15 Usc 717

§ 715k

TITLE 15—COMMERCE AND TRADE

clude, in addition to the President, any agency,
officer, or employee who may be designated by
the President for the execution of any of the
powers and functions vested in the President
under this chapter.

(June 25, 1946, ch. 472, § 3, 60 Stat. 307.)
CODIFICATION
Section was not enacted as a part act Feb. 22, 1935,
which comprises this chapter.

(Feb. 22, 1935, ch. 18, § 11, 49 Stat. 33.)
DELEGATION OF FUNCTIONS
Ex. Ord. No. 6979, Feb. 28, 1935, which designated and
appointed Secretary of the Interior to execute powers
and functions vested in President by this chapter except those vested in him by section 715c of this title,
was superseded by Ex. Ord. No. 10752, set out below.
Ex. Ord. No. 7756, Dec. 1, 1937, 2 F.R. 2664, which delegated to Secretary of the Interior powers and functions
vested in President under this chapter except those
vested in him by section 715c of this title, and authorized Secretary to establish a Petroleum Conservation
Division in Department of the Interior, the functions
and duties of which shall be: (1) to assist, in such manner as may be prescribed by Secretary of the Interior,
in administering said act, (2) to cooperate with oil and
gas-producing States in prevention of waste in oil and
gas production and in adoption of uniform oil- and gasconservation laws and regulations, and (3) to keep informed currently as to facts which may be required for
exercise of responsibility of President under section
715c of this title, was superseded by Ex. Ord. No. 10752,
set out below.
EX. ORD. NO. 10752. DELEGATION OF FUNCTIONS TO THE
SECRETARY OF THE INTERIOR
Ex. Ord. No. 10752, Feb. 12, 1958, 23 F.R. 973, provided:
SECTION 1. The Secretary of the Interior is hereby
designated and appointed as the agent of the President
for the execution of all the powers and functions vested
in the President by the act of February 22, 1935, 49 Stat.
30, entitled ‘‘An Act to regulate interstate and foreign
commerce in petroleum and its products by prohibiting
the shipment in such commerce of petroleum and its
products produced in violation of State law, and for
other purposes,’’ as amended (15 U.S.C. 715 et seq.), except those vested in the President by section 4 of the
act (15 U.S.C. 715c).
SEC. 2. The Secretary of the Interior may make such
provisions in the Department of the Interior as he may
deem appropriate to administer the said act.
SEC. 3. This Executive order supersedes Executive
Order No. 6979 of February 28, 1935, Executive Order No.
7756 of December 1, 1937 (2 F.R. 2664), Executive Order
No. 9732 of June 3, 1946 (11 F.R. 5985), and paragraph (q)
of section 1 of Executive Order No. 10250 of June 5, 1951
(16 F.R. 5385).
DWIGHT D. EISENHOWER.

Page 1012

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.
717a.
717b.
717b–1.
717c.
717c–1.
717d.
717e.
717f.
717g.
717h.
717i.
717j.
717k.
717l.
717m.
717n.
717o.
717p.
717q.
717r.
717s.
717t.
717t–1.
717t–2.
717u.
717v.
717w.
717x.
717y.
717z.

Regulation of natural gas companies.
Definitions.
Exportation or importation of natural gas;
LNG terminals.
State and local safety considerations.
Rates and charges.
Prohibition on market manipulation.
Fixing rates and charges; determination of
cost of production or transportation.
Ascertainment of cost of property.
Construction, extension, or abandonment of
facilities.
Accounts; records; memoranda.
Rates of depreciation.
Periodic and special reports.
State compacts for conservation, transportation, etc., of natural gas.
Officials dealing in securities.
Complaints.
Investigations by Commission.
Process coordination; hearings; rules of procedure.
Administrative powers of Commission; rules,
regulations, and orders.
Joint boards.
Appointment of officers and employees.
Rehearing and review.
Enforcement of chapter.
General penalties.
Civil penalty authority.
Natural gas market transparency rules.
Jurisdiction of offenses; enforcement of liabilities and duties.
Separability.
Short title.
Conserved natural gas.
Voluntary conversion of natural gas users to
heavy fuel oil.
Emergency conversion of utilities and other
facilities.

§ 715k. Saving clause

§ 717. Regulation of natural gas companies

If any provision of this chapter, or the application thereof to any person or circumstance,
shall be held invalid, the validity of the remainder of the chapter and the application of such
provision to other persons or circumstances
shall not be affected thereby.

(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,

(Feb. 22, 1935, ch. 18, § 12, 49 Stat. 33.)
§ 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 Interior and Federal and State authorities
The Secretary of the Interior, in carrying out
this chapter, is authorized to cooperate with
Federal and State authorities.

Page 1013

TITLE 15—COMMERCE AND TRADE

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
facilities used by such person for such transportation or sale, provided that the rates and service of such person and facilities be subject to
regulation by a State commission. The matters
exempted from the provisions of this chapter by
this subsection are declared to be matters primarily of local concern and subject to regulation by the several States. A certification from
such State commission to the Federal Power
Commission that such State commission has
regulatory jurisdiction over rates and service of
such person and facilities and is exercising such
jurisdiction shall constitute conclusive evidence
of such regulatory power or jurisdiction.
(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.)
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).
TERMINATION OF FEDERAL POWER COMMISSION;
TRANSFER OF FUNCTIONS
Federal Power Commission terminated and functions,
personnel, property, funds, etc., transferred to Secretary of Energy (except for certain functions transferred to 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
Section 404(b) of Pub. L. 102–486 provided that: ‘‘The
transportation or sale of natural gas by any person who

§ 717a

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, regulation, 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 such
provision has as its primary purpose the protection of
public safety.’’
EMERGENCY NATURAL GAS ACT OF 1977
Pub. L. 95–2, Feb. 2, 1977, 91 Stat. 4, authorized President to declare a natural gas emergency and to require
emergency deliveries and transportation of natural gas
until the earlier of Apr. 30, 1977, or termination of
emergency by President and provided for antitrust protection, emergency purchases, adjustment in charges
for local distribution companies, relationship to Natural Gas Act, effect of certain contractual obligations,
administrative procedure and judicial review, enforcement, reporting to Congress, delegation of authorities,
and preemption of inconsistent State or local action.
EXECUTIVE ORDER NO. 11969
Ex. Ord. No. 11969, Feb. 2, 1977, 42 F.R. 6791, as amended by Ex. Ord. No. 12038, Feb. 3, 1978, 43 F.R. 4957, which
delegated to the Secretary of Energy the authority
vested in the President by the Emergency Natural Gas
Act of 1977 except the authority to declare and terminate a natural gas emergency, was revoked by Ex. Ord.
No. 12553, Feb. 25, 1986, 51 F.R. 7237.
PROCLAMATION NO. 4485
Proc. No. 4485, Feb. 2, 1977, 42 F.R. 6789, declared that
a natural gas emergency existed within the meaning of
section 3 of the Emergency Natural Gas Act of 1977, set
out as a note above, which emergency was terminated
by Proc. No. 4495, Apr. 1, 1977, 42 F.R. 18053, formerly set
out below.
PROCLAMATION NO. 4495
Proc. No. 4495, Apr. 1, 1977, 42 F.R. 18053, terminated
the natural gas emergency declared to exist by Proc.
No. 4485, Feb. 2, 1977, 42 F.R. 6789, formerly set out
above.

§ 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

§ 717b

TITLE 15—COMMERCE AND TRADE

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 selfpropelled 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.)
AMENDMENTS
2005—Par. (11). Pub. L. 109–58 added par. (11).
1992—Par. (10). Pub. L. 102–486 added par. (10).
TERMINATION OF FEDERAL POWER COMMISSION;
TRANSFER OF FUNCTIONS
Federal Power Commission terminated and functions,
personnel, property, funds, etc., transferred to Secretary of Energy (except for certain functions transferred to Federal Energy Regulatory Commission) by
sections 7151(b), 7171(a), 7172(a)(1), 7291, and 7293 of Title
42, The Public Health and Welfare.

§ 717b. Exportation or importation of natural gas;
LNG terminals
(a) Mandatory authorization order
After six months from June 21, 1938, no person
shall export any natural gas from the United
States to a foreign country or import any natural gas from a foreign country without first having secured an order of the Commission authorizing it to do so. The Commission shall issue
such order upon application, unless, after opportunity for hearing, it finds that the proposed exportation or importation will not be consistent
with the public interest. The Commission may
by its order grant such application, in whole or
in part, with such modification and upon such
terms and conditions as the Commission may
find necessary or appropriate, and may from
time to time, after opportunity for hearing, and
for good cause shown, make such supplemental
order in the premises as it may find necessary or
appropriate.
(b) Free trade agreements
With respect to natural gas which is imported
into the United States from a nation with which

Page 1014

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
For purposes of subsection (a) of this section,
the importation of the natural gas referred to in
subsection (b) of this section, or the exportation
of natural gas to a nation with which there is in
effect a free trade agreement requiring national
treatment for trade in natural gas, shall be
deemed to be consistent with the public interest, and applications for such importation or exportation shall be granted without modification
or delay.
(d) Construction with other laws
Except 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 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
1 So

in original. Probably should be ‘‘finds’’.

Page 1015

(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 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.)
REFERENCES IN TEXT
The Coastal Zone Management Act of 1972, referred to
in subsec. (d)(1), is title III of Pub. L. 89–454 as added by
Pub. L. 92–583, Oct. 27, 1972, 86 Stat. 1280, as amended,
which is classified generally to chapter 33 (§ 1451 et seq.)
of Title 16, Conservation. For complete classification of
this Act to the Code, see Short Title note set out under
section 1451 of Title 16 and Tables.
The Clean Air Act, referred to in subsec. (d)(2), is act
July 14, 1955, ch. 360, 69 Stat. 322, as amended, which is
classified generally to chapter 85 (§ 7401 et seq.) of Title
2 So
in original.
consults’’.

§ 717b

TITLE 15—COMMERCE AND TRADE

Probably

should

be

‘‘coordinates

and

42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note
set out under section 7401 of Title 42 and Tables.
The Federal Water Pollution Control Act, referred to
in subsec. (d)(3), is act June 30, 1948, ch. 758, as amended
generally by Pub. L. 92–500, § 2, Oct. 18, 1972, 86 Stat. 816,
which is classified generally to chapter 26 (§ 1251 et seq.)
of Title 33, Navigation and Navigable Waters. For complete classification of this Act to the Code, see Short
Title note set out under section 1251 of Title 33 and
Tables.
AMENDMENTS
2005—Pub. L. 109–58, § 311(c)(1), inserted ‘‘; LNG terminals’’ after ‘‘natural gas’’ in section catchline.
Subsecs. (d) to (f). Pub. L. 109–58, § 311(c)(2), added
subsecs. (d) to (f).
1992—Pub. L. 102–486 designated existing provisions as
subsec. (a) and added subsecs. (b) and (c).
TRANSFER OF FUNCTIONS
Enforcement functions of Secretary or other official
in Department of Energy and Commission, Commissioners, or other official in Federal Energy Regulatory
Commission related to compliance with authorizations
for importation of natural gas from Alberta as pre-deliveries of Alaskan gas issued under this section with
respect to pre-construction, construction, and initial
operation of transportation system for Canadian and
Alaskan natural gas transferred to the Federal Inspector, Office of Federal Inspector for Alaska Natural Gas
Transportation System, until first anniversary of date
of initial operation of Alaska Natural Gas Transportation System, see Reorg. Plan No. 1 of 1979, §§ 102(d),
203(a), 44 F.R. 33663, 33666, 93 Stat. 1373, 1376, effective
July 1, 1979, set out under section 719e of this title. Office of Federal Inspector for the Alaska Natural Gas
Transportation System abolished and functions and authority vested in Inspector transferred to Secretary of
Energy by section 3012(b) of Pub. L. 102–486, set out as
an Abolition of Office of Federal Inspector note under
section 719e of this title. Functions and authority vested in Secretary of Energy subsequently transferred to
Federal Coordinator for Alaska Natural Gas Transportation Projects by section 720d(f) of this title.
DELEGATION OF FUNCTIONS
Functions of President respecting certain facilities
constructed and maintained on United States borders
delegated to Secretary of State, see Ex. Ord. No. 11423,
Aug. 16, 1968, 33 F.R. 11741, set out as a note under section 301 of Title 3, The President.
EX. ORD. NO. 10485. PERFORMANCE OF FUNCTIONS RESPECTING ELECTRIC POWER AND NATURAL GAS FACILITIES LOCATED ON UNITED STATES BORDERS
Ex. Ord. No. 10485. Sept. 3, 1953, 18 F.R. 5397, as
amended by Ex. Ord. No. 12038, Feb. 3, 1978, 43 F.R. 4957,
provided:
SECTION 1. (a) The Secretary of Energy is hereby designated and empowered to perform the following-described functions:
(1) To receive all applications for permits for the construction, operation, maintenance, or connection, at
the borders of the United States, of facilities for the
transmission of electric energy between the United
States and a foreign country.
(2) To receive all applications for permits for the construction, operation, maintenance, or connection, at
the borders of the United States, of facilities for the exportation or importation of natural gas to or from a
foreign country.
(3) Upon finding the issuance of the permit to be consistent with the public interest, and, after obtaining
the favorable recommendations of the Secretary of
State and the Secretary of Defense thereon, to issue to
the applicant, as appropriate, a permit for such construction, operation, maintenance, or connection. The
Secretary of Energy shall have the power to attach to

§ 717b–1

TITLE 15—COMMERCE AND TRADE

the issuance of the permit and to the exercise of the
rights granted thereunder such conditions as the public
interest may in its judgment require.
(b) In any case wherein the Secretary of Energy, the
Secretary of State, and the Secretary of Defense cannot agree as to whether or not a permit should be issued, the Secretary of Energy shall submit to the
President for approval or disapproval the application
for a permit with the respective views of the Secretary
of Energy, the Secretary of State and the Secretary of
Defense.
SEC. 2. [Deleted.]
SEC. 3. The Secretary of Energy is authorized to issue
such rules and regulations, and to prescribe such procedures, as it may from time to time deem necessary or
desirable for the exercise of the authority delegated to
it by this order.
SEC. 4. All Presidential Permits heretofore issued
pursuant to Executive Order No. 8202 of July 13, 1939,
and in force at the time of the issuance of this order,
and all permits issued hereunder, shall remain in full
force and effect until modified or revoked by the President or by the Secretary of Energy.
SEC. 5. Executive Order No. 8202 of July 13, 1939, is
hereby revoked.

§ 717b–1. State and local safety considerations
(a) Promulgation of regulations
The Commission shall promulgate regulations
on the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) pre-filing process
within 60 days after August 8, 2005. An applicant
shall comply with pre-filing process required
under the National Environmental Policy Act of
1969 prior to filing an application with the Commission. The regulations shall require that the
pre-filing process commence at least 6 months
prior to the filing of an application for authorization to construct an LNG terminal and encourage applicants to cooperate with State and
local officials.
(b) State consultation
The 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
The State agency may furnish an advisory report on State and local safety considerations to
the Commission with respect to an application
no later than 30 days after the application was
filed with the Commission. Before issuing an
order authorizing an applicant to site, construct, expand, or operate an LNG terminal, the
Commission shall review and respond specifi-

Page 1016

cally to the issues raised by the State agency
described in subsection (b) of this section in the
advisory report. This subsection shall apply to
any application filed after August 8, 2005. A
State agency has 30 days after August 8, 2005 to
file an advisory report related to any applications pending at the Commission as of August 8,
2005.
(d) Inspections
The State commission of the State in which
an LNG terminal is located may, after the terminal is operational, conduct safety inspections
in conformance with Federal regulations and
guidelines with respect to the LNG terminal
upon written notice to the Commission. The
State commission may notify the Commission of
any alleged safety violations. The Commission
shall transmit information regarding such allegations to the appropriate Federal agency,
which shall take appropriate action and notify
the State commission.
(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.)
REFERENCES IN TEXT
The National Environmental Policy Act of 1969, referred to in subsec. (a), is Pub. L. 91–190, Jan. 1, 1970, 83
Stat. 852, as amended, which is classified generally to
chapter 55 (§ 4321 et seq.) of Title 42, The Public Health
and Welfare. For complete classification of this Act to
the Code, see Short Title note set out under section
4321 of Title 42 and Tables.

§ 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

Page 1017

§ 717c

TITLE 15—COMMERCE AND TRADE

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-gas company in any such rate, charge, classification, or
service, or in any rule, regulation, or contract
relating thereto, except after thirty days’ notice
to the Commission and to the public. Such notice shall be given by filing with the Commission and keeping open for public inspection new
schedules stating plainly the change or changes
to be made in the schedule or schedules then in
force and the time when the change or changes
will go into effect. The Commission, for good
cause shown, may allow changes to take effect
without requiring the thirty days’ notice herein
provided for by an order specifying the changes
so to be made and the time when they shall take
effect and the manner in which they shall be
filed and published.
(e) Authority of Commission to hold hearings
concerning new schedule of rates
Whenever any such new schedule is filed the
Commission shall have authority, either upon
complaint of any State, municipality, State
commission, or gas distributing company, or
upon its own initiative without complaint, at
once, and if it so orders, without answer or formal pleading by the natural-gas company, but
upon reasonable notice, to enter upon a hearing
concerning the lawfulness of such rate, charge,
classification, or service; and, pending such
hearing and the decision thereon, the Commission, upon filing with such schedules and delivering to the natural-gas company affected thereby a statement in writing of its reasons for such
suspension, may suspend the operation of such
schedule and defer the use of such rate, charge,
classification, or service, but not for a longer period than five months beyond the time when it
would otherwise go into effect; and after full
hearings, either completed before or after the
rate, charge, classification, or service goes into
effect, the Commission may make such orders
with reference thereto as would be proper in a
proceeding initiated after it had become effective. If the proceeding has not been concluded

and an order made at the expiration of the suspension period, on motion of the natural-gas
company making the filing, the proposed change
of rate, charge, classification, or service shall go
into effect. Where increased rates or charges are
thus made effective, the Commission may, by
order, require the natural-gas company to furnish a bond, to be approved by the Commission,
to refund any amounts ordered by the Commission, to keep accurate accounts in detail of all
amounts received by reason of such increase,
specifying by whom and in whose behalf such
amounts were paid, and, upon completion of the
hearing and decision, to order such natural-gas
company to refund, with interest, the portion of
such increased rates or charges by its decision
found not justified. At any hearing involving a
rate or charge sought to be increased, the burden of proof to show that the increased rate or
charge is just and reasonable shall be upon the
natural-gas company, and the Commission shall
give to the hearing and decision of such questions preference over other questions pending
before it and decide the same as speedily as possible.
(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.)
REFERENCES IN TEXT
The Natural Gas Policy Act of 1978, referred to in subsec. (f)(1), is Pub. L. 95–621, Nov. 9, 1978, 92 Stat. 3350, as
amended, which is classified generally to chapter 60
(§ 3301 et seq.) of this title. For complete classification
of this Act to the Code, see Short Title note set out
under section 3301 of this title and Tables.
AMENDMENTS
2005—Subsec. (f). Pub. L. 109–58 added subsec. (f).
1962—Subsec. (e). Pub. L. 87–454 inserted ‘‘or gas distributing company’’ after ‘‘State commission’’, and
struck out proviso which denied authority to the Commission to suspend the rate, charge, classification, or

§ 717c–1

TITLE 15—COMMERCE AND TRADE

service for the sale of natural gas for resale for industrial use only.
ADVANCE RECOVERY OF EXPENSES INCURRED BY NATURAL GAS COMPANIES FOR NATURAL GAS RESEARCH,
DEVELOPMENT, AND DEMONSTRATION PROJECTS
Pub. L. 102–104, title III, Aug. 17, 1991, 105 Stat. 531,
authorized Federal Energy Regulatory Commission,
pursuant to this section, to allow recovery, in advance,
of expenses by natural-gas companies for research, development and demonstration activities by Gas Research Institute for projects on use of natural gas in
motor vehicles and on use of natural gas to control
emissions from combustion of other fuels, subject to
Commission finding that benefits, including environmental benefits, to both existing and future ratepayers
resulting from such activities exceed all direct costs to
both existing and future ratepayers, prior to repeal by
Pub. L. 102–486, title IV, § 408(c), Oct. 24, 1992, 106 Stat.
2882.

§ 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
Whenever the Commission, after a hearing had
upon its own motion or upon complaint of any
State, municipality, State commission, or gas
distributing company, shall find that any rate,
charge, or classification demanded, observed,
charged, or collected by any natural-gas company in connection with any transportation or
sale of natural gas, subject to the jurisdiction of
the Commission, or that any rule, regulation,
practice, or contract affecting such rate, charge,
or classification is unjust, unreasonable, unduly
discriminatory, or preferential, the Commission
shall determine the just and reasonable rate,
charge, classification, rule, regulation, practice,
or contract to be thereafter observed and in
force, and shall fix the same by order: Provided,
however, That the Commission shall have no
power to order any increase in any rate contained in the currently effective schedule of
such natural gas company on file with the Commission, unless such increase is in accordance
with a new schedule filed by such natural gas
company; but the Commission may order a decrease where existing rates are unjust, unduly
discriminatory, preferential, otherwise unlawful, or are not the lowest reasonable rates.
(b) Costs of production and transportation
The Commission upon its own motion, or upon
the request of any State commission, whenever
it can do so without prejudice to the efficient

Page 1018

and proper conduct of its affairs, may investigate and determine the cost of the production
or transportation of natural gas by a naturalgas company in cases where the Commission has
no authority to establish a rate governing the
transportation or sale of such natural gas.
(June 21, 1938, ch. 556, § 5, 52 Stat. 823.)
§ 717e. Ascertainment of cost of property
(a) Cost of property
The Commission may investigate and ascertain the actual legitimate cost of the property
of every natural-gas company, the depreciation
therein, and, when found necessary for ratemaking purposes, other facts which bear on the
determination of such cost or depreciation and
the fair value of such property.
(b) Inventory of property; statements of costs
Every natural-gas company upon request shall
file with the Commission an inventory of all or
any part of its property and a statement of the
original cost thereof, and shall keep the Commission informed regarding the cost of all additions, betterments, extensions, and new construction.
(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
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.

Page 1019

TITLE 15—COMMERCE AND TRADE

(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 February 7, 1942. Pending the
determination of any such application, the continuance of such operation shall be lawful.
(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 naturalgas 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
Application for certificates shall be made in
writing to the Commission, be verified under
oath, and shall be in such form, contain such information, and notice thereof shall be served
upon such interested parties and in such manner
as the Commission shall, by regulation, require.
(e) Granting of certificate of public convenience
and necessity
Except in the cases governed by the provisos
contained in subsection (c)(1) of this section, a

§ 717f

certificate shall be issued to any qualified applicant therefor, authorizing the whole or any part
of the operation, sale, service, construction, extension, or acquisition covered by the application, if it is found that the applicant is able and
willing properly to do the acts and to perform
the service proposed and to conform to the provisions of this chapter and the requirements,
rules, and regulations of the Commission thereunder, and that the proposed service, sale, operation, construction, extension, or acquisition, to
the extent authorized by the certificate, is or
will be required by the present or future public
convenience and necessity; otherwise such application shall be denied. The Commission shall
have the power to attach to the issuance of the
certificate and to the exercise of the rights
granted thereunder such reasonable terms and
conditions as the public convenience and necessity may require.
(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
Nothing contained in this section shall be construed as a limitation upon the power of the
Commission to grant certificates of public convenience and necessity for service of an area already being served by another natural-gas company.
(h) Right of eminent domain for construction of
pipelines, etc.
When any holder of a certificate of public convenience and necessity cannot acquire by contract, or is unable to agree with the owner of
property to the compensation to be paid for, the
necessary right-of-way to construct, operate,
and maintain a pipe line or pipe lines for the
transportation of natural gas, and the necessary
land or other property, in addition to right-ofway, for the location of compressor stations,
pressure apparatus, or other stations or equipment necessary to the proper operation of such
pipe line or pipe lines, it may acquire the same
by the exercise of the right of eminent domain
in the district court of the United States for the
district in which such property may be located,
or in the State courts. The practice and procedure in any action or proceeding for that purpose in the district court of the United States
shall conform as nearly as may be with the prac-

§ 717g

TITLE 15—COMMERCE AND TRADE

tice and procedure in similar action or proceeding in the courts of the State where the property
is situated: Provided, That the United States district courts shall only have jurisdiction of cases
when the amount claimed by the owner of the
property to be condemned exceeds $3,000.
(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.)
AMENDMENTS
1988—Subsec. (f). Pub. L. 100–474 designated existing
provisions as par. (1) and added par. (2).
1978—Subsec. (c). Pub. L. 95–617, § 608(a), (b)(1), designated existing first paragraph as par. (1)(A) and existing second paragraph as par. (1)(B) and added par. (2).
Subsec. (e). Pub. L. 95–617, § 608(b)(2), substituted
‘‘subsection (c)(1)’’ for ‘‘subsection (c)’’.
1947—Subsec. (h). Act July 25, 1947, added subsec. (h).
1942—Subsecs. (c) to (g). Act Feb. 7, 1942, struck out
subsec. (c), and added new subsecs. (c) to (g).
EFFECTIVE DATE OF 1988 AMENDMENT
Section 3 of Pub. L. 100–474 provided that: ‘‘The provisions of this Act [amending this section and enacting
provisions set out as a note under section 717w of this
title] shall become effective one hundred and twenty
days after the date of enactment [Oct. 6, 1988].’’
TRANSFER OF FUNCTIONS
Enforcement functions of Secretary or other official
in Department of Energy and Commission, Commissioners, or other official in Federal Energy Regulatory
Commission related to compliance with certificates of
public convenience and necessity issued under this section with respect to pre-construction, construction,
and initial operation of transportation system for Canadian and Alaskan natural gas transferred to Federal
Inspector, Office of Federal Inspector for Alaska Natural Gas Transportation System, until first anniversary
of date of initial operation of Alaska Natural Gas
Transportation System, see Reorg. Plan No. 1 of 1979,
§§ 102(d), 203(a), 44 F.R. 33663, 33666, 93 Stat. 1373, 1376, effective July 1, 1979, set out under section 719e of this
title. Office of Federal Inspector for the Alaska Natural
Gas Transportation System abolished and functions
and authority vested in Inspector transferred to Secretary of Energy by section 3012(b) of Pub. L. 102–486,
set out as an Abolition of Office of Federal Inspector
note under section 719e of this title. Functions and authority vested in Secretary of Energy subsequently
transferred to Federal Coordinator for Alaska Natural
Gas Transportation Projects by section 720d(f) of this
title.

§ 717g. Accounts; records; memoranda
(a) Rules and regulations for keeping and preserving accounts, records, etc.
Every natural-gas company shall make, keep,
and preserve for such periods, such accounts,
records of cost-accounting procedures, correspondence, memoranda, papers, books, and
other records as the Commission may by rules
and regulations prescribe as necessary or appropriate for purposes of the administration of this
chapter: Provided, however, That nothing in this
chapter shall relieve any such natural-gas company from keeping any accounts, memoranda, or
records which such natural-gas company may be
required to keep by or under authority of the
laws of any State. The Commission may prescribe a system of accounts to be kept by such

Page 1020

natural-gas companies, and may classify such
natural-gas companies and prescribe a system of
accounts for each class. The Commission, after
notice and opportunity for hearing, may determine by order the accounts in which particular
outlays or receipts shall be entered, charged, or
credited. The burden of proof to justify every accounting entry questioned by the Commission
shall be on the person making, authorizing, or
requiring such entry, and the Commission may
suspend a charge or credit pending submission of
satisfactory proof in support thereof.
(b) Access to and inspection of accounts and
records
The Commission shall at all times have access
to and the right to inspect and examine all accounts, records, and memoranda of natural-gas
companies; and it shall be the duty of such natural-gas companies to furnish to the Commission,
within such reasonable time as the Commission
may order, any information with respect thereto
which the Commission may by order require, including copies of maps, contracts, reports of engineers, and other data, records, and papers, and
to grant to all agents of the Commission free access to its property and its accounts, records,
and memoranda when requested so to do. No
member, officer, or employee of the Commission
shall divulge any fact or information which may
come to his knowledge during the course of examination of books, records, data, or accounts,
except insofar as he may be directed by the
Commission or by a court.
(c) Books, accounts, etc., of the person controlling gas company subject to examination
The books, accounts, memoranda, and records
of any person who controls directly or indirectly
a natural-gas company subject to the jurisdiction of the Commission and of any other company controlled by such person, insofar as they
relate to transactions with or the business of
such natural-gas company, shall be subject to
examination on the order of the Commission.
(June 21, 1938, ch. 556, § 8, 52 Stat. 825.)
§ 717h. Rates of depreciation
(a) Depreciation and amortization
The Commission may, after hearing, require
natural-gas companies to carry proper and adequate depreciation and amortization accounts in
accordance with such rules, regulations, and
forms of account as the Commission may prescribe. The Commission may from time to time
ascertain and determine, and by order fix, the
proper and adequate rates of depreciation and
amortization of the several classes of property
of each natural-gas company used or useful in
the production, transportation, or sale of natural gas. Each natural-gas company shall conform its depreciation and amortization accounts
to the rates so ascertained, determined, and
fixed. No natural-gas company subject to the jurisdiction of the Commission shall charge to operating expenses any depreciation or amortization charges on classes of property other than
those prescribed by the Commission, or charge
with respect to any class of property a percentage of depreciation or amortization other than
that prescribed therefor by the Commission. No

Page 1021

TITLE 15—COMMERCE AND TRADE

such natural-gas company shall in any case include in any form under its operating or other
expenses any depreciation, amortization, or
other charge or expenditure included elsewhere
as a depreciation or amortization charge or
otherwise under its operating or other expenses.
Nothing in this section shall limit the power of
a State commission to determine in the exercise
of its jurisdiction, with respect to any naturalgas company, the percentage rates of depreciation or amortization to be allowed, as to any
class of property of such natural-gas company,
or the composite depreciation or amortization
rate, for the purpose of determining rates or
charges.
(b) Rules
The Commission, before prescribing any rules
or requirements as to accounts, records, or
memoranda, or as to depreciation or amortization rates, shall notify each State commission
having jurisdiction with respect to any naturalgas company involved and shall give reasonable
opportunity to each such commission to present
its views and shall receive and consider such
views and recommendations.
(June 21, 1938, ch. 556, § 9, 52 Stat. 826.)
§ 717i. Periodic and special reports
(a) Form and contents of reports
Every natural-gas company shall file with the
Commission such annual and other periodic or
special reports as the Commission may by rules
and regulations or order prescribe as necessary
or appropriate to assist the Commission in the
proper administration of this chapter. The Commission may prescribe the manner and form in
which such reports shall be made, and require
from such natural-gas companies specific answers to all questions upon which the Commission may need information. The Commission
may require that such reports shall include,
among other things, full information as to assets and liabilities, capitalization, investment
and reduction thereof, gross receipts, interest
due and paid, depreciation, amortization, and
other reserves, cost of facilities, cost of maintenance and operation of facilities for the production, transportation, or sale of natural gas, cost
of renewal and replacement of such facilities,
transportation, delivery, use, and sale of natural
gas. The Commission may require any such natural-gas company to make adequate provision
for currently determining such costs and other
facts. Such reports shall be made under oath unless the Commission otherwise specifies.
(b) Unlawful conduct
It shall be unlawful for any natural-gas company willfully to hinder, delay, or obstruct the
making, filing, or keeping of any information,
document, report, memorandum, record, or account required to be made, filed, or kept under
this chapter or any rule, regulation, or order
thereunder.
(June 21, 1938, ch. 556, § 10, 52 Stat. 826.)

§ 717l

§ 717j. State compacts for conservation, transportation, etc., of natural gas
(a) Assembly of pertinent information; report to
Congress
In case two or more States propose to the Congress compacts dealing with the conservation,
production, transportation, or distribution of
natural gas it shall be the duty of the Commission to assemble pertinent information relative
to the matters covered in any such proposed
compact, to make public and to report to the
Congress information so obtained, together with
such recommendations for further legislation as
may appear to be appropriate or necessary to
carry out the purposes of such proposed compact
and to aid in the conservation of natural-gas resources within the United States and in the orderly, equitable, and economic production,
transportation, and distribution of natural gas.
(b) Assembly of information relative to operation
of compact; report to Congress
It shall be the duty of the Commission to assemble and keep current pertinent information
relative to the effect and operation of any compact between two or more States heretofore or
hereafter approved by the Congress, to make
such information public, and to report to the
Congress, from time to time, the information so
obtained, together with such recommendations
as may appear to be appropriate or necessary to
promote the purposes of such compact.
(c) Availability of services, etc., of other agencies
In carrying out the purposes of this chapter,
the Commission shall, so far as practicable,
avail itself of the services, records, reports, and
information of the executive departments and
other agencies of the Government, and the
President may, from time to time, direct that
such services and facilities be made available to
the Commission.
(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

§ 717m

TITLE 15—COMMERCE AND TRADE

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
The Commission may investigate any facts,
conditions, practices, or matters which it may
find necessary or proper in order to determine
whether any person has violated or is about to
violate any provisions of this chapter or any
rule, regulation, or order thereunder, or to aid
in the enforcement of the provisions of this
chapter or in prescribing rules or regulations
thereunder, or in obtaining information to serve
as a basis for recommending further legislation
to the Congress. The Commission may permit
any person to file with it a statement in writing,
under oath or otherwise, as it shall determine,
as to any or all facts and circumstances concerning a matter which may be the subject of investigation. The Commission, in its discretion,
may publish in the manner authorized by section 825k of title 16, and make available to State
commissions and municipalities, information
concerning any such matter.
(b) Determination of adequacy of gas reserves
The Commission may, after hearing, determine the adequacy or inadequacy of the gas reserves held or controlled by any natural-gas
company, or by anyone on its behalf, including
its owned or leased properties or royalty contracts; and may also, after hearing, determine
the propriety and reasonableness of the inclusion in operating expenses, capital, or surplus of
all delay rentals or other forms of rental or
compensation for unoperated lands and leases.
For the purpose of such determinations, the
Commission may require any natural-gas company to file with the Commission true copies of
all its lease and royalty agreements with respect to such gas reserves.
(c) Administration of oaths and affirmations;
subpena of witnesses, etc.
For the purpose of any investigation or any
other proceeding under this chapter, any member of the Commission, or any officer designated
by it, is empowered to administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence,
memoranda, contracts, agreements, or other
records which the Commission finds relevant or
material to the inquiry. Such attendance of witnesses and the production of any such records
may be required from any place in the United
States or at any designated place of hearing.
Witnesses summoned by the Commission to appear before it shall be paid the same fees and
mileage that are paid witnesses in the courts of
the United States.
(d) Jurisdiction of courts of United States
In case of contumacy by, or refusal to obey a
subpena issued to, any person, the Commission
may invoke the aid of any court of the United
States within the jurisdiction of which such investigation or proceeding is carried on, or where

Page 1022

such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, contracts, agreements, and other records. Such court may issue
an order requiring such person to appear before
the Commission or member or officer designated
by the Commission, there to produce records, if
so ordered, or to give testimony touching the
matter under investigation or in question; and
any failure to obey such order of the court may
be punished by such court as a contempt thereof. All process in any such case may be served in
the judicial district whereof such person is an
inhabitant or wherever he may be found or may
be doing business. Any person who willfully
shall fail or refuse to attend and testify or to answer any lawful inquiry or to produce books, papers, correspondence, memoranda, contracts,
agreements, or other records, if in his or its
power so to do, in obedience to the subpena of
the Commission, shall be guilty of a misdemeanor and upon conviction shall be subject
to a fine of not more than $1,000 or to imprisonment for a term of not more than one year, or
both.
(e) Testimony of witnesses
The testimony of any witness may be taken at
the instance of a party, in any proceeding or investigation pending before the Commission, by
deposition at any time after the proceeding is at
issue. The Commission may also order testimony to be taken by deposition in any proceeding or investigation pending before it at any
stage of such proceeding or investigation. Such
depositions may be taken before any person authorized to administer oaths not being of counsel or attorney to either of the parties, nor interested in the proceeding or investigation. Reasonable notice must first be given in writing by
the party or his attorney proposing to take such
deposition to the opposite party or his attorney
of record, as either may be nearest, which notice
shall state the name of the witness and the time
and place of the taking of his deposition. Any
person may be compelled to appear and depose,
and to produce documentary evidence, in the
same manner as witnesses may be compelled to
appear and testify and produce documentary
evidence before the Commission, as hereinbefore
provided. Such testimony shall be reduced to
writing by the person taking deposition, or
under his direction, and shall, after it has been
reduced to writing, be subscribed by the deponent.
(f) Deposition of witnesses in a foreign country
If a witness whose testimony may be desired
to be taken by deposition be in a foreign country, the deposition may be taken before an officer or person designated by the Commission, or
agreed upon by the parties by stipulation in
writing to be filed with the Commission. All
depositions must be promptly filed with the
Commission.
(g) Witness fees
Witnesses whose depositions are taken as authorized in this chapter, and the person or officer taking the same, shall be entitled to the
same fees as are paid for like services in the
courts of the United States.

Page 1023

TITLE 15—COMMERCE AND TRADE

(June 21, 1938, ch. 556, § 14, 52 Stat. 828; Pub. L.
91–452, title II, § 218, Oct. 15, 1970, 84 Stat. 929.)
AMENDMENTS
1970—Subsec. (h). Pub. L. 91–452 struck out subsec. (h)
which related to the immunity from prosecution of any
individual compelled to testify or produce evidence,
documentary or otherwise, after claiming his privilege
against self-incrimination.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91–452 effective on sixtieth
day following Oct. 15, 1970, and not to affect any immunity to which any individual is entitled under this section by reason of any testimony given before sixtieth
day following Oct. 15, 1970, see section 260 of Pub. L.
91–452, set out as an Effective Date; Savings Provision
note under section 6001 of Title 18, Crimes and Criminal
Procedure.
STUDY AND REPORT ON NATURAL GAS PIPELINE AND
STORAGE FACILITIES IN NEW ENGLAND
Pub. L. 107–355, § 26, Dec. 17, 2002, 116 Stat. 3012, provided that:
‘‘(a) STUDY.—The Federal Energy Regulatory Commission, in consultation with the Department of Energy, shall conduct a study on the natural gas pipeline
transmission network in New England and natural gas
storage facilities associated with that network.
‘‘(b) CONSIDERATION.—In carrying out the study, the
Commission shall consider the ability of natural gas
pipeline and storage facilities in New England to meet
current and projected demand by gas-fired power generation plants and other consumers.
‘‘(c) REPORT.—Not later than 1 year after the date of
enactment of this Act [Dec. 17, 2002], the Federal Energy Regulatory Commission shall prepare and submit
to the Committee on Energy and Natural Resources of
the Senate and the Committee on Energy and Commerce of the House of Representatives a report containing the results of the study conducted under subsection
(a), including recommendations for addressing potential natural gas transmission and storage capacity
problems in New England.’’

§ 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
The Commission shall act as the lead agency
for the purposes of coordinating all applicable
Federal authorizations and for the purposes of
complying with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(2) Other agencies
Each Federal and State agency considering
an aspect of an application for Federal authorization shall cooperate with the Commission

§ 717n

and comply with the deadlines established by
the Commission.
(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
If a Federal or State administrative agency
does not complete a proceeding for an approval that is required for a Federal authorization in accordance with the schedule established by the Commission, the applicant may
pursue remedies under section 717r(d) of this
title.
(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
Hearings under this chapter may be held before the Commission, any member or members
thereof, or any representative of the Commission designated by it, and appropriate records
thereof shall be kept. In any proceeding before
it, the Commission in accordance with such
rules and regulations as it may prescribe, may
admit as a party any interested State, State
commission, municipality or any representative
of interested consumers or security holders, or
any competitor of a party to such proceeding, or
any other person whose participation in the proceeding may be in the public interest.
(f) Procedure
All hearings, investigations, and proceedings
under this chapter shall be governed by rules of
practice and procedure to be adopted by the
Commission, and in the conduct thereof the
technical rules of evidence need not be applied.
No informality in any hearing, investigation, or
proceeding or in the manner of taking testimony shall invalidate any order, decision, rule,
or regulation issued under the authority of this
chapter.

§ 717o

TITLE 15—COMMERCE AND TRADE

(June 21, 1938, ch. 556, § 15, 52 Stat. 829; Pub. L.
109–58, title III, § 313(a), Aug. 8, 2005, 119 Stat.
688.)
REFERENCES IN TEXT
The National Environmental Policy Act of 1969, referred to in subsec. (b)(1), is Pub. L. 91–190, Jan. 1, 1970,
83 Stat. 852, as amended, which is classified generally
to chapter 55 (§ 4321 et seq.) of Title 42, The Public
Health and Welfare. For complete classification of this
Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.
The Coastal Zone Management Act of 1972, referred to
in subsec. (d)(1), is title III of Pub. L. 89–454, as added
by Pub. L. 92–583, Oct. 27, 1972, 86 Stat. 1280, as amended, which is classified generally to chapter 33 (§ 1451 et
seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title note set
out under section 1451 of Title 16 and Tables.
AMENDMENTS
2005—Pub. L. 109–58 substituted ‘‘Process coordination; hearings; rules of procedure’’ for ‘‘Hearings; rules
of procedure’’ in section catchline, added subsecs. (a) to
(d), and redesignated former subsecs. (a) and (b) as (e)
and (f), respectively.

§ 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
The Commission may refer any matter arising
in the administration of this chapter to a board
to be composed of a member or members, as determined by the Commission, from the State or
each of the States affected or to be affected by
such matter. Any such board shall be vested
with the same power and be subject to the same
duties and liabilities as in the case of a member
of the Commission when designated by the Commission to hold any hearings. The action of such
board shall have such force and effect and its

Page 1024

proceedings shall be conducted in such manner
as the Commission shall by regulations prescribe. The Board shall be appointed by the
Commission from persons nominated by the
State commission of each State affected, or by
the Governor of such State if there is no State
commission. Each State affected shall be entitled to the same number of representatives on
the board unless the nominating power of such
State waives such right. The Commission shall
have discretion to reject the nominee from any
State, but shall thereupon invite a new nomination from that State. The members of a board
shall receive such allowances for expenses as the
Commission shall provide. The Commission
may, when in its discretion sufficient reason exists therefor, revoke any reference to such a
board.
(b) Conference with State commissions regarding rate structure, costs, etc.
The Commission may confer with any State
commission regarding rate structures, costs, accounts, charges, practices, classifications, and
regulations of natural-gas companies; and the
Commission is authorized, under such rules and
regulations as it shall prescribe, to hold joint
hearings with any State commission in connection with any matter with respect to which the
Commission is authorized to act. The Commission is authorized in the administration of this
chapter to avail itself of such cooperation, services, records, and facilities as may be afforded
by any State commission.
(c) Information and reports available to State
commissions
The Commission shall make available to the
several State commissions such information and
reports as may be of assistance in State regulation of natural-gas companies. Whenever the
Commission can do so without prejudice to the
efficient and proper conduct of its affairs, it
may, upon request from a State commission,
make available to such State commission as
witnesses any of its trained rate, valuation, or
other experts, subject to reimbursement of the
compensation and traveling expenses of such
witnesses. All sums collected hereunder shall be
credited to the appropriation from which the
amounts were expended in carrying out the provisions of this subsection.
(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.)
CODIFICATION
Provisions that authorized the Commission to appoint and fix the compensation of such officers, attor-

Page 1025

TITLE 15—COMMERCE AND TRADE

neys, examiners, and experts as may be necessary for
carrying out its functions under this chapter ‘‘without
regard to the provisions of other laws applicable to the
employment and compensation of officers and employees of the United States’’ are omitted as obsolete and
superseded.
As to the compensation of such personnel, sections
1202 and 1204 of the Classification Act of 1949, 63 Stat.
972, 973, repealed the Classification Act of 1923 and all
other laws or parts of laws inconsistent with the 1949
Act. The Classification Act of 1949 was repealed by Pub.
L. 89–554, Sept. 6, 1966, § 8(a), 80 Stat. 632, and reenacted
as chapter 51 and subchapter III of chapter 53 of Title
5, Government Organization and Employees. Section
5102 of Title 5 contains the applicability provisions of
the 1949 Act, and section 5103 of Title 5 authorizes the
Office of Personnel Management to determine the applicability to specific positions and employees.
Such appointments are now subject to the civil service laws unless specifically excepted by those laws or
by laws enacted subsequent to Executive Order 8743,
Apr. 23, 1941, issued by the President pursuant to the
Act of Nov. 26, 1940, ch. 919, title I, § 1, 54 Stat. 1211,
which covered most excepted positions into the classified (competitive) civil service. The Order is set out as
a note under section 3301 of Title 5.
‘‘Chapter 51 and subchapter III of chapter 53 of title
5’’ substituted in text for ‘‘the Classification Act of
1949, as amended’’ on authority of Pub. L. 89–554, § 7(b),
Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5.
AMENDMENTS
1949—Act Oct. 28, 1949, substituted ‘‘Classification Act
of 1949’’ for ‘‘Classification Act of 1923’’.
REPEALS
Act Oct. 28, 1949, ch. 782, cited as a credit to this section, was repealed (subject to a savings clause) by Pub.
L. 89–554, Sept. 6, 1966, § 8, 80 Stat. 632, 655.

§ 717r. Rehearing and review
(a) Application for rehearing; time
Any person, State, municipality, or State
commission aggrieved by an order issued by the
Commission in a proceeding under this chapter
to which such person, State, municipality, or
State commission is a party may apply for a rehearing within thirty days after the issuance of
such order. The application for rehearing shall
set forth specifically the ground or grounds
upon which such application is based. Upon such
application the Commission shall have power to
grant or deny rehearing or to abrogate or modify its order without further hearing. Unless the
Commission acts upon the application for rehearing within thirty days after it is filed, such
application may be deemed to have been denied.
No proceeding to review any order of the Commission shall be brought by any person unless
such person shall have made application to the
Commission for a rehearing thereon. Until the
record in a proceeding shall have been filed in a
court of appeals, as provided in subsection (b) of
this section, the Commission may at any time,
upon reasonable notice and in such manner as it
shall deem proper, modify or set aside, in whole
or in part, any finding or order made or issued
by it under the provisions of this chapter.
(b) Review of Commission order
Any party to a proceeding under this chapter
aggrieved by an order issued by the Commission
in such proceeding may obtain a review of such
order in the court of appeals of the United

§ 717r

States for any circuit wherein the natural-gas
company to which the order relates is located or
has its principal place of business, or in the
United States Court of Appeals for the District
of Columbia, by filing in such court, within
sixty days after the order of the Commission
upon the application for rehearing, a written petition praying that the order of the Commission
be modified or set aside in whole or in part. A
copy of such petition shall forthwith be transmitted by the clerk of the court to any member
of the Commission and thereupon the Commission shall file with the court the record upon
which the order complained of was entered, as
provided in section 2112 of title 28. Upon the filing of such petition such court shall have jurisdiction, which upon the filing of the record with
it shall be exclusive, to affirm, modify, or set
aside such order in whole or in part. No objection to the order of the Commission shall be
considered by the court unless such objection
shall have been urged before the Commission in
the application for rehearing unless there is reasonable ground for failure so to do. The finding
of the Commission as to the facts, if supported
by substantial evidence, shall be conclusive. If
any party shall apply to the court for leave to
adduce additional evidence, and shall show to
the satisfaction of the court that such additional evidence is material and that there were
reasonable grounds for failure to adduce such
evidence in the proceedings before the Commission, the court may order such additional evidence to be taken before the Commission and to
be adduced upon the hearing in such manner and
upon such terms and conditions as to the court
may seem proper. The Commission may modify
its findings as to the facts by reason of the additional evidence so taken, and it shall file with
the court such modified or new findings, which
is supported by substantial evidence, shall be
conclusive, and its recommendation, if any, for
the modification or setting aside of the original
order. The judgment and decree of the court, affirming, modifying, or setting aside, in whole or
in part, any such order of the Commission, shall
be final, subject to review by the Supreme Court
of the United States upon certiorari or certification as provided in section 1254 of title 28.
(c) Stay of Commission order
The filing of an application for rehearing
under subsection (a) of this section shall not,
unless specifically ordered by the Commission,
operate as a stay of the Commission’s order. The
commencement of proceedings under subsection
(b) of this section shall not, unless specifically
ordered by the court, operate as a stay of the
Commission’s order.
(d) Judicial review
(1) In general
The United States Court of Appeals for the
circuit in which a facility subject to section
717b of this title or section 717f of this title is
proposed to be constructed, expanded, or operated shall have original and exclusive jurisdiction over any civil action for the review of an
order or action of a Federal agency (other
than the Commission) or State administrative
agency acting pursuant to Federal law to

§ 717s

TITLE 15—COMMERCE AND TRADE

issue, condition, or deny any permit, license,
concurrence, or approval (hereinafter collectively referred to as ‘‘permit’’) required under
Federal law, other than the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.).
(2) Agency delay
The United States Court of Appeals for the
District of Columbia shall have original and
exclusive jurisdiction over any civil action for
the review of an alleged failure to act by a
Federal agency (other than the Commission)
or State administrative agency acting pursuant to Federal law to issue, condition, or deny
any permit required under Federal law, other
than the Coastal Zone Management Act of 1972
(16 U.S.C. 1451 et seq.), for a facility subject to
section 717b of this title or section 717f of this
title. The failure of an agency to take action
on a permit required under Federal law, other
than the Coastal Zone Management Act of
1972, in accordance with the Commission
schedule established pursuant to section
717n(c) of this title shall be considered inconsistent with Federal law for the purposes of
paragraph (3).
(3) Court action
If the Court finds that such order or action
is inconsistent with the Federal law governing
such permit and would prevent the construction, expansion, or operation of the facility
subject to section 717b of this title or section
717f of this title, the Court shall remand the
proceeding to the agency to take appropriate
action consistent with the order of the Court.
If the Court remands the order or action to the
Federal or State agency, the Court shall set a
reasonable schedule and deadline for the agency to act on remand.
(4) Commission action
For any action described in this subsection,
the Commission shall file with the Court the
consolidated record of such order or action to
which the appeal hereunder relates.
(5) Expedited review
The Court shall set any action brought
under this subsection for expedited consideration.
(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.)
REFERENCES IN TEXT
The Coastal Zone Management Act of 1972, referred to
in subsec. (d)(1), (2), is title III of Pub. L. 89–454, as
added by Pub. L. 92–583, Oct. 27, 1972, 86 Stat. 1280, as
amended, which is classified generally to chapter 33
(§ 1451 et seq.) of Title 16, Conservation. For complete
classification of this Act to the Code, see Short Title
note set out under section 1451 of Title 16 and Tables.
CODIFICATION
In subsec. (b), ‘‘section 1254 of title 28’’ substituted
for ‘‘sections 239 and 240 of the Judicial Code, as amended [28 U.S.C. 346, 347]’’ on authority of act June 25, 1948,
ch. 646, 62 Stat. 869, the first section of which enacted
Title 28, Judiciary and Judicial Procedure.
AMENDMENTS
2005—Subsec. (d). Pub. L. 109–58 added subsec. (d).

Page 1026

1958—Subsec. (a). Pub. L. 85–791, § 19(a), inserted sentence providing that until record in a proceeding has
been filed in a court of appeals, Commission may modify or set aside any finding or order issued by it.
Subsec. (b). Pub. L. 85–791, § 19(b), in second sentence,
substituted ‘‘transmitted by the clerk of the court to’’
for ‘‘served upon’’, substituted ‘‘file with the court’’ for
‘‘certify and file with the court a transcript of’’, and inserted ‘‘as provided in section 2112 of title 28’’, and, in
third sentence, substituted ‘‘petition’’ for ‘‘transcript’’,
and ‘‘jurisdiction, which upon the filing of the record
with it shall be exclusive’’ for ‘‘exclusive jurisdiction’’.
CHANGE OF NAME
Act June 25, 1948, eff. Sept. 1, 1948, as amended by act
May 24, 1949, substituted ‘‘court of appeals’’ for ‘‘circuit
court of appeals’’ wherever appearing.

§ 717s. Enforcement of chapter
(a) Action in district court for injunction
Whenever it shall appear to the Commission
that any person is engaged or about to engage in
any acts or practices which constitute or will
constitute a violation of the provisions of this
chapter, or of any rule, regulation, or order
thereunder, it may in its discretion bring an action in the proper district court of the United
States, or the United States courts of any Territory or other place subject to the jurisdiction of
the United States, to enjoin such acts or practices and to enforce compliance with this chapter or any rule, regulation, or order thereunder,
and upon a proper showing a permanent or temporary injunction or decree or restraining order
shall be granted without bond. The Commission
may transmit such evidence as may be available
concerning such acts or practices or concerning
apparent violations of the Federal antitrust
laws to the Attorney General, who, in his discretion, may institute the necessary criminal proceedings.
(b) Mandamus
Upon application of the Commission 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 jurisdiction to issue writs of mandamus commanding any person to comply with the
provisions of this chapter or any rule, regulation, or order of the Commission thereunder.
(c) Employment of attorneys by Commission
The Commission may employ such attorneys
as it finds necessary for proper legal aid and
service of the Commission or its members in the
conduct of their work, or for proper representation of the public interest in investigations
made by it, or cases or proceedings pending before it, whether at the Commission’s own instance or upon complaint, or to appear for or
represent the Commission in any case in court;
and the expenses of such employment shall be
paid out of the appropriation for the Commission.
(d) Violation of market manipulation provisions
In any proceedings under subsection (a) of this
section, 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

Page 1027

TITLE 15—COMMERCE AND TRADE

§ 717t–2

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.

(b) Notice
The penalty shall be assessed by the Commission after notice and opportunity for public
hearing.
(c) Amount
In determining the amount of a proposed penalty, the Commission shall take into consideration the nature and seriousness of the violation
and the efforts to remedy the violation.

(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.)

(June 21, 1938, ch. 556, § 22, as added Pub. L.
109–58, title III, § 314(b)(1)(B), Aug. 8, 2005, 119
Stat. 691.)

CODIFICATION

PRIOR PROVISIONS

The words ‘‘the District Court of the United States
for the District of Columbia’’ in subsec. (a) following
‘‘district court of the United States’’ and in subsec. (b)
following ‘‘district courts of the United States’’ omitted as superfluous in view of section 132(a) of Title 28,
Judiciary and Judicial Procedure, which states that
‘‘There shall be in each judicial district a district court
which shall be a court of record known as the United
States District Court for the district’’, and section 88 of
title 28 which states that ‘‘The District of Columbia
constitutes one judicial district’’.

A prior section 22 of act June 21, 1938, was renumbered section 24 and is classified to section 717u of this
title.

AMENDMENTS
2005—Subsec. (d). Pub. L. 109–58 added subsec. (d).

§ 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.)
AMENDMENTS
2005—Subsec. (a). Pub. L. 109–58, § 314(a)(1)(A), substituted ‘‘$1,000,000’’ for ‘‘$5,000’’ and ‘‘5 years’’ for ‘‘two
years’’.
Subsec. (b). Pub. L. 109–58, § 314(a)(1)(B), substituted
‘‘$50,000’’ for ‘‘$500’’.

§ 717t–1. Civil penalty authority
(a) In general
Any person that violates this chapter, or any
rule, regulation, restriction, condition, or order
made or imposed by the Commission under authority of this chapter, shall be subject to a
civil penalty of not more than $1,000,000 per day
per violation for as long as the violation continues.

§ 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) of this section.
(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) of this
section, 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.

§ 717u

TITLE 15—COMMERCE AND TRADE

(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.)
REFERENCES IN TEXT
The Commodity Exchange Act, referred to in subsec.
(c)(2), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as
amended, which is classified generally to chapter 1 (§ 1
et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and
Tables.
PRIOR PROVISIONS
A prior section 23 of act June 21, 1938, was renumbered section 25 and is classified to section 717v of this
title.

§ 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 oc-

Page 1028

curred. 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.)
CODIFICATION
The words ‘‘the District Court of the United States
for the District of Columbia’’ following ‘‘The District
Courts of the United States’’ omitted as superfluous in
view of section 132(a) of Title 28, Judiciary and Judicial
Procedure, which states that ‘‘There shall be in each
judicial district a district court which shall be a court
of record known as the United States District Court for
the district’’ and section 88 of title 28 which states that
‘‘The District of Columbia constitutes one judicial district’’.
‘‘Sections 1254, 1291, and 1292 of title 28’’ substituted
in text for ‘‘sections 128 and 240 of the Judicial Code, as
amended [28 U.S.C. 225 and 347]’’ on authority of act
June 25, 1948, ch. 646, 62 Stat. 869, the first section of
which enacted Title 28.
PRIOR PROVISIONS
A prior section 24 of act June 21, 1938, was renumbered section 26 and is classified to section 717w of this
title.

§ 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.)
SHORT TITLE OF 1988 AMENDMENT
Pub. L. 100–474, § 1, Oct. 6, 1988, 102 Stat. 2302, provided
that: ‘‘This Act [amending section 717f of this title and
enacting provisions set out as a note under section 717f
of this title] may be cited as the ‘Uniform Regulatory
Jurisdiction Act of 1988’.’’

§ 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 Com-

Page 1029

TITLE 15—COMMERCE AND TRADE

mission 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.
Subsection (a) of this section shall not limit
or otherwise affect any provision of any curtailment plan, or any other provision of law or regulation, under which natural gas may be diverted
or allocated to respond to emergency situations
or to protect public health, safety, and welfare.
(c) Definitions
For 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.)
REFERENCES IN TEXT
The Natural Gas Policy Act of 1978, referred to in subsec. (c)(3), is Pub. L. 95–621, Nov. 9, 1978, 92 Stat. 3350,
as amended, which is classified generally to chapter 60
(§ 3301 et seq.) of this title. For complete classification
of this Act to the Code, see Short Title note set out
under section 3301 of this title and Tables.
The Natural Gas Act, referred to in subsec. (c)(3), is
act June 21, 1938, ch. 556, 52 Stat. 821, as amended,
which is classified generally to this chapter (§ 717 et
seq.). For complete classification of this Act to the
Code, see section 717w of this title and Tables.
CODIFICATION
Section was enacted as part of the Public Utility
Regulatory Policies Act of 1978, and not as part of the
Natural Gas Act which comprises this chapter.
DEFINITIONS
For definitions of terms used in this section, see section 2602 of Title 16, Conservation.

§ 717y

§ 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 or 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)
of this section 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

§ 717y

TITLE 15—COMMERCE AND TRADE

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) of
this section 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) of this
section to determine the maximum consideration permitted as just compensation under this
section.
(c) Restrictions on transfers unenforceable
Any provision of any contract, which provision prohibits any transfer of any contractual
interests thereunder, or any commingling or
transportation of natural gas subject to such
contract with natural gas the sale for resale or
transportation of which is subject to the jurisdiction of the Commission under the Natural
Gas Act [15 U.S.C. 717 et seq.], or terminates
such contract on the basis of any such transfer,
commingling, or transportation, shall be unenforceable in any court of the United States and
in any court of any State if applied with respect
to any transfer approved under the rule required
under subsection (a)(1) of this section.
(d) Contractual obligations unaffected
The person acquiring contractual interests
transferred pursuant to the rule required under
subsection (a)(1) of this section shall assume the
contractual obligations which the person transferring such contractual interests has under
such contract. This section shall not relieve the
person transferring such contractual interests
from any contractual obligation of such person
under such contract if such obligation is not
performed by the person acquiring such contractual interests.
(e) Definitions
For 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) of this section, 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) of this section, 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

Page 1030

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) of this section, 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) of this section,
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) of
this section; 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

Page 1031

§ 717z

TITLE 15—COMMERCE AND TRADE

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 this chapter
(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) of this
section.
(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) of this section.
(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) of this section.
(g) Volume limitation
No 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) of this section, 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) of this section, 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.)
REFERENCES IN TEXT
The Natural Gas Act, referred to in subsecs.
(a)(2)(A)(i)(II), (b)(1), (c), (e)(5), (9), (11), (12), (f)(2), (3), is
act June 21, 1938, ch. 556, 52 Stat. 821, as amended,
which is classified generally to this chapter (§ 717 et
seq.). For complete classification of this Act to the
Code, see section 717w of this title and Tables.
The Powerplant and Industrial Fuel Use Act of 1978,
referred to in subsec. (e)(10), is Pub. L. 95–620, Nov. 9,
1978, 92 Stat. 3291, as amended, which is classified principally to chapter 92 (§ 8301 et seq.) of Title 42, The Public Health and Welfare. For complete classification of
this Act to the Code, see Short Title note set out under
section 8301 of Title 42 and Tables.
The Natural Gas Policy Act of 1978, referred to in subsec. (e)(11), is Pub. L. 95–621, Nov. 9, 1978, 92 Stat. 3350,
as amended, which is classified generally to chapter 60
(§ 3301 et seq.) of this title. For complete classification
of this Act to the Code, see Short Title note set out
under section 3301 of this title and Tables.
CODIFICATION
Section was enacted as part of the Public Utility
Regulatory Policies Act of 1978, and not as part of the
Natural Gas Act which comprises this chapter.
DEFINITIONS
For definitions of terms used in this section, see section 2602 of Title 16, Conservation.

§ 717z. Emergency conversion of utilities and
other facilities
(a) Presidential declaration
The 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) of this section, shall terminate at the
earlier of—
(A) the date on which the President finds
that any shortage described in subsection (a)
of this section 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) of this section, any emergency (or extension
thereof) previously declared under subsection (a)
of this section, upon the expiration of such declaration of emergency (or extension thereof)
under paragraph (1)(B).
(c) Prohibitions
During a natural gas emergency declared
under this section, the President may, by order,

§ 717z

TITLE 15—COMMERCE AND TRADE

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
The President may specify in any order issued
under this section the periods of time during
which such order will be in effect and the quantity (or rate of use) of natural gas that may be
burned by an electric powerplant or major fuelburning installation during such period, including the burning of natural gas by an electric
powerplant to meet peak load requirements. No
such order may continue in effect after the termination or expiration of such natural gas supply emergency.
(e) Exemption for secondary uses
The President shall exempt from any order issued under this section the burning of natural
gas for the necessary processes of ignition,
startup, testing, and flame stabilization by an
electric powerplant or major fuel-burning installation.
(f) Exemption for air-quality emergencies
The President shall exempt any electric
powerplant or major fuel-burning installation in
whole or in part, from any order issued under
this section for such period and to such extent
as the President determines necessary to alleviate any imminent and substantial endangerment to the health of persons within the meaning of section 7603 of title 42.
(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 wit-

Page 1032

nesses 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) Definitions
For 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
In applying the provisions of this section in
the case of natural gas subject to a prohibition
order issued under this section, the term ‘‘petroleum products’’ (as defined in subsection (h)(2)
of this section) shall be substituted for the term
‘‘heavy petroleum fuel oil’’ (as defined in section
717y(e)(7) of this title) if the person subject to
any order under this section demonstrates to
the Commission that the acquisition and use of
heavy petroleum fuel oil is not technically or
economically feasible.
(Pub. L. 95–617, title VI, § 607, Nov. 9, 1978, 92
Stat. 3171.)
CODIFICATION
Section was enacted as part of the Public Utility
Regulatory Policies Act of 1978, and not as part of the
Natural Gas Act which comprises this chapter.
DELEGATION OF FUNCTIONS
Functions of President under this section, except for
authority to declare, extend, and terminate a natural
gas supply emergency pursuant to subsecs. (a) and (b)
of this section, delegated to Secretary of Energy, see
section 1–102 of Ex. Ord. No. 12235, Sept. 3, 1980, 45 F.R.
58803, set out as a note under section 3364 of this title.
DEFINITIONS
For definitions of terms used in this section, see section 2602 of Title 16, Conservation.

CHAPTER 15C—ALASKA NATURAL GAS
TRANSPORTATION
Sec.

719.
719a.
719b.
719c.

Congressional findings.
Congressional statement of purpose.
Definitions.
Federal Power Commission reviews and reports.