EPACT 2005, Section 316 (Sec. 23 NGA)

SEC. 316. NATURAL GAS MARKET TRANSPARENCY RULES.

The Natural Gas Act (15 U.S.C. 717 et seq.) is amended by inserting

after section 22 the following:

``natural gas market transparency rules

``Sec. 23. (a)(1) <<NOTE: 15 USC 717t-2.>> 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

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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)(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)(1) <<NOTE: Deadline. Memorandum.>> Within 180 days of

enactment of this section, 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)(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)(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 22(b).

``(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 4A.''.

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