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15 U.S.C. § 3432 — Coordination with the Natural Gas Act

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15 U.S.C. § 3432 — Coordination with the Natural Gas Act

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Source file: Laws/federal/codes/united-states-code/title-15/section-3432-coordination-with-the-natural-gas-act--44f0fb7310.md
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Source location: Title 15, Chapter 60, § 3432; chapter-060-natural-gas-policy.md

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**(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=prelim) 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)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717/b&num=0&edition=prelim)] the provisions of such 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 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3371/a&num=0&edition=prelim). (B) *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=prelim)]) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717c&num=0&edition=prelim), 717d], any amount paid 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) 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. (C) *Sales by intrastate pipelines* — For purposes of sections 4 and 5 of the Natural Gas Act [[15 U.S.C. 717c](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717c&num=0&edition=prelim), 717d] any amount paid in any sale authorized by the Commission under [section 3371(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3371/b&num=0&edition=prelim) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717c&num=0&edition=prelim), 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3372/a&num=0&edition=prelim) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717c&num=0&edition=prelim), 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section3363/h/1&num=0&edition=prelim). (B) *Transportation* — For purposes of sections 4 and 5 of the Natural Gas Act [[15 U.S.C. 717c](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717c&num=0&edition=prelim), 717d], any amount paid by any interstate pipeline for any transportation 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) shall be deemed to be just and reasonable if such amount does not exceed that approved by the Commission under such section. **(c) Guaranteed passthrough** (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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717f&num=0&edition=prelim)] 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section717c&num=0&edition=prelim), 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.

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 3372 — Authorization of certain sales and transportation

**(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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15 U.S.C. § 717c — Rates and charges

**(a) Just and reasonable rates and charges** All rates and charges made, demanded, or received by any natural-gas company for or in connection with the transportation or sale of natural gas subject to the jurisdiction of the Commission, and all rules and regulations affecting or pertaining to such rates or charges, shall be just and reasonable, and any such rate or charge that is not just and reasonable is declared to be unlawful. **(b) Undue preferences and unreasonable rates and charges prohibited** No natural-gas company shall, with respect to any transportation or sale of natural gas subject to the jurisdiction of the Commission, (1) make or grant any undue preference or advantage to any person or subject any person to any undue prejudice or disadvantage, or (2) maintain any unreasonable difference in rates, charges, service, facilities, or in any other respect, either as between localities or as between classes of service. **(c) Filing of rates and charges with Commission; public inspection of schedules** Under such rules and regulations as the Commission may prescribe, every natural-gas company shall file with the Commission, within such time (not less than sixty days from June 21, 1938) and in such form as the Commission may designate, and shall keep open in convenient form and place for public inspection, schedules showing all rates and charges for any transportation or sale subject to the jurisdiction of the Commission, and the classifications, practices, and regulations affecting such rates and charges, together with all contracts which in any manner affect or relate to such rates, charges, classifications, and services. **(d) Changes in rates and charges; notice to Commission** Unless the Commission otherwise orders, no change shall be made by any natural

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15 U.S.C. § 717f — Construction, extension, or abandonment of facilities

**(a) Extension or improvement of facilities on order of court; notice and hearing** Whenever the Commission, after notice and opportunity for hearing, finds such action necessary or desirable in the public interest, it may by order direct a natural-gas company to extend or improve its transportation facilities, to establish physical connection of its transportation facilities with the facilities of, and sell natural gas to, any person or municipality engaged or legally authorized to engage in the local distribution of natural or artificial gas to the public, and for such purpose to extend its transportation facilities to communities immediately adjacent to such facilities or to territory served by such natural-gas company, if the Commission finds that no undue burden will be placed upon such natural-gas company thereby: Provided, That the Commission shall have no authority to compel the enlargement of transportation facilities for such purposes, or to compel such natural-gas company to establish physical connection or sell natural gas when to do so would impair its ability to render adequate service to its customers. **(b) Abandonment of facilities or services; approval of Commission** No natural-gas company shall abandon all or any portion of its facilities subject to the jurisdiction of the Commission, or any service rendered by means of such facilities, without the permission and approval of the Commission first had and obtained, after due hearing, and a finding by the Commission that the available supply of natural gas is depleted to the extent that the continuance of service is unwarranted, or that the present or future public convenience or necessity permit such abandonment. **(c) Certificate of public convenience and necessity** (1) (A) No natural-gas comp

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15 U.S.C. § 717 — Regulation of natural gas companies

**(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

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15 U.S.C. § 717w — Short title

This chapter may be cited as the “Natural Gas Act.”

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15 U.S.C. § 3432 — Effect on State laws

Page 2018 TITLE 15—COMMERCE AND TRADE § 3432 this title, effective as of the date such gas ceases to be subject to such maximum lawful price.’’ Pub. L. 101–60, § 3(a)(7)(A), substituted ‘‘Certain addi- tional natural gas’’ for ‘‘Alaskan natural gas’’ in head- ing 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, § 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, § 3(b)(7)(F), struck out before period at end ‘‘if such amount does not ex- ceed the applicable maximum lawful price established under subchapter I of this chapter’’. Subsec. (c)(2). Pub. L. 101–60, § 3(a)(7)(B), substituted ‘‘purchase of natural gas if, under subsection (b) of this section, such amount is deemed to be just and reason- able 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 pur- poses of sections 4 and 5 of such Act, and ‘‘(B) suc

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 717 — Regulation of natural gas companies

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

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15 U.S.C. § 717a — Definitions

When used in this chapter, unless the context otherwise requires— (1) “Person” includes an individual or a corporation. (2) “Corporation” includes any corporation, joint-stock company, partnership, association, business trust, organized group of persons, whether incorporated or not, receiver or receivers, trustee or trustees of any of the foregoing, but shall not include municipalities as hereinafter defined. (3) “Municipality” means a city, county, or other political subdivision or agency of a State. (4) “State” means a State admitted to the Union, the District of Columbia, and any organized Territory of the United States. (5) “Natural gas” means either natural gas unmixed, or any mixture of natural and artificial gas. (6) “Natural-gas company” means a person engaged in the transportation of natural gas in interstate commerce, or the sale in interstate commerce of such gas for resale. (7) “Interstate commerce” means commerce between any point in a State and any point outside thereof, or between points within the same State but through any place outside thereof, but only insofar as such commerce takes place within the United States. (8) “State commission” means the regulatory body of the State or municipality having jurisdiction to regulate rates and charges for the sale of natural gas to consumers within the State or municipality. (9) “Commission” and “Commissioner” means the Federal Power Commission, and a member thereof, respectively. (10) “Vehicular natural gas” means natural gas that is ultimately used as a fuel in a self-propelled vehicle. (11) “LNG terminal” includes all natural gas facilities located onshore or in State waters that are used to receive, unload, load, store, transport, gasify, liquefy, or process natural gas that is imported to the Unit

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15 U.S.C. § 717a — Definitions

Page 1187 TITLE 15—COMMERCE AND TRADE § 717a over the sale, sale for resale, or transportation of vehicular natural gas. (June 21, 1938, ch. 556, § 1, 52 Stat. 821; Mar. 27, 1954, ch. 115, 68 Stat. 36; Pub. L. 102–486, title IV, § 404(a)(1), Oct. 24, 1992, 106 Stat. 2879; Pub. L. 109–58, title III, § 311(a), Aug. 8, 2005, 119 Stat. 685.) Editorial Notes AMENDMENTS 2005—Subsec. (b). Pub. L. 109–58 inserted ‘‘and to the importation or exportation of natural gas in foreign commerce and to persons engaged in such importation or exportation,’’ after ‘‘such transportation or sale,’’. 1992—Subsec. (d). Pub. L. 102–486 added subsec. (d). 1954—Subsec. (c). Act Mar. 27, 1954, added subsec. (c). Statutory Notes and Related Subsidiaries TERMINATION OF FEDERAL POWER COMMISSION; TRANSFER OF FUNCTIONS The Federal Power Commission was terminated, and its functions, personnel, property, funds, etc., were transferred to Secretary of Energy (except for certain functions which were transferred to the Federal Energy Regulatory Commission) by sections 7151(b), 7171(a), 7172(a), 7291, and 7293 of Title 42, The Public Health and Welfare. STATE LAWS AND REGULATIONS Pub. L. 102–486, title IV, § 404(b), Oct. 24, 1992, 106 Stat. 2879, provided that: ‘‘The transportation or sale of nat- ural gas by any person who is not otherwise a public utility, within the meaning of State law— ‘‘(1) in closed containers; or ‘‘(2) otherwise to any person for use by such person as a fuel in a self-propelled vehicle, shall not be considered to be a transportation or sale of natural gas within the meaning of any State law, regu- lation, or order in effect before January 1, 1989. This subsection shall not apply to any provision of any State law, regulation, or order to the extent that

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