§ 3301. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC3301]
TITLE 15--COMMERCE AND TRADE
CHAPTER 60--NATURAL GAS POLICY
Sec. 3301. Definitions
For purposes of this chapter--
(1) Natural gas
The term ``natural gas'' means either natural gas unmixed, or
any mixture of natural and artificial gas.
(2) Well
The term ``well'' means any well for the discovery or production
of natural gas, crude oil, or both.
(3) New well
The term ``new well'' means any well--
(A) the surface drilling of which began on or after February
19, 1977; or
(B) the depth of which was increased, by means of drilling
on or after February 19, 1977, to a completion location which is
located at least 1,000 feet below the depth of the deepest
completion location of such well attained before February 19,
1977.
(4) Old well
The term ``old well'' means any well other than a new well.
(5) Marker well
(A) General rule
The term ``marker well'' means any well from which natural
gas was produced in commercial quantities at any time after
January 1, 1970, and before April 20, 1977.
(B) New wells
The term ``marker well'' does not include any new well under
paragraph (3)(A) but includes any new well under paragraph
(3)(B) if such well qualifies as a marker well under
subparagraph (A) of this paragraph.
(6) Reservoir
The term ``reservoir'' means any producible natural accumulation
of natural gas, crude oil, or both, confined--
(A) by impermeable rock or water barriers and characterized
by a single natural pressure system; or
(B) by lithologic or structural barriers which prevent
pressure communication.
(7) Completion location
(A) General rule
The term ``completion location'' means any subsurface
location from which natural gas is being or has been produced in
commercial quantities.
(B) Marker well
The term ``completion location'', when used with reference
to any marker well, means any subsurface location from which
natural gas was produced from such well in commercial quantities
after January 1, 1970, and before April 20, 1977.
(8) Proration unit
The term ``proration unit'' means--
(A) any portion of a reservoir, as designated by the State
or Federal agency having regulatory jurisdiction with respect to
production from such reservoir, which will be effectively and
efficiently drained by a single well;
(B) any drilling unit, production unit, or comparable
arrangement, designated or recognized by the State or Federal
agency having jurisdiction with respect to production from the
reservoir, to describe that portion of such reservoir which will
be effectively and efficiently drained by a single well; or
(C) if such portion of a reservoir, unit, or comparable
arrangement is not specifically provided for by State law or by
any action of any State or Federal agency having regulatory
jurisdiction with respect to production from such reservoir, any
voluntary unit agreement or other comparable arrangement
applied, under local custom or practice within the locale in
which such reservoir is situated, for the purpose of describing
the portion of a reservoir which may be effectively and
efficiently drained by a single well.
(9) New lease
The term ``new lease'', when used with respect to the Outer
Continental Shelf, means a lease, entered into on or after April 20,
1977, of submerged acreage.
(10) Old lease
The term ``old lease'', when used with respect to the Outer
Continental Shelf, means any lease other than a new lease.
(11) New contract
The term ``new contract'' means any contract, entered into on or
after November 9, 1978, for the first sale of natural gas which was
not previously subject to an existing contract.
(12) Rollover contract
The term ``rollover contract'' means any contract, entered into
on or after November 9, 1978, for the first sale of natural gas that
was previously subject to an existing contract which expired at the
end of a fixed term (not including any extension thereof taking
effect on or after November 9, 1978) specified by the provisions of
such existing contract, as such contract was in effect on November
9, 1978, whether or not there is an identity of parties or terms
with those of such existing contract.
(13) Existing contract
The term ``existing contract'' means any contract for the first
sale of natural gas in effect on November 8, 1978.
(14) Successor to an existing contract
The term ``successor to an existing contract'' means any
contract, other than a rollover contract, entered into on or after
November 9, 1978, for the first sale of natural gas which was
previously subject to an existing contract, whether or not there is
an identity of parties or terms with those of such existing
contract.
(15) Interstate pipeline
The term ``interstate pipeline'' means any person engaged in
natural gas transportation subject to the jurisdiction of the
Commission under the Natural Gas Act [15 U.S.C. 717 et seq.].
(16) Intrastate pipeline
The term ``intrastate pipeline'' means any person engaged in
natural gas transportation (not including gathering) which is not
subject to the jurisdiction of the Commission under the Natural Gas
Act [15 U.S.C. 717 et seq.] (other than any such pipeline which is
not subject to the jurisdiction of the Commission solely by reason
of section 1(c) of the Natural Gas Act [15 U.S.C. 717(c)]).
(17) Local distribution company
The term ``local distribution company'' means any person, other
than any interstate pipeline or any intrastate pipeline, engaged in
the transportation, or local distribution, of natural gas and the
sale of natural gas for ultimate consumption.
(18) Committed or dedicated to interstate commerce
(A) General rule
The term ``committed or dedicated to interstate commerce'',
when used with respect to natural gas, means--
(i) natural gas which is from the Outer Continental
Shelf; and
(ii) natural gas which, if sold, would be required to be
sold in interstate commerce (within the meaning of the
Natural Gas Act [15 U.S.C. 717 et seq.]) under the terms of
any contract, any certificate under the Natural Gas Act, or
any provision of such Act.
(B) Exclusion
Such term does not apply with respect to--
(i) natural gas sold in interstate commerce (within the
meaning of the Natural Gas Act [15 U.S.C. 717 et seq.])--
(I) under section 6 of the Emergency Natural Gas Act
of 1977;
(II) under any limited term certificate, granted
pursuant to section 7 of the Natural Gas Act [15 U.S.C.
717f], which contains a pregrant of abandonment of
service for such natural gas;
(III) under any emergency regulation under the
second proviso of section 7(c) of the Natural Gas Act
[15 U.S.C. 717f(c)]; or
(IV) to the user by the producer and transported
under any certificate, granted pursuant to section 7(c)
of the Natural Gas Act [15 U.S.C. 717f(c)], if such
certificate was specifically granted for the
transportation of that natural gas for such user;
(ii) natural gas for which abandonment of service was
granted before November 9, 1978, under section 7 of the
Natural Gas Act [15 U.S.C. 717f]; and
(iii) natural gas which, but for this clause, would be
committed or dedicated to interstate commerce under
subparagraph (A)(ii) by reason of the action of any person
(including any successor in interest thereof, other than by
means of any reversion of a leasehold interest), if on May
31, 1978--
(I) neither that person, nor any affiliate thereof,
had any right to explore for, develop, produce, or sell
such natural gas; and
(II) such natural gas was not being sold in
interstate commerce (within the meaning of the Natural
Gas Act [15 U.S.C. 717 et seq.]) for resale (other than
any sale described in clause (i)(I), (II), or (III)).
(19) Certificated natural gas
The term ``certificated natural gas'' means natural gas
transported by any interstate pipeline in a facility for which there
is in effect a certificate issued under section 7(c) of the Natural
Gas Act [15 U.S.C. 717f(c)]. Such term does not include natural gas
sold to the user by the producer and transported pursuant to a
certificate which is specifically issued under section 7(c) of the
Natural Gas Act for the transportation of that natural gas, for such
user unless such natural gas is used for the generation of
electricity.
(20) Sale
The term ``sale'' means any sale, exchange, or other transfer
for value.
(21) First sale
(A) General rule
The term ``first sale'' means any sale of any volume of
natural gas--
(i) to any interstate pipeline or intrastate pipeline;
(ii) to any local distribution company;
(iii) to any person for use by such person;
(iv) which precedes any sale described in clauses (i),
(ii), or (iii); and
(v) which precedes or follows any sale described in
clauses (i), (ii), (iii), or (iv) and is defined by the
Commission as a first sale in order to prevent circumvention
of any maximum lawful price established under this chapter.
(B) Certain sales not included
Clauses (i), (ii), (iii), or (iv) of subparagraph (A) shall
not include the sale of any volume of natural gas by any
interstate pipeline, intrastate pipeline, or local distribution
company, or any affiliate thereof, unless such sale is
attributable to volumes of natural gas produced by such
interstate pipeline, intrastate pipeline, or local distribution
company, or any affiliate thereof.
(22) Deliver
The term ``deliver'', when used with respect to any first sale
of natural gas, means the physical delivery from the seller; except
that in the case of the sale of proven reserves in place to any
interstate pipeline, any intrastate pipeline, any local distribution
company, or any user of such natural gas, such term means the
transfer of title to such reserves.
(23) Certificate
The term ``certificate'', when used with respect to the Natural
Gas Act [15 U.S.C. 717 et seq.], means a certificate of public
convenience and necessity issued under such Act.
(24) Commission
The term ``Commission'' means the Federal Energy Regulatory
Commission.
(25) Federal agency
The term ``Federal agency'' has the same meaning as given such
term in section 105 of title 5.
(26) Person
The term ``person'' includes the United States, any State, and
any political subdivision, agency, or instrumentality of the
foregoing.
(27) Affiliate
The term ``affiliate'', when used in relation to any person,
means another person which controls, is controlled by, or is under
common control with, such person.
(28) Electric utility
The term ``electric utility'' means any person to the extent
such person is engaged in the business of the generation of
electricity and sale, directly or indirectly, of electricity to the
public.
(29) Mcf
The term ``Mcf'', when used with respect to natural gas, means
1,000 cubic feet of natural gas measured at a pressure of 14.73
pounds per square inch (absolute) and a temperature of 60 degrees
Fahrenheit.
(30) Btu
The term ``Btu'' means British thermal unit.
(31) Month
The term ``month'' means a calendar month.
(32) Mile
The term ``mile'' means a statute mile of 5,280 feet.
(33) United States
The term ``United States'' means the several States and includes
the Outer Continental Shelf.
(34) State
The term ``State'' means each of the several States and the
District of Columbia.
(35) Outer Continental Shelf
The term ``Outer Continental Shelf'' has the same meaning as
such term has under section 1331(a) of title 43.
(36) Prudhoe Bay Unit of Alaska
The term ``Prudhoe Bay Unit of Alaska'' means the geographic
area subject to the voluntary unit agreement approved by the
Commissioner of the Department of Natural Resources of the State of
Alaska on June 2, 1977, and referred to as the ``affected area'' in
Conservation Order No. 145 of the Alaska Oil and Gas Conservation
Committee, Division of Oil and Gas Conservation, Department of
Natural Resources of the State of Alaska, as such order was in
effect on June 1, 1977, and determined without regard to any
adjustments in the description of the affected area permitted to be
made under such order.
(37) Antitrust laws
The term ``Federal antitrust laws'' means the Sherman Act (15
U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 12, 13, 14-19, 20, 21,
22-27), the Federal Trade Commission Act (15 U.S.C. 41 et seq.),
sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8-9), and the
Act of June 19, 1936, chapter 592 (15 U.S.C. 13, 13a, 13b, and 21a).
(Pub. L. 95-621, Sec. 2, Nov. 9, 1978, 92 Stat. 3352.)
References in Text
The Natural Gas Act, and such Act, referred to in pars. (15), (16),
(18)(A)(ii), (B)(i), (iii)(II), (23), is act June 21, 1938, ch. 556, 52
Stat. 821, as amended, which is classified generally to chapter 15B
(Sec. 717 et seq.) of this title. For complete classification of this
Act to the Code, see section 717w of this title and Tables.
Section 6 of the Emergency Natural Gas Act of 1977, referred to in
par. (18)(B)(i)(I), is Pub. L. 95-2, Sec. 6, Feb. 2, 1977, 91 Stat. 7,
which was formerly set out in a note under section 717 of this title.
The Sherman Act (15 U.S.C. 1 et seq.), referred to in par. (37), is
act July 2, 1890, ch. 647, 26 Stat. 209, as amended, which is classified
to sections 1 to 7 of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 1 of this
title and Tables.
The Clayton Act (15 U.S.C. 12, 13, 14-19, 20, 21, 22-27), referred
to in par. (37), is act Oct. 15, 1914, ch. 323, 38 Stat. 730, as
amended, which is classified generally to sections 12, 13, 14 to 19, 20,
21, and 22 to 27 of this title, and sections 52 and 53 of Title 29,
Labor. For further details and complete classification of this Act to
the Code, see References in Text note set out under section 12 of this
title and Tables.
The Federal Trade Commission Act (15 U.S.C. 41 et seq.), referred to
in par. (37), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended,
which is classified generally to subchapter I (Sec. 41 et seq.) of
chapter 2 of this title. For complete classification of this Act to the
Code, see section 58 of this title and Tables.
Act of June 19, 1936, chapter 592, referred to in par. (37), means
act June 19, 1936, ch. 592, 49 Stat. 1526, popularly known as the
Robinson-Patman Antidiscrimination Act and also as the Robinson-Patman
Price Discrimination Act, which enacted sections 13a, 13b, and 21a of
this title and amended section 13 of this title. For complete
classification of this Act to the Code, see Short Title note set out
under section 13 of this title and Tables.
Short Title of 1989 Amendment
Pub. L. 101-60, Sec. 1, July 26, 1989, 103 Stat. 157, provided that:
``This Act [amending sections 3331, 3372, 3373, 3375, 3411, 3412, 3414,
3416, 3431, and 3432 of this title, repealing sections 3311 to 3320,
3331 to 3333, 3413, and 3417 of this title, and enacting provisions set
out as notes under sections 3311 and 3372 of this title] may be cited as
the `Natural Gas Wellhead Decontrol Act of 1989'.''
Short Title
Section 1 of Pub. L. 95-621 provided that: ``This Act [enacting this
chapter and amending section 7255 of Title 42, The Public Health and
Welfare] may be cited as the `Natural Gas Policy Act of 1978'.''
Section Referred to in Other Sections
This section is referred to in sections 717b, 3312, 3363, 3802 of
this title; title 26 section 29.
