15 USC 717-717z

15 USC 717-717z.pdf

FERC-549C, (NOPR in RM96-1-042) Standards for Business Practices of Interstate Natural Gas Pipelines

15 USC 717-717z

OMB: 1902-0174

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§ 7151

TITLE 15-COMMERCE AND TRADE

provision to other persons or circumstances
shall not be affected thereby.

Sec.

mate consumers.

§ 7151. Repealed. June 22, 1942, ch. 436, 56 Stat. 381

717g.

§ 715m. Cooperation between Secretary of Interior
and Federal and State authorities
The Secretary of the Interior, in carrying out
this chapter, is authorized to cooperate with
Federal and State authorities.
(June 25, 1946, ch. 472, § 3, 60 Stat. 307.)
CODIFICATION
Section was not enacted as a part of the Connally
Hot Oil Act which comprises this chapter.

717h.
7171.
717j.

DELEGATION OF FUNCTIONS

Delegation of President's authority to the Secretary
of the Interior, see note set out under section 715j of
this title.
CHAPTER 15B-NATURAL GAS
Sec.

717.

717a.
717b.
717c.

717d.

717e.

717f.

Regulation of natural gas companies.
(a) Necessity of regulation in public interest.
(b) Transactions to which provisions of
chapter applicable.
(c) Intrastate transactions exempt from
provisions of chapter; certification
from State commission as conclusive evidence.
Definitions.
Exportation or importation of natural gas.
Rates and charges.
(a) Just and reasonable rates and
charges.
(b) Undue preferences and unreasonable
rates and charges prohibited.
(c) Filing of rates and charges with
Commission; public inspection of
schedules.
(d) Changes in rates and charges; notice
to Commission.
(e) Authority of Commission to hold
hearings concerning new schedule
of rates.
Fixing rates and charges; determination of
cost of production or transportation.
(a) Decreases in rates.
(b) Costs of production and transportation.
Ascertainment of cost of property.
(a) Cost of property.
(b) Inventory of property; statements of
costs.
Construction, extension, or abandonment of
facilities.
(a) Extension or improvement of facilities on order of court; notice and
hearing.
(b) Abandonment of facilities or services;
approval of Commission.
(c) Certificate of public convenience and
necessity.
(d) Application for certificate of public
convenience and necessity.
(e) Granting of certificate of public convenience and necessity.

(f) Determination of service area; jurisdiction of transportation to ulti-

(Feb. 22, 1935, ch. 18, § 12, 49 Stat. 33.)

Section, acts Feb. 22, 1935, ch. 18, § 13, 49 Stat. 33;
June 14, 1937, ch. 335, 50 Stat. 257; June 29, 1939, ch.
250, 53 Stat. 927, provided for expiration of this chapter on June 30, 1942.

Page 770

717k.
717/.
717m.

717n.
717o.
717p.

717q.
717r.

717s.

717t.
717u.
717v.
717w.
717x.

(g) Certificate of public convenience and
necessity for service of area already
being served.
(h) Right of eminent domain for construction of pipelines, etc.
Accounts; records; memoranda.
(a) Rules and regulations for keeping
and preserving accounts, records,
etc.
(b) Access to and inspection of accounts
and records.
(c) Books, accounts, etc., of the person
controlling gas company subject to
examination.
Rates of depreciation.
(a) Depreciation and amortization.
(b) Rules.
Periodic and special reports.
(a) Form and contents of reports.
(b) Unlawful conduct.
State compacts for conservation, transportation, etc., of natural gas.
(a) Assembly of pertinent information;
report to Congress.
(b) Assembly of information relative to
operation of compact; report to
Congress.
(c) Availability of services, etc., of other
agencies.
Officials dealing in securities.
Complaints.
Investigations by Commission.
(a) Power of Commission.
(b) Determination of adequacy of gas reserves.
(c) Administration of oaths and affirmations; subpena of witnesses, etc.
(d) Jurisdiction of courts of United
States.
(e) Testimony of witnesses.
(f) Deposition of witnesses in a foreign
country.
(g) Witness fees.
Hearings; rules of procedure.
(a) Hearings; parties.
(b) Procedure.
Administrative powers of Commission; rules,
regulations, and orders.
Joint boards.
(a) Reference of matters to joint boards;
composition and power.
(b) Conference with State commissions
regarding rate structure, costs, etc.
(c) Information and reports available to
State commissions.
Appointment of officers and employees.
Rehearing and review.
(a) Application for rehearing; time.
(b) Review of Commission order.
(c) Stay of Commission order.
Enforcement of chapter.
(a) Action in district court for injunction.
(b) Mandamus.
(c) Employment of attorneys by Commission.
General penalties.
Jurisdiction of offenses; enforcement of liabilities and duties.
Separability of provisions.
Short title.
Conserved natural gas.
(a) Determination of entitlement.
(b) Conditions, limitations, etc.
(c) Definitions.

Page 771
Sec.

717y.

717z.

TITLE 15-COMMERCE AND TRADE

Voluntary conversion of natural gas users to
heavy fuel oil.
(a) Transfer of contractual interests.
(b) Commission approval.
(c) Restrictions on transfers unenforceable.
(d) Contractual obligations unaffected.
(e) Definitions.
(f) Coordination with this chapter.
(g) Volume limitation.
Emergency conversion of utilities and other
facilities.
(a) Presidential declaration.
(b) Limitation.
(c) Prohibitions.
(d) Limitations.
(e) Exemption for secondary uses.
(f) Exemption for air-quality emergencies.
(g) Limitation on injunctive relief.
(h) Definitions.
(i) Use of general terms.

for such transportation or sale, provided that
the rates and service of such person and facilities be subject to regulation by a State commission. The matters exempted from the provisions of this chapter by this subsection are declared to be matters primarily of local concern
and subject to regulation by the several States.
A certification from such State commission to
the Federal Power Commission that such State
commission has regulatory jurisdiction over
rates and service of such person and facilities
and is exercising such jurisdiction shall constitute conclusive evidence of such regulatory
power or jurisdiction.
(June 21, 1938, ch. 556, § 1, 52 Stat. 821; Mar.
27, 1954, ch. 115, 68 Stat. 36.)
AMENDMENTS

1954-Subsec. (c). Act Mar. 27, 1954, added subsec.
(c).

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 717x, 717y,
719c, 719j, 790a, 3301, 3312, 3314, 3316, 3319, 3362,
3371, 3372, 3374, 3393, 3394, 3412, 3416, 3431 of this
title; title 10 section 7430; title 16 section 2603; title 30
section 185; title 42 sections 7172, 7173, 8211, 8441; title
43 section 1353; title 49 App. sections 1671, 1674a; title
50 section 1671.
§ 717. Regulation of natural gas companies
(a) Necessity of regulation in public interest
As disclosed in reports of the Federal Trade
Commission made pursuant to S. Res. 83 (Seventieth Congress, first session) and other reports made pursuant to the authority of Congress, it is declared that the business of transporting and selling natural gas for ultimate distribution to the public is affected with a public
interest, and that Federal regulation in matters
relating to the transportation of natural gas
and the sale thereof in interstate and foreign
commerce is necessary in the public interest.
(b) Transactions to which provisions of chapter applicable
The provisions of this chapter shall apply to
the transportation of natural gas in interstate
commerce, to the sale in interstate commerce of
natural gas for resale for ultimate public consumption for domestic, commercial, industrial,
or any other use, and to natural-gas companies
engaged in such transportation or sale, but
shall not apply to any other transportation or
sale of natural gas or to the local distribution
of natural gas or to the facilities used for such
distribution or to the production or gathering
of natural gas.
(c) Intrastate transactions exempt from provisions of
chapter, certification from State commission as
conclusive evidence
The provisions of this chapter shall not apply
to any person engaged in or legally authorized
to engage in the transportation in interstate
commerce or the sale in interstate commerce
for resale, of natural gas received by such
person from another person within or at the
boundary of a State if all the natural gas so received is ultimately consumed within such
State, or to any facilities used by such person

§ 717

TRANSFER OF FUNCTIONS

The Federal Power Commission was terminated and

its functions with regard to establishment, review, and
enforcement of rates and charges for transportation
and sale of natural gas by a producer or gatherer or by
a natural gas pipeline or natural gas company were
transferred to the Federal Energy Regulatory Commission by sections 7172(a)(1)(C) and 7293 of Title 42,
The Public Health and Welfare.
EMERGENCY NATURAL GAS ACT OF 1977

Pub. L. 95-2, Feb. 2, 1977, 91 Stat. 4, authorized the
President to declare a natural gas emergency and to
require emergency deliveries and transportation of
natural gas until the earlier of Apr. 30, 1977, or termi-

nation of the emergency by the President and provid-

ed for antitrust protection, emergency purchases, adjustment in charges for local distribution companies,
relationship to Natural Gas Act, effect of certain contractual obligations, administrative procedure and judicial review, enforcement, reporting to Congress, del-

egation of authorities, and preemption of inconsistent

State or local action.

ExEcUTIvE ORDER No. 11969
Ex. Ord. No. 11969, Feb. 2, 1977, 42 P.R. 6791, as
amended by Ex. Ord. No. 12038, Feb. 3, 1978, 43 F.R.
4957, which delegated to the Secretary of Energy the

authority vested in the President by the Emergency
Natural Gas Act of 1977 except the authority to declare and terminate a natural gas emergency, was revoked by Ex. Ord. No. 12553, Feb. 25, 1986, 51 P.R.

7237.

PROCLAMATION No. 4485

Proc. No. 4485, Feb. 2, 1977, 42 F.R. 6789, declared
that a natural gas emergency existed within the meaning of section 3 of the Emergency Natural Gas Act of
1977, set out as a note above, which emergency was
terminated by Proc. No. 4495, Apr. 1, 1977, 42 F.R.
18053, formerly set out below.
PROCLAMATION No. 4495
Proc. No. 4495, Apr. 1, 1977, 42 P.R. 18053, terminated the natural gas emergency declared to exist by

Proc. No. 4485, Feb. 2, 1977, 42 F.R. 6789, formerly set
out above.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3301, 3431 of
this title; title 42 section 7172.

§ 717a

TITLE 15-COMMERCE ANDTRADE

§ 717a. Definitions
When used in this chapter, unless the context
otherwise requires(1) "Person" includes an individual or a corporation.
(2) "Corporation" includes any corporation,
joint-stock company, partnership, association,
business trust, organized group of persons,
whether incorporated or not, receiver or receivers, trustee or trustees of any of the foregoing, but shall not include municipalities as,
hereinafter defined.
(3) "Municipality" means a city, county, or
other political subdivision, or agency of a
State.
(4) "State" means a State admitted to the
Union, the District of Columbia, and any organized Territory of the United States.
(5) "Natural gas" means either natural gas
unmixed, or any mixture of natural and artificial gas.
(6) "Natural-gas company" means a person
engaged in the transportation of natural gas
in interstate commerce, or the sale in interstate commerce of such gas for resale.

(7) "Interstate commerce" means commerce

between any point in a State and any point
outside thereof, or between points within the
same State but through any place outside
thereof, but only insofar as such commerce
takes place within the United States.
(8) "State commission" means the regulatory body of the State or municipality having
jurisdiction to regulate rates and charges for
the sale of natural gas to consumers within.
the State or municipality.
(9) "Commission" and "Commissioner"
means the Federal Power Commission, and a
member thereof, respectively.
(June 21, 1938, ch. 556, § 2, 52 Stat. 821.)
TRANSFER OF FUNCTIONS

The Federal Power Commission was terminated and
its functions, personnel, property, funds, etc., were

Public Health and Welfare.

CROSS REFERENCES
Federal Power Commission, creation of, see section
792 of Title 16, Conservation.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 717y, 3431 of
this title; title 43 section 1862.

§ 717b. Exportation or importation of natural gas
After six months from June 21, 1938, no
person shall export any natural gas from the
United States to a foreign country or import
any natural gas from a foreign country without
first having secured an order of the Commission authorizing it to do so. The Commission
shall issue such order upon application, unless,
after opportunity for hearing, it finds that the
proposed exportation or importation will not be
consistent with the public interest. The Commission may by its order grant such application, in whole or in part, with such modification

Page 772 "

and upon such terms and conditions as the
Commission may find necessary or appropriate,
and may from time to time, after opportunity
for hearing, and for good cause shown, make
such supplemental order in the premises as it
may find necessary or appropriate.
(June 21, 1938, ch. 556, § 3, 52 Stat. 822.)
TRANSFER OF FUNCTIONS

Enforcement functions of Secretary or other official
in Department of Energy and Commission, Commissioners, or other official in Federal Energy Regulatory
Commission related to compliance with authorizations
for importation of natural gas from Alberta as predeliveries of Alaskan gas issued under this section with
respect to pre-construction, construction, and initial
operation of transportation system for Canadian and
Alaskan natural gas were transferred to the Federal
Inspector, Office of Federal Inspector for the Alaska
Natural Gas Transportation System, until the first anniversary of date of initial operation of the 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.
The Federal Power Commission was terminated and
its functions, personnel, property, funds, etc., were
transferred to the Secretary of Energy (except for certain functions which were transferred to the Federal
Energy Regulatory Commission) by sections 7151(b),
7171(a), 7172(a)(1), 7291, and 7293 of Title 42, The
Public Health and Welfare.
All executive and administrative functions of the
Federal Power Commission were, with certain reservations, transferred to the Chairman of such Commission, with authority vested in him to authorize their
performance by any officer, employee, or administra- tive unit under his jurisdiction, by Reorg. Plan No. 9
of 1950, §§ 1, 2, eff. May 24, 1950, 15 P.R. 3175, 64 Stat.
1265, set out in -the Appendix to Title 5, GovernmentOrganization and Employees.
DELEGATION OF FUNCTIONS

Functions of the President respecting certain facilities constructed and maintained on United States borders delegated to the Secretary of State, see Ex. Ord.
No. 11423, Aug. 16, 1968, 33 F.R. 11741, set out as a
note under section 301 of Title 3, The President.
Ex. ORD. No. 10485. PERFORMANCE OF FUNCTIONS RESPECTING ELECTRIC PowER AND NATURAL GAS FACILITIES LOCATED ON UNITED STATES BORDERS

Ex. Ord. No. 10485. Sept. 3, 1953, 18 P.R. 5397, as
amended by Ex. Ord. No. 12038, Feb. 3, 1978, 43 F.R.
4957, provided:
SECTION

1. (a) The Secretary of Energy is hereby

designated and empowered to perform the followingdescribed functions:
(1) To receive all applications for permits for the
construction, operation, maintenance, or connection,
at the borders of the United States, of facilities for
the transmission of electric energy between the United
States and a foreign country.
(2) To receive all applications for permits for the
construction, operation, maintenance, or connection,
at the borders of the United States, of facilities for
the exportation or importation of natural gas to or
from a foreign country.
(3) Upon finding the issuance of the permit to be
consistent with the public interest, and, after obtaining the favorable recommendations of the Secretary of
State and the Secretary of Defense thereon, to issue
to the applicant, as appropriate, a permit for such construction, operation, maintenance, or connection. The
Secretary of Energy shall have the power to attach to
the issuance of the permit and to the exercise of the

Page 773

TITLE 15-COMMERCE AND TRADE

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

This section is referred to in title 49 App. section
1676.
§ 717c. Rates and charges
(a) Just and reasonable rates and charges
All rates and charges made, demanded, or received by any natural-gas company for or in
connection with the transportation or sale of
natural gas subject to the jurisdiction of the
Commission, and all rules and regulations affecting or pertaining to such rates or charges,
shall be just and reasonable, and any such rate
or charge that is not just and reasonable is declared to be unlawful.
(b) Undue preferences and unreasonable rates and
charges prohibited
No natural-gas company shall, with respect to
any transportation or sale of natural gas subject to the jurisdiction of the Commission, (1)
make or grant any undue preference or advantage to any person or subject any person to any
undue prejudice or disadvantage, or (2) maintain any unreasonable difference in rates,
charges, service, facilities, or in any other respect, either as between localities or as between
classes of service.
(c) Filing of rates and charges with Commission;
public inspection of schedules
Under such rules and regulations as the Commission may prescribe, every natural-gas company shall file with the Commission, within
such time (not less than sixty days from June
21, 1938) and in such form as the Commission
may designate, and shall keep open in convenient form and place for public inspection,
schedules showing all rates and charges for any
transportation or sale subject to the jurisdiction of the Commission, and the classifications,
practices, and regulations affecting such rates
and charges, together with all contracts which
in any manner affect or relate to such rates,
charges, classifications, and services.
(d) Changes in rates and charges; notice to Commission
Unless the Commission otherwise orders, no
change shall be made by any natural-gas com-

§ 717c

pany in any such rate, charge, classification, or
service, or in any rule, regulation, or contract
relating thereto, except after thirty days'
notice to the Commission and to the public.
Such notice shall be given by filing with the
Commission and keeping open for public inspection new schedules stating plainly the
change or changes to be made in the schedule
or schedules then in force and the time when
the change or changes will go into effect. The
Commission, for good cause shown, may allow
changes to take effect without requiring the
thirty days' notice herein provided for by an
order specifying the changes so to be made and
the time when they shall take effect and the
manner in which they shall be filed and published.
(e) Authority of Commission to hold hearings concerning new schedule of rates
Whenever any such new schedule is filed the
Commission shall have authority, either upon
complaint of any State, municipality, State
commission, or gas distributing company, or
upon its own initiative without complaint, at
once, and if it so orders, without answer or
formal pleading by the natural-gas company,
but upon reasonable notice, to enter upon a
hearing concerning the lawfulness of such rate,
charge, classification, or service; and, pending
such hearing and the decision thereon, the
Commission, upon filing with such schedules
and delivering to the natural-gas company affected thereby a statement in writing of its reasons for such suspension, may suspend the operation of such schedule and defer the use of
such rate, charge, classification, or service, but
not for a longer period than five months
beyond the time when it would otherwise go
into effect; and after full hearings, either completed before or after the rate, charge, classification, or service goes into effect, the Commission may make such orders with reference
thereto as would be proper in a proceeding initiated after it had become effective. If the proceeding has not been concluded and an order
made at the expiration of the suspension
period, on motion of the natural-gas company
making the filing, the proposed change of rate,
charge, classification, or service shall go into
effect. Where increased rates or charges are
thus made effective, the Commission may, by
order, require the natural-gas company to furnish a bond, to be approved by the Commission,
to refund any amounts ordered by the Commission, to keep accurate accounts in detail of all
amounts received by reason of such increase,
specifying by whom and in whose behalf such
amounts were paid, and, upon completion of
the hearing and decision, to order such naturalgas company to refund, with interest, the portion of such increased rates or charges by its
decision found not justified. At any hearing involving a rate or charge sought to be increased,
the burden of proof to show that the increased
rate or charge is just and reasonable shall be
upon the natural-gas company, and the Commission shall give to the hearing and decision
of such questions preference over other ques-

§ 717d

TITLE 15-COMMERCE AND TRADE

tions pending before it and decide the same as
speedily as possible.
(June 21, 1938, ch. 556, § 4, 52 Stat. 822; May 21,
1962, Pub. L. 87-454, 76 Stat. 72.)
AMENDMENTS
1962-Subsec. (e). Pub. L. 87-454 inserted "or gas distributing company" after "State commission", and
struck out proviso which denied authority to the Commission to suspend the rate, charge, classification, or
service for the sale of natural gas for resale for industrial use only.
TRANSFER OF FUNcTIONs

The Federal Power Commission was terminated and
its functions with regard to establishment, review, and
enforcement of rates and charges for transportation
and sale of natural gas by a producer or gatherer or by
a natural gas pipeline or natural gas company and the
establishment, review, and enforcement of curtailments under this chapter, other than the establishment and review of priorities for such curtailments,
were transferred to the Federal Energy Regulatory
Commission by sections 7172(a)(1)(C), (E) and 7293 of
Title 42, The Public Health and Welfare.
For transfer of the functions of the Federal Power
Commission, with certain reservations, to the chairman of such commission, see Reorg. Plan No. 9 of
1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5, Government
Organization and Employees.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 717y, 3431 of
this title; title 42 sections 7172, 8235e, 8441; title 50
section 1671.
§ 717d. Fixing rates and charges; determination of
cost of production or transportation
(a) Decreases in rates
Whenever the Commission, after a hearing
had upon its own motion or upon complaint of
any State, municipality, State commission, or
gas distributing company, shall find that any
rate, charge, or classification demanded, observed, charged, or collected by any natural-gas
company in connection with any transportation
or sale of natural gas, subject to the jurisdiction of the Commission, or that any rule, regulation, practice, or contract affecting such rate,
charge, or classification is unjust, unreasonable,
unduly discriminatory, or preferential, the
Commission shall determine the just and reasonable rate, charge, classification, rule, regulation, practice, or contract to be thereafter observed and in force, and shall fix the same by
order: Provided, however, That the Commission
shall have no power to order any increase in
any rate contained in the currently effective
schedule of such natural gas company on file
with the Commission, unless such increase is in
accordance with a new schedule filed by such
natural gas company; but the Commission may
order a decrease where existing rates are
unjust, unduly discriminatory, preferential,
otherwise unlawful, or are not the lowest reasonable rates.
(b) Costs of production and transportation
The Commission upon its own motion, or
upon the request of any State commission,
whenever it can do so without prejudice to the
efficient and proper conduct of its affairs, may

Page 774

investigate and determine the cost of the production or transportation of natural gas by a
natural-gas company in cases where the Commission has no authority to establish a rate
governing the transportation or sale of such
natural gas.
(June 21, 1938, ch. 556, § 5, 52 Stat. 823.)
TRANSFER OF FUNCTIONS

The Federal Power Commission was terminated and
its functions with regard to establishment, review, and
enforcement of rates and charges for transportation
and sale of natural gas by a producer or gatherer or by
a natural gas pipeline or natural gas company were
transferred to the Federal Energy Regulatory Commission by sections 7172(a)(1)(C) and 7293 of Title 42,
The Public Health and Welfare.
For transfer of the functions of the Federal Power
Commission, with certain reservations, to the chairman of such commission, see Reorg. Plan No. 9 of
1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5, Government
Organization and Employees.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 717y, 3431 of
this title; title 42 sections 7172, 8235e, 8441; title 50
section 167i.
§ 717e. Ascertainment of cost of property
(a) Cost of property
The Commission may investigate and ascertain the actual legitimate cost of the property
of every natural-gas company, the depreciation
therein, and, when found necessary for ratemaking purposes, other facts which bear on the
determination of such cost or depreciation and
the fair value of such property.
(b) Inventory of property; statements of costs
Every natural-gas company upon request
shall file with the Commission an inventory of
all or any part of its property and a statement
of the original cost thereof, and shall keep the
Commission informed regarding the cost of all
additions, betterments, extensions, and new
construction.
(June 21, 1938, ch. 556, § 6, 52 Stat. 824.)
TRANSFER OF FUNCTIONS

a natural gas pipeline or natural gas company were
transferred to the Federal Energy Regulatory Commission by sections 7172(a)(1)(C) and 7293 of Title 42,
The Public Health and Welfare.
For transfer of the functions of the Federal Power

Commission, with certain reservations, to the chairman of such commission, see Reorg. Plan No. 9 of

1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5, Government

Organization and Employees.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 7172.

Page 775

TITLE 15-COMMERCE AND TRADE

§ 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.

§ 717f

(B) In all other cases the Commission shall
set the matter for hearing and shall give such
reasonable notice of the hearing thereon to all
interested persons as in its judgment may be
necessary under rules and regulations to be prescribed by the Commission; and the application
shall be decided in accordance with the procedure provided in subsection (e) of this section
and such certificate shall be issued or denied
accordingly: Provided, however, That the Commission may issue a temporary certificate in
cases of emergency, to assure maintenance of
adequate service or to serve particular customers, without notice or hearing, pending the determination of an application for a certificate,
and may by regulation exempt from the requirements of this section temporary acts or
operations for which the issuance of a certificate will not be required in the public interest.
(2) The Commission may issue a certificate of
public convenience and necessity to a naturalgas company for the transportation in interstate commerce of natural gas used by any
person for one or more high-priority uses, as
defined, by rule, by the Commission, in the case
of(A) natural gas sold by the producer to such
person; and
(B) natural gas produced by such person.
(d) Application for certificate of public convenience
and necessity
Application for certificates shall be made in
writing to the Commission, be verified under
oath, and shall be in such form, contain such
information, and notice thereof shall be served
upon such interested parties and in such
manner as the Commission shall, by regulation,
require.
(e) Granting of certificate of public convenience and
necessity
Except in the cases governed by the provisos
contained in subsection (c)(1) of this section, a
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.

TITLE 15-COMMERCE AND TRADE

§ 717g

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 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; Nov. 9, 1978, Pub. L. 95-617, title
VI, § 608, 92 Stat. 3173; Oct. 6, 1988, Pub. L.
100-474, § 2, 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).

Page 776

EFFECTIVE DATE OF 1988 AMENDMENT
Section 3 of Pub. L. 100-474 provided that: "The pro-

visions 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 were transferred to
the Federal Inspector, Office of Federal Inspector for
the Alaska Natural Gas Transportation System, until
the first anniversary of date of initial operation of the
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.
The Federal Power Commission was terminated and
its functions with regard to issuance of certificates of
public convenience and necessity, including abandon-

ment of facilities or services, and the establishment of
physical connections were transferred to the Federal
by
sections
Commission
Energy Regulatory
7172(a)(1)(D) and 7293 of Title 42, The Public Health
and Welfare.
For transfer of the functions of the Federal Power
Commission, with certain reservations, to the chairman of such commission, see Reorg. Plan No. 9 of
1950, §§ 1, 2, eff. May 24, 1950, 15 P.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5, Government
Organization and Employees.
FEDERAL RULES OF CIVIL PROCEDURE

Condemnation of property, see rule 71A, Title 28,
Appendix, Judiciary and Judicial Procedure.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 717y, 3301,
3312, 3394, 3431 of this title; title 42 sections 7172,
8235e, 8441; title 43 sections 1351, 1862; title 49 App.

section 1676.
§ 717g. Accounts; records; memoranda
(a) Rules and regulations for keeping and preserving
accounts, records, etc.
Every natural-gas company shall make, keep,
and preserve for such periods, such accounts,
records of cost-accounting procedures, correspondence, memoranda, papers, books, and
other records as the Commission may by rules
and regulations prescribe as necessary or appropriate for purposes of the administration of
this chapter: Provided, however, That nothing
in this chapter shall relieve any such naturalgas company from keeping any accounts,
memoranda, or records which such natural-gas
company may be required to keep by or under
authority of the laws of any State. The Commission may prescribe a system of accounts to
be kept by such natural-gas companies, and
may classify such natural-gas companies and
prescribe a system of accounts for each class.
The Commission, after notice and opportunity
for hearing, may determine by order the accounts in which particular outlays or receipts
shall be entered, charged, or credited. The
burden of proof to justify every accounting
entry questioned by the Commission shall be

Page 777

TITLE 15-COMMERCE AND TRADE

on the person making, authorizing, or requiring
such entry, and the Commission may suspend a
charge or credit pending submission of satisfactory proof in support thereof.
(b) Access to and inspection of accounts and records
The Commission shall at all times have access
to and the right to inspect and examine all accounts, records, and memoranda of natural-gas
companies; and it shall be the duty of such natural-gas companies to furnish to the Commission, within such reasonable time as the Commission may order, any information with respect thereto which the Commission may by
order require, including copies of maps, contracts, reports of engineers, and other data, records, and papers, and to grant to all agents of
the Commission free access to its property and
its accounts, records, and memoranda when requested so to do. No member, officer, or employee of the Commission shall divulge any fact
or information which may come to his knowledge during the course of examination of
books, records, data, or accounts, except insofar
as he may be directed by the Commission or by
a court.
(c) Books, accounts, etc., of the person controlling
gas company subject to examination
The books, accounts, memoranda, and records
of any person who controls directly or indirectly a natural-gas company subject to the jurisdiction of the Commission and of any other
company controlled by such person, insofar as
they relate to transactions with or the business
of such natural-gas company, shall be subject
to examination on the order of the Commission.
(June 21, 1938, ch. 556, § 8, 52 Stat. 825.)
TRANSFER OF FUNCTIONS

This section is referred to in title 42 section 7172.
§ 717h. Rates of depreciation
(a) Depreciation and amortization
The Commission may, after hearing, require
natural-gas companies to carry proper and adequate depreciation and amortization accounts
in accordance with such rules, regulations, and
forms of account as the Commission may prescribe. The Commission may from time to time
ascertain and determine, and by order fix, the
proper and adequate rates of depreciation and
amortization of the several classes of property
of each natural-gas company used or useful in
the production, transportation, or sale of natural gas. Each natural-gas company shall con-

§ 717i

form its depreciation and amortization accounts
to the rates so ascertained, determined, and
fixed. No natural-gas company subject to the
jurisdiction of the Commission shall charge to
operating expenses any depreciation or amortization charges on classes of property other
than those prescribed by the Commission, or
charge with respect to any class of property a
percentage of depreciation or amortization
other than that prescribed therefor by the
Commission. No such natural-gas company
shall in any case include in any form under its
operating or other expenses any depreciation,
amortization, or other charge or expenditure
included elsewhere as a depreciation or amortization charge or otherwise under its operating
or other expenses. Nothing in this section shall
limit the power of a State commission to determine in the exercise of its jurisdiction, with respect to any natural-gas company, the percentage rates of depreciation or amortization to be
allowed, as to any class of property of such natural-gas company, or the composite depreciation or amortization rate, for the purpose of determining rates or charges.
(b) Rules
The Commission, before prescribing any rules
or requirements as to accounts, records, or
memoranda, or as to depreciation or amortization rates, shall notify each State commission
having jurisdiction with respect to any naturalgas company involved and shall give reasonable
opportunity to each such commission to present its views and shall receive and consider
such views and recommendations.
(June 21, 1938, ch. 556, § 9, 52 Stat. 826.)
TRANSFER OF FUNCTIONS

The Federal Power Commission was terminated and

its functions, personnel, property, funds, etc., were
transferred to the Secretary of Energy (except for cer-

tain functions which were transferred to the Federal

Energy Regulatory Commission) by sections 7151(b),
7171(a), 7172(a), 7291, and 7293 of Title 42, The Public

Health and Welfare.
For transfer of the functions of the Federal Power
Commission, with certain reservations, to the chairman of such commission, see Reorg. Plan No. 9 of
1950, §H 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5, Government
Organization and Employees.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 7172.

§ 717i. Periodic and special reports
(a) Form and contents of reports
Every natural-gas company shall file with the
Commission such annual and other periodic or
special reports as the Commission may by rules
and regulations or order prescribe as necessary
or appropriate to assist the Commission in the
proper administration of this chapter. The
Commission may prescribe the manner and
form in which such reports shall be made, and
require from such natural-gas companies specific answers to all questions upon which the
Commission may need information. The Commission may require that such reports shall include, among other things, full information as

§ 717i

TITLE 15-COMMERCE AND TRADE

to assets and liabilities, capitalization, investment and reduction thereof, gross receipts, interest due and paid, depreciation, amortization,
and other reserves, cost of facilities, cost of
maintenance and operation of facilities for, the
production, transportation, or sale of natural
gas, cost of renewal and replacement of such facilities, transportation, delivery, use, and sale of
natural gas. The Commission may require any
such natural-gas company to make adequate
provision for currently determining such costs
and other facts. Such reports shall be made
under oath unless the Commission otherwise
specifies.
(b) Unlawful conduct
It shall be unlawful for any natural-gas company willfully to hinder, delay, or obstruct the
making, filing, or keeping of any information,
document, report, memorandum, record, or account required to be made, filed, or kept under
this chapter or any rule, regulation, or order
thereunder.
(June 21, 1938, ch. 556, § 10, 52 Stat. 826.)
TRANSFER OF FUNCTIONS

This section is referred to in title 42 section 7177.
§ 717j. State compacts for conservation, transportation, etc., of natural gas
(a) Assembly of pertinent information; report to Congress
In case two or more States propose to the
Congress compacts dealing with the conservation, production, transportation, or distribution
of natural gas it shall be the duty of the Commission to assemble pertinent information relative to the matters covered in any such proposed compact, to make public and to report to
the Congress information so obtained, together
with such recommendations for further legislation as may appear to be appropriate or necessary to carry out the purposes of such proposed
compact and to aid in the conservation of natural-gas resources within the United States and
in the orderly, equitable, and economic production, transportation, and distribution of natural
gas.
(b) Assembly of information relative to operation of
compact; report to Congress
It shall be the duty of the Commission to assemble and keep current pertinent information
relative to the effect and operation of any compact between two or more States heretofore or
hereafter approved by the Congress, to make
such information public, and to report to the

Page 778

Congress, from time to time, the information so
obtained, together with such recommendations
as may appear to be appropriate or necessary to
promote the purposes of such compact.
(c) Availability of services, etc., of other agencies
In carrying out the purposes of this chapter,
the Commission shall, so far as practicable,
avail itself of the services, records, reports, and
information of the executive departments and
other agencies of the Government, and the
President may, from time to time, direct that
such services and facilities be made available to
the Commission.
(June 21, 1938, ch. 556, § 11, 52 Stat. 827.)
TRANSFER OF FUNCTIONS

The Federal
its functions,
transferred to
tain functions

Power Commission was terminated and
personnel, property, funds, etc., were
the Secretary of Energy (except for cerwhich were transferred to the Federal

Energy Regulatory Commission) by sections 7151(b),

7171(a), 7172(a), 7291, and 7293 of Title 42, The Public
Health and Welfare.
For transfer of the functions of the Federal Power
Commission, with certain reservations, to the chairman of such commission, see Reorg. Plan No. 9 of
1950, §§ 1, 2, eff. May 24, 1950, 15 P.R. 3175, 64 Stat.

1265, set out in the Appendix to Title 5, Government
Organization and Employees.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 7177.
§ 717k. Officials dealing in securities
It shall be unlawful for any officer or director
of any natural-gas company to receive for his
own benefit, directly or indirectly, any money
or thing of value in respect to the negotiation,
hypothecation, or sale by such natural-gas company of any security issued, or to be issued, by
such natural-gas company, or to share in any of
the proceeds thereof, or to participate in the
making or paying of any dividends, other than
liquidating dividends, of such natural-gas company from any funds properly included in capital account.
(June 21, 1938, ch. 556, § 12, 52 Stat. 827.)
§ 7171. Complaints
Any State, municipality, or State commission
complaining of anything done or omitted to be
done by any natural-gas company in contravention of the provisions of this chapter may apply
to the Commission by petition, which shall
briefly state the facts, whereupon a statement
of the complaint thus made shall be forwarded
by the Commission to such natural-gas company, which shall be called upon to satisfy the
complaint or to answer the same in writing
within a reasonable time to be specified by the
Commission.
(June 21, 1938, ch. 556, § 13, 52 Stat. 827.)
TRANSFER OF FUNCTIONS

The Federal Power Commission was terminated and

its functions, personnel, property, funds, etc., were
transferred to the Secretary of Energy (except for cer-

tain functions which were transferred to the Federal

Energy Regulatory Commission) by sections 7151(b),

Page 779

TITLE 15-COMMERCE AND TRADE

This section is referred to in title 42 section 7172.
§ 717m. Investigations by Commission
(a) Power of Commission
The Commission may investigate any facts,
conditions, practices, or matters which it may
find necessary or proper in order to determine
whether any person has violated or is about to
violate any provisions of this chapter or any
rule, regulation, or order thereunder, or to aid
in the enforcement of the provisions of this
chapter or in prescribing rules or regulations
thereunder, or in obtaining information to
serve as a basis for recommending further legislation to the Congress. The Commission may
permit any person to file with it a statement in
writing, under oath or otherwise, as it shall determine, as to any or all facts and circumstances concerning a matter which may be the
subject of investigation. The Commission, in its
discretion, may publish in the manner authorized by section 825k of title 16, and make available to State commissions and municipalities,
information concerning any such matter.
(b) Determination of adequacy of gas reserves
The Commission may, after hearing, determine the adequacy or inadequacy of the gas reserves held or controlled by any natural-gas
company, or by anyone on its behalf, including
its owned or leased properties or royalty contracts; and may also, after hearing, determine
the propriety and reasonableness of the inclusion in operating expenses, capital, or surplus
of all delay rentals or other forms of rental or
compensation for unoperated lands and leases.
For the purpose of such determinations, the
Commission may require any natural-gas company to file with the Commission true-copies of
all its lease and royalty agreements with respect to such gas reserves.
(c) Administration of oaths and affirmations; subpena of witnesses, etc.
For the purpose of any investigation or any
other proceeding under this chapter, any
member of the Commission, or any officer designated by it, is empowered to administer oaths
and affirmations, subpena witnesses, compel
their attendance, take evidence, and require the
production of any books, papers, correspondence, memoranda, contracts, agreements, or
other records which the Commission finds relevant or material to the inquiry. Such attendance of witnesses and the production of any
such records may be required from any place in
the United States or at any designated place of
hearing. Witnesses summoned by the Commission to appear before it shall be paid the same
fees and mileage that are paid witnesses in the
courts of the United States.

§ 717m

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

§ 717n

TITLE 15-COMMERCE AND TRADE

depositions must be promptly filed with the
Commission.
(g) Witness-fees
Witnesses whose depositions are taken as authorized in this chapter, and the person-or offi-.
cer taking the same, shall be entitled to the.
same fees as are paid for like services in the
courts of the United States.
(June 21, 1938, ch. 556, § 14, 52 Stat. 828; Oct.
15, 1970, Pub. L. 91-452, title II, § 218, 84 Stat.
929.)
AMENDMENTS

1970-Subsec. (h). Pub. L. 91-452 struck out subsec.
(h) which related to.the immunity from prosecution of
any individual compelled to testify or produce evidence, documentary or otherwise, after claiming his
privilege against self-incrimination.
EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-452 effective on the sixtieth day following Oct. 15, 1970, see section 260 of Pub.
L. 91-452, set out as an Effective Date; Savings Provision note under section 6001 of Title 18, Crimes and
Criminal Procedure.

Page 780

bers thereof, or any representative of the Commission designated by it, and appropriate
records thereof shall be kept. In any proceeding
before it, the Commission in accordance with
such rules and regulations as it may prescribe,
may admit as a party any interested State,
State commission, municipality or any representative of interested consumers or security
holders, or any competitor of a party to such
proceeding, or any other person whose participation in the proceeding may be in the public
interest.
(b) Procedure
All hearings, investigations, and proceedings
under this chapter shall be governed by rules of
practice and procedure to be adopted by the
Commission, and in the conduct thereof the
technical rules of evidence need not be applied.
No informality in any hearing, investigation, or
proceeding or in the manner of taking testimony shall invalidate any order, decision, rule, or
regulation issued under the authority of this
chapter.
(June 21, 1938, ch. 556, § 15, 52 Stat 829.)

SAVINGS PROVISION

Amendment by Pub. L. 91-452 not to affect any immunity to which any individual is entitled under this
section by reason of any testimony given before the
sixtieth day following Oct. 15, 1970, see section 260 of
Pub. L. 91-452, set out as an Effective Date; Savings
Provision note under section 6001 of Title 18, Crimes
and Criminal Procedure.
TRANSFER OF FUNCTIONS

Process, see rule 4, Title 28, Appendix, Judiciary and
Judicial Procedure.
FEDERAL RULES OF CRIMINAL PROCEDURE

Criminal contempt, see rule 42 and note by Advisory
Committee set out under the rule, Title 18, Appendix;
Crimes and Criminal Procedure.
CROSS REFERENCES

Contempt proceedings, see sections 401, 402, 3285,
and 3691 of Title 18, Crimes and Criminal Procedure.
Fees and mileage of witnesses, see chapter 119 of
Title 28, Judiciary and Judicial Procedure.
Immunity of witnesses, see section 6001 et seq. of
Title 18, Crimes and Criminal Procedure.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 7172.
§ 717n. Hearings; rules of procedure
(a) Hearings; parties
Hearings under this chapter may be held
before the Commission, any member or mem-

TRANSFER OF FUNCTIONS

The Federal Power Commission was terminated and
its

functions,

personnel,

property, funds,

etc., were

transferred to the Secretary of Energy (except for certain functions which were transferred to the Federal
Energy Regulatory Commission) by sections 7151(b),
7171(a), 7172(a), 7291, and 7293 of Title 42, The Public
Health and Welfare.
For transfer of the functions of the Federal Power
Commission, with certain reservations, to the chairman of such commission, see Reorg. Plan No. 9 of
1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5, Government
Organization and Employees.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 7172.
§ 717o. Administrative powers of Commission; rules,
regulations, and orders
The Commission shall have power to perform
any and all acts, and to prescribe; issue, make,
amend, and rescind such orders, rules, and regulations as it may find necessary orappropriate
to carry out the provisions of this chapter.
Among other things, such rules and regulations
may define accounting, technical, and trade
terms used in this chapter; and may prescribe
the form or forms of all statements, declarations, applications, and reports to be filed with
the Commission, the information which they
shall contain, and the time within which they,
shall be filed. Unless a different date is specified therein, rules and regulations of the Commission shall be effective thirty days after publication in the manner which the Commission
shall prescribe. Orders of the Commission shall
be effective on the date and in the manner
which the Commission shall prescribe. For the
purposes of its rules and regulations, the Commission may classify persons and matters
within its jurisdiction and prescribe different
requirements for different classes of persons or
matters. All rules and regulations of the Commission shall be filed with its secretary and

TITLE 15-COMMERCE AND TRADE

Page 781

shall be kept open in convenient form for
public inspection and examination during reasonable business hours.
(June 21, 1938, ch. 556, § 16, 52 Stat. 830.)
TRANSFER OF FuNCTIONS

The Federal Power Commission was terminated and
its functions, personnel, property, funds, etc.,. were
transferred to the Secretary of Energy (except for certain functions which were transferred to the Federal
Energy Regulatory Commission) by sections 7151(b),
7171(a), 7172(a), 7291, and 7293 of Title 42, The Public
Health and Welfare.
For transfer of the functions of the Federal Power
Commission, with certain reservations, to the chairman of such commission, see Reorg, Plan No. 9 of
1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5, Government
Organization and Employees.

§ 717q

The Commission shall make available. to the
several State commissions such information
and reports as may be of assistance in State
regulation of natural-gas companies. Whenever
the Commission can do so without prejudice to
the efficient and proper conduct of its affairs, it
may, upon -request. from- a State commission,
make available to such State commission as witnesses any of its trained rate, valuation, or
other experts, subject to reimbursement of the
compensation and traveling expenses of such
witnesses. All sums collected hereunder shall be
credited to the appropriation from which the
amounts were expended in carrying out the
provisions of this subsection.
(June 21, 1938, ch. 556, § 17, 52 Stat. 830.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 7172.
§ 717p. Joint boards
(a) Reference of matters to joint boards; composition
and power
The Commission may refer any matter arising in the administration of this chapter to a
board to be composed of a member or members,
as determined by the Commission, from the
State or each of the States affected or to be affected by such matter. Any such board shall be
vested with the same power and be subject to
the same duties and liabilities as in the case of
a member of the Commission when designated
by the Commission to hold any hearings. The
action of such board shall have such force and
effect and its proceedings shall be conducted in
such manner as the Commission shall by regulations prescribe. The Board shall be appointed
by the Commission from persons nominated by
the State commission of each State affected, or
by the Governor of such State if there is no
State commission. Each State affected shall be
entitled to the same number of representatives
on the board unless the nominating power of
such State waives such right. The Commission
shall have discretion to reject the nominee
from any State, but shall thereupon invite a
new nomination from that State. The members
of a board shall receive such allowances for expenses as the Commission shall provide. The
Commission may, when in its discretion sufficient reason exists therefor, revoke any reference to such a board.
(b) Conference with State commissions regarding rate
structure, costs, etc.
The Commission may confer with any State
commission regarding rate structures, costs, ac-.
counts, charges, practices, classifications, and
regulations of natural-gas companies; and the
Commission is authorized, under such rules and
regulations as it shall prescribe, to hold joint
hearings with any State commission in connection with any matter with respect to which the
Commission is authorized to act. The Commission is authorized in the administration of this
chapter to avail itself of such cooperation, services, records, and facilities as may be afforded
by any State commission.

TRANSFER OF FUNCTIONS

7171(a), 7172(a), 7291, and 7293 of Title 42, The Public
Health and Welfare.
For transfer of the functions-of the Federal. Power
Commission, with certain reservations, to, the chairman of such commission,: see Reorg. Plan. No. 9 of
1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5, Government
Organization and Employees.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 7172.
§ 717q. Appointment of officers and employees
The Commission is authorized to appoint and
fix the compensation of such officers, attorneys, examiners, and experts as may be necessary for carrying out its functions under this
chapter; and the Commission may, subject to
civil-service laws, appoint such other officers
and employees as are necessary for carrying out
such functions and fix their salaries in accordance with chapter 51- and -subchapter III of
chapter 53 of title 5..
(June 21, 1938, ch. 556, § 18, 52 Stat. 831; Oct.
28, 1949, ch. 782, title XI, § 1106(a), 63 Stat.
972.)
REFERENCES IN TEXT

The civil-service laws, referred to in text, are set
forth in Title 5, Government Organization and Em
ployees. See, particularly, section 3301 et seq. of Title

CODIFICATION

Provisions that authorized the Commission to appoint and fix the compensation of such officers, attorneys, examiners, and experts as may be necessary for
carrying out its functions under this chapter "without
regard to the provisions of other laws applicable to the
employment and compensation of officers and employees of the United States" are omitted as obsolete and

superseded.
As to the compensation of such personnel, sections

1202 and 1204 of the Classification Act of 1949, 63
Stat. 972, 973, repealed the Classification Act of 1923

and all other laws or parts of laws inconsistent with
the 1949 Act. The Classification Act of 1949 was re-

TITLE 15-COMMERCE AND TRADE

§ 717r

pealed by Pub. L. 89-554, Sept. 6, 1966, § 8(a), 80 Stat.
632, and reenacted as chapter 51 and subchapter III of
chapter 53 of Title 5, Government Organization and
Employees. Section 5102 of Title 5 contains the applicability provisions of the 1949 Act, and section 5103 of
Title 5 authorizes the Office of Personnel Management to determine the applicability to specific positions and employees.
Such appointments are now subject to the civil service laws unless specifically excepted by those laws or
by laws enacted subsequent to Executive Order 8743,
Apr. 23, 1941, issued by the President pursuant to the
Act of Nov. 26, 1940, ch. 919, title I, § 1, 54 Stat. 1211,
which covered most excepted positions into the classified (competitive) civil service. The Order is set out as
a note under section 3301 of Title 5.
"Chapter 51 and subchapter III of chapter 53 of title
5" were substituted for "the Classification Act of 1949,
as amended" on authority of Pub. L. 89-554, § 7(b),
Sept. 6, 1966, 80 Stat. 631, the first section of which
enacted Title 5.
AMENDMENTS

1949-Act Oct. 28, 1949, substituted "Classification
Act of 1949" for "Classification Act of 1923".
REPEALS
Act Oct. 28, 1949, ch. 782, cited as a credit to this section, was repealed (subject to a savings clause) by Pub.
L. 89-554, Sept. 6, 1966, § 8, 80 Stat. 632, 655.
TRANSFER OF FUNCTIONS

The Federal Power Commission was terminated and
its functions, personnel, property, funds, etc., were
transferred to the Secretary of Energy (except for certain functions which were transferred to the Federal
Energy Regulatory Commission) by sections 7151(b),
7171(a), 7172(a)(1), 7291, and 7293 of Title 42, The
Public Health and Welfare.
For transfer of the functions of the Federal Power
Commission, with certain reservations, to the chairman of such commission, see Reorg. Plan No. 9 of
1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5, Government
Organization and Employees.
§ 717r. Rehearing and review
(a) Application for rehearing; time
Any person, State, municipality, or State
commission aggrieved by an order issued by the
Commission in a proceeding under this chapter
to which such person, State, municipality, or
State commission is a party may apply for a rehearing within thirty days after the issuance of
such order. The application for rehearing shall
set forth specifically the ground or grounds
upon which such application is based. Upon
such application the Commission shall have
power to grant or deny rehearing or to abrogate
or modify its order without further hearing.
Unless the Commission acts upon the application for rehearing within thirty days after it is
filed, such application may be deemed to have
been denied. No proceeding to review any order
of the Commission shall be brought by any
person unless such person shall have made application to the Commission for a rehearing
thereon. Until the record in a proceeding shall
have been filed in a court of appeals, as provided in subsection (b) of this section, the Commission may at any time, upon reasonable notice
and in such manner as it shall deem proper,
modify or set aside, in whole or in part, any
finding or order made or issued by it under the
provisions of this chapter.

Page 782

(b) Review of Commission order
Any party to a proceeding under this chapter
aggrieved by an order issued by the Commission in such proceeding may obtain a review of
such order in the court of appeals of the United
States for any circuit wherein the natural-gas
company to which the order relates is located
or has its principal place of business, or in the
United States Court of Appeals for the District
of Columbia, by filing in such court, within
sixty days after the order of the Commission
upon the application for rehearing, a written
petition praying that the order of the Commission be modified or set aside in whole or in part.
A copy of such petition shall forthwith be
transmitted by the clerk of the court to any
member of the Commission and thereupon the
Commission shall file with the court the record
upon which the order complained of was entered, as provided in section 2112 of title 28.
Upon the filing of such petition such court
shall have jurisdiction, which upon the filing of
the record with it shall be exclusive, to affirm,
modify, or set aside such order in whole or in
part. No objection to the order of the Commission shall be considered by the court unless
such objection shall have been urged before the
Commission in the application for rehearing
unless there is reasonable ground for failure so
to do. The finding of the Commission as to the
facts, if supported by substantial evidence, shall
be conclusive. If any party shall apply to the
court for leave to adduce additional evidence,
and shall show to the satisfaction of the court
that such additional evidence is material and
that there were reasonable grounds for failure
to adduce such evidence in the proceedings
before the Commission, the court may order
such additional evidence to be taken before the
Commission and to be adduced upon the hearing in such manner and upon such terms and
conditions as to the court may seem proper.
The Commission may modify its findings as to
the facts by reason of the additional evidence
so taken, and it shall file with the court such
modified or new findings, which is supported by
substantial evidence, shall be conclusive, and its
--recommendation, if any, for the modification or
setting aside of the original order. The judgment and decree of the court, affirming, modifying, or setting aside, in whole or in part, any
such order of the Commission, shall be final,
subject to review by the Supreme Court of the
United States upon certiorari or certification as
provided in section 1254 of title 28.
(c) Stay of Commission order
The filing of an application for rehearing
under subsection (a) of this section shall not,
unless specifically ordered by the Commission,
operate as a stay of the Commission's order.
The commencement of proceedings under subsection (b) of this section shall not, unless specifically ordered by the court, operate as a stay
of the Commission's order.
(June 21, 1938, ch. 556, § 19, 52 Stat. 831; June
25, 1948, ch. 646, § 32(a), 62 Stat. 991; May 24,
1949, ch. 139, § 127, 63 Stat. 107; Aug. 28, 1958,
Pub. L. 85-791, § 19, 72 Stat. 947.)

TITLE 15-COMMERCE AND TRADE

Page 783

CODIFICATION

In subsec. (b), "section 1254 of title 28" was substituted for "sections 239 and 240 of the Judicial Code, as
amended [28 U.S.C. 346, 347]" on authority of act
June 25, 1948, ch. 646, 62 Stat. 869, the first section of
which enacted Title 28, Judiciary and Judicial Procedure.
AMENDMENTS

1958-Subsec. (a). Pub. L. 85-791, § 19(a), inserted
sentence providing that until record in a proceeding
has been filed in a court of appeals, Commission may
modify or set aside any finding or order issued by it.
Subsec. (b). Pub. L. 85-791, § 19(b), in second sentence, substituted "transmitted by the clerk of the
court to" for "served upon", substituted "file with the
court" for "certify and file with the court a transcript
of", and inserted "as provided in section 2112 of title
28", and, in third sentence, substituted "petition" for
"transcript", and "jurisdiction, which upon the filing
of the record with it shall be exclusive" for "exclusive
jurisdiction".
CHANGE OF NAME

Act June 25, 1948, eff. Sept. 1, 1948, as amended by
act May 24, 1949, substituted "court of appeals" for
"circuit court of appeals" wherever appearing.
TRANSFER OF FUNCTIONS

7171(a), 7172(a)(1), 7291, and 7293 of Title 42, The

Public Health and Welfare.
For transfer of the functions of the Federal Power
Commission, with certain reservations, to the chairman of such commission, see Reorg. Plan No. 9 of
1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out in the Appendix to Title 5. Government
Organization and Employees.

§ 717s. Enforcement of chapter
(a) Action in district court for injunction
Whenever it shall appear to the Commission
that any person is engaged or about to engage
in any acts or practices which constitute or will
constitute a violation of the provisions of this
chapter, or of any rule, regulation, or order
thereunder, it may in its discretion bring an
action in the proper district court of the United
States, or the United States courts of any Territory or other place subject to the jurisdiction of
the United States, to enjoin such acts or practices and to enforce compliance with this chapter or any rule, regulation, or order thereunder,
and upon a proper showing a permanent or
temporary injunction or decree or restraining
order shall be granted without bond. The Commission may transmit such evidence as may be
available concerning such acts or practices or
concerning apparent violations of the Federal
antitrust laws to the Attorney General, who, in
his discretion, may institute the necessary
criminal proceedings.
(b) Mandamus
Upon application of the Commission the district courts of the United States and the United
States courts of any Territory or other place
subject to the jurisdiction of the United States
shall have jurisdiction to issue writs of mandamus commanding any person to comply with

§ 717t

the provisions of this chapter or any rule, regulation, or order of the Commission thereunder.
(c) Employment of attorneys by Commission
The Commission may employ such attorneys
as it finds necessary for proper legal aid and
service of the Commission or its members in
the conduct of their work, or for proper representation of the public interest in investigations
made by it, or cases or proceedings pending
before it, whether at the Commission's own instance or upon complaint, or to appear for or
represent the Commission in any case in court;
and the expenses of such employment shall be
paid out of the appropriation for the Commission.
(June 21, 1938, ch. 556, § 20, 52 Stat. 832; June
25, 1948, ch. 646, § 1, 62 Stat. 875, 895.)
REFERENCES IN TEXT

The Federal antitrust laws, referred to in subsec. (a),
are classified generally to chapter 1 (§ 1 et seq.) of this
title.
CODIFICATION

The words "the District Court of the United States
for the District of Columbia" in subsec. (a) following
"district court of the United States" and in subsec. (b)
following "district courts of the United States" have
been deleted as superfluous in view of section 132(a) of
Title 28, Judiciary and Judi6ial Procedure, which
states that "There shall be in each judicial district a
district court which shall be a court of record known
as the United States District Court for the district",
and section 88 of title 28 which states that "The District of Columbia constitutes one judicial district".
TRANSFER OF FUNCTIONS

Injunctions, see rule 65, Title 28, Appendix, Judiciary and Judicial Procedure.
Judgments, see rule 54.
Mandamus as abolished but relief yet available by
appropriate action or motion under the rules, see rule
81.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 7172.
§ 717t. General penalties
(a) Any person who willfully and knowingly
does or causes or suffers to be done any act,
matter, or thing in this chapter prohibited or
declared to be unlawful, or who willfully and
knowingly omits or fails to do any act, matter,
or thing in this chapter required to be done, or
willfully and knowingly causes or suffers such
omission or failure, shall, upon conviction
thereof, be punished by a fine of not more than

TITLE 15-COMMERCE AND TRADE

§ 717u

$5,000 or by imprisonment for not more than
two years, or both.
(b) Any person who willfully and knowingly
violates any rule, regulation, restriction, condition, or order made or imposed by the Commission under authority of this chapter, shall, in
addition to any other penalties provided by law,
be punished upon conviction thereof by a fine
of not exceeding $500 for each and every day
during which such offense occurs.
(June 21, 1938, ch. 556, § 21, 52 Stat. 833.)
TRANSFER OF FUNCTIONS

This section is referred to in title 42 section 7172.
§ 717u. Jurisdiction of offenses; enforcement of liabilities and duties
'The District Courts of the United States and
the United States courts of any Territory or
other place subject to the jurisdiction of the
United States shall have exclusive jurisdiction
of violations of this chapter or the rules, regulations, and orders thereunder, and of all suits
in equity and actions at law brought to enforce
any liability or duty created by, or to enjoin
any violation of, this chapter or any rule, regulation, or order thereunder. Any criminal proceeding shall be brought in the district wherein
any act or transaction constituting the violation occurred. Any suit or action to enforce any
liability or duty created by, or to enjoin any
violation of, this chapter or any rule, regulation, or order thereunder may be brought in
any such district or in the district wherein the
defendant is an inhabitant, and process in such
cases may be served wherever the defendant
may be found. Judgments and decrees so rendered shall be subject to review as provided in
sections 1254, 1291, and 1292 of title 28. No
costs shall be assessed against the Commission
in any judicial proceeding by or against the
Commission under this chapter.
(June 21, 1938, ch. 556, § 22, 52 Stat. 833; June
25, 1948, ch. 646, § 1, 62 Stat. 875, 895.)

Page 784

of the Judicial Code, as amended [28 U.S.C. 225 and
347]" on authority of act June 25, 1948, ch. 646, 62
Stat. 869, the first section of which enacted Title 28.
TRANSFER OF FUNCTIONS

Injunctions, see rule 65, Title 28, Appendix, Judiciary and Judicial Procedure.
One form of action, see rule 2.
Process, see rule 4.
Rules as governing the procedure in all suits of a
civil nature whether cognizable as cases at law or in
equity, see rule 1.
FEDERAL RULES OF CRIMINAL PROCEDURE

Continuation of section under rule 18, see note by
Advisory Committee under rule 18, Title 18, Appendix,
Crimes and Criminal Procedure.
CRoss REFERENCES
Venue .of district courts, see section 1391 et seq. of
Title 28, Judiciary and Judicial Procedure.
§ 717v. Separability of provisions
If any provision of this chapter, or the application of such provision to any person or circumstance, shall be held invalid, the remainder
of the chapter, and the application of such provision to persons or circumstances other than
those as to which it is held invalid, shall not be
affected thereby.
(June 21, 1938, ch. 556, § 23, 52 Stat. 833.)
§ 717w. Short title
This chapter may be cited as the "Natural
Gas Act."
(June 21, 1938, ch. 556, § 24, 52 Stat. 833.)
SHORT TITLE OF 1988 AMENDMENT
Pub. L. 100-474, § 1, Oct. 6, 1988, 102 Stat. 2302, provided that: "This Act [amending section 717f of this
title and enacting provisions set out as a note under
section 717f of this title] may be cited as the 'Uniform
Regulatory Jurisdiction Act of 1988'."

§ 717x. Conserved natural gas

CODIFICATION

The words "the District Court of the United States
for the District of Columbia" following "The District
Courts of the United States" have been deleted as superfluous in view of section 132(a) of Title 28, Judiciary and Judicial Procedure, which states that "There
shall be in each judicial district a district court which
shall be a court of record known as the United States
District Court for the district" and section 88 of title
28 which states that "The District of Columbia constitutes one judicial district".
"Sections 1254, 1291, and 1292 of title 28", referred
to in text, were substituted for "sections 128 and 240

(a) Determination of entitlement
(1) For purposes of determining the natural
gas entitlement of any local distribution company under any curtailment plan, if the Commission revises any base period established under
such plan, the volumes of natural gas which
such local distribution company demonstrates(A) were sold by the local distribution company, for a priority use immediately before
the implementation of conservation measures, and

Page 785

TITLE 15-COMMERCE AND TRADE

(B) were conserved by reason of the implementation of such conservation measures,
shall be treated by the Commission following
such revision as continuing to be used for the
priority use referred to in subparagraph (A).
(2) The Commission shall, by rule, prescribe
methods for measurement of volumes of natural gas to which subparagraphs (A) and (B) of
paragraph (1) apply.
(b) Conditions, limitations, etc.
Subsection (a) of this section shall not limit
or otherwise affect any provision of any curtailment plan, or any other provision of law or regulation, under which natural gas may be diverted or allocated to respond to emergency situations or to protect public health, safety, and
welfare.
(c) Definitions
For purposes of this section(1) The term "conservation measures"
means such energy conservation measures, as
determined by the Commission, as were implemented after the base period established
under the curtailment plan in effect on November 9, 1978.
(2) The term "local distribution company"
means any person engaged in the transportation, or local distribution, of natural gas and
the sale of natural gas for ultimate consumption.
(3) The term "curtailment plan" means a
plan (including any modification of such plan
required by the Natural Gas Policy Act of
1978 [15 U.S.C. 3301 et seq.] ) in effect under
the Natural Gas Act [15 U.S.C. 717 et seq.]
which provides for recognizing and implementing priorities of service during periods of
curtailed deliveries.
(Pub. L. 95-617, title VI, § 605, Nov. 9, 1978, 92
Stat. 3167.)
REFERENCES IN TEXT

The Natural Gas Policy Act of 1978, referred to in
subsec. (c)(3), is Pub. L. 95-621, Nov. 9, 1978, 92 Stat.
3350, as amended, which is classified generally to
chapter 60 ( 3301 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title
note set out under section 3301 of this title and
Tables.
The Natural Gas Act, referred to in subsec. (c)(3), is
act June 21, 1938, ch. 556, 52 Stat. 821, as amended,
which is classified generally to this chapter (§ 717 et
seq.). For complete classification of this Act to the
Code, see section 717w of this title and Tables.
CODIFICATION

Section was enacted as part of the Public Utility
Regulatory Policies Act of 1978, and not as part of the
Natural Gas Act which comprises this chapter.
§ 717y. Voluntary conversion of natural gas users to
heavy fuel oil
(a) Transfer of contractual interests

(1) In order to facilitate voluntary conversion
of facilities from the use of natural gas to the
use of heavy petroleum fuel oil, the Commission shall, by rule, provide a procedure for the
approval by the Commission of any transfer to
any person described in paragraph 2(B)(i), (ii),
or (iii) of contractual interests involving the re-

§ 717y

ceipt of natural gas described in paragraph
2(A).
(2)(A) The rule required under paragraph (1)
shall apply to(I natural gas(I) received by the user pursuant to a contract entered into before September 1, 1977,
not including any renewal or extension
thereof entered into or on or after such
date other than any such extension or renewal pursuant to the exercise by such user
of an option to extend or renew such contract;
(II) other than natural gas the sale for
resale or the transportation of which was
subject to the jurisdiction of the Federal
Power Commission under the Natural Gas
Act [15 U.S.C. 717 et seq.] as of September
1, 1977;
(III) which was used as a fuel in any facility in existence on September 1, 1977.
(ii) natural gas subject to a prohibition
order issued under section 717z of this title.
(B) The rule required under paragraph (1)
shall permit the transfer of contractual interests(i) to any interstate pipeline;
(ii) to any local distribution company served
by an interstate pipeline; and
(iii) to any person served by an interstate
pipeline for a high priority use by such
person.
(3) The rule required under paragraph (1)
shall provide that any transfer of contractual
interests pursuant to such rule shall be under
such terms and conditions as the Commission
may prescribe. Such rule shall include a requirement for refund of any consideration, received by the person transferring contractual
interests pursuant to such rule, to the extent
such consideration exceeds the amount by
which the costs actually incurred, during the
remainder of the period of the contract with respect to which such contractual interests are
transferred, in direct association with the use
of heavy petroleum fuel oil as a fuel in the applicable facility exceeds the price under such
contract for natural gas, subject to such contract, delivered during such period.
(4) In prescribing the rule required under
paragraph (1), and in determining whether to
approve any transfer of contractual interests,
the Commission shall consider whether such
transfer of contractual interests is likely to increase demand for imported refined petroleum
products.
(b) Commission approval

(1) No transfer of contractual interests authorized by the rule required under subsection
(a)(1) of this section may take effect unless the
Commission issues a certificate of public convenience and necessity for such transfer if such
natural gas is to be resold by the person to
whom such contractual interests are to be
transferred. Such certificate shall be issued by
the Commission in accordance with the requirements of this subsection and those of section 7
of the Natural Gas Act [15 U.S.C. 717f], and

§ 717y

TITLE 15-COMMERCE AND TRADE

the provisions of such Act [15 U.S.C. 717 et
seq.] applicable to the determination of satisfaction of the public convenience and necessity
requirements of such section.
(2) The rule required under subsection (a)(1)
of this section shall set forth guidelines for the
application on a regional or national basis (as
the Commission determines appropriate) of the
criteria specified in subsection (e)(2) and (3) of
this section to determine the maximum consideration permitted as just compensation under
this section.
(c) Restrictions on transfers unenforceable
Any provision of any contract, which provision prohibits any transfer of any contractual
interests thereunder, or any commingling or
transportation of natural gas subject to such
contract with natural gas the sale for resale or
transportation of which is subject to the jurisdiction of the Commission under the Natural
Gas Act [15 U.S.C. 717 et seq.], or terminates
such contract on the basis of any such transfer,
commingling, or transportation, shall be unenforceable in any court of the United States and
in any court of any State if applied with respect
to any transfer approved under the rule required under subsection (a)(1) of this section.
(d) Contractual obligations unaffected
The person acquiring contractual interests
transferred pursuant to the rule required under
subsection (a)(1) of this section shall assume
the contractual obligations which the person
transferring such contractual interests has
under such contract. This section shall not relieve the person transferring such contractual
interests from any contractual obligation of
such person under such contract if such obligation is not performed by the person acquiring
such contractual interests.
(e) Definitions
For purposes of this section(1) The term "natural gas" has the same
meaning as provided by section 2(5) of the
Natural Gas Act [15 U.S.C. 717a(5)].
(2) The term "just compensation", when
used with respect to any contractual interests
pursuant to the rule required under subsection (a)(1) of this section, means the maximum amount of, or method of determining,
consideration which does not exceed the
amount by which(A) the reasonable costs (not including
capital costs) incurred, during the remainder of the period of the contract with respect to which contractual interests are
transferred pursuant to the rule required
under subsection (a)(1) of this section, in
direct association with the use of heavy petroleum fuel oil as a fuel in the applicable
facility, exceeds
(B) the price under such contract for natural gas, subject to such contract, delivered
during such period.
For purposes of subparagraph (A), the reasonable costs directly associated with the use
of heavy petroleum fuel oil as a fuel shall include an allowance for the amortization, over
the remaining useful life, of the undepreciated value of depreciable assets located on the

Page 786

premises containing such facility, which
assets were directly associated with the use of
natural gas and are not usable in connection
with the use of such heavy petroleum fuel oil.
(3) The term "just compensation", when
used with respect to any intrastate pipeline
which would have transported or distributed
natural gas with respect to which contractual
interests are transferred pursuant to the rule
required under subsection (a)(1) of this section, means an amount equal to any loss of
revenue, during the remaining period of the
contract with respect to which contractual interests are transferred pursuant to the rule
required under subsection (a)(1) of this section, to the extent such loss(A) is directly incurred by reason of the
discontinuation of the transportation or distribution of natural gas resulting from the
transfer of contractual interests pursuant
to the rule required under subsection (a)(1)
of this section; and
(B) is not offset by(i) a reduction in expenses associated
with such discontinuation; and
(ii) revenues derived from other transportation or distribution which would not
have occurred if such contractual interests had not been transferred.
(4) The term "contractual interests" means
the right to receive natural gas under contract as affected by an applicable curtailment
plan filed with the Commission or the appropriate State regulatory authority.
(5) The term "interstate pipeline" means
any person engaged in natural gas transportation subject to the jurisdiction of the Commission under the Natural Gas Act [15 U.S.C.
717 et seq.].
(6) The term "high-priority use" means any
use of natural gas (other than its use for the
generation of steam for industrial purposes or
electricity) identified by the Commission as a
high priority use for which the Commission
determines a substitute fuel is not reasonably
available.
(7) The term "heavy petroleum fuel oil"
means number 4, 5, or 6 fuel oil which is domestically refined.
(8) The term "local distribution company"
means any person, other than any intrastate
pipeline or any interstate pipeline, engaged in
the transportation, or local distribution, of
natural gas and the sale of natural gas for ultimate consumption.
(9) The term "intrastate pipeline" means
any person engaged in natural gas transportation (not including gathering) which is not
subject to the jurisdiction of the Commission
under the Natural Gas Act.
(10) The term "facility" means any electric
powerplant, or major fuel burning installation, as such terms are defined in the Powerplant and Industrial Fuel Use Act of 1978 [42
U.S.C. 8301 et seq.].
(11) The term "curtailment plan" means a
plan (including any modification of such plan
required by the Natural Gas Policy Act of
1978 [15 U.S.C. 3301 et seq.] ),in effect under
the Natural Gas Act or State law, which pro-

Page 787

TITLE 15-COMMERCE AND TRADE

vides for recognizing and implementing priorities of service during periods of curtailed deliveries by any local distribution company,
intrastate pipeline, or interstate pipeline.
(12) The term "interstate commerce" has
the same meaning as such term has under the
Natural Gas Act.
(f) Coordination with this chapter
(1) Consideration in any transfer of contractual interests pursuant to the rule required
under subsection (a)(1) of this section shall be
deemed just and reasonable for purposes of sections 4 and 5 of the Natural Gas Act [15 U.S.C.
717c, 717d] if such consideration does not
exceed just compensation.
(2) No person shall be subject to the jurisdiction of the Commission under the Natural Gas
Act [15 U.S.C. 717 et seq.] as a natural gas-company (within the meaning of such Act) or to
regulation as a common carrier under any provision of Federal or State law solely by reason
of making any sale, or engaging in any transportation, of natural gas with respect to which
contractual interests are transferred pursuant
to the rule required under subsection (a)(1) of
this section.
(3) Nothing in this section shall exempt from
the jurisdiction of the Commission under the
Natural Gas Act [15 U.S.C. 717 et seq.] any
transportation in interstate commerce of natural gas, any sale in interstate commerce for
resale of natural gas, or any person engaged in
such transportation or such sale to the extent
such transportation, sale, or person is subject to
the jurisdiction of the Commission under such
Act without regard to the transfer of contractual interests pursuant to the rule required
under subsection (a)(1) of this section.
(4) Nothing in this section shall exempt any
person from any obligation to obtain a certificate of public convenience and necessity for the
sale in interstate commerce for resale or the
transportation in interstate commerce of natural gas with respect to which contractual interests are transferred pursuant to the rule required under subsection (a)(1) of this section.
(g) Volume limitation
No supplier of natural gas under any contract, with respect to which contractual interests have been transferred pursuant to the rule
required under subsection (a)(1) of this section,
shall be required to supply natural gas during
any relevant period in volume amounts which
exceed the lesser of(1) the volume determined by reference to
the maximum delivery obligations specified in
such contract;
(2) the volume which such supplier would
have been required to supply, under the curtailment plan in effect for such supplier, to
the person, who transferred contractual interests pursuant to the rule required under subsection (a)(1) of this section, if no such transfer had occurred; and
(3) the volume actually delivered or for
which payment would have been made pursuant to such contract during the 12-calendarmonth period ending immediately before
such transfer of contractual interests.

§ 717z

(Pub. L. 95-617, title VI, § 606, Nov. 9, 1978, 92
Stat. 3167.)
REFERENCES IN TEXT

The Natural (b)(1),
Gas (c),
Act, (e)(5),
referred
to in
(a)(2)(A)()(I),
(9), (11),
(12),subsecs.
(f)(2),
(3), is act June 21, 1938, ch. 556, 52 Stat. 821, as
amended, which is classified generally to this chapter
(Q 717 et seq.). For complete classification of this Act
to the Code, see section 717w of this title and Tables.
The Powerplant and Industrial Fuel Use Act of 1978,
referred to in subsec. (e)(10), is Pub. L. 95-620, Nov. 9,
1978, 92 Stat. 3291, as amended, which is classified
principally to chapter 92 (§ 8301 et seq.) of Title 42,
The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set
out under section 8301 of Title 42 and Tables.
The Natural Gas Policy Act of 1978, referred to in
subsec. (e)(11), is Pub. L. 95-621, Nov. 9, 1978, 92 Stat.
3350, as amended, which is classified generally to
chapter 60 (§ 3301 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title
note set out under section 3301 of this title and
Tables.
CODIFICATION

Section was enacted as part of the Public Utility
Regulatory Policies Act of 1978, and not as part of the
Natural Gas Act which comprises this chapter.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 717z of this
title.
§ 717z. Emergency conversion of utilities and other
facilities
(a) Presidential declaration
The President may declare a natural gas
supply emergency (or extend a previously declared emergency) if he finds that(1) a severe natural gas shortage, endangering the supply of natural gas for high-priority
uses, exists or is imminent in the United
States or in any region thereof; and
(2) the exercise of authorities under this
section is reasonably necessary, having exhausted other alternatives (not including section 3363 of this title) to the maximum extent
practicable, to assist in meeting natural gas
requirements for such high-priority uses.
(b) Limitation
(1) Any declaration of a natural gas supply
emergency (or extension thereof) under subsection (a) of this section, shall terminate at the
earlier of(A) the date on which the President finds
that any shortage described in subsection (a)
of this section does not exist or is not imminent; or
(B) 120 days after the date of such declaration of emergency (or extension thereof).
(2) Nothing in this subsection shall prohibit
the President from extending, under subsection
(a) of this section, any emergency (or extension
thereof) previously declared under subsection
(a) of this section, upon the expiration of such
declaration of emergency (or extension thereof)
under paragraph (1)(B).

§ 717z

TITLE 15-COMMERCE AND TRADE

(c) Prohibitions
During a natural gas emergency declared
under this section, the President may, by order,
prohibit the burning of natural gas by any electric powerplant or major fuel-burning installation if the President determines that(1) such powerplant or installation had on
September 1, 1977 (or at any time thereafter)
the capability to burn petroleum products
without damage to its facilities or equipment
and without interference with operational requirements;
(2) significant quantities of natural gas
which would otherwise be burned by such
powerplant or installation could be made
available before the termination of such
emergency to any person served by an interstate pipeline for use by such person in a
high-priority use; and
(3) petroleum products will be available for
use by such powerplant or installation
throughout the period the order is in effect.
(d) Limitations
The President may specify in any order
issued under this section the periods of time
during which such order will be in effect and
the quantity (or rate of use) of natural gas that
may be burned by an electric powerplant or
major fuel-burning installation during such
period, including the burning of natural gas by
an electric powerplant to meet peak load requirements. No such order may continue in
effect after the termination or expiration of
such natural gas supply emergency.
(e) Exemption for secondary uses
The President shall exempt from any order
issued under this section the burning of natural
gas for the necessary processes of ignition,
startup, testing, and flame stabilization by an
electric powerplant or major fuel-burning installation.
(f) Exemption for air-quality emergencies
The President shall exempt any electric
powerplant or major fuel-burning installation
in whole or in part, from any order issued
under this section for such period and to such
extent as the President determines necessary to
alleviate any imminent and substantial endangerment to the health of persons within the
meaning of section 7603 of title 42.
(g) Limitation on injunctive relief
(1) Except as provided in paragraph (2), no
court shall have jurisdiction to grant any injunctive relief to stay or defer the implementation of any order issued under this section
unless such relief is in connection with a final
judgment entered with respect to such order.
(2)(A) On the petition of any person aggrieved by an order issued under this section,
the United States District Court for the District of Columbia may, after an opportunity for
a hearing before such court and on an appropriate showing, issue a preliminary injunction
temporarily enjoining, in whole or in part, the
implementation of such order.
(B) For purposes of this paragraph, subpenas
for witnesses who are required to attend the
District Court for the District of Columbia may

Page 788

be served in any judicial district of the United
States, except that no writ of subpena under
the authority of this section shall issue for witnesses outside of the District of Columbia at a
greater distance than 100 miles from the place
of holding court unless the permission of the
District Court for the District of Columbia has
been granted after proper application and cause
shown.
(h) Definitions
For purposes of this section(1) The terms "electric powerplant",
"powerplant", "major fuel-burning installation", and "installation" shall have the same
meanings as such terms have under section
8302 of title 42.
(2) The term "petroleum products" means
crude oil, or any product derived from crude
oil other than propane.
(3) The term "high priority use" means
any(A) use of natural gas in a residence;
(B) use of natural gas in a commercial establishment in amounts less than 50 Mcf on
a peak day; or
(C) any use of natural gas the curtailment
of which the President determines would
endanger life, health, or maintenance of
physical property.
(4) The term "Mcf", when used with respect
to natural gas, means 1,000 cubic feet of natural gas measured at a pressure of 14.73
pounds per square inch (absolute) and a temperature of 60 degrees Fahrenheit.
(i) Use of general terms
In applying the provisions of this section in
the case of natural gas subject to a prohibition
order issued under this section, the term "petroleum products" (as defined in subsection
(h)(2) of this section) shall be substituted for
the term "heavy petroleum fuel oil" (as defined
in section 717y(e)(7) of this title) if the person
subject to any order under this section demonstrates to the Commission that the acquisition
and use of heavy petroleum fuel oil is not technically or economically feasible.
(Pub. L. 95-617, title VI, § 607, Nov. 9, 1978, 92
Stat. 3171.)
CODIFICATION

Section was enacted as part of the Public Utility
Regulatory Policies Act of 1978, and not as part of the
Natural Gas Act which comprises this chapter.
DELEGATION OF FUNCTIONS

Functions of the President under this section,
except for the authority to declare, extend, and terminate a natural gas supply emergency pursuant to subsecs. (a) and (b) of this section, delegated to the Secretary of Energy, see section 1-102 of Ex. Ord. No.
12235, Sept. 3, 1980, 45 F.R. 58803, set out as a note

under section 3364 of this title.
SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 717y, 3363 of
this title.

File Type	application/pdf
File Title	United States Code: Natural Gas, 15 U.S.C. §§ 717-717z (1988)
Subject	Law, Law library, Government documents, Government, United States, U.S. Code, Legislative bodies, Congress, Bills and resolution
Author	U.S. Congress
File Modified	2017-10-04
File Created	2008-12-20