15 U.S.C. 717f

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15 U.S.C.
United States Code, 2018 Edition
Title 15 - COMMERCE AND TRADE
CHAPTER 15B - NATURAL GAS
Sec. 717f - Construction, extension, or abandonment of facilities
From the U.S. Government Publishing Office, www.gpo.gov

§717f. Construction, extension, or abandonment of facilities
(a) Extension or improvement of facilities on order of court; notice and hearing
Whenever the Commission, after notice and opportunity for hearing, finds such action necessary
or desirable in the public interest, it may by order direct a natural-gas company to extend or improve
its transportation facilities, to establish physical connection of its transportation facilities with the
facilities of, and sell natural gas to, any person or municipality engaged or legally authorized to
engage in the local distribution of natural or artificial gas to the public, and for such purpose to
extend its transportation facilities to communities immediately adjacent to such facilities or to
territory served by such natural-gas company, if the Commission finds that no undue burden will be
placed upon such natural-gas company thereby: Provided, That the Commission shall have no
authority to compel the enlargement of transportation facilities for such purposes, or to compel such
natural-gas company to establish physical connection or sell natural gas when to do so would impair
its ability to render adequate service to its customers.
(b) Abandonment of facilities or services; approval of Commission
No natural-gas company shall abandon all or any portion of its facilities subject to the jurisdiction
of the Commission, or any service rendered by means of such facilities, without the permission and
approval of the Commission first had and obtained, after due hearing, and a finding by the
Commission that the available supply of natural gas is depleted to the extent that the continuance of
service is unwarranted, or that the present or future public convenience or necessity permit such
abandonment.
(c) Certificate of public convenience and necessity
(1)(A) No natural-gas company or person which will be a natural-gas company upon completion
of any proposed construction or extension shall engage in the transportation or sale of natural gas,
subject to the jurisdiction of the Commission, or undertake the construction or extension of any
facilities therefor, or acquire or operate any such facilities or extensions thereof, unless there is in
force with respect to such natural-gas company a certificate of public convenience and necessity
issued by the Commission authorizing such acts or operations: Provided, however, That if any such
natural-gas company or predecessor in interest was bona fide engaged in transportation or sale of
natural gas, subject to the jurisdiction of the Commission, on February 7, 1942, over the route or
routes or within the area for which application is made and has so operated since that time, the
Commission shall issue such certificate without requiring further proof that public convenience and
necessity will be served by such operation, and without further proceedings, if application for such
certificate is made to the Commission within ninety days after February 7, 1942. Pending the
determination of any such application, the continuance of such operation shall be lawful.
(B) In all other cases the Commission shall set the matter for hearing and shall give such
reasonable notice of the hearing thereon to all interested persons as in its judgment may be necessary
under rules and regulations to be prescribed by the Commission; and the application shall be decided
in accordance with the procedure provided in subsection (e) of this section and such certificate shall
be issued or denied accordingly: Provided, however, That the Commission may issue a temporary
certificate in cases of emergency, to assure maintenance of adequate service or to serve particular
customers, without notice or hearing, pending the determination of an application for a certificate,

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and may by regulation exempt from the requirements of this section temporary acts or operations for
which the issuance of a certificate will not be required in the public interest.
(2) The Commission may issue a certificate of public convenience and necessity to a natural-gas
company for the transportation in interstate commerce of natural gas used by any person for one or
more high-priority uses, as defined, by rule, by the Commission, in the case of—
(A) natural gas sold by the producer to such person; and
(B) natural gas produced by such person.
(d) Application for certificate of public convenience and necessity
Application for certificates shall be made in writing to the Commission, be verified under oath,
and shall be in such form, contain such information, and notice thereof shall be served upon such
interested parties and in such manner as the Commission shall, by regulation, require.
(e) Granting of certificate of public convenience and necessity
Except in the cases governed by the provisos contained in subsection (c)(1) of this section, a
certificate shall be issued to any qualified applicant therefor, authorizing the whole or any part of the
operation, sale, service, construction, extension, or acquisition covered by the application, if it is
found that the applicant is able and willing properly to do the acts and to perform the service
proposed and to conform to the provisions of this chapter and the requirements, rules, and regulations
of the Commission thereunder, and that the proposed service, sale, operation, construction,
extension, or acquisition, to the extent authorized by the certificate, is or will be required by the
present or future public convenience and necessity; otherwise such application shall be denied. The
Commission shall have the power to attach to the issuance of the certificate and to the exercise of the
rights granted thereunder such reasonable terms and conditions as the public convenience and
necessity may require.
(f) Determination of service area; jurisdiction of transportation to ultimate consumers
(1) The Commission, after a hearing had upon its own motion or upon application, may determine
the service area to which each authorization under this section is to be limited. Within such service
area as determined by the Commission a natural-gas company may enlarge or extend its facilities for
the purpose of supplying increased market demands in such service area without further
authorization; and
(2) If the Commission has determined a service area pursuant to this subsection, transportation to
ultimate consumers in such service area by the holder of such service area determination, even if
across State lines, shall be subject to the exclusive jurisdiction of the State commission in the State in
which the gas is consumed. This section shall not apply to the transportation of natural gas to another
natural gas company.
(g) Certificate of public convenience and necessity for service of area already being served
Nothing contained in this section shall be construed as a limitation upon the power of the
Commission to grant certificates of public convenience and necessity for service of an area already
being served by another natural-gas company.
(h) Right of eminent domain for construction of pipelines, etc.
When any holder of a certificate of public convenience and necessity cannot acquire by contract,
or is unable to agree with the owner of property to the compensation to be paid for, the necessary
right-of-way to construct, operate, and maintain a pipe line or pipe lines for the transportation of
natural gas, and the necessary land or other property, in addition to right-of-way, for the location of
compressor stations, pressure apparatus, or other stations or equipment necessary to the proper
operation of such pipe line or pipe lines, it may acquire the same by the exercise of the right of
eminent domain in the district court of the United States for the district in which such property may
be located, or in the State courts. The practice and procedure in any action or proceeding for that
purpose in the district court of the United States shall conform as nearly as may be with the practice

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and procedure in similar action or proceeding in the courts of the State where the property is situated:
Provided, That the United States district courts shall only have jurisdiction of cases when the amount
claimed by the owner of the property to be condemned exceeds $3,000.
(June 21, 1938, ch. 556, §7, 52 Stat. 824; Feb. 7, 1942, ch. 49, 56 Stat. 83; July 25, 1947, ch. 333, 61
Stat. 459; Pub. L. 95–617, title VI, §608, Nov. 9, 1978, 92 Stat. 3173; Pub. L. 100–474, §2, Oct. 6,
1988, 102 Stat. 2302.)
AMENDMENTS
1988—Subsec. (f). Pub. L. 100–474 designated existing provisions as par. (1) and added par. (2).
1978—Subsec. (c). Pub. L. 95–617, §608(a), (b)(1), designated existing first paragraph as par. (1)(A) and
existing second paragraph as par. (1)(B) and added par. (2).
Subsec. (e). Pub. L. 95–617, §608(b)(2), substituted "subsection (c)(1)" for "subsection (c)".
1947—Subsec. (h). Act July 25, 1947, added subsec. (h).
1942—Subsecs. (c) to (g). Act Feb. 7, 1942, struck out subsec. (c), and added new subsecs. (c) to (g).
EFFECTIVE DATE OF 1988 AMENDMENT
Pub. L. 100–474, §3, Oct. 6, 1988, 102 Stat. 2302, provided that: "The provisions of this Act [amending
this section and enacting provisions set out as a note under section 717w of this title] shall become effective
one hundred and twenty days after the date of enactment [Oct. 6, 1988]."
TRANSFER OF FUNCTIONS
Enforcement functions of Secretary or other official in Department of Energy and Commission,
Commissioners, or other official in Federal Energy Regulatory Commission related to compliance with
certificates of public convenience and necessity issued under this section with respect to pre-construction,
construction, and initial operation of transportation system for Canadian and Alaskan natural gas transferred to
Federal Inspector, Office of Federal Inspector for Alaska Natural Gas Transportation System, until first
anniversary of date of initial operation of Alaska Natural Gas Transportation System, see Reorg. Plan No. 1 of
1979, §§102(d), 203(a), 44 F.R. 33663, 33666, 93 Stat. 1373, 1376, effective July 1, 1979, set out under
section 719e of this title. Office of Federal Inspector for the Alaska Natural Gas Transportation System
abolished and functions and authority vested in Inspector transferred to Secretary of Energy by section 3012
(b) of Pub. L. 102–486, set out as an Abolition of Office of Federal Inspector note under section 719e of this
title. Functions and authority vested in Secretary of Energy subsequently transferred to Federal Coordinator
for Alaska Natural Gas Transportation Projects by section 720d(f) of this title.

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