apply in any case in which, in

order to deliver any volume of natural gas pursuant to any

sale authorized under paragraph (1), any intrastate pipeline

acquires quantities of natural gas under any existing

contract, if -

(I) such intrastate pipeline acquires any volume of

natural gas under such contract in excess of that which

such pipeline would otherwise have acquired; and

(II) the price paid for such additional volume of natural

gas acquired under such contract is greater than such

pipeline's weighted average acquisition cost of natural

gas, computed without regard to the acquisition of such

additional volume of natural gas.

(ii) Commission adjustment

In any case to which this subparagraph applies, the

Commission shall permit an adjustment to the maximum fair and

equitable price provided under subparagraph (A) to increase

the revenue to the intrastate pipeline under such sale by an

amount determined by the Commission to be adequate to offset

the additional cost incurred by such pipeline due to any

increase in such pipeline's weighted average acquisition cost

of natural gas.

(3) Limitation

(A) Two-year duration

No authorization of any sale (or any extension thereof) under

paragraph (1) may be for a period exceeding two years.

(B) Extension

Any authorization of any sale under paragraph (1), and any

extension of any such authorization under this subparagraph,

may be extended by the Commission if such extension satisfies

the requirements of this subsection.

(4) Adequacy of service to intrastate customers

Any sale authorized under paragraph (1) shall be subject to

interruption to the extent that natural gas subject to such sale

is required to enable the intrastate pipeline involved to provide

adequate service to such pipeline's customers at the time of such

sale.

(5) Procedural requirements

(A) Affidavit

Any application for authorization of any sale under paragraph

(1) shall be accompanied by an affidavit filed by the

intrastate pipeline involved and setting forth -

(i) the identity of the interstate pipeline or local

distribution company involved;

(ii) each point of delivery of the natural gas from the

intrastate pipeline;

(iii) the estimated total and daily volumes of natural gas

subject to such sale;

(iv) the price or prices of such volumes; and

(v) such other information as the Commission may, by rule,

require.

(B) Verification of compliance

Any application for authorization of any sale under paragraph

(1) shall be accompanied by a statement by the intrastate

pipeline involved verifying by oath or affirmation that such

sale, if authorized, would comply with all requirements

applicable to such sale under this subsection and all terms and

conditions established, by rule or order, by the Commission and

applicable to such sale.

(6) Termination of sales

(A) Hearing

Upon complaint of any interested person, or upon the

Commission's own motion, the Commission shall, after affording

an opportunity for oral presentation of views and arguments,

terminate any sale authorized under paragraph (1) if the

Commission determines -

(i) such termination is required to enable the intrastate

pipeline involved to provide adequate service to the

customers of such pipeline at the time of such sale;

(ii) such sale involves the sale of natural gas acquired by

the intrastate pipeline involved solely or primarily for the

purpose of resale of such natural gas pursuant to a sale

authorized under paragraph (1);

(iii) such sale violates any requirement of this subsection

or any term or condition established, by rule or order, by

the Commission and applicable to such sale; or

(iv) such sale circumvents or violates any provision of

this chapter.

(B) Suspension pending hearing

Prior to any hearing or determination required under

subparagraph (A), upon complaint of any interested person or

upon the Commission's own motion, the Commission may suspend

any sale authorized under paragraph (1) if the Commission finds

that it is likely that the determinations described in

subparagraph (A) will be made following the hearing required

under subparagraph (A).

The determination of whether any interruption of any sale

authorized under paragraph (1) is required under subparagraph

(A)(i) shall be made by the Commission without regard to the

character of the use of natural gas by any customer of the

intrastate pipeline involved.

(D) State intervention

Any interested State may intervene as a matter of right in

any proceeding before the Commission relating to any

determination under this section.

(7) Disapproval of application

The Commission shall disapprove any application for

authorization of any sale under paragraph (1) if the Commission

determines -

(A) such sale would impair the ability of the intrastate

pipeline involved to provide adequate service to its customers

at the time of such sale (without regard to the character of

the use of natural gas by such customer);

(B) such sale would involve the sale of natural gas acquired

by the intrastate pipeline involved solely or primarily for the

purpose of resale of such natural gas pursuant to a sale

authorized under paragraph (1);

subsection or any term or condition established, by rule or

order, by the Commission and applicable to such sale; or

(D) such sale would circumvent or violate any provision of

this chapter.

Any authorization granted under this section shall be under such

terms and conditions as the Commission may prescribe.

-SOURCE-

(Pub. L. 95-621, title III, Sec. 311, Nov. 9, 1978, 92 Stat. 3388.)

-REFTEXT-

REFERENCES IN TEXT

The Natural Gas Act, referred to in subsec. (a)(1)(B), is act

June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is

classified generally to chapter 15B (Sec. 717 et seq.) of this

title. For complete classification of this act to the Code, see

section 717w of this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3374, 3431, 3432 of this

title.

-CITE-

15 USC Sec. 3372 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part B - Other Authorities and Requirements

-HEAD-

Sec. 3372. Assignment of contractual rights to receive surplus

natural gas

-STATUTE-

(a) Authorization of assignments

The Commission may, by rule or order, authorize any intrastate

pipeline to assign, without compensation, to any interstate

pipeline or local distribution company all or any portion of such

intrastate pipeline's right to receive surplus natural gas at any

first sale, upon such terms and conditions as the Commission

determines appropriate.

(b) Effect of authorization under subsection (a)

For the effect of an authorization under subsection (a) of this

section, see section 3431 of this title (relating to the

coordination of this chapter with the Natural Gas Act (15 U.S.C.

717 et seq.)).

For purposes of this section, the term ''surplus natural gas''

means any natural gas which is determined, by the State agency

having regulatory jurisdiction over the intrastate pipeline which

would be entitled to receive such natural gas in the absence of any

assignment to exceed the then current demands on such pipeline for

natural gas.

-SOURCE-

(Pub. L. 95-621, title III, Sec. 312, Nov. 9, 1978, 92 Stat. 3392;

Pub. L. 101-60, Sec. 3(b)(2), July 26, 1989, 103 Stat. 158.)

-REFTEXT-

REFERENCES IN TEXT

The Natural Gas Act, referred to in subsec. (b), is act June 21,

1938, ch. 556, 52 Stat. 821, as amended, which is classified

generally to chapter 15B (Sec. 717 et seq.) of this title. For

complete classification of this act to the Code, see section 717w

of this title and Tables.

-MISC2-

AMENDMENTS

1989 - Subsec. (c). Pub. L. 101-60 substituted ''any natural

gas'' for ''any natural gas -

''(1) which is not committed or dedicated to interstate

commerce on November 8, 1978;

''(2) the first sale of which is subject to a maximum lawful

price established under subchapter I of this chapter; and

''(3)''.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 3(b) of Pub. L. 101-60 provided in part that the

amendment by section 3(b)(2) of Pub. L. 101-60 is effective Jan. 1,

1993.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3374, 3431 of this title.

-CITE-

15 USC Sec. 3373 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part B - Other Authorities and Requirements

-HEAD-

Sec. 3373. Effect of certain natural gas prices on indefinite price

escalator clauses

-STATUTE-

(a) High-cost natural gas

No price paid in any first sale of high-cost natural gas (as

defined in section 3317(c) (FOOTNOTE 1) of this title, as such

section was in effect on January 1, 1989) may be taken into account

in applying any indefinite price escalator clause (as defined in

section 3315(b)(3)(B) (FOOTNOTE 1) of this title, as such section

was in effect on January 1, 1989) with respect to any first sale of

any natural gas other than high-cost natural gas (as defined in

section 3317(c) (FOOTNOTE 1) of this title, as such section was in

effect on January 1, 1989).

(FOOTNOTE 1) See References in Text note below.

(b) Other transactions

No price paid -

(1) in any sale authorized under section 3362(a) of this title,

(2) pursuant to any order issued under section 3363(b), (c),

(d), or (g) of this title,

may be taken into account in applying any indefinite price

escalator clause (as defined in section 3315(b)(3)(B) (FOOTNOTE 1)

of this title, as such section was in effect on January 1, 1989).

-SOURCE-

(Pub. L. 95-621, title III, Sec. 313, Nov. 9, 1978, 92 Stat. 3392;

Pub. L. 101-60, Sec. 3(b)(3), July 26, 1989, 103 Stat. 159.)

-REFTEXT-

REFERENCES IN TEXT

Sections 3315 and 3317 of this title, referred to in text, were

repealed effective Jan. 1, 1993, by Pub. L. 101-60, Sec. 2(b), July

26, 1989, 103 Stat. 158.

-MISC2-

AMENDMENTS

1989 - Pub. L. 101-60 inserted '', as such section was in effect

on January 1, 1989'' in four places.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-60 effective Jan. 1, 1993, see section

3(b) of Pub. L. 101-60, set out as a note under section 3372 of

this title.

-CITE-

15 USC Sec. 3374 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part B - Other Authorities and Requirements

-HEAD-

Sec. 3374. Clauses prohibiting certain sales, transportation, and

commingling

-STATUTE-

(a) General rule

Any provision of any contract for the first sale of natural gas

is hereby declared against public policy and unenforceable with

respect to any natural gas covered by this chapter if such

provision -

(1) prohibits the commingling of natural gas subject to such

contract with natural gas subject to the jurisdiction of the

Commission under the provisions of the Natural Gas Act (15 U.S.C.

717 et seq.);

(2) prohibits the sale of any natural gas subject to such

contract to, or transportation of any such natural gas by, any

person subject to the jurisdiction of the Commission under the

Natural Gas Act (15 U.S.C. 717 et seq.), or otherwise prohibits

the sale or transportation in interstate commerce (within the

meaning of the Natural Gas Act) of natural gas subject to such

contract; or

(3) terminates, or grants any party the option to terminate,

any obligation under any such contract as a result of such

commingling, sale, or transportation.

(b) Natural gas covered by this chapter

For purposes of subsection (a) of this section, the term

''natural gas covered by this chapter'' means -

(1) natural gas which is not committed or dedicated to

interstate commerce as of November 8, 1978;

(2) natural gas, the sale in interstate commerce of which -

(A) is authorized under section 3362(a) or 3371(b) of this

title; or

(B) is pursuant to an assignment under section 3372(a) of

this title; and,

(3) natural gas, the transportation in interstate commerce of

which is -

(A) pursuant to any order under section 3362(c) or section

3363(b), (c), (d), or (h) of this title; or

(B) authorized by the Commission under section 3371(a) of

this title.

-SOURCE-

(Pub. L. 95-621, title III, Sec. 314, Nov. 9, 1978, 92 Stat. 3392.)

-REFTEXT-

REFERENCES IN TEXT

The Natural Gas Act, referred to in subsec. (a)(1), (2), is act

June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is

classified generally to chapter 15B (Sec. 717 et seq.) of this

title. For complete classification of this act to the Code, see

section 717w of this title and Tables.

-CITE-

15 USC Sec. 3375 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER III - ADDITIONAL AUTHORITIES AND REQUIREMENTS

Part B - Other Authorities and Requirements

-HEAD-

Sec. 3375. Filing of contracts and agreements

-STATUTE-

The Commission may, by rule or order, require any first sale

purchaser of natural gas under a new contract, a successor to an

existing contract, or a rollover contract to file with the

Commission a copy of such contract, together with all ancillary

agreements and any existing contract applicable to such natural

gas.

-SOURCE-

(Pub. L. 95-621, title III, Sec. 315, Nov. 9, 1978, 92 Stat. 3393;

Pub. L. 100-439, Sec. 1, 2(a), (b)(1), Sept. 22, 1988, 102 Stat.

1720; Pub. L. 101-60, Sec. 3(a)(2), July 26, 1989, 103 Stat. 158.)

-MISC1-

AMENDMENTS

1989 - Pub. L. 101-60, in section catchline, substituted ''Filing

of contracts and agreements'' for ''Contract duration; filing of

contracts and agreements'', and in text, struck out subsec. (a)

designation, heading ''Contract duration'', and text relating to

power of Commissioner to specify minimum duration of contracts for

purchase of natural gas and requiring nondiscriminatory exercise of

such authority, and struck out subsec. (b) designation and heading

''Filing of contracts and ancillary agreements''.

1988 - Pub. L. 100-439, Sec. 2(b)(1), struck out ''right of first

refusal;'' after ''Contract duration;'' in section catchline.

Subsec. (a)(1). Pub. L. 100-439, Sec. 1, struck out last sentence

which directed that provisions of par. (1) did not apply to

contracts of natural gas subject to requirements of par. (3).

Subsec. (a)(3). Pub. L. 100-439, Sec. 1, struck out par. (3)

which related to contracts for purchase of natural gas produced

from reservoirs on Outer Continental Shelf.

Subsecs. (b), (c). Pub. L. 100-439, Sec. 2(a), redesignated

subsec. (c) as (b) and struck out former subsec. (b) which related

to certain rights of first refusal with respect to certain natural

gas committed or dedicated to interstate commerce on November 8,

1978.

-CITE-

15 USC SUBCHAPTER IV - NATURAL GAS CURTAILMENT POLICIES 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER IV - NATURAL GAS CURTAILMENT POLICIES

-HEAD-

SUBCHAPTER IV - NATURAL GAS CURTAILMENT POLICIES

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in title 42 section 8235e.

-CITE-

15 USC Sec. 3391 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER IV - NATURAL GAS CURTAILMENT POLICIES

-HEAD-

Sec. 3391. Natural gas for essential agricultural uses

-STATUTE-

(a) General rule

Not later than 120 days after November 9, 1978, the Secretary of

Energy shall prescribe and make effective a rule, which may be

amended from time to time, which provides that, notwithstanding any

other provision of law (other than subsection (b) of this section)

and to the maximum extent practicable, no curtailment plan of an

interstate pipeline may provide for curtailment of deliveries of

natural gas for any essential agricultural use, unless such

curtailment -

(1) does not reduce the quantity of natural gas delivered for

such use below the use requirement specified in subsection (c) of

this section; or

(2) is necessary in order to meet the requirements of

high-priority users.

(b) Curtailment priority not applicable if alternative fuel

available

If the Commission, in consultation with the Secretary of

Agriculture, determines, by rule or order, that use of a fuel

(other than natural gas) is economically practicable and that the

fuel is reasonably available as an alternative for any agricultural

use of natural gas, the provisions of subsection (a) of this

section shall not apply with respect to any curtailment of

deliveries for such use.

The Secretary of Agriculture shall certify to the Secretary of

Energy and the Commission the natural gas requirements (expressed

either as volumes or percentages of use) of persons (or classes

thereof) for essential agricultural uses in order to meet the

requirements of full food and fiber production.

(d) Authority of Secretary of Agriculture to intervene

The Secretary of Agriculture may intervene as a matter of right

in any proceeding before the Commission which is conducted in

connection with implementing the requirements of the rule

prescribed under subsection (a) of this section.

(e) Limitation

The Secretary of Agriculture may not exercise any authority under

this section for the purpose of restricting the production of any

crop.

(f) Definitions

For purposes of this section -

(1) Essential agricultural use

The term ''essential agricultural use'', when used with respect

to natural gas, means any use of natural gas -

(A) for agricultural production, natural fiber production,

natural fiber processing, food processing, food quality

maintenance, irrigation pumping, crop drying, or

(B) as a process fuel or feedstock in the production of

fertilizer, agricultural chemicals, animal feed, or food,

which the Secretary of Agriculture determines is necessary for

full food and fiber production.

(2) High-priority user

The term ''high-priority user'' means any person who -

(A) uses natural gas in a residence;

(B) uses natural gas in a commercial establishment in amounts

of less than 50 Mcf on a peak day;

institution; or

(D) uses natural gas in any other use the curtailment of

which the Secretary of Energy determines would endanger life,

health, or maintenance of physical property.

-SOURCE-

(Pub. L. 95-621, title IV, Sec. 401, Nov. 9, 1978, 92 Stat. 3394.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3391a, 3392, 3393 of this

title.

-CITE-

15 USC Sec. 3391a 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER IV - NATURAL GAS CURTAILMENT POLICIES

-HEAD-

Sec. 3391a. ''Essential agricultural use'' defined

-STATUTE-

For the purposes of section 3391 of this title, the term

''essential agricultural use'' shall -

(1) include use of natural gas in sugar refining for production

of alcohol;

(2) include use of natural gas for agricultural production on

set-aside acreage or acreage diverted from the production of a

commodity (as provided under the Agricultural Act of 1949 (7

U.S.C. 1421 et seq.)) to be devoted to the production of any

commodity for conversion into alcohol or hydrocarbons for use as

motor fuel or other fuels; and

(3) for the 5-year period beginning on June 30, 1980, include

use of natural gas in the distillation of fuel-grade alcohol from

food grains or other biomass by facilities in existence on June

30, 1980, which do not have the installed capability to burn coal

lawfully.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 273, June 30, 1980, 94 Stat. 711.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Act of 1949, referred to in par. (2), is act

Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended, which is

classified principally to chapter 35A (Sec. 1421 et seq.) of Title

7, Agriculture. For complete classification of this Act to the

Code, see Short Title note set out under section 1421 of Title 7

and Tables.

-COD-

CODIFICATION

Section was enacted as part of the Biomass Energy and Alcohol

Fuels Act of 1980 which is title II of the Energy Security Act, and

not as part of the Natural Gas Policy Act of 1978 which comprises

this chapter.

-CITE-

15 USC Sec. 3392 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER IV - NATURAL GAS CURTAILMENT POLICIES

-HEAD-

Sec. 3392. Natural gas for essential industrial process and

feedstock uses

-STATUTE-

(a) General rule

The Secretary of Energy shall prescribe and make effective a rule

which provides that, notwithstanding any other provision of law

(other than subsection (b) of this section) and to the maximum

extent practicable, no interstate pipeline may curtail deliveries

of natural gas for any essential industrial process or feedstock

use, unless such curtailment -

(1) does not reduce the quantity of natural gas delivered for

such use below the use requirement specified in subsection (c) of

this section;

(2) is necessary in order to meet the requirements of

high-priority users; or

(3) is necessary in order to meet the requirements for

essential agricultural uses of natural gas for which curtailment

priority is established under section 3391 of this title.

(b) Curtailment priority applicable only if alternative fuel not

available

The provisions of subsection (a) of this section shall apply with

respect to any curtailment of deliveries for any essential

industrial process or feedstock use only if the Commission

determines that use of a fuel (other than natural gas) is not

economically practicable and that no fuel is reasonably available

as an alternative for such use.

The Secretary of Energy shall determine and certify to the

Commission the natural gas requirements (expressed either as

volumes or percentages of use) of persons (or classes thereof) for

essential industrial process and feedstock uses (other than those

referred to in section 3391(f)(1)(B) of this title).

(d) Definitions

For purposes of this section -

(1) Essential industrial process or feedstock use

The term ''essential industrial process or feedstock use''

means any use of natural gas in an industrial process or as a

feedstock which the Secretary determines is essential.

(2) High-priority user

The term ''high-priority user'' has the same meaning as given

such term in section 3391(f)(2) of this title.

-SOURCE-

(Pub. L. 95-621, title IV, Sec. 402, Nov. 9, 1978, 92 Stat. 3395.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3393 of this title.

-CITE-

15 USC Sec. 3393 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER IV - NATURAL GAS CURTAILMENT POLICIES

-HEAD-

Sec. 3393. Establishment and implementation of priorities

-STATUTE-

(a) Establishment of priorities

The Secretary of Energy shall prescribe the rules under sections

3391 and 3392 of this title pursuant to his authority under the

Department of Energy Organization Act (42 U.S.C 7101 et seq.) to

establish and review priorities for curtailments under the Natural

Gas Act (15 U.S.C. 717 et seq.).

(b) Implementation of priorities

The Commission shall implement the rules prescribed under

sections 3391 and 3392 of this title pursuant to its authority

under the Department of Energy Organization Act (42 U.S.C. 7101 et

seq.) to establish, review, and enforce curtailments under the

Natural Gas Act (15 U.S.C. 717 et seq.).

-SOURCE-

(Pub. L. 95-621, title IV, Sec. 403, Nov. 9, 1978, 92 Stat. 3396.)

-REFTEXT-

REFERENCES IN TEXT

The Department of Energy Organization Act, referred to in

subsecs. (a) and (b), is Pub. L. 95-91, Aug. 4, 1977, 91 Stat. 565,

as amended, which is classified principally to chapter 84 (Sec.

7101 et seq.) of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see Short Title

note set out under section 7101 of Title 42 and Tables.

The Natural Gas Act, referred to in subsecs. (a) and (b), is act

June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is

classified generally to chapter 15B (Sec. 717 et seq.) of this

title. For complete classification of this act to the Code, see

section 717w of this title and Tables.

-CITE-

15 USC Sec. 3394 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER IV - NATURAL GAS CURTAILMENT POLICIES

-HEAD-

Sec. 3394. Limitation on revoking or amending certain pre-1969

certificates of public convenience and necessity

-STATUTE-

(a) General rule

The Commission may not, during the 10-year period beginning on

November 9, 1978, revoke or amend any certificate of public

convenience and necessity issued before January 1, 1969, under

section 7 of the Natural Gas Act (15 U.S.C. 717f) for the

transportation of natural gas owned by any electric utility except

upon the application of the person to whom such certificate was

issued.

(b) Commission curtailment authority

The limitation under subsection (a) of this section shall not

affect the authority of the Commission to enforce any curtailment

of deliveries of natural gas under the Natural Gas Act (15 U.S.C.

717 et seq.).

-SOURCE-

(Pub. L. 95-621, title IV, Sec. 404, Nov. 9, 1978, 92 Stat. 3396.)

-REFTEXT-

REFERENCES IN TEXT

The Natural Gas Act, referred to in subsec. (b), is act June 21,

1938, ch. 556, 52 Stat. 821, as amended, which is classified

generally to chapter 15B (Sec. 717 et seq.) of this title. For

complete classification of this act to the Code, see section 717w

of this title and Tables.

-CITE-

15 USC SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND

REVIEW 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-HEAD-

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-CITE-

15 USC Sec. 3411 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-HEAD-

Sec. 3411. General rulemaking authority

-STATUTE-

(a) In general

Except where expressly provided otherwise, the Commission shall

administer this chapter. The Commission, or any other Federal

officer or agency in which any function under this chapter is

vested or delegated, is authorized to perform any and all acts

(including any appropriate enforcement activity), and to prescribe,

issue, amend, and rescind such rules and orders as it may find

necessary or appropriate to carry out its functions under this

chapter.

(b) Authority to define terms

Except where otherwise expressly provided, the Commission is

authorized to define, by rule, accounting, technical, and trade

terms used in this chapter. Any such definition shall be

consistent with the definitions set forth in this chapter.

-SOURCE-

(Pub. L. 95-621, title V, Sec. 501, Nov. 9, 1978, 92 Stat. 3396;

Pub. L. 101-60, Sec. 3(b)(4), July 26, 1989, 103 Stat. 159.)

-MISC1-

AMENDMENTS

1989 - Subsec. (c). Pub. L. 101-60 struck out subsec. (c) which

authorized Commission to delegate to any State agency (with consent

of such agency) any of its functions with respect to sections 3315,

3316(b), and 3319(a)(1) and (3) of this title.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-60 effective Jan. 1, 1993, see section

3(b) of Pub. L. 101-60, set out as a note under section 3372 of

this title.

-CITE-

15 USC Sec. 3412 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-HEAD-

Sec. 3412. Administrative procedure

-STATUTE-

(a) Administrative Procedure Act

Subject to subsection (b) of this section, the provisions of

subchapter II of chapter 5 of title 5 shall apply to any rule or

order issued under this chapter having the applicability and effect

of a rule as defined in section 551(4) of title 5; except that

sections 554, 556, and 557 of such title 5 shall not apply to any

order under such section 3361, 3362, or 3363 of this title.

(b) Opportunity for oral presentations

To the maximum extent practicable, an opportunity for oral

presentation of data, views, and arguments shall be afforded with

respect to any proposed rule or order described in subsection (a)

of this section (other than an order under section 3361, 3362, or

3363 of this title). To the maximum extent practicable, such

opportunity shall be afforded before the effective date of such

rule or order. Such opportunity shall be afforded no later than 30

days after such date in the case of a waiver of the entire comment

period under section 553(d)(3) of title 5, and no later than 45

days after such date in all other cases. A transcript shall be

made of any such oral presentation.

The Commission or any other Federal officer or agency authorized

to issue rules or orders described in subsection (a) of this

section (other than an order under section 3361, 3362, or 3363 of

this title) shall, by rule, provide for the making of such

adjustments, consistent with the other purposes of this chapter, as

may be necessary to prevent special hardship, inequity, or an

unfair distribution of burdens. Such rule shall establish

procedures which are available to any person for the purpose of

seeking an interpretation, modification, or rescission of,

exception to, or exemption from, such applicable rules or orders.

If any person is aggrieved or adversely affected by the denial of a

request for adjustment under the preceding sentence, such person

may request a review of such denial by the officer or agency and

may obtain judicial review in accordance with section 3416 of this

title when such denial becomes final. The officer or agency shall,

by rule, establish procedures, including an opportunity for oral

presentation of data, views, and arguments, for considering

requests for adjustment under this subsection.

-SOURCE-

(Pub. L. 95-621, title V, Sec. 502, Nov. 9, 1978, 92 Stat. 3397;

Pub. L. 101-60, Sec. 3(a)(3), July 26, 1989, 103 Stat. 158.)

-MISC1-

AMENDMENTS

1989 - Subsec. (d). Pub. L. 101-60 struck out subsec. (d) which

directed that any determination made under section 3347(c) of this

title be made in accordance with procedures applicable to the

granting of any authority under the Natural Gas Act to import

natural gas or liquefied natural gas (as the case might be).

-CITE-

15 USC Sec. 3413 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-HEAD-

Sec. 3413. Repealed. Pub. L. 101-60, Sec. 3(b)(5), July 26, 1989,

103 Stat. 159

-MISC1-

Section, Pub. L. 95-621, title V, Sec. 503, Nov. 9, 1978, 92

Stat. 3397, related to various determinations to be made by State

or Federal agencies for qualifying under certain categories of

natural gas.

EFFECTIVE DATE OF REPEAL

Repeal effective Jan. 1, 1993, see section 3(b) of Pub. L.

101-60, set out as an Effective Date of 1989 Amendment note under

section 3372 of this title.

-CITE-

15 USC Sec. 3414 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-HEAD-

Sec. 3414. Enforcement

-STATUTE-

(a) General rule

It shall be unlawful for any person to violate any provision of

this chapter or any rule or order under this chapter.

(b) Civil enforcement

(1) In general

Except as provided in paragraph (2), whenever it appears to the

Commission that any person is engaged or about to engage in any

act or practice which constitutes or will constitute a violation

of any provision of this chapter, or of any rule or order

thereunder, the Commission may bring an action in the District

Court of the United States for the District of Columbia or any

other appropriate district court of the United States to enjoin

such act or practice and to enforce compliance with this chapter,

or any rule or order thereunder.

(2) Enforcement of emergency orders

Whenever it appears to the President that any person has

engaged, is engaged, or is about to engage in acts or practices

constituting a violation of any order under section 3362 of this

title or any order or supplemental order issued under section

3363 of this title, the President may bring a civil action in any

appropriate district court of the United States to enjoin such

acts or practices.

(3) Repealed. Pub. L. 101-60, Sec. 3(a)(4)(B), July 26, 1989, 103

Stat. 158

(4) Relief available

In any action under paragraph (1) or (2), the court shall, upon

a proper showing, issue a temporary restraining order or

preliminary or permanent injunction without bond. In any such

action, the court may also issue a mandatory injunction

commanding any person to comply with any applicable provision of

law, rule, or order, or ordering such other legal or equitable

relief as the court determines appropriate, including refund or

restitution.

(5) Criminal referral

The Commission may transmit such evidence as may be available

concerning any acts or practices constituting any possible

violations of the Federal antitrust laws to the Attorney General

who may institute appropriate criminal proceedings.

(6) Civil penalties

(A) In general

Any person who knowingly violates any provision of this

chapter, or any provision of any rule or order under this

chapter, shall be subject to -

(i) except as provided in clause (ii) a civil penalty,

which the Commission may assess, of not more than $5,000 for

any one violation; and

(ii) a civil penalty, which the President may assess, of

not more than $25,000, in the case of any violation of an

order under section 3362 of this title or an order or

supplemental order under section 3363 of this title.

(B) ''Knowing'' defined

For purposes of subparagraph (A) the term ''knowing'' means

the having of -

(i) actual knowledge; or

(ii) the constructive knowledge deemed to be possessed by a

reasonable individual who acts under similar circumstances.

For purposes of this paragraph, in the case of a continuing

violation, each day of violation shall constitute a separate

violation.

(D) Statute of limitations

No person shall be subject to any civil penalty under this

paragraph with respect to any violation occurring more than 3

years before the date on which such person is provided notice

of the proposed penalty under subparagraph (E). The preceding

sentence shall not apply in any case in which an untrue

statement of material fact was made to the Commission or a

State or Federal agency by, or acquiesced to by, the violator

with respect to the acts or omissions constituting such

violation, or if there was omitted a material fact necessary in

order to make any statement made by, or acquiesced to by, the

violator with respect to such acts or omissions not misleading

in light of circumstances under such statement was made.

(E) Assessed by Commission

Before assessing any civil penalty under this paragraph, the

Commission shall provide to such person notice of the proposed

penalty. Following receipt of notice of the proposed penalty

by such person, the Commission shall, by order, asssess

(FOOTNOTE 1) such penalty.

(FOOTNOTE 1) So in original. Probably should be ''assess''.

(F) Judicial review

If the civil penalty has not been paid within 60 calendar

days after the assessment order has been made under

subparagraph (E), the Commission shall institute an action in

the appropriate district court of the United States for an

order affirming the assessment of the civil penalty. The court

shall have authority to review de novo the law and the facts

involved, and shall have jurisdiction to enter a judgment

enforcing, modifying, and enforcing as so modified, or setting

aside in whole or in part, such assessment.

(1) Violations of chapter

Except in the case of violations covered under paragraph (3),

any person who knowingly and willfully violates any provision of

this chapter shall be subject to -

(A) a fine of not more than $5,000; or

(B) imprisonment for not more than two years; or

(2) Violation of rules or orders generally

Except in the case of violations covered under paragraph (3),

any person who knowingly and willfully violates any rule or order

under this chapter (other than an order of the Commission

assessing a civil penalty under subsection (b)(4)(E) of this

section), shall be subject to a fine of not more than $500 for

each violation.

(3) Violations of emergency orders

Any person who knowingly and willfully violates an order under

section 3362 of this title or an order or supplemental order

under section 3363 of this title shall be fined not more than

$50,000 for each violation.

(4) Each day separate violation

For purposes of this subsection, each day of violation shall

constitute a separate violation.

(5) ''Knowingly'' defined

For purposes of this subsection, the term ''knowingly'', when

used with respect to any act or omission by any person, means

such person -

(A) had actual knowledge; or

(B) had constructive knowledge deemed to be possessed by a

reasonable individual who acts under similar circumstances.

-SOURCE-

(Pub. L. 95-621, title V, Sec. 504, Nov. 9, 1978, 92 Stat. 3401;

Pub. L. 101-60, Sec. 3(a)(4), (b)(6), July 26, 1989, 103 Stat. 158,

159.)

-MISC1-

AMENDMENTS

1989 - Subsec. (a). Pub. L. 101-60, Sec. 3(b)(6), struck out par.

(2) designation and par. (1) making it unlawful to sell natural gas

at a first sale price in excess of any applicable maximum lawful

price under this chapter.

Subsec. (b). Pub. L. 101-60, Sec. 3(a)(4), substituted

''paragraph (2)'' for ''paragraphs (2) and (3)'' in par. (1),

struck out par. (3) which related to enforcement of incremental

pricing, and substituted ''paragraph (1) or (2)'' for ''paragraph

(1), (2), or (3)'' in par. (4).

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 3(b)(6) of Pub. L. 101-60 effective Jan. 1,

1993, see section 3(b) of Pub. L. 101-60, set out as a note under

section 3372 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3416 of this title.

-CITE-

15 USC Sec. 3415 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-HEAD-

Sec. 3415. Intervention

-STATUTE-

(a) Authority to intervene

(1) Intervention as matter of right

The Secretary of Energy may intervene as a matter of right in

any proceeding relating to the prorationing of, or other

limitations upon, natural gas production which is conducted by

any State agency having regulatory jurisdiction over the

production of natural gas.

(2) Enforcement of right to intervene

The Secretary may bring an action in any appropriate court of

the United States to enforce his right to intervene under

paragraph (1).

(3) Access to information

As an intervenor in a proceeding described in subsection (a) of

this section, the Secretary shall have access to information

available to other parties to the proceeding if such information

is relevant to the issues to which his participation in such

proceeding relates. Such information may be obtained through

reasonable rules relating to discovery of information prescribed

by the State agency.

(b) Access to State courts

(1) Review in State courts

The Secretary may obtain review of any determination made in

any proceeding described in subsection (a)(1) of this section in

the appropriate State court if the Secretary intervened or

otherwise participated in the original proceeding or if State law

otherwise permits such review.

(2) Participation as amicus curiae

In addition to his authority to obtain review under paragraph

(1), the Secretary may also participate an (FOOTNOTE 1) amicus

curiae in any judicial review of any proceeding described in

subsection (a)(1) of this section.

(FOOTNOTE 1) So in original. Probably should be ''as''.

-SOURCE-

(Pub. L. 95-621, title V, Sec. 505, Nov. 9, 1978, 92 Stat. 3403.)

-CITE-

15 USC Sec. 3416 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-HEAD-

Sec. 3416. Judicial review

-STATUTE-

(a) Orders

(1) In general

The provisions of this subsection shall apply to judicial

review of any order, within the meaning of section 551(6) of

title 5 (other than an order assessing a civil penalty under

section 3414(b)(4) of this title or any order under section 3362

of this title or any order under section 3363 of this title),

issued under this chapter and to any final agency action under

this chapter required to be made on the record after an

opportunity for an agency hearing.

(2) Rehearing

Any person aggrieved by any order issued by the Commission in a

proceeding under this chapter to which such person is a party may

apply for a rehearing within 30 days after the issuance of such

order. Any application for rehearing shall set forth the

specific ground upon which such application is based. Upon the

filing of such application, the Commission may grant or deny the

requested rehearing or modify the original order without further

hearing. Unless the Commission acts upon such application for

rehearing within 30 days after it is filed, such application

shall be deemed to have been denied. No person may bring an

action under this section to obtain judicial review of any order

of the Commission unless -

(A) such person shall have made application to the Commission

for rehearing under this subsection; and

(B) the Commission shall have finally acted with respect to

such application.

For purposes of this section, if the Commission fails to act

within 30 days after the filing of such application, such failure

to act shall be deemed final agency action with respect to such

application.

(3) Authority to modify orders

At any time before the filing of the record of a proceeding in

a United States Court of Appeals, pursuant to paragraph (4), the

Commission may, after providing notice it determines reasonable

and proper, modify or set aside, in whole or in part, any order

issued under the provisions of this chapter.

(4) Judicial review

Any person who is a party to a proceeding under this chapter

aggrieved by any final order issued by the Commission in such

proceeding may obtain review of such order in the United States

Court of Appeals for any circuit in which the party to which such

order relates is located or has its principal place of business,

or in the United States Court of Appeals for the District of

Columbia circuit. Review shall be obtained by filing a written

petition, requesting that such order be modified or set aside in

whole or in part, in such Court of Appeals within 60 days after

the final action of the Commission on the application for

rehearing required under paragraph (2). A copy of such petition

shall forthwith be transmitted by the clerk of such court to any

member of the Commission and thereupon the Commission shall file

with the court the record upon which the order complained of was

entered, as provided in section 2112 of title 28. Upon the filing

of such petition such court shall have jurisdiction, which upon

the filing of the record with it shall be exclusive, to affirm,

modify, or set aside such order in whole or in part. No

objection to such order of the Commission shall be considered by

the court if such objection was not urged before the Commission

in the application for rehearing unless there was reasonable

ground for the failure to do so. The finding of the Commission

as to the facts, if supported by substantial evidence, shall be

conclusive. If any party shall apply to the court for leave to

adduce additional evidence, and shall show to the satisfaction of

the court that such additional evidence is material and that

there were reasonable grounds for failure to adduce such evidence

in the proceedings before the Commission, the court may order

such additional evidence to be taken before the Commission and to

be adduced upon the hearing in such manner and upon such terms

and conditions as the court deems proper. The Commission may

modify its findings as to the facts by reason of the additional

evidence so taken, and shall file with the court such modified or

new findings, which if supported by substantial evidence, shall

be conclusive. The Commission shall also file with the court its

recommendation, if any, for the modification or setting aside of

the original order. The judgment and decree of the court,

affirming, modifying, or setting aside, in whole or in part, any

such order of the Commission, shall be final subject to review by

the Supreme Court of the United States upon certiorari or

certification as provided in section 1254 of title 28.

(5) Orders remain effective

The filing of an application for rehearing under paragraph (2)

shall not, unless specifically ordered by the Commission, operate

as a stay of the Commission's order. The commencement of

proceedings under paragraph (4) shall not, unless specifically

ordered by the court, operate as a stay of the Commission's

order.

(b) Review of rules and orders

Except as provided in subsections (a) and (c) of this section,

judicial review of any rule or order, within the meaning of section

551(4) of title 5, issued under this chapter may be obtained in the

United States Court of Appeals for any appropriate circuit pursuant

to the provisions of chapter 7 of title 5, except that the second

sentence of section 705 thereof shall not apply.

Except with respect to enforcement of orders or subpenas under

section 3364(a) of this title, the United States Court of Appeals

for the Federal Circuit shall have exclusive original jurisdiction

to review all civil cases and controversies under section 3361,

3362 or 3363 of this title, including any order issued, or other

action taken, under such section. The United States Court of

Appeals for the Federal Circuit shall have exclusive jurisdiction

of all appeals from the district courts of the United States in

cases and controversies arising under section 3364(a)(2) of this

title; such appeals shall be taken by the filing of a notice of

appeal with the United States Court of Appeals for the Federal

Circuit within thirty days after the entry of judgment by the

district court. Prior to a final judgment, no court shall have

jurisdiction to grant any injunctive relief to stay or defer the

implementation of any order issued, or action taken, under section

3361, 3362, or 3363 of this title.

-SOURCE-

(Pub. L. 95-621, title V, Sec. 506, Nov. 9, 1978, 92 Stat. 3404;

Pub. L. 101-60, Sec. 3(a)(5), July 26, 1989, 103 Stat. 158; Pub. L.

102-572, title I, Sec. 102(b), Oct. 29, 1992, 106 Stat. 4506.)

-MISC1-

AMENDMENTS

1992 - Subsec. (c). Pub. L. 102-572 substituted ''the United

States Court of Appeals for the Federal Circuit'' for ''the

Temporary Emergency Court of Appeals, established pursuant to

section 211(b) of the Economic Stabilization Act of 1970, as

amended,'' before ''shall have exclusive original jurisdiction''

and substituted ''United States Court of Appeals for the Federal

Circuit'' for ''Temporary Emergency Court of Appeals'' in two

places.

1989 - Subsec. (d). Pub. L. 101-60 struck out subsec. (d) which

related to judicial review of certain incremental pricing

determinations.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-572 effective Jan. 1, 1993, see section

1101 of Pub. L. 102-572, set out as a note under section 905 of

Title 2, The Congress.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3412 of this title; title

28 section 1295.

-CITE-

15 USC Sec. 3417 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-HEAD-

Sec. 3417. Repealed. Pub. L. 101-60, Sec. 3(a)(6), July 26, 1989,

103 Stat. 158

-MISC1-

Section, Pub. L. 95-621, title V, Sec. 507, Nov. 9, 1978, 92

Stat. 3406, related to congressional review of Presidential

reimposition of maximum lawful prices under section 3332 of this

title, congressional reimposition of maximum lawful prices under

section 3332 of this title, and congressional disapproval of

incremental pricing under section 3342(c) or 3346(d)(2) of this

title.

-CITE-

15 USC Sec. 3418 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER V - ADMINISTRATION, ENFORCEMENT, AND REVIEW

-HEAD-

Sec. 3418. Applicability of other Federal statutory provisions

relating to information-gathering

-STATUTE-

In order to obtain information for the purpose of carrying out

its functions under this chapter, the Commission shall have the

same authority as is vested in the Secretary under 7151(a) of title

42 with respect to the exercise of authority under section 796(b)

of this title and section 772(b), (c), and (d) of this title.

-SOURCE-

(Pub. L. 95-621, title V, Sec. 508(b), Nov. 9, 1978, 92 Stat.

3408.)

-CITE-

15 USC SUBCHAPTER VI - COORDINATION WITH NATURAL GAS ACT;

MISCELLANEOUS PROVISIONS 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER VI - COORDINATION WITH NATURAL GAS ACT; MISCELLANEOUS

PROVISIONS

-HEAD-

SUBCHAPTER VI - COORDINATION WITH NATURAL GAS ACT; MISCELLANEOUS

PROVISIONS

-CITE-

15 USC Sec. 3431 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER VI - COORDINATION WITH NATURAL GAS ACT; MISCELLANEOUS

PROVISIONS

-HEAD-

Sec. 3431. Coordination with the Natural Gas Act

-STATUTE-

(a) Jurisdiction of the Commission under the Natural Gas Act

(1) Sales

(A) Application to first sales

For purposes of section 1(b) of the Natural Gas Act (15

U.S.C. 717(b)), the provisions of the Natural Gas Act (15

U.S.C. 717 et seq.), and the jurisdiction of the Commission

under such Act shall not apply to any natural gas solely by

reason of any first sale of such natural gas.

(B) Authorized sales or assignments

For purposes of section 1(b) of the Natural Gas Act (15

U.S.C. 717(b)), the provisions of the Natural Gas Act (15

U.S.C. 717 et seq.) and the jurisdiction of the Commission

under such Act shall not apply by reason of any sale of natural

gas -

(i) authorized under section 3362(a) or 3371(b) of this

title; or

(ii) pursuant to any assigned authorized under section

3372(a) of this title.

For purposes of the Natural Gas Act (15 U.S.C. 717 et seq.),

the term ''natural-gas company'' (as defined in section 2(6) of

such Act (15 U.S.C. 717a(6) et seq.)) shall not include any

person by reason of, or with respect to, any sale of natural

gas if the provisions of the Natural Gas Act and the

jurisdiction of the Commission do not apply to such sale solely

by reason of subparagraph (A) or (B) of this paragraph.

(2) Transportation

(A) Jurisdiction of the Commission

For purposes of section 1(b) of the Natural Gas Act (15

U.S.C. 717(b)) the provisions of such Act (15 U.S.C. 717 et

seq.) and the jurisdiction of the Commission under such Act

shall not apply to any transportation in interstate commerce of

natural gas if such transportation is -

(i) pursuant to any order under section 3362(c) or section

3363(b), (c), (d), or (h) of this title; or

(ii) authorized by the Commission under section 3371(a) of

this title.

(B) Natural-gas company

For purposes of the Natural Gas Act (15 U.S.C. 717 et seq.),

the term ''natural-gas company'' (as defined in section 2(6) of

such Act (15 U.S.C. 717a(6))) shall not include any person by

reason of, or with respect to, any transportation of natural

gas if the provisions of the Natural Gas Act and the

jurisdiction of the Commission under the Natural Gas Act do not

apply to such transportation by reason of subparagraph (A) of

this paragraph.

(b) Charges deemed just and reasonable

(1) Sales

(A) First sales

Except as otherwise provided in this subsection, for purposes

of sections 4 and 5 of the Natural Gas Act, any amount paid in

any first sale of natural gas shall be deemed to be just and

reasonable.

(B) Emergency sales

For purposes of sections 4 and 5 of the Natural Gas Act (15

U.S.C. 717c, 717d), any amount paid in any sale authorized

under section 3362(a) of this title shall be deemed to be just

and reasonable if such amount does not exceed the fair and

equitable price established under such section and applicable

to such sale.

For purposes of sections 4 and 5 of the Natural Gas Act (15

U.S.C. 717c, 717d) any amount paid in any sale authorized by

the Commission under section 3371(b) of this title shall be

deemed to be just and reasonable if such amount does not exceed

the fair and equitable price established by the Commission and

applicable to such sale.

(D) Assignments

For purposes of sections 4 and 5 of the Natural Gas Act (15

U.S.C. 717c, 717d), any amount paid pursuant to the terms of

any contract with respect to that portion of which the

Commission has authorized an assignment authorized under

section 3372(a) of this title shall be deemed to be just and

reasonable.

(E) Affiliated entities limitation

For purposes of paragraph (1), in the case of any first sale

between any interstate pipeline and any affiliate of such

pipeline, any amount paid in any first sale shall be deemed to

be just and reasonable if, in addition to satisfying the

requirements of such paragraph, such amount does not exceed the

amount paid in comparable first sales between persons not

affiliated with such interstate pipeline.

(2) Other charges

(A) Allocation

For purposes of sections 4 and 5 of the Natural Gas Act (15

U.S.C. 717c, 717d), any amount paid by any interstate pipeline

for transportation, storage, delivery or other services

provided pursuant to any order under section 3363(b), (c), or

(d) of this title shall be deemed to be just and reasonable if

such amount is prescribed by the President under section

3363(h)(1) of this title.

(B) Transportation

For purposes of sections 4 and 5 of the Natural Gas Act (15

U.S.C. 717c, 717d), any amount paid by any interstate pipeline

for any transportation authorized by the Commission under

section 3371(a) of this title shall be deemed to be just and

reasonable if such amount does not exceed that approved by the

Commission under such section.

(1) Certificate may not be denied based upon price

The Commission may not deny, or condition the grant of, any

certificate under section 7 of the Natural Gas Act (15 U.S.C.

717f) based upon the amount paid in any sale of natural gas, if

such amount is deemed to be just and reasonable under subsection

(b) of this section.

(2) Recovery of just and reasonable prices paid

For purposes of sections 4 and 5 of the Natural Gas Act (15

U.S.C. 717c, 717d), the Commission may not deny any interstate

pipeline recovery of any amount paid with respect to any purchase

of natural gas if, under subsection (b) of this section, such

amount is deemed to be just and reasonable for purposes of

sections 4 and 5 of such Act, except to the extent the Commission

determines that the amount paid was excessive due to fraud,

abuse, or similar grounds.

-SOURCE-

(Pub. L. 95-621, title VI, Sec. 601, Nov. 9, 1978, 92 Stat. 3409;

Pub. L. 101-60, Sec. 3(a)(7), (b)(7), July 26, 1989, 103 Stat. 158,

159.)

-REFTEXT-

REFERENCES IN TEXT

The Natural Gas Act, referred to in subsec. (a)(1), (2)(A), (B),

is act June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is

classified generally to chapter 15B (Sec. 717 et seq.) of this

title. For complete classification of this act to the Code, see

section 717w of this title and Tables.

-MISC2-

AMENDMENTS

1989 - Subsec. (a)(1)(A). Pub. L. 101-60, Sec. 3(b)(7)(A), in

heading substituted ''Application to first sales'' for ''Natural

gas not committed or dedicated'' and amended text generally. Prior

to amendment, text read as follows: ''For purposes of section 1(b)

of the Natural Gas Act, effective on the first day of the first

month beginning after November 9, 1978, the provisions of the

Natural Gas Act and the jurisdiction of the Commission under such

Act shall not apply to natural gas which was not committed or

dedicated to interstate commerce as of November 8, 1978, solely by

reason of any first sale of such natural gas.''

Subsec. (a)(1)(B). Pub. L. 101-60, Sec. 3(b)(7)(B), (C),

redesignated subpar. (C) as (B) and struck out former subpar. (B)

which related to committed or dedicated natural gas which was

high-cost natural gas, new natural gas, or natural gas produced

from any new, onshore production well.

Subsec. (a)(1)(C). Pub. L. 101-60, Sec. 3(b)(7)(C), (D),

redesignated subpar. (D) as (C) and substituted ''subparagraph (A)

or (B)'' for ''subparagraph (A), (B), or (C)''. Former subpar. (C)

redesignated (B).

Subsec. (a)(1)(D). Pub. L. 101-60, Sec. 3(b)(7)(C), redesignated

subpar. (D) as (C).

Subsec. (a)(1)(E). Pub. L. 101-60, Sec. 3(b)(7)(B), struck out

subpar. (E), ''Certain additional natural gas'', which read as

follows: ''For purposes of section 1(b) of the Natural Gas Act, the

provisions of the Natural Gas Act and the jurisdiction of the

Commission under such Act shall not apply solely by reason of any

first sale of natural gas which is committed or dedicated to

interstate commerce as of July 25, 1989, and which is not subject

to a maximum lawful price under part A of subchapter I of this

chapter by reason of section 3331(f) of this title, effective as of

the date such gas ceases to be subject to such maximum lawful

price.''

Pub. L. 101-60, Sec. 3(a)(7)(A), substituted ''Certain additional

natural gas'' for ''Alaskan natural gas'' in heading and amended

text generally. Prior to amendment, text read as follows:

''Subparagraph (B)(ii) and (iii) shall not apply with respect to

natural gas produced from the Prudhoe Bay unit of Alaska and

transported through the transportation system approved under the

Alaska Natural Gas Transportation Act of 1976.''

Subsec. (b)(1)(A). Pub. L. 101-60, Sec. 3(b)(7)(E), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''Subject to paragraph (4), for purposes of sections 4 and

5 of the Natural Gas Act, any amount paid in any first sale of

natural gas shall be deemed to be just and reasonable if -

''(i) such amount does not exceed the applicable maximum lawful

price established under subchapter I of this chapter; or

''(ii) there is no applicable maximum lawful price solely by

reason of the elimination of price controls pursuant to part B of

subchapter I of this chapter.''

Subsec. (b)(1)(D). Pub. L. 101-60, Sec. 3(b)(7)(F), struck out

before period at end ''if such amount does not exceed the

applicable maximum lawful price established under subchapter I of

this chapter''.

Subsec. (c)(2). Pub. L. 101-60, Sec. 3(a)(7)(B), substituted

''purchase of natural gas if, under subsection (b) of this section,

such amount is deemed to be just and reasonable for purposes of

sections 4 and 5 of such Act,'' for ''purchase of natural gas if -

''(A) under subsection (b) of this section, such amount is

deemed to be just and reasonable for purposes of sections 4 and 5

of such Act, and

''(B) such recovery is not inconsistent with any requirement of

any rule under section 3341 of this title (including any

amendment under section 3342 of this title),''.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 3(b)(7) of Pub. L. 101-60 effective Jan. 1,

1993, see section 3(b) of Pub. L. 101-60, set out as a note under

section 3372 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3372 of this title.

-CITE-

15 USC Sec. 3432 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 60 - NATURAL GAS POLICY

SUBCHAPTER VI - COORDINATION WITH NATURAL GAS ACT; MISCELLANEOUS

PROVISIONS

-HEAD-

Sec. 3432. Effect on State laws

-STATUTE-

(a) Authority to prescribe maximum lawful prices

Nothing in this chapter shall affect the authority of any State

to establish or enforce any maximum lawful price for the first sale

of natural gas produced in such State.

(b) Common carriers

No person shall be subject to regulation as a common carrier

under any provision of Federal or State law by reason of any

transportation -

(1) pursuant to any order under section 3362(c) or section

3363(b), (c), (d), or (i) of this title; or

(2) authorized by the Commission under section 3371(a) of this

title.

-SOURCE-

(Pub. L. 95-621, title VI, Sec. 602, Nov. 9, 1978, 92 Stat. 3411;

Pub. L. 101-60, Sec. 3(b)(8), July 26, 1989, 103 Stat. 159.)

-MISC1-

AMENDMENTS

1989 - Subsec. (a). Pub. L. 101-60 struck out ''lower'' after

''prescribe'' in heading and struck out before period at end

''which does not exceed the applicable maximum lawful price, if

any, under subchapter I of this chapter''.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-60 effective Jan. 1, 1993, see section

3(b) of Pub. L. 101-60, set out as a note under section 3372 of

this title.

-CITE-

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Idioma:	inglés
País:	Estados Unidos

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Codificación normativa de EEUU (Estados Unidos)Legislación federal estadounidense # Commerce and Trade

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