Collapse to view only § 717a. Definitions
- § 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 depreciation
- § 717i. Periodic and special reports
- § 717j. State compacts for conservation, transportation, etc., of natural gas
- § 717k. Officials dealing in securities
- § 717l. Complaints
- § 717m. Investigations by Commission
- § 717n. Process coordination; hearings; rules of procedure
- § 717o. Administrative powers of Commission; rules, regulations, and orders
- § 717p. Joint boards
- § 717q. Appointment of officers and employees
- § 717r. Rehearing and review
- § 717s. Enforcement of chapter
- § 717t. General penalties
- § 717t-1. Civil penalty authority
- § 717t-2. Natural gas market transparency rules
- § 717u. Jurisdiction of offenses; enforcement of liabilities and duties
- § 717v. Separability
- § 717w. Short title
- § 717x. Conserved natural gas
- § 717y. Voluntary conversion of natural gas users to heavy fuel oil
- § 717z. Emergency conversion of utilities and other facilities
§ 717. Regulation of natural gas companies
(a) Necessity of regulation in public interest
(b) Transactions to which provisions of chapter applicable
(c) Intrastate transactions exempt from provisions of chapter; certification from State commission as conclusive evidence
(d) Vehicular natural gas jurisdiction
The provisions of this chapter shall not apply to any person solely by reason of, or with respect to, any sale or transportation of vehicular natural gas if such person is—
(1) not otherwise a natural-gas company; or
(2) subject primarily to regulation by a State commission, whether or not such State commission has, or is exercising, jurisdiction 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.)
§ 717a. DefinitionsWhen 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 United States from a foreign country, exported to a foreign country from the United States, or transported in interstate commerce by waterborne vessel, but does not include—
(A) waterborne vessels used to deliver natural gas to or from any such facility; or
(B) any pipeline or storage facility subject to the jurisdiction of the Commission under section 717f of this title.
(June 21, 1938, ch. 556, § 2, 52 Stat. 821; Pub. L. 102–486, title IV, § 404(a)(2), Oct. 24, 1992, 106 Stat. 2879; Pub. L. 109–58, title III, § 311(b), Aug. 8, 2005, 119 Stat. 685.)
§ 717b. Exportation or importation of natural gas; LNG terminals
(a) Mandatory authorization order
(b) Free trade agreementsWith respect to natural gas which is imported into the United States from a nation with which there is in effect a free trade agreement requiring national treatment for trade in natural gas, and with respect to liquefied natural gas—
(1) the importation of such natural gas shall be treated as a “first sale” within the meaning of section 3301(21) of this title; and
(2) the Commission shall not, on the basis of national origin, treat any such imported natural gas on an unjust, unreasonable, unduly discriminatory, or preferential basis.
(c) Expedited application and approval process
(d) Construction with other lawsExcept as specifically provided in this chapter, nothing in this chapter affects the rights of States under—
(1) the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.);
(2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
(3) the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
(e) LNG terminals
(1) The Commission shall have the exclusive authority to approve or deny an application for the siting, construction, expansion, or operation of an LNG terminal. Except as specifically provided in this chapter, nothing in this chapter is intended to affect otherwise applicable law related to any Federal agency’s authorities or responsibilities related to LNG terminals.
(2) Upon the filing of any application to site, construct, expand, or operate an LNG terminal, the Commission shall—
(A) set the matter for hearing;
(B) give reasonable notice of the hearing to all interested persons, including the State commission of the State in which the LNG terminal is located and, if not the same, the Governor-appointed State agency described in section 717b–1 of this title;
(C) decide the matter in accordance with this subsection; and
(D) issue or deny the appropriate order accordingly.
(3)
(A) Except as provided in subparagraph (B), the Commission may approve an application described in paragraph (2), in whole or part, with such modifications and upon such terms and conditions as the Commission find 1
1 So in original. Probably should be “finds”.
necessary or appropriate.(B) Before January 1, 2015, the Commission shall not—
(i) deny an application solely on the basis that the applicant proposes to use the LNG terminal exclusively or partially for gas that the applicant or an affiliate of the applicant will supply to the facility; or
(ii) condition an order on—(I) a requirement that the LNG terminal offer service to customers other than the applicant, or any affiliate of the applicant, securing the order;(II) any regulation of the rates, charges, terms, or conditions of service of the LNG terminal; or(III) a requirement to file with the Commission schedules or contracts related to the rates, charges, terms, or conditions of service of the LNG terminal.
(C) Subparagraph (B) shall cease to have effect on January 1, 2030.
(4) An order issued for an LNG terminal that also offers service to customers on an open access basis shall not result in subsidization of expansion capacity by existing customers, degradation of service to existing customers, or undue discrimination against existing customers as to their terms or conditions of service at the facility, as all of those terms are defined by the Commission.
(f) Military installations
(1) In this subsection, the term “military installation”—
(A) means a base, camp, post, range, station, yard, center, or homeport facility for any ship or other activity under the jurisdiction of the Department of Defense, including any leased facility, that is located within a State, the District of Columbia, or any territory of the United States; and
(B) does not include any facility used primarily for civil works, rivers and harbors projects, or flood control projects, as determined by the Secretary of Defense.
(2) The Commission shall enter into a memorandum of understanding with the Secretary of Defense for the purpose of ensuring that the Commission coordinate and consult 2
2 So in original. Probably should be “coordinates and consults”.
with the Secretary of Defense on the siting, construction, expansion, or operation of liquefied natural gas facilities that may affect an active military installation.(3) The Commission shall obtain the concurrence of the Secretary of Defense before authorizing the siting, construction, expansion, or operation of liquefied natural gas facilities affecting the training or activities of an active military installation.
(June 21, 1938, ch. 556, § 3, 52 Stat. 822; Pub. L. 102–486, title II, § 201, Oct. 24, 1992, 106 Stat. 2866; Pub. L. 109–58, title III, § 311(c), Aug. 8, 2005, 119 Stat. 685.)
§ 717b–1. State and local safety considerations
(a) Promulgation of regulations
(b) State consultationThe Governor of a State in which an LNG terminal is proposed to be located shall designate the appropriate State agency for the purposes of consulting with the Commission regarding an application under section 717b of this title. The Commission shall consult with such State agency regarding State and local safety considerations prior to issuing an order pursuant to section 717b of this title. For the purposes of this section, State and local safety considerations include—
(1) the kind and use of the facility;
(2) the existing and projected population and demographic characteristics of the location;
(3) the existing and proposed land use near the location;
(4) the natural and physical aspects of the location;
(5) the emergency response capabilities near the facility location; and
(6) the need to encourage remote siting.
(c) Advisory report
(d) Inspections
(e) Emergency Response Plan
(1) In any order authorizing an LNG terminal the Commission shall require the LNG terminal operator to develop an Emergency Response Plan. The Emergency Response Plan shall be prepared in consultation with the United States Coast Guard and State and local agencies and be approved by the Commission prior to any final approval to begin construction. The Plan shall include a cost-sharing plan.
(2) A cost-sharing plan developed under paragraph (1) shall include a description of any direct cost reimbursements that the applicant agrees to provide to any State and local agencies with responsibility for security and safety—
(A) at the LNG terminal; and
(B) in proximity to vessels that serve the facility.
(June 21, 1938, ch. 556, § 3A, as added Pub. L. 109–58, title III, § 311(d), Aug. 8, 2005, 119 Stat. 687.)
§ 717c. Rates and charges
(a) Just and reasonable rates and charges
(b) Undue preferences and unreasonable rates and charges prohibited
(c) Filing of rates and charges with Commission; public inspection of schedules
(d) Changes in rates and charges; notice to Commission
(e) Authority of Commission to hold hearings concerning new schedule of rates
(f) Storage services
(1) In exercising its authority under this chapter or the Natural Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the Commission may authorize a natural gas company (or any person that will be a natural gas company on completion of any proposed construction) to provide storage and storage-related services at market-based rates for new storage capacity related to a specific facility placed in service after August 8, 2005, notwithstanding the fact that the company is unable to demonstrate that the company lacks market power, if the Commission determines that—
(A) market-based rates are in the public interest and necessary to encourage the construction of the storage capacity in the area needing storage services; and
(B) customers are adequately protected.
(2) The Commission shall ensure that reasonable terms and conditions are in place to protect consumers.
(3) If the Commission authorizes a natural gas company to charge market-based rates under this subsection, the Commission shall review periodically whether the market-based rate is just, reasonable, and not unduly discriminatory or preferential.
(June 21, 1938, ch. 556, § 4, 52 Stat. 822; Pub. L. 87–454, May 21, 1962, 76 Stat. 72; Pub. L. 109–58, title III, § 312, Aug. 8, 2005, 119 Stat. 688.)
§ 717c–1. Prohibition on market manipulation
It shall be unlawful for any entity, directly or indirectly, to use or employ, in connection with the purchase or sale of natural gas or the purchase or sale of transportation services subject to the jurisdiction of the Commission, any manipulative or deceptive device or contrivance (as those terms are used in section 78j(b) of this title) in contravention of such rules and regulations as the Commission may prescribe as necessary in the public interest or for the protection of natural gas ratepayers. Nothing in this section shall be construed to create a private right of action.
(June 21, 1938, ch. 556, § 4A, as added Pub. L. 109–58, title III, § 315, Aug. 8, 2005, 119 Stat. 691.)
§ 717d. Fixing rates and charges; determination of cost of production or transportation
(a) Decreases in rates
(b) Costs of production and transportation
(June 21, 1938, ch. 556, § 5, 52 Stat. 823.)
§ 717e. Ascertainment of cost of property
(a) Cost of property
(b) Inventory of property; statements of costs
(June 21, 1938, ch. 556, § 6, 52 Stat. 824.)
§ 717f. Construction, extension, or abandonment of facilities
(a) Extension or improvement of facilities on order of court; notice and hearing
(b) Abandonment of facilities or services; approval of Commission
(c) Certificate of public convenience and necessity
(1)
(A) No natural-gas company or person which will be a natural-gas company upon completion of any proposed construction or extension shall engage in the transportation or sale of natural gas, subject to the jurisdiction of the Commission, or undertake the construction or extension of any facilities therefor, or acquire or operate any such facilities or extensions thereof, unless there is in force with respect to such natural-gas company a certificate of public convenience and necessity issued by the Commission authorizing such acts or operations: Provided, however, That if any such natural-gas company or predecessor in interest was bona fide engaged in transportation or sale of natural gas, subject to the jurisdiction of the Commission, on February 7, 1942, over the route or routes or within the area for which application is made and has so operated since that time, the Commission shall issue such certificate without requiring further proof that public convenience and necessity will be served by such operation, and without further proceedings, if application for such certificate is made to the Commission within ninety days after
(B) In all other cases the Commission shall set the matter for hearing and shall give such reasonable notice of the hearing thereon to all interested persons as in its judgment may be necessary under rules and regulations to be prescribed by the Commission; and the application shall be decided in accordance with the procedure provided in subsection (e) of this section and such certificate shall be issued or denied accordingly: Provided, however, That the Commission may issue a temporary certificate in cases of emergency, to assure maintenance of adequate service or to serve particular customers, without notice or hearing, pending the determination of an application for a certificate, and may by regulation exempt from the requirements of this section temporary acts or operations for which the issuance of a certificate will not be required in the public interest.
(2) The Commission may issue a certificate of public convenience and necessity to a natural-gas company for the transportation in interstate commerce of natural gas used by any person for one or more high-priority uses, as defined, by rule, by the Commission, in the case of—
(A) natural gas sold by the producer to such person; and
(B) natural gas produced by such person.
(d) Application for certificate of public convenience and necessity
(e) Granting of certificate of public convenience and necessity
(f) Determination of service area; jurisdiction of transportation to ultimate consumers
(1) The Commission, after a hearing had upon its own motion or upon application, may determine the service area to which each authorization under this section is to be limited. Within such service area as determined by the Commission a natural-gas company may enlarge or extend its facilities for the purpose of supplying increased market demands in such service area without further authorization; and
(2) If the Commission has determined a service area pursuant to this subsection, transportation to ultimate consumers in such service area by the holder of such service area determination, even if across State lines, shall be subject to the exclusive jurisdiction of the State commission in the State in which the gas is consumed. This section shall not apply to the transportation of natural gas to another natural gas company.
(g) Certificate of public convenience and necessity for service of area already being served
(h) Right of eminent domain for construction of pipelines, etc.
(June 21, 1938, ch. 556, § 7, 52 Stat. 824; Feb. 7, 1942, ch. 49, 56 Stat. 83; July 25, 1947, ch. 333, 61 Stat. 459; Pub. L. 95–617, title VI, § 608, Nov. 9, 1978, 92 Stat. 3173; Pub. L. 100–474, § 2, Oct. 6, 1988, 102 Stat. 2302.)
§ 717g. Accounts; records; memoranda
(a) Rules and regulations for keeping and preserving accounts, records, etc.
(b) Access to and inspection of accounts and records
(c) Books, accounts, etc., of the person controlling gas company subject to examination
(June 21, 1938, ch. 556, § 8, 52 Stat. 825.)
§ 717h. Rates of depreciation
(a) Depreciation and amortization
(b) Rules
(June 21, 1938, ch. 556, § 9, 52 Stat. 826.)
§ 717i. Periodic and special reports
(a) Form and contents of reports
(b) Unlawful conduct
(June 21, 1938, ch. 556, § 10, 52 Stat. 826.)
§ 717j. State compacts for conservation, transportation, etc., of natural gas
(a) Assembly of pertinent information; report to Congress
(b) Assembly of information relative to operation of compact; report to Congress
(c) Availability of services, etc., of other agencies
(June 21, 1938, ch. 556, § 11, 52 Stat. 827.)
§ 717k. Officials dealing in securities
It shall be unlawful for any officer or director of any natural-gas company to receive for his own benefit, directly or indirectly, any money or thing of value in respect to the negotiation, hypothecation, or sale by such natural-gas company of any security issued, or to be issued, by such natural-gas company, or to share in any of the proceeds thereof, or to participate in the making or paying of any dividends, other than liquidating dividends, of such natural-gas company from any funds properly included in capital account.
(June 21, 1938, ch. 556, § 12, 52 Stat. 827.)
§ 717l. Complaints
Any State, municipality, or State commission complaining of anything done or omitted to be done by any natural-gas company in contravention of the provisions of this chapter may apply to the Commission by petition, which shall briefly state the facts, whereupon a statement of the complaint thus made shall be forwarded by the Commission to such natural-gas company, which shall be called upon to satisfy the complaint or to answer the same in writing within a reasonable time to be specified by the Commission.
(June 21, 1938, ch. 556, § 13, 52 Stat. 827.)
§ 717m. Investigations by Commission
(a) Power of Commission
(b) Determination of adequacy of gas reserves
(c) Administration of oaths and affirmations; subpena of witnesses, etc.
(d) Jurisdiction of courts of United States
(e) Testimony of witnesses
(f) Deposition of witnesses in a foreign country
(g) Witness fees
(June 21, 1938, ch. 556, § 14, 52 Stat. 828; Pub. L. 91–452, title II, § 218, Oct. 15, 1970, 84 Stat. 929.)
§ 717n. Process coordination; hearings; rules of procedure
(a) Definition
In this section, the term “Federal authorization”—
(1) means any authorization required under Federal law with respect to an application for authorization under section 717b of this title or a certificate of public convenience and necessity under section 717f of this title; and
(2) includes any permits, special use authorizations, certifications, opinions, or other approvals as may be required under Federal law with respect to an application for authorization under section 717b of this title or a certificate of public convenience and necessity under section 717f of this title.
(b) Designation as lead agency
(1) In general
(2) Other agencies
(c) Schedule
(1) Commission authority to set schedule
The Commission shall establish a schedule for all Federal authorizations. In establishing the schedule, the Commission shall—
(A) ensure expeditious completion of all such proceedings; and
(B) comply with applicable schedules established by Federal law.
(2) Failure to meet schedule
(d) Consolidated record
The Commission shall, with the cooperation of Federal and State administrative agencies and officials, maintain a complete consolidated record of all decisions made or actions taken by the Commission or by a Federal administrative agency or officer (or State administrative agency or officer acting under delegated Federal authority) with respect to any Federal authorization. Such record shall be the record for—
(1) appeals or reviews under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), provided that the record may be supplemented as expressly provided pursuant to section 319 of that Act [16 U.S.C. 1465]; or
(2) judicial review under section 717r(d) of this title of decisions made or actions taken of Federal and State administrative agencies and officials, provided that, if the Court determines that the record does not contain sufficient information, the Court may remand the proceeding to the Commission for further development of the consolidated record.
(e) Hearings; parties
(f) Procedure
(June 21, 1938, ch. 556, § 15, 52 Stat. 829; Pub. L. 109–58, title III, § 313(a), Aug. 8, 2005, 119 Stat. 688.)
§ 717o. Administrative powers of Commission; rules, regulations, and orders
The Commission shall have power to perform any and all acts, and to prescribe, issue, make, amend, and rescind such orders, rules, and regulations as it may find necessary or appropriate to carry out the provisions of this chapter. Among other things, such rules and regulations may define accounting, technical, and trade terms used in this chapter; and may prescribe the form or forms of all statements, declarations, applications, and reports to be filed with the Commission, the information which they shall contain, and the time within which they shall be filed. Unless a different date is specified therein, rules and regulations of the Commission shall be effective thirty days after publication in the manner which the Commission shall prescribe. Orders of the Commission shall be effective on the date and in the manner which the Commission shall prescribe. For the purposes of its rules and regulations, the Commission may classify persons and matters within its jurisdiction and prescribe different requirements for different classes of persons or matters. All rules and regulations of the Commission shall be filed with its secretary and shall be kept open in convenient form for public inspection and examination during reasonable business hours.
(June 21, 1938, ch. 556, § 16, 52 Stat. 830.)
§ 717p. Joint boards
(a) Reference of matters to joint boards; composition and power
(b) Conference with State commissions regarding rate structure, costs, etc.
(c) Information and reports available to State commissions
(June 21, 1938, ch. 556, § 17, 52 Stat. 830.)
§ 717q. Appointment of officers and employees
The Commission is authorized to appoint and fix the compensation of such officers, attorneys, examiners, and experts as may be necessary for carrying out its functions under this chapter; and the Commission may, subject to civil-service laws, appoint such other officers and employees as are necessary for carrying out such functions and fix their salaries in accordance with chapter 51 and subchapter III of chapter 53 of title 5.
(June 21, 1938, ch. 556, § 18, 52 Stat. 831; Oct. 28, 1949, ch. 782, title XI, § 1106(a), 63 Stat. 972.)
§ 717r. Rehearing and review
(a) Application for rehearing; time
(b) Review of Commission order
(c) Stay of Commission order
(d) Judicial review
(1) In general
(2) Agency delay
(3) Court action
(4) Commission action
(5) Expedited review
(June 21, 1938, ch. 556, § 19, 52 Stat. 831; June 25, 1948, ch. 646, § 32(a), 62 Stat. 991; May 24, 1949, ch. 139, § 127, 63 Stat. 107; Pub. L. 85–791, § 19, Aug. 28, 1958, 72 Stat. 947; Pub. L. 109–58, title III, § 313(b), Aug. 8, 2005, 119 Stat. 689.)
§ 717s. Enforcement of chapter
(a) Action in district court for injunction
(b) Mandamus
(c) Employment of attorneys by Commission
(d) Violation of market manipulation provisionsIn any proceedings under subsection (a), the court may prohibit, conditionally or unconditionally, and permanently or for such period of time as the court determines, any individual who is engaged or has engaged in practices constituting a violation of section 717c–1 of this title (including related rules and regulations) from—
(1) acting as an officer or director of a natural gas company; or
(2) engaging in the business of—
(A) the purchasing or selling of natural gas; or
(B) the purchasing or selling of transmission services subject to the jurisdiction of the Commission.
(June 21, 1938, ch. 556, § 20, 52 Stat. 832; June 25, 1948, ch. 646, § 1, 62 Stat. 875, 895; Pub. L. 109–58, title III, § 318, Aug. 8, 2005, 119 Stat. 693.)
§ 717t. General penalties
(a) Any person who willfully and knowingly does or causes or suffers to be done any act, matter, or thing in this chapter prohibited or declared to be unlawful, or who willfully and knowingly omits or fails to do any act, matter, or thing in this chapter required to be done, or willfully and knowingly causes or suffers such omission or failure, shall, upon conviction thereof, be punished by a fine of not more than $1,000,000 or by imprisonment for not more than 5 years, or both.
(b) Any person who willfully and knowingly violates any rule, regulation, restriction, condition, or order made or imposed by the Commission under authority of this chapter, shall, in addition to any other penalties provided by law, be punished upon conviction thereof by a fine of not exceeding $50,000 for each and every day during which such offense occurs.
(June 21, 1938, ch. 556, § 21, 52 Stat. 833; Pub. L. 109–58, title III, § 314(a)(1), Aug. 8, 2005, 119 Stat. 690.)
§ 717t–1. Civil penalty authority
(a) In general
(b) Notice
(c) Amount
(June 21, 1938, ch. 556, § 22, as added Pub. L. 109–58, title III, § 314(b)(1)(B), Aug. 8, 2005, 119 Stat. 691.)
§ 717t–2. Natural gas market transparency rules
(a) In general
(1) The Commission is directed to facilitate price transparency in markets for the sale or transportation of physical natural gas in interstate commerce, having due regard for the public interest, the integrity of those markets, fair competition, and the protection of consumers.
(2) The Commission may prescribe such rules as the Commission determines necessary and appropriate to carry out the purposes of this section. The rules shall provide for the dissemination, on a timely basis, of information about the availability and prices of natural gas sold at wholesale and in interstate commerce to the Commission, State commissions, buyers and sellers of wholesale natural gas, and the public.
(3) The Commission may—
(A) obtain the information described in paragraph (2) from any market participant; and
(B) rely on entities other than the Commission to receive and make public the information, subject to the disclosure rules in subsection (b).
(4) In carrying out this section, the Commission shall consider the degree of price transparency provided by existing price publishers and providers of trade processing services, and shall rely on such publishers and services to the maximum extent possible. The Commission may establish an electronic information system if it determines that existing price publications are not adequately providing price discovery or market transparency.
(b) Information exempted from disclosure
(1) Rules described in subsection (a)(2), if adopted, shall exempt from disclosure information the Commission determines would, if disclosed, be detrimental to the operation of an effective market or jeopardize system security.
(2) In determining the information to be made available under this section and the time to make the information available, the Commission shall seek to ensure that consumers and competitive markets are protected from the adverse effects of potential collusion or other anticompetitive behaviors that can be facilitated by untimely public disclosure of transaction-specific information.
(c) Information sharing
(1) Within 180 days of August 8, 2005, the Commission shall conclude a memorandum of understanding with the Commodity Futures Trading Commission relating to information sharing, which shall include, among other things, provisions ensuring that information requests to markets within the respective jurisdiction of each agency are properly coordinated to minimize duplicative information requests, and provisions regarding the treatment of proprietary trading information.
(2) Nothing in this section may be construed to limit or affect the exclusive jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq.).
(d) Compliance with requirements
(1) The Commission shall not condition access to interstate pipeline transportation on the reporting requirements of this section.
(2) The Commission shall not require natural gas producers, processors, or users who have a de minimis market presence to comply with the reporting requirements of this section.
(e) Retroactive effect
(1) Except as provided in paragraph (2), no person shall be subject to any civil penalty under this section with respect to any violation occurring more than 3 years before the date on which the person is provided notice of the proposed penalty under section 717t–1(b) of this title.
(2) Paragraph (1) shall not apply in any case in which the Commission finds that a seller that has entered into a contract for the transportation or sale of natural gas subject to the jurisdiction of the Commission has engaged in fraudulent market manipulation activities materially affecting the contract in violation of section 717c–1 of this title.
(June 21, 1938, ch. 556, § 23, as added Pub. L. 109–58, title III, § 316, Aug. 8, 2005, 119 Stat. 691.)
§ 717u. Jurisdiction of offenses; enforcement of liabilities and duties
The District Courts of the United States and the United States courts of any Territory or other place subject to the jurisdiction of the United States shall have exclusive jurisdiction of violations of this chapter or the rules, regulations, and orders thereunder, and of all suits in equity and actions at law brought to enforce any liability or duty created by, or to enjoin any violation of, this chapter or any rule, regulation, or order thereunder. Any criminal proceeding shall be brought in the district wherein any act or transaction constituting the violation occurred. Any suit or action to enforce any liability or duty created by, or to enjoin any violation of, this chapter or any rule, regulation, or order thereunder may be brought in any such district or in the district wherein the defendant is an inhabitant, and process in such cases may be served wherever the defendant may be found. Judgments and decrees so rendered shall be subject to review as provided in sections 1254, 1291, and 1292 of title 28. No costs shall be assessed against the Commission in any judicial proceeding by or against the Commission under this chapter.
(June 21, 1938, ch. 556, § 24, formerly § 22, 52 Stat. 833; June 25, 1948, ch. 646, § 1, 62 Stat. 875, 895; renumbered § 24, Pub. L. 109–58, title III, § 314(b)(1)(A), Aug. 8, 2005, 119 Stat. 690.)
§ 717v. Separability
If any provision of this chapter, or the application of such provision to any person or circumstance, shall be held invalid, the remainder of the chapter, and the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.
(June 21, 1938, ch. 556, § 25, formerly § 23, 52 Stat. 833; renumbered § 25, Pub. L. 109–58, title III, § 314(b)(1)(A), Aug. 8, 2005, 119 Stat. 690.)
§ 717w. Short title
This chapter may be cited as the “Natural Gas Act.”
(June 21, 1938, ch. 556, § 26, formerly § 24, 52 Stat. 833; renumbered § 26, Pub. L. 109–58, title III, § 314(b)(1)(A), Aug. 8, 2005, 119 Stat. 690.)
§ 717x. Conserved natural gas
(a) Determination of entitlement
(1) For purposes of determining the natural gas entitlement of any local distribution company under any curtailment plan, if the Commission revises any base period established under such plan, the volumes of natural gas which such local distribution company demonstrates—
(A) were sold by the local distribution company, for a priority use immediately before the implementation of conservation measures, and
(B) were conserved by reason of the implementation of such conservation measures,
shall be treated by the Commission following such revision as continuing to be used for the priority use referred to in subparagraph (A).
(2) The Commission shall, by rule, prescribe methods for measurement of volumes of natural gas to which subparagraphs (A) and (B) of paragraph (1) apply.
(b) Conditions, limitations, etc.
(c) DefinitionsFor purposes of this section—
(1) The term “conservation measures” means such energy conservation measures, as determined by the Commission, as were implemented after the base period established under the curtailment plan in effect on November 9, 1978.
(2) The term “local distribution company” means any person engaged in the transportation, or local distribution, of natural gas and the sale of natural gas for ultimate consumption.
(3) The term “curtailment plan” means a plan (including any modification of such plan required by the Natural Gas Policy Act of 1978 [15 U.S.C. 3301 et seq.] ) in effect under the Natural Gas Act [15 U.S.C. 717 et seq.] which provides for recognizing and implementing priorities of service during periods of curtailed deliveries.
(Pub. L. 95–617, title VI, § 605, Nov. 9, 1978, 92 Stat. 3167.)
§ 717y. Voluntary conversion of natural gas users to heavy fuel oil
(a) Transfer of contractual interests
(1) In order to facilitate voluntary conversion of facilities from the use of natural gas to the use of heavy petroleum fuel oil, the Commission shall, by rule, provide a procedure for the approval by the Commission of any transfer to any person described in paragraph 2(B)(i), (ii), or (iii) of contractual interests involving the receipt of natural gas described in paragraph 2(A).
(2)
(A) The rule required under paragraph (1) shall apply to—
(i) natural gas—(I) received by the user pursuant to a contract entered into before September 1, 1977, not including any renewal or extension thereof entered into on or after such date other than any such extension or renewal pursuant to the exercise by such user of an option to extend or renew such contract;(II) other than natural gas the sale for resale or the transportation of which was subject to the jurisdiction of the Federal Power Commission under the Natural Gas Act [15 U.S.C. 717 et seq.] as of September 1, 1977;(III) which was used as a fuel in any facility in existence on September 1, 1977.
(ii) natural gas subject to a prohibition order issued under section 717z of this title.
(B) The rule required under paragraph (1) shall permit the transfer of contractual interests—
(i) to any interstate pipeline;
(ii) to any local distribution company served by an interstate pipeline; and
(iii) to any person served by an interstate pipeline for a high priority use by such person.
(3) The rule required under paragraph (1) shall provide that any transfer of contractual interests pursuant to such rule shall be under such terms and conditions as the Commission may prescribe. Such rule shall include a requirement for refund of any consideration, received by the person transferring contractual interests pursuant to such rule, to the extent such consideration exceeds the amount by which the costs actually incurred, during the remainder of the period of the contract with respect to which such contractual interests are transferred, in direct association with the use of heavy petroleum fuel oil as a fuel in the applicable facility exceeds the price under such contract for natural gas, subject to such contract, delivered during such period.
(4) In prescribing the rule required under paragraph (1), and in determining whether to approve any transfer of contractual interests, the Commission shall consider whether such transfer of contractual interests is likely to increase demand for imported refined petroleum products.
(b) Commission approval
(1) No transfer of contractual interests authorized by the rule required under subsection (a)(1) may take effect unless the Commission issues a certificate of public convenience and necessity for such transfer if such natural gas is to be resold by the person to whom such contractual interests are to be transferred. Such certificate shall be issued by the Commission in accordance with the requirements of this subsection and those of section 7 of the Natural Gas Act [15 U.S.C. 717f], and the provisions of such Act [15 U.S.C. 717 et seq.] applicable to the determination of satisfaction of the public convenience and necessity requirements of such section.
(2) The rule required under subsection (a)(1) shall set forth guidelines for the application on a regional or national basis (as the Commission determines appropriate) of the criteria specified in subsection (e)(2) and (3) to determine the maximum consideration permitted as just compensation under this section.
(c) Restrictions on transfers unenforceable
(d) Contractual obligations unaffected
(e) DefinitionsFor purposes of this section—
(1) The term “natural gas” has the same meaning as provided by section 2(5) of the Natural Gas Act [15 U.S.C. 717a(5)].
(2) The term “just compensation”, when used with respect to any contractual interests pursuant to the rule required under subsection (a)(1), means the maximum amount of, or method of determining, consideration which does not exceed the amount by which—
(A) the reasonable costs (not including capital costs) incurred, during the remainder of the period of the contract with respect to which contractual interests are transferred pursuant to the rule required under subsection (a)(1), in direct association with the use of heavy petroleum fuel oil as a fuel in the applicable facility, exceeds
(B) the price under such contract for natural gas, subject to such contract, delivered during such period.
For purposes of subparagraph (A), the reasonable costs directly associated with the use of heavy petroleum fuel oil as a fuel shall include an allowance for the amortization, over the remaining useful life, of the undepreciated value of depreciable assets located on the premises containing such facility, which assets were directly associated with the use of natural gas and are not usable in connection with the use of such heavy petroleum fuel oil.
(3) The term “just compensation”, when used with respect to any intrastate pipeline which would have transported or distributed natural gas with respect to which contractual interests are transferred pursuant to the rule required under subsection (a)(1), means an amount equal to any loss of revenue, during the remaining period of the contract with respect to which contractual interests are transferred pursuant to the rule required under subsection (a)(1), to the extent such loss—
(A) is directly incurred by reason of the discontinuation of the transportation or distribution of natural gas resulting from the transfer of contractual interests pursuant to the rule required under subsection (a)(1); and
(B) is not offset by—
(i) a reduction in expenses associated with such discontinuation; and
(ii) revenues derived from other transportation or distribution which would not have occurred if such contractual interests had not been transferred.
(4) The term “contractual interests” means the right to receive natural gas under contract as affected by an applicable curtailment plan filed with the Commission or the appropriate State regulatory authority.
(5) 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.].
(6) The term “high-priority use” means any use of natural gas (other than its use for the generation of steam for industrial purposes or electricity) identified by the Commission as a high priority use for which the Commission determines a substitute fuel is not reasonably available.
(7) The term “heavy petroleum fuel oil” means number 4, 5, or 6 fuel oil which is domestically refined.
(8) The term “local distribution company” means any person, other than any intrastate pipeline or any interstate pipeline, engaged in the transportation, or local distribution, of natural gas and the sale of natural gas for ultimate consumption.
(9) 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.
(10) The term “facility” means any electric powerplant, or major fuel burning installation, as such terms are defined in the Powerplant and Industrial Fuel Use Act of 1978 [42 U.S.C. 8301 et seq.].
(11) The term “curtailment plan” means a plan (including any modification of such plan required by the Natural Gas Policy Act of 1978 [15 U.S.C. 3301 et seq.] ), in effect under the Natural Gas Act or State law, which provides for recognizing and implementing priorities of service during periods of curtailed deliveries by any local distribution company, intrastate pipeline, or interstate pipeline.
(12) The term “interstate commerce” has the same meaning as such term has under the Natural Gas Act.
(f) Coordination with the Natural Gas Act
(1) Consideration in any transfer of contractual interests pursuant to the rule required under subsection (a)(1) of this section shall be deemed just and reasonable for purposes of sections 4 and 5 of the Natural Gas Act [15 U.S.C. 717c, 717d] if such consideration does not exceed just compensation.
(2) No person shall be subject to the jurisdiction of the Commission under the Natural Gas Act [15 U.S.C. 717 et seq.] as a natural gas-company (within the meaning of such Act) or to regulation as a common carrier under any provision of Federal or State law solely by reason of making any sale, or engaging in any transportation, of natural gas with respect to which contractual interests are transferred pursuant to the rule required under subsection (a)(1).
(3) Nothing in this section shall exempt from the jurisdiction of the Commission under the Natural Gas Act [15 U.S.C. 717 et seq.] any transportation in interstate commerce of natural gas, any sale in interstate commerce for resale of natural gas, or any person engaged in such transportation or such sale to the extent such transportation, sale, or person is subject to the jurisdiction of the Commission under such Act without regard to the transfer of contractual interests pursuant to the rule required under subsection (a)(1).
(4) Nothing in this section shall exempt any person from any obligation to obtain a certificate of public convenience and necessity for the sale in interstate commerce for resale or the transportation in interstate commerce of natural gas with respect to which contractual interests are transferred pursuant to the rule required under subsection (a)(1).
(g) Volume limitationNo supplier of natural gas under any contract, with respect to which contractual interests have been transferred pursuant to the rule required under subsection (a)(1), shall be required to supply natural gas during any relevant period in volume amounts which exceed the lesser of—
(1) the volume determined by reference to the maximum delivery obligations specified in such contract;
(2) the volume which such supplier would have been required to supply, under the curtailment plan in effect for such supplier, to the person, who transferred contractual interests pursuant to the rule required under subsection (a)(1), if no such transfer had occurred; and
(3) the volume actually delivered or for which payment would have been made pursuant to such contract during the 12-calendar-month period ending immediately before such transfer of contractual interests.
(Pub. L. 95–617, title VI, § 606, Nov. 9, 1978, 92 Stat. 3167.)
§ 717z. Emergency conversion of utilities and other facilities
(a) Presidential declarationThe 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 this section is reasonably necessary, having exhausted other alternatives (not including section 3363 of this title) to the maximum extent practicable, to assist in meeting natural gas requirements for such high-priority uses.
(b) Limitation
(1) Any declaration of a natural gas supply emergency (or extension thereof) under subsection (a), shall terminate at the earlier of—
(A) the date on which the President finds that any shortage described in subsection (a) does not exist or is not imminent; or
(B) 120 days after the date of such declaration of emergency (or extension thereof).
(2) Nothing in this subsection shall prohibit the President from extending, under subsection (a), any emergency (or extension thereof) previously declared under subsection (a), upon the expiration of such declaration of emergency (or extension thereof) under paragraph (1)(B).
(c) ProhibitionsDuring a natural gas emergency declared under this section, the President may, by order, prohibit the burning of natural gas by any electric powerplant or major fuel-burning installation if the President determines that—
(1) such powerplant or installation had on September 1, 1977 (or at any time thereafter) the capability to burn petroleum products without damage to its facilities or equipment and without interference with operational requirements;
(2) significant quantities of natural gas which would otherwise be burned by such powerplant or installation could be made available before the termination of such emergency to any person served by an interstate pipeline for use by such person in a high-priority use; and
(3) petroleum products will be available for use by such powerplant or installation throughout the period the order is in effect.
(d) Limitations
(e) Exemption for secondary uses
(f) Exemption for air-quality emergencies
(g) Limitation on injunctive relief
(1) Except as provided in paragraph (2), no court shall have jurisdiction to grant any injunctive relief to stay or defer the implementation of any order issued under this section unless such relief is in connection with a final judgment entered with respect to such order.
(2)
(A) On the petition of any person aggrieved by an order issued under this section, the United States District Court for the District of Columbia may, after an opportunity for a hearing before such court and on an appropriate showing, issue a preliminary injunction temporarily enjoining, in whole or in part, the implementation of such order.
(B) For purposes of this paragraph, subpenas for witnesses who are required to attend the District Court for the District of Columbia may be served in any judicial district of the United States, except that no writ of subpena under the authority of this section shall issue for witnesses outside of the District of Columbia at a greater distance than 100 miles from the place of holding court unless the permission of the District Court for the District of Columbia has been granted after proper application and cause shown.
(h) DefinitionsFor purposes of this section—
(1) The terms “electric powerplant”, “powerplant”, “major fuel-burning installation”, and “installation” shall have the same meanings as such terms have under section 8302 of title 42.
(2) The term “petroleum products” means crude oil, or any product derived from crude oil other than propane.
(3) The term “high priority use” means any—
(A) use of natural gas in a residence;
(B) use of natural gas in a commercial establishment in amounts less than 50 Mcf on a peak day; or
(C) any use of natural gas the curtailment of which the President determines would endanger life, health, or maintenance of physical property.
(4) 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.
(i) Use of general terms
(Pub. L. 95–617, title VI, § 607, Nov. 9, 1978, 92 Stat. 3171.)