15 U.S.C. § 3373 — Effect of certain natural gas prices on in-

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 The Natural Gas Act, referred to in subsec. (a)(1)(B), is act June 21, 1938, ch. 556, 52 Stat. 821, which is classi- fied generally to chapter 15B (§ 717 et seq.) of this title. For complete classification of this act to the Code, see section 717w of this title and Tables. § 3372. Assignment of contractual rights to re- ceive surplus natural gas (a) Authorization of assignments The Commission may, by rule or order, au- thorize any intrastate pipeline to assign, with- out compensation, to any interstate pipeline or local distribution company all or any portion of such intrastate pipeline’s right to receive sur- plus natural gas at any first sale, upon such terms and conditions as the Commission deter- mines appropriate. (b) Effect of authorization under subsection (a) For the effect of an authorization under sub- section (a), see section 3431 of this title (relating to the coordination of this chapter with the Nat- ural Gas Act [15 U.S.C. 717 et seq.]). (c) Surplus natural gas For purposes of this section, the term ‘‘surplus natural gas’’ means any natural gas which is de- termined, by the State agency having regu- latory 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. (Pub. L. 95–621, title III, § 312, Nov. 9, 1978, 92 Stat. 3392; Pub. L. 101–60, § 3(b)(2), July 26, 1989, 103 Stat. 158.) Editorial Notes REFERENCES IN TEXT The Natural Gas Act, referred to in subsec. (b), is act June 21, 1938, ch. 556, 52 Stat. 821, which is classified generally to chapter 15B (§ 717 et seq.) of this title. For complete classification of this act to the Code, see sec- tion 717w of this title and Tables. AMENDMENTS 1989—Subsec. (c). Pub. L. 101–60 substituted ‘‘any nat- ural gas’’ for ‘‘any natural gas— ‘‘(1) which is not committed or dedicated to inter- state 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)’’. Statutory Notes and Related Subsidiaries 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 effec- tive Jan. 1, 1993. § 3373. Effect of certain natural gas prices on in- definite price escalator clauses (a) High-cost natural gas No price paid in any first sale of high-cost nat- ural gas (as defined in section 3317(c) 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) 1 of this title, as such sec- tion was in effect on January 1, 1989) with re- spect 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 ef- fect on January 1, 1989). (b) Other transactions No price paid— (1) in any sale authorized under section 3362(a) of this title, or (2) pursuant to any order issued under sec- tion 3363(b), (c), (d), or (g) of this title, may be taken into account in applying any in- definite price escalator clause (as defined in sec- tion 3315(b)(3)(B) 1 of this title, as such section was in effect on January 1, 1989). (Pub. L. 95–621, title III, § 313, Nov. 9, 1978, 92 Stat. 3392; Pub. L. 101–60, § 3(b)(3), July 26, 1989, 103 Stat. 159.) Page 2010 TITLE 15—COMMERCE AND TRADE § 3374 Editorial Notes 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, § 2(b), July 26, 1989, 103 Stat. 158. AMENDMENTS 1989—Pub. L. 101–60 inserted ‘‘, as such section was in effect on January 1, 1989’’ in four places. Statutory Notes and Related Subsidiaries 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. § 3374. Clauses prohibiting certain sales, trans- portation, and commingling (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 pro- vision— (1) prohibits the commingling of natural gas subject to such contract with natural gas sub- ject 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 sub- ject 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 oth- erwise 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 op- tion 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), the term ‘‘nat- ural gas covered by this chapter’’ means— (1) natural gas which is not committed or dedicated to interstate commerce as of No- vember 8, 1978; (2) natural gas, the sale in interstate com- merce 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 inter- state 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. (Pub. L. 95–621, title III, § 314, Nov. 9, 1978, 92 Stat. 3392.) Editorial Notes REFERENCES IN TEXT The Natural Gas Act, referred to in subsec. (a)(1), (2), is act June 21, 1938, ch. 556, 52 Stat. 821, which is classi- fied generally to chapter 15B (§ 717 et seq.) of this title. For complete classification of this act to the Code, see section 717w of this title and Tables. § 3375. Filing of contracts and agreements The Commission may, by rule or order, require any first sale purchaser of natural gas under a new contract, a successor to an existing con- tract, 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. (Pub. L. 95–621, title III, § 315, Nov. 9, 1978, 92 Stat. 3393; Pub. L. 100–439, §§ 1, 2(a), (b)(1), Sept. 22, 1988, 102 Stat. 1720; Pub. L. 101–60, § 3(a)(2), July 26, 1989, 103 Stat. 158.) Editorial Notes AMENDMENTS 1989—Pub. L. 101–60, in section catchline, substituted ‘‘Filing of contracts and agreements’’ for ‘‘Contract du- ration; filing of contracts and agreements’’, and in text, struck out subsec. (a) designation, heading ‘‘Con- tract duration’’, and text relating to power of Commis- sioner to specify minimum duration of contracts for purchase of natural gas and requiring nondiscrim- inatory exercise of such authority, and struck out sub- sec. (b) designation and heading ‘‘Filing of contracts and ancillary agreements’’. 1988—Pub. L. 100–439, § 2(b)(1), struck out ‘‘right of first refusal;’’ after ‘‘Contract duration;’’ in section catchline. Subsec. (a)(1). Pub. L. 100–439, § 1, struck out last sen- tence which directed that provisions of par. (1) did not apply to contracts of natural gas subject to require- ments of par. (3). Subsec. (a)(3). Pub. L. 100–439, § 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, § 2(a), redesignated subsec. (c) as (b) and struck out former subsec. (b) which related to certain rights of first refusal with re- spect to certain natural gas committed or dedicated to interstate commerce on November 8, 1978. SUBCHAPTER IV—NATURAL GAS CURTAILMENT POLICIES § 3391. Natural gas for essential agricultural uses (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, not- withstanding any other provision of law (other than subsection (b)) and to the maximum extent practicable, no curtailment plan of an interstate pipeline may provide for curtailment of deliv- eries of natural gas for any essential agricul- tural use, unless such curtailment— (1) does not reduce the quantity of natural gas delivered for such use below the use re- quirement specified in subsection (c); or (2) is necessary in order to meet the require- ments of high-priority users. (b) Curtailment priority not applicable if alter- native 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