15 Usc 3301-3432

Page 1773

§ 3211

TITLE 15—COMMERCE AND TRADE
DEFINITIONS

The definitions of Secretary and State in section 2602
of Title 16, Conservation, apply to this section.

§ 3208. Relationship to other applicable law
Nothing in this chapter prohibits any State
regulatory authority or nonregulated gas utility
from adopting, pursuant to State law, any
standard or rule affecting gas utilities which is
different from any standard established by this
chapter.
(Pub. L. 95–617, title III, § 308, Nov. 9, 1978, 92
Stat. 3153.)

much of such proceeding or action as takes
place after such date.
(Pub. L. 95–617, title III, § 310, Nov. 9, 1978, 92
Stat. 3154.)
§ 3211. Relationship to other authority
Nothing in this chapter shall be construed to
limit or affect any authority of the Secretary or
the Commission under any other provision of
law.
(Pub. L. 95–617, title III, § 311, Nov. 9, 1978, 92
Stat. 3154.)
DEFINITIONS

DEFINITIONS
The definition of State in section 2602 of Title 16,
Conservation, applies to this section.

The definitions of Secretary and Commission in section 2602 of Title 16, Conservation, apply to this section.

§ 3209. Reports respecting standards

CHAPTER 60—NATURAL GAS POLICY

(a) State authorities and nonregulated utilities

Sec.

Not later than 1 year after November 9, 1978,
and annually thereafter for 10 years, each State
regulatory authority (with respect to each gas
utility for which it has ratemaking authority),
and each nonregulated gas utility, shall report
to the Secretary, in such manner as the Secretary shall prescribe, respecting its consideration of the standards established by this chapter. Such report shall include a summary of the
determinations made and actions taken with respect to each of such standards on a utility-byutility basis.
(b) Secretary
Not later than 18 months after November 9,
1978, and annually thereafter for 10 years, the
Secretary shall submit a report to the President
and the Congress containing—
(1) a summary of the reports submitted
under subsection (a),
(2) his analysis of such reports, and
(3) his actions under this chapter, and his
recommendations for such further Federal actions, including any legislation, regarding retail gas utility rates (and other practices) as
may be necessary to carry out the purposes of
this chapter.

3301.

(Pub. L. 95–617, title III, § 309, Nov. 9, 1978, 92
Stat. 3153.)

3311 to 3320, 3331 to 3333. Repealed.
SUBCHAPTER II—INCREMENTAL PRICING
3341 to 3348. Repealed.
SUBCHAPTER III—ADDITIONAL AUTHORITIES
AND REQUIREMENTS
PART A—EMERGENCY AUTHORITY
3361.
3362.
3363.
3364.

Declaration of emergency.
Emergency purchase authority.
Emergency allocation authority.
Miscellaneous provisions.

PART B—OTHER AUTHORITIES AND REQUIREMENTS
3371.
3372.
3373.
3374.
3375.

Authorization of certain sales and transportation.
Assignment of contractual rights to receive
surplus natural gas.
Effect of certain natural gas prices on indefinite price escalator clauses.
Clauses prohibiting certain sales, transportation, and commingling.
Filing of contracts and agreements.

SUBCHAPTER IV—NATURAL GAS CURTAILMENT
POLICIES
3391.
3391a.
3392.

DEFINITIONS

3393.

The definition of Secretary in section 2602 of Title 16,
Conservation, applies to this section.

3394.

§ 3210. Prior and pending proceedings
For purposes of this chapter, proceedings commenced by any State regulatory authority (with
respect to gas utilities for which it has ratemaking authority) and any nonregulated gas
utility before November 9, 1978, and actions
taken before such date in such proceedings shall
be treated as complying with the requirements
of this chapter if such proceedings and actions
substantially conform to such requirements. For
purposes of this chapter, any such proceeding or
action commenced before November 9, 1978, but
not completed before such date shall comply
with the requirements of this chapter, to the
maximum extent practicable, with respect to so

Definitions.
SUBCHAPTER I—WELLHEAD PRICING

Natural gas for essential agricultural uses.
‘‘Essential agricultural use’’ defined.
Natural gas for essential industrial process
and feedstock uses.
Establishment and implementation of priorities.
Limitation on revoking or amending certain
pre-1969 certificates of public convenience
and necessity.
SUBCHAPTER V—ADMINISTRATION,
ENFORCEMENT, AND REVIEW

3411.
3412.
3413.
3414.
3415.
3416.
3417.
3418.

General rulemaking authority.
Administrative procedure.
Repealed.
Enforcement.
Intervention.
Judicial review.
Repealed.
Applicability of other Federal statutory provisions relating to information-gathering.

SUBCHAPTER VI—COORDINATION WITH NATURAL
GAS ACT; MISCELLANEOUS PROVISIONS
3431.
3432.

Coordination with the Natural Gas Act.
Effect on State laws.

§ 3301

TITLE 15—COMMERCE AND TRADE

§ 3301. Definitions
For purposes of this chapter—
(1) Natural gas
The term ‘‘natural gas’’ means either natural gas unmixed, or any mixture of natural
and artificial gas.
(2) Well
The term ‘‘well’’ means any well for the discovery or production of natural gas, crude oil,
or both.
(3) New well
The term ‘‘new well’’ means any well—
(A) the surface drilling of which began on
or after February 19, 1977; or
(B) the depth of which was increased, by
means of drilling on or after February 19,
1977, to a completion location which is located at least 1,000 feet below the depth of
the deepest completion location of such well
attained before February 19, 1977.
(4) Old well
The term ‘‘old well’’ means any well other
than a new well.
(5) Marker well
(A) General rule
The term ‘‘marker well’’ means any well
from which natural gas was produced in
commercial quantities at any time after
January 1, 1970, and before April 20, 1977.
(B) New wells
The term ‘‘marker well’’ does not include
any new well under paragraph (3)(A) but includes any new well under paragraph (3)(B) if
such well qualifies as a marker well under
subparagraph (A) of this paragraph.
(6) Reservoir
The term ‘‘reservoir’’ means any producible
natural accumulation of natural gas, crude
oil, or both, confined—
(A) by impermeable rock or water barriers
and characterized by a single natural pressure system; or
(B) by lithologic or structural barriers
which prevent pressure communication.
(7) Completion location
(A) General rule
The term ‘‘completion location’’ means
any subsurface location from which natural
gas is being or has been produced in commercial quantities.
(B) Marker well
The term ‘‘completion location’’, when
used with reference to any marker well,
means any subsurface location from which
natural gas was produced from such well in
commercial quantities after January 1, 1970,
and before April 20, 1977.
(8) Proration unit
The term ‘‘proration unit’’ means—
(A) any portion of a reservoir, as designated by the State or Federal agency having regulatory jurisdiction with respect to
production from such reservoir, which will

Page 1774

be effectively and efficiently drained by a
single well;
(B) any drilling unit, production unit, or
comparable arrangement, designated or recognized by the State or Federal agency having jurisdiction with respect to production
from the reservoir, to describe that portion
of such reservoir which will be effectively
and efficiently drained by a single well; or
(C) if such portion of a reservoir, unit, or
comparable arrangement is not specifically
provided for by State law or by any action of
any State or Federal agency having regulatory jurisdiction with respect to production from such reservoir, any voluntary unit
agreement or other comparable arrangement
applied, under local custom or practice within the locale in which such reservoir is situated, for the purpose of describing the portion of a reservoir which may be effectively
and efficiently drained by a single well.
(9) New lease
The term ‘‘new lease’’, when used with respect to the Outer Continental Shelf, means a
lease, entered into on or after April 20, 1977, of
submerged acreage.
(10) Old lease
The term ‘‘old lease’’, when used with respect to the Outer Continental Shelf, means
any lease other than a new lease.
(11) New contract
The term ‘‘new contract’’ means any contract, entered into on or after November 9,
1978, for the first sale of natural gas which was
not previously subject to an existing contract.
(12) Rollover contract
The term ‘‘rollover contract’’ means any
contract, entered into on or after November 9,
1978, for the first sale of natural gas that was
previously subject to an existing contract
which expired at the end of a fixed term (not
including any extension thereof taking effect
on or after November 9, 1978) specified by the
provisions of such existing contract, as such
contract was in effect on November 9, 1978,
whether or not there is an identity of parties
or terms with those of such existing contract.
(13) Existing contract
The term ‘‘existing contract’’ means any
contract for the first sale of natural gas in effect on November 8, 1978.
(14) Successor to an existing contract
The term ‘‘successor to an existing contract’’ means any contract, other than a rollover contract, entered into on or after November 9, 1978, for the first sale of natural gas
which was previously subject to an existing
contract, whether or not there is an identity
of parties or terms with those of such existing
contract.
(15) Interstate pipeline
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.].

Page 1775

TITLE 15—COMMERCE AND TRADE

(16) Intrastate pipeline
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 [15 U.S.C. 717 et seq.]
(other than any such pipeline which is not subject to the jurisdiction of the Commission
solely by reason of section 1(c) of the Natural
Gas Act [15 U.S.C. 717(c)]).
(17) Local distribution company
The term ‘‘local distribution company’’
means any person, other than any interstate
pipeline or any intrastate pipeline, engaged in
the transportation, or local distribution, of
natural gas and the sale of natural gas for ultimate consumption.
(18) Committed or dedicated to interstate commerce
(A) General rule
The term ‘‘committed or dedicated to
interstate commerce’’, when used with respect to natural gas, means—
(i) natural gas which is from the Outer
Continental Shelf; and
(ii) natural gas which, if sold, would be
required to be sold in interstate commerce
(within the meaning of the Natural Gas
Act [15 U.S.C. 717 et seq.]) under the terms
of any contract, any certificate under the
Natural Gas Act, or any provision of such
Act.
(B) Exclusion
Such term does not apply with respect to—
(i) natural gas sold in interstate commerce (within the meaning of the Natural
Gas Act [15 U.S.C. 717 et seq.])—
(I) under section 6 of the Emergency
Natural Gas Act of 1977;
(II) under any limited term certificate,
granted pursuant to section 7 of the Natural Gas Act [15 U.S.C. 717f], which contains a pregrant of abandonment of service for such natural gas;
(III) under any emergency regulation
under the second proviso of section 7(c)
of the Natural Gas Act [15 U.S.C. 717f(c)];
or
(IV) to the user by the producer and
transported under any certificate, granted pursuant to section 7(c) of the Natural
Gas Act [15 U.S.C. 717f(c)], if such certificate was specifically granted for the
transportation of that natural gas for
such user;
(ii) natural gas for which abandonment
of service was granted before November 9,
1978, under section 7 of the Natural Gas
Act [15 U.S.C. 717f]; and
(iii) natural gas which, but for this
clause, would be committed or dedicated
to interstate commerce under subparagraph (A)(ii) by reason of the action of any
person (including any successor in interest
thereof, other than by means of any reversion of a leasehold interest), if on May 31,
1978—
(I) neither that person, nor any affiliate thereof, had any right to explore for,

§ 3301

develop, produce, or sell such natural
gas; and
(II) such natural gas was not being sold
in interstate commerce (within the
meaning of the Natural Gas Act [15
U.S.C. 717 et seq.]) for resale (other than
any sale described in clause (i)(I), (II), or
(III)).
(19) Certificated natural gas
The term ‘‘certificated natural gas’’ means
natural gas transported by any interstate
pipeline in a facility for which there is in effect a certificate issued under section 7(c) of
the Natural Gas Act [15 U.S.C. 717f(c)]. Such
term does not include natural gas sold to the
user by the producer and transported pursuant
to a certificate which is specifically issued
under section 7(c) of the Natural Gas Act for
the transportation of that natural gas, for
such user unless such natural gas is used for
the generation of electricity.
(20) Sale
The term ‘‘sale’’ means any sale, exchange,
or other transfer for value.
(21) First sale
(A) General rule
The term ‘‘first sale’’ means any sale of
any volume of natural gas—
(i) to any interstate pipeline or intrastate pipeline;
(ii) to any local distribution company;
(iii) to any person for use by such person;
(iv) which precedes any sale described in
clauses (i), (ii), or (iii); and
(v) which precedes or follows any sale described in clauses (i), (ii), (iii), or (iv) and
is defined by the Commission as a first
sale in order to prevent circumvention of
any maximum lawful price established
under this chapter.
(B) Certain sales not included
Clauses (i), (ii), (iii), or (iv) of subparagraph (A) shall not include the sale of any
volume of natural gas by any interstate
pipeline, intrastate pipeline, or local distribution company, or any affiliate thereof,
unless such sale is attributable to volumes
of natural gas produced by such interstate
pipeline, intrastate pipeline, or local distribution company, or any affiliate thereof.
(22) Deliver
The term ‘‘deliver’’, when used with respect
to any first sale of natural gas, means the
physical delivery from the seller; except that
in the case of the sale of proven reserves in
place to any interstate pipeline, any intrastate pipeline, any local distribution company,
or any user of such natural gas, such term
means the transfer of title to such reserves.
(23) Certificate
The term ‘‘certificate’’, when used with respect to the Natural Gas Act [15 U.S.C. 717 et
seq.], means a certificate of public convenience and necessity issued under such Act.
(24) Commission
The term ‘‘Commission’’ means the Federal
Energy Regulatory Commission.

§§ 3311 to 3320, 3331 to 3333

TITLE 15—COMMERCE AND TRADE

(25) Federal agency
The term ‘‘Federal agency’’ has the same
meaning as given such term in section 105 of
title 5.
(26) Person
The term ‘‘person’’ includes the United
States, any State, and any political subdivision, agency, or instrumentality of the foregoing.
(27) Affiliate
The term ‘‘affiliate’’, when used in relation
to any person, means another person which
controls, is controlled by, or is under common
control with, such person.
(28) Electric utility
The term ‘‘electric utility’’ means any person to the extent such person is engaged in the
business of the generation of electricity and
sale, directly or indirectly, of electricity to
the public.
(29) Mcf
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.
(30) Btu
The term ‘‘Btu’’ means British thermal unit.
(31) Month
The term ‘‘month’’ means a calendar month.
(32) Mile
The term ‘‘mile’’ means a statute mile of
5,280 feet.
(33) United States
The term ‘‘United States’’ means the several
States and includes the Outer Continental
Shelf.
(34) State
The term ‘‘State’’ means each of the several
States and the District of Columbia.
(35) Outer Continental Shelf
The term ‘‘Outer Continental Shelf’’ has the
same meaning as such term has under section
1331(a) of title 43.
(36) Prudhoe Bay Unit of Alaska
The term ‘‘Prudhoe Bay Unit of Alaska’’
means the geographic area subject to the voluntary unit agreement approved by the Commissioner of the Department of Natural Resources of the State of Alaska on June 2, 1977,
and referred to as the ‘‘affected area’’ in Conservation Order No. 145 of the Alaska Oil and
Gas Conservation Committee, Division of Oil
and Gas Conservation, Department of Natural
Resources of the State of Alaska, as such
order was in effect on June 1, 1977, and determined without regard to any adjustments in
the description of the affected area permitted
to be made under such order.
(37) Antitrust laws
The term ‘‘Federal antitrust laws’’ means
the Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 12, 13, 14–19, 20, 21, 22–27), the

Page 1776

Federal Trade Commission Act (15 U.S.C. 41 et
seq.), sections 73 and 74 of the Wilson Tariff
Act (15 U.S.C. 8–9), and the Act of June 19, 1936,
chapter 592 (15 U.S.C. 13, 13a, 13b, and 21a).
(Pub. L. 95–621, § 2, Nov. 9, 1978, 92 Stat. 3352.)
REFERENCES IN TEXT
The Natural Gas Act, and such Act, referred to in
pars. (15), (16), (18)(A)(ii), (B)(i), (iii)(II), (23), is act June
21, 1938, ch. 556, 52 Stat. 821, as amended, which is classified generally to chapter 15B (§ 717 et seq.) of this
title. For complete classification of this Act to the
Code, see section 717w of this title and Tables.
Section 6 of the Emergency Natural Gas Act of 1977,
referred to in par. (18)(B)(i)(I), is Pub. L. 95–2, § 6, Feb.
2, 1977, 91 Stat. 7, which was formerly set out in a note
under section 717 of this title.
The Sherman Act (15 U.S.C. 1 et seq.), referred to in
par. (37), is act July 2, 1890, ch. 647, 26 Stat. 209, as
amended, which is classified to sections 1 to 7 of this
title. For complete classification of this Act to the
Code, see Short Title note set out under section 1 of
this title and Tables.
The Clayton Act (15 U.S.C. 12, 13, 14–19, 20, 21, 22–27),
referred to in par. (37), is act Oct. 15, 1914, ch. 323, 38
Stat. 730, as amended, which is classified generally to
sections 12, 13, 14 to 19, 21, and 22 to 27 of this title, and
sections 52 and 53 of Title 29, Labor. For further details
and complete classification of this Act to the Code, see
References in Text note set out under section 12 of this
title and Tables.
The Federal Trade Commission Act (15 U.S.C. 41 et
seq.), referred to in par. (37), is act Sept. 26, 1914, ch.
311, 38 Stat. 717, as amended, which is classified generally to subchapter I (§ 41 et seq.) of chapter 2 of this
title. For complete classification of this Act to the
Code, see section 58 of this title and Tables.
Act of June 19, 1936, chapter 592, referred to in par.
(37), means act June 19, 1936, ch. 592, 49 Stat. 1526, popularly known as the Robinson-Patman Antidiscrimination Act and also as the Robinson-Patman Price Discrimination Act, which enacted sections 13a, 13b, and
21a of this title and amended section 13 of this title.
For complete classification of this Act to the Code, see
Short Title note set out under section 13 of this title
and Tables.
SHORT TITLE OF 1989 AMENDMENT
Pub. L. 101–60, § 1, July 26, 1989, 103 Stat. 157, provided
that: ‘‘This Act [amending sections 3331, 3372, 3373, 3375,
3411, 3412, 3414, 3416, 3431, and 3432 of this title, repealing
sections 3311 to 3320, 3331 to 3333, 3413, and 3417 of this
title, and enacting provisions set out as notes under
sections 3311 and 3372 of this title] may be cited as the
‘Natural Gas Wellhead Decontrol Act of 1989’.’’
SHORT TITLE
Pub. L. 95–621, § 1, Nov. 9, 1978, 92 Stat. 3351, provided
that: ‘‘This Act [enacting this chapter and amending
section 7255 of Title 42, The Public Health and Welfare]
may be cited as the ‘Natural Gas Policy Act of 1978’.’’

SUBCHAPTER I—WELLHEAD PRICING
§§ 3311 to 3320, 3331 to 3333. Repealed. Pub. L.
101–60, § 2(b), July 26, 1989, 103 Stat. 158
Section 3311, Pub. L. 95–621, title I, § 101, Nov. 9, 1978,
92 Stat. 3356, related to inflation adjustments and other
general price ceiling rules to be applied in establishing
wellhead price controls.
Section 3312, Pub. L. 95–621, title I, § 102, Nov. 9, 1978,
92 Stat. 3358; Pub. L. 102–154, title I, Nov. 13, 1991, 105
Stat. 1000, related to ceiling price for new natural gas
and certain gas produced from Outer Continental Shelf.
Section 3313, Pub. L. 95–621, title I, § 103, Nov. 9, 1978,
92 Stat. 3361, related to ceiling price for new, onshore
production wells.

Page 1777

TITLE 15—COMMERCE AND TRADE

Section 3314, Pub. L. 95–621, title I, § 104, Nov. 9, 1978,
92 Stat. 3362, related to a ceiling price for sales of natural gas dedicated to interstate commerce.
Section 3315, Pub. L. 95–621, title I, § 105, Nov. 9, 1978,
92 Stat. 3363, related to ceiling price for sales under
intrastate contracts existing on Nov. 8, 1978.
Section 3316, Pub. L. 95–621, title I, § 106, Nov. 9, 1978,
92 Stat. 3365, related to ceiling price for sales under
rollover contracts.
Section 3317, Pub. L. 95–621, title I, § 107, Nov. 9, 1978,
92 Stat. 3366, related to ceiling price for high-cost natural gas.
Section 3318, Pub. L. 95–621, title I, § 108, Nov. 9, 1978,
92 Stat. 3367, related to ceiling price for stripper well
natural gas.
Section 3319, Pub. L. 95–621, title I, § 109, Nov. 9, 1978,
92 Stat. 3368, related to ceiling price for other categories of natural gas.
Section 3320, Pub. L. 95–621, title I, § 110, Nov. 9, 1978,
92 Stat. 3368, related to treatment of State severance
taxes and certain production-related costs.
Section 3331, Pub. L. 95–621, title I, § 121, Nov. 9, 1978,
92 Stat. 3369; Pub. L. 101–60, § 2(a), July 26, 1989, 103 Stat.
157, provided for elimination of price controls for certain natural gas sales.
Section 3332, Pub. L. 95–621, title I, § 122, Nov. 9, 1978,
92 Stat. 3370, related to standby price control authority.
Section 3333, Pub. L. 95–621, title I, § 123, Nov. 9, 1978,
92 Stat. 3371, related to reports to Congress by Department of Energy.
EFFECTIVE DATE OF REPEAL
Section 2(b) of Pub. L. 101–60 provided that the repeal
of sections 3311 to 3320 and 3331 to 3333 is effective Jan.
1, 1993.

SUBCHAPTER II—INCREMENTAL PRICING
§§ 3341 to 3348. Repealed. Pub. L. 100–42, § 2(a),
May 21, 1987, 101 Stat. 314
Section 3341, Pub. L. 95–621, title II, § 201, Nov. 9, 1978,
92 Stat. 3371, required Commission to prescribe and
make effective a rule designed to provide for passthrough of costs of natural gas, with respect to boiler
fuel use of natural gas by industrial boiler fuel facilities, not later than 12 months after Nov. 9, 1978.
Section 3342, Pub. L. 95–621, title II, § 202, Nov. 9, 1978,
92 Stat. 3372, required Commission to prescribe an
amendment to rule required under section 3341 of this
title, which would expand its application to other industrial uses, not later than 18 months after Nov. 9,
1978.
Section 3343, Pub. L. 95–621, title II, § 203, Nov. 9, 1978,
92 Stat. 3373, enumerated acquisition costs subject to
passthrough requirements of rule prescribed under section 3341 of this title.
Section 3344, Pub. L. 95–621, title II, § 204, Nov. 9, 1978,
92 Stat. 3375, related to method of passthrough.
Section 3345, Pub. L. 95–621, title II, § 205, Nov. 9, 1978,
92 Stat. 3378, related to direct passthrough of surcharges paid by local distributors on natural gas delivered by interstate pipelines to industrial facilities
served by such local distributors.
Section 3346, Pub. L. 95–621, title II, § 206, Nov. 9, 1978,
92 Stat. 3379, enumerated exemptions from application
of rule required under section 3341 of this title.
Section 3347, Pub. L. 95–621, title II, § 207, Nov. 9, 1978,
92 Stat. 3380, related to application of section 3343 to
certain natural gas and liquefied natural gas imports.
Section 3348, Pub. L. 95–621, title II, § 208, Nov. 9, 1978,
92 Stat. 3381, directed that Alaska natural gas be allocated to rates and charges of interstate pipelines in accordance with certain general principles applicable on
Nov. 9, 1978, for establishing rates.
REPEAL OF INCREMENTAL PRICING REQUIREMENTS
Pub. L. 100–42, § 2, May 21, 1987, 101 Stat. 314, provided
that:

§ 3362

‘‘(a) REPEAL.—Subject to subsections (b) and (c) of
this section, title II of the Natural Gas Policy Act of
1978 (15 U.S.C. 3341–3348) is repealed, and the items relating to title II are stricken from the table of contents
of that Act.
‘‘(b) LIMITED CONTINUING EFFECT OF RULES.—A rule
promulgated by the Federal Energy Regulatory Commission, under title II of the Natural Gas Policy Act of
1978 shall continue in effect only with respect to the
flowthrough of costs incurred before the enactment of
this section [May 21, 1987], including any surcharges
based on such costs.
‘‘(c) IMPLEMENTATION.—The Federal Energy Regulatory Commission may take appropriate action to implement this section.’’

SUBCHAPTER III—ADDITIONAL
AUTHORITIES AND REQUIREMENTS
PART A—EMERGENCY AUTHORITY
§ 3361. Declaration of emergency
(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 section
3362 or section 3363 of this title is reasonably
necessary, having exhausted other alternatives to the maximum extent practicable, to
assist in meeting natural gas requirements for
such high-priority uses.
(b) Limitation
(1) Expiration
Any declaration of a natural gas supply
emergency (or extension thereof) under subsection (a), shall terminate at the earlier of—
(A) the date on which the President finds
that any shortage described in subsection (a)
does not exist or is not imminent; or
(B) 120 days after the date of such declaration of emergency (or extension thereof).
(2) Extensions
Nothing in this subsection shall prohibit the
President from extending, under subsection
(a), any emergency (or extension thereof), previously declared under subsection (a), upon
the expiration of such declaration of emergency (or extension thereof) under paragraph
(1)(B).
(Pub. L. 95–621, title III, § 301, Nov. 9, 1978, 92
Stat. 3381.)
DELEGATION OF FUNCTIONS
Functions of President under this subchapter, except
for authority to declare, extend, and terminate a national gas supply emergency pursuant to this section,
delegated to Secretary of Energy, see section 1–101 of
Ex. Ord. No. 12235, Sept. 3, 1980, 45 F.R. 58803, set out as
a note under section 3364 of this title.

§ 3362. Emergency purchase authority
(a) Presidential authorization
During any natural gas supply emergency declared under section 3361 of this title, the President may, by rule or order, authorize any inter-

§ 3363

TITLE 15—COMMERCE AND TRADE

state pipeline or local distribution company
served by any interstate pipeline to contract,
upon such terms and conditions as the President
determines to be appropriate (including provisions respecting fair and equitable prices), for
the purchase of emergency supplies of natural
gas—
(1) from any producer of natural gas (other
than a producer who is affiliated with the purchaser, as determined by the President) if—
(A) such natural gas is not produced from
the Outer Continental Shelf; and
(B) the sale or transportation of such natural gas was not pursuant to a certificate issued under the Natural Gas Act [15 U.S.C.
717 et seq.] immediately before the date on
which such contract was entered into; or
(2) from any intrastate pipeline, local distribution company, or other person (other
than an interstate pipeline or a producer of
natural gas).
(b) Contract duration
The duration of any contract authorized under
subsection (a) may not exceed 4 months. The
preceding sentence shall not prohibit the President from authorizing under subsection (a) a renewal of any contract, previously authorized
under such subsection, following the expiration
of such contract.
(c) Related transportation and facilities
The President may, by order, require any pipeline to transport natural gas, and to construct
and operate such facilities for the transportation of natural gas, as he determines necessary to carry out any contract authorized
under subsection (a). The costs of any construction or transportation ordered under this subsection shall be paid by the purchaser of natural
gas under the contract with respect to which
such order is issued. No order to transport natural gas under this subsection shall require any
pipeline to transport natural gas in excess of
such pipeline’s available capacity.
(d) Maintenance of adequate records
The Commission shall require any interstate
pipeline or local distribution company contracting under the authority of this section for natural gas to maintain and make available full and
adequate records concerning transactions under
this section, including records of the volumes of
natural gas purchased under the authority of
this section and the rates and charges for purchase and receipt of such natural gas.
(e) Special limitation
No sale under any emergency purchase contract under this section for emergency supplies
of natural gas for sale and delivery from any
intrastate pipeline which is operating under
court supervision as of January 1, 1977, may
take effect unless the court approves.
(Pub. L. 95–621, title III, § 302, Nov. 9, 1978, 92
Stat. 3382.)
REFERENCES IN TEXT
The Natural Gas Act, referred to in subsec. (a)(1)(B),
is act June 21, 1938, ch. 556, 52 Stat. 821, as amended,
which is classified generally to chapter 15B (§ 717 et
seq.) of this title. For complete classification of this

Page 1778

act to the Code, see section 717w of this title and
Tables.

§ 3363. Emergency allocation authority
(a) In general
In order to assist in meeting natural gas requirements for high-priority uses of natural gas
during any natural gas supply emergency declared under section 3361 of this title, the President may, by order, allocate supplies of natural
gas under subsections (b), (c), and (d) to—
(1) any interstate pipeline;
(2) any local distribution company—
(A) which is served by any interstate pipeline;
(B) which is providing natural gas only for
high-priority uses; and
(C) which is in need of deliveries of natural
gas to assist in meeting natural gas requirements for high-priority uses of natural gas;
and
(3) any person for meeting requirements of
high-priority uses of natural gas.
(b) Allocation of certain boiler fuel gas
(1) Required finding
The President shall not allocate supplies of
natural gas under this subsection unless he
finds that—
(A) to the maximum extent practicable,
emergency purchase authority under section
3362 of this title has been utilized to assist in
meeting natural gas requirements for highpriority uses of natural gas;
(B) emergency purchases of natural gas
supplies under section 3362 of this title are
not likely to satisfy the natural gas requirements for such high-priority uses;
(C) the exercise of authority under this
subsection is reasonably necessary to assist
in meeting natural gas requirements for
such high-priority uses; and
(D) any interstate pipeline or local distribution company receiving such natural
gas has ordered the termination of all deliveries of natural gas for other than high-priority uses and attempted to to 1 the maximum extent practicable to terminate such
deliveries.
(2) Allocation authority
Subject to paragraph (1), in order to assist in
meeting natural gas requirements for high-priority uses of natural gas, the President may,
by order, allocate supplies of natural gas the
use of which has been prohibited by the President pursuant to authority under section 717z
of this title (relating to the use of natural gas
as a boiler fuel during any natural gas supply
emergency).
(c) Allocation of general pipeline supply
(1) Required findings
The President shall not allocate supplies of
natural gas under this subsection unless he
finds that—
(A) to the maximum extent practicable, allocation of supplies of natural gas under sub1 So

in original.

Page 1779

TITLE 15—COMMERCE AND TRADE

section (b) has been utilized to assist in
meeting natural gas requirements for highpriority uses of natural gas;
(B) the exercise of such authority is not
likely to satisfy the natural gas requirements for such high-priority uses;
(C) the exercise of authority under this
subsection is reasonably necessary to assist
in meeting natural gas requirements for
such high-priority uses;
(D) any interstate pipeline or local distribution company receiving such natural
gas has ordered the termination of all deliveries of natural gas for other than high-priority uses and attempted to the maximum
extent practicable to terminate such deliveries;
(E) such allocation will not create, for the
interstate pipeline delivering certificated
natural gas, a supply shortage which will
cause such pipeline to be unable to meet the
natural gas requirements for high-priority
uses of natural gas served, directly or indirectly, by such pipeline; and
(F) such allocation will not result in a disproportionate share of deliveries and resulting curtailments of natural gas being experienced by such interstate pipeline when compared to deliveries and resulting curtailments which are experienced as a result of
orders issued under this subsection applicable to other interstate pipelines (as determined by the President).
(2) Required notification from State
(A) 2 Notification
The President shall not allocate supplies
of natural gas under this subsection unless
he is notified by the Governor of any State
that—
(i) a shortage of natural gas supplies
available to such State exists or is imminent;
(ii) such shortage or imminent shortage
endangers the supply of natural gas for
high-priority uses in such State; and
(iii) the exercise of authority under
State law is inadequate to protect highpriority uses of natural gas in such State
from an interruption in natural gas supplies.
(3) Basis of finding
To the maximum extent practicable, the
Governor shall submit, together with any notification under subparagraph (A), information
upon which he has based his finding under
such subparagraph, including—
(i) volumes of natural gas required to meet
the natural gas requirements for high-priority uses of natural gas in such State;
(ii) information received from persons in
the business of producing, selling, transporting, or delivering natural gas in such State
as to the volumes of natural gas supplies
available to such State;
(iii) information on the authority under
State law which will be exercised to protect
high-priority uses; and
2 So

in original. Par. (2) enacted without a subpar. (B).

§ 3363

(iv) such other information which the
President requests or which the Governor
determines appropriate to apprise the President of emergency deliveries and transportation of interstate natural gas needed by
such State.
(4) Allocation authority
Subject to paragraphs (1), (2), and (5), in
order to assist in meeting natural gas requirements for high-priority uses of natural gas,
the President may, by order, allocate supplies
of certificated natural gas from any interstate
pipeline.
(5) Consideration of alternative fuel availability
In issuing any order under this subsection
the President shall consider the relative availability of alternative fuel to natural gas users
supplied by the interstate pipeline ordered to
make deliveries pursuant to this subsection.
(d) Allocation of user-owned gas
(1) Required finding
The President shall not allocate supplies of
natural gas under this subsection unless he
finds that—
(A) to the maximum extent practicable, allocation of supplies of natural gas under subsection (c) has been utilized to assist in
meeting natural gas requirements for highpriority uses of natural gas;
(B) the exercise of such authority is not
likely to satisfy the natural gas requirements for such high-priority uses;
(C) the exercise of authority under this
subsection is reasonably necessary to assist
in meeting natural gas requirements for
such high-priority uses;
(D) any interstate pipeline or local distribution company receiving such natural
gas has ordered the termination of all deliveries of natural gas for other than high-priority uses and attempted to the maximum
extent practicable to terminate such deliveries; and
(E) such allocation will not create, for the
person who owns and would otherwise use
such natural gas, a supply shortage which
will cause such person to be unable to satisfy such person’s natural gas requirements
for high-priority uses.
(2) Allocation authority
Subject to paragraphs (1) and (3), in order to
assist in meeting natural gas requirements for
high-priority uses of natural gas, the President may, by order, allocate supplies of natural gas which would be certificated natural gas
but for the second sentence of section 3301(19)
of this title.
(3) Consideration of economic feasibility of alternative fuels
In issuing any order under this subsection,
the President shall consider the economic feasibility of alternative fuels available to the
user which owned the natural gas subject to
an order under this subsection.
(e) Limitation
No order may be issued under this section unless the President determines that such order

§ 3364

TITLE 15—COMMERCE AND TRADE

will not require transportation of natural gas by
any pipeline in excess of its available transportation capacity.
(f) Industry assistance
The President may request that representatives of pipelines, local distribution companies,
and other persons meet and provide assistance
to the President in carrying out his authority
under this section.
(g) Compensation
(1) In general
If the parties to any order issued under subsection (b), (c), (d), or (h) fail to agree upon
the terms of compensation for natural gas deliveries or transportation required pursuant to
such order, the President, after a hearing held
either before or after such order takes effect,
shall, by supplemental order, prescribe the
amount of compensation to be paid for such
deliveries or transportation and for any other
expenses incurred in delivering or transporting natural gas.
(2) Calculation of compensation for certain
boiler fuel natural gas
For purposes of any supplemental order
under paragraph (1) with respect to emergency
deliveries pursuant to subsection (b), the
President shall calculate the amount of compensation—
(A) for supplies of natural gas based upon
the amount required to make whole the user
subject to the prohibition order, but in no
event may such compensation exceed just
compensation prescribed in section 717z of
this title; and
(B) for transportation, storage, delivery,
and other services, based upon reasonable
costs, as determined by the President.
(3) Compensation for other natural gas allocated
For the purpose of any supplemental order
under paragraph (1), if the party making emergency deliveries pursuant to subsection (c) or
(d)—
(A) indicates a preference for compensation in kind, the President shall direct that
compensation in kind be provided as expeditiously as practicable;
(B) indicates a preference for compensation, or the President determines that, notwithstanding paragraph (A) of this subsection, any portion thereof cannot practicably be compensated in kind, the President
shall calculate the amount of compensation—
(i) for supplies of natural gas, based upon
the amount required to make the pipeline
and its local distribution companies whole,
in the case of any order under subsection
(c), or to make the user from whom natural gas is allocated whole, in the case of
any order under subsection (d) including
any amount actually paid by such pipeline
and its local distribution companies or
such user for volumes of natural gas or
higher cost synthetic gas acquired to replace natural gas subject to an order under
subsection (c) or (d); and

Page 1780

(ii) for transportation, storage, delivery,
and other services, based upon reasonable
costs, as determined by the President.
Compensation received by an interstate
pipeline under this subsection shall be
credited to the account of any local distribution company served by that pipeline
to the extent ordered by the President to
make such local distribution company
whole.
(h) Related transportation and facilities
The President may, by order, require any pipeline to transport natural gas, and to construct
and operate such facilities for the transportation of natural gas, as he determines necessary to carry out any order under subsection
(b), (c), or (d). Compensation for the costs of any
construction or transportation ordered under
this subsection shall be determined under subsection (g) and shall be paid by the person to
whom supplies of natural gas are ordered allocated under this section.
(i) Monitoring
In order to effect the purposes of this part, the
President shall monitor the operation of any
order made pursuant to this section to assure
that natural gas delivered pursuant to this section is applied to high-priority uses only.
(j) Commission study
Not later than June 1, 1979, the Commission
shall prepare and submit to the Congress a report regarding whether authority to allocate
natural gas, which is not otherwise subject to
allocation under this part, is likely to be necessary to meet high-priority uses.
(k) ‘‘High-priority use’’ defined
For purposes of this section, the term ‘‘highpriority use’’ means any—
(1) use of natural gas in a residence;
(2) use of natural gas in a commercial establishment in amounts less than 50 Mcf on a
peak day; or
(3) any use of natural gas the curtailment of
which the President determines would endanger life, health, or maintenance of physical
property.
(Pub. L. 95–621, title III, § 303, Nov. 9, 1978, 92
Stat. 3383.)
§ 3364. Miscellaneous provisions
(a) Information
(1) Obtaining of information
In order to obtain information to carry out
his authority under this part, the President
may—
(A) sign and issue subpenas for the attendance and testimony of witnesses and the production of books, records, papers, and other
documents;
(B) require any person, by general or special order, to submit answers in writing to
interrogatories, requests for reports or for
other information, and such answers shall be
made within such reasonable period, and
under oath or otherwise as the President
may determine; and

Page 1781

TITLE 15—COMMERCE AND TRADE

(c) 1 secure, upon request, any information
from any Federal agency.
(2) Enforcement of subpenas and orders
The appropriate United States district court
may, upon petition of the Attorney General at
the request of the President, in the case of refusal to obey a subpena or order of the President issued under this subsection, issue an
order requiring compliance therewith, and any
failure to obey an order of the court may be
punished by the court as a contempt thereof.
(b) Reporting of prices and volumes
In issuing any order under section 3362 or 3363
of this title, the President shall require that the
prices and volumes of natural gas delivered,
transported, or contracted for pursuant to such
order shall be reported to him on a weekly basis.
Such reports shall be made available to the Congress.
(c) Presidential reports to Congress
The President shall report to the Congress,
not later than 90 days following the termination
under section 3361(b) of this title of any declaration of a natural gas supply emergency (or extension thereof) under section 3361(a) of this
title, respecting the exercise of authority under
section 3361, 3362, 3363 of this title, or this section.
(d) Delegation of authorities
The President may delegate all or any portion
of the authority granted to him under section
3361, 3362, 3363 of this title, or this section to
such Federal officers or agencies as he determines appropriate, and may authorize such redelegation as may be appropriate. Except with
respect to section 552 of title 5, any Federal officer or agency to which authority is delegated or
redelegated under this subsection shall be subject only to such procedural requirements respecting the exercise of such authority as the
President would be subject to if such authority
were not so delegated.
(e) Antitrust protections
(1) Defenses
There shall be available as a defense for any
person to civil or criminal action brought for
violation of the Federal antitrust laws (or any
similar law of any State) with respect to any
action taken, or meeting held, pursuant to any
order of the President under section 3363(b),
(c), (d), or (i) of this title, or any meeting held
pursuant to a request of the President under
section 3363(g) of this title, if—
(A) such action was taken or meeting held
solely for the purpose of complying with the
President’s request or order;
(B) such action was not taken for the purpose of injuring competition; and
(C) any such meeting complied with the requirements of paragraph (2).
Persons interposing the defense provided by
this subsection shall have the burden of proof,
except that the burden shall be on the person
against whom the defense is asserted with respect to whether the actions were taken for
the purpose of injuring competition.
1 So

in original. Probably should be ‘‘(C)’’.

§ 3364

(2) Requirements of meetings
With respect to any meeting held pursuant
to a request by the President under section
3363(g) of this title or pursuant to an order
under section 3363 of this title—
(A) there shall be present at such meeting
a full-time Federal employee designated for
such purposes by the Attorney General;
(B) a full and complete record of such
meeting shall be taken and deposited, together with any agreements resulting therefrom, with the Attorney General, who shall
make it available for public inspection and
copying;
(C) the Attorney General and the Federal
Trade Commission shall have the opportunity to participate from the beginning in
the development and carrying out of agreements and actions under section 3363 of this
title, in order to propose any alternative
which would avoid or overcome, to the
greatest extent practicable, possible anticompetitive effects while achieving substantially the purposes of section 3363 of this
title and any order thereunder; and
(D) such other procedures as may be specified by the President in such request or
order shall be complied with.
(f) Effect on certain contractual obligations
There shall be available as a defense to any action brought for breach of contract under Federal or State Law arising out of any act or omission that such act was taken or that such omission occurred for purposes of complying with
any order issued under section 3363 of this title.
(g) Preemption
Any order issued pursuant to this subchapter
shall preempt any provision of any program for
the allocation, emergency delivery, transportation, or purchase of natural gas established by
any State or local government if such program
is in conflict with any such order.
(Pub. L. 95–621, title III, § 304, Nov. 9, 1978, 92
Stat. 3387.)
EX. ORD. NO. 12235. ASSIGNMENT OF MANAGEMENT
RESPONSIBILITY IN CASES OF NATURAL GAS EMERGENCIES
Ex. Ord. No. 12235, Sept. 3, 1980, 45 F.R. 58803, provided:
By the authority vested in me as President by the
Constitution and statutes of the United States of
America, including Section 304(d) of the Natural Gas
Policy Act of 1978 (92 Stat. 3387; 15 U.S.C. 3364(d)) and
Section 301 of Title 3 of the United States Code, and in
order to assign management responsibility in case of a
natural gas supply emergency, it is hereby ordered as
follows:
1–101. The functions vested in the President by Sections 301 through 304(c) of the Natural Gas Policy Act
of 1978 (92 Stat. 3381–3387; 15 U.S.C. 3361–3364(c)) are delegated to the Secretary of Energy; except for the authority to declare, extend, and terminate a natural gas
supply emergency pursuant to Section 301 thereof (15
U.S.C. 3361).
1–102. The functions vested in the President by Section 607 of the Public Utility Regulatory Policies Act of
1978 (92 Stat. 3171; 15 U.S.C. 717z) are delegated to the
Secretary of Energy; except for the authority to declare, extend, and terminate a natural gas supply emergency pursuant to Section 607(a) and (b) thereof (15
U.S.C. 717z(a) and (b)).
1–103. The Secretary shall consult with the Administrator of the Environmental Protection Agency, the Di-

§ 3371

TITLE 15—COMMERCE AND TRADE

rector [now Administrator] of the Federal Emergency
Management Agency, and the heads of other executive
agencies in exercising the functions delegated to him
by this Order.
1–104. All functions delegated to the Secretary by this
Order may be redelegated, in whole or in part, to the
head of any other agency.
1–105. All Executive agencies shall, to the extent permitted by law, cooperate with and assist the Secretary
in carrying out the functions delegated to him by this
Order.
JIMMY CARTER.

PART B—OTHER AUTHORITIES AND
REQUIREMENTS
§ 3371. Authorization of certain sales and transportation
(a) Commission approval of transportation
(1) Interstate pipelines
(A) In general
The Commission may, by rule or order, authorize any interstate pipeline to transport
natural gas on behalf of—
(i) any intrastate pipeline; and
(ii) any local distribution company.
(B) Just and reasonable rates
The rates and charges of any interstate
pipeline with respect to any transportation
authorized under subparagraph (A) shall be
just and reasonable (within the meaning of
the Natural Gas Act [15 U.S.C. 717 et seq.]).
(2) Intrastate pipelines
(A) In general
The Commission may, by rule or order, authorize any intrastate pipeline to transport
natural gas on behalf of—
(i) any interstate pipeline; and
(ii) any local distribution company
served by any interstate pipeline.
(B) Rates and charges
(i) Maximum fair and equitable price
The rates and charges of any intrastate
pipeline with respect to any transportation authorized under subparagraph (A),
including any amount computed in accordance with the rule prescribed under clause
(ii), shall be fair and equitable and may
not exceed an amount which is reasonably
comparable to the rates and charges which
interstate pipelines would be permitted to
charge for providing similar transportation service.
(ii) Commission rule
The Commission shall, by rule, establish
the method for calculating an amount necessary to—
(I) reasonably compensate any intrastate pipeline for expenses incurred by
the pipeline and associated with the providing of any gathering, treatment, processing, transportation, delivery, or similar service provided by such pipeline in
connection with any transportation of
natural gas authorized under subparagraph (A); and
(II) provide an opportunity for such
pipeline to earn a reasonable profit on
such services.

Page 1782

(b) Commission approval of sales
(1) In general
The Commission may, by rule or order, authorize any intrastate pipeline to sell natural
gas to—
(A) any interstate pipeline; and
(B) any local distribution company served
by any interstate pipeline.
(2) Rates and charges
(A) Maximum fair and equitable price
The rates and charges of any intrastate
pipeline with respect to any sale of natural
gas authorized under paragraph (1) shall be
fair and equitable and may not exceed the
sum of—
(i) such intrastate pipeline’s weighted
average acquisition cost of natural gas;
(ii) an amount, computed in accordance
with the rule prescribed under subparagraph (B); and
(iii) any adjustment permitted under
subparagraph (C).
(B) Commission rule
The Commission shall, by rule, establish
the method for calculating an amount necessary to—
(i) reasonably compensate any intrastate
pipeline for expenses incurred by the pipeline and associated with the providing of
any gathering, treatment, processing,
transportation, or delivery service provided by such pipeline in connection with
any sale of natural gas authorized under
paragraph (1); and
(ii) provide an opportunity for such pipeline to earn a reasonable profit on such
services.
(C) Adjustment
(i) Application
This subparagraph shall apply in any
case in which, in order to deliver any volume of natural gas pursuant to any sale
authorized under paragraph (1), any intrastate pipeline acquires quantities of natural gas under any existing contract, if—
(I) such intrastate pipeline acquires
any volume of natural gas under such
contract in excess of that which such
pipeline would otherwise have acquired;
and
(II) the price paid for such additional
volume of natural gas acquired under
such contract is greater than such pipeline’s weighted average acquisition cost
of natural gas, computed without regard
to the acquisition of such additional volume of natural gas.
(ii) Commission adjustment
In any case to which this subparagraph
applies, the Commission shall permit an
adjustment to the maximum fair and equitable price provided under subparagraph
(A) to increase the revenue to the intrastate pipeline under such sale by an
amount determined by the Commission to
be adequate to offset the additional cost
incurred by such pipeline due to any in-

Page 1783

TITLE 15—COMMERCE AND TRADE

crease in such pipeline’s weighted average
acquisition cost of natural gas.
(3) Limitation
(A) Two-year duration
No authorization of any sale (or any extension thereof) under paragraph (1) may be for
a period exceeding two years.
(B) Extension
Any authorization of any sale under paragraph (1), and any extension of any such authorization under this subparagraph, may be
extended by the Commission if such extension satisfies the requirements of this subsection.
(4) Adequacy of service to intrastate customers
Any sale authorized under paragraph (1)
shall be subject to interruption to the extent
that natural gas subject to such sale is required to enable the intrastate pipeline involved to provide adequate service to such
pipeline’s customers at the time of such sale.
(5) Procedural requirements
(A) Affidavit
Any application for authorization of any
sale under paragraph (1) shall be accompanied by an affidavit filed by the intrastate
pipeline involved and setting forth—
(i) the identity of the interstate pipeline
or local distribution company involved;
(ii) each point of delivery of the natural
gas from the intrastate pipeline;
(iii) the estimated total and daily volumes of natural gas subject to such sale;
(iv) the price or prices of such volumes;
and
(v) such other information as the Commission may, by rule, require.
(B) Verification of compliance
Any application for authorization of any
sale under paragraph (1) shall be accompanied by a statement by the intrastate
pipeline involved verifying by oath or affirmation that such sale, if authorized, would
comply with all requirements applicable to
such sale under this subsection and all terms
and conditions established, by rule or order,
by the Commission and applicable to such
sale.
(6) Termination of sales
(A) Hearing
Upon complaint of any interested person,
or upon the Commission’s own motion, the
Commission shall, after affording an opportunity for oral presentation of views and arguments, terminate any sale authorized
under paragraph (1) if the Commission determines—
(i) such termination is required to enable
the intrastate pipeline involved to provide
adequate service to the customers of such
pipeline at the time of such sale;
(ii) such sale involves the sale of natural
gas acquired by the intrastate pipeline involved solely or primarily for the purpose
of resale of such natural gas pursuant to a
sale authorized under paragraph (1);

§ 3372

(iii) such sale violates any requirement
of this subsection or any term or condition
established, by rule or order, by the Commission and applicable to such sale; or
(iv) such sale circumvents or violates
any provision of this chapter.
(B) Suspension pending hearing
Prior to any hearing or determination required under subparagraph (A), upon complaint of any interested person or upon the
Commission’s own motion, the Commission
may suspend any sale authorized under paragraph (1) if the Commission finds that it is
likely that the determinations described in
subparagraph (A) will be made following the
hearing required under subparagraph (A).
(C) Determination
The determination of whether any interruption of any sale authorized under paragraph (1) is required under subparagraph
(A)(i) shall be made by the Commission
without regard to the character of the use of
natural gas by any customer of the intrastate pipeline involved.
(D) State intervention
Any interested State may intervene as a
matter of right in any proceeding before the
Commission relating to any determination
under this section.
(7) Disapproval of application
The Commission shall disapprove any application for authorization of any sale under
paragraph (1) if the Commission determines—
(A) such sale would impair the ability of
the intrastate pipeline involved to provide
adequate service to its customers at the
time of such sale (without regard to the
character of the use of natural gas by such
customer);
(B) such sale would involve the sale of natural gas acquired by the intrastate pipeline
involved solely or primarily for the purpose
of resale of such natural gas pursuant to a
sale authorized under paragraph (1);
(C) such sale would violate any requirement of this subsection or any term or condition established, by rule or order, by the
Commission and applicable to such sale; or
(D) such sale would circumvent or violate
any provision of this chapter.
(c) Terms and conditions
Any authorization granted under this section
shall be under such terms and conditions as the
Commission may prescribe.
(Pub. L. 95–621, title III, § 311, Nov. 9, 1978, 92
Stat. 3388.)
REFERENCES IN TEXT
The Natural Gas Act, referred to in subsec. (a)(1)(B),
is act June 21, 1938, ch. 556, 52 Stat. 821, as amended,
which is classified generally to chapter 15B (§ 717 et
seq.) of this title. For complete classification of this
act to the Code, see section 717w of this title and
Tables.

§ 3372. Assignment of contractual rights to receive surplus natural gas
(a) Authorization of assignments
The Commission may, by rule or order, authorize any intrastate pipeline to assign, with-

§ 3373

TITLE 15—COMMERCE AND TRADE

out compensation, to any interstate pipeline or
local distribution company all or any portion of
such intrastate pipeline’s right to receive surplus natural gas at any first sale, upon such
terms and conditions as the Commission determines appropriate.
(b) Effect of authorization under subsection (a)
For the effect of an authorization under subsection (a), see section 3431 of this title (relating
to the coordination of this chapter with the Natural Gas Act [15 U.S.C. 717 et seq.]).
(c) Surplus natural gas
For purposes of this section, the term ‘‘surplus
natural gas’’ means any natural gas which is determined, by the State agency having regulatory jurisdiction over the intrastate pipeline
which would be entitled to receive such natural
gas in the absence of any assignment to exceed
the then current demands on such pipeline for
natural gas.
(Pub. L. 95–621, title III, § 312, Nov. 9, 1978, 92
Stat. 3392; Pub. L. 101–60, § 3(b)(2), July 26, 1989,
103 Stat. 158.)
REFERENCES IN TEXT
The Natural Gas Act, referred to in subsec. (b), is act
June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is
classified generally to chapter 15B (§ 717 et seq.) of this
title. For complete classification of this act to the
Code, see section 717w of this title and Tables.
AMENDMENTS
1989—Subsec. (c). Pub. L. 101–60 substituted ‘‘any natural gas’’ for ‘‘any natural gas—
‘‘(1) which is not committed or dedicated to interstate commerce on November 8, 1978;
‘‘(2) the first sale of which is subject to a maximum
lawful price established under subchapter I of this
chapter; and
‘‘(3)’’.
EFFECTIVE DATE OF 1989 AMENDMENT
Section 3(b) of Pub. L. 101–60 provided in part that the
amendment by section 3(b)(2) of Pub. L. 101–60 is effective Jan. 1, 1993.

§ 3373. Effect of certain natural gas prices on indefinite price escalator clauses
(a) High-cost natural gas
No price paid in any first sale of high-cost natural gas (as defined in section 3317(c) 1 of this
title, as such section was in effect on January 1,
1989) may be taken into account in applying any
indefinite price escalator clause (as defined in
section 3315(b)(3)(B) 1 of this title, as such section was in effect on January 1, 1989) with respect to any first sale of any natural gas other
than high-cost natural gas (as defined in section
3317(c) 1 of this title, as such section was in effect on January 1, 1989).
(b) Other transactions
No price paid—
(1) in any sale authorized under section
3362(a) of this title, or
(2) pursuant to any order issued under section 3363(b), (c), (d), or (g) of this title,
may be taken into account in applying any indefinite price escalator clause (as defined in sec1 See

References in Text note below.

Page 1784

tion 3315(b)(3)(B) 1 of this title, as such section
was in effect on January 1, 1989).
(Pub. L. 95–621, title III, § 313, Nov. 9, 1978, 92
Stat. 3392; Pub. L. 101–60, § 3(b)(3), July 26, 1989,
103 Stat. 159.)
REFERENCES IN TEXT
Sections 3315 and 3317 of this title, referred to in text,
were repealed effective Jan. 1, 1993, by Pub. L. 101–60,
§ 2(b), July 26, 1989, 103 Stat. 158.
AMENDMENTS
1989—Pub. L. 101–60 inserted ‘‘, as such section was in
effect on January 1, 1989’’ in four places.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101–60 effective Jan. 1, 1993,
see section 3(b) of Pub. L. 101–60, set out as a note under
section 3372 of this title.

§ 3374. Clauses prohibiting certain sales, transportation, and commingling
(a) General rule
Any provision of any contract for the first sale
of natural gas is hereby declared against public
policy and unenforceable with respect to any
natural gas covered by this chapter if such provision—
(1) prohibits the commingling of natural gas
subject to such contract with natural gas subject to the jurisdiction of the Commission
under the provisions of the Natural Gas Act
[15 U.S.C. 717 et seq.];
(2) prohibits the sale of any natural gas subject to such contract to, or transportation of
any such natural gas by, any person subject to
the jurisdiction of the Commission under the
Natural Gas Act [15 U.S.C. 717 et seq.], or
otherwise prohibits the sale or transportation
in interstate commerce (within the meaning of
the Natural Gas Act) of natural gas subject to
such contract; or
(3) terminates, or grants any party the option to terminate, any obligation under any
such contract as a result of such commingling,
sale, or transportation.
(b) Natural gas covered by this chapter
For purposes of subsection (a), the term ‘‘natural gas covered by this chapter’’ means—
(1) natural gas which is not committed or
dedicated to interstate commerce as of November 8, 1978;
(2) natural gas, the sale in interstate commerce of which—
(A) is authorized under section 3362(a) or
3371(b) of this title; or
(B) is pursuant to an assignment under
section 3372(a) of this title; and,
(3) natural gas, the transportation in interstate commerce of which is—
(A) pursuant to any order under section
3362(c) or section 3363(b), (c), (d), or (h) of
this title; or
(B) authorized by the Commission under
section 3371(a) of this title.
(Pub. L. 95–621, title III, § 314, Nov. 9, 1978, 92
Stat. 3392.)
REFERENCES IN TEXT
The Natural Gas Act, referred to in subsec. (a)(1), (2),
is act June 21, 1938, ch. 556, 52 Stat. 821, as amended,

Page 1785

TITLE 15—COMMERCE AND TRADE

which is classified generally to chapter 15B (§ 717 et
seq.) of this title. For complete classification of this
act to the Code, see section 717w of this title and
Tables.

§ 3375. Filing of contracts and agreements
The Commission may, by rule or order, require
any first sale purchaser of natural gas under a
new contract, a successor to an existing contract, or a rollover contract to file with the
Commission a copy of such contract, together
with all ancillary agreements and any existing
contract applicable to such natural gas.
(Pub. L. 95–621, title III, § 315, Nov. 9, 1978, 92
Stat. 3393; Pub. L. 100–439, §§ 1, 2(a), (b)(1), Sept.
22, 1988, 102 Stat. 1720; Pub. L. 101–60, § 3(a)(2),
July 26, 1989, 103 Stat. 158.)
AMENDMENTS
1989—Pub. L. 101–60, in section catchline, substituted
‘‘Filing of contracts and agreements’’ for ‘‘Contract duration; filing of contracts and agreements’’, and in
text, struck out subsec. (a) designation, heading ‘‘Contract duration’’, and text relating to power of Commissioner to specify minimum duration of contracts for
purchase of natural gas and requiring nondiscriminatory exercise of such authority, and struck out subsec. (b) designation and heading ‘‘Filing of contracts
and ancillary agreements’’.
1988—Pub. L. 100–439, § 2(b)(1), struck out ‘‘right of
first refusal;’’ after ‘‘Contract duration;’’ in section
catchline.
Subsec. (a)(1). Pub. L. 100–439, § 1, struck out last sentence which directed that provisions of par. (1) did not
apply to contracts of natural gas subject to requirements of par. (3).
Subsec. (a)(3). Pub. L. 100–439, § 1, struck out par. (3)
which related to contracts for purchase of natural gas
produced from reservoirs on Outer Continental Shelf.
Subsecs. (b), (c). Pub. L. 100–439, § 2(a), redesignated
subsec. (c) as (b) and struck out former subsec. (b)
which related to certain rights of first refusal with respect to certain natural gas committed or dedicated to
interstate commerce on November 8, 1978.

SUBCHAPTER IV—NATURAL GAS
CURTAILMENT POLICIES
§ 3391. Natural gas for essential agricultural uses
(a) General rule
Not later than 120 days after November 9, 1978,
the Secretary of Energy shall prescribe and
make effective a rule, which may be amended
from time to time, which provides that, notwithstanding any other provision of law (other
than subsection (b)) and to the maximum extent
practicable, no curtailment plan of an interstate
pipeline may provide for curtailment of deliveries of natural gas for any essential agricultural use, unless such curtailment—
(1) does not reduce the quantity of natural
gas delivered for such use below the use requirement specified in subsection (c); or
(2) is necessary in order to meet the requirements of high-priority users.
(b) Curtailment priority not applicable if alternative fuel available
If the Commission, in consultation with the
Secretary of Agriculture, determines, by rule or
order, that use of a fuel (other than natural gas)
is economically practicable and that the fuel is
reasonably available as an alternative for any

§ 3391a

agricultural use of natural gas, the provisions of
subsection (a) shall not apply with respect to
any curtailment of deliveries for such use.
(c) Determination of essential agricultural use
requirements
The Secretary of Agriculture shall certify to
the Secretary of Energy and the Commission the
natural gas requirements (expressed either as
volumes or percentages of use) of persons (or
classes thereof) for essential agricultural uses in
order to meet the requirements of full food and
fiber production.
(d) Authority of Secretary of Agriculture to intervene
The Secretary of Agriculture may intervene as
a matter of right in any proceeding before the
Commission which is conducted in connection
with implementing the requirements of the rule
prescribed under subsection (a).
(e) Limitation
The Secretary of Agriculture may not exercise
any authority under this section for the purpose
of restricting the production of any crop.
(f) Definitions
For purposes of this section—
(1) Essential agricultural use
The term ‘‘essential agricultural use’’, when
used with respect to natural gas, means any
use of natural gas—
(A) for agricultural production, natural
fiber production, natural fiber processing,
food processing, food quality maintenance,
irrigation pumping, crop drying, or
(B) as a process fuel or feedstock in the
production of fertilizer, agricultural chemicals, animal feed, or food,
which the Secretary of Agriculture determines
is necessary for full food and fiber production.
(2) High-priority user
The term ‘‘high-priority user’’ means any
person who—
(A) uses natural gas in a residence;
(B) uses natural gas in a commercial establishment in amounts of less than 50 Mcf
on a peak day;
(C) uses natural gas in any school, hospital, or similar institution; or
(D) uses natural gas in any other use the
curtailment of which the Secretary of Energy determines would endanger life, health,
or maintenance of physical property.
(Pub. L. 95–621, title IV, § 401, Nov. 9, 1978, 92
Stat. 3394.)
§ 3391a. ‘‘Essential agricultural use’’ defined
For the purposes of section 3391 of this title,
the term ‘‘essential agricultural use’’ shall—
(1) include use of natural gas in sugar refining for production of alcohol;
(2) include use of natural gas for agricultural
production on set-aside acreage or acreage diverted from the production of a commodity (as
provided under the Agricultural Act of 1949 [7
U.S.C. 1421 et seq.]) to be devoted to the production of any commodity for conversion into
alcohol or hydrocarbons for use as motor fuel
or other fuels; and

§ 3392

TITLE 15—COMMERCE AND TRADE

(3) for the 5-year period beginning on June
30, 1980, include use of natural gas in the distillation of fuel-grade alcohol from food grains
or other biomass by facilities in existence on
June 30, 1980, which do not have the installed
capability to burn coal lawfully.
(Pub. L. 96–294, title II, § 273, June 30, 1980, 94
Stat. 711.)
REFERENCES IN TEXT
The Agricultural Act of 1949, referred to in par. (2), is
act Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended,
which is classified principally to chapter 35A (§ 1421 et
seq.) of Title 7, Agriculture. For complete classification
of this Act to the Code, see Short Title note set out
under section 1421 of Title 7 and Tables.
CODIFICATION
Section was enacted as part of the Biomass Energy
and Alcohol Fuels Act of 1980 which is title II of the
Energy Security Act, and not as part of the Natural
Gas Policy Act of 1978 which comprises this chapter.

§ 3392. Natural gas for essential industrial process and feedstock uses
(a) General rule
The Secretary of Energy shall prescribe and
make effective a rule which provides that, notwithstanding any other provision of law (other
than subsection (b)) and to the maximum extent
practicable, no interstate pipeline may curtail
deliveries of natural gas for any essential industrial process or feedstock use, unless such curtailment—
(1) does not reduce the quantity of natural
gas delivered for such use below the use requirement specified in subsection (c);
(2) is necessary in order to meet the requirements of high-priority users; or
(3) is necessary in order to meet the requirements for essential agricultural uses of natural gas for which curtailment priority is established under section 3391 of this title.
(b) Curtailment priority applicable only if alternative fuel not available
The provisions of subsection (a) shall apply
with respect to any curtailment of deliveries for
any essential industrial process or feedstock use
only if the Commission determines that use of a
fuel (other than natural gas) is not economically
practicable and that no fuel is reasonably available as an alternative for such use.
(c) Determination of essential industrial use requirements
The Secretary of Energy shall determine and
certify to the Commission the natural gas requirements (expressed either as volumes or percentages of use) of persons (or classes thereof)
for essential industrial process and feedstock
uses (other than those referred to in section
3391(f)(1)(B) of this title).
(d) Definitions
For purposes of this section—
(1) Essential industrial process or feedstock
use
The term ‘‘essential industrial process or
feedstock use’’ means any use of natural gas in
an industrial process or as a feedstock which
the Secretary determines is essential.

Page 1786

(2) High-priority user
The term ‘‘high-priority user’’ has the same
meaning as given such term in section
3391(f)(2) of this title.
(Pub. L. 95–621, title IV, § 402, Nov. 9, 1978, 92
Stat. 3395.)
§ 3393. Establishment and implementation of priorities
(a) Establishment of priorities
The Secretary of Energy shall prescribe the
rules under sections 3391 and 3392 of this title
pursuant to his authority under the Department
of Energy Organization Act [42 U.S.C 7101 et
seq.] to establish and review priorities for curtailments under the Natural Gas Act [15 U.S.C.
717 et seq.].
(b) Implementation of priorities
The Commission shall implement the rules
prescribed under sections 3391 and 3392 of this
title pursuant to its authority under the Department of Energy Organization Act [42 U.S.C. 7101
et seq.] to establish, review, and enforce curtailments under the Natural Gas Act [15 U.S.C. 717
et seq.].
(Pub. L. 95–621, title IV, § 403, Nov. 9, 1978, 92
Stat. 3396.)
REFERENCES IN TEXT
The Department of Energy Organization Act, referred
to in subsecs. (a) and (b), is Pub. L. 95–91, Aug. 4, 1977,
91 Stat. 565, as amended, which is classified principally
to chapter 84 (§ 7101 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 7101 of Title 42 and Tables.
The Natural Gas Act, referred to in subsecs. (a) and
(b), is act June 21, 1938, ch. 556, 52 Stat. 821, as amended,
which is classified generally to chapter 15B (§ 717 et
seq.) of this title. For complete classification of this
act to the Code, see section 717w of this title and
Tables.

§ 3394. Limitation on revoking or amending certain pre-1969 certificates of public convenience and necessity
(a) General rule
The Commission may not, during the 10-year
period beginning on November 9, 1978, revoke or
amend any certificate of public convenience and
necessity issued before January 1, 1969, under
section 7 of the Natural Gas Act [15 U.S.C. 717f]
for the transportation of natural gas owned by
any electric utility except upon the application
of the person to whom such certificate was issued.
(b) Commission curtailment authority
The limitation under subsection (a) shall not
affect the authority of the Commission to enforce any curtailment of deliveries of natural
gas under the Natural Gas Act [15 U.S.C. 717 et
seq.].
(Pub. L. 95–621, title IV, § 404, Nov. 9, 1978, 92
Stat. 3396.)
REFERENCES IN TEXT
The Natural Gas Act, referred to in subsec. (b), is act
June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is

Page 1787

§ 3414

TITLE 15—COMMERCE AND TRADE

classified generally to chapter 15B (§ 717 et seq.) of this
title. For complete classification of this act to the
Code, see section 717w of this title and Tables.

SUBCHAPTER V—ADMINISTRATION,
ENFORCEMENT, AND REVIEW
§ 3411. General rulemaking authority
(a) In general
Except where expressly provided otherwise,
the Commission shall administer this chapter.
The Commission, or any other Federal officer or
agency in which any function under this chapter
is vested or delegated, is authorized to perform
any and all acts (including any appropriate enforcement activity), and to prescribe, issue,
amend, and rescind such rules and orders as it
may find necessary or appropriate to carry out
its functions under this chapter.
(b) Authority to define terms
Except where otherwise expressly provided,
the Commission is authorized to define, by rule,
accounting, technical, and trade terms used in
this chapter. Any such definition shall be consistent with the definitions set forth in this
chapter.
(Pub. L. 95–621, title V, § 501, Nov. 9, 1978, 92 Stat.
3396; Pub. L. 101–60, § 3(b)(4), July 26, 1989, 103
Stat. 159.)
AMENDMENTS
1989—Subsec. (c). Pub. L. 101–60 struck out subsec. (c)
which authorized Commission to delegate to any State
agency (with consent of such agency) any of its functions with respect to sections 3315, 3316(b), and
3319(a)(1) and (3) of this title.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101–60 effective Jan. 1, 1993,
see section 3(b) of Pub. L. 101–60, set out as a note under
section 3372 of this title.

§ 3412. Administrative procedure
(a) Administrative Procedure Act
Subject to subsection (b), the provisions of
subchapter II of chapter 5 of title 5 shall apply
to any rule or order issued under this chapter
having the applicability and effect of a rule as
defined in section 551(4) of title 5; except that
sections 554, 556, and 557 of such title 5 shall not
apply to any order under such section 3361, 3362,
or 3363 of this title.
(b) Opportunity for oral presentations
To the maximum extent practicable, an opportunity for oral presentation of data, views, and
arguments shall be afforded with respect to any
proposed rule or order described in subsection
(a) (other than an order under section 3361, 3362,
or 3363 of this title). To the maximum extent
practicable, such opportunity shall be afforded
before the effective date of such rule or order.
Such opportunity shall be afforded no later than
30 days after such date in the case of a waiver of
the entire comment period under section
553(d)(3) of title 5, and no later than 45 days after
such date in all other cases. A transcript shall
be made of any such oral presentation.
(c) Adjustments
The Commission or any other Federal officer
or agency authorized to issue rules or orders de-

scribed in subsection (a) (other than an order
under section 3361, 3362, or 3363 of this title)
shall, by rule, provide for the making of such adjustments, consistent with the other purposes of
this chapter, as may be necessary to prevent
special hardship, inequity, or an unfair distribution of burdens. Such rule shall establish procedures which are available to any person for the
purpose of seeking an interpretation, modification, or rescission of, exception to, or exemption
from, such applicable rules or orders. If any person is aggrieved or adversely affected by the denial of a request for adjustment under the preceding sentence, such person may request a review of such denial by the officer or agency and
may obtain judicial review in accordance with
section 3416 of this title when such denial becomes final. The officer or agency shall, by rule,
establish procedures, including an opportunity
for oral presentation of data, views, and arguments, for considering requests for adjustment
under this subsection.
(Pub. L. 95–621, title V, § 502, Nov. 9, 1978, 92 Stat.
3397; Pub. L. 101–60, § 3(a)(3), July 26, 1989, 103
Stat. 158.)
AMENDMENTS
1989—Subsec. (d). Pub. L. 101–60 struck out subsec. (d)
which directed that any determination made under section 3347(c) of this title be made in accordance with
procedures applicable to the granting of any authority
under the Natural Gas Act to import natural gas or liquefied natural gas (as the case might be).

§ 3413. Repealed. Pub. L. 101–60, § 3(b)(5), July 26,
1989, 103 Stat. 159
Section, Pub. L. 95–621, title V, § 503, Nov. 9, 1978, 92
Stat. 3397, related to various determinations to be
made by State or Federal agencies for qualifying under
certain categories of natural gas.
EFFECTIVE DATE OF REPEAL
Repeal effective Jan. 1, 1993, see section 3(b) of Pub.
L. 101–60, set out as an Effective Date of 1989 Amendment note under section 3372 of this title.

§ 3414. Enforcement
(a) General rule
It shall be unlawful for any person to violate
any provision of this chapter or any rule or
order under this chapter.
(b) Civil enforcement
(1) In general
Except as provided in paragraph (2), whenever it appears to the Commission that any
person is engaged or about to engage in any
act or practice which constitutes or will constitute a violation of any provision of this
chapter, or of any rule or order thereunder,
the Commission may bring an action in the
District Court of the United States for the
District of Columbia or any other appropriate
district court of the United States to enjoin
such act or practice and to enforce compliance
with this chapter, or any rule or order thereunder.
(2) Enforcement of emergency orders
Whenever it appears to the President that
any person has engaged, is engaged, or is

§ 3414

TITLE 15—COMMERCE AND TRADE

about to engage in acts or practices constituting a violation of any order under section 3362
of this title or any order or supplemental
order issued under section 3363 of this title,
the President may bring a civil action in any
appropriate district court of the United States
to enjoin such acts or practices.
(3) Repealed. Pub. L. 101–60, § 3(a)(4)(B), July
26, 1989, 103 Stat. 158
(4) Relief available
In any action under paragraph (1) or (2), the
court shall, upon a proper showing, issue a
temporary restraining order or preliminary or
permanent injunction without bond. In any
such action, the court may also issue a mandatory injunction commanding any person to
comply with any applicable provision of law,
rule, or order, or ordering such other legal or
equitable relief as the court determines appropriate, including refund or restitution.
(5) Criminal referral
The Commission may transmit such evidence as may be available concerning any acts
or practices constituting any possible violations of the Federal antitrust laws to the Attorney General who may institute appropriate
criminal proceedings.
(6) Civil penalties
(A) In general
Any person who knowingly violates any
provision of this chapter, or any provision of
any rule or order under this chapter, shall be
subject to—
(i) except as provided in clause (ii) a civil
penalty, which the Commission may assess, of not more than $1,000,000 for any
one violation; and
(ii) a civil penalty, which the President
may assess, of not more than $1,000,000, in
the case of any violation of an order under
section 3362 of this title or an order or supplemental order under section 3363 of this
title.
(B) ‘‘Knowing’’ defined
For purposes of subparagraph (A) the term
‘‘knowing’’ means the having of—
(i) actual knowledge; or
(ii) the constructive knowledge deemed
to be possessed by a reasonable individual
who acts under similar circumstances.
(C) Each day separate violation
For purposes of this paragraph, in the case
of a continuing violation, each day of violation shall constitute a separate violation.
(D) Statute of limitations
No person shall be subject to any civil penalty under this paragraph with respect to
any violation occurring more than 3 years
before the date on which such person is provided notice of the proposed penalty under
subparagraph (E). The preceding sentence
shall not apply in any case in which an untrue statement of material fact was made to
the Commission or a State or Federal agency by, or acquiesced to by, the violator with
respect to the acts or omissions constituting

Page 1788

such violation, or if there was omitted a material fact necessary in order to make any
statement made by, or acquiesced to by, the
violator with respect to such acts or omissions not misleading in light of circumstances under such statement was made.
(E) Assessed by Commission
Before assessing any civil penalty under
this paragraph, the Commission shall provide to such person notice of the proposed
penalty. Following receipt of notice of the
proposed penalty by such person, the Commission shall, by order, asssess 1 such penalty.
(F) Judicial review
If the civil penalty has not been paid within 60 calendar days after the assessment
order has been made under subparagraph (E),
the Commission shall institute an action in
the appropriate district court of the United
States for an order affirming the assessment
of the civil penalty. The court shall have authority to review de novo the law and the
facts involved, and shall have jurisdiction to
enter a judgment enforcing, modifying, and
enforcing as so modified, or setting aside in
whole or in part, such assessment.
(c) Criminal penalties
(1) Violations of chapter
Except in the case of violations covered
under paragraph (3), any person who knowingly and willfully violates any provision of
this chapter shall be subject to—
(A) a fine of not more than $1,000,000; or
(B) imprisonment for not more than 5
years; or
(C) both such fine and such imprisonment.
(2) Violation of rules or orders generally
Except in the case of violations covered
under paragraph (3), any person who knowingly and willfully violates any rule or order
under this chapter (other than an order of the
Commission assessing a civil penalty under
subsection (b)(4)(E)), shall be subject to a fine
of not more than $50,000 for each day on which
the offense occurs.
(3) Violations of emergency orders
Any person who knowingly and willfully violates an order under section 3362 of this title
or an order or supplemental order under section 3363 of this title shall be fined not more
than $50,000 for each violation.
(4) Each day separate violation
For purposes of this subsection, each day of
violation shall constitute a separate violation.
(5) ‘‘Knowingly’’ defined
For purposes of this subsection, the term
‘‘knowingly’’, when used with respect to any
act or omission by any person, means such
person—
(A) had actual knowledge; or
(B) had constructive knowledge deemed to
be possessed by a reasonable individual who
acts under similar circumstances.
1 So

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

Page 1789

TITLE 15—COMMERCE AND TRADE

(Pub. L. 95–621, title V, § 504, Nov. 9, 1978, 92 Stat.
3401; Pub. L. 101–60, § 3(a)(4), (b)(6), July 26, 1989,
103 Stat. 158, 159; Pub. L. 109–58, title III,
§ 314(a)(2), (b)(2), Aug. 8, 2005, 119 Stat. 690, 691.)
AMENDMENTS
2005—Subsec. (b)(6)(A). Pub. L. 109–58, § 314(b)(2), substituted ‘‘$1,000,000’’ for ‘‘$5,000’’ in cl. (i) and
‘‘$1,000,000’’ for ‘‘$25,000’’ in cl. (ii).
Subsec. (c)(1). Pub. L. 109–58, § 314(a)(2)(A), substituted
‘‘$1,000,000’’ for ‘‘$5,000’’ in subpar. (A) and ‘‘5 years’’ for
‘‘two years’’ in subpar. (B).
Subsec. (c)(2). Pub. L. 109–58, § 314(a)(2)(B), substituted
‘‘$50,000 for each day on which the offense occurs’’ for
‘‘$500 for each violation’’.
1989—Subsec. (a). Pub. L. 101–60, § 3(b)(6), struck out
par. (2) designation and par. (1) making it unlawful to
sell natural gas at a first sale price in excess of any applicable maximum lawful price under this chapter.
Subsec. (b). Pub. L. 101–60, § 3(a)(4), substituted ‘‘paragraph (2)’’ for ‘‘paragraphs (2) and (3)’’ in par. (1),
struck out par. (3) which related to enforcement of incremental pricing, and substituted ‘‘paragraph (1) or
(2)’’ for ‘‘paragraph (1), (2), or (3)’’ in par. (4).
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by section 3(b)(6) of Pub. L. 101–60 effective Jan. 1, 1993, see section 3(b) of Pub. L. 101–60, set
out as a note under section 3372 of this title.

§ 3415. Intervention
(a) Authority to intervene
(1) Intervention as matter of right
The Secretary of Energy may intervene as a
matter of right in any proceeding relating to
the prorationing of, or other limitations upon,
natural gas production which is conducted by
any State agency having regulatory jurisdiction over the production of natural gas.
(2) Enforcement of right to intervene
The Secretary may bring an action in any
appropriate court of the United States to enforce his right to intervene under paragraph
(1).
(3) Access to information
As an intervenor in a proceeding described
in subsection (a), the Secretary shall have access to information available to other parties
to the proceeding if such information is relevant to the issues to which his participation
in such proceeding relates. Such information
may be obtained through reasonable rules relating to discovery of information prescribed
by the State agency.
(b) Access to State courts
(1) Review in State courts
The Secretary may obtain review of any determination made in any proceeding described
in subsection (a)(1) in the appropriate State
court if the Secretary intervened or otherwise
participated in the original proceeding or if
State law otherwise permits such review.
(2) Participation as amicus curiae
In addition to his authority to obtain review
under paragraph (1), the Secretary may also
participate an 1 amicus curiae in any judicial
review of any proceeding described in subsection (a)(1).
(Pub. L. 95–621, title V, § 505, Nov. 9, 1978, 92 Stat.
3403.)
1 So

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

§ 3416

§ 3416. Judicial review
(a) Orders
(1) In general
The provisions of this subsection shall apply
to judicial review of any order, within the
meaning of section 551(6) of title 5 (other than
an order assessing a civil penalty under section 3414(b)(4) of this title or any order under
section 3362 of this title or any order under
section 3363 of this title), issued under this
chapter and to any final agency action under
this chapter required to be made on the record
after an opportunity for an agency hearing.
(2) Rehearing
Any person aggrieved by any order issued by
the Commission in a proceeding under this
chapter to which such person is a party may
apply for a rehearing within 30 days after the
issuance of such order. Any application for rehearing shall set forth the specific ground
upon which such application is based. Upon
the filing of such application, the Commission
may grant or deny the requested rehearing or
modify the original order without further
hearing. Unless the Commission acts upon
such application for rehearing within 30 days
after it is filed, such application shall be
deemed to have been denied. No person may
bring an action under this section to obtain
judicial review of any order of the Commission
unless—
(A) such person shall have made application to the Commission for rehearing under
this subsection; and
(B) the Commission shall have finally
acted with respect to such application.
For purposes of this section, if the Commission fails to act within 30 days after the filing
of such application, such failure to act shall be
deemed final agency action with respect to
such application.
(3) Authority to modify orders
At any time before the filing of the record of
a proceeding in a United States Court of Appeals, pursuant to paragraph (4), the Commission may, after providing notice it determines
reasonable and proper, modify or set aside, in
whole or in part, any order issued under the
provisions of this chapter.
(4) Judicial review
Any person who is a party to a proceeding
under this chapter aggrieved by any final
order issued by the Commission in such proceeding may obtain review of such order in the
United States Court of Appeals for any circuit
in which the party to which such order relates
is located or has its principal place of business, or in the United States Court of Appeals
for the District of Columbia circuit. Review
shall be obtained by filing a written petition,
requesting that such order be modified or set
aside in whole or in part, in such Court of Appeals within 60 days after the final action of
the Commission on the application for rehearing required under paragraph (2). A copy of
such petition shall forthwith be transmitted
by the clerk of such court to any member of

§ 3417

TITLE 15—COMMERCE AND TRADE

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 such order of the Commission shall be considered by the court if
such objection was not urged before the Commission in the application for rehearing unless
there was reasonable ground for the failure to
do so. 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 the court
deems proper. The Commission may modify its
findings as to the facts by reason of the additional evidence so taken, and shall file with
the court such modified or new findings, which
if supported by substantial evidence, shall be
conclusive. The Commission shall also file
with the court 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.
(5) Orders remain effective
The filing of an application for rehearing
under paragraph (2) shall not, unless specifically ordered by the Commission, operate as a
stay of the Commission’s order. The commencement of proceedings under paragraph (4)
shall not, unless specifically ordered by the
court, operate as a stay of the Commission’s
order.
(b) Review of rules and orders
Except as provided in subsections (a) and (c),
judicial review of any rule or order, within the
meaning of section 551(4) of title 5, issued under
this chapter may be obtained in the United
States Court of Appeals for any appropriate circuit pursuant to the provisions of chapter 7 of
title 5, except that the second sentence of section 705 thereof shall not apply.
(c) Judicial review of emergency orders
Except with respect to enforcement of orders
or subpenas under section 3364(a) of this title,
the United States Court of Appeals for the Federal Circuit shall have exclusive original jurisdiction to review all civil cases and controversies under section 3361, 3362 or 3363 of this title,
including any order issued, or other action
taken, under such section. The United States
Court of Appeals for the Federal Circuit shall

Page 1790

have exclusive jurisdiction of all appeals from
the district courts of the United States in cases
and controversies arising under section 3364(a)(2)
of this title; such appeals shall be taken by the
filing of a notice of appeal with the United
States Court of Appeals for the Federal Circuit
within thirty days after the entry of judgment
by the district court. Prior to a final judgment,
no court shall have jurisdiction to grant any injunctive relief to stay or defer the implementation of any order issued, or action taken, under
section 3361, 3362, or 3363 of this title.
(Pub. L. 95–621, title V, § 506, Nov. 9, 1978, 92 Stat.
3404; Pub. L. 101–60, § 3(a)(5), July 26, 1989, 103
Stat. 158; Pub. L. 102–572, title I, § 102(b), Oct. 29,
1992, 106 Stat. 4506.)
AMENDMENTS
1992—Subsec. (c). Pub. L. 102–572 substituted ‘‘the
United States Court of Appeals for the Federal Circuit’’
for ‘‘the Temporary Emergency Court of Appeals, established pursuant to section 211(b) of the Economic
Stabilization Act of 1970, as amended,’’ before ‘‘shall
have exclusive original jurisdiction’’ and substituted
‘‘United States Court of Appeals for the Federal Circuit’’ for ‘‘Temporary Emergency Court of Appeals’’ in
two places.
1989—Subsec. (d). Pub. L. 101–60 struck out subsec. (d)
which related to judicial review of certain incremental
pricing determinations.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–572 effective Jan. 1, 1993,
see section 1101 of Pub. L. 102–572, set out as a note
under section 905 of Title 2, The Congress.

§ 3417. Repealed. Pub. L. 101–60, § 3(a)(6), July 26,
1989, 103 Stat. 158
Section, Pub. L. 95–621, title V, § 507, Nov. 9, 1978, 92
Stat. 3406, related to congressional review of Presidential reimposition of maximum lawful prices under
section 3332 of this title, congressional reimposition of
maximum lawful prices under section 3332 of this title,
and congressional disapproval of incremental pricing
under section 3342(c) or 3346(d)(2) of this title.

§ 3418. Applicability of other Federal statutory
provisions relating to information-gathering
In order to obtain information for the purpose
of carrying out its functions under this chapter,
the Commission shall have the same authority
as is vested in the Secretary under 7151(a) of
title 42 with respect to the exercise of authority
under section 796(b) of this title and section
772(b), (c), and (d) of this title.
(Pub. L. 95–621, title V, § 508(b), Nov. 9, 1978, 92
Stat. 3408.)
SUBCHAPTER
VI—COORDINATION
WITH
NATURAL GAS ACT; MISCELLANEOUS
PROVISIONS
§ 3431. Coordination with the Natural Gas Act
(a) Jurisdiction of the Commission under the
Natural Gas Act
(1) Sales
(A) Application to first sales
For purposes of section 1(b) of the Natural
Gas Act [15 U.S.C. 717(b)], the provisions of
the Natural Gas Act [15 U.S.C. 717 et seq.],
and the jurisdiction of the Commission

Page 1791

TITLE 15—COMMERCE AND TRADE

under such Act shall not apply to any natural gas solely by reason of any first sale of
such natural gas.
(B) Authorized sales or assignments
For purposes of section 1(b) of the Natural
Gas Act [15 U.S.C. 717(b)], the provisions of
the Natural Gas Act [15 U.S.C. 717 et seq.]
and the jurisdiction of the Commission
under such Act shall not apply by reason of
any sale of natural gas—
(i) authorized under section 3362(a) or
3371(b) of this title; or
(ii) pursuant to any assigned 1 authorized
under section 3372(a) of this title.
(C) Natural-gas company
For purposes of the Natural Gas Act [15
U.S.C. 717 et seq.], the term ‘‘natural-gas
company’’ (as defined in section 2(6) of such
Act [15 U.S.C. 717a(6) et seq.]) shall not include any person by reason of, or with respect to, any sale of natural gas if the provisions of the Natural Gas Act and the jurisdiction of the Commission do not apply to
such sale solely by reason of subparagraph
(A) or (B) of this paragraph.
(2) Transportation
(A) Jurisdiction of the Commission
For purposes of section 1(b) of the Natural
Gas Act [15 U.S.C. 717(b)] the provisions of
such Act [15 U.S.C. 717 et seq.] and the jurisdiction of the Commission under such Act
shall not apply to any transportation in
interstate commerce of natural gas if such
transportation is—
(i) pursuant to any order under section
3362(c) or section 3363(b), (c), (d), or (h) of
this title; or
(ii) authorized by the Commission under
section 3371(a) of this title.
(B) Natural-gas company
For purposes of the Natural Gas Act [15
U.S.C. 717 et seq.], the term ‘‘natural-gas
company’’ (as defined in section 2(6) of such
Act [15 U.S.C. 717a(6)]) shall not include any
person by reason of, or with respect to, any
transportation of natural gas if the provisions of the Natural Gas Act and the jurisdiction of the Commission under the Natural
Gas Act do not apply to such transportation
by reason of subparagraph (A) of this paragraph.
(b) Charges deemed just and reasonable
(1) Sales
(A) First sales
Except as otherwise provided in this subsection, for purposes of sections 4 and 5 of
the Natural Gas Act, any amount paid in
any first sale of natural gas shall be deemed
to be just and reasonable.
(B) Emergency sales
For purposes of sections 4 and 5 of the Natural Gas Act [15 U.S.C. 717c, 717d], any
amount paid in any sale authorized under
section 3362(a) of this title shall be deemed
1 So

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

§ 3431

to be just and reasonable if such amount
does not exceed the fair and equitable price
established under such section and applicable to such sale.
(C) Sales by intrastate pipelines
For purposes of sections 4 and 5 of the Natural Gas Act [15 U.S.C. 717c, 717d] any
amount paid in any sale authorized by the
Commission under section 3371(b) of this
title shall be deemed to be just and reasonable if such amount does not exceed the fair
and equitable price established by the Commission and applicable to such sale.
(D) Assignments
For purposes of sections 4 and 5 of the Natural Gas Act [15 U.S.C. 717c, 717d], any
amount paid pursuant to the terms of any
contract with respect to that portion of
which the Commission has authorized an assignment authorized under section 3372(a) of
this title shall be deemed to be just and reasonable.
(E) Affiliated entities limitation
For purposes of paragraph (1), in the case
of any first sale between any interstate pipeline and any affiliate of such pipeline, any
amount paid in any first sale shall be
deemed to be just and reasonable if, in addition to satisfying the requirements of such
paragraph, such amount does not exceed the
amount paid in comparable first sales between persons not affiliated with such interstate pipeline.
(2) Other charges
(A) Allocation
For purposes of sections 4 and 5 of the Natural Gas Act [15 U.S.C. 717c, 717d], any
amount paid by any interstate pipeline for
transportation, storage, delivery or other
services provided pursuant to any order
under section 3363(b), (c), or (d) of this title
shall be deemed to be just and reasonable if
such amount is prescribed by the President
under section 3363(h)(1) of this title.
(B) Transportation
For purposes of sections 4 and 5 of the Natural Gas Act [15 U.S.C. 717c, 717d], any
amount paid by any interstate pipeline for
any transportation authorized by the Commission under section 3371(a) of this title
shall be deemed to be just and reasonable if
such amount does not exceed that approved
by the Commission under such section.
(c) Guaranteed passthrough
(1) Certificate may not be denied based upon
price
The Commission may not deny, or condition
the grant of, any certificate under section 7 of
the Natural Gas Act [15 U.S.C. 717f] based upon
the amount paid in any sale of natural gas, if
such amount is deemed to be just and reasonable under subsection (b) of this section.
(2) Recovery of just and reasonable prices paid
For purposes of sections 4 and 5 of the Natural Gas Act [15 U.S.C. 717c, 717d], the Commission may not deny any interstate pipeline re-

§ 3432

TITLE 15—COMMERCE AND TRADE

covery of any amount paid with respect to any
purchase of natural gas if, under subsection (b)
of this section, such amount is deemed to be
just and reasonable for purposes of sections 4
and 5 of such Act, except to the extent the
Commission determines that the amount paid
was excessive due to fraud, abuse, or similar
grounds.
(Pub. L. 95–621, title VI, § 601, Nov. 9, 1978, 92
Stat. 3409; Pub. L. 101–60, § 3(a)(7), (b)(7), July 26,
1989, 103 Stat. 158, 159.)
REFERENCES IN TEXT
The Natural Gas Act, referred to in subsec. (a)(1),
(2)(A), (B), is act June 21, 1938, ch. 556, 52 Stat. 821, as
amended, which is classified generally to chapter 15B
(§ 717 et seq.) of this title. For complete classification of
this act to the Code, see section 717w of this title and
Tables.
AMENDMENTS
1989—Subsec. (a)(1)(A). Pub. L. 101–60, § 3(b)(7)(A), in
heading substituted ‘‘Application to first sales’’ for
‘‘Natural gas not committed or dedicated’’ and amended text generally. Prior to amendment, text read as follows: ‘‘For purposes of section 1(b) of the Natural Gas
Act, effective on the first day of the first month beginning after November 9, 1978, the provisions of the Natural Gas Act and the jurisdiction of the Commission
under such Act shall not apply to natural gas which
was not committed or dedicated to interstate commerce as of November 8, 1978, solely by reason of any
first sale of such natural gas.’’
Subsec. (a)(1)(B). Pub. L. 101–60, § 3(b)(7)(B), (C), redesignated subpar. (C) as (B) and struck out former subpar.
(B) which related to committed or dedicated natural
gas which was high-cost natural gas, new natural gas,
or natural gas produced from any new, onshore production well.
Subsec. (a)(1)(C). Pub. L. 101–60, § 3(b)(7)(C), (D), redesignated subpar. (D) as (C) and substituted ‘‘subparagraph (A) or (B)’’ for ‘‘subparagraph (A), (B), or (C)’’.
Former subpar. (C) redesignated (B).
Subsec. (a)(1)(D). Pub. L. 101–60, § 3(b)(7)(C), redesignated subpar. (D) as (C).
Subsec. (a)(1)(E). Pub. L. 101–60, § 3(b)(7)(B), struck
out subpar. (E), ‘‘Certain additional natural gas’’,
which read as follows: ‘‘For purposes of section 1(b) of
the Natural Gas Act, the provisions of the Natural Gas
Act and the jurisdiction of the Commission under such
Act shall not apply solely by reason of any first sale of
natural gas which is committed or dedicated to interstate commerce as of July 25, 1989, and which is not
subject to a maximum lawful price under part A of subchapter I of this chapter by reason of section 3331(f) of
this title, effective as of the date such gas ceases to be
subject to such maximum lawful price.’’
Pub. L. 101–60, § 3(a)(7)(A), substituted ‘‘Certain additional natural gas’’ for ‘‘Alaskan natural gas’’ in heading and amended text generally. Prior to amendment,
text read as follows: ‘‘Subparagraph (B)(ii) and (iii)
shall not apply with respect to natural gas produced
from the Prudhoe Bay unit of Alaska and transported
through the transportation system approved under the
Alaska Natural Gas Transportation Act of 1976.’’
Subsec. (b)(1)(A). Pub. L. 101–60, § 3(b)(7)(E), amended
subpar. (A) generally. Prior to amendment, subpar. (A)
read as follows: ‘‘Subject to paragraph (4), for purposes
of sections 4 and 5 of the Natural Gas Act, any amount
paid in any first sale of natural gas shall be deemed to
be just and reasonable if—
‘‘(i) such amount does not exceed the applicable
maximum lawful price established under subchapter I
of this chapter; or
‘‘(ii) there is no applicable maximum lawful price
solely by reason of the elimination of price controls
pursuant to part B of subchapter I of this chapter.’’

Page 1792

Subsec. (b)(1)(D). Pub. L. 101–60, § 3(b)(7)(F), struck
out before period at end ‘‘if such amount does not exceed the applicable maximum lawful price established
under subchapter I of this chapter’’.
Subsec. (c)(2). Pub. L. 101–60, § 3(a)(7)(B), substituted
‘‘purchase of natural gas if, under subsection (b) of this
section, such amount is deemed to be just and reasonable for purposes of sections 4 and 5 of such Act,’’ for
‘‘purchase of natural gas if—
‘‘(A) under subsection (b) of this section, such
amount is deemed to be just and reasonable for purposes of sections 4 and 5 of such Act, and
‘‘(B) such recovery is not inconsistent with any requirement of any rule under section 3341 of this title
(including any amendment under section 3342 of this
title),’’.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by section 3(b)(7) of Pub. L. 101–60 effective Jan. 1, 1993, see section 3(b) of Pub. L. 101–60, set
out as a note under section 3372 of this title.

§ 3432. Effect on State laws
(a) Authority to prescribe maximum lawful
prices
Nothing in this chapter shall affect the authority of any State to establish or enforce any
maximum lawful price for the first sale of natural gas produced in such State.
(b) Common carriers
No person shall be subject to regulation as a
common carrier under any provision of Federal
or State law by reason of any transportation—
(1) pursuant to any order under section
3362(c) or section 3363(b), (c), (d), or (i) of this
title; or
(2) authorized by the Commission under section 3371(a) of this title.
(Pub. L. 95–621, title VI, § 602, Nov. 9, 1978, 92
Stat. 3411; Pub. L. 101–60, § 3(b)(8), July 26, 1989,
103 Stat. 159.)
AMENDMENTS
1989—Subsec. (a). Pub. L. 101–60 struck out ‘‘lower’’
after ‘‘prescribe’’ in heading and struck out before period at end ‘‘which does not exceed the applicable maximum lawful price, if any, under subchapter I of this
chapter’’.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101–60 effective Jan. 1, 1993,
see section 3(b) of Pub. L. 101–60, set out as a note under
section 3372 of this title.

CHAPTER 61—SOFT DRINK INTERBRAND
COMPETITION
Sec.

3501.

3502.
3503.

Exclusive territorial licenses to manufacture,
distribute, and sell trademarked soft drink
products; ultimate resale to consumers;
substantial and effective competition.
Price fixing agreements, horizontal restraints
of trade, or group boycotts.
‘‘Antitrust law’’ defined.

§ 3501. Exclusive territorial licenses to manufacture, distribute, and sell trademarked soft
drink products; ultimate resale to consumers; substantial and effective competition
Nothing contained in any antitrust law shall
render unlawful the inclusion and enforcement
in any trademark licensing contract or agree-