15 USC 717c

§ 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.