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15 U.S.C. § 3372 — Authorization of certain sales and transportation
Federal law — U.S. Code and appendices · legal_authorities
**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717&num=0&edition=prelim) 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
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Stable record: federal_law:legal_authorities:record_usc_14ae121699511d0f715f81f8
Source file: Laws/federal/codes/united-states-code/title-15/section-3372-authorization-of-certain-sales-and-transportation--b71b2d8afd.md
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Source location: Title 15, Chapter 60, § 3372; chapter-060-natural-gas-policy.md
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**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717&num=0&edition=prelim) 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.
(C) *Adjustment*
(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).
(C) *Determination* — 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);
(C) such sale would violate any requirement of this 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.
**(c) Terms and conditions** Any authorization granted under this section shall be under such terms and conditions as the Commission may prescribe.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Necessity of regulation in public interest** As disclosed in reports of the Federal Trade Commission made pursuant to S. Res. 83 (Seventieth Congress, first session) and other reports made pursuant to the authority of Congress, it is declared that the business of transporting and selling natural gas for ultimate distribution to the public is affected with a public interest, and that Federal regulation in matters relating to the transportation of natural gas and the sale thereof in interstate and foreign commerce is necessary in the public interest.
**(b) Transactions to which provisions of chapter applicable** The provisions of this chapter shall apply to the transportation of natural gas in interstate commerce, to the sale in interstate commerce of natural gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use, and to natural-gas companies engaged in such transportation or sale, and to the importation or exportation of natural gas in foreign commerce and to persons engaged in such importation or exportation, but shall not apply to any other transportation or sale of natural gas or to the local distribution of natural gas or to the facilities used for such distribution or to the production or gathering of natural gas.
**(c) Intrastate transactions exempt from provisions of chapter; certification from State commission as conclusive evidence** The provisions of this chapter shall not apply to any person engaged in or legally authorized to engage in the transportation in interstate commerce or the sale in interstate commerce for resale, of natural gas received by such person from another person within or at the boundary of a State if all the natural gas so received is ultimately consumed within such State, or to any fa
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 717
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Federal law — U.S. Code and appendices · legal_authorities
This chapter may be cited as the “Natural Gas Act.”
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 717w
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Federal law — U.S. Code and appendices · legal_authorities
**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3371/a&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 3301
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Federal law — U.S. Code and appendices · legal_authorities
**(a) High-cost natural gas** No price paid in any first sale of high-cost natural gas (as defined in section 3317(c) 11 See References in Text note below. 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) 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) 1 of this title, as such section was in effect on January 1, 1989).
**(b) Other transactions** No price paid—
(1) in any sale authorized under [section 3362(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3362/a&num=0&edition=prelim), or
(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) 1 of this title, as such section was in effect on January 1, 1989).
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 3374
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Federal law — U.S. Code and appendices · legal_authorities
**(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: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 3412
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, Pub. L. 95–621, title V, § 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3372&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 3414
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Federal law — U.S. Code and appendices · legal_authorities
**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3362&num=0&edition=prelim) or any order or supplemental order issued under [section 3363 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3363&num=0&edition=prelim), 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, § 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
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Federal law — U.S. Code and appendices · legal_authorities
**(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)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717/b&num=0&edition=prelim)], the provisions of the Natural Gas Act [[15 U.S.C. 717](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717&num=0&edition=prelim) 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)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717/b&num=0&edition=prelim)], the provisions of the Natural Gas Act [[15 U.S.C. 717](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717&num=0&edition=prelim) 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 11 So in original. Probably should be “assignment”. authorized under [section 3372(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3372/a&num=0&edition=prelim).
(C) *Natural-gas company* — For purposes of the Natural Gas Act [[15 U.S.C. 717](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717&num=0&edition=prelim) et seq.], the term “natural-gas company” (as defined in section 2(6) of such Act [[15 U.S.C. 717a(6)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717a/6&num=0&edition
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Federal law — U.S. Code and appendices · legal_authorities
Page 2009
TITLE 15—COMMERCE AND TRADE
§ 3373
1 See References in Text note below.
likely that the determinations described in
subparagraph (A) will be made following the
hearing required under subparagraph (A).
(C) Determination
The determination of whether any inter-
ruption of any sale authorized under para-
graph (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 intra-
state 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 appli-
cation 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 nat-
ural 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);
(C) such sale would violate any require-
ment of this subsection or any term or con-
dition 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.
(c) Terms and conditions
Any authorization granted under this section
shall be under such terms and conditions as the
Commission may prescribe.
(Pub. L. 95–621, title III, § 311, Nov. 9, 1978, 92
Stat. 3388.)
Editorial Notes
REFERENCES IN TEXT
Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 3372
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 1186
TITLE 15—COMMERCE AND TRADE
§ 715l
§ 715l. Repealed. June 22, 1942, ch. 436, 56 Stat.
381
Section, acts Feb. 22, 1935, ch. 18, § 13, 49 Stat. 33; June
14, 1937, ch. 335, 50 Stat. 257; June 29, 1939, ch. 250, 53
Stat. 927, provided for expiration of this chapter on
June 30, 1942.
§ 715m. Cooperation between Secretary of the In-
terior and Federal and State authorities
The Secretary of the Interior, in carrying out
the Act of February 22, 1935, as amended (15
U.S.C., ch. 15A), is authorized to cooperate with
Federal and State authorities.
(June 25, 1946, ch. 472, § 3, 60 Stat. 307.)
Editorial Notes
REFERENCES IN TEXT
Act of February 22, 1935, referred to in text, is act
Feb. 22, 1935, ch. 18, 49 Stat. 30, popularly known as the
‘‘Hot Oil Act’’ and also as the ‘‘Connally Hot Oil Act’’,
which is classified generally to this chapter. For com-
plete classification of this Act to the Code, see Short
Title note set out under section 715 of this title and Ta-
bles.
CODIFICATION
Section was not enacted as a part of act Feb. 22, 1935,
which comprises this chapter.
Executive Documents
DELEGATION OF FUNCTIONS
Delegation of President’s authority to Secretary of
the Interior, see note set out under section 715j of this
title.
CHAPTER 15B—NATURAL GAS
Sec.
717.
Regulation of natural gas companies.
717a.
Definitions.
717b.
Exportation or importation of natural gas;
LNG terminals.
717b–1.
State and local safety considerations.
717c.
Rates and charges.
717c–1.
Prohibition on market manipulation.
717d.
Fixing rates and charges; determination of
cost of production or transportation.
717e.
Ascertainment of cost of property.
717f.
Construction, extension, or abandonment of
facilities.
717g.
Accounts; records; memoranda.
717h.
Rates of
Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 717
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